Due Diligence

Episode 106: Due Diligence

Buying and selling a home can be stressful. You’ve got a lot emotions and money tied up in a piece of real estate. There are many unknown variables hiding in the home and the due diligence period is when those will typically make their presence known.

The due diligence period is an agreed upon time, spelled out in the contract, where buyers have their inspection completed and make sure the home is the right one for them. Using our explanation from last weeks “Stages of A Listing” post, the due diligence period is when the buyers have taken the home off the shelf and placed it in their cart. While in the shopping cart, other potential buyers can look at the home but no one else can purchase the home.

During this time a buyer can walk away from the deal for any reason or no reason. They can wake up one morning and just have a feeling and can terminate the contract. This would be the equivalent of taking the home out of the shopping cart and placing it back on the shelf. 

This is also why, when the home is under contract and in the due diligence period, we continue to market and show the home. Things happen all the time and as long as we keep the home in the public eye, there’s a good chance that someone else could quickly pick it back up and place it in a new shopping cart. 

Sometimes, again based on the contract negotiations, there can be a due diligence deposit placed on the home. That money is given directly to the seller, counts towards the purchase price of the home, but is 100% non-refundable. This is not to be confused with an earnest money deposit that we will talk about next week. Until next time….

Welcome Home! 

Chris Whitehurst

Rose & Womble 


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