You’ve probably heard the term “due diligence” tossed around as part of the real estate buying and selling process, but do you know what it really means and why it’s a valuable tool that can benefit both buyers and sellers? Hillman Real Estate Group’s Renée Hillman explains, “What the heck is ‘due diligence’?” in this new HREG video:
In short, due diligence is the time period for the buyer to do their property investigations, including a home insepction, termite inspection, radon inspection, A/C inspection, getting an appraisal or financing in order, etc.
Due Diligence Isn’t Free
Typically, the buyer writes the seller a non-refundable check for the right to do all of these property inspections. But, it also gives the buyer the right to back out of the contract for any reason whatsoever.
Where Does the Money Go?
Assuming everything goes well and the transaction goes to a closing, any due diligence fees or earnest money funds are credited to the buyer.
Have More Questions?
We’d love to tackle them in an upcoming video! Please leave a comment below or email Renee@HREGSells.com with your questions.