Muncie and Delaware Co, IN is a small market and I do both residential and commercial brokerage. On the commercial side we're usually dealing with business professionals and attorneys who have broad experience in these transactions. "Due Dilligance" is done prior to entering into the process of negotiating an offer and then there is an additional period after an offer is accepted. This gives the buyer time to investigate details such as environmental issues, inspections, zoning, governmental approvals, permits and the like.
In residential transactions the buyers look at a number of properties and make an offer on the one they like best. Their "Due Diligence" usually involves personal viewing, investigation of schools, and a CMA prior to making an offer and then finalizing financing and inspections after the offer is accepted. Since most buyers are not seasoned professionals, they can overlook some details that can have a big effect on their quality of life in the new home.
Residential buyers rely on their agents, Sellers' Disclosures and their home inspector for discovering problems, but agents must be careful about making neighborhood statements because of Fair Housing and possible lack of first-hand knowledge. Disclosures can be misleading, even if unintentional, and inspections have a host of disclaimers covering areas that are impossible to check. There are legal remedies but these can be costly and lengthy. What about intangibles? You can go on line and check for sex offenders, but those searches may not be current and may have unacceptable provisions like a 200 ft. tether when the next house is only 100 ft away. Even in upscale subdivisions, what's the neighborhood like at different times of the day and night? Does a nearby neighbor have an annoying hobby or barking dogs?
I could list many more possibilities, but the point is to have home buyers learn from commercial transactions and go further with their "Due Diligence." Visit the prospective neighborhood at various times of the day. Park along the street for 20-30 minutes each time and see what goes on. Knock on the doors of nearby neighbors and talk with them about the neighborhood. What do they like? What don't they like? Most will be open and honest and you may start a valuable new friendship. Real estate is not liquid and when buyers become sellers it's a whole different ball game so a little more "Due Dilligence" can help insure a happy outcome in the purchase of a new home.
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