How long should a due diligence period last?
Agents, please read and understand the time periods of the purchase contract in your area. And, apply them to your buyer and your buyers situation. Each buyer is unique and their purchase is too. Negoitiate the time periods up front. This may just help your buyer a little more with negoitiations down the line.
One of the terms commonly addressed in a real estate offer is the length of the due diligence period.
The due diligence period allows the buyer to make all necessary inspections and investigations about the condition of the property and the neighboring area.
A seller does NOT have to agree to ANY amount of time, but most buyer would either walk away or offer a lower price.
ANY period of time can be negotiated between a buyer and a seller. Typical number range from 7-14 days for single-family residential properties and substantially longer for raw land, commercial, or multi-family parcels.
Keep in mind that a seller is keeping the property off of the market during this time and has an interest in "moving things along.
Buyers should be allowed a reasonable amount of time to determine if the property is suitable before laying out thens of thousands or hundreds of thousands of dollars.
Buyers should move expeditiously and methodically, and NOT put off critical inspections to the last minute. It is better to have sufficient time to address all of the buyer's concerns without the need for termination the contract.
So how long should a due diligence period last?
As long as is agreed to by all parties to the contract!
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