Due Diligence When Buying a Home - It's Important!
When buying a home in Carlsbad CA, or anywhere for that matter, it’s critical to do your due diligence as the buyer during the contract period, which will vary not only by state but by what might be negotiated between you and the seller. You will want to check with your Realtor about your specific rights and obligations.
Thorough due diligence is essential to ensure you know as much as possible about the property you are buying so you can make an informed decision about whether to proceed with the purchase within the defined time frame in the contract, or not.
And keep in mind there are certain contingencies in the contract that must be removed by a particular time (e.g., home inspection) and which depend on your due diligence and investigation. You can read more about how to remove contingencies here!
Here in California the Residential Purchase Agreement (RPA) sets forth the time period, often also referred to as the contingency period, during which a buyer has some pretty specific and important tasks to carry out. These tasks include, but are not limited to, the following:
Home Inspection (read how to prepare for your home inspection)
Termite Inspection and Section 1 clearance
Other Inspections (there are a number of other inspections that may be recommended by your inspector OR that you feel are important)
Seller Disclosures (e.g., Transfer Disclosure Statement or TDS in California)
The Natural Hazards Disclosure Report (a.k.a. NHD)
Review of all HOA Documents
Review of the Preliminary Title Report
Insurability of the property
Is there more? You bet.
Most buyers have a long list of questions about things when buying a new homes, especially if it’s in an area they are not familiar with. These might include the following:
Neighborhood and what the neighbors are like
Schools and preschools
Crime and safety in the area
What’s happening with that large vacant lot across the street?
What’s local traffic like?
Is the home in a noisy area (e.g., traffic, train, major roads, airport)
Here are some other things:
Where the official property line is and who is responsible for the existing fence?
What’s it like living in the community if there is an HOA?
Where are shopping, dining, and other services and amenities?
Other lifestyle issues (recreation, commuting routes, medical)
Is there a dog park nearby?
No doubt you will have some other things you will wonder about. The important thing to keep in mind is that whatever concerns or questions you have should be thoroughly investigated during your due diligence. It’s a lot of work in a relatively short period of time, but well worth it so you won’t regret your decision. After you close on the home, it's too late.