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Due Diligence Is Not Just for Buyers – Part One

By
Real Estate Agent with Dirt Road Real Estate SA676002000

Much is written about due diligence being the responsibility of the buyers. Yet for professional real estate agents these individuals recognize their responsibility respective to due diligence.

For me, I have created my own personal acronym for DUE.

D=Deliberate.  I must be deliberate in my actions. This means taking action as quickly as possible. Additionally to be deliberate requires me to have knowledge of what I need to do and what I need to know.

U=Understanding. I recognize the understanding of my buyers may not be at my level of competence, knowledge and experience. This is not the time to be lazy or expect the buyers to know what they do not know.  Also, my understanding extends to recognizing my potential clients to clients may not read or understand what is forward to them.

E=Efficient and Effective.  For me, efficient means doing things right and effective means doing the right thing. With time is of the essence in any real estate transaction, this directly correlates to being efficient. Living by my own moral code along with the Code of Ethics, effective is doing what is right.

For example, one of my due diligence actions is to request permits for any property that my buyers are thinking of purchasing or have just entered into a real estate purchase contract.  What I have learned is sometimes the sellers usually those who have inherited the property may be unaware of any permitted improvements to the property.  In AZ, septic systems and wells must be transferred from the seller to the buyer and this transfer is registered with the State of AZ.

Buyers, especially those from out of state, may not know how to quickly secure permits. By taking this Deliberate action with Understanding along with being Efficient and Effective can help to secure a successful close of escrow. 

Part Two of this Series will look at the Due Diligence respective to the Preliminary Title report.

Feature Photo Courtesy of Pixabay.com

Any reproduction of Leanne M Smith’s blog for use by any AI or GAI, distribution or reproduction including but not limited to electronic newsletters e.g. PDF’s Internet sites or physical products e.g. newspapers, CDs without prior written permission and consent by me, Leanne M. Smith (Leanne Hoagland-Smith) is strictly prohibited.

Posted by

Leanne M. Smith, MS, GRI, rCRMS

2018 KGVAR Rookie Realtor of the Year-55+
219.508.2859 MST
Life Begins Where the Pavement Ends
Connect with me on LinkedIn:
http://www.linkedin.com/in/leannehoaglandsmith
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Leanne - I can easily see how the topic of due diligence could be explored in multiple ways on an ongoing basis.  It seems to be a never-ending subject.  For real estate practitioners and clients alike.  And then in the everyday world.  I look forward to your additional thoughts.  You're definitely off to a good start.  

Mar 28, 2024 08:40 AM
Leanne Smith

My sense is some agents leave all the due diligence to the buyers and this often results in an unsuccessful close of escrow or disenfranchised buyers and/or contributes to the negativity toward the professional of real estate agent.

Mar 28, 2024 08:44 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Leanne and there you go again with a great information that you are sharing in your blog with us.  Make it a great day!

Mar 28, 2024 09:58 AM
Leanne Smith

Good morning Will and you are more than welcome.

Mar 29, 2024 04:40 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Loved your post and like you I look and do my due diligence of the other agent, who might be bringing me the offer on one of my listings so I can gage how to handle that person.... experience, knowledge and the list goes on and on, Endre

Mar 28, 2024 09:15 PM
Leanne Smith

Thank you for affirming that due diligence rests on our shoulders as well as those of the buyers and often the the agent on the other side.  As always glad to read you enjoyed the post. Good morning and Happy Freya's Day.

Mar 29, 2024 04:39 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Excellent overview (part 1) of what due diligence means to you - and what it should mean to all real estate professionals! I agree.

Apr 01, 2024 05:56 AM
Leanne Smith

Thank you Kat Palmiotti I just released how this issue of due diligence is so important and often so ignored by some real estate agents.

Apr 01, 2024 06:09 AM