Step 6: Perform Due Diligence
Just because you love a particular property doesn't mean that it's perfect. In fact, this is where reason has to trump emotion. You'll need to have a property inspection (which we highly recommend you attend) that will hopefully expose all the issues a home might hide. This way you'll know exactly what you are getting into before you sign closing papers.
Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
- Don't sweat the small stuff. It's the inspector's job to mark everything discovered no matter how large or small. The inspectors report may be long, but, things that are easily fixed can be overlooked for the time being.
- If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
- Even if your home passes inspection with flying colors, you'll still need to buy a home owner's insurance policy that protects you against loss or damage to the property itself and against liability in case someone sustains an injury while on your property. This can often be negotiated into the sales price of the home.
