What's the recommended due diligence period? Do I need to take into account a negotiation period if the inspection comes with major stuff?

Asked by Reese, Marietta, GA Sat Mar 23, 2013

I'm buying a home and I want to make sure there is time for the inspection to be done. What else do I need to consider besides the inspection and checking out the neighborhood and surroundings?

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Sidney Dikem…, , 31522
Sat Mar 23, 2013
BEST ANSWER
7-10 days is about a normal due dilligence period for the inspections. Your financing contingency should be 21-28. If you do not have an agent, please call me. It does not cost you anything to have a buyer's agent. Remember....the listing agent works for the seller. Let me know if I can help!

Thanks,
Sidney

Sidney Dikeman
Atlanta Communities
770-316-2552
sidneydikeman@att.net
0 votes
"It does not cost you anything to have a buyer's agent" ...really?? Then why do you want to work?
Flag Mon Jun 27, 2016
We may start looking soon. I'll sure give you a call. I'm just uneasy about a 7 day due diligence period and I was just wondering if the inspection is usually done within that time. And if the inspection comes with problems, don't you need more time to negotiate? Say the inspection is done on day 6 and I ask the seller to fix something, what happens if they don't give me a response by day 7? I buy the house with the problems or loose my earnest money?
Flag Sat Mar 23, 2013
Dennis Russe…, Agent, Atlanta, GA
Mon Apr 25, 2016
I would recommend 7-12 days and if that's not long enough you can extend the due diligence period before the last day.Your financing contingency should be 14-21 days because typically you should have your financing lined up before you submit your offer. Give me a call for more info looking forward to speaking with you.

Thanks,

Dennis Russell
PalmerHouseProperties
404-876-4901
dfr10@icloud.com
0 votes
Wolfert & Wr…, Agent, Roswell, GA
Fri Jun 27, 2014
7-14 days is typical but there are a lot of factors that can affect how long. You should be able to get a home inspector scheduled 3-5 days from a binding contract date. There are many other factors in play and to consider. I'd be happy to discuss them with you and help you.


Barry Wolfert, Associate Broker
Wolfert & Wrenn Team - Keller Williams
0 votes
Robert A Whi…, Agent, Roswell, GA
Sat Apr 13, 2013
I Like Joshua's approach on the due-diligence period - it's all about protecting your client but also submitting an attractive offer. There are many ways to cover the bases without an excessive contingency periods. Speaking of excess - I noticed several folks specifying 28 days for financing.

If someone came at me with a 28 day finance contingency on my listing, I would counter that right off. If the buyer doesn't feel better about their odds of getting a loan - hasn't gotten their financing positioned better than that, why should a seller hold a home off market that long?
0 votes
I am sure a lot of the times the buyer is sure they're fine, it's the bank that ends up dragging their feet. Right now our lender keeps asking for a different additional document every time we talk to them. I can't make them go any faster, I can't predict what they're going to ask for. The underwriter is the one who is holding all the cards at this point, and when I started getting anxious about us closing at the date the realtor has set forth (which was 3 weeks from offer acceptance), friends who have been through it laughed and said that was really early and it normally takes 30+ days. It's not always the buyer's fault when things get dragged out for a long time.
Flag Tue Feb 24, 2015
Joshua Jarvis, Agent, Duluth, GA
Fri Apr 12, 2013
We typically use 10 days but it is all very home dependent. We might use less due diligence days if there's a lot of competition on the home and we'll use supplement contingencies in that case. You could also do a longer time period if there are unique features to the home, such as a water well. You can also extend a due diligence period in a contract so you have many different options.
0 votes
Rich Homer, Agent, NAPLES, FL
Fri Apr 12, 2013
This is usually written into the contract and varies in different locations. Best next action is to ask a local Real Estate Broker by clicking "Find a Pro" in the main menu at the top of this website. http://www.naplesrealestateguys.com/
0 votes
Robert A Whi…, Agent, Roswell, GA
Fri Apr 12, 2013
So Reese,

It sounds like you are on your own, or have a very week agent, or one you don't trust...there is a significant amount of things you need to know and consider besides the price, the inspection, and neighborhood and surroundings - before you ever submit an offer.

Did you submit an offer for the home - on your own?

Best,

Robert Whitfield
Broker/Owner
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Advantage Realtors
678-585-9691
RobertWhitfield.com
TheHomeBuyersRep.com
Corporate Relocations | New Construction | Luxury & Investment Properties
0 votes
Hank Miller, Agent, Alpharetta, GA
Mon Mar 25, 2013
That's best answered by your agent, however....

I like 12-14 for my buyers with 28 for the financing. If you have "major stuff" come up, remember to extend the DD period dueing resolution. If it expires before that, negotiations are through.

There are several things to consider in addition to the inspection -
Web Reference:  http://www.hmtatlanta.com
0 votes
Patricia Joh…, Agent, Atlanta, GA
Sun Mar 24, 2013
It sounds like you are purchasing a home without an agent, these are procedures your agent would set up at the time of your offer. Your due diligence would or should be a time to look at the home with the inspection included to address any questions about the inspection and renegotiate any major concerns. Please find an agent to help you in this period of time. Do you have a contract it should state your due diligence period. This is something you ask for up front, not after you have made an offer. If you need assistance I am available and may be reached at hollywood@kw.com or 678 502 8238 Hope you haven't missed out on anything that worlks for your protection to make your contract feasible in the purchase of your new home.
0 votes
Fred Yancy, Agent, Woodstock, GA
Sun Mar 24, 2013
You should have checked out the neighborhood and surroundings before entering into a contract. The due diligence period is typically 10 days which allows plenty of time to get the home inspected and for you to review the report from the inspector.
0 votes
, ,
Sat Mar 23, 2013
A lot of that will depend on the home and your situation. The answers to these questions are best obtained from your Buyer's Agent. Your Buyer's Agent will be your guide through your sales contract.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Matthew Share, Agent, Marietta, GA
Sat Mar 23, 2013
The amount of time is negotiable and will vary depending on the type of property and situation. These are the kinds of questions that your agent would be able to answer for you. If you don't have an agent then I would love to speak with you. You can call me at 678-520-3113.
0 votes
Claire-Anne…, Agent, Indianapolis, IN
Sat Mar 23, 2013
I usually ask for a couple of weeks and reserve the right to do a final walk-through before closing.

Talk to your Realtor about your concerns.

caa
0 votes
Michael Hamm…, Agent, Suwanee, GA
Sat Mar 23, 2013
What does YOUR Agent/Broker say, Reese? I advise my Clients to ask for as much as they can get, the closer to the actual Closing Date the better. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
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