Due Diligence Checklist for Buying a House

A due diligence checklist is a list of items that should be examined or investigated by a potential buyer before making an offer to purchase a property. The checklist can vary depending on the type of property but may include items such as a review of the property title, a home inspection, a review of the home’s heating and cooling systems, and a review of the property’s zoning classification.

When buying a home, there are a number of important things to keep in mind. The following is a checklist of some of the key items you will want to investigate and consider before making an offer on a property.

1.  Check the property’s title and ownership. Make sure that the seller is the legal owner of the property and that there are no outstanding claims or liens against it.
2.  Review the property’s history. Make sure that there are no major repairs or renovations that have been done without permits, or that the property has been the site of any major accidents or crimes.
3.  Investigate the surrounding neighborhood. Make sure that the area is desirable and that the home is in a good location.
4.  Get a home inspection. Have a professional home inspector look at the property to make sure that it is in good condition and that there are no major repairs or updates that need to be made.
5.  Check the zoning regulations. Make sure that the property is zoned for the use you intend to put it to.
6.  Get a loan pre-approval. Make sure that you are pre-approved for a mortgage loan and that you are comfortable with the terms.
7.  Consider your budget. Make sure that you are comfortable with the price of the property and that you have enough money for the down payment, closing costs, and any other expenses that may come up.
8.  Get a home insurance quote. Make sure that you are comfortable with the cost of homeowners insurance and that you have enough coverage.
9.  Consider your family’s needs. Make sure that the property is large enough for your family and that it has the features you need, such as enough bedrooms, a garage, or a backyard.
10.  Talk to the neighbors. Get feedback from the neighbors about the home, the neighborhood, and the seller.