There are a number of crucial elements that everyone who purchases real estate should pay close attention to, no matter whether they are a first time buyer or a seasoned investor.
Purchasers of real estate need to have a clear understanding of the disclosure process. This starts with the duties owed to a client by the real estate agent. If a real estate agent cannot clearly define how they are to treat the client in terms of fairness and honesty, this should be a major red flag. This seems like common sense, but there are plenty of incidents where clients are not treated fairly and honestly by real estate agents who are more concerned with their commission than watching out for the best interests of their clients. If you do not believe me, do some due diligence. Check with the real estate division in your respective state for more information.
Buyers also need to pay special attention to disclosures and inspections regarding the physical property that they are purchasing.
Lead-Based Paint Inspections
Radon Gas Reports
Flood Plain Reports
Preliminary Title Report (just to name a few)
These inspections provide valuable data on the property that you are purchasing. Certain inspections may be required by your lender or insurance company, but all should clearly be vetted out during your due diligence period. If you are having a challenge completing the inspections within the allotted time, then make sure your real estate agent gets an extension on the due diligence period. If the seller is not willing to cooperate with an extension request, then it might be in your best interest to withdraw from the transaction. Never allow a seller or seller’s agent to dictate being able to complete the inspections in a reasonable time frame.
Following these simple guidelines and properly vetting out the property you are considering purchasing, will give you a level of confidence and protection as you move through the transaction process. One more thing, make sure that the professionals doing the inspections are properly licensed and bonded according to your respective state law.