What Is Due Diligence in Real Estate?
In real estate, due diligence is the period after an offer is accepted when the buyer investigates the property before finalizing the purchase. It’s the buyer’s chance to confirm that the home, title, and finances are in order before closing.
🔍 What Happens During Due Diligence?
The due diligence period typically lasts 7–15 days (or longer, depending on the contract). During this time, buyers can:
- Order a home inspection to assess the property’s condition
- Verify the escrow and earnest money process
- Review title records and title insurance
- Check zoning, utilities, and HOA documents
- Renegotiate or cancel based on findings
🏠 Why Due Diligence Matters
Due diligence protects buyers from unexpected issues before closing. It ensures full disclosure and gives time to verify repairs, permits, or legal encumbrances. Sellers benefit too — by resolving issues early, they reduce the risk of contract cancellations and build buyer confidence.
💡 FSBO Tip from Brokerless
If you’re selling For Sale by Owner (FSBO), understanding due diligence helps you anticipate buyer expectations. Brokerless ensures your MLS listing is transparent and compliant so buyers feel confident submitting offers.
Ready to list your property the smart way?
📋 See How It Works