Due Diligence Breakdown

The due diligence period is one of the most critical times when buying your home. A lot of time-consuming tasks need to be completed but worry not - that's why we're here. Below are a few things to get started on with your broker.


General Home Inspection

A Home Inspection is an evaluation of the visible and accessible systems and components of a home (plumbing system, electrical, roof, etc) by a licensed inspector and is intended to give a better understanding of the home’s condition. The inspector will point out areas of concern found and suggest acceptable means of repair or direct you to another qualified professional who is more of an expert in that particular area.


Radon Inspection

Radon is a colorless, odorless radioactive gas that emanates from the bedrock as a result of decaying uranium. It is the second leading cause of lung cancer. The problem occurs when radon gas enters your home and gets trapped. This inspection measures the level of radon present over the course of 48 hrs and gives you an average reading. If the readings are 4.0 pCi/L (picoCuries per liter) or higher, the EPA recommends taking measures to reduce the radon levels in your home. This would consist of installing a radon mitigation system- a fan that would suck the radon from beneath the basement/crawlspace and redirect it through a pipe leading above the roofline.


Pest Inspection

A Pest Inspection is an evaluation of the home by a licensed inspector to determine damage or possibility of damage from insects, bugs, termites or dry rot conditions.


HVAC Inspection

An HVAC (Heating Ventilating & Air Conditioning) Inspection evaluates the current condition of the HVAC unit(s) present in the home and diagnoses any issues present. If any are present, the report should provide acceptable means of repair or recommendations for further options.


Other Inspections

Can include, but are not limited to – structural inspection, roof inspection, well inspection, septic inspection, mold testing, etc. Your broker will review these items in detail with you if needed.



An appraisal is an unbiased estimate of the true (or fair market) value of a home by a licensed appraiser. All lenders order an appraisal to ensure that the amount of money requested by the borrower is appropriate. Appraisals include recent sales information for similar properties (comps), the current condition of the property, and the location of the property to determine the property’s value. If the appraisal comes back HIGHER than the contract price, the buyer is effectively buying the home for less than it’s true value. If the appraisal comes back LOWER than the contract price, the bank will only lend the borrower up to the appraised value.

For example, if you are under contract on a property for $300,000 and the appraisal determines the value to be $290,000, the $10,000 difference will need to be made up somehow. This can be addressed in one of three ways: (1) the seller can agree to lower the contract price to the appraised value- this is unlikely in our current market, (2) the buyer can bring the additional $10,000 to the closing table to make up the difference, or (3) the buyer and seller can agree to meet in the middle – the sellers can lower the contract price $5,000 and the buyer can bring $5,000 extra to the closing table. Appraisals can be challenged if provided enough evidence to justify the contract price and sway the appraiser’s evaluation, but often, the appraiser stands by their original assessment.



A survey refers to the process of locating and measuring a property’s boundary lines to determine the exact amount of land that a homeowner owns. A survey will also locate and measure any easements or encroachments on a property, which will be noted on a home’s chain of title.

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