Understanding “Due Diligence” as a Homebuyer

When preparing to purchase your first home, it’s important to understand what your responsibilities are as the homebuyer, as well as the limitations placed on agents.

Prior to becoming a realtor and purchasing my first home, my assumption was that agents are tasked with answering any and all questions you may have about a home, as well as flagging potential structural issues, having deep knowledge of the area, etc. But the truth is, agents are not home inspectors or all-knowing city experts, and we’re guided by a number of legal and ethical standards — including fair housing regulations — which have major implications regarding disclosures. Agents aren’t lawyers, tax advisors, or city developers. Our job is to assist our clients in the purchase or sale of a property, which means managing property searches, preparing contracts, communicating between involved parties, and playing an advisory role within our “jurisdiction.” This also means filling in our buyer-clients on what is their responsibility during the inspection or due diligence period.

The length of the inspection period is determined in the purchase contract or offer and is often 10 days but can be more, less, or entirely removed. Removing the inspection period was much more common during the 2020-2021 sales boom, but has since become very rare. I would not advise that anyone remove their inspection contingency, because this your opportunity to uncover potential issues and determine if you want to move forward with the transaction.

Every state has different regulations and resources, but in Arizona we have the Arizona Association of Realtor’s Buyer Advisory, which can be found here.

“A real estate agent is generally not qualified to discover defects or evaluate the physical condition of property; however, a real estate agent can assist a buyer in finding qualified inspectors and provide the buyer with documents and other resources containing vital information about a prospective property.” — AAR Buyer Advisory

The advisory is a great resource and provides links to documents and public records that can help buyers uncover any details they deem pertinent.

A few examples of information that is not within the purview of an agent to discuss include neighborhood crime stats, school performance, the presence of a sex offender, and if there was a death in the home, etc. Instead, the buyer advisory provides information on how a buyer can research these items themselves.

During the due diligence period it’s vital to have a reputable general inspector conduct a thorough, yet still surface level, investigation of your home, as well as more specialized inspections including termite, roof, sewer, and others. Although your agent cannot help with the assessment, they should assist you with finding and scheduling these inspections. And with each inspection you’ll learn more about the condition of the home and decide whether or not you’ll ask for repairs or move forward with the transaction.

In addition to inspections, it’s important for buyers to get to know other aspects of the home and neighborhood. It’s helpful to visit the neighborhood and drive or walk around during different times throughout the day. Maybe at noon you’ll learn that the school down the street is just a bit too loud for you to be working from home, or at night you’ll find that the next door neighbors are throwing a loud party. Buying a home is a major investment and undertaking, so you want to move into the home knowing that you’ve done your best to get to know it prior.

One reason why it’s important for buyers to do the research themselves, rather than asking their agents, is because only you know what’s best for you. Your agent has an entirely different set of experiences and priorities, so they might not think that a loud neighbor is as big of a deal as you do. So much of buying a home is up to preference, and you cannot expect a realtor to be a mind reader or know exactly how you’ll feel about every aspect of the home you’re buying. That’s why it’s essential to be an empowered buyer and do your own research before closing the deal.

Interested in buying or selling a home in Tucson? Contact Julia.

Julia Van Valkenburg, Realtor

OMNI Homes International

julia@buyselltucsonhomes.com

520-275-3514

Start your home search today!