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The buyer’s due diligence period is the period of time after a home goes under contract where the buyer can order inspections and make certain they want to go forward with the purchase of a home. Here’s what you need to know about the period that the buyer will have when buying your home.
The buyer is required to submit a small due diligence deposit in addition to their earnest money. Generally, the due diligence money is a much smaller amount than the earnest money. The buyer can walk away during the due diligence period for any reason whatsoever with the only consequence being losing that small amount of due diligence money.
The total jeopardy is now on you, the seller. If the buyer walks away from the transaction for whatever reason, it reflects poorly on the house. Buyers often use the due diligence period as a second negotiation to get more concession from the seller. I’m a firm believer that in a seller’s market, you should have your choice of buyers as opposed to sticking with the first offer you see. Many times buyers snap up a house knowing that they have the due diligence period to back out if they want to.
My focus has always been on helping sellers maximize their profit, so I don’t think much of the buyer’s due diligence period overall. Even though I’m not fond of it, I make sure every one of my sellers is prepared beforehand. When you’re prepared, it can make a huge difference in coming out successful.
You’ve got to have a good agent guiding you because you don’t really have any control in this type of situation. It can be painful when the buyer is the one driving the bus.
If you have any questions for us or would like for us to prepare you, we would love to help. Give us a call or send us an email. We look forward to hearing from you!