The Due Diligence Period – Explained

The Due Diligence period is the great unknown time frame in any Real Estate contract. Yes this is the time for buyers to do any and all inspections and negotiate repairs with the sellers. Many contracts are terminated because buyers and sellers cannot agree on the issues and/or the repairs to be made. But wait, that is not the only reason buyers terminate contracts during the Due Diligence period! In my opinion it is truly a free look for the buyer, who can terminate the contract for any reason and retain the earnest money.. In 2017 we had buyers terminate because they found a different home (happens a lot in a price point that has little inventory). Some additional examples include – One spouse decided they do not want to move, job did not come through, buyer decided they wanted an active HOA, not close enough to work….and the list goes on and on. Keep this in mind when you go under contract, that until the Due Diligence period is over anything can happen.