Do Your Due Diligence: A Complete Checklist for Buyers and Agents
In this episode, we cover everything buyers and agents must check to “do your due diligence” avoid surprises after closing. The due diligence period is a critical time to investigate all aspects of a home before making the final commitment. To help, we’ve created a free buyer template, the Make Sure You’re Sure checklist. Get it now at hustlehumblypodcast.com/makesure. If you’re an email template owner, this checklist is already included in your course.
What is the Due Diligence Period?
The due diligence period, sometimes called the inspection period, is the time after a home goes under contract when the buyer has the opportunity to investigate the property. This includes inspections, insurance quotes, reviewing restrictions, and more. Once this period ends, the buyer is typically locked into the purchase unless an appraisal or loan issue arises.
Home Inspections and Specialty Inspections
A general home inspection is a must, but it’s often not enough. Depending on the home, you may need additional inspections, including:
- Termite Inspection – Even if a home has a termite contract, buyers should get their own inspection. Verify what the contract covers.
- Foundation Inspection – If a foundation has been repaired, check the warranty and confirm it’s transferable.
- Mold and Water Damage Testing – If the home shows signs of water intrusion, mold testing may be necessary.
- Septic and Well Inspections – If the property isn’t on city water or sewer, these systems need professional evaluation.
- Roof Inspection – Some insurance companies require a roof certification.
If an inspector flags an issue, the buyer should seek a specialist for further evaluation during their due diligence period.
Surveys and Property Boundaries
A survey isn’t required in every transaction, but it’s useful when:
- The buyer has questions about the property lines.
- There’s a visible utility box, power line, or drainage servitude.
- The home backs up to a creek, railroad, or commercial development.
- A buyer plans to install a pool, fence, or additional structure.
Skipping a survey could lead to costly surprises, like discovering part of your yard isn’t actually yours.
Homeowners and Flood Insurance
Insurance costs can make or break a home purchase. During due diligence, buyers should:
- Get multiple homeowners insurance quotes to avoid unexpected costs.
- Check if the home requires flood insurance and what the premium will be.
- Review the home’s insurance claim history (CLUE report) to identify past claims.
- Confirm roof age and water heater age—older systems can make insurance harder to obtain.
- If a storm is in the forecast, secure insurance before a named storm enters the Gulf (for Louisiana buyers).
Homeowners Associations (HOA) and Deed Restrictions
Restrictions vary by neighborhood, so review all HOA documents before the due diligence period ends. Pay attention to:
- Pet restrictions – Some HOAs limit pet size or breed.
- Parking rules – Street parking bans, RV/trailer restrictions, and garage requirements may apply.
- Fencing and outbuildings – Verify if you can build a shed, add a pool, or install a fence.
- Short-term rentals – Some HOAs prohibit Airbnb or VRBO.
Buyers must know what they are agreeing to before closing.
School Districts and Zoning
If school zones matter, verify them with the school board—never assume based on a listing or past district maps. School boundaries can change, and misinformation can lead to buyer regret.
For buyers with future plans to build a guest house, subdivide land, or run a home-based business, check zoning regulations during due diligence.
Measuring for Furniture and Vehicles
Before closing, confirm:
- The garage can fit large vehicles like trucks or SUVs.
- The yard is big enough for desired features like trampolines, playsets, or pools.
- Key furniture pieces, like sectional sofas or king-size beds, will fit through doorways and in rooms.
Confirm Financial and Loan Details
Financial surprises can derail a transaction. During due diligence, buyers should:
- Verify monthly mortgage payments with taxes and insurance included.
- Confirm their loan is locked in at an acceptable interest rate.
- Get a full breakdown of closing costs from their lender.
- Check property taxes—some areas have higher rates than expected.
Waiting too long to check these details could leave buyers stuck with an unaffordable home.
Talk to the Neighbors
One of the best ways to learn about a home and its surroundings is to talk to the neighbors. They can provide insights on:
- Flooding and drainage issues
- Neighborhood noise levels
- Potential zoning changes
- HOA enforcement
Visiting the property on a rainy day can also reveal drainage problems that might not be obvious otherwise.
Final Thoughts
The due diligence period is the buyer’s only opportunity to investigate a home before committing. Skipping key steps could lead to unexpected costs and legal headaches down the road. Agents should guide buyers in making informed decisions while ensuring they take responsibility for their research.
Need a step-by-step checklist? Download our Make Sure You’re Sure list for free at hustlehumblypodcast.com/makesure.
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