Interest rates are low. Inventory is low. And there are way more buyers than inventory. Hence it’s a true sellers’ market and this can drive buyers to do desperate things. One of the scary trends that is happening everywhere is that buyers are skipping or waving their rights to Due Diligence.
Due Diligence
Due Diligence refers to the time a buyer has after signing a contract to assure themselves they are getting the asset they are paying for. Over the course of the net two blogs posts, we are going to unpack “Due Diligence” and take a look at the vital, various tasks that with the help and guidance of Karen, will clearly help you determine if a house and property are right for you.
But first let’s look at something that is happening in various parts of the country right now that would cause potential buyers to rush in to purchasing a home without a period of Due Diligence. For a detailed primer on more that buyers should consider, read Karen’s North Atlanta Real Estate Buyers- Your Questions Answered.
Would Buyers Ever Skip Due Diligence?
Yes. According to the Wall Street Journal, the white-hot real-estate market that has created bidding wars and panic buying has buyers routinely skipping Due Diligence has in some cases led to chronic buyer’s remorse. Millions of people bought homes in 2020, and lots of them did not perform Due Diligence.
The North Atlanta real estate market is also very much on fire at the moment. First, let’s explain why. The market is in large part being fueled by something called, “pandemic house fever”. As families are working from home, educating form home and staying in for meals, recreation and nearly everything, homes got really small, really fast. Virtually overnight families, outgrew their spaces. Also in urban areas, as work from home orders continue, without an end in sight, or plans to go back to the way it was post pandemic, many urban areas saw a mass migration to the suburbs.
Sadly, some buyers faced with a shortage of inventory acted hastily because frankly that had to in order to secure the house, but now realize that they hate the house they bought.
A house, unlike expensive jewelry or clothing, can’t be returned if the buyer is unhappy with it, so a cardinal rule of home buying is that you shouldn’t rush into a purchase. But in 2020, millions of Americans did just that. Now, many are discovering the pitfalls of these hasty purchases, ranging from buyers’ remorse and financial strain to damage caused by unexpected problems.
Those are just a few of the many items that make up due diligence when buying real estate. Remember, you have to do these before you close escrow on the property. If you fail to do the proper tasks, problems might arise that were preventable, and might make your real estate experience less than palatable, or downright life changing! Or they might cause you to lose all the money you’ve put into the property.
Please check back for Karen’s next Blog, where we will explore Due Diligence in detail, so that you are armed with all your rights, and what is customary for buyers in the North Atlanta Market.
An experienced real estate agent like Karen can help guide you through the buying process to get the best outcome for you. She will remain calm and in control despite the urgency of her buyers or the conditions of the market.
Please contact Karen today to get the best representation in your corner.
