Minnesota Home Buyer Due Diligence Guide

When you’re buying real estate, you need to make sure the property is right for your needs. That means going through some common due diligence concerns before you make an offer. If you’re wondering whether the property you have your eye on is right for your goals, you’ll want to do your due diligence before making an offer. Here’s what your Minnesota real estate attorney wants you to do as soon as you find a home you’re interested in.

Take Your Time

Before you make an offer on a property, take your time and make sure it’s right for your situation. Carefully consider how each property could fit your needs and any concerns you have over the home before making an offer. By comparing your options in detail and making sure the home is right for you, you’ll be better able to choose a property that you won’t regret buying immediately after closing. You are solely responsible for making sure the property will meet or exceed your needs. Once you close on the property, you can’t change your mind and won’t be able to get your money back if the home turns out to not be the right fit.

Read up on Property Disclosures

Sellers are required to notify potential buyers of any hazards in the home. This includes hazards like lead-based paint, asbestos, pest infestations, and other environmental hazards. Before you make an offer, read the property disclosures thoroughly. If you see anything you’re not comfortable with, you may want to keep looking. Remember, if you purchase a home with known hazards and find that you’re uncomfortable with the hazards after moving in, the burden of any remediation is on you. 

Work With an Inspector

Home inspections are an essential part of the home-buying process. They help you uncover possible issues that could make the home less than ideal at best and unsafe at worst. Once you find a home you’re interested in and are ready to make an offer, be sure to schedule a home inspection with a licensed inspector. This part of the due diligence process can help you ensure that you’re making a good investment and can keep you from buying a home that will cost more than you bargained for in the long run.

Ask for Help Preparing Your Offer

Your real estate agent can negotiate with the seller on your behalf, and they can help you create a fair and competitive offer for the property. But it’s still a good idea to ask your real estate attorney to review your offer before you submit it. They’ll be able to review the terms and make sure your offer protects your interests. They’ll also be able to review the legal terms of your offer to ensure that they’re in full compliance with the law.

Get the Purchase Agreement Reviewed

Once the seller accepts your offer, you’ll both need to sign a purchase agreement that outlines the terms of the sale. These agreements are legally binding and should always be reviewed by a real estate attorney before you sign. Your attorney will be able to assess the terms, explain any complicated components, and ensure that the agreement works in your best interest. If any of the terms need to be changed, they’ll recommend those changes so you can negotiate further with the seller. 

Due Diligence Protects You

Doing your due diligence prior to any home purchase is essential if you want to make an informed decision. While you and your real estate agent can handle much of the process on your own, it’s still beneficial to work with an experienced Minnesota real estate attorney. At Waypoint Law, our team is here to help. Contact us today to schedule a consultation.