{"id":102248,"date":"2026-02-03T01:03:50","date_gmt":"2026-02-03T09:03:50","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=102248"},"modified":"2026-02-03T11:30:59","modified_gmt":"2026-02-03T19:30:59","slug":"due-diligence-real-estate","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/due-diligence-real-estate\/","title":{"rendered":"What Is the Due Diligence Period in Real Estate? Complete Buyer\u2019s Guide"},"content":{"rendered":"\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><i><span style=\"font-weight: 400;\">Quick answer: The due diligence period is the time between an accepted offer and closing, when a buyer investigates the property, schedules inspections, reviews disclosures, and ensures it meets expectations before finalizing the purchase.<\/span><\/i><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">You put an <\/span><a href=\"https:\/\/www.redfin.com\/blog\/making-an-offer-on-a-house\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">offer on a home<\/span><\/a><span style=\"font-weight: 400;\"> and it\u2019s been accepted, now the due diligence period begins. <\/span><b>In real estate, the due diligence period is the time between an accepted offer and closing.<\/b><span style=\"font-weight: 400;\"> You can schedule inspections, review the title, secure an appraisal, and check for any red flags that could affect your decision to buy.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Whether you&#8217;re buying a home in <\/span><a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Atlanta, GA<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.redfin.com\/city\/12257\/WI\/Madison\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Madison, WI<\/span><\/a><span style=\"font-weight: 400;\">, or <\/span><a href=\"https:\/\/www.redfin.com\/county\/312\/CA\/Fresno-County\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Fresno, CA<\/span><\/a><span style=\"font-weight: 400;\"> this Redfin guide will walk you through what due diligence means for buyers, what typically happens during this phase.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-due-diligence-in-real-estate\"><span style=\"font-weight: 400;\">What is due diligence in real estate?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">The due diligence period in real estate happens after an offer is accepted and before closing. This allows the buyer to inspect the property, verify its condition, confirm it meets expectations, and fulfill lender financing requirements.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">In some states, buyers may also pay due diligence money\u2014a non-refundable fee paid directly to the seller in exchange for this inspection window. While not required everywhere, it&#8217;s an important part of the process in certain markets and is separate from the <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-earnest-money\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">earnest money deposit<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-difference-between-due-diligence-money-and-earnest-money\"><span style=\"font-weight: 400;\">What is the difference between due diligence money and earnest money?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Both due diligence money and earnest money show the seller that a buyer is serious, but they serve different purposes and are handled differently.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Due diligence money<\/b><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Paid directly to the seller.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Typically non-refundable, even if the buyer backs out.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Compensates the seller for taking the home off the market during the inspection window.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Only required in certain states (commonly <\/span><a href=\"https:\/\/www.redfin.com\/state\/North-Carolina\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">North Carolina<\/span><\/a><span style=\"font-weight: 400;\">, for example).<\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Earnest money<\/b><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Paid into an escrow account and applied to <\/span><a href=\"http:\/\/rocketmortgage.com\/learn\/closing-costs\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">closing costs<\/span><\/a><span style=\"font-weight: 400;\"> or the down payment.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Usually refundable if the buyer cancels for a valid reason (inspection problems, appraisal issues, financing).<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Acts as a good-faith deposit to show commitment.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-in-the-due-diligence-period\"><span style=\"font-weight: 400;\">What happens in the due diligence period?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">When <\/span><a href=\"https:\/\/www.redfin.com\/why-buy\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">buying a home<\/span><\/a><span style=\"font-weight: 400;\">, it\u2019s important to gather all the details you need to make a confident decision. During the due diligence period, the buyer is allowed a set amount of time, typically outlined in the purchase agreement, to fully investigate the property before finalizing the sale.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Here\u2019s what you can expect to happen during this stage.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-home-inspection\"><span style=\"font-weight: 400;\">1. Home inspection<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Buyers hire a licensed inspector to evaluate the condition of the home, checking for structural issues, roof damage, plumbing problems, and electrical safety. While a general inspection covers the basics, buyers should also be aware of issues that might not be directly visible.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Shanna Griffin, Vice President of Strategic Initiatives at <\/span><a href=\"https:\/\/www.disruptequity.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">Disrupt Equity<\/span><\/a><span style=\"font-weight: 400;\">, shares a red flag to look out for, \u201cdeferred water intrusion at building transitions is one of the most overlooked red flags. Areas like balcony connections, window perimeters, roof-to-wall interfaces, and penetrations can often pass a standard inspection because there\u2019s no visible damage yet. But failed sealants, aging flashing, or improper detailing at these transition points can quietly allow moisture into the structure.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">She continues, \u201cThe real cost doesn\u2019t show up until years later, when you\u2019re dealing with rot, mold remediation, structural repairs, or large-scale exterior restoration. A savvy buyer looks beyond current appearance and asks how these assemblies were built, maintained, and whether they\u2019re approaching the end of their effective service life. Catching these early can mean the difference between a manageable maintenance plan and a seven-figure capital event.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">If your inspection reveals these types of major problems, you have the opportunity to request repairs, negotiate credits, or even <\/span><a href=\"https:\/\/www.redfin.com\/blog\/when-to-walk-away-after-the-home-inspection\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">walk away from the deal<\/span><\/a><span style=\"font-weight: 400;\"> depending on your contract.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-home-appraisal\"><span style=\"font-weight: 400;\">2. Home appraisal<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Lenders typically require a home appraisal by a licensed third party to confirm market value. For an <\/span><a href=\"http:\/\/rocketmortgage.com\/home-loans\/fha-loan\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">FHA home loan<\/span><\/a><span style=\"font-weight: 400;\">, the appraisal is more critical, requiring the appraiser to verify the property meets HUD&#8217;s minimum safety, security, and structural standards before loan finalization. A <\/span><a href=\"https:\/\/www.redfin.com\/blog\/appraisal-came-in-low\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">low appraisal<\/span><\/a><span style=\"font-weight: 400;\"> compared to the purchase price can force renegotiation or create an appraisal gap issue.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Buyers have options if an appraisal falls short:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Renegotiate with the seller to lower the purchase price.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Pay the difference out-of-pocket.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Terminate the agreement, if the contract allows.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Some buyers use an <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-an-appraisal-gap\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">appraisal gap<\/span><\/a><span style=\"font-weight: 400;\"> clause to specify how much they&#8217;ll pay above the appraised value.<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><b><i>&gt;&gt; Read: <\/i><\/b><a href=\"https:\/\/www.redfin.com\/blog\/home-appraisal\" data-wpel-link=\"exclude\"><b><i>What is a Home Appraisal? How the Process Works<\/i><\/b><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-title-search-and-insurance\"><span style=\"font-weight: 400;\">3. Title search and insurance<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">A thorough <\/span><a href=\"https:\/\/www.redfin.com\/definition\/title-search\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">title search<\/span><\/a><span style=\"font-weight: 400;\"> confirms the seller\u2019s legal ownership and identifies any liens, encumbrances, or claims against the property, while title insurance adds protection by covering financial losses from unforeseen defects like undisclosed heirs or recording errors.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-property-survey\"><span style=\"font-weight: 400;\">4. Property survey<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">During due diligence, a <\/span><a href=\"https:\/\/www.redfin.com\/guides\/property-survey\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">licensed property surveyor<\/span><\/a><span style=\"font-weight: 400;\"> may confirm the property\u2019s legal boundaries, <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-find-property-lines\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">property lines<\/span><\/a><span style=\"font-weight: 400;\"> and mapping structures, easements, and encroachments. This report can reveal issues like a neighbor\u2019s fence crossing onto the property or restrictions on where you can build, helping buyers address potential problems before closing.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-review-of-seller-disclosures\"><span style=\"font-weight: 400;\">5. Review of seller disclosures<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Sellers are required in most cases to provide a <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-a-sellers-disclosure\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">written disclosure<\/span><\/a><span style=\"font-weight: 400;\"> detailing any known issues with the property. Buyers review these documents and learn about any pre-existing conditions or problems. The specific information included varies by federal, state, and local laws.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">This review typically includes:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Disclosure forms:<\/b><span style=\"font-weight: 400;\"> These forms detail any known defects or issues with the property, such as leaks, structural problems, mechanical issues, or pest infestations.<\/span><\/li>\n\n\n\n<li><a href=\"https:\/\/www.redfin.com\/blog\/house-history-search\/\" data-wpel-link=\"exclude\"><b>Property history<\/b><\/a><b>:<\/b><span style=\"font-weight: 400;\"> Information about past repairs, renovations, or insurance claims related to the property.<\/span><\/li>\n\n\n\n<li><b>Property boundaries:<\/b><span style=\"font-weight: 400;\"> Documentation or surveys that outline the exact property lines, helping identify any encroachments, easements, or disputes with neighboring properties.<\/span><\/li>\n\n\n\n<li><b>Environmental hazards:<\/b><span style=\"font-weight: 400;\"> Disclosures related to potential environmental issues like lead-based paint or asbestos.<\/span><\/li>\n\n\n\n<li><b>Neighborhood concerns:<\/b><span style=\"font-weight: 400;\"> Any known issues with neighbors, noise complaints, or local community developments that might impact the property.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-homeowners-association-hoa-rules\"><span style=\"font-weight: 400;\">6. Homeowners association (HOA) rules<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.redfin.com\/blog\/what-is-an-hoa\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">HOAs<\/span><\/a><span style=\"font-weight: 400;\"> ensure community safety and protection by enforcing rules. If a property is part of an HOA, you&#8217;ll receive documents outlining rules, fees, and responsibilities during due diligence. These rules can affect home use and modification, so review them carefully.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Common HOA regulations might include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Restrictions on exterior paint colors or home additions.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Landscaping requirements or limitations.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Rules about short-term rentals or leasing your home.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Pet restrictions or noise ordinances.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Monthly or annual fees for community upkeep.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-zoning-rules\"><span style=\"font-weight: 400;\">7. Zoning rules<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Confirm <\/span><a href=\"https:\/\/www.redfin.com\/guides\/zoning\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">zoning<\/span><\/a><span style=\"font-weight: 400;\"> aligns with your property plans, as regulations dictate usage, additions, and home-based businesses. For instance, local zoning laws determine if rental units or detached garages are permitted.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-homeowners-insurance\"><span style=\"font-weight: 400;\">8. Homeowners insurance<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">While not legally required, most lenders mandate homeowners insurance for loan approval. If a property has high-risk features, it can be difficult or even impossible to find a carrier willing to cover it, which can jeopardize your financing.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Jay Zemansky of <\/span><a href=\"https:\/\/sadlerinc.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">Sadler &amp; Company<\/span><\/a><span style=\"font-weight: 400;\"> shares, \u201chomeowners can contact their agent to do a fire line score for their house, also is their roof in good shape and check the main power box to see what type of panel as several older ones are uninsurable for many carriers.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Ensuring the home meets these insurance standards early in the due diligence period prevents a last-minute financing collapse if a carrier refuses to cover the property.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-9-final-decision\"><span style=\"font-weight: 400;\">9. Final decision<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">After completing the inspections and research, buyers decide whether to move forward with the purchase, renegotiate terms, or cancel the contract without penalty (if still within the due diligence window).<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-if-issues-are-found-during-due-diligence\"><span style=\"font-weight: 400;\">What if issues are found during due diligence?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Discovering problems with the property is common and the due diligence window is the time to address them. If issues come up, buyers typically have several options:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Negotiate repairs<\/b><span style=\"font-weight: 400;\">: Request that the seller fix the issues before closing.<\/span><\/li>\n\n\n\n<li><b>Ask for a credit<\/b><span style=\"font-weight: 400;\">: Instead of repairs, the seller may offer money back at closing to cover the cost.<\/span><\/li>\n\n\n\n<li><b>Renegotiate the price<\/b><span style=\"font-weight: 400;\">: If repairs are significant, buyers can push for a lower purchase price.<\/span><\/li>\n\n\n\n<li><b>Walk away<\/b><span style=\"font-weight: 400;\">: If the problems are too big or costly, buyers can back out without penalty (if still within the due diligence window).<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-long-is-the-due-diligence-period\"><span style=\"font-weight: 400;\">How long is the due diligence period?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">The due diligence period usually lasts 7\u201314 days, but the exact length depends on the purchase agreement and local customs. In some states it\u2019s defined by law\u2014for example, <\/span><a href=\"https:\/\/www.redfin.com\/state\/North-Carolina\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">North Carolina<\/span><\/a><span style=\"font-weight: 400;\"> typically allows 14\u201321 days, while <\/span><a href=\"https:\/\/www.redfin.com\/state\/California\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">California<\/span><\/a><span style=\"font-weight: 400;\"> inspection contingency period is often 17 days unless negotiated otherwise.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-state-and-market-variations-in-due-diligence-periods\"><span style=\"font-weight: 400;\">State and market variations in due diligence periods<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Real estate due diligence periods vary in duration and rules based on state law and local custom. Some areas require &#8220;due diligence money,&#8221; while others use the inspection contingency period.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>\n<p><span style=\"font-weight: 400;\">State<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Typical due diligence period<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Notes<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">North Carolina<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">14-21 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Due diligence money is standard and paid directly to the seller<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">California<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">~17 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Often called the inspection contingency period. May be shortened in competitive markets.<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Florida<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">10-15 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Usually negotiable. Some contracts refer to it as the &#8220;inspection period.\u201d<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Texas<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">7-10 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Known as the option period. Buyers often pay an option fee similar to due diligence money.<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">New Jersey<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">10-14 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Commonly referred to as the attorney review or inspection window.<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Georgia<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">10-14 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Fully negotiable period, no specific due diligence fee required.<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Illinois<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">5-10 days<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Typically called an \u201cinspection contingency period.\u201d<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><b><i>Tip<\/i><\/b><i><span style=\"font-weight: 400;\">: Always confirm state-specific regulations with your Redfin agent or attorney. Local customs and market competition can significantly affect inspection and decision timelines.<\/span><\/i><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-prepare-for-the-due-diligence-period\"><span style=\"font-weight: 400;\">How to prepare for the due diligence period<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Getting ready for due diligence can help you move quickly and confidently once your offer is accepted. Because this phase involves many moving parts, staying organized is your best defense against stress.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Founder and CEO<\/span> of <a href=\"https:\/\/www.myvirtudesk.com\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">Virtudesk<\/span><\/a><span style=\"font-weight: 400;\">, Pavel Stepanov, offers his organizational advice, \u201cthe simpler your system, the safer your deal. One shared checklist, one place for files, and one person helping you track progress can remove most of the stress from due diligence.\u201d\u00a0<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">To set yourself up for a successful and organized due diligence period, follow these steps:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Line up your team:<\/b><span style=\"font-weight: 400;\"> Secure inspectors and surveyors before your offer is accepted to ensure immediate scheduling.<\/span><\/li>\n\n\n\n<li><b>Review docs early:<\/b><span style=\"font-weight: 400;\"> Scrutinize seller disclosures, HOA rules, and zoning laws to avoid last-minute surprises.<\/span><\/li>\n\n\n\n<li><b>Track deadlines:<\/b><span style=\"font-weight: 400;\"> Mark all due diligence dates on your calendar to protect your right to negotiate or withdraw.<\/span><\/li>\n\n\n\n<li><b>Ready your funds:<\/b><span style=\"font-weight: 400;\"> Have money set aside for fees, deposits, and any specialized inspections you may need.<\/span><\/li>\n\n\n\n<li><b>Build a checklist:<\/b><span style=\"font-weight: 400;\"> Tailor your research tasks to your specific priorities and the unique features of the home.<\/span><\/li>\n\n\n\n<li><b>Stay in sync:<\/b><span style=\"font-weight: 400;\"> Maintain constant communication with your <\/span><a href=\"https:\/\/www.redfin.com\/real-estate-agents\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Redfin agent<\/span><\/a><span style=\"font-weight: 400;\"> to ensure they can advocate for you effectively.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faq-about-due-diligence-in-real-estate\"><span style=\"font-weight: 400;\">FAQ about due diligence in real estate<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-is-due-diligence-required-when-buying-a-home\"><span style=\"font-weight: 400;\">1. Is due diligence required when buying a home?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">While due diligence is not legally required, it is strongly recommended for homebuyers. It allows for property inspection and title verification, giving buyers the critical option to cancel the sale if major issues are found, preventing costly post-transaction surprises.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-what-happens-if-issues-come-up-during-inspections\"><span style=\"font-weight: 400;\">2. What happens if issues come up during inspections?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">If inspections uncover major problems, buyers can negotiate repairs, request credits, or withdraw as permitted by the contract. The due diligence period shields buyers from purchasing a property with unknown defects.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-what-happens-after-the-due-diligence-period-ends\"><span style=\"font-weight: 400;\">3. What happens after the due diligence period ends?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Once the due diligence period ends, the buyer\u2019s right to cancel without penalty typically expires. Canceling after this point may result in losing earnest money, so all negotiations should be finalized before the deadline.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-due-diligence-money-vs-earnest-money-what-s-the-difference\"><span style=\"font-weight: 400;\">4. Due diligence money vs. earnest money: what\u2019s the difference?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Due diligence money is a non-refundable payment to the seller for taking the home off the market. Earnest money is refundable under contingencies and is applied toward closing costs, but both show the buyer is serious.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-is-due-diligence-different-for-condos-or-homes-with-hoas\"><span style=\"font-weight: 400;\">5. Is due diligence different for condos or homes with HOAs?<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Yes. Buyers should review HOA rules, budgets, and reserve studies to identify restrictions, upcoming assessments, or maintenance issues that might impact ownership or resale value.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After your offer is accepted, the due diligence period lets you inspect the property, review important documents, and make sure everything is in order before closing. This guide explains how to prepare and what to expect during this crucial step.<\/p>\n","protected":false},"author":823,"featured_media":102260,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34276],"tags":[34529,34617],"coauthors":[36437],"class_list":["post-102248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","tag-buying-faq","tag-home-buying-process"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is Due Diligence in Real Estate? 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