How long should a due diligence period last?

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Gues diligence in a real estate contract by Richard Weisser.One of the terms commonly addressed in a real estate offer is the length of the due diligence period.

The due diligence period allows the buyer to make all necessary inspections and investigations about the condition of the property and the neighboring area.

A seller does NOT have to agree to ANY amount of time, but most buyers would either walk away or offer a lower price.

ANY period of time can be negotiated between a buyer and a seller. Typical number range from 7-14 days for single-family residential properties and substantially longer for raw land, commercial, or multi-family parcels.

Keep in mind that a seller is keeping the property off of the market during this time and has an interest in "moving things along."

Buyers should be allowed a reasonable amount of time to determine if the property is suitable before laying out thens of thousands or hundreds of thousands of dollars.

Buyers should move expeditiously and methodically, and NOT put off critical inspections to the last minute. It is better to have sufficient time to address all of the buyer's concerns without the need for termination the contract.

So how long should a due diligence period last?

As long as is agreed to by all parties to the contract!

 

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  1. Angelica Blatt 09/15/2013 06:14 AM
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Rainmaker
1,682,414
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

My sellers all want less than 10 days and the buyers all want more.  So, typically, unless there are complications we usually agree on the 10 day value.  But, as you say, it will be what is agreed upon by both parties.

September 16, 2013 04:34 AM
Rainmaker
928,964
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Personal Service, always.
Waters Realty of Brevard, LLC

I am with Gabe above. 10 days seems to be reasonable but again, ot is what is agreed to by the parties.

September 16, 2013 12:37 PM
Rainmaker
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Troy Erickson
Your Chandler, Ahwatukee, and East Valley Realtor
Terra Solis Realty, LLC www.ChandlerRealEstate.weebly.com

Ten days is pretty standard for residential purchase contracts here in Chandler Arizona.  Sometimes I wish it were a little longer because like you said, people are spending hundreds of thousands of dollars on a home, they should have time enough to check it out to make sure they are getting what they think they are paying for.

September 17, 2013 01:06 PM
Rainmaker
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Marnie Matarese
Showing you the best of Sarasota!
J Wood Realty

Our contracts usually say 15 calendar days or 10 working days but I have had several sellers recently whose homes are in excellent conditon allow only 5-8 working days because they do not want the buyers to continue shopping for homes after going to contract on theirsl

September 18, 2013 01:17 PM
Rainmaker
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Gay E. Rosen
Honest, Hardworking and always Professional!
Houlihan Lawrence

Hi Richard - in Westchester,  our due diligence is performed prior to the contract being signed....  

September 24, 2013 07:37 AM
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Additional Information

Author Bio: Richard Weisser is a Georgia real estate broker, licensed auctioneer, and has been writing about Georgia Real Estate since 1999.

Coweta Fayette Real Estate offers opinions and helpful information to consumers and real estate professionals in the Coweta County Georgia area.

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