How to Negotiate a House With Due Diligence

Conducting Due Diligence

• 1). Conduct additional surveys and inspections. Depending on the state you are in, and the requirements of your mortgage company, certain inspections will be legally required. If you suspect another problem or issue with the property, you can have additional inspections performed. For example, you might want to inspect for radon levels or for certain types of insect infestations.
  
  
• 2). Walk around the neighborhood at different times of day and see what types of activities take place. Are there loud neighbors or unkempt yards? Think about whether you feel safe walking in the neighborhood.
  
  
• 3). Check the zoning of any nearby empty lots. Lots that are zoned light commercial could end up with an office or small store on them. This might obstruct a view or change the character of the neighborhood.
  
  
• 4). Look at crime data for the neighborhood. You can get this from the local police department or from online outlets. Find out if the neighborhood subject to high levels of crime.
  
  
• 5). Consider conducting a site survey to ensure the property boundaries are accurate. Title companies might not catch boundary problems. You can also buy updated title insurance to cover you in the event that the property boundaries turn out to be inaccurate.
  
  

Negotiate

• 1). Conduct negotiations with the seller once you have gathered all the due diligence information. If you have found problems, discuss the possibility of the seller reducing the asking price.
  
  
• 2). Prepare to compromise and meet the seller part-way. You may not get everything you want, but the goal is to get what you can live with. If you have a major sticking point that is holding up negotiations, consider setting it the side and dealing with it later, once smaller problems have been taken care of.
  
  
• 3). Let your real estate agent conduct the negotiations on your behalf. Your agent should be experienced in negotiations and will have a good idea of what should be deducted form the asking price for due diligence issues.