Monday, August 27, 2012

Due Diligence: A Concept Much Like A First Date

Finding the “right one” is a quest for both love and property, and for both of them some of the same rules apply. In one case, it’s called dating and in the other, due diligence. Getting to know a person and getting acquainted with a property are associated with the same wonders and pitfalls, and you should know both before making any decision about buying Coral Gables real estate.

When a contract is signed to buy Coral Gables real estate, time is permitted for the new owner to get to know the property. These due diligence periods are normal no matter whether the property in question is a condo, house, office building or any other type structure.

The similarities between due diligence and a first date are both amusing and fascinating. Consider them as follows.

1. You are cautious acquaintances with the property. You are not exactly sure what you want to do. You have no responsibility or sense of commitment to go either way just yet but you also can’t have any say about the property either. (After all, a first date, is still a first date.)

2. In order to get to know your Coral Gables real estate (just as you would someone you are dating) you will need to invest both time and money. This means doing your homework and reading many reports including those involving titles, environmental reports and inspections.

3. Remember that appearances can be deceiving and don’t judge a book by its cover. The outer beauty of the property can’t be more important than how well it fits your financial needs. And also, don’t ever forget that old standby about ‘if it looks too good to be true, it probably is’.

4. In the same manner as you would never make a commitment to a person without knowing them intimately, the same is true for a piece of Coral Gables real estate you are thinking of buying. You want to avoid problems at all costs if you possibly can. This can be achieved if you know the structure of the building, its environmental history and understand all the costs/risks associated with owning and operating it.

5. Patience is golden, so they say, and due diligence takes time as does nurturing any relationship. You may have to “shop around” for the right property, which works for your particular financial needs and requirements, but you must do this if you are seriously considering purchasing Coral Gables real estate.

6. People may be upset with you if you can’t commit, but in the long run, you have to make the ultimate decision about whether the property (or person) in question is for you or not. If you need to cancel, do it honestly and gracefully and move on.

You and not the broker or the seller of the property will have to live with your decision to purchase Coral Gables real estate and so you must use the due diligence period to make up your own mind.

Good luck.

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