You've found a house, submitted an offer and the Seller has accepted it. Now what? In Northeast Florida, once you have a signed Purchase & Sale Agreement, a Buyer has a set period of time in which to perform their due diligence. This time, also known as the inspection period, is often 10 days but may be shorter or longer depending upon what was agreed upon in the sales contract.  During the due diligence period, a Buyer should do whatever inspections and research they deem important. Before the period ends, a Buyer may either cancel the contract and have their escrow deposit returned to them, or proceed with the transaction and risk losing their escrow deposit if they don't purchase the home.

Below are some things I encourage my customers to do as part of their due diligence.

Review Homeowner's Association (HOA) and Community Development District (CDD). Documents.  This should include governing documents, financial statements and covenants and restrictions. You may also want to contact the HOA to inquire if there is any pending litigation against the Association or any current or anticipated financial assessments to homeowners.  

Perform Inspections.  These should be done by licensed individuals or companies and may include  a home inspection, a Wood Destroying Organism (termite/bug) inspection and possibly evaluations of the foundation, pool, dock, sewer, septic or other features of the property.

Get Quotes for Homeowner's Insurance.  Your lender will require you to have homeowner's insurance in place before you purchase the home.  Shopping for it during due diligence will allow you to understand the requirements and cost of your policy and eliminate surprises later in the process. If flood insurance is either required or you choose to buy it, be sure you understand the current cost and whether to expect increases in the near future.

Visit Schools. If you have children who will be attending public or private school, the due diligence period is a great time to schedule a tour, obtain registration information and review school data and policies that are important to you.

Apply For Your Mortgage.  Buyers are required to make a formal mortgage application shortly after the contract is signed. If you haven't already done your research and compared mortgage rates, fees and services you'll need to do that quickly. As part of the process, be sure to talk with your lender about how to avoid delays or problems with getting your final loan approval. A good lender will give you a list of things to avoid prior to closing such as making large purchases, changing jobs, accepting cash gifts from relatives, etc.

Research Community and Local Expansion, Future Development and Zoning.  This is an often-overlooked but very important part of due diligence. Now is the time to understand what plans are on the drawing board for the future. Is there a "Phase II" being built in your neighborhood that my overburden roads, pools or schools? Are there plans for a gas station to be built adjacent to your community? Will a major roadway be widened, increasing traffic and noise? You will want to know these things prior to buying a home, not after you have moved in.

Review Local Crime and Sexual Offender Data. This info can often be found on local or state law enforcement websites or you can call or visit the area police or sheriff's department.

Talk to Neighbors. If practical, consider walking or driving through the community and speaking with residents. Nothing beats an insider's view!

While this may seem like a lot to do in a short period of time you have likely already done some of it when you began your search for a new home. If not, the time and energy you put into this now may help you avoid unpleasant surprises in the future and feel confident in your choice of a home and community.

Julie Bentley is a Realtor® who has been working with Buyers and Sellers in the St. Johns and Jacksonville, FL area since 2012. She is always willing to connect her customers with the authorities, contractors, businesses, sources and data they need to make fully-informed home-buying decisions. It's Your Move.