Question 1

What is due diligence in real estate?

Accepted Answer

Due diligence is about inspection of the basic information about a property including its seller’s details, financing, and compliance obligations to minimise the uncertainties associated with it.

Question 2

How much does due diligence cost?

Accepted Answer

Due diligence inspection costs depend on the length and complexity of the real estate project.

Question 3

How long does the due diligence process take?

Accepted Answer

The due diligence time depends on the size of the real estate and the details associated with it. On average, it can take between 45 to 180 days to conduct a due diligence analysis for property investments.

Question 4

Is appraisal done during due diligence?

Accepted Answer

An appraisal is a part of the due diligence process. Buyers need to have an appraisal done on the place during diligence to determine the market value of the real estate.