What Happens During a Due Diligence Process? | Ep. 122

In this episode, we discuss the exact steps that happen within a due diligence process and the costs associated. 

Some listeners may be surprised to learn that you'd put a house under contract before conducting due diligence, but the important point to know is that the reason you put a property under contract first is so that you know you have the right to buy the property at a price that is acceptable to you. 

When conducting due diligence you'll need to:

• Run the sale and purchase agreement passed your solicitor
• Order and look at the LIM
• Review the title
• Organise finance
• Conduct a valuation
• Conduct building inspections
• Talk to an insurance broker to ensure the property can be insured
• Conduct a chattel valuation (if you are an investor)

All up due diligence for property investment nz can cost between $2500-$3500, so it is important that you conduct it only when you know it is a property you can buy and a price that is acceptable to you.