What is "Due Diligence"?

I work with a lot of first time home buyers or buyers who haven't purchased a home in a while. The first thing that comes up is what if there is something wrong with the home? How does the buyer know and how do they get out of the contract if there is a serious issue? This is what "due diligence" is all about. I always negotiate at least a a two week due diligence period where we can have the new home inspected by a licensed inspector, and anyone else that the buyer might want to bring in for a professional opinion regarding the condition of the home, or how much work may be needed to satisfy the new ower, or even the lender. This time is also used for the buyer to really make sure they want to buy the home they have made an offer on. I encourage my buyers to visit the home as much as possible to ensure they really want to move forward with the process. Buying a home is stressful and full of risk. I always tell my clients to go with their gut. Usually, you know if it is the right thing to do or not, and a two week due diligence period is the perfect time to soul search and figure it out.