Due Diligence • 15 min read • April 26, 2026

Due Diligence Checklist: What to Research Before You Buy

The complete research framework for evaluating any property. From title searches to zoning laws, learn what professionals investigate before every purchase.

Due diligence is the investigation period between signing a purchase contract and closing. It's your opportunity—and responsibility—to verify that the property is everything the seller claims and to uncover any hidden problems before you're legally committed.

Professional investors follow rigorous due diligence checklists for every property. Most homebuyers don't. This asymmetry of information is why professionals consistently find better deals and avoid costly mistakes.

This comprehensive checklist covers everything you need to research, verify, and investigate before buying any property.

⚠️ Critical Reminder

Due diligence isn't paranoia—it's protection. The time to discover problems is BEFORE you own them, when you still have the power to negotiate, request repairs, or walk away.

Phase 1: Property Condition & Systems

Professional Home Inspection

Hire licensed home inspector (cost: $400-$600)

Don't skip this. Non-negotiable for any property purchase.

Attend the inspection — Ask questions and see issues firsthand
Request detailed report with photos of all defects
Get repair estimates for major issues identified

Specialized Inspections (As Needed)

Structural engineer inspection ($500-$1,000) — For foundation concerns, major cracks, or homes over 50 years old
Roof inspection ($200-$400) — If roof is over 15 years old or shows visible damage
Pest/termite inspection ($100-$300) — Required in many states, essential in all humid climates
Radon testing ($150-$300) — Especially for basements, common in certain regions
Mold inspection ($300-$900) — If you see or smell moisture/mildew
Septic inspection ($300-$600) — For homes not on municipal sewer
Well water testing ($200-$500) — For homes not on municipal water
Chimney inspection ($150-$500) — If property has fireplace

Phase 2: Legal & Title Research

Title Review

Order preliminary title report — Title company provides this
Review for liens — Tax liens, mechanic's liens, judgment liens
Check for easements — Utility easements, access easements, drainage easements
Verify property boundaries — Order survey if boundaries are unclear
Purchase title insurance — Protects against undiscovered title defects

Zoning & Land Use

Verify current zoning — Contact municipal planning department
Check for zoning violations — Are all structures and uses legal?
Research allowed uses — Can you add a rental unit, home office, etc.?
Check setback requirements — Distance structures must be from property lines
Review building restrictions — Height limits, lot coverage, architectural requirements

Permits & Violations

Pull building permit history — Municipal building department records
Verify major renovations were permitted — Kitchen, bathroom, additions, electrical
Check for code violations — Open permits or violation notices
Confirm final inspections passed — For any recent work

Automated Due Diligence Research

DwellChecker reports include title research, permit history, zoning verification, and compliance checks—all the legal due diligence automated.

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Phase 3: HOA & Community Research

HOA Documents (If Applicable)

Request CC&Rs (Covenants, Conditions & Restrictions) — Know what rules you're agreeing to
Review bylaws — HOA governance rules
Read last 12-24 months meeting minutes — Understand issues, conflicts, upcoming decisions
Obtain financial statements — Last 2-3 years
Check reserve fund levels — Should be 10%+ of annual budget
Review special assessment history — One-time fees for major projects
Verify no pending litigation — Check for lawsuits involving HOA
Confirm no planned major projects — New roofs, repaving, etc. that could trigger assessments
🚩 HOA Red Flags
  • Reserves under 10% of annual budget
  • History of frequent special assessments
  • Pending or recent litigation
  • Unpaid dues from more than 10% of owners
  • Deferred major maintenance (roofs, roads, structures)

Phase 4: Environmental & Location Risks

Natural Hazard Disclosure

Check FEMA flood maps — Identify flood zone designation
Research wildfire risk — CAL FIRE maps (CA) or state fire maps
Verify earthquake risk — USGS earthquake hazard maps
Check for landslide zones — Especially on hillside properties

Environmental Concerns

Search EPA Superfund sites — Check for contaminated sites nearby
Research property history — Former gas stations, dry cleaners, industrial use
Check for underground storage tanks — Oil tanks common in Northeast
Review Phase I Environmental Assessment — For any commercial conversions

Phase 5: Financial Verification

Cost Verification

Verify property tax amount — Check assessor's office, note any pending reassessment
Obtain homeowners insurance quotes — Get 3 quotes before closing
Check flood insurance requirements — Required for certain zones
Estimate utility costs — Ask seller for past 12 months bills
Calculate total monthly costs — Mortgage + taxes + insurance + HOA + utilities

Phase 6: Neighborhood Research

Location Intelligence

Verify school ratings — Cross-reference multiple sources
Confirm school boundaries — Boundaries change; verify you're in stated district
Review crime statistics — 5-year trends, compare to city average
Check sex offender registry — Required disclosure varies by state
Research development plans — Contact city planning, check for proposed projects
Visit at different times — Morning, evening, weekend, night
Talk to neighbors — Ask about noise, parking, neighborhood issues

Phase 7: Seller Disclosures & History

Disclosure Review

Read seller disclosure statement — Required in most states
Ask about undisclosed issues — Follow up on vague or incomplete disclosures
Check for material defects — Known problems that affect value or safety
Verify death or crime disclosure — Required in some states

Property History Research

Pull property ownership history — County recorder's office
Check past sale prices — Zillow, Redfin, or county records
Research foreclosure history — May indicate deferred maintenance
Check insurance claims history — CLUE report (Comprehensive Loss Underwriting Exchange)

Phase 8: Final Walk-Through

Pre-Closing Inspection

Schedule final walk-through — 24-48 hours before closing
Verify agreed repairs completed — Bring inspection report and addendums
Test all appliances — Turn on, run through cycles
Check all systems — HVAC, water heater, lights, outlets
Confirm property condition unchanged — No new damage since inspection
Verify inclusions present — Appliances, fixtures agreed to convey
Document any issues — Take photos, notify agents immediately

Red Flags That Should Stop You

Some discoveries during due diligence are deal-breakers:

🛡️ Remember

Your due diligence contingency gives you the right to walk away. Use it. Better to lose your earnest money deposit than to buy a property with catastrophic problems.

Documenting Your Due Diligence

Create a due diligence folder (digital or physical) containing:

You'll reference these documents for years to come—during renovations, for insurance claims, when refinancing, and eventually when selling.

Conclusion: Due Diligence Is Your Shield

Due diligence feels like a lot of work. It is. That's the point.

You're about to commit hundreds of thousands of dollars and decades of your life to this property. A few weeks of thorough research is not only prudent—it's essential.

The disasters you'll read about—buyers discovering unpermitted additions, hidden mold, failed septic systems, HOA special assessments—almost always involve skipped or rushed due diligence.

Do the work. Ask the questions. Hire the professionals. Walk away if needed. Your future self will be grateful.

Comprehensive Due Diligence Included

Every DwellChecker report includes title research, permit history, zoning verification, environmental risk assessment, and complete property analysis—your due diligence automated.

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