Pandemic House Buy without Performing Due Diligence

Purchasing a home is one of the biggest decisions that many make considering the purchase price. Unlike buying goods at a store, houses are not returnable. As a result, one has many factors to consider before making a home purchase—and should not simply rush into such a purchase.

The Role of the Pandemic

Yet, this past year, millions of Americans rushed into purchasing their homes. Why? The pandemic created a housing frenzy, where people exited cities in search of more space, especially since many were and are able to work from home. This exodus, in turn, created bidding wars as housing inventory dropped as many homeowners were hesitant to list their properties during the pandemic. The result: Buyers had little to choose from and began to waive inspections or skip typical due diligence before purchasing a home.

Insurance Issues

Aside from purchasing homes without a professional inspection, insurance companies such as Chubb have seen non-weather related losses increase in frequency and severity due to hasty home purchases. Home purchasers are moving to places that they are unfamiliar and where they do not necessarily understand potential risks associated with a particular geographic location. Good examples may be floods caused by frozen pipes or air conditioners that freeze over. Alternatively, people overlook known risks in order to purchase homes before someone else does. Again, the notion of supply and demand coupled with the challenges that the pandemic has caused has led purchasers to take risks that they had not done previously.

Buyer Beware

Should you need assistance in purchasing, or have a legal question about a potential purchase, our team at Oppenheim Law is here for you. Our sister company, Weston Title & Escrow, Inc., is also able to assist you with your closing. 

Roy Oppenheim

From the Trenches

Originally posted at: https://westontitle.com/2021/02/what-happens-when-you-buy-a-house-without-due-diligence/