What is Real Estate Due Diligence?
Due diligence in Austin, Texas involves a concerted effort to discover, and analyze relevant information when a motivated Buyer is pursuing a real estate purchase. The data includes both disclosed and non-disclosed information. Discovering this level of detail enables the Buyer to make an educated, reduced risk, “Buy or No Buy Decision”.
The following is a list of the variety of issues that need to be considered when doing Due Diligence on a Real Estate project in Austin.
- Where is the property Located and how does this Location work for the intended use? Other Location related issues include:
- How is the property Accessed?
- How Visible is the property?
- What is the Existing Land Use of the property?
- What are the Nearby Land Uses?
- What other Land Uses Exist near the property
- Are any new Land Uses proposed near the property?
- Are the other area Land Uses Compatible with the property?
- Is there an Existing Driveway to the property?
- What is the impact of the area Traffic to the property?
- What are the Area Traffic Patterns?
- How do these Area Traffic Patterns impact this property?
- Is the property located on a Primary Route?
- What Jurisdiction(s) is the property in?
- What City or City’s ETJ or County is the property located in?
- Is it in a Water Quality Recharge Zone?
- What Storm Drainage Area is it located in and /or what does it drain to?
- Applicable Ordinances
- What is the property Zoned and can it be improved as planned?
- What Entitlements will be required in order to improve the property as planned?
- Is there an existing Survey and if so review it as soon as possible?
- Are there any limitations to development that are apparent from reviewing the survey?
- Is the property Platted or will we need to file a plat?
- Is a Title Commitment available for review? From a review of the Commitment are their issues with:
- Title to the property?
- Easements on the property?
- Restrictive Covenants on the property?
- Encumbrances on the property?
- What are the property’s Physical Characteristics?
- What kind of Topography is present?
- Are there Wetlands, Caves, Critical Environmental Features present?
- Is the property located in a Floodplain?
- Is existing Storm Drainage located on the Property or will Storm Drainage improvements affect the property when developed?
- Is there a Phase I Environmental Site Assessment available for review?
- If available are there Environmental issues to be concerned with?
- If not available will my Lender require me to obtain one?
- Is there a Geotechnical Report available for review by my engineer, contractor?
- Are there Utilities available to the Site? (* Most Important)
- Natural Gas
- Cable Television
- Internet Service
- What are the costs of tap fees and or Impact Fees to connect the utilities for service?
- Will any of the utilities require cost to make them available from an offsite location in order to serve this property?
- What are the Current, Local, Real Estate Market Conditions that are likely to impact the intended use of the Property?
- Is there a Preliminary site layout available from a Civil Engineer or should we have one done?
- Should I have and engineer or contractor estimate the cost of improvements to the Project?
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