WHAT IS REAL ESTATE DUE DILIGENCE?

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,

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)
      • *Water
      • *Wastewater
      • Electricity
      • Natural Gas
      • Telephone
      • 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?
Understand the

Property Purchasing Process

Searching available listings is the starting point.

With his experience, knowledge, and connections, Mark Pustka can facilitate showing the property, the transaction and represent your interests to ensure a smooth process throughout.

Remember that an Agent representing you in a Search is paid from the Seller/Lessor’s side and costs you nothing to have representation.

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Property Listings

Use the search function to identify available properties if you are looking to purchase a property. Then contact me so that I can visit with the Seller’s Agent and guide you through the purchase or lease process to make sure we address your needs.

Mark-Pustka-Real-Estate-Austin-Texas

Mark Pustka, Commercial Realtor
McAllister & Associates

I’m in the commercial real estate industry to help people through what can be an exciting, but challenging time when purchasing or selling a property.  My favorite part of working with clients is figuring out what is necessary to meet their specific property needs. I enjoy working in commercial real estate because of the people I get to meet and the relationships I get to foster with my clients, as well as getting to hear a lot of amazing stories along the way.
 

Working effectively with the buyer or seller on the other side of the table while listening to your needs is the crux of the process. It’s what can make or break a deal.

With 25 +years of experience in property buying, selling, leasing and property management I can help you make the best decisions to meet your commercial property goals. Guiding the experience of buying and selling property with limited stress is something I always strive for. I do so by keeping you informed of the next steps, letting you know what needs to be done to stick to your schedule and the best way to stay within budget. My goal is to always provide all of this while fulfilling my fiduciary responsibility to my client.

I am a Licensed Broker Associate with McAllister & Associates here in Austin, Texas.