Buyer Due Diligence Checklist

1. Title Work Checklist

Title problems are the most common reason an auction close slips. Start here.

• Order or review a title search for the property.
• Read the preliminary title commitment cover to cover.
• Identify every lien on record (mortgages, mechanic's, tax, judgment).
• Check for outstanding judgments against prior owners.
• Note any easements, rights-of-way, or access agreements.
• Pull HOA, condo, or plat documents and read the restrictions.
• Confirm current property tax status (paid, delinquent, exempt).
• Review the last three to five years of sale history and deed transfers.
• Flag anything unclear and send it to your title company or attorney.

2. Inspection Checklist

Inspections at auction happen during the preview period, not after you win. Schedule them early and document everything.

• Book a full home inspection with a licensed inspector.
• Roof inspection if the roof is aged or shows visible wear.
• HVAC evaluation including furnace age, AC condition, and ductwork.
• Foundation and structural review if you see cracks or settling.
• Sewer scope for older homes on city sewer.
• Septic inspection and pumping records for rural properties.
• Well water test and flow rate check where applicable.
• Chimney and fireplace inspection if present.
• Radon test in basement or lower level.
• Termite and wood-destroying-insect inspection.
• Photograph and video every room, elevation, and any damage.
• Save all inspection reports and receipts in one folder.

Schedule inspections in the first half of the preview window. That leaves time for follow-up specialty visits if the general inspection surfaces something.

3. Appraisal & Condition Checklist

If you are financing, the property has to satisfy your lender's minimum property standards. Coordinate with your loan officer early. See Can I Finance an Auction Purchase? for the full financing walkthrough.

• Share the property address with your lender the day it is announced.
• Ask your loan officer to flag any condition concerns for your loan program.
• For FHA, confirm peeling paint, handrails, and safety items are compliant.
• For VA, review VA minimum property requirements with your lender.
• For USDA, verify the property qualifies geographically and by condition.
• For conventional loans, confirm the appraiser's likely repair callouts.
• Line up your appraisal so it can be ordered the day the contract is signed.
• Ask your lender for a list of common repair triggers on similar homes.
• Budget for any lender-required repairs the seller will not perform.

4. Questions to Ask Before You Bid

Copy these directly and use them when you call. Serious questions get serious answers.

For the seller or listing agent

• "What disclosures and reports are available for review?"
• "Are there any known title issues, liens, or open permits?"
• "Has the property had a recent inspection I can review?"
• "When was the roof, furnace, water heater, and electrical panel last replaced?"
• "Are there any pending code violations or open assessments?"
• "What are the exact terms, buyer's premium, and closing timeline?"

For your inspector

• "What are the three biggest issues you found and what will they cost?"
• "Is there any safety or habitability concern I should know about?"
• "Do you see anything that would fail an FHA, VA, or USDA appraisal?"
• "What repairs would you personally do in the first year of ownership?"
• "Can you walk me through your report before I bid?"

For the title company

• "Are there any clouds on title I should be aware of?"
• "Do you see any liens, judgments, or unresolved probate matters?"
• "Are there easements or restrictions that limit use of the property?"
• "How quickly can you clear title and close after the auction?"

For your appraiser or lender

• "Based on the photos and address, what condition concerns do you see?"
• "How quickly can you order the appraisal after contract signing?"
• "What is your realistic timeline from contract to clear-to-close?"
• "What repairs would your underwriter typically require on a home like this?"

5. The Contingency Reality

This is the single most important thing to understand about buying at auction. Purchase agreements are firm. There is no inspection contingency, no financing contingency, and no appraisal contingency. Once the hammer falls and you sign, the deal is the deal.

What that means in practice:

• You cannot renegotiate price after finding an issue during the appraisal or a post-auction walkthrough.
• You cannot walk away if your financing falls through without losing your earnest money and potentially more.
• You cannot ask the seller for repairs, credits, or closing cost concessions.
• You cannot extend the closing timeline just because your lender is running behind.

This is why pre-bidding due diligence is non-negotiable. Every question you skip becomes a risk you personally absorb.

6. Red Flags Checklist

Any of the following should trigger more research, a phone call, or a decision to pass on the property. Serious buyers know when to walk.

• Clouded title, missing heirs, or unresolved probate matters.
• Unreleased mortgages, mechanic's liens, or old judgments on record.
• Environmental concerns (underground tanks, prior industrial use, mold, asbestos).
• Open or unresolved code violations at the municipal level.
• Structural issues (foundation cracks, sagging roof, active water intrusion).
• Major systems past useful life (roof, HVAC, electrical, plumbing).
• Pending litigation involving the property or seller.
• Boundary disputes, encroachments, or unclear survey lines.
• Access issues (landlocked parcel, shared driveway with no easement).
• Special assessments, unpaid HOA dues, or looming capital projects.
• Zoning that does not permit your intended use.
• Any answer that feels evasive or inconsistent.

7. Due Diligence Timeline

A realistic calendar for a typical 30-day marketing window. Work backward from auction day.

• Day 1 to 3: Read the T&Cs, order title search, contact your lender with the address.
• Day 3 to 7: Attend the first open house, book your general home inspection.
• Day 7 to 14: Complete general inspection, schedule specialty inspections.
• Day 10 to 18: Review title commitment with your title company or attorney.
• Day 14 to 21: Complete specialty inspections, get lender's condition read.
• Day 18 to 25: Review disclosures, HOA docs, and any survey or environmental reports.
• Day 21 to 28: Confirm full underwritten pre-approval and closing timeline.
• Day 25 to 28: Set your maximum bid with buyer's premium and repair costs baked in.
• Day 28 to 29: Confirm earnest money is ready to wire, review bidding platform.
• Auction day: Bid your number, not a dollar more.

For general auction process context, see how real estate auctions actually work.

8. Your Due Diligence Toolkit

What to bring to inspections and previews, and how to keep the paper trail organized so nothing gets lost.

• A phone or camera for high-resolution photos and video.
• A notebook or tablet for a running punch list.
• A tape measure for room dimensions and appliance openings.
• A flashlight for attics, crawl spaces, and mechanical rooms.
• A copy of the property listing, T&Cs, and any published disclosures.
• A dedicated folder (digital or paper) titled with the property address.
• Subfolders for: Title, Inspections, Lender, Disclosures, Photos, Correspondence.
• A single running document with your questions and the answers you have received.
• Your maximum bid number, written down, before auction day.

Ready to talk it through?

Due diligence is not glamorous. It is the work that turns an auction into a confident purchase instead of a surprise. If you are working through a Pasker property and hit anything you want a second opinion on, call. That is why we are here.

Call (419) 728-2225, or send us a message. Ask the hard questions before you bid, not after you win.

Frequently asked questions