What does "due diligence" typically include after an accepted offer?

Prepare for the Illinois Broker Reciprocity Exam. Use flashcards and multiple-choice questions complete with hints and explanations. Ace your exam!

"Due diligence" refers to the careful and thorough investigation and consideration that a buyer must undertake after an offer has been accepted on a property. This process ensures that the buyer verifies all pertinent information and confirms that the property meets their expectations before finalizing the purchase.

The correct choice highlights two critical aspects: financing options and inspections. During due diligence, a buyer will typically explore various financing options to ensure they can afford the property and secure the necessary loans. Additionally, conducting inspections allows the buyer to evaluate the condition of the property and identify any potential issues that may need to be addressed either prior to closing or in negotiations with the seller.

Other choices do not align with the typical scope of due diligence. Finalizing the sale contract occurs after due diligence is completed, rather than being part of the investigation itself. Property marketing and showings are activities usually undertaken before an offer is accepted, not after. Negotiating buyer's agent commissions relates more to the agent's business and finances rather than the buyer's verification of property details during the due diligence phase.

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