Why is it important for agents to conduct due diligence?

Conducting due diligence is crucial for real estate agents as it helps uncover potential issues with a property. This process involves thoroughly investigating various aspects of a property, such as its structural integrity, zoning laws, environmental concerns, and legal issues. By identifying these potential issues before a transaction is completed, agents can protect their clients from unexpected problems that could lead to significant financial loss or legal complications in the future.

While aspects like increasing market value, ensuring financial feasibility, and validating creditworthiness are important in the real estate process, they do not encompass the core purpose of due diligence. Due diligence is primarily about assessing risk and ensuring that buyers are fully informed about the property they are considering. This creates transparency in the transaction and ultimately supports a healthier real estate market by promoting informed decision-making.