Philadelphia due diligence period and contingencies

[Chris Rosenberg]

Hello BP. I am looking to purchase my first piece of property, a small multifamily in Philadelphia. I spoke to a real estate agent today who informed me that there is no due diligence period in Philadelphia. Maybe we were using different terminology and confused each other. She says that most due diligence takes place before the offer. Once an offer is accepted there are usually several contingencies such as an inspection and mortgage contingency but it is very difficult to back out of the deal unless the property seriously fails inspection. Is this true? Properties in Philly usually don't stay on the market for more than a few days. I was under the impression that you should first do a quick check to see if the property is good and run some basic numbers to see if it cash flows and then make an offer. Once the offer is accepted you tie the property up by going into contract. During this period you do your due diligence and if you find something as small as the tenant leases are ending before you thought they were or as big as serious foundation problems then you can back out of the deal. Can anyone from the Philly area explain how the process works because now I'm really confused. Thanks in advance.