You just got an offer accepted in Atlanta. Now what happens between “yes” and the closing table? In Georgia, your due diligence period is the short window where you get answers, protect your money, and decide if this home is the right move. If you understand the timelines, inspections, and negotiation options, you can move with confidence.
This guide breaks down how due diligence works in Georgia contracts, what is common across Atlanta and Fulton County, and how to plan your steps so you do not miss a deadline or a costly issue. Let’s dive in.
Georgia due diligence explained
In Georgia, the due diligence period is a negotiated window after contract acceptance when you may investigate the property and decide whether to proceed. Your rights come from the signed contract, not a statewide rule. Standard Georgia forms often include this period, but the exact terms depend on what you and the seller agree to.
During this period, you can order inspections, review documents, and negotiate repairs or credits. If the contract gives you a termination right during due diligence, you can choose to cancel within the deadline. The buyer-protection goal is simple: discover material issues and decide if the home still works for you.
Two buyer payments commonly show up in Georgia contracts:
- Due diligence fee. This is negotiated and typically paid to the seller as consideration for your right to investigate. In practice, it is usually nonrefundable if you terminate during due diligence. Parties may agree to credit it toward your purchase at closing.
- Earnest money deposit. This is held in escrow with a third party. Whether it is refundable depends on your contract and timing. If you terminate within your allowed window and follow notice rules, you usually recover earnest money.
Your contract will spell out how to terminate, who receives notice, and what forms are needed. Follow those steps exactly and within the deadline to protect any earnest money return.
Typical Atlanta timelines
Due diligence in Metro Atlanta resale deals commonly runs 3 to 14 days. In a competitive neighborhood, you may see 3 to 5 days to strengthen an offer. If the property is older or you need specialty inspections, 10 to 14 days is common, especially for out-of-state buyers.
Inspection scheduling drives your window. General inspections often happen within 1 to 7 days, depending on availability. If you plan to scope the sewer line, bring in a foundation specialist, or test for radon, add time so everything fits before your deadline.
Your contract may set a seller response timeline for repair requests, such as 48 to 72 hours. If it does not, submit your requests early and propose clear response dates so you can wrap negotiations before your due diligence clock runs out.
Balance speed and risk
Shorter windows can make your offer more attractive in high-demand areas of Atlanta. The tradeoff is risk. Many intown homes are older or heavily renovated, and they may need specialty checks. Choose a timeline that wins the house without skipping the inspections you need.
Inspections to book first
Order your core inspections as soon as your contract is accepted. Prioritize the items below based on the home’s age, condition, disclosures, and your loan type.
- General home inspection
- Wood-destroying organism (WDO/termite) inspection
- Roof inspection, or roofer evaluation if age or leaks are noted
- HVAC, plumbing, and electrical specialists as needed
- Sewer scope or septic inspection where applicable
- Radon test if desired
- Pool inspection if the home has a pool
- Chimney inspection and lead-based paint considerations for homes built before 1978
If you are using FHA or VA financing, your lender may require a clear WDO report or certain repairs. Confirm those early so you leave time to address them.
Common Atlanta findings to watch
- Foundation movement. Expansive Georgia clay and older structures can create cracks or uneven floors. If your inspector flags concerns, consult a foundation specialist.
- Drainage and grading. Water intrusion and damp crawlspaces are common when lots do not drain well. Look for gutter, grading, and moisture control issues.
- Termites/WDO. Georgia’s climate makes termite inspections and treatment histories important.
- Roof and attic moisture. Aged shingles and poor ventilation can hide leaks and mold.
- Unpermitted work. Many older homes have DIY updates. Check permit history with the City of Atlanta or Fulton County. Unpermitted work can affect safety, insurance, and resale.
- Flood risk. Some streets sit in FEMA flood zones or local floodplains. Verify flood zone status and discuss insurance requirements with your lender and insurer.
- Lead-based paint and asbestos. Pre-1978 homes may include lead paint risk, and some older materials may contain asbestos.
Appraisals can also trigger negotiations, either for value shortfalls or required repairs noted by the appraiser.
How negotiations work
Once you review your inspections, you have options. Your contract controls each step and deadline.
- Terminate within due diligence. If the contract grants this right and you choose to walk away within the window, you usually recover your earnest money. The seller typically keeps the due diligence fee.
- Request repairs. Submit a written repair request with clear items and, when possible, contractor estimates.
- Ask for a credit or price reduction. Sellers often prefer credits at closing instead of performing repairs.
- Require licensed work. For safety or code issues, you can require repairs by licensed contractors and request receipts or permits before closing.
- Proceed as-is. You can accept the home without repairs if you are comfortable with the risk and cost.
Who pays for repairs is negotiated. If you are using a government-backed loan, some repairs may be mandatory to close. To keep things on track, send your objection early in the period and include a reasonable response deadline, such as two business days.
Here are a few common outcomes in Atlanta:
- Seller repairs a structural or safety item and provides receipts and a final inspection report.
- Seller offers a closing credit for an aging HVAC system rather than replacing it now.
- Buyer and seller agree to a price reduction to account for a roof near end of life, with the buyer replacing it after closing.
Waiving inspections or due diligence can help you win a bidding war, but it carries real risk in older Atlanta housing stock. If you consider it, make sure you understand potential repair costs and insurance implications.
Step-by-step checklist
Use this checklist to stay organized. Adjust timing to match your agreed due diligence window.
Day 0 to 2
- Pay the due diligence fee and earnest money per your contract.
- Schedule your general home inspection and key specialists immediately.
- Request available seller disclosures, including lead-based paint disclosure for pre-1978 homes.
- Confirm lender requirements and appraisal timing.
Within the first week
- Review inspection reports and secure estimates for major items.
- Order a title commitment and have it reviewed by your closing attorney or trusted professional.
- Request HOA or condo documents and review bylaws, budgets, and meeting minutes.
- Check permitting history with the City of Atlanta or Fulton County for past renovations.
- Verify flood zone status and discuss flood insurance needs with your lender and insurer.
- Coordinate appraisal timing with your lender.
Before your deadline
- Submit written inspection objections and repair or credit requests per your contract.
- If you plan to terminate, deliver written notice exactly as your contract requires.
- If you are moving forward, document repair plans, credits, or escrow holdbacks and set timelines.
Local resources to consult
- Georgia REALTORS forms and guides
- Georgia Real Estate Commission consumer resources
- City of Atlanta Office of Buildings and Fulton County permitting offices
- Fulton County Tax Assessor and property records
- FEMA Flood Map Service Center
- University of Georgia Cooperative Extension for soils and termite guidance
- Local title companies, closing attorneys, and licensed inspectors
Offer strategy for Atlanta buyers
- Match your window to the home. Older homes or heavy remodels need longer due diligence for specialty inspections. Newer construction may fit a shorter window.
- Book inspectors fast. Ask your agent for backup inspectors in case your first choice is booked.
- Focus on essentials. Prioritize structural, safety, water, and systems issues in your repair requests. Provide estimates to support your ask.
- Use credits smartly. Credits can be faster than repairs and give you control over quality after closing.
- Coordinate other deadlines. Keep title, HOA, and appraisal timing in sync so nothing slips past the due diligence clock.
Work with a guide who plans ahead
A smooth due diligence period starts with a plan on day one. You will feel more confident when your inspections, lender requirements, and negotiation strategy are lined up from the start. That is especially true if you are relocating or buying from out of state.
If you want a clear, step-by-step due diligence plan tailored to your timeline and the property you are buying in Atlanta or the suburbs, reach out to Jim Stern for buyer representation and local guidance.
FAQs
What is the due diligence period in Georgia home purchases?
- It is a negotiated window after contract acceptance when you can inspect, review, and decide whether to proceed, with rights defined by your specific contract.
How do due diligence fees and earnest money differ in Georgia?
- The due diligence fee is usually paid to the seller and typically nonrefundable, while earnest money is held in escrow and may be refundable if you terminate within your contract rights and deadlines.
How long should my due diligence be for an Atlanta home?
- Many buyers choose 3 to 14 days, with shorter windows for competitive offers and longer windows for older homes or multiple specialty inspections.
Which inspections are most important for Fulton County homes?
- A general home inspection and a WDO/termite inspection are key; add foundation, sewer scope, HVAC, roof, and radon based on the home’s age and condition.
Can I cancel during due diligence and keep my earnest money in Georgia?
- Usually yes if your contract grants that right and you deliver written notice in time, but the seller typically keeps the due diligence fee.
How are repair requests handled in Georgia contracts?
- You submit written objections and requests, the seller can accept, reject, or counter, and you document any agreement for repairs or credits before your deadline.
What if an Atlanta home shows unpermitted work during due diligence?
- You can request seller correction or permits, ask for credits, or if your contract allows, terminate during due diligence to avoid future insurance or resale issues.
