Buying a home in Atlanta moves fast, and that can make Georgia’s “due diligence” period feel like a blur. You want to make smart decisions, protect your earnest money, and still keep your offer competitive. This guide breaks the process down step by step so you understand fees, timelines, inspections, and how to navigate negotiations in Fulton County. Let’s dive in.
What due diligence means in Georgia
During the due diligence period, you have a set window to fully investigate the home and decide if you want to move forward. Most Georgia purchases use the Georgia Association of REALTORS (GAR) contract, which sets a Due Diligence Date and outlines how notices must be delivered.
Two payments: due diligence fee vs. earnest money
- Due diligence fee: paid to the seller at ratification and typically nonrefundable. If you close, it is often credited to the purchase.
- Earnest money: held by an escrow agent. If you terminate properly within the due diligence period, it is typically returned to you per the contract.
- If you default after the due diligence period, the seller may be entitled to the earnest money as liquidated damages depending on the contract.
How the period and deadlines work
- The Due Diligence Date is a firm deadline. You can terminate for any reason before this date if you follow the contract’s notice rules.
- After the date, termination rights narrow to specific contingencies that remain in place, such as financing or appraisal if included in your contract.
- All notices should be in writing and delivered the way the contract requires.
Atlanta timelines and typical costs
Metro Atlanta norms vary by neighborhood and competition level, but here is what you will often see:
- Due diligence period: commonly 7 to 14 days. Shorter windows (2 to 5 days) are used in multiple-offer situations. Longer windows (14 to 21 days or more) are common for older homes or complex properties.
- Earnest money: often around 1 percent of the purchase price, though this can vary.
- Due diligence fee: ranges widely. A few hundred to several thousand dollars is common. Larger fees can strengthen an offer but increase your risk if you terminate.
Sample timeline after ratification
- Day 0: Contract signed. You pay the due diligence fee to the seller and deposit earnest money with the escrow agent named in the contract.
- Days 1 to 7 (or until the Due Diligence Date): Complete inspections, review HOA documents, review title and survey items, and check permits.
- Before the Due Diligence Date: Send a written repair request or notice of termination if you choose to walk away. If proceeding, document any agreed repairs or credits in writing.
What to do during due diligence
Inspections to prioritize in Fulton County
- General home inspection covering structure and major systems.
- Wood-destroying organism (termite) inspection, given Georgia’s climate.
- Roof inspection if age or condition is unclear.
- HVAC, plumbing, and electrical specialists when the general inspection flags issues.
- Sewer scope, especially in older intown areas where clay pipes and roots are common.
- Structural engineer evaluation if cracks or foundation movement are noted.
- Radon testing if you prefer added data on indoor air quality.
- Well and septic inspections if applicable.
- Request pest treatment records and any transferable warranties.
Title, survey, permits, HOA, and flood checks
- Title commitment review and a look at exceptions.
- ALTA or boundary survey review to spot encroachments and easements.
- Fulton County permit history for additions, conversions, or major remodels.
- FEMA flood zone and local floodplain maps, especially near Peachtree Creek and its tributaries.
- HOA covenants, bylaws, budget, and any pending assessments for condos or planned communities.
Scheduling and documentation tips
- Book inspections immediately after ratification, and schedule specialists early if they have longer lead times.
- Keep findings in writing. Share reports and requests through the channels the contract specifies.
- Prioritize high-impact risks first: sewer scope, roof, foundation, and permits.
Negotiations, termination, and protecting earnest money
Repair requests and negotiation
- Submit a written repair or credit request within the due diligence window.
- Sellers may agree to repairs, offer a credit, provide documentation, or decline.
- If you cannot reach agreement and you are still within the deadline, you can terminate as allowed by your contract.
Appraisal and financing contingencies
- If you are financing, your contract includes loan approval and other financing dates. Meet those deadlines or request written extensions.
- A low appraisal can open options: price renegotiation, a buyer cash contribution to cover a gap, or termination if your contract includes an appraisal or related financing contingency.
How buyers lose earnest money, and how to avoid it
- Loss risk increases if you miss the Due Diligence Date and then refuse to close.
- Missing financing deadlines without extensions can also put your earnest money at risk.
- Protect yourself by sending a timely written termination before the deadline if needed, meeting all contract dates, and securing any changes with a written amendment.
Atlanta-specific watchouts
- Termites and wood-destroying organisms are common. Prioritize inspections and ask for treatment records.
- Unpermitted work appears in older neighborhoods. Check Fulton County permit history early.
- Aging sewer lines can be costly. A sewer scope is a smart move for older homes.
- Floodplain overlays affect insurance and improvements. Verify FEMA designations and local maps for properties near waterways.
- Historic districts may require approvals for exterior changes. Confirm any restrictions if you plan renovations.
Practical buyer checklist
- Immediately after ratification:
- Confirm the Due Diligence Date and all other deadlines.
- Pay the due diligence fee and deposit earnest money as required.
- Schedule the general inspection and any specialist inspections.
- Within 48 to 72 hours:
- Request HOA documents and financials if applicable.
- Order title and review exceptions.
- Pull Fulton County permit history and check flood maps.
- As reports arrive:
- Prioritize safety and high-cost items.
- Get contractor or engineer bids for significant defects.
- Prepare a written repair request or plan for termination if issues are deal-breakers.
- Before the deadline:
- Send a written termination if needed.
- If proceeding, sign a written amendment capturing repairs, credits, or price changes.
When to bring in specialists
- Real estate attorney: complex title issues, unpermitted work questions, or escrow disputes.
- Structural engineer: foundation or major structural concerns.
- Experienced contractors and inspectors: accurate scopes and cost estimates.
- Your lender early: clear timelines for loan approval and appraisal requirements.
Work with a local guide
You do not have to navigate due diligence alone. With the right plan and local expertise, you can move quickly, protect your earnest money, and still stay competitive. If you are buying in Atlanta or Fulton County, let’s map out your timeline, inspections, and negotiation strategy together. Reach out to shannon cartrett to get started.
FAQs
How long is due diligence in Atlanta?
- Many offers use 7 to 14 days, with 2 to 5 days in competitive situations and longer periods for older or complex homes.
What is the difference between the due diligence fee and earnest money in Georgia?
- The due diligence fee is paid to the seller and is typically nonrefundable, while earnest money is held in escrow and is usually refundable if you properly terminate before the due diligence deadline.
Can I get my earnest money back after the due diligence date passes?
- Broad termination rights usually end at the Due Diligence Date, so refund rights depend on other contingencies that remain, such as financing or appraisal if included in your contract.
Which inspections matter most for older Atlanta homes?
- A general home inspection, sewer scope, termite inspection, and roof evaluation are common priorities, with a structural engineer if cracks or movement are present.
What if the appraisal comes in low in Fulton County?
- You can try to renegotiate price, bring cash for a shortfall, or terminate if your contract includes an appraisal or related financing contingency.
How do I check Fulton County permits during due diligence?
- Request the property’s permit history early and compare it to visible improvements so you can verify that major work was permitted and inspected.
