Trying to make sense of Georgia due diligence as you shop in Atlanta’s intown neighborhoods? You are not alone. The due diligence window is short, the stakes are high, and smart timing can protect thousands of dollars. In this guide, you will learn how Georgia due diligence works, what timelines and fees to expect inside the perimeter, which inspections to prioritize, and how to use your results to negotiate with confidence. Let’s dive in.
What due diligence means in Georgia
In Georgia, due diligence is a defined window in your contract that gives you the right to fully investigate a home and, for any reason, walk away before the deadline. You use this time to inspect, review disclosures, confirm permits, and align financing dates. If you terminate within the due diligence period under the standard Georgia forms, you usually keep your earnest money while the seller keeps the separate due diligence fee. The exact outcome always follows your signed contract, so track dates and deliver any notices in writing.
Earnest money vs. due diligence fee
These are two different payments with different purposes. Earnest money is an escrow deposit that shows good faith and typically stays refundable during due diligence. The due diligence fee is a separate payment to the seller that buys you the right to terminate without limitation during the due diligence window. The due diligence fee is usually nonrefundable, and the seller keeps it if you terminate during that period.
Timelines and fees in Intown Atlanta
Intown Atlanta moves fast, and due diligence terms reflect that pace.
- Competitive offers: about 3 to 7 days
- Common in active conditions: about 7 to 10 days
- Slower pace or complex homes: about 10 to 21 days
Due diligence fee ranges vary by competition, price point, and condition.
- Less competitive: about $250 to $1,000
- Typical single family intown: about $1,000 to $5,000
- Highly competitive or higher priced: about $5,000 to $15,000 or more
Shorter windows and larger fees often win in multiple offer scenarios. Older or more complex properties may warrant a bit more time for specialty inspections.
Smart offer strategies in hot neighborhoods
You can dial your terms to balance risk and appeal.
- Tighten the window and raise the fee when you need to stand out.
- Keep a moderate window and moderate fee when the market allows.
- If you need extra time for a complex home, expect to give on price or fee to stay competitive.
Coordinate your due diligence dates with any appraisal or financing contingency dates. You do not want your inspection window to expire before you know where the appraisal or loan stands.
Inspections to prioritize in Intown Atlanta
Intown homes often have age and infrastructure quirks. Use your due diligence period to target the right checks.
- General home inspection following ASHI or InterNACHI standards
- Sewer scope for older laterals that can be costly to repair
- Termite and wood destroying organism inspection, common in Georgia
- Roof inspection and estimated remaining life
- Foundation or structural review if there are cracks or uneven floors
- HVAC and plumbing specialists for older or complex systems
- Lead based paint considerations for homes built before 1978
- Radon test, especially for lower level or closed spaces
- Moisture and mold assessment for basements and crawlspaces
- Survey or boundary review on tight city lots and infill sites
For buyers planning renovations, review local historic district and permitting rules early. Some intown neighborhoods have exterior guidelines that affect materials, windows, and porches.
Use inspection results to your advantage
After you receive reports, you have three main options. You can accept the home as is and proceed. You can negotiate repairs or a credit with documented estimates. Or you can terminate within the due diligence window and typically recover your earnest money while the seller keeps the due diligence fee. Put all requests and agreements in writing and make sure both sides sign any changes.
A quick first week timeline
- Day 0: Contract is signed. Deliver the due diligence fee per contract and send earnest money to escrow.
- Day 0 to 1: Order the general inspection and priority specialty checks like sewer scope and termite.
- Day 2 to 5: Complete inspections and receive reports.
- Day 3 to 7: Review results, gather estimates, and submit repair or credit requests in writing.
- Before the deadline: Decide to proceed, negotiate, or terminate per the contract.
Checklist when you go under contract
Before or at signing:
- Confirm due diligence deadline, earnest money deadline, and closing date in writing.
- Align appraisal and financing dates with your due diligence window.
- Identify the escrow agent for earnest money and how the due diligence fee is paid.
- Request seller disclosures and any available survey.
First 24 to 72 hours:
- Deposit earnest money and pay the due diligence fee as required.
- Order the general inspection and high priority specialty inspections.
- Share scheduling details and access windows with the seller side.
Before the deadline:
- Review reports with your agent and specialists as needed.
- Decide to request repairs, accept as is, or terminate.
- Deliver requests or notices in writing per the contract instructions.
After due diligence:
- Move ahead with appraisal and underwriting.
- If repairs are agreed, document them in a signed amendment with timelines.
- Keep all communications and changes in writing.
Neighborhood notes to keep in mind
- Historic districts like Inman Park, Virginia Highland, Grant Park, and Candler Park often have exterior guidelines. If you plan changes, review rules during due diligence.
- Condos in Midtown, Old Fourth Ward, and parts of Buckhead require association document review. Request budgets, reserves, and any special assessment details early.
- Newer infill builds may have fewer age related issues, but always confirm permit history and system installation quality.
Avoid these common pitfalls
- Assuming the due diligence fee is refundable. It usually is not.
- Waiting too long to schedule inspections. Vendor calendars fill up.
- Relying only on a general inspection. Sewer, roof, foundation, or WDO issues often need specialists.
- Ignoring historic or permit limits until after closing. That can disrupt your renovation plans.
- Misaligned dates that put your earnest money at risk after the due diligence window closes.
Move forward with confidence
A focused due diligence plan helps you act quickly, negotiate from facts, and protect your deposits. In Atlanta’s intown market, speed and preparation win. When you pair a tight timeline with the right inspections and clear written communication, you set yourself up for a smooth closing and long term peace of mind.
If you want a clear plan for your next offer in Buckhead or any intown neighborhood, connect with Shanna Bradley. You will get hands on guidance, trusted vendors, and a strategy tailored to your goals.
FAQs
What is Georgia due diligence in a home purchase?
- It is a defined contract window that lets you inspect, investigate, and terminate for any reason before the deadline, usually keeping earnest money while the seller keeps the due diligence fee.
How do earnest money and the due diligence fee differ in Atlanta?
- Earnest money is held in escrow and is often refundable during due diligence. The due diligence fee is paid to the seller for the right to terminate and is usually nonrefundable.
What due diligence timeline should I expect for an intown Atlanta home?
- Competitive offers often use 3 to 7 days, common offers use 7 to 10 days, and 10 to 21 days appears in slower markets or for complex properties.
How much is a typical due diligence fee for intown homes?
- Ranges vary by price and competition. Many single family intown offers use about $1,000 to $5,000, while highly competitive or higher priced offers can be $5,000 to $15,000 or more.
Which inspections should I prioritize for older intown houses?
- Start with a general inspection, then add sewer scope, termite, roof, and structural reviews. Consider HVAC, plumbing, radon, and moisture checks based on the property.
Can I extend my due diligence period if I need more time?
- You can ask, but the seller must agree in writing. Extensions often require an additional fee or other amended terms.
What are my options if inspections uncover issues in Atlanta?
- You can negotiate repairs, request a closing credit, accept the home as is, or terminate within the due diligence window according to the contract.
How should I align appraisal and financing with due diligence?
- Set explicit appraisal and financing dates that do not lag behind your due diligence deadline, so you do not risk earnest money after protections expire.
