Buying or selling in Atlanta can move fast, and your due diligence window can decide the entire outcome. You want clarity on timelines, fees, inspections, and negotiation steps so you can protect your money and your leverage. In this guide, you will learn how due diligence works in Georgia, what to expect in Fulton County, and how to use the period to your advantage. Let’s dive in.
What due diligence means in Georgia
Due diligence is your limited window to investigate a property, confirm financing, and decide whether to move forward. Georgia contracts define this period with specific dates written into the purchase agreement. During this time, you can order inspections, review title, check association documents, and secure quotes.
Most buyers have the right to terminate during the due diligence period, provided the contract grants that right. If you terminate within the window, you usually forfeit the due diligence fee paid to the seller, but you may be entitled to a refund of your earnest money based on the contract.
Due diligence fee vs. earnest money
These two payments are not the same in Georgia.
- Due diligence (option) fee: Paid directly to the seller for the right to terminate during the due diligence period. If you cancel within that window, the seller typically keeps this fee. It compensates the seller for taking the home off the market.
- Earnest money: A deposit held in escrow by a brokerage, title company, or closing attorney. It shows good faith and usually applies to your purchase funds at closing. If you terminate properly during due diligence, your earnest money is typically refundable. After the period ends, refund rights depend on the contract and any contingencies.
Typical Atlanta timelines
Every contract is negotiable, but many Atlanta transactions follow similar rhythms. Use these as planning ranges rather than absolutes.
- Delivery of due diligence fee and earnest money: Often due within 1 to 5 business days of acceptance.
- Due diligence period: Commonly 7 to 14 calendar days. Competitive offers may shorten to 3 to 5 days. Complex properties can stretch longer, sometimes up to 21 days or more.
- Financing contingency: Often 21 to 30 days from acceptance. This can align with or extend beyond due diligence.
- Appraisal scheduling and completion: Typically 7 to 21 days after ordering, depending on lender and market conditions.
- Closing date: Commonly 30 to 60 days from acceptance. Cash purchases can close sooner.
Missing a deadline can change your rights, including whether earnest money is refundable. Put every milestone in writing, track calendar versus business days, and confirm how your contract defines each deadline.
Typical money ranges and budgets
Plan for both deposits and investigation costs.
- Due diligence fee: From a few hundred dollars on lower price points to several thousand dollars on higher price points or in competitive situations. This fee is usually nonrefundable to the seller if you terminate during due diligence.
- Earnest money: Often 1 to 3 percent of the purchase price, held in escrow and applied to your funds at closing.
- Inspection and testing costs: Budget roughly $300 to $1,500 or more depending on scope.
- General home inspection: $300 to $600
- Sewer scope: $150 to $400
- Termite and wood-destroying organisms (WDO): varies by provider
- Radon: $100 to $200
- Specialists (structural, HVAC, electrical, or roofing): $200 to $800+
What to inspect in Atlanta homes
Atlanta’s soil, storm patterns, and age mix of housing create specific risks and priorities. Focus your due diligence on the items that matter most to local properties.
Foundation and drainage
Atlanta’s clay soils and seasonal moisture shifts can cause movement and cracking. Look carefully at foundation walls, floors, and exterior grading. If there are signs of settlement or patching, consider a structural engineer or foundation specialist. Evaluate gutters, downspouts, and any French drains to confirm water is moving away from the house.
Sewer and WDO
Older neighborhoods can have clay or cast-iron sewer laterals that are vulnerable to root intrusion or collapse. A sewer scope is a common add-on for older homes. Lenders often require a termite or WDO report in Georgia, and sellers frequently provide documentation of prior treatments.
Roof and mechanical systems
Heavy seasonal storms and hail can create roof issues. Verify roof age, shingle condition, flashing, and attic ventilation. Review HVAC age and service history, and inspect electrical panels and visible wiring, particularly in older homes with past updates.
Flood zones and stormwater
Some Atlanta areas are prone to localized flooding. During due diligence, check flood maps, insurance requirements, and the property’s stormwater history. Drainage and grading solutions are common negotiation items where needed.
Permits and HOA documents
Verify permits for additions, decks, and major alterations. If the property is in a condo or HOA, review covenants, budgets, reserves, and any special assessments. Aim to read these promptly so you can object or terminate within your window if needed.
Strategy: negotiating repairs and credits
Most repair negotiations happen inside the due diligence period. After inspections, buyers typically submit a written request by the deadline. Contracts often provide the seller a set response window, commonly 48 to 72 hours, though the agreement controls.
Sellers have several options:
- Accept the repair list as requested and complete work before closing, usually with licensed contractors and receipts.
- Offer a credit or price reduction instead of doing the work.
- Propose a limited repair set focused on health and safety.
- Decline the requests. The buyer then decides to proceed or terminate if still within the due diligence window.
After the due diligence period expires, buyers lose the unilateral right to cancel for general dissatisfaction. Renegotiation tends to focus on material issues tied to title, health and safety, or lender requirements.
Appraisal and loan considerations
A low appraisal can trigger new negotiations. Buyer and seller may resolve the gap with a price change, buyer funds to bridge the difference, or lender adjustments. Lenders sometimes require repairs for underwriting, which can delay closing or lead to credits or targeted fixes.
Buyer playbook: first 14 days
Use your window wisely with a clear sequence.
- Schedule the general home inspection immediately, ideally within the first 1 to 3 days.
- Order WDO and sewer scope for older homes or when history is unknown.
- Verify flood zone status and any insurance implications. Confirm lender requirements.
- Review seller disclosures, permits, and HOA or condo documents right away.
- Track lender dates for appraisal and loan commitment, and follow up weekly.
- If inspections reveal structural or foundation concerns, call a specialist quickly so you can decide before your deadline.
- Deliver repair requests or a termination in writing by the contract dates, and retain proof of delivery.
Seller playbook: reduce risk, keep leverage
Preparation reduces surprises and keeps negotiations measured.
- Provide seller disclosures promptly. Consider pre-listing inspections, including WDO, to identify issues early.
- Organize permits, warranties, and repair records for buyers to review.
- Set clear expectations about who will handle common items and whether you prefer repair credits over doing work.
- Coordinate with your closing attorney or title company early so earnest money and escrow instructions are clear.
How to choose your due diligence length
Balance thoroughness with competitiveness. For well-prepared, recently updated homes, a shorter window can be workable if you can schedule inspectors quickly. For older or complex properties, a 10 to 14 day period is often more realistic.
If you need to strengthen your offer, consider a higher due diligence fee. This can make your bid more attractive, but calculate the risk if you later decide to terminate.
Avoid timing mistakes
The simplest errors can be costly. These steps help protect your position:
- Confirm in writing when the clock starts and whether days are calendar or business days.
- Calendar every deadline and set reminders 24 to 48 hours in advance.
- Line up inspectors before writing the offer when possible, especially in competitive situations.
- Communicate clearly with all parties, and deliver notices in writing per the contract.
Coordinate with your closing team
In Georgia, closings often involve a title company or closing attorney, your lender, and the brokerage escrow holder. Engage each party quickly after acceptance. Early coordination helps prevent missed appraisal windows, escrow confusion, or last-minute underwriting surprises.
When to involve a Georgia attorney
Most inspection and repair negotiations are handled by agents and the parties. If you encounter ambiguous contract language, complex title issues, or large structural concerns, consult a Georgia real estate attorney. The earlier you bring in counsel for complicated matters, the smoother your path to closing can be.
A note for luxury and estate properties
High-value homes in Buckhead and nearby intown neighborhoods often involve complex systems and past renovations. Plan for expanded inspections, deeper permit review, and specialty contractors. A well-structured due diligence window paired with clear documentation can safeguard both your privacy and your negotiating leverage.
Final thought
In Atlanta, a well-managed due diligence period is your best tool for clarity and control. Know the difference between the due diligence fee and earnest money, prioritize inspections that match local risks, and keep every deadline front and center. For estate-scale properties and architecturally significant homes, a curated plan and precise communication can preserve value while reducing stress.
If you want a tailored plan for your purchase or sale in Buckhead or greater Atlanta, connect with Shanna Smith. Request a private consultation.
FAQs
What is the difference between earnest money and due diligence fee in Georgia?
- The due diligence fee is paid to the seller for the right to terminate during the due diligence period, while earnest money is escrowed and typically applies to closing funds with different refund rules.
How long is a typical due diligence period in Atlanta?
- Most contracts use 7 to 14 days, though highly competitive offers can shorten to 3 to 5 days and complex situations may extend to 21 days or more.
Can I get my earnest money back if I cancel during due diligence?
- If you terminate properly within the due diligence window as the contract permits, earnest money is usually refundable, but always follow your contract’s procedures and deadlines.
Which inspections are most important for Atlanta homes?
- A general home inspection and termite or WDO report are standard, with sewer scopes for older homes and specialists for foundation, roof, HVAC, or electrical as conditions suggest.
What are common closing timelines in Atlanta?
- Many financed transactions close in 30 to 60 days from acceptance, with appraisals typically completed within 7 to 21 days after ordering and financing contingencies around 21 to 30 days.
