Buying a home in Atlanta is exciting, but once you go under contract the clock starts. The due diligence period is your chance to investigate the property, confirm key details, and decide if you want to move forward. With the right plan, you can protect your investment, avoid surprises, and negotiate with confidence. This guide walks you through what due diligence means in Georgia, what to do in Atlanta during that window, and how to use it well. Let’s dive in.
What due diligence means in Georgia
In Georgia, the Due Diligence Period is a negotiated time window in your purchase agreement. During this period, you can investigate the property and terminate for any reason based on your findings. The length and terms are set in the contract you and the seller sign.
The due diligence window is separate from other terms in the contract, like earnest money and contingencies for appraisal or financing. Your rights after due diligence ends are usually limited to those specific contingencies or a seller breach, so it is important to understand the deadlines.
Due diligence fee vs. earnest money
- Due diligence fee: This is often a nonrefundable fee you pay the seller at contract acceptance. It compensates the seller for taking the home off the market. If you close, it is typically credited to your purchase price at closing.
- Earnest money: This is usually held by a closing or title company. If you end the contract within the due diligence period under your contract rights, your earnest money is typically refundable. If you default after due diligence ends, the seller may seek your earnest money as a remedy, depending on the contract.
During due diligence you may move ahead, negotiate repairs or credits, or terminate per your contract. After due diligence, your options to terminate narrow to the listed contingencies or a seller default.
What to do during due diligence
Use your due diligence period to complete inspections, confirm title and permits, review any association documents, and coordinate with your lender. Here is a practical checklist.
Priority inspections
- General home inspection: Book a qualified inspector to evaluate structure, roof, HVAC, plumbing, electrical, attic, and visible foundation or moisture issues.
- WDO and termite inspection: Common in Georgia and often required by lenders.
- Sewer scope or septic inspection: Many intown homes are on sewer, but confirm. A camera scope can flag root intrusion or pipe breaks.
- Radon test: A 48 to 72 hour test can reveal issues worth addressing.
- HVAC performance and moisture check: Atlanta humidity can create mold risk. If there are signs of moisture, consider a mold or moisture assessment.
- Roof and attic: If age or condition suggests it, get a specialist opinion or drone assessment.
- Structural or engineering evaluation: If you see foundation cracking, settlement, or clay soil movement, consult a structural engineer.
- Water supply: If a well is present, arrange testing. For all homes, check pressure and function.
Tip: Schedule the general inspection as soon as the contract is signed, ideally on day 1 or 2. Ask your inspector to flag any need for specialists so you can book them quickly.
Title, survey, and encumbrances
- Order a title commitment or preliminary report to check for easements, covenants, liens, or judgments.
- Confirm the seller will deliver marketable title and whether any special assessments or tax changes are pending.
- Review any existing survey. If there is no recent survey or if fences and accessory buildings sit near lot lines, consider an updated boundary or ALTA survey.
Permits and code compliance
- Review permit history for major renovations, additions, roof replacements, HVAC, electrical, or plumbing upgrades.
- For homes in the City of Atlanta, check city permit records. For properties in unincorporated Fulton County, check county permit records.
- If the home is in a historic district, confirm any exterior changes follow local preservation requirements.
HOA and condo documents
- Request the full HOA or condo package: CC&Rs, bylaws, budgets, reserve studies, and recent meeting minutes.
- Check for special assessments, parking rules, short term rental limits, and architectural review requirements.
Insurance and hazards
- Obtain homeowners insurance quotes early. Ask about underwriting limits that may apply to older roofs, electrical systems, or prior claims.
- Check whether the home is in a flood zone. Even outside mapped floodplains, localized flooding and stormwater issues can affect basements and crawlspaces.
Utilities, zoning, and municipal items
- Confirm who provides water, sewer, and power, and whether there are any outstanding utility liens.
- Verify zoning and allowed uses. Ask about nearby public projects or planned zoning changes.
Lender, appraisal, and contingencies
- Coordinate with your lender early. Order the appraisal in time to meet lender deadlines.
- Confirm which deadlines are tied to due diligence and which are separate, like financing or appraisal contingencies. Do not let the due diligence window expire before you complete critical inspections.
Timelines and Atlanta practice
The right due diligence length depends on market conditions, property type, and your risk tolerance.
Typical due diligence lengths
- Competitive offer: 3 to 7 days. Increases offer strength but compresses inspection time.
- Typical range: 7 to 14 days. Balances buyer needs with seller certainty.
- Complex or rehab: 14 to 21 days. Helpful for older homes that need multiple specialists or bids.
Shorter periods can win in multiple offer situations, but they also raise the risk of missed issues. Longer periods allow more investigation but may make your offer less competitive unless you offset with other terms.
Scheduling reality in Atlanta
- Home inspection and termite: Often within 1 to 3 days if you book fast.
- Sewer scope: Can be tight, so schedule immediately if needed.
- Structural engineer: May take several days to two weeks in busy seasons.
- Radon: 2 to 3 days for testing and report.
- Survey: One to three weeks, depending on surveyor schedule and lot complexity.
- Appraisal: Commonly 7 to 14 days after order, and it usually runs on a separate timeline from due diligence.
Sample 7 day plan
- Day 1: Ratify contract and schedule general inspection, WDO, and sewer scope.
- Day 2: Conduct general inspection.
- Days 3 to 5: Order and complete any specialist inspections or tests.
- Day 6: Review all reports and get contractor estimates if needed.
- Day 7: Submit repair or credit requests, evaluate seller response, and decide to proceed or terminate within your rights.
Cost expectations in Atlanta
- General home inspection: 350 to 650 dollars
- Sewer scope: 150 to 400 dollars
- WDO and termite: 50 to 200 dollars
- Radon test: 100 to 250 dollars
- Structural engineer: 500 to 1,500 dollars or higher for complex issues
- Roof specialist or drone: 150 to 400 dollars
- ALTA or boundary survey: 800 to 2,500 dollars
Actual costs vary by vendor, property size, and complexity, so get quotes early.
Negotiating after inspections
Inspection results can lead to several paths:
- Repairs: Ask the seller to correct safety, system, or moisture issues.
- Credits: Request a closing credit to offset repairs while keeping the closing date.
- Price reduction: Seek a price change based on repair scope or material findings.
- Termination: If findings are unacceptable, you may terminate within the due diligence window per your contract.
Seller responses vary. Some accept repair lists or credits, others prefer to sell as is, and some will negotiate price. In competitive intown neighborhoods, sellers may lean toward offers with shorter due diligence periods or higher due diligence fees. Weigh how much time you need to be confident against how strong you want your offer to appear.
When to bring in specialists or counsel
If you discover major structural movement, extensive unpermitted work, significant title problems, or environmental concerns, consult a structural engineer, an experienced real estate attorney, or other relevant specialists. If title encumbrances or disputed easements are involved, loop in the title attorney or closing agent right away.
Atlanta specific risks to check
Older housing and historic districts
Many intown neighborhoods feature older homes with character. It is common to find aging systems, outdated wiring or plumbing, and past renovations that may not have permits. If the property is in a historic district, exterior changes may require additional approvals. Confirm the status and rules during due diligence.
Clay soils, foundations, and drainage
Atlanta’s clay soils and tree canopy can affect foundations and surface drainage. Look for settlement signs, water intrusion, and yard grading issues, especially on sloped lots or near large trees. A structural opinion and drainage assessment can be worth the time.
Flooding and stormwater
Localized flooding can occur even outside mapped flood zones. Ask about any history of water in the basement or crawlspace. Confirm stormwater management features, like swales or drainage easements, and consider flood insurance options where appropriate.
Trees and root systems
Mature trees add value and beauty, but roots can impact sewer laterals, sidewalks, and foundations. Consider an arborist opinion if large trees are near the structure, and review any local tree preservation rules that could affect future work.
City of Atlanta vs. unincorporated Fulton
Permitting, utilities, and code processes differ by jurisdiction. Confirm whether the property sits within the City of Atlanta or unincorporated Fulton County. Then use the correct municipal records for permits and inspections.
Smart strategy tips for buyers
- Start fast: Schedule your general inspection on day 1 or 2. Ask for specialist referrals immediately after the first walkthrough.
- Protect your timeline: Keep a calendar of due diligence, appraisal, and financing deadlines. Do not allow key dates to pass without a decision.
- Validate the paper trail: Review title, survey, permits, and HOA documents early. Order a survey if boundaries matter.
- Price the punch list: Get contractor estimates for major items so your repair or credit requests are grounded in real numbers.
- Plan your leverage: In multiple offer situations, a shorter due diligence period or a higher due diligence fee can strengthen your offer, but only if you can still complete the right checks.
Work with a local guide
A focused plan during due diligence protects your budget and your peace of mind. You deserve a team that knows Atlanta’s older homes, neighborhood rules, and common pitfalls, and can coordinate inspections, title review, and negotiations with precision. If you want a calm, well organized process and strong advocacy, connect with Susan Powell and the Good Living Real Estate team.
FAQs
What is the due diligence period in Georgia contracts?
- It is a negotiated window in your purchase agreement that allows you to investigate the property and terminate for any reason within that period under the contract.
How do due diligence fees and earnest money differ in Atlanta?
- The due diligence fee is often nonrefundable and paid to the seller at acceptance, while earnest money is held in escrow and is typically refundable if you terminate within due diligence per your contract.
How long should my due diligence be in a competitive offer?
- In multiple offer situations, 3 to 7 days is common in Atlanta, but only choose that length if you can complete inspections quickly and make an informed decision.
Which inspections are most important for intown Atlanta homes?
- Start with a general home inspection, WDO and termite, and a sewer scope, then add radon, roof, HVAC, moisture or mold checks, and a structural engineer if there are signs of settlement.
What if the seller refuses repairs after inspections?
- You can request credits or a price adjustment, accept the home as is, or terminate within the due diligence period if the findings are not acceptable based on your contract rights.
Do I need a survey for an intown Atlanta lot?
- If there is no recent survey or if fences, driveways, or accessory structures sit near property lines, consider an updated boundary or ALTA survey to confirm lines and easements.
How do historic district rules affect my purchase?
- Historic designation can limit exterior changes and may require approvals, so confirm status and requirements during due diligence before planning renovations.
