Buying in Inman Park and heard the phrase “due diligence” more times than you can count? You’re not alone. Georgia’s due diligence period is short, intense, and full of decisions that shape your purchase. In this guide, you’ll learn what the due diligence period is, how it works in Georgia, what to do in the first 10 days, and how to protect your leverage in a competitive intown market. Let’s dive in.
What due diligence means in Georgia
In Georgia, the due diligence period is a negotiated window in your purchase contract when you can fully investigate a home and decide whether to move forward. During this time, you complete inspections, review documents, confirm financing steps, and, if allowed by the contract, you can terminate.
Two payments are common, and they are different:
- Due diligence fee: Paid to the seller for the right to terminate during due diligence. This fee is usually non-refundable to you.
- Earnest money: Held in escrow and handled per the contract. If you terminate within the due diligence period, you typically receive earnest money back.
Always confirm the exact expiration date and time, the amount and recipient of the due diligence fee, how to deliver a termination notice, and what happens to funds if you cancel or default. Contract language controls the outcome.
Typical timelines and how they affect closing
Most resale contracts in metro Atlanta use a 7 to 14 day due diligence period. Ten days is common. In hot markets, you might see 3 to 5 days. For older or complex homes, 21 days or more is possible.
A common sequence looks like this:
- Day 0: Offer accepted. Contract starts.
- Day 0 to 3: Deliver earnest money per contract.
- Day 0 to 10: Inspections and document review if you negotiated a 10-day window.
- Day 0 to 21 or 30: Appraisal and loan underwriting, depending on your lender.
- Closing: Often 30 to 45 days from acceptance, or as negotiated.
If your appraisal lands after due diligence ends, your leverage shrinks unless you have an appraisal contingency or specific language addressing low appraisals. Align lender timing with your due diligence window from the start.
What to do during due diligence
Your goal is to discover material issues, estimate costs, and keep your options open. Start fast.
Schedule core inspections
- Book a general home inspection within the first 48 to 72 hours. Choose someone familiar with historic intown homes.
- Add a sewer scope early. Older Inman Park laterals often need evaluation and contractors book up.
- Order a termite/WDI inspection. It is standard in Georgia and helps document past treatment and any damage.
Add specialty inspections as needed
- Structural engineer if you see foundation, crawlspace, or sagging concerns.
- Roof and chimney evaluation if flagged by the general inspection.
- HVAC and electrical, especially if there is knob-and-tube or outdated wiring.
- Radon testing if you have concerns.
- Lead-based paint testing for homes built before 1978. Sellers should provide the federal disclosure and EPA pamphlet.
Review key documents
- Title commitment and preliminary search for easements, liens, and judgments.
- Current survey or order one to confirm boundaries and encroachments on tight intown lots.
- Seller disclosures and any HOA or condominium documents. Some Inman Park condos have HOAs; many single-family homes do not.
- City of Atlanta permit history and any certificate of occupancy records for additions or converted spaces.
Check city and county records
- Fulton County records for deeds, liens, taxes, and mortgages.
- City of Atlanta permit and zoning details, including any historic district requirements.
- FEMA flood maps and local floodplain status that could affect insurance and drainage planning.
Coordinate with your lender
- Deliver documents immediately and confirm the appraisal schedule.
- Make sure loan and appraisal timelines are compatible with your due diligence period.
Get estimates and decide
- Obtain contractor bids for major items like roof, foundation, sewer, electrical, or HVAC.
- Before the deadline, decide to request repairs, ask for a credit, accept as-is, or terminate. Put all requests and agreements in writing.
Inman Park specifics to watch
Inman Park’s historic character is part of the charm, and it adds a few extra checkpoints.
- Historic and exterior work: Exterior changes may require reviews or approvals through the City of Atlanta’s historic processes. If you plan exterior renovations, research requirements early.
- Foundations and drainage: Clay soils can cause settlement and moisture in crawlspaces. Review grading and water management.
- Electrical and HVAC: Older systems are common. Ask a qualified electrician to evaluate safety and insurance implications.
- Roofs and chimneys: Age and prior repairs vary widely. Get estimates for flagged items.
- Lead and asbestos: For pre-1978 homes, consider testing if you plan to renovate.
- Sewer laterals: Many intown homes benefit from a sewer scope to check for breaks or root intrusion.
- Permits and conversions: Confirm that additions, finished attics, or basement spaces were properly permitted.
- Neighborhood association vs. HOA: The neighborhood association is active, and some buildings have HOAs. Review any governing documents during due diligence.
- Flood and stormwater: Parts of intown Atlanta sit near floodplains or see localized flooding. Verify before you bind insurance.
Negotiating during and after due diligence
During due diligence, you can:
- Terminate per your contract’s termination clause if you have that right.
- Request repairs, request a credit, or proceed as-is. Document with an amendment.
- Ask to extend the period by mutual agreement. A seller may request a fee or concession.
Sellers may accept repairs, offer a credit, or refuse. In competitive intown markets, sellers often prefer higher due diligence fees and shorter windows. Keep that in mind when you structure your offer.
After due diligence ends, your ability to cancel without risking earnest money is limited. The due diligence fee is generally non-refundable, so treat it like the cost of an option. If an appraisal comes in low after the deadline and you do not have an appraisal contingency, your negotiation leverage is reduced.
Sample 10-day plan you can follow
- Day 0: Confirm the due diligence deadline, due diligence fee, and notice delivery method. Deliver earnest money per contract.
- Days 0 to 1: Book general inspection and sewer scope. Send documents to your lender. Request appraisal timing.
- Days 2 to 4: Review inspection results. Order specialty inspections as indicated. Pull disclosures, HOA docs, survey, and city permit history.
- Days 5 to 7: Get contractor estimates. Review the title commitment and survey.
- Days 8 to 9: Decide on repair requests, credits, or termination. Draft the amendment or termination notice.
- Day 10: Deliver any notice before the deadline. If proceeding, finalize agreed repairs or credits and move to loan conditions.
Smart offer strategies in a competitive market
- Right-size the due diligence period. Older historic homes often need a bit more time for specialty inspections.
- If competing, you can shorten the period instead of waiving inspections. Secure inspector availability before you write the offer.
- Consider a stronger price or due diligence fee to win, but balance the risk with must-have inspections.
- Align appraisals and lender milestones so major financing checkpoints do not lag far behind your due diligence window.
Final thoughts and next steps
The due diligence period can feel fast, but with a tight plan and local expertise, you can protect your investment and avoid surprises. Set your timeline on Day 0, book the right inspectors for historic homes, and keep all decisions and requests ahead of your deadline.
If you want a clear plan tailored to Inman Park and nearby intown neighborhoods, reach out to Makes Home Real Estate. We will help you structure timelines, line up inspectors, and negotiate with confidence.
FAQs
What is Georgia’s due diligence period in a home purchase?
- It is a negotiated window in your contract to inspect, review documents, align financing, and decide to proceed or terminate as allowed by the contract.
How do due diligence fee and earnest money differ in Georgia?
- The due diligence fee goes to the seller and is usually non-refundable. Earnest money is held in escrow and is typically refundable if you terminate within the due diligence period per the contract.
How long is a typical due diligence period in Atlanta?
- Many deals use 7 to 14 days, with 10 days common. Competitive situations can be shorter, and complex or historic homes may warrant a longer window.
What inspections should I prioritize for an Inman Park home?
- Start with a general inspection, then add a sewer scope, termite/WDI, and any specialty checks for structure, roof, chimney, HVAC, and electrical. Consider lead or asbestos testing for older homes.
Can I cancel for any reason during due diligence?
- Only if your contract grants an unrestricted right to terminate during the period, which is common when a due diligence fee is paid. Confirm the exact language and notice method.
What happens if the appraisal is low after due diligence ends?
- Your leverage is reduced unless the contract includes an appraisal contingency or specific remedies. Align lender timing to minimize this risk.
Who pays for inspections and tests in Georgia?
- Buyers typically pay for general and specialty inspections, surveys, and contractor estimates.
