Have you heard people talk about Georgia’s “due diligence” period and wondered what it actually means for your Alpharetta home purchase? You are not alone. This short window can protect you, but only if you use it well and watch your deadlines. In this guide, you’ll learn what due diligence means in Georgia, how timelines typically work in Alpharetta, the inspections to prioritize, and how to negotiate repairs or credits with confidence. Let’s dive in.
What due diligence means in Georgia
In Georgia, due diligence is a negotiated period in your purchase contract. It gives you time to investigate the home, review documents, and decide if you want to move forward. During this time, you can terminate the contract for almost any reason, as long as you meet the deadline written in your agreement.
Two buyer payments are common. First is the due diligence fee, which is usually nonrefundable, paid to the seller at contract ratification. It compensates the seller for taking the property off the market. If you close, this fee is typically credited toward your purchase price. Second is the earnest money deposit, held by the closing attorney or escrow agent. If you terminate properly within your contract rights, earnest money is usually refundable.
Your contract lays out key dates and amounts. You will see a Due Diligence Date, the due diligence fee, earnest money and deposit timing, and any separate financing and appraisal contingency dates. All of these are negotiable. Make sure you and your agent track the exact language and deadlines in your signed contract.
The practical takeaway is simple. Your strongest protection to investigate and, if needed, cancel is before the due diligence deadline. After it passes, your options narrow and the risk of losing earnest money increases.
Alpharetta timelines and local norms
In Alpharetta and North Fulton, due diligence is often 7 to 15 days. Ten calendar days is a common middle ground. In a fast or competitive situation, sellers may push for 3 to 5 days or ask for a higher due diligence fee and larger earnest deposit.
Earnest money is usually due within 1 to 5 business days after both parties sign. Closing for financed purchases commonly takes 30 to 45 days in Metro Atlanta. Cash can close sooner if title and survey items are clear.
Plan for local factors. Many Alpharetta neighborhoods, including areas around Lake Windward, Crabapple, and near Avalon, have HOAs. Reviewing covenants, budgets, and pending assessments can take time. Homes near Big Creek or Johns Creek tributaries may need floodplain checks or an elevation certificate, and that can affect insurance and timing. The best move is to schedule major inspections the same day, or next business day, after ratification.
What to check during due diligence
Core inspections
- General home inspection to review structure, roof, HVAC, plumbing, and electrical.
- WDO and termite inspection. Subterranean termites are common in Georgia and treatment or repairs can be significant.
- Sewer or drain scope for older homes to catch root intrusion, collapsed lines, or blockages.
- Roof evaluation if age or condition is uncertain.
- HVAC, chimney, pool, and well or septic inspections when applicable.
If your inspector flags red flags like settlement or moisture issues, consider a structural engineer or other specialist for a deeper review.
Alpharetta-specific risks to watch
- Foundation and soils. Clay soils in the Piedmont can move and stress foundations. Watch for cracks, uneven floors, or bowed walls.
- Drainage and grading. Heavy rains can drive water to basements and crawlspaces. Inspect gutters, grading, and signs of moisture.
- Roof age and storm history. Weather can shorten roof life. Ask for roof age and seek evidence of repair or replacement.
- Pools and irrigation. These systems often need specialist evaluation and can be costly to repair.
- Past renovations. Confirm that major additions and renovations were permitted and finaled.
Financing, appraisal, and other contingencies
Your contract may include separate financing and appraisal timelines. If the appraisal comes in below the contract price, you can attempt to renegotiate, bring extra funds, or terminate based on the contract terms. Title and HOA review can also provide paths to ask for cures or, if allowed by your contract, terminate when issues cannot be resolved.
How negotiations work during due diligence
The sequence is predictable. You order inspections right away. As reports come in, you and your agent decide what to request: repairs, credits at closing, a price reduction, or no action at all. Your agent will submit a written request before the deadline. The seller can accept, reject, or counter.
If you reach an agreement, you will sign an amendment detailing repairs or concessions. If you are not satisfied and the seller will not agree to your requests, you can terminate before the due diligence date under the contract’s terms. After the deadline, your ability to cancel or demand repairs is limited.
Common outcomes include seller-completed repairs, a credit at closing in lieu of repairs, or a price reduction. For severe issues that affect safety or legality, buyers often choose to walk away if the problem cannot be resolved.
Title, survey, HOA, and closing checks
During due diligence, review the title commitment for liens, easements, encroachments, and restrictive covenants. If a recent survey is not available, consider ordering one to confirm boundaries, setbacks, and easements. This is especially helpful on lots with irregular shapes or mature landscaping near property lines.
If the property is in an HOA, obtain covenants, restrictions, financials, and any pending assessments. Make sure rules align with how you plan to use the property. If your contract includes a right to terminate based on HOA review, note that deadline and act within it.
Check tax status and any special assessments. For homes near streams or low areas, review FEMA flood maps and speak with your insurance provider about flood coverage and cost.
Sample 10-day plan for Alpharetta buyers
- Day 0: Ratify the contract, pay the due diligence fee, and submit earnest money per the agreement. Schedule general inspection, WDO, sewer scope, roof, and HVAC.
- Days 1 to 3: Complete the general inspection and specialty inspections. Keep your calendar open for access and follow-ups.
- Days 3 to 7: Review reports with your agent. If needed, order a structural engineer or other specialists.
- Days 7 to 9: Decide your requests or whether to terminate. Send a written repair or credit request to the seller.
- Day 10: Last day of due diligence. If no agreement, terminate by the deadline to preserve your rights. If moving forward, track financing, appraisal, and title milestones.
- After day 10: Confirm any seller repairs in writing, clear lender conditions, and finalize title items on the path to closing.
Alpharetta due diligence checklist
- Schedule your general inspection the same or next business day.
- Order WDO and termite inspection.
- Add sewer scope for older homes or if trees are near the line.
- Request roof and HVAC evaluations if age or function is unclear.
- If settlement signs appear, hire a structural engineer.
- Verify water and sewer provider and ask about any past service claims.
- Request HOA documents, covenants, budgets, and pending assessments.
- Review seller disclosures and recent tax history.
- Obtain or verify a current survey to confirm boundaries and easements.
- Review the title commitment and exceptions with the closing attorney or title company.
- Check FEMA flood maps and get a flood insurance quote if needed.
- Confirm permits for major renovations with the city or county.
Pro tips to stay on track
- Front-load your schedule. Book all inspections immediately after ratification.
- Line up specialists early. Have a short list for roof, foundation, pool, and sewer.
- Track every date. Put the due diligence, financing, and appraisal deadlines on your calendar.
- Keep requests clear and focused. Prioritize safety, systems, and structural items.
- Put everything in writing. Repairs, credits, and price changes must be documented and signed.
- Plan for insurance. If near a creek or low area, confirm flood insurance requirements and costs early.
- Be ready to move fast. In short due diligence periods, same-day decisions are common.
Ready to move forward with confidence?
Due diligence protects you, but only if you use the time wisely. With a well-planned inspection schedule, clear requests, and a steady hand at negotiation, you can move toward closing with confidence. If you want a seasoned local advisor to handle the details and keep your timeline on track, connect with Dawn Camarda for boutique, consultative buyer representation in Alpharetta and North Fulton.
FAQs
What is Georgia’s due diligence period for homebuyers?
- It is a negotiated window in your purchase contract that lets you investigate the home and, if needed, terminate by the due diligence deadline under the contract’s terms.
How long is a typical due diligence period in Alpharetta?
- Many contracts land between 7 and 15 days, with 10 days common; in competitive offers, sellers may seek 3 to 5 days.
What is the difference between a due diligence fee and earnest money?
- The due diligence fee is usually nonrefundable and paid to the seller at ratification, while earnest money goes into escrow and is typically refundable if you terminate within your contract rights.
Which inspections should Alpharetta buyers prioritize?
- A general home inspection and a WDO or termite inspection are top priorities, with sewer scope, roof, HVAC, pool, or structural reviews added as property age and condition suggest.
Can I negotiate repairs after the due diligence deadline has passed?
- Only if the seller agrees in writing; your ability to cancel or demand repairs is usually limited after the deadline.
How do HOA documents affect my ability to cancel a purchase?
- If your contract includes an HOA document review right, discovering restrictive rules or pending assessments may allow termination within the specified deadline.
What happens to my earnest money if I cancel during due diligence?
- In typical Georgia practice, earnest money is returned to the buyer when termination is done properly within the contract’s due diligence rights, subject to the agreement’s exact terms.
