You found a home you love in Alpharetta. Now the clock starts. The due diligence period is your short window to inspect, confirm details, and decide with confidence. It can save you from surprise costs and give you leverage if issues come up.
In this guide, you’ll learn how due diligence in Georgia works, what to inspect, typical timelines in Alpharetta, and smart negotiation moves. You’ll also get a simple checklist to keep you on track. Let’s dive in.
Georgia due diligence, in plain English
In many Georgia contracts, the due diligence period is a negotiated window where you can fully investigate the property. During this time, you can move forward, renegotiate, or terminate under the contract’s rules.
Your right to terminate during this period is usually broad, but you must follow the contract’s written notice requirements and deadlines. If you miss a deadline or give notice the wrong way, you may lose protections. The exact terms depend on the signed contract and any addenda.
Due diligence fee vs. earnest money
- Due diligence fee (DDF): A negotiated payment you make to the seller at ratification. It compensates the seller for taking the home off the market. It is commonly nonrefundable, but often credited at closing per contract terms.
- Earnest money: A separate deposit held in escrow. If you terminate properly during the due diligence period, earnest money is typically refundable under common Georgia practice, subject to the contract’s escrow language.
Always confirm how your specific contract handles refunds and credits. Forms from the Georgia Association of REALTORS are common, but your signed agreement controls.
Typical timelines in Alpharetta
Due diligence length is market driven. In competitive Alpharetta neighborhoods, buyers often offer shorter windows, such as 3 to 7 days, to stand out. In less competitive situations or new construction, 14 to 30 days is more common.
Here is a practical sequence you can adapt to your dates:
- Day 0: Contract ratified, DDF and earnest money arranged. Order inspections and request documents.
- Days 0–3: Complete core inspections, request HOA documents and seller disclosures, start title review and any survey.
- Days 3–10: Review reports, get contractor estimates, advance loan and appraisal steps, order specialists if needed.
- By deadline: Send written notice to proceed, request repairs or credits, ask for an extension, or terminate under the contract.
Deadlines are strict. Do not rely on verbal agreements or texts. Follow the delivery method in the contract and keep proof of notice.
What to inspect during due diligence
Core inspections
- General home inspection covering structure, roof, plumbing, electrical, and mechanical systems
- Wood-destroying insect and termite inspection
- HVAC service and duct inspection
- Roof evaluation
- Sewer scope for older homes or if the sewer lateral is your responsibility
- Septic or well testing if applicable
- Pool and spa inspection if present
- Mold, indoor air quality, or radon testing if desired
- Boundary or as-built survey review
Documents and records to review
- Title search for liens, easements, and clear ownership
- HOA governing documents, covenants, restrictions, fees, and meeting notes
- Seller disclosures and available permit history
- Any recorded plats or prior surveys
Common contingencies
- Financing contingency and loan approval timeline
- Appraisal contingency with remedies if value is low
- Title and survey conditions
- HOA review period
Even on an as-is contract, you can still inspect during due diligence. The seller may refuse repairs, so you must decide to accept, request a credit, renegotiate price, or terminate within your deadline.
Alpharetta factors to check
Alpharetta and North Fulton have a few local items to prioritize:
- Foundation and drainage: Expansive clay soils can lead to movement or grading issues. A structural review may be wise if you see cracks or uneven floors.
- Flood risk and stormwater: Check floodplain status for properties near creeks or streams. Flood insurance may apply in certain zones.
- Trees and roots: Large trees near the home can impact foundations and drainage. Some areas have local tree rules that may affect removals.
- HOA governance: Many neighborhoods use active HOAs. Review rules, architectural approvals, fees, and any known special assessments.
- Utilities: Confirm if the property is on public sewer and water or on septic or well, which affects inspections and maintenance.
- New construction: Review builder warranties, certificate of occupancy, and punch-list items.
- Scheduling: Alpharetta inspectors and specialists book quickly. Contact them immediately after ratification, especially if your window is 3 to 7 days.
Make the period work for you
Plan before you offer
- Decide your target due diligence length and due diligence fee based on market conditions and your risk tolerance.
- Line up inspectors and specialists in advance so you can book fast.
Act immediately after ratification
- Schedule the general inspection the same day or next day. Add a sewer scope or structural engineer if concerns exist.
- Request HOA documents, disclosures, and permits right away.
- Open title review and discuss survey needs with your closing team.
- Provide your lender with requested documents to keep financing on track.
Use findings for leverage
- Repairs vs. credits: Ask for repairs on safety, structural, major systems, or insurance-related items. For smaller items, consider a credit.
- Price changes: If an appraisal is low or serious defects appear, you can seek a price reduction.
- Extensions: If you need more time for a complex issue, request a written extension. The seller may ask for a concession in return.
- Termination: If issues are material and cannot be resolved, timely termination can protect your earnest money if allowed by your contract.
Understand tradeoffs
- Shorter windows and higher DDF can make your offer more appealing, but reduce your flexibility.
- Longer windows and smaller DDF give you more protection, but may be less attractive to the seller.
Document everything
- Use written notices exactly as the contract requires.
- Keep copies of emails, inspection reports, and proposals.
- Amend the contract in writing for any agreed repairs or credits.
Your due diligence checklist
First 48–72 hours
- Pay due diligence fee and earnest money per your contract
- Schedule general and termite inspections
- Order specialty inspections you anticipate, such as sewer scope, structural, pool, septic, or well
- Request HOA documents, recorded plat, seller disclosures, and permit history
- Open title review and request a preliminary report
- Confirm appraisal timing with your lender and submit needed documents
Mid period
- Review inspection reports and obtain contractor estimates
- Review appraisal results and financing status
- Prepare a written repair or credit request, or a termination notice if needed
- If more time is required, request a written extension and propose terms
By the due diligence deadline
- Deliver written termination if you plan to walk away
- Or deliver your repair or credit request and move forward toward closing if both sides agree
Final steps before closing
- Verify that agreed repairs are completed and documented
- Confirm clear title and owner’s title insurance commitment
- Schedule your final walkthrough
Common mistakes to avoid
- Waiting to schedule inspections and then running out of time
- Missing the written notice deadline or sending notice the wrong way
- Relying on verbal promises instead of written amendments
- Skipping key inspections such as sewer scope or structural review when signs suggest risk
Final thoughts
Your due diligence window is short, but you can make it powerful with planning and speed. Decide your strategy before you write the offer, book inspections right away, and put every notice in writing. If something big comes up, you have options to negotiate, extend, or terminate under your contract.
If you want help tailoring a plan to an Alpharetta home and neighborhood, connect with Heather Ann Edwards to schedule a free consultation.
FAQs
What is the due diligence period in Georgia home buying?
- A negotiated time after contract ratification when you can inspect, review documents, and decide to proceed, renegotiate, or terminate by sending proper written notice before the deadline.
What happens to my due diligence fee and earnest money if I terminate?
- The due diligence fee is commonly nonrefundable to the seller. Earnest money is typically refundable if you terminate properly during due diligence, subject to your contract’s escrow terms.
Can I still inspect if the contract says as-is?
- Yes. You can inspect during the due diligence period. The seller may decline repairs, so you can request credits, renegotiate, or terminate within your deadline.
What inspections should Alpharetta buyers prioritize?
- General, termite, HVAC, roof, and sewer scope are common. Consider structural reviews for clay soil movement, pool or septic checks if present, and flood risk review where relevant.
What if the appraisal comes in low during due diligence?
- Your options usually include a price reduction, paying the difference, or terminating if your appraisal contingency allows it. The exact remedy depends on your contract addenda.