How Home Inspections Work During Georgia’s Due Diligence Period
If you research home inspections online, you’ll read a lot about the “inspection contingency.” That’s how buyers in many states protect themselves. In Georgia, the standard purchase contract works differently. Most buyers rely on a due diligence period instead, and understanding it is the key to timing your inspection correctly.
As an InterNACHI Certified Professional Inspector (CPI) and the owner of Sherlock Homes Inspection Co, LLC in the Atlanta market, I schedule nearly every inspection around a buyer’s due diligence deadline. Here’s how the process works and how to make the most of your window.
Every contract is different. Your agent and closing attorney can confirm the exact terms of yours.
What Is the Due Diligence Period?
The due diligence period is a negotiated number of days after the contract is accepted. During that window, the buyer can investigate the property, including the home inspection, and can terminate the contract for any reason or no reason by giving proper written notice before the deadline.
That flexibility is why it’s so valuable. You don’t need to prove the home has a defect to walk away. You simply need to act before time runs out.
The Due Diligence Fee
In exchange for that option, buyers often pay the seller a due diligence fee. In most Georgia contracts, this fee is non-refundable except in limited circumstances, but it’s typically credited toward the purchase price if you close. Your earnest money, by contrast, is generally returned if you terminate properly during the due diligence period.
The Most Important Rule: The Clock Doesn’t Stop
This is where buyers get into trouble. The due diligence period does not pause while you negotiate repairs. If you send the seller a repair request and they haven’t answered by the deadline, your right to terminate for any reason can expire.
If negotiations are running long, talk to your agent about extending the due diligence period in writing, or decide whether to terminate before it ends. Don’t let the deadline pass by default.
A Sample Inspection Timeline
Here’s how I recommend buyers use a typical 7 to 10 day due diligence period:
- Day 0 to 1: Book the inspection. Call your inspector the day your offer is accepted. Good inspectors book up quickly, especially in spring.
- Day 1 to 4: Inspect. Schedule the general home inspection along with any add-ons, such as radon testing, a sewer scope, a wood destroying organism inspection, mold testing, or a pool inspection. Radon tests need at least 48 hours, so start them early.
- Day 4 to 6: Review and get quotes. Read the full report, not just the summary. If the inspector recommends further evaluation by a roofer, electrician, or structural engineer, get those specialists out right away.
- Day 6 to 8: Negotiate. Your agent submits an amendment requesting repairs, credits, or a price reduction based on the findings.
- Before the deadline: Decide. Accept the seller’s response, extend the period in writing, or terminate. Leave yourself at least a day of cushion.
How Sherlock Homes Helps You Beat the Clock
Time is the scarcest resource in a due diligence period. That’s why my clients receive their report before I leave the property, not days later. You can start getting contractor quotes the same afternoon.
I also offer the most common add-on services in a single visit, including radon testing, wood destroying organism inspections, sewer scoping, mold testing, infrared scanning, and pool inspections. One appointment means fewer scheduling headaches and more time to make decisions.
What Happens If You Skip or Shorten Due Diligence?
Some buyers offer a very short due diligence period, or none at all, to compete in a multiple-offer situation. Without a due diligence period, you typically lose the ability to walk away based on what an inspection finds. I cover the trade-offs in Should You Waive the Home Inspection to Win the House?
The Bottom Line
In Georgia, your due diligence period is your inspection window, your negotiating window, and your exit door, all in one. Book early, inspect thoroughly, and keep a close eye on the deadline.
If you’re under contract in Cobb, Fulton, DeKalb, Douglas, Gwinnett, or Paulding County, contact me at david@sherlockhic.com or 770-490-7948. I’ll work with your timeline.
Quick Answers
How long is the due diligence period in Georgia?
There’s no fixed length. It’s negotiated in each contract, and periods of 7 to 14 days are common.
Do I get my due diligence fee back if I terminate?
Generally no. The due diligence fee is typically non-refundable, while earnest money is generally returned if you terminate properly within the period.
Does Georgia have an inspection contingency?
The standard Georgia contract relies on the due diligence period instead of a traditional inspection contingency. During that period, you can inspect and terminate for any reason.
