Heard people talk about “due diligence” when you make an offer in Georgia and not quite sure what it means? You are not alone. Between fees, deadlines, and inspections, it can feel like a lot. This guide breaks it down for Marietta buyers so you know what to expect, how to protect your money, and which steps to take first. Let’s dive in.
Georgia due diligence, simply explained
In Georgia, due diligence is a negotiated window after your offer is accepted. During this period you schedule inspections, review documents, line up financing, and decide whether to move forward. It is a contract concept, not a single law.
Here is the key: during the due diligence period, you generally may terminate for any reason if you follow the contract rules and deadlines. What happens to your money depends on the agreement you signed, especially how the due diligence fee and the earnest money are written.
Earnest money vs. due diligence fee
Understanding the two buckets of money helps you stay confident and avoid surprises.
Earnest money
- Shows good faith and is usually held in escrow by the closing attorney or another agreed escrow holder.
- Is typically refundable to you if you terminate properly within the contract’s allowed windows, such as due diligence or other contingencies.
- Common amounts in Marietta range from about 1% to 3% of the price, though this varies by property and competition.
Due diligence fee
- Paid to the seller for taking the home off the market and giving you an unrestricted decision period.
- Is usually nonrefundable once paid. If you close, it is often credited to you at closing if your contract says so.
- Amounts are negotiated. In Marietta, this can be a few hundred to several thousand dollars depending on the market and seller preferences.
Always read the specific contract to confirm who holds the earnest money, who receives the due diligence fee, and how funds are released.
Typical timelines in Marietta
Your exact dates are negotiable, but here is a common rhythm for Cobb County purchases.
- Day 0: Contract is fully signed. Earnest money and any due diligence fee are due per the agreement.
- Days 0 to 3: You schedule inspections and confirm title, survey, and lender steps.
- Days 3 to 10: Most inspections happen. Buyers often choose a 7 to 14 day due diligence window. In more competitive situations, you may see 3 to 5 days.
- By the due diligence deadline: Decide to proceed, negotiate repairs or credits, or terminate per the contract.
- After due diligence: Financing, appraisal, title, and any HOA review continue on their own timelines. Conventional loans commonly close in about 30 to 45 days from contract. FHA and VA can take longer.
What to check during due diligence
You want a clear picture of the home and the path to closing. Prioritize the essentials early.
- Core inspections: General home inspection, termite and wood‑destroying organism report, sewer or septic scope if applicable, radon test, HVAC evaluation, roof review, chimney or pool checks as needed, and moisture or mold specialists if indicators are present.
- HOA or condo documents: Review covenants, bylaws, budgets, and rules. Many contracts include a separate review period that starts when documents are delivered.
- Survey and boundaries: Order a new survey or evaluate an existing one for easements or encroachments.
- Title and insurance: The closing attorney typically runs the title search and coordinates title insurance. Confirm any title exceptions and plan to resolve defects early.
- Appraisal and loan: Your lender orders the appraisal and guides you through underwriting. If the appraisal is low and you have an appraisal contingency, you will either renegotiate, bridge the gap with cash, or terminate.
Local closing customs in Cobb County
It helps to know the local flow so deadlines do not sneak up on you.
- Who holds funds: Earnest money often goes to the closing attorney’s escrow account if named in the contract. Get a receipt after you deliver it.
- Attorney closings: Closings are usually handled by a Georgia closing attorney who manages the title exam, recording, and settlement statements.
- Recording and taxes: Expect standard county recording fees and prorated property taxes at closing based on the county calendar.
- Insurance: Lenders require homeowner’s insurance. Flood insurance may be required for properties in a mapped flood zone.
Smart negotiation during due diligence
Inspections are information and leverage. Use them to make a clear, timely request.
- Prioritize safety, structure, and major systems.
- Ask for repairs, a credit, or a price adjustment with contractor quotes when helpful.
- Remember the seller is not obligated to fix everything. You will negotiate what is reasonable for this property and timeline.
- If the appraisal comes in low and you have that contingency, discuss price changes or cash options promptly so you do not miss a deadline.
Risks and red flags to avoid
A little planning helps you avoid costly surprises.
- Unclear contract language about where earnest money and the due diligence fee go.
- Very short due diligence periods that prevent meaningful inspections.
- Unpermitted additions or older system updates without documentation.
- Delays receiving HOA documents that compress your review time.
- Financing timelines that do not line up with inspection and appraisal milestones.
Your due diligence checklist
Use this working list to stay organized.
- Confirm where earnest money is held and get a written receipt.
- Pay the due diligence fee as required and note if it will be credited at closing.
- Schedule a general inspection immediately, then order termite, sewer or septic, radon, and any specialty inspections.
- Request HOA documents and review rules, budgets, and covenants.
- Order or review a survey and check for encroachments and easements.
- Deliver written repair or credit requests before your deadline.
- Keep your loan file active and respond to lender requests quickly.
- Ensure the title search is ordered and review any exceptions with the closing attorney.
- Decide to proceed, renegotiate, or terminate in writing before the due diligence deadline.
- If proceeding, confirm any due diligence fee credit on your closing statement and verify earnest money remains in escrow.
How a Marietta agent supports you
A local guide can keep the moving parts on track.
- Tracks every deadline so your protections stay intact.
- Recommends trusted local inspectors and contractors for fast quotes.
- Drafts clear repair or credit requests and negotiates firmly but fairly.
- Confirms earnest money delivery and escrow handling.
- Coordinates title, HOA, and survey review with the closing attorney.
- Aligns lender timing with your contract dates and appraisal needs.
- Shares local context on common Marietta home issues and neighborhood nuances.
Buying in Marietta should feel informed and steady, not rushed. With the right plan, you can use Georgia’s due diligence period to investigate the home, negotiate confidently, and move to closing with clarity. If you want a calm, local guide to help you structure your offer and manage every deadline, connect with Amber Stout for a friendly, no‑pressure chat.
FAQs
What does Georgia’s due diligence period allow a Marietta buyer to do?
- During the negotiated window, you can inspect, review documents, and decide whether to proceed. You may terminate within that period if you follow the contract’s rules and timelines.
If I terminate during Georgia’s due diligence, do I get my money back?
- Typically your earnest money is refundable if you terminate properly during due diligence, while the due diligence fee paid to the seller is usually nonrefundable. Your contract controls the outcome.
How long should my due diligence period be in Cobb County?
- Many buyers choose 7 to 14 days. In competitive offers, you may see 3 to 5 days. Pick a window that lets you complete key inspections and get reports back.
Who pays for repairs found during inspections in Marietta?
- Repairs or credits are negotiated. You can request fixes or a credit, and the seller can accept, counter, or decline. Only agreed items must be completed.
What happens if the appraisal comes in low on my Marietta home purchase?
- If you have an appraisal contingency, you can renegotiate price, bring extra cash, or terminate. Without that contingency, you may need to proceed or find another negotiated solution.
Who usually holds earnest money for Cobb County closings?
- The closing attorney named in the contract commonly holds earnest money in escrow. Confirm the payee, delivery method, and get a receipt.
