Heard people talk about “due diligence” and not sure how it really works in Georgia? You are not alone. If you are buying in Marietta or anywhere in Cobb County, understanding this period can protect your money and help you make confident decisions. In this guide, you will learn what due diligence means in Georgia, how fees and earnest money work, what to inspect in Marietta, how long to ask for, and how to handle negotiations. Let’s dive in.
Georgia due diligence, explained
In Georgia, the due diligence period is a negotiated window in your purchase contract when you can investigate the property and decide whether to move forward. During this time, you can terminate for any reason by giving proper written notice before the deadline. Once the period ends, your broad termination rights usually end too.
Most Metro Atlanta contracts use Georgia REALTORS forms. The contract language controls your rights and deadlines, so always follow the exact wording in your signed agreement. There is no statewide standard for how long due diligence lasts or how much you pay for it. Those are business terms you negotiate with the seller.
Due diligence fee vs. earnest money
Georgia uses two common payments that work very differently:
Due Diligence Fee. You typically pay this directly to the seller for the right to terminate during the due diligence period. It is generally non-refundable if you cancel, but it is commonly credited to you at closing if the sale completes.
Earnest Money. This is a good-faith deposit held in escrow by a broker or closing attorney. If you terminate properly within the due diligence period, your earnest money is typically returned. If you try to cancel after the due diligence deadline or breach the contract, your earnest money may be at risk under the contract’s terms.
Keep these two payments separate in your mind. They have different rules, different timelines, and different outcomes.
How long should your period be in Marietta?
There is no single “right” length. Local market conditions and the property itself drive what is reasonable.
Competitive offers: about 3 to 7 days.
Typical market pace: about 7 to 14 days.
Complex or older properties: 14 to 21 days or more.
Older homes near downtown Marietta often need extra time for specialty inspections, permit checks, or a sewer scope. Newer subdivision homes in East or West Cobb may fit into a shorter window if vendors are available. Your agent can advise what is winning in current Marietta negotiations and help set a length that fits your needs and the seller’s expectations.
What to do during due diligence
Your goal is to learn everything material about the property and your obligations before your termination rights expire. Prioritize scheduling on day one, especially for short periods.
Priority inspections for Marietta buyers
General home inspection that covers structure, electrical, plumbing, roof, and HVAC.
Wood-destroying organism inspection. Georgia’s climate supports termite activity, so this check is common and sometimes required by lenders.
Roof evaluation, especially for older roofs or recent storm exposure.
HVAC service review and chimney or fireplace inspection where applicable.
Sewer scope for older properties or if there are past backup concerns.
Radon test if you are purchasing a home with a finished basement or want extra peace of mind.
Moisture and mold assessment if there are signs of humidity or past leaks.
Septic inspection and permit review if the home is not on public sewer.
Specialty inspections as indicated by your general inspector, such as a structural engineer, pool professional, or testing for older-home materials.
Documents and records to review
Title commitment and exceptions. Look at easements, restrictions, liens, and tax status.
Survey or plat. Confirm boundaries, easements, and potential encroachments. Consider ordering a current survey if none is provided.
Permit history. Check Cobb County and, if inside city limits, the City of Marietta for prior permits, unpermitted additions, or open permits.
Flood status. Verify whether the property lies in a FEMA special flood hazard area. Flood insurance requirements affect costs and lending.
HOA documents if applicable. Review governing documents, financials, rental rules, and any pending or recent assessments.
Tax and assessment records through Cobb County for current and prior assessments and the legal description.
Money flows and negotiation outcomes
After you complete inspections and reviews, you typically have four paths:
Proceed as-is and move toward closing.
Negotiate repairs or a seller credit. In Marietta, many buyers prefer a closing credit so they can control the work after closing.
Ask the seller to complete specific repairs before closing. The seller may agree, counter, or decline.
Terminate within the due diligence period. In most cases, the seller keeps the due diligence fee, and your earnest money is returned if you delivered notice correctly and on time.
Keep all repair requests and responses in writing using the forms your contract calls for. Follow the deadlines closely so your negotiating leverage and protections remain intact.
Strategies for first-time and move-up buyers
First-time, budget-focused buyers
Aim for 10 to 14 days when possible so you can complete all inspections and review permits without rushing.
Offer a reasonable due diligence fee that reflects your need for time, not an inflated number.
Prioritize a general inspection, termite inspection, and a sewer scope where age or history points to risk.
Move-up buyers seeking to win in competition
Consider a shorter period, such as 5 to 7 days, paired with strong scheduling on day one.
Use a larger due diligence fee or higher earnest money to signal commitment, balanced against the risk you accept with less time.
If the property is older or complex, keep enough time for specialty inspections even if it means strengthening other parts of your offer.
Tradeoffs are real. A short due diligence period and higher fee can make your offer more attractive, but it gives you less time to find problems. A longer period gives you more protection but may be less appealing to the seller.
Timeline templates you can use
Fast 3 to 5 day period
Day 0: Contract binding. Pay due diligence fee and earnest money. Book general inspector, termite, and any critical specialists immediately.
Day 1: General inspection and termite inspection. Add sewer scope if vendor is available.
Day 2: Bring in roof and HVAC vendors for estimates based on inspection findings.
Day 3: Decide on repair requests or prepare termination. Deliver written notice or inspection response before the deadline.
Standard 7 to 10 day period
Day 0: Ratify contract. Order title work and request HOA documents, seller disclosures, and any available survey.
Days 1 to 3: General inspection, termite, sewer scope, and start a radon test if desired.
Days 4 to 6: Review reports, get contractor estimates, review permit history and title exceptions.
By Day 7 to 10: Submit your inspection response or written termination if needed.
Extended 14+ day period
Use the standard flow and add time for a structural engineer, septic evaluation, or permit clearances as needed.
Keep your lender engaged so financing timelines stay aligned.
How to terminate correctly if needed
Confirm your deadline. Note the exact date and time your due diligence period ends.
Prepare written notice in the form your contract requires. The GAR forms specify acceptable delivery methods.
Deliver notice to the correct party by the permitted method and keep proof of delivery.
Notify the escrow holder if needed so they can process any earnest money release according to the contract.
If you are unsure about notice requirements, ask your agent to confirm the delivery steps under your specific contract. Timely delivery is critical to protect your earnest money.
Communication and documentation best practices
Follow your contract’s instructions for written notices and delivery.
Keep inspection reports, estimates, and emails organized and time-stamped.
Put all agreed repairs, credits, or price changes in writing using the proper addenda.
Track every due date. Put calendar reminders one business day before each deadline.
Marietta-specific factors to watch
A mix of historic and newer homes. Older properties near the Marietta Square may raise issues like older wiring, lead-based paint in pre-1978 homes, older plumbing, or unpermitted additions.
Termites and other wood-destroying organisms. The local climate makes a termite inspection a smart standard step and sometimes a lender requirement.
Flooding and drainage. Certain neighborhoods have flood zones or surface drainage challenges. Check FEMA maps and ask inspectors to look for grading and foundation moisture concerns.
Historic and HOA rules. If a home sits in a historic district or a covenant-controlled neighborhood, review rules and architectural guidelines early in your period.
Utilities and service checks. Confirm sewer versus septic, plus any City of Marietta or Cobb County service transfers you will need at closing.
The bottom line for Marietta buyers
Your due diligence period is your best tool to protect your budget and your peace of mind. Set a length that matches market conditions and the home’s complexity, schedule inspections immediately, and keep every step documented. With a clear plan, you can negotiate confidently or walk away on time if the home is not the right fit.
If you want a local advocate to run this process with concierge-level detail, reach out to Leanne Allen. You will get a clear plan, strong scheduling, and guidance grounded in Marietta market experience.
FAQs
What is Georgia’s due diligence period in a home purchase?
It is a negotiated time window in your contract when you can investigate the property and terminate for any reason by giving proper written notice before the deadline.
How is the due diligence fee different from earnest money in Georgia?
The due diligence fee is paid to the seller for the right to terminate and is generally non-refundable if you cancel, while earnest money is held in escrow and is typically returned if you terminate properly within the period.
Who keeps the due diligence fee if I cancel during the period?
In most cases the seller keeps it, and you do not get it back, but it is often credited to you at closing if you complete the purchase.
What inspections are most important for Marietta homes?
A general home inspection, termite inspection, roof and HVAC evaluations, and a sewer scope for older systems are common priorities, with radon or moisture testing as needed.
How long should due diligence be for an older downtown Marietta home?
Plan for about 10 to 14 days or more to allow for specialty inspections and permit checks, depending on current vendor availability and market conditions.
What can I ask the seller to do after inspections in Marietta?
You can request repairs, a seller credit at closing, or a price reduction, but the seller can negotiate terms or decline your requests.
How do I terminate correctly under a Georgia contract?
Deliver written notice in the form and by the method your contract allows, before the due diligence deadline, and keep proof of delivery for your records.
Does the due diligence fee apply to my costs if I close?
It commonly applies as a credit toward your purchase price or closing costs when you complete the transaction, as outlined in your contract.