Buying in Marietta and hearing terms like due diligence, earnest money, and inspection windows? You are not alone. Georgia handles inspections and buyer protections a little differently than many other states, which can be confusing at first. In this guide, you will learn what due diligence means in Georgia contracts, how timelines and fees typically work in Cobb County, and exactly what to do during your window so you can protect your purchase. Let’s dive in.
What due diligence means in Georgia
In Georgia, due diligence is a negotiated time period in your purchase contract that lets you investigate the home after your offer is accepted. During this window, you can schedule inspections, review title and HOA documents, confirm insurance and financing, and decide whether to move forward.
You and the seller agree to the length of the due diligence period and any due diligence fee. The contract usually gives you the right to terminate within the period if you are not satisfied, as long as you follow the notice rules written into the contract.
Georgia vs. inspection contingencies elsewhere
Many states use a separate inspection contingency. In Georgia, the standard Georgia Association of REALTORS residential contract folds inspections and termination rights into the due diligence period instead of using a separate contingency form.
Practically, this means you often negotiate two things up front: the number of due diligence days and the due diligence fee. The fee is commonly non-refundable once paid, while earnest money is held in escrow and may be refundable if you properly terminate within your contract rights.
Marietta contract norms and timelines
Across metro Atlanta, including Marietta, due diligence periods commonly range from 3 to 14 days. You will often see 7 to 10 days in balanced conditions. In multiple-offer situations, sellers favor shorter periods and larger fees, and some buyers shorten or even waive due diligence to compete.
Many Marietta sellers use standard Georgia Association of REALTORS forms and include an “as-is” clause. That language means the seller is not obligated to make repairs unless otherwise agreed, so your inspections become the basis for repair requests or credits.
Due diligence fee vs. earnest money
- Earnest money deposit (EMD): You pay this to an escrow agent who holds it in an escrow account. The contract determines when it can be refunded, such as if you terminate properly within your due diligence period.
- Due diligence fee: You typically pay this directly to the seller. It compensates the seller for taking the home off the market while you investigate. It is often non-refundable after payment and is commonly credited to the seller at closing.
Always confirm in writing who receives the fee, whether it can ever be refunded, and how it applies at closing.
What to do during due diligence
Use your time wisely, especially if you have a short window. Here is a prioritized plan for a 10-day period. Adjust if your timeline is shorter or longer.
Day 0–2: Set the foundation
- Confirm your due diligence deadline and exact cutoff time in the signed contract.
- Pay the due diligence fee and make your earnest money deposit per the contract.
- Order a general home inspection with a local, experienced inspector.
- Order a termite or wood-destroying organism inspection. Termite activity is common in Georgia.
- If there is an HOA, request the full resale package, including rules, fees, financials, and meeting minutes.
- Send the contract to your lender and confirm underwriting timeline. Verify appraisal steps if you have a loan.
- Pull Cobb County property tax info and utility history.
Day 2–6: Review results and go deeper
- Review the home inspection and termite report as soon as they arrive.
- If issues appear, decide quickly whether to request repairs or credits, or to terminate within your window if allowed.
- Order specialist inspections if needed, such as roof, HVAC, plumbing, electrical, mold, radon, or a structural engineer for settlement concerns.
- Order or review a survey to confirm boundaries and spot encroachments or easements.
- Check flood risk using the FEMA Map Service Center and price flood insurance if needed.
- Verify easements, utilities, and any recorded restrictions via county records.
Day 7–10: Decide and document
- Send any repair or credit requests in writing before your deadline and in the form required by the contract.
- If you decide not to proceed, deliver termination in writing before the cutoff time and in the contract’s required manner.
- If repairs are agreed upon, capture them in a signed addendum with clear timelines.
- Confirm your loan file is complete and the appraisal is ordered or received.
- Secure homeowner’s insurance and, if needed, a flood insurance quote.
Key documents to review
- Home inspection and any specialist reports
- Termite or WDO report
- Title commitment and exceptions
- Survey or plat
- HOA documents and resale certificate if applicable
- Flood zone determination from FEMA
- Cobb County permit records and property tax history
- Insurance quotes and lender’s loan condition list
Local Marietta considerations
- Older homes in historic or established neighborhoods may have older wiring, plumbing materials, or lead-based paint. Prioritize electrical and environmental checks.
- Most homes tie into municipal sewer, but some larger lots may have septic systems. Confirm early and inspect septic if present.
- Many neighborhoods have HOAs. Review budgets, reserves, rules, rental caps, and any pending assessments before the deadline.
- Parts of the city may have tree conservation rules or historic district requirements that affect exterior changes. Verify with the City of Marietta planning office if you plan future projects.
Negotiation plays and seller responses
- Repair requests or credits: Many sellers make minor repairs or offer a credit toward closing costs rather than performing extensive work.
- As-is with adjustments: Some sellers decline repairs but may agree to a price reduction or a one-time credit.
- Shorter windows and higher fees: In competitive situations, sellers may counter with a shorter due diligence period or expect a larger fee.
- Repair caps: Some sellers agree to address items up to a set dollar amount.
Buyer risks and how to manage them
- Shortening or waiving due diligence: You risk missing hidden defects and losing leverage. If you need to compete, consider a shorter period with a strong plan for fast inspections rather than waiving protections.
- Missing the termination deadline: If you pass the deadline, the due diligence fee is often non-refundable, and you could be obligated to proceed. Put deadlines on your calendar and send notices in writing as your contract requires.
- Relying only on earnest money: Earnest money can become disputed if you miss contract rights or remove protections too early. Keep written records and stay in close communication with your lender and closing team.
- Waiving appraisal or loan contingencies: If the appraisal comes in low, you may need to bring cash to close. Consider credits, a price adjustment, or specific gap plans only after careful review.
Sample 10-day schedule
- Day 0: Confirm deadlines, pay fees, order inspections, request HOA docs, notify lender, and schedule appraisal.
- Days 1–3: Complete general and termite inspections. Begin specialist scheduling if needed.
- Days 4–6: Review reports, check permits and survey, evaluate flood zone, and gather insurance quotes.
- Day 7: Review title commitment and HOA documents. Prepare repair or credit requests if needed.
- Day 8–9: Send written requests or deliver termination within contract rules.
- Day 10: Due diligence ends. If proceeding, finalize loan next steps and plan for closing and final walkthrough.
Printer-friendly checklist
- Confirm all contract dates and your due diligence cutoff time
- Pay due diligence fee and make earnest money deposit
- Order general home inspection and termite inspection
- Order specialty inspections as indicated
- Request and review HOA resale package if applicable
- Order or review survey
- Pull Cobb County permit records and property tax history
- Check the property’s flood status using FEMA maps
- Review title commitment and exceptions
- Obtain homeowner’s and flood insurance quotes
- Get lender and appraisal updates; confirm loan conditions
- Send repair requests or termination in writing before the deadline
- Keep copies of all reports, receipts, addenda, and notices
Buying in Marietta gets easier when you have a clear plan for due diligence and a skilled negotiator on your side. From structuring the right timeline and fee to prioritizing inspections and securing credits, the goal is to protect your budget and your peace of mind.
If you want local guidance that is calm, clear, and results focused, connect with Leeza Byers. You will get a step-by-step game plan and confident negotiation support tailored to Cobb County homes.
FAQs
How long is a typical due diligence period in Marietta?
- In balanced market conditions, 7 to 10 days is common, though you may see 3 to 14 days depending on competitiveness and neighborhood.
Is the due diligence fee refundable in Georgia?
- It is often non-refundable once paid, unless your specific contract says otherwise, and it is commonly credited to the seller at closing.
What is the difference between due diligence fee and earnest money?
- Earnest money is held in escrow and may be refundable if you properly terminate, while the due diligence fee typically goes to the seller and is usually non-refundable.
Can I waive due diligence to win a multiple-offer situation?
- You can, but it increases risk; consider a shorter period with a rapid inspection plan instead of waiving protections entirely.
What inspections are most important for Marietta homes?
- A general home inspection, a termite or WDO inspection, and specialist checks as indicated, such as roof, HVAC, plumbing, electrical, radon, or structural.
What happens if I miss the due diligence deadline?
- You may lose the right to terminate under that clause, the due diligence fee is typically non-refundable, and you could be obligated to proceed under the contract.
