Are you wondering what “due diligence” really means when you buy a home in Roswell? You are not alone. This short window can feel fast and intense, but it is your best chance to learn the truth about a property before you commit. In this guide, you will learn how Georgia due diligence works, what timelines to expect in Roswell, which inspections matter most, and how to negotiate smartly. Let’s dive in.
Georgia due diligence basics
In Georgia, most buyers use Georgia Association of REALTORS purchase forms or similar contracts. These set a negotiated Due Diligence Period, which starts when the contract is fully signed. During this period, you can inspect, investigate, and terminate the contract if needed, provided you follow the contract’s timelines and notice rules.
Two common payments show up right away. First is the Due Diligence Fee, typically paid directly to the seller when the contract is ratified. It is usually nonrefundable if you terminate during the Due Diligence Period, but it is often credited to you at closing. Second is Earnest Money, which is a separate deposit held by an escrow agent. Earnest money is generally refundable if you terminate properly within the Due Diligence Period, according to the contract terms.
The fee and the deposit serve different purposes. The fee compensates the seller for taking the home off the market while you investigate. The earnest money signals your intent to buy and is governed by the contract’s refund rules. Read your executed contract and confirm exact handling with your agent or attorney.
Roswell timelines to expect
Due diligence timelines in Roswell and North Atlanta vary with market conditions and property type. A common range is 7 to 10 days. In very competitive situations, you might see 2 to 5 days. For complex properties or new construction, 10 to 21 days is more typical.
Why timelines vary
Supply and demand drive the length. Low inventory and multiple offers often shrink the period. Older homes, renovated properties, homes with pools, or those near flood-prone areas can require more time. Your lender’s appraisal and underwriting run on their own schedule and may extend past due diligence. That does not replace your independent inspections during this period.
Schedule fast in 48–72 hours
The best practice is to schedule key inspections within the first 48 to 72 hours after ratification. Book the general home inspection and termite inspection right away. Add a sewer scope and radon test if the property suggests a need. If you expect specialized inspections, such as a structural engineer or HVAC specialist, plan ahead because those appointments can take longer to secure.
Inspections to prioritize
Core inspections
- General Home Inspection: A top-to-bottom look at visible systems and components, including roof, structure, electrical, plumbing, and HVAC. This report guides your next steps.
- Wood‑Destroying Organism (WDO/termite) Inspection: Common in Georgia and sometimes required by lenders for certain loans or locations.
- Sewer or Septic Inspection: A sewer scope for municipal sewer lines can reveal blockages or root intrusion. For homes on septic, order a septic inspection and necessary testing.
- Roof Inspection or Certification: Useful for older roofs or when recent replacement is claimed.
Secondary inspections
- Structural or Foundation Engineer: Order when you see cracks, settling, sloping floors, or water intrusion.
- HVAC, Electrical, or Plumbing Specialists: Schedule when systems are older or not performing well, or when the general inspector recommends further review.
- Pool Inspection: For properties with pools, assess structure, equipment, safety features, and leaks.
- Well Water Testing: For private wells, request bacteriological and chemical testing.
- Radon, Mold, or Environmental Testing: The EPA advises radon testing for all homes; consider mold testing if growth is suspected and environmental testing if history or location suggests risk.
Documents and legal checks
- Title Commitment Review: Ask the title company to identify liens, easements, or other exceptions. Review early.
- Plat or Survey: Confirm boundaries, easements, and any encroachments. Order a new survey if needed.
- Permit and Renovation History: Verify with Roswell and Fulton County records that major work was permitted and inspected.
- Flood Zone Review: Check FEMA and local floodplain maps. If the home is in a Special Flood Hazard Area, talk with your insurer about flood coverage.
- HOA Documents: Request covenants, budgets, rules, meeting minutes, and any pending assessments.
- Seller Disclosures: Use disclosures as a starting point, then verify with inspections.
Typical costs and timing
Budget for typical ranges that vary by home size and scope. A general home inspection often runs $300 to $600. A sewer scope is often $150 to $400. A termite inspection is often $75 to $200. Radon testing is often $100 to $200. Specialist inspections, such as structural, HVAC, or pool, can range from $300 to $1,000 or more. Ask vendors about report turnaround times so you can meet your contract deadline.
Negotiating after inspections
What to focus on
- Safety and code items: Electrical hazards, major structural issues, gas leaks, and active water intrusion.
- Habitability and system failures: Failing HVAC, major plumbing leaks, sewage or septic failures.
- Lender or insurance requirements: Significant roof issues, severe WDO damage, or drainage problems that affect insurability.
- Costly or long‑lead repairs: Foundation work, major roof replacement, or structural remediation.
- Budget-impact items: Systems near end-of-life or multiple windows with failure. Cosmetic items are usually lower priority.
Strategy and timing
Ask for repairs when safety, habitability, or insurability is at stake. Otherwise, consider a price credit or a buyer repair allowance at closing. Get contractor estimates before submitting requests. Clear, itemized costs make your case stronger. Submit all requests in writing and within your Due Diligence Period.
If you decide the home is not right, you can terminate within the Due Diligence Period according to your contract. In typical scenarios, you may forfeit the Due Diligence Fee, while earnest money is generally protected if you follow notice rules. Confirm your exact contract terms with your agent or attorney.
Roswell and Fulton County checks
Roswell’s mix of established neighborhoods and newer construction means permit history matters. Confirm that additions, finished basements, and major system replacements were permitted and passed final inspections. Unpermitted work is a common red flag and can affect insurance and resale.
Floodplain awareness is important along creeks and low-lying areas. Review FEMA and local maps to understand flood risk. If the property is in a Special Flood Hazard Area, your lender may require flood insurance and your insurer can quote premium impacts.
For HOA communities, request the resale packet early. Review covenants, budgets, architectural rules, and any pending special assessments. On title matters, look out for unpaid taxes, contractor liens, inherited estate issues, and utility easements. Verify school assignments through Fulton County Schools if boundaries are important to your plans.
Your due diligence checklist
Day 0: After ratification
- Deliver the Due Diligence Fee and Earnest Money per your contract.
- Order the general home inspection and termite inspection within 24 to 48 hours.
- Add a sewer scope, radon test, and any specialists the property suggests.
- Request HOA documents, seller disclosures, and any prior survey.
- Ask for permit records and receipts for major work.
- Contact the title company to confirm title commitment timing and known exceptions.
Days 2–7: Mid‑period
- Review inspection reports as they arrive and request contractor estimates for major items.
- Confirm appraisal scheduling with your lender and ask about any repair conditions that could affect your loan.
- Prepare written repair or credit requests if needed. If issues are minor, proceed toward closing.
End of period
- Finalize in writing any repairs, credits, or price changes and set timelines for completion.
- If you will terminate, follow the contract’s notice rules precisely before the deadline.
Beyond due diligence
- Complete appraisal and lender underwriting.
- Clear title exceptions and HOA requirements.
- Schedule your final walkthrough and confirm agreed repairs are complete.
Risks and protections
Common pitfalls include underestimating how long specialist inspections and contractor quotes take, misunderstanding which funds are refundable, and skipping permit checks on renovations. Do not accept a short Due Diligence Period without a plan to complete key inspections quickly.
On the protection side, homes built before 1978 require a lead-based paint disclosure, and buyers must receive the federal lead pamphlet and have the opportunity for lead testing. Georgia law prohibits fraudulent misrepresentation, but your inspections are your independent safeguard. Owner’s title insurance is widely encouraged to protect against certain title defects discovered after closing.
Ready to move forward?
Due diligence gives you clarity and leverage. With the right plan, you can confirm the home’s condition, negotiate fairly, or step away with confidence. If you want a local guide who can help you prioritize inspections, coordinate timing, and keep your contract on track, the Frye Team is here to help.
FAQs
What is the Due Diligence Period in Georgia?
- It is a negotiated window that starts when the contract is fully signed, during which you can inspect, investigate, and terminate the contract if you follow the timelines and notice rules in your agreement.
How do the Due Diligence Fee and Earnest Money differ?
- The Due Diligence Fee is usually paid to the seller at ratification and is typically nonrefundable if you terminate; earnest money is a separate deposit held in escrow and is generally refundable if you terminate properly within the period.
How long is due diligence in Roswell?
- A common range is 7–10 days, competitive situations can be 2–5 days, and complex or new-construction homes often need 10–21 days.
Which inspections should I order first?
- Schedule the general home and termite inspections immediately, then add a sewer scope, radon test, and any specialists based on the property’s age, systems, and condition.
What should I ask the seller to fix after inspections?
- Focus on safety, habitability, lender or insurance requirements, and major or long‑lead repairs; consider credits for other items and submit requests in writing before the deadline.