How Long Is the Due Diligence Period in Georgia?

One of the most common questions we hear from both buyers and sellers in Georgia is: how long should the due diligence period be? The answer is not a fixed number, because the due diligence period is a negotiated term in every real estate transaction. But there are standard ranges, best practices, and strategic considerations that can help you make the right decision.

If you are not familiar with the concept, the due diligence period is the time after the contract is accepted when the buyer inspects the property, reviews the title, and confirms their financing. During this period, the buyer can terminate the contract for any reason and receive their earnest money back. The seller keeps the non-refundable due diligence fee as compensation for taking the property off the market.

What Is the Typical Due Diligence Period in Georgia?

The most common due diligence period in Georgia is 7 to 14 days. This range is standard because it gives the buyer enough time to complete a thorough home inspection, order and review the appraisal, conduct a title search, and finalize their financing. It is also short enough that the seller is not kept waiting too long to know whether the deal will go through.

Within that range, 10 days is probably the most common number. It strikes a balance between giving the buyer adequate time and giving the seller reasonable certainty. For a straightforward transaction on a well-maintained home in a standard market, 10 days is usually sufficient.

What is the due diligence fee? The buyer pays the seller a non-refundable fee in exchange for the right to conduct due diligence. The fee is typically a few hundred to a few thousand dollars, depending on the price of the home and the local market. For a deeper overview of the full due diligence process, see our detailed guide on what due diligence is in Georgia.

What Affects the Length of the Due Diligence Period?

Several factors influence how long the due diligence period should be. Understanding these factors will help you negotiate a period that makes sense for your situation.

Property Type and Condition

A newer home in excellent condition may only need a 7 day due diligence period. The inspections are straightforward, and the risk of significant issues is low. An older home, a historic property, or a home with known issues may need 14 days or more to allow for specialized inspections, such as sewer scopes, foundation evaluations, or environmental testing.

Inspection Complexity

Some properties require more than a standard home inspection. A home with a septic system needs a septic inspection. A home with a well needs water quality testing. A property with acreage may need a survey. Each additional inspection takes time to schedule and complete, which may require a longer due diligence period.

Buyer Experience

First-time buyers often need more time to navigate the due diligence process. They may not know which inspectors to call, what to look for during the inspection, or how to evaluate the findings. An experienced buyer who has been through the process before may be comfortable with a shorter period.

Market Conditions

In a competitive seller's market, buyers often shorten the due diligence period to make their offer more attractive. A buyer who offers a 5 day due diligence period is signaling confidence and giving the seller a fast decision. In a slower market, buyers may have more negotiating power to ask for a longer period.

How to Negotiate the Due Diligence Period

The due diligence period is a negotiated term in the purchase agreement, just like price and closing date. Both sides have reasons to prefer a specific length.

For sellers: A shorter due diligence period is almost always better. It means less time your home is tied up, and it puts pressure on the buyer to complete their inspections quickly. In a multiple-offer situation, a buyer offering a shorter due diligence period has a real advantage. Your agent can help you evaluate whether a buyer's proposed period is reasonable based on the property and the buyer's profile.

For buyers: You want enough time to complete all necessary inspections and feel confident in your decision. Do not agree to a period that is too short just to win the offer. If you cannot schedule an inspector within the period, you may be forced to make a decision without all the information you need. Your agent can help you determine what a realistic timeline looks like for your specific situation.

What Happens During the Due Diligence Period

Understanding what happens during the due diligence period will help you understand why the length matters. Here is what typically takes place.

• Home inspection. A licensed inspector examines the property's structure, systems, and components. The inspection takes 2 to 4 hours, and the report is typically delivered within 24 to 48 hours. This is the most time-sensitive step.
• Appraisal. The lender orders an appraisal to confirm the property's value. This is typically scheduled and completed within 5 to 7 days, though it can take longer in busy markets.
• Title review. The buyer's attorney or title company reviews the property's title for liens, encumbrances, or other issues. This can be done relatively quickly, typically within 3 to 5 days.
• Financing confirmation. The buyer works with their lender to finalize loan approval. This includes providing documentation, locking in the rate, and confirming the loan terms. Some of this work continues after the due diligence period.
• Additional inspections. Depending on the property, the buyer may also order termite inspections, radon testing, mold testing, sewer scope, or well and septic inspections. Each of these takes additional time to schedule.

What Happens If You Need More Time

Sometimes the due diligence period is not long enough. The inspection report comes back with issues that require a second opinion, or the appraisal is delayed, or the buyer simply needs more time to make a decision.

In these situations, the buyer can request an extension of the due diligence period. The seller is not obligated to grant it, but most sellers will agree to a reasonable extension, especially if the buyer has been acting in good faith and the delay is outside their control. The extension is typically documented as an amendment to the contract, and it may involve an additional due diligence fee.

If the seller refuses the extension, the buyer has a choice: terminate the contract and walk away, or waive the remaining due diligence and proceed with the purchase as-is. This is a high-pressure decision, which is why it is so important to negotiate a realistic due diligence period from the start.

How Georgia's Due Diligence Period Differs from Other States

Georgia's approach to due diligence is unique in several ways. In many states, the inspection period, appraisal period, and financing contingency are separate periods with their own timelines. In Georgia, everything is bundled into a single due diligence period.

In states like Texas, the option period is a separate, shorter period where the buyer pays for the right to terminate for any reason, and the inspection contingency is handled separately. In California, the inspection contingency and loan contingency are separate line items with their own deadlines. Georgia's bundled approach simplifies the contract but requires the buyer to accomplish everything within a single window.

Georgia is also an attorney-closing state, which means the attorney plays a role in the due diligence process by reviewing the title and coordinating with the lender. This adds an extra layer of coordination that some out-of-state buyers may not expect.

Team Haigh's Advice on Due Diligence Timing

Our advice is straightforward: negotiate a due diligence period that is realistic for the property and the transaction. Do not agree to a period that is too short just to win an offer. The few days you save on the front end are not worth the stress of a rushed decision on the back end.

For sellers, we recommend being reasonable about the due diligence period. A buyer who feels rushed is more likely to terminate or to request expensive repairs because they did not have time to properly evaluate the property. A fair due diligence period leads to a smoother transaction for everyone.

For buyers, we recommend scheduling your inspector as soon as the contract is accepted. The best inspectors book up quickly, and waiting even a day or two can mean losing your preferred inspector to another client. The sooner you get on their calendar, the more time you have to review the report and make your decision.