Buying a home in Athens and hearing a lot about “due diligence”? You are not alone. This short window can make or break your purchase, and understanding how it works in Georgia helps you move with confidence. In this guide, you will learn what due diligence means here, how the fee and timeline work, exactly what to check in Athens, and a simple plan to keep everything on track. Let’s dive in.
What due diligence means in Georgia
In Georgia, due diligence is a contract term you and the seller negotiate, not a separate state program. Most buyers use standard Georgia REALTORS purchase contracts that include a due diligence period and a buyer-paid due diligence fee. You get time to inspect, review title, confirm financing, and decide whether to proceed. Sellers get assurance and compensation for taking the property off the market during that time.
To learn how these contract terms are commonly used, review the industry resources from Georgia REALTORS. For overall licensing and regulatory context in Georgia real estate, you can also consult the Georgia Real Estate Commission.
Due diligence fee vs. earnest money
These two items serve different purposes:
- Due diligence fee: You typically pay this directly to the seller at contract execution. In return, you have the exclusive right to inspect and decide during the due diligence period. The amount is negotiable and is usually credited to the seller at closing. It is typically nonrefundable if you cancel after the period ends, unless your contract says otherwise.
- Earnest money: This is a deposit held by a broker, escrow agent, or title company. Refund rules depend on your contract’s earnest money and contingency language.
How long and how much?
The due diligence period length and fee amount are both negotiable. Many buyers use 7 to 14 days, but you may need more time if the property is older, has a septic system, or needs specialty inspections. Fee amounts vary by price point and market conditions. In competitive situations, sellers often expect higher fees.
The end of the period is a decision point. You can move forward, renegotiate repairs or credits, or terminate within the period according to the contract. If financing issues arise later, your financing contingency language and timing determine your options on earnest money.
Your 10-day Athens checklist
Use this sample plan to stay organized. If you negotiated a different length, scale the tasks accordingly.
Day 0
- Deliver due diligence fee to the seller and post earnest money per the contract.
- Calendar all deadlines and notice requirements.
Days 0–2: Order inspections and title
- Book a general home inspection with a local, certified inspector. You can locate certified pros through the American Society of Home Inspectors.
- Add specialty inspections as needed: pest/termite, roof, foundation, chimney, pool, and HVAC performance. In older Athens homes, consider electrical and plumbing specialists.
- If the home was built before 1978, review the lead-based paint disclosures.
- If the home may have a septic system, schedule a full septic inspection and confirm county permit status.
- Order a radon test. The U.S. EPA recommends testing all homes.
- Open title, review the title search, and request an owner’s title insurance commitment. For basics on coverage and exceptions, see the American Land Title Association.
Days 3–6: Review findings and records
- Attend the inspection if you can and read the full report. Ask your inspector to flag health and safety items as well as major systems.
- Review the title commitment. Ask about liens, easements, encroachments, or restrictive covenants.
- Check zoning, building permits, and any code enforcement records with Athens-Clarke County (ACC). Confirm that additions were permitted and closed out.
- Verify whether the property is in a local historic district and whether exterior changes require review by the Historic Preservation Commission.
- Confirm flood zone status using the FEMA Flood Map Service Center. If in a higher-risk zone, lenders may require flood insurance.
Days 6–8: Price out repairs and align with lender
- Get contractor estimates for any major repair items found during inspection.
- Check with your lender on the appraisal schedule and underwriting items. Make sure timing lines up with your due diligence and financing contingencies.
- Decide whether to request repairs or a credit, or to proceed as-is.
Days 8–10: Decide and deliver notice
- Provide written notice per your contract: proceed, request repairs/credit, or terminate within the due diligence window.
- If proceeding, finalize loan conditions and schedule closing. If terminating, follow the notice procedures exactly to preserve any earnest money rights your contract provides.
Athens specifics to review
Athens homes come with unique local considerations. Keep these in mind during due diligence.
Older housing stock near UGA and in-town
Many in-town neighborhoods include early 20th-century homes. Common red flags include older wiring, knob-and-tube remnants, aging plumbing, and unpermitted additions. Ask your inspector to pay close attention to electrical panels, supply lines, and any visible DIY work.
Clay soils and foundations
Regional clay soils can contribute to foundation movement. Look for signs of settlement, moisture in crawlspaces, drainage issues, and clogged or undersized gutters. The University of Georgia Cooperative Extension offers helpful soil and housing resources that can inform your conversation with inspectors and contractors.
Floodplains and stormwater
Athens has creek corridors and low-lying areas. Use FEMA’s map to confirm flood zone and factor any required flood insurance into your budget. The ACC site lists stormwater and floodplain services if you need records or guidance on drainage changes.
Sewer vs. septic
Large parts of Athens are on ACC water and sewer, but some outlying properties use septic. Confirm the connection type with ACC utilities and get a septic system inspection if applicable. Ask the seller for recent utility bills to estimate your monthly costs.
Historic districts and design review
If the property is in a designated local historic district, exterior changes may need Historic Preservation Commission review. This can affect renovation plans and permit timelines. ACC’s planning and historic preservation pages are a helpful starting point on the ACC website.
Short-term rental rules
If you plan to operate a short-term rental, review current ACC rules and any HOA restrictions. Start with the ordinance and licensing information available through the ACC website.
University influence and rentals
Proximity to UGA shapes demand, rentability, parking, and traffic patterns. If you are purchasing near campus as an investor, review any local occupancy and rental licensing rules through ACC before you finalize your plan.
Risks and red flags
A careful due diligence period helps you spot issues early.
- Unpermitted work that could trigger insurance or appraisal concerns or require costly retroactive permits.
- Septic systems without permits or failing septic components that are expensive to replace.
- Floodplain status that requires flood insurance and affects long-term cost.
- Major structural or foundation repairs linked to regional soils and drainage.
- Open code violations or liens recorded against the property.
- A very short due diligence period that limits your ability to inspect.
Pro tips to stay on track
- Front-load inspections. Book inspectors and specialists on Day 0 to leave time for follow-ups.
- Use local pros. Local inspectors, surveyors, and title companies know ACC’s records and common Athens issues.
- Keep one calendar. Track due diligence, financing, and appraisal dates together so nothing slips.
- Review the title commitment early. Ask questions about easements, encroachments, or HOA covenants right away.
- Confirm insurance early. If the property is in a flood zone, obtain a quote while you are still in your decision window.
- Ask for clarity in writing. If contract clauses are unclear, consult your agent and consider an attorney for legal questions.
What happens at the end of due diligence
You have a few options when your clock runs out:
- Proceed to closing if inspections and title are satisfactory.
- Negotiate repairs or a credit if issues are found.
- Terminate within the period according to your contract terms. The seller typically keeps the due diligence fee. Earnest money treatment depends on your contract and any applicable contingencies.
Ready for a confident Athens purchase?
Due diligence is your opportunity to verify the condition, title, and fit of a home before you fully commit. With a clear plan, local resources, and disciplined timelines, you can make a smart, low-stress decision.
If you want a locally grounded guide through Athens due diligence, reach out to the Jarrett Martin Group. Start Your Home Search when you are ready and let our team keep your timeline, inspections, and negotiations on point from Day 0 to closing.
FAQs
What does “due diligence” mean in Georgia real estate?
- It is a negotiated contract period that gives you time to inspect, review title, confirm financing, and decide whether to proceed, often using standard forms referenced by Georgia REALTORS.
How is the due diligence fee different from earnest money in Georgia?
- The due diligence fee is typically paid to the seller for the right to inspect during the period and is usually nonrefundable, while earnest money is a deposit held in escrow and governed by separate contract provisions.
How long is a typical Athens due diligence period?
- Many buyers negotiate 7 to 14 days, but older homes, septic inspections, or complex properties may call for more time to complete inspections and records checks.
What inspections should Athens buyers prioritize during due diligence?
- A general home inspection, termite/WDO, roof, foundation/crawlspace, HVAC, radon testing per the EPA’s guidance, and septic inspection if applicable.
Where can I check zoning, permits, or historic district rules in Athens?
How do I confirm flood risk for a property in Athens?
Who handles title and closing in Georgia?
- Sellers often select the closing or title company unless otherwise negotiated. You should still review the title commitment early and consider an owner’s policy; see ALTA’s basics for context.
Are short-term rentals allowed in Athens-Clarke County?
- ACC has local rules and licensing requirements that you should review on the ACC website and confirm against any HOA restrictions.
