Navigating the Due Diligence Period in Georgia

May 17, 2022 | Home-Probe | Continuing Education, About Home-Probe

Atlanta, Georgia downtown city skylineIt’s no secret that the 2022 housing market in Atlanta is extremely competitive. Multiple sources show an approximate 20% increase in the median price of a home sold in metro Atlanta from the prior year.. A combination of low interest rates and low inventory is pushing prices up continuously. However, the Atlanta REALTORS® Association predicts that increasing inventory may give buyers a little more of an edge in the summer months.

"We're seeing offers with no due diligence, no contingency. A lot of cash offers, no appraisal. The market is very strong in Atlanta right now," said Joey Tucker, president of the Georgia Association of Realtors.

Due diligence is certainly one thing that is going by the wayside as buyers compete mercilessly for homes. In this post, we’ll cover what exactly due diligence is, why it’s important, and how Home-Probe can help you make the most of your due diligence period.

What is the due diligence period in Georgia?

The due diligence period is optional, but extremely worthwhile. During this period, you can assess the condition of both the home and its location. In today’s competitive market, it may seem like a good idea to take whatever means necessary to get an accepted offer. The due diligence period or inspection contingencies such as right to request repairs  is a safety net designed to help you avoid a money pit. Georgia is a buyer beware state, so understanding the condition of the home before committing to purchase is important. With a due diligence period, you can back out of the purchase and still get your earnest money returned back to you.

How long is the due diligence period in Georgia?

The Georgia due diligence period is negotiated between the buyer and seller. Traditionally they  lasted 10 to 14 business days, but we are seeing them as low as 1 to 3 days. Depending on the language of the contract, it can exclude federal holidays.

What is the difference between due diligence and the right to request repairs of defects?

One appealing option for those that are looking to waive due diligence is to instead include a “Property Sold with Right to Request Repairs Exhibit” (GAR F273). A common conception is that sellers prefer this compared to a full due diligence period because the buyer can only back out of the contract if there is a legitimate damage or repair. The theory is that this is a less risky option for sellers to accept.

A regular home inspection is completed, and the report is reviewed for any necessary repairs. The seller can then agree to complete the repairs or offer cash to cover them. One important thing to note with the GAR F273, your agent must include a special stipulation that states the full return of earnest money in the event that you and the seller cannot come to an agreement on the repairs.

What are 5 ways Home-Probe helps to speed up your due diligence so you can meet short timelines?

We understand that your home is one of the biggest investments in your life. Certainty in the quality of your home inspection is critical, especially when you’re under a due diligence period deadline. Here are just a few ways that we help speed up your timeline – without sacrificing quality.

home-probe inspector doing a home inspection

1. Hold an inspection time while you negotiate the contract

Your offer may be considered more competitive by a seller if you have a confirmed date and time for the home  inspection. Many home inspection companies will not allow you to book an appointment until your offer has been accepted. By then, their schedules are already full. But Home-Probe will reserve a date and time while you submit your offer. If you lose the offer, you can cancel the appointment with 24 hours notice. This means your home inspection will happen earlier in the due diligence period than if you waited to book the appointment.

2. Same day reporting

No more waiting around, we’ll have a report to you at 10pm the evening of the inspection.

3. Early radon test setup

Radon testing (recommended as a health and safety as well as property value consideration) requires 48 hours to comply with EPA protocol. In short due diligence periods, that means you won’t have results in time to make a decision. Home-Probe has created a flexible process where we can begin the Radon testing BEFORE the inspection, many times the same day your offer is accepted. This makes it easier to get the results within your decision making timeframe.

4. 3-day availability guaranteed

We guarantee that from the time you contact us, a certified home inspector will be at your property within 3-days.

5. Next day rush option

In the event you need your property inspected sooner than within three days, we offer a next day rush option – don’t worry, that doesn’t mean we’ll rush through your inspection.

Stay competitive while protecting your investment

The due diligence period is critical to helping protect your financial investment in your property. This extends beyond just a home inspection. This time period also offers the chance to learn more about the things around the home that are outside of your control, such as the neighborhood, nearby schools, any homeowner’s or community associations, and much more. The last thing you want is to sign the deed to a house that will cause problems for you down the road – financial, health, or otherwise. With Home-Probe, you don’t have to compromise. Our speed, efficiency, and coordination can ensure a smooth due diligence period that just might be what you need to close on your dream home in the current competitive Atlanta market. Schedule an inspection with us today.