Buying in Five Points can move fast. Between the age of many in-town homes and the competition near the University of Georgia, you want clarity and control once your offer is accepted. Georgia’s due diligence period is the tool that gives you both. In this guide, you’ll learn how it works, what fees and deadlines mean in practice, which inspections matter most in central Athens, and how to use the timeline to protect your purchase and still win the house. Let’s dive in.
Georgia due diligence basics
Georgia purchase contracts often include a negotiated due diligence period. During this window, you can inspect the home, verify records, finalize loan and appraisal planning, and decide whether to move forward or terminate.
Two key funds show up early in the process: the due diligence fee and earnest money. These serve different purposes. The due diligence fee compensates the seller for taking the home off the market and gives you the right to terminate for any reason within the period. Earnest money is held in escrow under the contract’s terms. If you terminate properly within the due diligence period, you usually forfeit the due diligence fee but keep your earnest money. If you miss the deadline or default later, you risk losing your earnest money.
In competitive Five Points scenarios, sellers may push for short windows or even no due diligence. You can still be competitive without giving up protection if you understand the levers you can adjust.
Fees, deposits, and deadlines
Due diligence fee explained
This is typically a non-refundable payment made to the seller at contract ratification. It is negotiated and may be credited toward your purchase price at closing if you proceed. In return, you get the unrestricted right to cancel within the due diligence period for any reason, as long as you give notice on time.
Earnest money and escrow
Earnest money is a separate deposit held by an escrow agent, such as a broker or title company. If you terminate properly within the due diligence window, the contract usually calls for your earnest money to be returned. If you default after the window closes, the seller may be entitled to the earnest money under the contract.
Notice and termination steps
Termination must follow the exact notice method the contract requires. Deliver written notice to the correct party before the deadline. If in doubt, send notice to both the seller and listing agent within the period and confirm receipt. Timelines are firm, so build in a buffer.
Inspections to prioritize in Five Points
Older in-town properties near campus deserve a thorough look. Plan your inspection mix around age, condition, and your renovation plans.
- General home inspection to check structure, roof, plumbing, electrical, and mechanicals.
- Wood-destroying insect inspection for termites or beetle activity. Lenders often require it.
- Sewer scope of the lateral line. Older clay or cast-iron pipes can have root intrusion or breaks.
- HVAC servicing and functional test to assess age and performance.
- Roof evaluation or certification if the roof’s remaining life is unclear.
- Chimney and fireplace inspection if present.
- Radon test with a 48-hour monitor. Radon risk varies and testing is recommended.
- Lead-based paint disclosure for pre-1978 homes, with optional testing if you plan renovations.
- Moisture and mold assessment if there are signs of leaks, crawlspace dampness, or musty odors.
- Specialty inspections as needed: foundation engineer, asbestos sampling before disturbance, pool inspection, or septic inspection if the home is not on municipal sewer.
Schedule the highest-value tests first. In Five Points, a general inspection plus a sewer scope is often the smartest starting combo. If time is tight, prioritize items with the biggest cost impacts, like roof, foundation, HVAC, termites, and sewer.
Local Athens factors to check
Historic district reviews
Portions of Five Points and nearby Milledge Avenue include historic or architecturally sensitive areas. Exterior changes such as windows, porches, and facades can require review or approval. If you are planning renovations, confirm rules early.
Sewer laterals and lines
Tree-lined streets and older pipes can lead to blockages or root intrusion. A sewer scope during diligence is a cost-effective way to avoid surprises.
Rentals and occupancy rules
Many homes near UGA are owner-occupied or rented to students. You should understand parking realities, seasonal activity like game days, and any local ordinances about rental registration, occupancy limits, or nuisance rules that apply.
Flood risk and maps
Flood risk varies across central Athens. Check parcel-level mapping to see if a property sits in a designated flood zone that could affect insurance.
Permits and utilities
Older homes often have updates completed at different times. Verify permits for major work and confirm utility meters and easements. Unpermitted electrical or structural changes can affect insurance and resale.
Strategy to win and protect yourself
Competing near campus
In multiple-offer situations, sellers value certainty and speed. You can offer a shorter due diligence period and a slightly higher due diligence fee to stand out, but only if your inspectors can meet the schedule. Pre-scheduling a general inspection and sewer scope for the first two to three days helps you keep leverage without added risk.
Using inspection results
Focus on health, safety, and big-ticket systems first. If inspections uncover material issues, you can request repairs, a credit, or a price adjustment. For larger items like a roof or sewer lateral, credits are often cleaner than seller-managed repairs on a short timeline.
Credits versus repairs
Credits let you control quality and timing after closing. Repairs completed by the seller can work, but you need clear scopes and receipts. Many Athens buyers prefer credits for big systems so they can hire their own contractors.
Step-by-step due diligence checklist
Before you make an offer
- Ask your agent what due diligence lengths and fees are typical in Five Points right now.
- Line up a general inspector, sewer scope provider, and WDI inspector in advance.
- Confirm you have quick access to funds for the due diligence fee and earnest money.
In the contract
- Negotiate a due diligence period that covers the inspections you need and list the deadlines clearly.
- Confirm who holds earnest money and how the due diligence fee will be paid and credited.
- Include financing and appraisal contingencies if you need those protections.
During the due diligence period
- Book inspections immediately and front-load high-impact tests.
- Review disclosures, tax history, deed restrictions, HOA documents if applicable, and permit records.
- If issues appear, submit written requests for repairs, credits, or termination before the deadline and follow the notice instructions precisely.
- If you choose to terminate, send written notice before the cutoff so your earnest money can be returned per the contract.
After the due diligence period
- If proceeding, get all agreed credits or repairs in writing and track completion.
- If appraisal or financing issues pop up, review your contract. Some contingencies may still apply, but terms vary.
Real-world examples
- Example A: Your inspector reports a roof near end of life and an aging A/C compressor. You request an 8,000 dollar credit for both items. The seller counters with a 4,000 dollar credit. You accept and move forward.
- Example B: A sewer scope finds root intrusion that requires replacing the lateral. You offer to proceed if the seller funds the full replacement or provides a significant credit. If not, you use your termination right within the due diligence window and recover earnest money per the contract.
- Example C: In a multiple-offer scenario near campus, you shorten due diligence to five days and increase the due diligence fee. You had your inspector and sewer scope scheduled for day one, so you still complete key checks in time.
Common mistakes to avoid
- Waiting to schedule inspectors. In Five Points, early slots go fast.
- Ignoring the contract’s notice requirements. Termination must be in writing and on time.
- Skipping the sewer scope on an older home. It is a frequent, high-cost surprise.
- Overlooking separate contingencies. Financing and appraisal protections work independently from due diligence if they are included.
Work with a local guide
A strong due diligence game plan helps you write a competitive offer without blind spots. If you want help structuring timelines, lining up Athens-area inspectors, and negotiating repairs or credits that match the true condition of the home, lean on a local team that handles these details every week. Connect with Ellen McLemore Real Estate for calm, clear guidance through your Five Points purchase.
FAQs
In Georgia, is the due diligence fee refundable?
- It is typically non-refundable to the seller, even if you terminate on time; confirm the exact contract terms.
During Georgia due diligence, can I cancel for any reason?
- Yes, you generally have the unrestricted right to terminate within the agreed period if you deliver timely written notice per the contract.
In Athens, will I get earnest money back if I terminate on time?
- In most standard contracts, earnest money is returned if you properly terminate during due diligence; check the escrow and notice clauses.
For Five Points homes, which inspection offers best value?
- A full general inspection plus a sewer scope is often the highest-value combo for older in-town properties.
How long should a due diligence period be in Five Points?
- It is negotiated. In competitive situations near campus, windows can be as short as 3 to 7 days, so plan inspectors in advance.
What happens if financing fails after due diligence in Georgia?
- Financing and appraisal contingencies are separate. If included, they may protect you after due diligence; review your contract for timelines and requirements.
