All About Due Diligence
What is the due diligence period?
The due diligence period in a residential purchase transaction is the period… in which… you practice… due diligence.
Was that helpful?
In reality, it’s the period in which the results of your practicing due diligence allow you to withdraw from the sales contract with no penalty. No matter the size of your earnest money deposit, the seller of the house is required to release the funds back to you, should you decide to cancel the transaction for any reason.
How long is due diligence?
Generally, the standard timeline is 7-10 days. As I never seem to stop saying: it’s a seller’s market in the ATL right now. Anything you can do to make your offer more attractive should be done. This may mean submitting an offer with a shorter due diligence period and knocking out everything you need to as quickly as possible.
What do I do during due diligence?
Two things: get your inspection and reflect on the decision you’re making. Everyone helping you with this transaction (including myself) stands to gain at least a thousand dollars from you completing the deal, so it sometimes goes without being noted that you really need to consider signing up for homeownership (and, possibly more importantly, debt ownership!).
But more tangibly, you need to get your inspector to the house ASAP. In fact, before the contract is ever accepted, if it looks like there are only a few hurdles to clear, then you can schedule the inspection during the tail end of the negotiation period.
When does due diligence start?
It starts the moment the contract is signed. The following day is Day 1.
When does due diligence end?
Midnight on the last day of the timeline.
Where do I find info on the due diligence in the sales contract?
Page one! Make note of the most current offer, as amended offers are added to the beginning of the contract. Sometimes a seller’s counteroffer will change the due diligence period, so keep an eye out.