Most sellers treat the moment their offer is accepted as the finish line. It isn't. A signed Georgia purchase contract binds you right away, yet for its first stretch it barely binds your buyer at all, and that lopsided arrangement is exactly what trips up people selling for the first time.
This article breaks down how that gap works in Metro Atlanta, the difference between two payments that sound interchangeable but protect you very differently, what a backup offer can do for you, and what should still be on your radar once inspections are behind you and closing day gets closer.
What Is the Due Diligence Period, and Why Can Your Buyer Still Walk Away?
The due diligence period is a set number of days, written into almost every standard Georgia purchase agreement, during which the buyer gets to investigate the property. Around Metro Atlanta, 7 to 14 days is the usual range. Inspections happen here, along with any other digging the buyer wants to do.
Sellers tend to assume a buyer needs a problem to cancel. During due diligence, no reason is required at all. A change of heart after a second visit carries the same weight as a failed inspection, and in either case the buyer walks away with their earnest money refunded in full.
From the buyer's side, this makes sense. Few purchases are bigger than a home, and the period exists specifically so they can back out cleanly if something feels wrong. Where it gets unfair is the information gap: buyers know about this protection, while most sellers only learn what it means for them after a buyer uses it.
Typical due diligence period on a Metro Atlanta purchase contract
Typical timeline from signed contract to closing day
What Does the Due Diligence Window Actually Cost a Seller?
The real cost is lost time. Once you're under contract, the usual move is to cancel showings and let other interested buyers know the house is spoken for. If your buyer then terminates a week and a half in, with nothing more specific than a change of heart, all of that activity has to be restarted from scratch.
And you restart at a disadvantage. Two weeks of momentum are gone, and a listing that comes back from a failed contract invites questions from buyers about what went wrong with it.
So for those days your home is effectively off the market with nothing guaranteed in return. You're not showing it, you're not entertaining other offers, and you're depending on a smooth inspection and a buyer who stays comfortable. Due diligence isn't the only thing that can sink a sale, either. Financing trouble and contingencies are covered in the top reasons home sales fall through, and if it does happen to you, here's what to do if a buyer backs out.
Is Earnest Money the Same Thing as a Due Diligence Fee?
They're two different payments with two different jobs. Mixing them up is how sellers end up believing they're covered during due diligence when they have no coverage at all.
Earnest Money: Held in Escrow, Refundable During Due Diligence
This is the deposit a buyer puts down when the contract is signed. It doesn't go to you; a title company or closing attorney holds it in escrow. Typical Metro Atlanta contracts set it somewhere around 1% to 3% of the price, which works out to $4,000 to $12,000 on a $400,000 house.
Typical earnest money deposit as a share of the purchase price
Earnest money held in escrow on a $400,000 home
None of that money is at risk for the buyer while due diligence is open. Terminate inside the window and every dollar is refunded, penalty-free. A deposit that size looks like it ought to protect you, which is exactly why so many sellers are caught off guard when it doesn't.
The Due Diligence Fee: Paid to You, and Yours to Keep
This one works the other way around. It's typically smaller, often a few hundred dollars up to a couple thousand depending on the deal, and it's paid straight to you rather than into escrow. Once it's paid, you keep it no matter how the deal ends. It exists to compensate you for pulling the house off the market while the buyer is free to leave, which makes it the one thing in the contract that actually pays you for waiting.
How Do You Get a Due Diligence Fee Into Your Contract?
You have to ask for it. Nothing in the process adds a fee automatically, and in plenty of markets it isn't customary, so it only lands in the contract if you or your agent raise it during negotiations, before anything is signed.
That's where many sellers miss out. They don't know the option exists, so the riskiest part of the sale passes with nothing paid to them, and they realize it only after the chance to negotiate is gone.
Market conditions affect your odds as well. When the market leans toward buyers, getting one to agree to a fee gets noticeably harder.
Put one question to your agent before any offer is signed: is a due diligence fee included, and if it isn't, what's the reason? The answer decides whether you wait out the inspection window empty-handed or get compensated for the risk you're holding.
Can You Accept a Backup Offer While You're Under Contract?
You can, within limits. Your primary contract comes first: you can't drop that buyer because a better offer showed up, and an attempt to wouldn't hold up. What you can do is keep a second buyer waiting in line behind the first.
Your agent puts the backup offer in writing and documents it formally. If the first contract falls apart, the backup buyer is ready to step in immediately, and you skip relisting and waiting on new showings.
Whether that's worth pursuing depends on local conditions. Right now, Cobb County has 3.9 months of supply and Cherokee County has 4.2.
Housing supply in Cobb County
Housing supply in Cherokee County
Months of supply is a rough gauge of how much competition sellers face. When it's low, a buyer backing out usually isn't a disaster, since fewer homes are competing for attention and interested buyers are still active. As it climbs, replacing a buyer can take longer and each added week on the market hurts more, so a backup lined up behind your contract becomes more valuable. For more on where our area sits, see whether Cobb and Cherokee County are a buyer's or seller's market.
What Changes Once the Due Diligence Period Ends?
Leverage shifts toward you. After due diligence expires, a buyer can only walk away with their earnest money if the contract gives them a legitimate reason to. Without one, the deposit is on the line, and that risk is why terminations become rare past this point.
The appraisal usually lands around now, and a low one opens up a separate set of problems and choices. Some are well known, like renegotiating the price or having the buyer bring extra cash to cover the gap. Others depend on how your contract is written, and plenty of sellers have never heard of them. I cover all of it in what happens when an appraisal comes in low.
What Should You Do Between Due Diligence and Closing Day?
A typical contract takes 30 to 45 days from signing to closing, and financing eats up the biggest share of that time. Before a closing date can be set, the lender has to order the appraisal, work through underwriting conditions and give final approval. Title work and the final walkthrough round out the list. Here's a step-by-step look at what actually happens between contract and closing.
Treat the final walkthrough as a checkpoint you have to pass. The buyer is verifying that the house matches what they agreed to purchase, so every repair and promise from the negotiation should be finished and easy to confirm by then.
Until the keys change hands, the house is still yours to maintain. Mow the yard, leave the utilities connected and keep it presentable, so it looks the way it did when your buyer first decided on it. Sales have fallen apart at the closing table over six weeks of neglect, when the buyer walked in and the home no longer matched what they remembered.
Frequently Asked Questions
How long is the due diligence period in Georgia?
In Metro Atlanta, the due diligence period typically runs 7 to 14 days. It's built into nearly every standard Georgia purchase contract, and the exact length is spelled out in the contract itself.
Can a buyer back out during due diligence and get their earnest money back?
Yes. During the due diligence period, a buyer can terminate for any reason, not just a problem found at inspection, and their earnest money is refunded in full with no penalty.
Who receives the due diligence fee, and is it refundable?
The due diligence fee is paid directly to the seller and is non-refundable, even if the buyer walks away. It isn't automatic, though. It has to be negotiated into the contract before it's signed.
Can I accept another offer while my house is under contract?
You can't drop your current buyer for a better offer, but you can accept a backup offer. Your agent documents it in writing so that if the first buyer terminates, the backup buyer is ready to step in right away.
What happens if a buyer walks away after the due diligence period ends?
Once due diligence is over, a buyer who backs out without a valid reason written into the contract puts their earnest money at risk. That's why far fewer buyers terminate after this point.
What's the Best Way to Protect Yourself Before You Sign?
Learn the vocabulary before you need it. If you know what due diligence, earnest money and a due diligence fee mean before an offer arrives, you'll review the whole contract instead of jumping straight to the price. Bring up the due diligence fee with your agent at the start, not halfway through a negotiation with a buyer's agent, when it's easy to forget.
Signing opens a new phase of the sale rather than closing out the old one, and each step of that phase carries its own risks. Knowing where you're protected, and where you aren't, is what keeps a surprise from turning into a setback.
This is one of several places first-time sellers lose money without realizing it, often discovering the mistake once it can no longer be fixed. If you're selling for the first time, start with my free guide, 7 Mistakes First-Time Home Sellers Make, before you do anything else.
Selling Your Home for the First Time?
See the seven costly missteps first-time sellers make most often, and how to sidestep each one before it costs you money.
Ken Mandich is a Realtor® and team lead at Complete Realty Team, serving Metro Atlanta with a focus on Cobb and Cherokee County. As an active real estate investor, Ken brings a rare combination of hands-on investing experience and full-service agent expertise to every seller and buyer he works with. He's built his business around clear communication and walking clients through every step of the process, from pricing a home right to closing with confidence. You can reach him at 404-410-6465 or [email protected].
