Thinking about buying a home on St. Simons Island and hearing a lot about “due diligence”? You are not alone. Georgia’s approach is a bit different from other states, and knowing how it works can protect your money and help you write a winning offer. In this guide, you will learn the timelines, fees, and inspections to prioritize, plus St. Simons–specific checks that matter along the coast. Let’s dive in.
How due diligence works in Georgia
In Georgia, the due diligence period is the negotiated window after your offer is accepted when you investigate the property and decide whether to move forward, request repairs, or terminate. You use this time to schedule inspections, review title and HOA documents, confirm insurance and financing, and get comfortable with the purchase.
You will likely see two separate monies in your contract. The due diligence fee is paid to the seller and often not refundable, which compensates them for taking the home off the market. Earnest money is a deposit held in escrow. Whether it is refundable depends on your contract and when you act. This structure is a common Georgia practice and makes timeline management critical.
The specific rules and deadlines are defined by the purchase agreement you sign, commonly the forms from Georgia REALTORS and Georgia contract law. If you need clarity on definitions such as the effective date or when your inspection period ends, review your forms and confirm with your agent. You can also find general regulatory guidance at the Georgia Real Estate Commission.
Key dates and typical timelines
- Start date: The due diligence period usually begins on the contract’s effective date, which is the date the last party signs unless your contract specifies otherwise.
- Duration: In competitive coastal markets like the Golden Isles, you often see 3 to 10 days. Many standard deals fall in the 7 to 14 day range. More complex properties or new construction may need 15 to 30 days.
- Scheduling: Book a general home inspection as soon as your offer is accepted. If needed, add pest, septic, roof, HVAC, structural, or elevation reviews. Specialized tests may require extra time.
- Action deadlines: To preserve your rights, you must submit repair requests or a written termination before the due diligence period expires according to your contract. Waiting can put your deposits at risk.
- Financing and appraisal: Your loan and appraisal often run on a longer track, typically 21 to 45 days. Confirm your financing contingency deadline and coordinate appraisal timing with your lender.
- Closing date: This is negotiated separately. Many closings occur 30 to 60 days from contract. A short inspection period does not always mean a short closing.
What you can negotiate on St. Simons
Your offer can be tailored to the property and market. You can negotiate:
- Due diligence period length and the due diligence fee amount
- Earnest money amount and payment timing
- Scope of inspections and related rights to terminate or request repairs
- Financing and appraisal contingencies
- Repair requests or credits after inspections
- Closing date and possession timing
- Time to review HOA documents and disclosures
Stronger offers often show a shorter inspection window, a clear payment timeline, and a larger due diligence fee or earnest money. Some buyers reduce or shorten contingencies to compete, but that increases risk if surprises surface later. Decide what protection you need before you bid.
St. Simons due diligence must-checks
Flooding and insurance
- Verify the property’s flood zone using the FEMA Flood Map Service Center. Zones like VE or AE may require flood insurance with a mortgage and can affect rebuilding rules.
- Get early quotes for flood and wind coverage. Availability and cost can vary on the coast. Ask the seller for any elevation certificate and prior flood claim history.
- Review local floodplain rules and base flood elevations with the Glynn County floodplain or planning office.
Storm, wind, and hurricane exposure
- Confirm windstorm and hurricane coverage requirements with your insurer. Some carriers require certain features like hurricane straps or reinforced openings.
- Older homes may need upgrades to meet current wind-resistance expectations. Budget for potential retrofits.
Septic, sewer, utilities, and shoreline
- Confirm if the home is on public sewer or a private septic system. If septic, order an inspection and ask for permit and maintenance records from local authorities.
- For waterfront homes, evaluate seawalls or bulkheads, maintenance history, and any erosion patterns. A current survey helps verify property lines near the mean high-water mark.
- Verify utility availability and condition, including any wells or underground lines.
WDO and coastal moisture concerns
- Order a wood-destroying organism inspection, which lenders often require. Coastal conditions can increase wood rot and corrosion risk, so consider moisture and structural checks as well.
HOA and short-term rental rules
- Request CC&Rs, bylaws, budgets, reserves, and any pending assessments. Review fees and community guidelines.
- If you plan to offer short-term rentals, confirm HOA and local restrictions during due diligence. Glynn County and various communities have rules you must follow. You can start with the county’s official site at Glynn County for regulatory context.
Title, easements, and surveys
- Ask your title company for a title commitment early and review exceptions such as utility easements or access agreements.
- Order a new survey if you do not have a recent one, especially for waterfront or boundary-sensitive lots. Confirm ingress, egress, and any encroachments.
Coastal permits and improvements
- If you plan a dock, pier, or marsh-side improvement, review permitting needs with the Georgia Department of Natural Resources Coastal Resources Division. Confirm existing permits for any current structures.
- Check past storm or disaster history that may affect insurance or improvements.
Local timing and seasonality
- Many properties on St. Simons are second homes. Align your inspections and walk-throughs with any rental turnovers.
- Specialist contractors can book up, especially in peak seasons. Build in time for quotes and follow-ups.
Your 14-day due diligence game plan
Use this sample schedule to move fast while staying thorough.
Days 0 to 2: Launch essentials
- Pay your due diligence fee and earnest money per contract terms.
- Schedule a general home inspection and a WDO inspection.
- Open title and request a title commitment. Ask for any existing survey.
- Request HOA documents and seller disclosures. Begin your review.
- Start flood and wind insurance quotes. If available, collect the elevation certificate.
- If waterfront, coordinate a survey update and review shoreline structures.
Days 3 to 7: Deep inspections and quotes
- Complete general and WDO inspections. Add septic, roof, HVAC, or structural checks as needed.
- If flood exposure is a concern, discuss elevations and mitigation options with your insurer and inspector.
- Share inspection findings with your agent and get repair estimates.
Days 8 to 12: Decisions and negotiation
- Submit repair requests or credits with supporting reports.
- Confirm financing progress and appraisal timing with your lender.
- Review title exceptions and HOA documents. Flag any easements, assessments, or rental restrictions that concern you.
Days 13 to 14: Finalize
- If the seller agrees to repairs or credits and everything checks out, proceed.
- If major issues remain and you are not comfortable, deliver a written termination within the inspection window defined in your contract.
Stronger offers without regret
You can write a competitive offer and still protect yourself.
- Shorten your due diligence period, but raise the due diligence fee to show commitment while keeping investigation rights.
- Pre-approve or pre-underwrite your loan to reduce financing risk.
- Schedule critical inspections immediately and line up backup inspectors.
- Use clear timelines in the contract for payments and deadlines.
- Keep appraisal and financing protections that match your risk tolerance.
- Work with local pros who know Glynn County’s coastal rules and resources.
Buying well on St. Simons comes down to speed, focus, and local knowledge. If you want a steady guide who understands coastal due diligence and the rhythm of the Golden Isles market, reach out to Mackay Cate for tailored advice and a plan that fits your goals.
FAQs
What is the due diligence fee in Georgia?
- It is a negotiated payment to the seller for the inspection period, often nonrefundable, and separate from earnest money; the exact rules depend on your contract.
How long is a typical due diligence period on St. Simons?
- Many offers use 7 to 14 days, while very competitive situations may see 3 to 10 days; complex or new construction deals may need 15 to 30 days.
What happens to my earnest money if I terminate during due diligence?
- If you terminate in writing within your contract’s due diligence window, earnest money is usually returned, while the seller typically keeps the due diligence fee.
Can I extend due diligence if inspections run long?
- Extensions must be negotiated and signed by both parties; in a hot market, sellers may prefer to keep the original deadline.
How do flood zones affect buying on St. Simons?
- Flood zones influence insurance requirements and costs, and sometimes building rules; check the property’s zone with the FEMA Flood Map Service Center and review local standards with Glynn County.
