Inspections and appraisals can be a huge part of the process when selling your house in Shreveport. Real estate transactions can be quite complicated, so it is important to understand the process in order to make the best financial decisions. Read on to find out what home sellers need to know about inspections and appraisals in Shreveport.
Welcome to the wild world of home selling in Shreveport and Bossier! Whether you’re a seasoned pro or a first-time seller, one thing’s for sure – the inspection and appraisal process can be as nerve-wracking as a Louisiana thunderstorm. But fear not, for armed with some insider knowledge about the local real estate market, you’ll be ready to tackle these like a pro. Below I’ll outline both how the inspection period and appraisals go when selling with a realtor on the MLS, and what to expect when selling to a cash buyer, like Right Time Home Offers.
Inspection Period when Selling on the Open Market with a Real Estate Agent:
So, you’ve decided to sell your home in Shreveport or Bossier. You’ve picked a fantastic agent, and you’re ready to go. Congratulations! But before you start popping the champagne and envisioning your next abode, it’s time to roll up your sleeves and tackle the inspection process. Now, I know what you’re thinking – inspections sound about as fun as watching paint dry. But with some insider knowledge about the local real estate market, we’ll guide you through this process like a pro.
When you’re negotiating the contract on your home, one of the first things you work out is how long the inspection period will last. It’s pretty standard for the buyer to have 7-14 days to get all their inspections in. The first inspection is a general home inspection. They typically will last 2-4 hours. During the inspection, the inspector will comb through every nook and cranny of your home, from the attic to the crawlspace. From leaky roofs to faulty electrical wiring, nothing escapes their watchful eye. If they flag anything with the major systems (plumbing, electrical, HVAC, roof, or foundation), the buyers will likely need an expert in that field to come out and do a more specialized inspection. You could be looking at anywhere from 1- 5 or more inspections, depending on how many systems get flagged in that original home inspection.
Inspectors are amazingly thorough, they’ll point out any deficiency in your home. The buyers in turn will point those out to you, the seller. One thing to know about inspections in the Shreveport/Bossier area of Louisiana- there are a lot of old homes. With old homes can come overlooked, major problems. If the buyer’s inspector finds any of those problems, you could be looking at taking a lot less cash home at closing. Likely the buyers will ask for certain, if not all, moderate to major line items on the home inspection report to be addressed. This will happen through concessions at closing, or by asking you to fix whatever they feel like could be a concern out of your own pocket prior to closing. This will be updated in the contract, and if you don’t perform, the buyers can walk away from the sale. These repairs can end up being a pretty major hit to your bottom line.
If you want to get ahead of the headache of negotiations for repairs, make sure you price your home correctly to account for any flaw you know about, if you aren’t willing to fix them before selling. Better to be honest about your home’s particularities upfront than to lose a potential buyer.
To go further, if you really want top dollar for your home, it’s best to hire your own home inspector before listing. Have them tell you what repairs are most important to fix, and fix them. You can show the inspection report and the receipts for the fixes to your buyer, potentially saving you all a lot of time, headache, and negotiations.
Inspections when Selling to a Cash Buyer:
The process of home inspections when selling to a cash buyer is much more simple. Cash Buyers like Right Time Home Offers are experienced at buying houses and will be able to point out many of the home’s flaws that could come up in an inspection, during the initial walkthrough. This can save everyone time and energy by knowing what to expect upfront.
Be sure you tell us everything you know about the house during that first walkthrough. It doesn’t do anyone any good to have things come up later that could have been addressed initially. Of course, there will almost always be a normal home inspection just to make sure everyone is fully aware of what’s going on with the house. Though we are experts and can catch a lot of things, we aren’t experts on all home systems and having a home inspection is important when buying or selling any home, on or off the market.
Appraisal Process when Selling on the Market with a Real Estate Agent:
1. Initiation: The appraisal process typically begins after the seller has accepted an offer from a buyer. The buyer’s lender will order an appraisal to assess the fair market value of the property.
2. Selection of Appraiser: The lender selects an independent appraiser who is licensed or certified in Louisiana and has knowledge of the local Shreveport real estate market. The appraiser is impartial and does not have any vested interest in the outcome of the appraisal.
3. Property Inspection: The appraiser conducts a thorough inspection of the property, both inside and out. They assess the condition of the home, its size, layout, amenities, and any recent renovations or upgrades. The appraiser also considers factors such as the property’s location, neighborhood, and surrounding amenities.
4. Market Analysis: The appraiser compares the subject property to recently sold homes (comparables or “comps”) in the same area to determine its market value. They consider factors such as the size, age, condition, and location of the comps to determine their relevance to the subject property.
5. Appraisal Report: Once the appraisal is complete, the appraiser prepares a detailed report outlining their findings and conclusions. The report includes information about the subject property, the comps used for comparison, adjustments made for differences between the subject property and the comps, and the final appraised value of the property.
6. Submission to Lender: The appraiser submits the appraisal report to the buyer’s lender, who reviews the report to ensure it meets their underwriting guidelines. The lender uses the appraised value of the property to determine the maximum amount they are willing to lend to the buyer.
7. Review by Parties: Both the buyer and seller typically have the right to review the appraisal report. If either party disagrees with the appraised value, they may request a copy of the appraisal report and review it for accuracy.
8. Negotiation: If the appraised value comes in lower than the agreed-upon purchase price, the buyer and seller may need to renegotiate the terms of the sale. The seller may agree to lower the price, the buyer may increase their down payment, or both parties may come to another agreement.
9. Finalization: Once any negotiations have been completed, and the appraisal contingencies have been satisfied, the sale can proceed to closing. The final purchase price is based on the agreed-upon terms between the buyer and seller, taking into account the appraised value of the property.
Appraisal Process if Selling to a Cash Buyer:
Most of the time: none needed!
If one is ordered, it’s not because the sale is dependent on it, but more for peace of mind as to what value to expect when repairs are put into the property.
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