Wayne Turner of Turner Real Estate Group in Mandeville, La. is back with the Daily Real show. On this episode, he’s talking about the Louisiana Residential Real Estate Contract, and how it has continued to get longer and more detailed throughout the years.
Many people ask what is included and not included with a home when it is sold. A general rule of thumb is if something is screwed in or attached to the property, then it remains with that property. For example, items that always stay with a home are light fixtures, affixed appliances and speaker systems. Affixed appliances include built-in appliances such as microwaves attached above the stove (not countertop microwaves), dishwashers, and stoves/ovens. Appliances that are not affixed are refrigerators, washers and dryers. However, a buyer can always negotiate with a seller and ask them to leave these appliances behind; it just has to be specifically stated in the contract.
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When a buyer gets a loan to purchase a home, the buyer has to pay for an appraisal of the home as part of the loan process. It is done by a certified professional to determine the home’s value based off of comparables in the area. Sellers are often curious as to what their home appraised for, but most of the time they never find out. This information is given only to the buyer, as the buyer is the one paying for it. However, if the home does not appraise and the buyer cannot secure financing because of it, then the seller will find out what it appraised for.
Wayne gives an example of a recent appraisal that came in $72,000 less than the sales price. Wayne explains at this time with more buyers and less sellers in the market, we are beginning to see more contingencies. Buyers are willing to offer top dollar for homes, but appraisals are coming back in lower than the offer price. The cost of real estate is being driven up, but because there aren’t many homes on the market that influences the market trends.
Wayne then gets into the deposit, also known as the escrow check or money check. The deposit can be anywhere between $1,000 – $100,000 depending on the price of the home. A deposit is given in good faith towards a home purchase, and can only be returned to the buyer should the sale fall through due to home inspections, termites, appraisal not going through, financing falling through, etc. If a buyer just randomly decides home buying isn’t for them and doesn’t have a proper reason such as one of the ones listed, that isn’t acceptable and a buyer could risk losing their deposit.
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After a contract is accepted on a property and the utilities are on, the inspection period begins. This time frame can fluctuate, but on average it is a 10 day period. When it comes to home inspections, it is recommended not to extend the usual time frame. This could delay the closing from happening in 30 days. It’s ideal to get the inspection done as quickly as possible, so the results will come in as quickly as possible. It is at that point a buyer can go back to the negotiation table should anything pop up in inspections that isn’t acceptable.
During inspections a buyer can hire an electrician, HVAC specialist, or any other vendor deemed necessary. Roofers, window specialists, etc may all come out to look at the property. However, most buyers just start with a general licensed home inspector and go from there.
Buying a home can be a stressful process, but we at Turner Real Estate Group remove the stress so it’s all smooth sailing. If you have any questions about what to expect when buying a home, don’t hesitate to call our office at 985-626-1313 or visit our website www.CallWayneTurner.com. For a list of licensed home inspectors in the state of Louisiana, click here. Click here for a list of home appraisers in St. Tammany, and here for a list of appraisers in Tangipahoa.