Inspections and appraisals can be a huge part of the process when selling your house in Lynchburg VA. 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 Lynchburg.
Contingencies
Home sellers need to know inspections and appraisals are an intricate part of traditional real estate contracts. These contracts typically have an inspection contingency or due diligence contingency. This allows protection for buyers, who are given a specific time period, such as seven days for the inspection to be completed. Should there be any issues found with the in property, the options for both buyer and seller are clearly outlined in the contract.
Depending on how the contingency clause was written, the outcome of the inspection could cause closings to be delayed, or even cause deals to fall through. Failure to have this clause in a contract could mean that the buyer, having decided not to complete the purchase based on the outcome of the inspection, would lose their earnest money deposit.
Earnest money protects the seller if the buyer backs out. It’s typically around 1 – 3% of the sale price and is held in an escrow account until the deal is complete. The exact amount depends on what’s customary in your market. If all goes smoothly, the earnest money is applied to the buyer’s down payment or closing costs.
Repair Expenses
Much news is brought to light for homeowners from having inspections and appraisals. Home inspections focus on the condition of the property structurally, as well as the systems which keep the home a comfortable and enjoyable property. This includes items such as air conditioning, heating, plumbing, electrical systems, water damage, termites, and the condition of the roof and foundation. The inspector will prepare a report for the buyers, to make them aware of any issues that were found.
Depending on the conditions in the contract, after a negative report, buyers may have the option to request a time period for a second inspection, or even request a deduction on the price, to make the repairs themselves, the cost for the repairs is likely to fall on the seller’s head. It is wise to contact three professionals for estimates to get a realistic number as well as a timeline for completion. These out of pocket expenses can quite literally run into tens of thousands of dollars, depending on the severity of the problems found in the inspection.
Valuation
Inspections and appraisals also bring into focus the actual current market value of the home, given all possible variables. While the inspection focuses on issues with the home, the appraisal is completed by taking several variables into account, including comparing properties that have most recently sold, that are most likely, and most near the subject property.
Appraisers have predetermined values for bedrooms, bathrooms, and the like. They will add value to a property with more features than the comparable properties, or subtract from the subject property value for what may be lacking, such as having only a one-car garage, when those nearest all have two-car garages.
Mortgage lenders necessarily require the appraisal to meet the loan-to-value (LTV) ratio. Basically, the mortgage amount is divided by the appraised value. Lenders use this measurement as a guideline, the lower the resulting number, the lower the risk on the loan. Should the loan-to-value be a higher number, the lender may require mortgage insurance to be purchased as well.
Wise buyers will ensure that there is a contingency clause in the contract based upon the appraisal results as well.
Deal Breakers
Failing to understand the impact of inspections and appraisals in Lynchburg can lead to disastrous mistakes which can end up costing a home seller valuable time and a great deal of money.
Sadly, sellers may find their house isn’t worth what they thought only after the inspection and appraisal have been completed. With these and many other clauses that can be in place to protect buyers, any problems found may cause sales to fall through because the lender will not approve the loan. The buyer may ask the seller to pay for repairs, out of pocket, before closing or to deduct the value of the repairs from the price of the home and renegotiate a contract.
All the while, the clock keeps ticking and the seller is now paying to hold the property longer than expected, meaning that in reality, they are losing even more of the valuable equity that had been built in the home, and actually making even less on the sale.
Linken Investments LLC. makes real estate transactions easy, even for first-time buyers or sellers, without any of the problems that accompany inspections and appraisals in Lynchburg. At Linken Investments LLC. our network of professionals will lay out a plan to save valuable time and avoid what could potentially be thousands of dollars in repairs.
Professional buyers like those at Linken Investments LLC. can help you weigh the pros and cons of Inspections and Appraisals. We can show you what you could expect to earn and the risks involved to help you understand the best sales method for your house, given your circumstances. By working with us and exploring different sales methods, you can minimize the financial impact of selling your property and achieve the best possible outcome for your unique situation. Call or text us at 434-390-2906 Send us a message or give us a call today to learn more!
Linken Investments, Lynchburg’s Trusted Home Buyer and Seller
Linken Investments LLC is a local Cash Home Buyer in Lynchburg, VA, serving Lynchburg area homeowners since 2005. We have been helping individuals sell their properties in the Lynchburg area quickly and efficiently, leveraging our extensive knowledge and expertise in the local real estate market.
As licensed realtors in the state of Virginia, we provide our clients with multiple options to sell their homes on their terms and at the highest possible price. Whether you are looking to list your property on the MLS or sell it fast and hassle-free, we have got you covered. Our years of experience and commitment to honesty and integrity make us the go-to choice for Lynchburg homeowners looking for a stress-free sales experience.
We’re a family-owned business and focus on helping homeowners like you find solutions to your problem whether you’re going through a foreclosure, selling an inherited property, or just need to sell your house fast for any reason. Linken Investments offers you the chance to sell your home in a simple, cash transaction, or you can list the house with us. We’ll sell your Lynchburg area house at the highest possible price with our wide buyer network and the best marketing in Virginia.
Linken Investments can buy your home exactly as it is, you don’t need to clean paint or fix a thing. We pay all cash and close fast. Think of all the time and money that can save you. There’s no easier or quicker way to sell your Lynchburg house fast and get on with the next chapter in your life.
At Linken Investments, we take pride in our commitment to helping our neighbors in Lynchburg sell their houses in the most beneficial way possible. Our goal is to provide you with a stress-free and streamlined sales experience, so you can move on to the next chapter of your life with confidence.
Give us a call or text anytime 434-390-2906 or fill out the short form here today!