To make your house hunting journey a little less daunting, we have compiled a list of 5 New Orleans housing terms that will help prepare you for your search.
Buyer or Seller Market
If you’re in the market for a new home, it’s important to understand the difference between a buyer’s market and a seller’s market. In a buyer’s market, there are more homes for sale than there are buyers looking to purchase them. This means that buyers have more options and negotiating power when it comes to pricing. On the other hand, in a seller’s market, there are more buyers looking for homes than there are homes available for sale. This can result in bidding wars and higher prices for buyers. It’s important to navigate these markets with a knowledgeable real estate agent who can guide you through the process and help you make the best decisions for your unique situation.
Deposit
If you’re looking to buy a piece of Louisiana real estate, you’ll likely come across the term “deposit” during the process. A deposit is the Louisiana version of earnest money that is paid upfront as a show of good faith toward the transaction. This deposit demonstrates to the seller that you’re serious about the purchase and willing to commit to the agreement. Deposits are typically a percentage of the total sale price of the property and can vary depending on the circumstances of the sale. Some sellers may require a larger deposit as a way of decreasing the risk of the sale falling through, while others may accept a smaller deposit. Once the deposit has been paid, it’s held in escrow until the closing of the sale, at which point it is either returned to the buyer or applied toward the purchase price of the property.
Homestead Exemption
A homestead exemption is a legal provision in Louisiana that allows homeowners to reduce the taxable value of their property by up to $75,000. This means that the amount of property tax owed on the property is reduced, ultimately resulting in lower tax bills for homeowners.
In addition to the $75,000 exemption for the home itself, Louisiana also provides additional exemptions for homeowners who are disabled, over the age of 65, or a surviving spouse of a member of the military. The amount of these exemptions varies based on each individual case, but it can provide significant financial relief for those who qualify.
It’s important to note that in order to qualify for a homestead exemption in Louisiana, the property must be your primary residence. If you own multiple properties, only one property can be designated as your homestead and receive the exemption.
Waiver of Redhibition
Under Louisiana law, redhibition allows a buyer to request a refund or price reduction if a defect is discovered within one year of the purchase. However, a waiver of redhibition can be included in the sales contract to waive this right. The waiver means that the buyer can still inspect the property for any potential issues, but they cannot seek recourse for any defects discovered after the sale unless they can prove the seller fraudulently hid them.
Ward
The term “ward” refers to the neighborhoods that make up the city, each with its own distinct character, culture, and history. In New Orleans, the city is divided into 17 wards that are used for voting in elections.
If you have questions about other New Orleans housing terms, give us a shout. We’d be happy to explain them all to you. 504-327-5303
