What Happens If Your House Fails Inspection in Louisiana?

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First: What Does “Failing” an Inspection Really Mean?

In Louisiana, there is no official “pass” or “fail” grade for a home inspection.

Instead, an inspector provides a detailed report listing issues they find. Some are minor. Some are serious. And some can completely stop a financed sale.

What matters most is how the buyer and their lender react to that report.

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Common Inspection Issues That Cause Problems in Louisiana

Because many homes here are older and exposed to heat, humidity, and storms, certain issues show up over and over again:

· Roof damage or limited remaining life

· Foundation or settling issues

· Old or unsafe electrical systems

· Plumbing leaks or outdated pipes

· Termite damage or active infestation

· Mold or moisture problems

· HVAC systems near the end of their life

Even if you’ve lived with these issues for years, they can become deal-breakers once an inspection is done. And sometimes it can just be the limited life left on a system. Air conditioning is a good example. Your system works fine, but it’s 20 years old. No reason for you to replace it, right? But a new buyer is going to have concerns that it could go out any day because, well, it could!

2. The Buyer Asks for a Price Reduction or Credit

Instead of repairs, the buyer may ask for:

· A lower sale price

· Closing cost credits

· Credit for repairs

· A combination of both

This still reduces what you walk away with, and there’s no guarantee the lender will accept it.

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3. The Lender Says No

This is the part many sellers don’t expect.

Even if the buyer is willing to move forward, the lender may refuse to fund the loan due to:

· Safety issues

· Structural concerns

· Termites

· Roof condition

When that happens, the deal often dies — regardless of what you or the buyer want to do. Lenders are shy. They are conservative. They don’t want inexperienced people handling major repairs. They don’t want the risk.


4. The Buyer Walks Away

If the inspection reveals too many issues, buyers can cancel the contract during the inspection period. This is extremely common.

Now you’re back on the market — and you’re usually required to disclose those issues to the next buyer.


What Are Your Real Options After a Failed Inspection?

Once a house fails inspection, you generally have three paths forward.


Option 1: Make the Repairs

This can work if:

· You have the money

· You have time

· The repairs are straightforward

But in Louisiana, repairs often cost more and take longer than expected. Contractors are busy, permits take time, and surprises are common once work begins.

Many sellers start repairs only to realize they’ve opened a much bigger can of worms.


Option 2: Re-List and Hope for a Different Buyer

Some sellers put the house back on the market and hope the next buyer is more flexible.

The risk?

· You’ll likely face the same inspection issues again

· Buyers may offer less

· Time on market increases

· Stress increases


Option 3: Sell As-Is to a Cash Buyer

This is the option many homeowners turn to after a failed inspection.

When you sell as-is to a legitimate cash buyer:

· There are no lender requirements

· No repair demands

· No inspection negotiations

· No waiting on financing

The buyer takes the property in its current condition and handles the repairs after closing.

For sellers who are tired, overwhelmed, or simply done dealing with the house, this can be the cleanest exit.


Why Failed Inspections Are So Common Here

Louisiana homes face unique challenges:

· High humidity

· Termites

· Storm exposure

· Older construction

· Soil movement (Most of the area is built on swampland!)

· Rising insurance requirements (OMG don’t get us started on this problem!)

A house doesn’t have to be “bad” to fail an inspection — it just has to be not perfect.

That’s why many traditional sales fall apart after inspection, especially when buyers are using financing.


A Note About Local Experience

Not all buyers are the same.

Some large, national companies will:

· Tie up your property

· Try to renegotiate after inspection

· Back out late in the process

They don’t understand southeast Louisiana’s market. They pretend to, but they don’t. A local buyer who understands Louisiana homes, local title work, and common inspection issues can often move much faster and with fewer surprises.


Final Thoughts

If your house fails inspection in Louisiana, it doesn’t mean you’ve failed — and it doesn’t mean your house can’t be sold.

It simply means you need to reassess your options.

You can fix it.
You can relist it.
Or you can sell it as-is and move on.

The right choice depends on your timeline, your finances, and how much more energy you want to put into the property.

If you want to understand what an as-is sale might look like for your specific situation — without pressure — I’m always happy to talk it through.

Sometimes the best move forward is the simplest one.

For a fast, free, no-obligation cash offer on your house, call us at 504 264 1407 or visit https://www.nolabuyshouses.com/

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