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Baton Rouge Real Estate Appraiser: Should You Build Your New Home In This Subdivision?

Baton Rouge Real Estate Appraiser: Should You Build Your New Home In This Subdivision?
  

NOTE: My point is not to put down any particular subdivision in Greater Baton Rouge. My point is that it makes no economic sense to build a $160,000 new home in a 50 year old subdivision where the average non foreclosure home is selling for approx. $78,000 to $80,000 and average foreclosure is selling in the $40,000 range and 67% of 2012 sales were foreclosures. When you build such a home in such a subdivision, the home does not appreciate in value over time as much as if you built it in a subdivision with similar homogeneous new homes. And, the new home ends being only worth perhaps 67% of the total cost to build, +/-. 

Subdivision Info & 2012 Home Sales

Average Home Is 1100sf to 1200sf 

Approximately 50 Years Old 

In 2012, 67% of Sales were Foreclosures

In 2012, Median Sales Price was $47,000

Non Foreclosure Sales Price Are $70,000 to $87,000

My advice is to simply ask a local real estate professional, Appraiser, if building this or that new home makes financial sense in the subdivision you want to build in. 

A resource for locals in Greater Baton Rouge to help understand the real estate appraisal process and where it fits into their home valuation. Videos are by veteran Home Appraiser Bill Cobb and Accurate Valuations Group
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