Greater Baton Rouge Home Appraiser, Bill Cobb, has been appraising homes or houses now for 21 years, 2 years in the Alexandria LA metro area and 19 years in the Greater Baton Rouge Housing Market. Bill’s specialty is:

Baton Rouge Pre-Purchase Home Appraisals

and

Baton Rouge Pre-Listing Home Appraisals

Accurate Valuations Home Appraisal Group (AVG) Serves The Greater Baton Rouge Metroplex!

With Boundaries North by Zachary, South by Sorrento, West by Port Allen and East by Livingston.

Contact Information:
Accurate Valuations Group (Home Appraisals)
P.O. Box 40515
Baton Rouge, LA 70835
Baton Rouge Office: 225-293-1500
Toll Free: 1-888-678-3544
Toll Free Fax: 1-866-663-6065
Denham Springs Office – Local #: 225-709-6013
Staff Email: info@accuratevg.com
Website: http://www.accuratevg.com/

Last week, David Jacobs, with the Baton Rouge Business Report, reported a startling study about how high and out of sync Greater Baton Rouge housing prices are when combined with transportation. The article, Baton Rouge-area household spends 52% of income on housing and transportation, was published on 8/9/2011. In the article or study, the CNT recommends spending no more than 45% and that combining local housing prices with true transportation costs provides “an accurate measure of of the true affordability of housing”.

Other Studies. We also know that according to Core Logic, Baton Rouge is in its’ 9th straight month of home price correction. We also know from the 24/7 Wall Street study that Baton Rouge made America’s 10 Sickest Housing Markets list this month.

We’re In For More Correction. It would appear, based on these 3 studies, that Greater Baton Rouge Housing is in for more correction.

This is my reply below to David Jacobs submitted on 8/10/2011:

I read your Business Report Weekly and wanted to thank you for reporting on this. This has really helped me. Just 3 weeks ago, I was ready to go for a visit to the LSU Real Estate Research Department with similar questions as to where should GBR Housing be priced relative to local incomes? I think this is a foundational question going forward and might possibly shed some light on where the bottom might be in local housing prices in the future. If GBR housing is out of proportion, by how much or by what percentage? Are the current still nose-bleed high housing prices sustainable? Obviously if we asked this question in 2007 from some of the Zachary and ASC $300,000 neighborhoods, the answer today is probably not. $140/sf for new homes wasn’t sustainable across the board. This is why builders like DSLD Homes are having such success……because the insanity in local new home prices from 2006 to 2008 was never sustainable based on local incomes.

As a local home appraiser, I’ve been scratching head all along here wondering WHY local housing is so expensive…..in Louisiana. Baton Rouge has been a wonderful place to grow up and now raise my family, but we’re not California with almost a perfect climate where one would expect high prices. Why are home prices so high here….still in 2011? Even with the modest correction, it would certainly seem that we’re still at nose bleed levels on the pricing of some local housing relative to local incomes. I scratch my head monthly on this issue.

Please understand, I’m not a conservative appraiser. Whatever the housing market’s decision has been, in the form of home sales, I reflect in my reports. However, we’re now about 9 months into this local correction and I’m beginning to think that locals are finally coming to their senses on what they pay for local housing relative to local incomes. There are A LOT of sellers in denial right now, and Hurricane Katrina didn’t help with that at all. It only made it worse. Today, some local Real Estate Agents are hiring me for my Listing Appraisals on their listings that have been on the market for months now, they know are overpriced and they bring me in to show the seller the reality of the local numbers in comparison to sellers perception that their home is worth more.

The chart below doesn’t indicate a huge problem in GBR housing, not like some sour markets in the USA where there’s 3-4 years of supply. However, talk to most appraisers locally and you’ll find that we’re checking “Slow” market for growth or sales and in some subdivision/markets, there’s been such few home sales that it’s become very difficult to complete appraisals for the lack of comps sold within 3 to 6 months, especially under $125,000.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of August 2010 to July 2011. This information was extracted on 8/10/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above.

These are some of the things I’ve been thinking about in GBR Housing since 2007 and going forward. Are we fairly priced or still way out of balance? Yes, the market is correcting back to some sense of sanity…..finally…..and how many more months or years will it be till we reach equilibrium (sanity) based on local incomes.

New Homes Are Still Priced High. I still see a local builder and have them say something like, “This market is killing me…when the market coming back?!”. And that builder just doesn’t get it….that the post Hurricane Katrina builder’s market isn’t coming “back” in terms of such exaggerated pricing. The odd thing here is the LHBA (La Home Builders Association) would probably tell you today that we’re too low for their builders to make a decent profit on local home building. What they experienced in 2006-2008 (unsustainable pricing) and expect in the future just wasn’t/isn’t sustainable.

This is why I believe that new TND in Zachary recently announced will take a decade or more to build out because $140/sf to $200/sf just isn’t what local incomes will support and until local builders understand this, they’ll be more developments started and then finished by DSLD Homes. This is also why I believe that new Wyndam Estates development in Denham Springs with 1600sf homes on “tiny lots” in $190′s or $120/sf will also take much, much longer than expected to fill and should be filled with homes in the $150s to $160s. It’s about market economics and local incomes and the local economics, at least outside of Baton Rouge itself, is in favor of DSLD Homes pricing. Those builders and developers that fail to understand local incomes will continue to have their fledgling developments sold to and finished by developers like DSLD Homes after spending millions to break the dirt.

Bill Cobb, Appraiser

My Appraiser Friend in Sacramento California, Ryan Lundquist, just posted this interesting article, Letting the dogs pee outside is an okay idea | Sacramento Appraisal Blog . Image is from Ryan’s post.

My Baton Rouge Home Appraiser for 20 years comments are these:

It’s amazing how many people have pets, don’t realize just how strong pet odor can be (owners get used to it), especially with cats, and we appraisers sometimes gag over the smells in people’s homes….trying to maintain a smile during the inspection.

I appraised a home recently in Area 41 where pets had so smelled up the home that it took close to 550 days on the market to sell this under 15 yr old home at a huge discount. If the seller would have just invested $2,500 and changed out the carpet and removed the pet odor, they might have not lost about $15,000 on the sale.

Home Selling Tip For Pet Owners: When it comes time to sell your home and you’ve owned pets, move the pets to another location, change out the carpet and get rid of the pet odor. Ask others that don’t live there to do the sniff test to make sure the pet odor is gone!

Tags: Baton Rouge Real Estate, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Home Appraisers, Baton Rouge Real Estate Appraisers, East Baton Rouge, Greater Baton Rouge, Baton Rouge Home Appraisal, Home Appraisals, Baton Rouge Realtors, Baton Rouge Real Estate Agents

This is an on-going series into the decline of Greater Baton Rouge Home Values and why potential buyers should beware and not pay too much for “some” local overpriced listings. YES, there are overpriced listings in the Greater Baton Rouge Housing Market! Bill strongly recommends in this housing environment to obtain a Pre-Purchase Appraisal to gain ALL of the facts before making a local home purchase decision.

A recent home appraisal in and analysis of Old Jefferson revealed this interesting finding. From 2008 to 2011, the median sales price has continued to decline. From 2008 to 2010, the median sales prices were $149,900, $147,000, $145,000 and in 2011 it’s currently $140,200 based only on 4 sales (the chart below isn’t updated yet). Again, this is only based on 4 sales in the first 4.5 months of 2011. In 2010, there were 22 total sales, so one can see that the number of home sales has dropped considerably. NOTE: There is no indication per GBRMLS sheets that any of these 4 2011 sales were distressed or foreclosures, just a correction to a lower price level.

THE CORRECTION IN HOME PRICES – This is becoming the familiar “Stair Step Up and Stair Step Down”…..The Climb And Then Descent Of The Stairs In This Chart Below Visually Explains The Correction! And, so does the chart below it showing a correction.

The Chart below shows a considerable correction since May 2010 for home comparable to a larger 2,000sf in Zip 70817. Yes, the average home in Old Jefferson is 1,500sf to 1,600sf. The home I was appraising had an addition.

CURRENT LISTINGS. There are 20 current listings from $117,000 to $174,900 with 18 active and only 2 pending or under contract. So, there is a major oversupply of available homes for sale in Old Jefferson. The Average Listing Price per sq. ft. is $91.23/sf, which is too high and the reason these homes aren’t selling. If you examine the chart above, 2011 support is now in the $80s/sf, not the $90s/sf. This is called sellers in denial. AND, the 2 pendings have an average listing prices of $83.60/sf, further proof that reaching $91/sf in Old Jefferson was something that took place in 2010 but no longer in 2011. And, CoreLogictells us that Baton Rouge is in its’ 8th straight month of declines.

DISTRESSED LISTINGS. Out of the 20 current listings, 1 is a foreclosure and 3 are short sales. So, 20% of available listings are distressed in nature.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2008 to May 20, 2011. This information was extracted on 5/206/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

AUTHOR’S BIO:

Bill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/

Can Real Estate Agents Talk To Home Appraisers During A Purchase Appraisal? In short, they absolutely can!

HVCC was retired yet the policies it set in motion remain in motion. Now, Dodd-Frank’s Appraiser-Independence Legislation is the rule of the day and there is a lot of confusion out there between both Home Appraisers and Real Estate Agents on communication! I just had an Agent this week contact me complaining about an Appraiser that came in short on an appraisal because the Appraiser didn’t understand the home on the river had 2 boat slips instead of just 1. This Agent didn’t understand that he could have spoken with the appraiser at the beginning to clear all facts up about this property.

The November 8, 2010 article in Live Valuation Magazine written by Larry Disney, Change to Appraisal and Appraiser Regulation Has Arrived – Are You Ready? sheds some light on this topic. The language in the new Dodd-Frank legislation appears to help the communication process between Agents and Appraisers and Sellers and Borrowers. For example, in this article, Mr. Disney states,

“The above language is not meant to imply that mortgage lenders, mortgage brokers, mortgage bankers, real estate brokers, appraisal management companies, employees of appraisal management companies, consumers, or any other person with an interest in a real estate transaction cannot ask an appraiser to consider additional information, including comparable sales; provide further detail, substantiation, or explanation for an opinion of value; and correct errors in the appraisal report.“

It sounds to me like Agents can communicate with home Home Appraisers.

I asked two (2) nationally known Home Appraisers these questions below:

At what point can the RE Agent talk to the appraiser regarding the purchase appraisal?

*When the initial appraisal inspection is setup?
*After the appraiser has inspected the property?
*If only at the initial setup, then can that agent provide their comps / support then to avoid an appeal later?
*What’s your policy or understanding on this?

*Was I wrong in what I’ve told this agent that asked me below:

I as an appraiser have always considered there to be 3 Real Estate Professionals in the deal: Listing Agent, Selling Agent and Appraiser. To avoid appeals, I ask for the Agent’s comps at the time I set the inspection up. Some Agents are offended that I do this because they take it as if I’m questioning them. I’m not questioning, just trying to give them their opportunity to “talk” to the appraiser before I go out for the inspection and avoid an appeal later. I think you should be proactive with Appraisers and take as much control of your deals as possible……and that’s done initially when the appraiser calls to set up the appraisal inspection. It’s a myth that Agents can’t talk to Appraisers, it’s just that the communication must take place before the appraiser inspection and not after the inspection.

Their two (2) responses I received are below:

In summary, one Appraiser stated that there has been a lot over reaction and that they try to talk to the Agents of most deals. If a value issue arises, the appraiser said he contacts them for their data, which could be before or after the inspection, without letting on that there is a value issue.

Washington State Appraiser, Dave Towne, Said:

“I’m with you on this. I sometimes will ask agents for their ‘cma’, saying “I want to be sure I understand how you priced this property at the time of listing. I want to be sure I don’t miss any properties that you may have considered.” I do this when I determine the price is too high based on comps I pre-research prior to inspecting.

Often, they don’t even have those in their file, and just provide listings at inspection time that support the price, but that are not necessarily comps from our perspective.

An appraiser has to be careful about accepting carte blanche properties provided by someone financially connected to the deal. But I don’t think trying to understand the preliminary pricing process is out of line. However, after the inspection and the report is complete/submitted, that’s not the time to complain – especially if the agent was uncooperative at the start.

We are supposed to ‘verify’ every sale. That involves communication with the players involved prior to report completion. Unfortunately agents sometimes have an adversarial attitude, and appraisers don’t do an effective job discussing this. I think you do, based on your info.

And anyone connected to the assignment can discuss aspects of the property with the appraiser in advance of report submittal, as long as there is no attempt to influence the value.”

What does the Home Appraiser’s Client Instructions Say About This Topic – The AMC’s or Appraisal Management Companies?

I reviewed three (3) recent appraisal orders for home purchases. These Appraisal Orders were 8 pages, 3 pages and 4 pages in length. None of these orders stated the Appraiser couldn’t communicate with the Agent. Two sets of the instructions read,

“Purchases require that you review the sales contract and state in report that contract was reviewed. Obtain contract from Agent/Contract or Contact AMC for help. Contract must be fully executed.” Fully executed means the contract must have ALL signatures or you the Agent hold up the deal!

“For Purchase transactions, if AMC does not provide you with the sales contract governing the transaction, you must contact us or the borrower/REALTOR to obtain it.”

Conclusion. It appears from ALL sources reviewed that Agents can communicate with Appraisers during a purchase transaction. My advice as a Home Appraiser is to provide the Appraiser with a list of relevant features, upgrades, your Sketch showing your measurements and a list of your supportable comps used to market the property. By providing your comps up front, you are avoiding an appeal after the appraisal is completed, which will also help speed the closing process.

Why Did I just state, “your Sketch showing your measurements”? Because in the month of May in my market, one deal did not appraise and another deal was very, very close simply because the Agents either did not measure the homes, simply copied a previous incorrect MLS listing or measured them incorrectly per the National “ANSI” Standards. The MLS Listings were incorrect by 173sf and 215sf. The 173sf error was in a market where homes were selling in the $121/sf range. If you have your own sketch, you can be sure that your listing is the right size, priced properly and be less questionable in terms of the appraisal.

AUTHOR’S BIO:

Bill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/

Washington State Appraiser, Dave Towne, recently offered tremendous value to home appraisers by providing a copy of a list of the Top 12 FDIC Appraisal Deficiencies, see list below. In case you are not aware, the FDIC, in order recoup loses, is filing suit against AMCs (Appraisal Management Companies) and individual appraisers for questionable appraisal work that could have led to mortgage defaults. FDIC is seeking hunreds of millions of dollars in these suits.

Dave said, “Appraisers….

The FDIC has recently named a major nationwide AMC in a suit involving hundreds of defaulted properties**, claiming the AMC was deficient in the way they reviewed original appraisal reports. The suit has not gone to trial yet.

Included with the suit legal documents was this list that shows issues of concern in the original appraisal reports.

This would be a good list to use to review your own reports prior to submittal.

I personally found much satisfaction in #4 above about the applying “not reasonable, large unsupported adjustments for intangibles such as view, etc.” See this water front lot photo below.

My reply to Dave follows….

Thank you so very much, Dave!!!

I LOVE YOUR #4, about applying non-supportable adjustments for “view”. There is no such adjustment and I don’t understand why FNMA even has that in the grid. Dave, when a buyer closes on a lake lot, do they have “2″ closings, one for the site value and another separate closing for the lake view? No they don’t….and that would be insane wouldn’t it? There is no such thing as a supportable “View” adjustment. The entire value in a lot is the “Site” itself and all of the attributes of that site: land, size, view, historic trees, etc.. It all makes up the “Site Value”. And, based on what you’ve sent us, I’m not the only appraiser or regulatory agency who polices appraisers who thinks this way!

Potential $20K Loss. This is an on-going series into the decline of Greater Baton Rouge Home Values and why potential buyers should beware and not pay too much for “some” local overpriced listings. YES, there are overpriced listings in the Greater Baton Rouge Housing Market! Bill strongly recommends in this housing environment to obtain a Pre-Purchase Appraisal to gain ALL of the facts before making a local home purchase decision. In the appraisal I recently completed, the home sold for $155,900 in 2007, a Post Hurricane Katrina high price, and is now on the market for $136,000. If this home sells for $136,000, then homeowner only loses $20,000 and will lose a total of $28,160 after paying the selling commission.

A recent home appraisal in and analysis of Villa Del Rey revealed this interesting finding. From 2009 to 2010 to 2011, the median sales price has declined from $145,000 to $137,500 to now $136,000 (chart below is not updated) into 2011 based only on 3 sales. This drop is due to foreclosure and/or distressed sales. Actually, the chart below is incorrect because GBRMLS reports “38″ solds in 2010, not just 33, with a median of $137,500. Of those 38 sales, 11 or 29% were foreclosures, which is quite high. And, in 2011, the 3 solds only sold for $119,000, $136,000 and $139,000 indicating these sold below market.

THE CORRECTION IN HOME PRICES – This is becoming the familiar “Stair Step Up and Down”…..The Climb And Then Descent Of The Stairs In This Chart Below Visually Explains The Correction!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 3, 2011. This information was extracted on 5/3/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

AUTHOR’S BIO:

Bill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/

I’m noticing a trend in the $100K to $140K range where home sales have slowed, if not stalled. I’m reading about mortgages drying up for some. I’m looking at a 1004MC or Market Conditions Form right now in 70810 Area 53 where 12 months ago there were 17 sales and 2 months supply and in First Quarter 2011 only 1 sale in current 3 month quarter and 49 month supply. Of course, Baton Rouge home sales aren’t totally stalled for all price ranges, but for the under $140K range, there certainly has been a slowdown and increase in supply. Here’s the recent examples below.

This 1004MC or Market Conditions Report Based On Sub-Market Solds and Listings For an overbuilt home in Hermitage Subdivision, but using 1,200sf to 2300sf lowered price homes as comps in Area 53. From 17 sales 12 months ago to only 1 in current 3 months. Months supply of inventory 12 months ago was 21 months and currently it’s 48 months. Median sales price appeared to remain stable. It actually increased, BUT trend is not called just based on 1 sale.

SAME TREND IN DENHAM SPRINGS FOR 2 HOMES. I saw this exact same trend in Denham Springs last week. A couple purchased a home for $141K in 2007, surely a Post Katrina high price, and it appraised in low $130s in 2011 due to expected market correction. There was going to be a correction! 1004MC or Market Conditions Data showed 8 sales and 9 month supply 12 months ago and only 2 sales and 36 month supply in current 3 month period. In this case, median sales prices had declined, corrected.

This 1004MC Based On Sub-Market Solds and Listings For a 1,500sf 40 yr old home in South Woodcrest Subdivision. From 9 sales 12 months ago to only 1 in current 3 months for past 2 quarters. Months supply of inventory 12 months ago was only 4 months and currently it’s 45 months. Median Sales Price was $128,450 12 months ago and is now $124,125, a dip of -3.4%. Also, the Median Sold Days On The Market increased from 76 days 12 months ago to 191 in Q1 2011 .

This 1004MC or Market Conditions Report Based On Sub-Market Solds and Listings For a 1,150sf 40 yr old home in Sara Estate Subdivision. From 9 sales 12 months ago to only 1 in current 3 months for past 2 quarters. Months supply of inventory 12 months ago was only 4 months and currently it’s 45 months. Median sales price appeared to remain stable.

The Positive In The Market! I do know there is a lot of positive chatter from local Real Estate Agents on FB on the uptick in home buyer interest….and that’s a positive for the market.

PART OF THE REASON FOR “LOW APPRAISALS”. As home appraisers, the Big Banks are really concerned about Collateral Risk and want to know much more about the markets they lend in from the home appraisal. This is why today’s home appraiser works a couple of hours longer on each report to deliver all of this extra data, to better understand the markets they operate in and apply market based adjustments, whether those adjustments support a purchase agreement or not. Stats like I’m reporting here aren’t obvious on the surface when it comes to pricing a home for a listing BUT are made more transparent at appraisal time. Such stats as 45 months supply, declining median sales prices and average days on the market of 191 days do influence the final outcome on an appraisal and helps the lender make the decision as to if they are going to take the risk to lend in a market. Underwriters can choose to “cut” the appraised value.

In my opinion, sometimes a “Low Appraisal” isn’t really a low appraisal but more of a reflection on the reality in that market at that time period. And, that period of time could be months and months after that Agent’s sign went into the ground in front of that home. Markets Change! After all, if the market indicators above in the 1004MC were known to only the Appraiser and not known by the Agent marketing the home, then can you now see how and why appraisers are armed with more knowledge of market interaction? And, in the case where median sales prices were declining, can you see how that if this is not known by listing agents the trouble this causes at appraisal time? This is the newer depth of market analysis we appraisers are seeing in the markets we operate in AND the market analysis the average real estate agent is not seeing in the same market. Can you understand now why Fannie Mae, Freddie Mac, FHA, RD, VA and Banks want appraisers looking at these numbers more closely? I as a home appraiser certainly can.

Sometimes low appraisals happen because the overpriced listing was based on what the seller wanted versus pricing that home based on market support. Sometimes low appraisals happen because the home wasn’t properly measured and may be smaller than stated. There is supposed to be a real estate professional measure each listing based on the National ANSI Standards, whether that person be the actual Agent, their team or an appraiser. Sometimes low appraisals happen because excessive seller paid concessions were not deducted from the comps used by Agent to establish the listing price. Fannie Mae instructs appraisers to deduct excessive seller paid concessions and expects Agents to do the same at listing time. And, when the comps or solds used in the appraisal state seller paid concessions of $6,000 to $8,000 to $10,000 to $12,000, then those excessive concessions will be deducted from those comps. If typical is $3,000, then in the example above, -$3000, $-5000, -$7,000 and -$9,000 will be deducted to bring these comps back down to market normalcy! Fannie Mae, FHA and lenders know that when there is no “skin-in-the-game” or downpayment, they are more likely to get that home back. And, there are some P.A.’s written to utilize excessive seller paid concessions to get people into housing. It’s as if the regulations are asking the appraisers to help correct this situation in the market.

A Decrease In Mortgage Lending In These Price Ranges? Is there a decrease in mortgage lending in these price ranges or just harder to qualify for a mortgage loan….or both?

Solds In Village St George Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $125,857 ($126,909 in 2009)
Average Sold Price Per Sq. Ft.: $89.61/sf ($86.39/sf in 2009)
Median Sold Price: $129,000 ($123,000 in 2009)
Number of Sales: 21 (11 in 2009)
Average Number of Days On Market: 94 (67 in 2009)
Low To High: $79,000 to $160,000
Number of Distressed Sales Noted In MLS: “3″
Current # Listings: 11, 3 Are Distressed Listings
Current Listings Price: $89,900 to $149,900 or $61/sf to $120/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2007 to December 31, 2010. This information was extracted on 1/31/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Minute, Baton Rouge Garden District, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors,

As a State Certified Home Appraiser in Louisiana and FHA/HUD approved appraiser since 1996, I can validate that FHA Home Loans have strict requirements of operational mechanical systems placed upon the home appraiser to inspect and verify. While home appraisers aren’t necessarily “home inspectors”, FHA home appraisers are required to verify that mechanical systems are functioning properly and that they would appear to have a reasonable life left.

HUD or FHA Home Appraisers are expected to be well versed on 2 major manual plus keeping up the “Mortgagee Letters” that offer amendments and updates to HUD policy. In fact, the statement many lenders want placed in reports is, “Condition: Overall Condition is: Average. No major repairs or functional inadequacies. MEETS FHA/RD MINIMUM STANDARDS for existing dwellings as outlined in HUD Handbooks 4150.2 and 4905.1 Requirements and all applicable Mortgage Letters). SFR Dwelling was determined to be decent, safe and sanitary. Subject is connected to public or community sewer. Mechanical Systems were on and operational. Attic was inspected and appears to individually meet FHA requirements.” No, the lenders don’t tell us to use “Average” but to state a condition rating. And, FMHA or Rural Development and VA loans also have these same requirements as well.

So, can a inoperable garbage disposal hold up an FHA loan closing until repaired? There are four (4) national HUD HOC’s or Homeownership Centers in the U.S.. For Louisiana, the HUD HOC is located in Denver, CO. I called the Denver HOC Appraiser Tech Support Department at 1-800-543-9378 for a verifiable answer to this question. I spoke with “Gary” and he said that NO, the inoperable garbage disposal WILL NOT HOLD UP A CLOSING because FHA doesn’t require appliances to be installed in homes. Gary said that includes Range/Ovens, Dishwashers or Garbage Disposals. Gary said that this is a “condition” issue and that FHA appraisers should apply deductions to the subject property if the comps used have appliances and superior functioning appliances.

BEFORE YOU BUY THAT HOME, GET A HOME INSPECTION!

In the early 2000′s with FHA’s introduction of the HUD Form “HUD-92564-CN” For Your Protection: Get A Home Inspection, FHA made the distinction between the home appraiser and the home inspector and strongly recommended home buyers obtain a home inspection. This appraiser also recommends you obtain a home inspection as well to know the true condition of mechanical system and a more accurate remaining economic life. Home appraisers are fairly limited on their knowledge of such systems but home inspectors are trained to know these systems and know them very well.

Just remember that if you as a home buyer receive notice that there are FHA mandated repairs on the home being purchased, know that this is for your benefit and that generally the seller will be required to repair these items prior to closing.

Bill Cobb, with Accurate Valuations Group, is a long time FHA Home Appraiser within the Greater Baton Rouge housing market. Bill can be contacted at 225-293-1500 or info@accuratevg.com .

First Garbage Disposal Source Photo: http://www.thehandyblog.com/disposal.php

Second Garbage Disposal Source Photo: http://appliancefactory.com/

Older, well built Cottage style homes where the wood floors creek! Tree lined street where your neighbors actually know one another! This is Capital Heights. Stephanie Riegel with Baton Rouge Business Report wrote about this market in 2007 here, “Old Neighborhood, New Heights“. And, the home prices in this market, during a national economic recession, continue to increase!

Solds In Capital Heights Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $194,343 ($190,716 in 2009)
Average Sold Price Per Sq. Ft.: $148.88/sf ($131.99/sf in 2009)
Median Sold Price: $200,000 ($195,000 in 2009)
Number of Sales: 23 (29 in 2009)
Average Number of Days On Market: 110 (88 in 2009)
Low To High: $123,000 to $329,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 10, 0 Are Foreclosures
Current Listings Price: $159,900 to $319,900 or $116/sf to $201/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/14/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Baton Rouge Estate Minute, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Capital Heights, Baton Rouge Garden District, 70806

Overall, there were nine (9) 2010 sales which brought the median sales price higher than 2009′s $304,400 and higher than 2008′s $294,500. In 2010 as compared to 2009, the Average Sales Price has declined 7.8%, Median Sales Price increased 3.5% and Average Sold Price Per Sq. Ft. declined $4.48/sf. There is one (1) foreclosure noted on Lake Stream Drive. And, that unfinished home that sat vacant for about 1 year or more was sold in 2010 for $148,000, an MLS sale, and is being finished. NOTE: If you are considering purchasing a home in Bellingrath Lakes and don’t want to pay too much, I would advise one to order a “Pre-Purchase Appraisal” from Accurate Valuations Group as there are at least two (2) current listings in Bellingrath Lakes well above market support.

Solds In Bellingrath Lakes Subdivision from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $293,700 ($318,550 in 2009)
Avg Sold $ Per Sq. Ft.: $119.27/sf ($123.75/sf in 2009)
Median Sold Price: $314,900 ($304,400 in 2009)
Number of “MLS” Sales: 9 (6 in 2009)
Average Number of Days On Market: 102 (188 in 2009)
Low To High: $155,000 to $162,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 4, 0 Are Foreclosures
Current Listings Prices: $285,000 to $379,000 or $120/sf to $149/sf. NOTE: The $142/sf listing on Bellingrath Lakes Ave, not on the lake, is grossly overpriced for this market based on the numbers or support above.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/10/2011. Yes, this appraiser has obtained permission from GBRAR MLS to use the above pricing chart!

Tags: Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Trends, Central City, Central La, Greenwell Springs, Bellingrath Lakes

Sherwood Forest Subdivision is possibly the second largest housing development within the Baton Rouge housing market. An indepth examination of the Sherwood Forest Housing Trends can tell us a great deal about the overall Baton Rouge Housing Market!

Solds In Sherwood Forest Subdivision from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $183,400 ($171,976 in 2009 or +6.6%)
Avg Sold $ Per Sq. Ft.: $74.91/sf ($73.35/sf in 2009 +2.1%)
Median Sold Price: $181,000 ($165,000 in 2009 +9.7%)
Number of “MLS” Sales: 52 (87 in 2009)
Average Number of Days On Market: 133 (126 in 2009)
Low To High: $75,000 to $342,000
Number of Sold REO/Foreclosures Noted In MLS: 11
Current # Listings: 57, 5 Foreclosures, 2 Short Sales
Current Listings Prices: $99,000 to $319,987 or $43/sf to $102/sf.

Recap: In 2010 as compared to 2009, the Average Sales Price increased by 6.6%, Median Sales Price increased by 9.7% and Average Sold Price Per Sq. Ft. increased by 2.1% or +$1.56/sf. The number of home sales were down from 87 in 2009 to 52 in 2010, down 40%, which is the same trend for the Baton Rouge home sales in general post Federal Tax Credit Expiration. But also note that the 2009 home sales of 87 could have been artificially propped up because the Federal Tax Credit was in place in 2009.

Hurricane Gustav Effect. I still believe that Hurricane Gustav applied a pschological punch to the Broadmoor and Sherwood Forest Markets after September 2008. The tree damage was enormous and in some cases it took up to two weeks to get utilities restored. It was a hot, humid and miserable two weeks for local residents, emotionally draining. In 2008, the median sales price was $175,000 based on 88 sales (high because of sales in earlier 2008 prior to the Hurricane), but then in 2009, the median sales price dropped 5.7% down to $165,000 based on 87 2009 sales. 2010 was the recovery year for home prices!

Oversupply Problem. There is still generally an oversupply of “58″ current MLS listings and that doesn’t include the many FSBO Listings. And, some listings are overpriced in this market….listings priced at $102/sf in Sherwood Forest in very high considering that the average buyer only paid $74.91/sf in 2010. If you’re considering a purchase of a Sherwood Forest home where the listing price is above $74.91/sf, I would strongly recommend a Pre-Purchase Home Appraisal from Accurate Valuations Group to ensure you don’t overpay in this older market. However, this oversupply problem has persisted since after Hurricane Gustav and the market hasn’t seem to mind dealing with this situation – hasn’t discounted this market because of the ample supply.

Foreclosures Are A Part Of The Baton Rouge Housing Market! While 2010 was the recovery year for home prices in Sherwood Forest, it was also a year for locals to deal with a significant foreclosure and short sale situation! Part of these are from those who purchased temporary Hurricane Katrina housing. I’m working on an appraisal right now where the New Orleans residents with a large family purchased 2 homes in Sherwood Forest on the same street and one of those homes in heading toward foreclosure.

According to GBRMLS, there were 11 GBRMLS reported foreclosure sales in 2010. Currently, according to GBRMLS, there are 5 foreclosure listings and 2 short sale listings. So, foreclosures are still a significant part of the Baton Rouge Housing Market! These 7 distressed listings in comparison to the 52 total sales in Sherwood Forest in 2010 make up 13% of that total.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2008 to December 31, 2010. This information was extracted on 1/3/2011.

Tags: Baton Rouge Appraisers, Baton Rouge FHA Appraisers, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Sherwood Forest

Solds In The Lakes At Saint Amant Subdivision from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $206,181 ($213,317 in 2009 or -3.35%)
Avg Sold $ Per Sq. Ft.: $96.36/sf ($102.41/sf in 2009 -5.9%)
Median Sold Price: $203,900 ($215,950 in 2009 -5.6%)
Number of “MLS” Sales: 9 (6 in 2009)
Average Number of Days On Market: 150 (101 in 2009)
Low To High: $191,000 to $229,900
Number of Sold REO/Foreclosures Noted In MLS: 1 Short Sale
Current # Listings: 2, 1 Is A Foreclosure
Current Listings Prices: $149,000 to $235,000 or $75/sf to $98/sf.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/3/2011. Yes, this appraiser has obtained permission from GBRAR MLS to use the above pricing chart!

Solds In Shenandoah Hills Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $146,357 ($133,260 in 2009)
Average Sold Price Per Sq. Ft.: $108.12/sf ($99.34/sf in 2009)
Median Sold Price: $149,500 ($132,500 in 2009)
Number of Sales: 7 (5 in 2009)
Average Number of Days On Market: 44 (48 in 2009)
Low To High: $129,900 to $152,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 3, 0 Are Foreclosures
Current Listings Price: $140,900 to $150,900 or $105 to $113/sf

The Median Sales Price has increased from $132,500 in 2009 and $144,000 in 2008 to $149,500 in 2010.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2010 to December 31, 2010. This information was extracted on 1/1/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Baton Rouge Estate Appraisers, Baton Rouge FHA Appraisers, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Trends,

Solds In Camelot Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $180,949 ($184,741 in 2009)
Average Sold Price Per Sq. Ft.: $74.83/sf ($76.49/sf in 2009)
Median Sold Price: $181,500 ($189,000 in 2009)
Number of Sales: 6 (11 in 2009)
Average Number of Days On Market: 117 (133 in 2009)
Low To High: $140,000 to $228,000
Number of Sold REO/Foreclosures Noted In MLS: 2
Current # Listings: 1, 1 Is A Foreclosure
Current Listings Price: $148,000 or $64/sf

The Median Sales Price has declined from $189,000 in 2009 to $181,500 in 2010. The Average Sold Price Per Sq. Ft. has declined from $76/sf in 2009 to $75/sf in 2010 (rounded)!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2010 to December 31, 2010. This information was extracted on 1/1/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Baton Rouge Estate Appraisers, Baton Rouge FHA Appraisers, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Trends, Camelot

I recently completed a home appraisal assignment on Summer Drive in Merrydale Subdivision on an average 1,000sf home, in really nice condition, for this subdivision and noticed these observations. Actually, I’m reporting on ALL of the subdivisions in the Merrydale area state that “Merrydale” in this subdivision name. There appears to be some decline due to REO or foreclosure activity.

Solds In The Merrydale Subdivisions from 1/1/2010 to 12/16/2010 revealed:

Average Sales Price: $65,733 ($63,500 in 2009)
Average Sold Price Per Sq. Ft.: $54/sf ($61/sf in 2009)
Median Sold Price: $63,500 ($87,450 in 2009)
Number of Sales: 6 (14 in 2009)
Average Number of Days On Market: 76 (52 in 2009)
Low To High: $26,900 to $103,500
Number of Sold REO/Foreclosures Noted In MLS: 3
Current # Listings: 4, 0 Are Foreclosures
Current Listings Prices: $69,900 To $115,500

The 6 sales in 2010 versus the 14 in 2009 reflect the current stalling of this market post Federal Tax Credit Expiration. Without the tax credit, there doesn’t appear to be as much incentive to purchase a home. This slowdown in homes sales in a trend throughout the Baton Rouge housing market in latter 2010.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 16, 2010. This information was extracted on 12/16/2010.

Tags: Baton Rouge Appraisers, Baton Rouge Housing, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Trends, Baton Rouge, Appraisers in Baton Rouge, Merrydale, 70812

This graph below indicates that the four Parishes that make up Greater Baton Rouge are in the 30 to 50% risk category, meaning that there’s a 30% to 50% chance of lower home prices in the next 2 years.

This chart below indicates that the actual Baton Rouge ranking is 40.5% risk category, meaning that there’s a 40.5% chance of lower home prices in the next 2 years.

This chart below indicates that in 2009, Baton Rouge had a lower chance of price appreciation and in 2010, there was more of a chance of price stability.

Sources:

http://www.pmi-us.com/PDF/q3_10_pmi_eret.html

http://www.pmi-us.com/PDF/q4_10_pmi_eret.html

http://www.pmi-us.com/media/pdf/products_programs/eret/ERET_Appendix_Q2_10.pdf

]]> http://www.batonrougerealestateappraisal.com/2010/11/baton-rouge-housing-trends-2010-pmi-study-shows-moderate-risk-40-percent-chance-of-home-price-declines/feed/ 0 http://www.batonrougerealestateappraisal.com/2010/10/appraisers-in-baton-rouge-report-the-housing-numbers-wimbledon-estates-2010/ http://www.batonrougerealestateappraisal.com/2010/10/appraisers-in-baton-rouge-report-the-housing-numbers-wimbledon-estates-2010/#comments Fri, 08 Oct 2010 10:57:37 +0000 Baton Rouge Real Estate Appraisal http://www.batonrougerealestateappraisal.com/baton-rouge-appraisers/appraisers-in-baton-rouge-report-the-housing-numbers-wimbledon-estates-2010/ http://www.batonrougehomeappraisal.com/ – Appraisers In Baton Rouge Report The Housing Numbers: Wimbledon Estates 2010

Solds In Wimbledon Estates from 1/2010 to 10/08/2010 revealed:
Average Sales Price: $208,750 ($215,500 in 2009)
Average Sold Price Per Sq. Ft.: $95/sf ($99/sf in 2009)
Median Sold Price: $198,250 ($220,000 in 2009)
Number of Sales: 4
Average Number of Days On Market: 65
Low To High: $173,500 to $265,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 2, 0 Are Foreclosures
Current Listings Prices: $259,900 To $298,999

Data was used with the permission of the GBRAR MLS from search dates 1/1/2005 to 10/07/2010, extracted on 10/7/2010.

Solds In Ascot Subdivision from 1/2010 to 10/02/2010 revealed:
Average Sales Price: $204,483
Average Sold Price Per Sq. Ft.: $111/sf ( $115/sf in 2009 )
Median Sold Price: $199,950 ( $208,000 in in 2009 )
Number of Sales: 6 ( 7 Sales In 2009 )
Average Number of Days On Market: 56
Low To High: $175,000 to $248,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current MLS # Listings: 0, 0 Are Foreclosures

There is 1 FSBOBR.COM Listing for $234,500 for 2,330sf or $100.64, Click Below for more information on this home.

Data for this housing market report was used with permission of GBRAR MLS, search dates from 1/1/2005 to 10/02/2010, extraction data 10/02/2010.

]]> http://www.batonrougerealestateappraisal.com/2010/10/baton-rouge-housing-trends-ascot-subdivision-2010-market-report/feed/ 0 http://www.batonrougerealestateappraisal.com/2010/10/baton-rouge-housing-trends-greenwood-estates-2010-housing-update/ http://www.batonrougerealestateappraisal.com/2010/10/baton-rouge-housing-trends-greenwood-estates-2010-housing-update/#comments Sat, 02 Oct 2010 04:27:48 +0000 Baton Rouge Real Estate Appraisal http://www.batonrougerealestateappraisal.com/baton-rouge-real-estate-appraisal/baton-rouge-housing-trends-greenwood-estates-2010-housing-update/ http://www.batonrougerealestatebuzz.com/ – Baton Rouge Real Estate Buzz: Greenwood Estates 70811 2010 Housing Update!

Solds In Greenwood Estates from 1/2010 to 10/01/2010 revealed:
Average Sales Price: $107,375
Average Sold Price Per Sq. Ft.: $71/sf
Median Sold Price: $103,250
Number of Sales: 4
Average Number of Days On Market: 122
Low To High: $64,000 to $159,000
Number of Sold REO/Foreclosures Noted In MLS: 2
Current # Listings: 3, 0 Are Foreclosures
Current Listings Prices: $127,900 To $209,900

This data for this report was used with the permission of the GBRAR MLS from dates 1/1/2005 to 10/01/2010, extracted on 10/01/2010.

These two photos below were taken in Rolling Meadows 70817 and Bellingrath Lakes 70739 during Saturday’s home appraisal inspections and reveal that LSU Tiger Spirit is alive and well in the Greater Baton Rouge community!

There’s a new report out by CNNMoney.com and eCreditDaily.com that says 950,000 Taxpayers Must Repay Homebuyer Tax Credit according to the U.S. Treasury. Read the entire articles at the links above. Buzz is providing a few snippets below.

CNNMoney.com states, “Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government. According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money. The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased. Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home’s purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years. Had they waited to buy until 2009, they could have gotten a much sweeter deal. Congress extended the credit and made it a refund rather than a loan.”

eCreditDaily.com states, “Nearly 1.8 million taxpayers claimed a total of almost $12.5 billion under the popular first-time homebuyer tax credit program, but more than 950,000 taxpayers will be required to repay the credits because their homes were purchased in 2008, according to a U.S. Treasury report released today. And many more may have to repay the credits “if the homes cease to be the primary residences of the taxpayers within 36 months,” according to the report released by the U.S. Treasury Inspector General for Tax Administration (TIGTA). TIGTA said the Internal Revenue Service is improving its methodology to more precisely determine how many have to repay the tax credits. Nonetheless, the announcement will come as a shock to taxpayers who purchased homes to take advantage of a program meant to revitalize the depressed housing market.
The Housing and Economic Recovery Act of 2008 created a new “First-Time Homebuyer Credit” equal to 10 percent of the purchase price of the home, limited to a maximum amount of $7,500. But that original credit served as an interest-free loan that must be repaid over a 15-year period. The following year, the homebuyer tax credit program was expanded and converted into a full credit that does not have to be repaid.”

To view the Treaury report, go to: http://www.ustreas.gov/tigta/auditreports/2010reports/201041086fr.pdf.

Image Source: http://ecreditdaily.com/

Tags: Baton Rouge Real Estate, Homebuyer Tax Credit, Mortgages

Solds In River Oaks from 1/09 to 6/19/10 revealed:
Average Sales Price: $129,370
Average Sold Price Per Sq. Ft.: $87/sf
Median Sold Price: $132,500
Number of Sales: 10
Low To High: $78,000 to $158,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 5
Current Listings Prices: $118,000 To $225,000

Author’s Bio:

Bill’s company, Accurate Valuations Home Appraisal Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:

Office: 225-293-1500, Cell: 225-953-0638

Fax: 1-866-663-6065

info@accuratevg.com

http://www.accuratevg.com/

On March 29, 2009, I posted the video below of new Baton Rouge Steel Homes under construction. Above and Below this video is is the follow up photo and video in May 2010 of what these steel homes turned out to look like. Enjoy!

Realtor.org is reporting that Baton Rouge Metro Area (Greater Baton Rouge) experienced a median sales price increase of +4.3% since Q1 2009. The article is here and the charting is below.

From the GBRAR MLS Stats from 5/2009 to 5/2010 for new homes to 5 year old homes, extracted on 5/9/2010, the months supply of inventory appears to have declined from a 13 month supply in May 2009 to 3 months in April 2010. The median sold price in this period has been $283,000, average sold price $135/sf taking about 116 days to sell a home in Fairhill.

Tags: Baton Rouge Real Estate, Baton Rouge Real Estate Photos From The Field, Real Estate Baton Rouge, Fairhill At Bluebonnet, 70810, Baton Rouge Real Estate Buzz, Baton Rouge Real Estate Tube

As of Feb. 1, associations with two or more units must be FHA-certified before the agency will back a mortgage. The previous policy of allowing one-time, or “spot approval,” for individual units was rescinded.

While it’s not the FHA home appraiser’s responsibility to determine if a condo project is approved for mortgage lending, it is good to know the actual FHA criteria for an approved condo project.

The article is located here and here are some snippets:

“Among the certification criteria:

–All units and common elements must be completely built.

–No single entity can own more than 10 percent or more than one of the units, whichever is greater.

–At least 50 percent of the units must be owner-occupied.

–No more than 15 percent of the units can be more than 30 days delinquent on assessments.

–No more than 25 percent of the total floor area can be used commercially.

–At least 10 percent of the annual budget must go to reserves.

–The right of first refusal is OK as long as it isn’t used to discriminate.

In addition, associations must submit copies of their budget, insurance policy, declaration and bylaws, plat of survey, any management agreement, analysis of outstanding or pending litigation, and minutes from the last two meetings.

Associations can become certified in one of two ways. The first is to wait for an FHA buyer to come along and let the buyer’s lender do the work. Certain lenders, typically the largest ones, are eligible to certify associations under the Direct Endorsement Lender Review and Approval Process, or DELRAP. The association supplies the necessary documents and information.”

To Read the entire article, visit The ABC’s of FHA condo requirements

Solds In Rushmore from 1/1/2009 to 12/31/2009 revealed:
Average Sales Price: $138,800
Average Sold Price Per Sq. Ft.: $99/sf
Median Sold Price: $142,000
Number of Sales: 9
Number of Sold REO/Foreclosures Noted In MLS: 1

Solds In Rushmore from 1/1/2010 to 04/28/2010 reveal:
Average Sales Price: $136,000
Average Sold Price Per Sq. Ft.: $101.30/sf
Median Sold Price: $136,000
Number of Sales: 2
Number of Sold REO/Foreclosures Noted In MLS: 0

Home sales in both periods ranged from $105,000 up to $160,200. The average sold price per sq. ft. increased by over $2/sf into 2010. And, it’s difficult to call a trend based only on 2 sales in 2010. Now, Rushmore is built up with both newer and older homes. There are 6 total listings with 2 pending or under contract. Two of the older 21-30 yr old homes are listed for $97/sf and $98/sf while one of the newer 6-10 yr old homes is listed at $104/sf.

“Sub-Market” comparison is below. A Sub-Market comparison is comparing the subject home or sudivision to similar homes within that market. Sub-Market search parameters for a 10 year old 1,400sf in Rushmore might be other homes in MLS Area 41 with 150sf of 1400sf and within 5 years of 10 years old, which might look like 1250sf to 1550sf and ages 5 to 15 years old.

NOTE: Based on Detached Single Family information from the Greater Baton Rouge Association of REALTORS\MLS. This information was extracted on 04/28/2010.

In 2010 YTD, despite a few foreclosures, Shenandoah Estates is still outpacing the majority of the Baton Rouge housing market with a 10.43% increase in median sold price. “YTD” is year-to-date.

Median Sold Price Increase. In 2009, the overall median sold price was $196,500. As of this search, the median sold price has risen to $217,000 or +10.43%.

Average Sold Price Per Sq. Ft. Increase. In 2009, overall it was $89.48/sf. As of this search, the average sold price per sq. ft. has been risen to $94.23/sf or $4.75/sf, which is a +5.31%.

Average Days On The Market Decrease. In 2009, it took approximately 106 to sell a home. In 2010 YTD, it has taken 43 days to sell a home, which is 63 less days or a reduction in marketing time of 59%.

NOTE: Based on Detached Single Family information from the Greater Baton Rouge Association of REALTORS\MLS for the period 01/01/2009 through 12/31/2009 versus 01/01/2010 to 04/22/2010 For Shenandoah Estates. This information was extracted on 12/31/2009 and 04/22/2010.

Tags: baton rouge homes, baton rouge housing, baton rouge real estate, baton rouge real estate agents, baton rouge real estate appraisers, baton rouge real estate trends, baton rouge realtors, shenandoah estates, 70817, baton rouge real estate buzz