In this Baton Rouge Housing updating, January 22-28, 2012 are reported for the eight (8) parish MSA including East Baton Rouge, Ascension, Livingston and West Baton with  Iberville, East and West Feliciana and Pointe Coupee combined as “ALL”. 

Other Greater Baton Rouge Housing Statistics January 22-28:

LISTINGS:

Total Current Listings: 5,035

Foreclosure Listings: 490 or 10% of total listings

3rd Party Active Listings: 330 or 7% of total listings

Short Sale Active or Potential SS Listings: 250 or 5% of total listings

SOLDS From 01/22/2012 – 01/28/2012:

Total Number of Solds: 65

Foreclosures Sold: 14 or 22% of Solds

3rd Party Solds: 8 or 12% of total solds

Short Sales Solds: 8 or 12% of total solds

Foreclosure, 3rd Party and Short Sales Solds: 30 or 46% of all solds

Low To High Sales Prices: $16,000 to $475,000

New Home Sales: 18 or 28% of all sales

East Baton Rouge MLS Area with most home sales: 43 with 9 sales

CUMULATIVE TOTALS FOR 2012Total Number of Sales: 290

ASCENSION: 65
EAST BATON ROUGE: 149
EAST FELICIANA: 0
LIVINGSTON: 59
IBERVILLE: 2
POINTE COUPEE: 8
WEST BATON ROUGE: 6
WEST FELICIANA: 1

Foreclosures Sold: 69 or 24% of Solds

3rd Party Solds: 33 or 11% of total solds

Short Sales Solds: 47 or 16% of total solds

Foreclosure, 3rd Party and Short Sales Solds: 149 or 51% of all solds

AVERAGE SALES PRICES FOR LOCAL PARISHES:
EAST BATON ROUGE: $192,043
ASCENSION: $190,747
LIVINGSTON: $144,439
OTHER: $158,993

MEDIAN SALES PRICES FOR LOCAL PARISHES:
EAST BATON ROUGE: $158,500
ASCENSION: $166,450
LIVINGSTON: $138,900
OTHER: $159,900

AVERAGE DAYS ON MARKET (CONTINUOUS):
EAST BATON ROUGE: 116
ASCENSION: 105
LIVINGSTON: 133
OTHER: 157

LISTING-TO-SALES PRICE RATIO (What Percent Below Listing Price Home Sell For):
EAST BATON ROUGE: 97%
ASCENSION: 99%
LIVINGSTON: 97%
OTHER: 92%

_____________________________________________________________________

Important Video: Foreclosure Mythbusting by John C. Jones

_____________________________________________________________________

OTHER NATIONAL AND LOCAL HOUSING NEWS:

December Existing-Home Sales Show Uptrend

 Business Report Releases Baton Rouge’s 10 most expensive home sales of 2011

Juban Crossing Developer: Site work continues; deals with retailers in the works

 _____________________________________________________________________

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of 01/01/2012 to 01/28/2012.  This information was extracted on 01/29/2012.  Excludes Manufactured Housing.

Baton Rouge Housing Reports Dot Com says,

2011: The Year Of Correction For East Baton Rouge Real Estate Prices .

See the complete report at the link above.

The well anticipated correction in local home prices, based on local incomes, the insane escalation of home prices after Hurricane Katrina, and the same housing euphoria that gripped our Nation from 2004 to 2007, has finally arrived. Despite the appearance of only a -2.13% decline, most of the 25 subdivisions examined belwo show far worse percentage declines indicating that for Baton Rouge Real Estate, 2011 was the anticipated “Year of Correction”!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of 01/01/2005 to 12/27/2011. This information was extracted on 12/27/2011. Statistics are based on total residential MLS sales reported to the GBRMLS as of 12/26/2011 6:01:00 PM

Baton Rouge Real Estate News

Why Baton Rouge Housing Reports?

Because a home is the largest, most important investment most locals make in their lifetimes. Because of the importance of getting this decision right, housing market facts, trends and analysis are provided to help locals execute competent, informed home purchase or home selling decisions.

There’s a new Premier web video resource in Baton Rouge with a residential focus: Baton Rouge Housing Reports Dot Com. This site offers the good news in our market as well as the on-going correction, tips on what improvements really add value, local REALTOR® video update of the month, local real estate expert interviews, local remodeler’s tips, trends videos, monthly and quarterly reports, Top 150 Subivisions trends, current housing charts and stats, gbrmls stats, local NAR stats, special investigative series and a long list of local online resources. Visit Us for the scoop on local housing.

Baton Rouge Housing Reports Dot Com – Local Real Estate Professionals Providing Trends, Analysis & Tips Helping Locals Make Informed Housing Decisions!

Keywords: Baton Rouge Real Estate, Baton Rouge Homes, Baton Rouge Housing, East Baton Rouge, Greater Baton Rouge, Baton Rouge Realtors, Baton Rouge Real Estate Agents, Baton Rouge Homes For Sale, Baton Rouge Home Appraiser, Baton Rouge Home Appraisal

Nicholson Lakes Subdivision has experienced substantial declines since the 2007 highs, from $193,000 and $131/sf down to $174,000 and $116/sf in 2011. If you are considering a Baton Rouge Real Estate Home Purchased in Nicholson Lakes, I would strongly recommend obtaining a pre-listing appraisal so you don’t overpay as there are homes listed as high as $130/sf, which will not appraise for near that amount now in 2011.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of 01/01/2007 to 12/03/2011. This information was extracted on 12/03/2011.

What Are These Baton Rouge Vote For Amendment #1 To Stay Tax Free Signs About?

The Louisiana REALTORS® Association is supporting a constitutional amendment on the November 19th ballot to prohibit any new real estate transfer taxes in the state.

A vote FOR Amendment #1 on November 19 will…

*Protect your home from double taxation. Most homeowners in Louisiana already pay property taxes. Transfer taxes are simply another tax on the same piece of property.

*Keep Louisiana free from additional taxes, especially those that unfairly target homeowners and homebuyers.

If approved by Louisiana voters, we believe this will be an extremely positive development for residential and commercial consumers of real estate – and good for the overall real estate market and economy in Louisiana.

Monitor this important initiative thoughout the fall at STAYTAXFREE.com. Browse the site for related news, background on the issue, answers to frequently asked questions, and learn how you can get involved.

A St. Petersburg Florida REALTOR® and Appraiser has some advice for Greater Baton Rouge Locals when it comes to sell their home in this 2011 market: Stick To New Paint and Carpet To Get Your Home Sold.

There’s a new article out entitled, “Low Appraisals Blamed for Scuttling Real Estate Deals“. In the article, the reason given for Low Appraisals is, “Appraisals routinely come in under the negotiated sales price, often driven down by the glut of foreclosed houses and short sales with rock-bottom prices.”.

THE POINT OF THE ARTICLE IS TO CAUTION ON SPENDING TOO MUCH ON RENOVATIONS TO HELP GET THE HOME SOLD!

In the article, the “Capetz” family invested an extra $11,000 on a new roof and air conditioner to help their home sell ($11,000 for a new roof and central heat and air is really cheap). In July, they accepted an offer of $142,000 only to have the home sale fall through because home appraisal came in at only $130,000.

GOOD ADVICE! Quoted from the article, “Frank Gregoire, that St. Petersburg FL and Appraiser who headed the Florida Real Estate Appraisal Board for eight years during the housing boom, advised sellers to stick with new paint and carpet.

“If you make a major improvement, you should expect to enjoy that improvement. Don’t treat it as an investment,” he said. “It’s unlikely you’ll get what you paid for it.”

How Does This Apply To The Baton Rouge Housing Market? First, we’re talking about the under $150,000 market. Baton Rouge Housing Market doesn’t face near the number of foreclosures or short sales as in Florida. However, with that said, one (1) issue I see in Baton Rouge Housing is overimproved homes, thanks partially to HGTV. Example: A $95,000 home in a first time homebuyer starter neighborhood with $5,000 in Slab Granite Counters. Or, in the photo below, a $160,000+/- local economy home with an elaborate approximate $10,000 Kitchen Slab Granite Plus Tile Backsplash Upgrade of which the market still hasn’t chosen to pay for.

HGTV Ruined Some Homeowners! Since the early 2000′s, with easy credit and HGTV, some locals went overboard on overimproving their homes on items that the market didn’t reward them for at the time of resale. Instead of keeping their homes at the quality of construction levels typical in their subdivision, they chose to invest $15,000 to $50,000 above that level and thus overimprove on items that the market wouldn’t reward dollar-for-dollar on at resale time.

The Point Of This Baton Rouge Home Appraisal Article: When Updating Your Home for a listing, pay attention to your price range, what other homes in your subdivision have in terms of quality and mirror those homes and features. While Slab Granite Counters certainly help a home sell, they are not common nor a wise investment for homes under $150,000. If your home needs a new roof because it’s old and for the seller’s appraisal to pass and qualify for an FHA or RD financing, then that might be a wise purchase, which might not return dollar-for-dollar. It might be wise to stick with just new paint and carpet and if listings feedback says do more updates, then you can proceed further. And, if you need a Pre-Listing Appraisal to help properly and accurately price your home, visit: http://gbrprelistingappraisals.com/

NOTE: Frank Gregoire is a friend and Appraiser Peer of mine. Frank writes the “Appraiser Active Blog” and enjoys the leisure life as an Appraiser along with Florida Coast with his wife, Fran. And, Frank likes to rub this in on Facebook weekly about how spoiled he is to live, play and work in paradise!

Author: Bill Cobb with Accurate Valuations Group (Greater Baton Rouge Home Appraisals).

Image Source: Top Image Purchased @ Bigstockphoto.com

A St. Petersburg Florida REALTOR® and Appraiser has some advice for Greater Baton Rouge Locals when it comes to sell their home in this 2011 market: Stick To New Paint and Carpet To Get Your Home Sold.

There’s a new article out entitled, “Low Appraisals Blamed for Scuttling Real Estate Deals“. In the article, the reason given for Low Appraisals is, “Appraisals routinely come in under the negotiated sales price, often driven down by the glut of foreclosed houses and short sales with rock-bottom prices.”.

THE POINT OF THE ARTICLE IS TO CAUTION ON SPENDING TOO MUCH ON RENOVATIONS TO HELP GET THE HOME SOLD!

In the article, the “Capetz” family invested an extra $11,000 on a new roof and air conditioner to help their home sell ($11,000 for a new roof and central heat and air is really cheap). In July, they accepted an offer of $142,000 only to have the home sale fall through because home appraisal came in at only $130,000.

GOOD ADVICE! Quoted from the article, “Frank Gregoire, that St. Petersburg FL and Appraiser who headed the Florida Real Estate Appraisal Board for eight years during the housing boom, advised sellers to stick with new paint and carpet.

“If you make a major improvement, you should expect to enjoy that improvement. Don’t treat it as an investment,” he said. “It’s unlikely you’ll get what you paid for it.”

How Does This Apply To The Baton Rouge Housing Market? First, we’re talking about the under $150,000 market. Baton Rouge Housing Market doesn’t face near the number of foreclosures or short sales as in Florida. However, with that said, one (1) issue I see in Baton Rouge Housing is overimproved homes, thanks partially to HGTV. Example: A $95,000 home in a first time homebuyer starter neighborhood with $5,000 in Slab Granite Counters. Or, in the photo below, a $160,000+/- local economy home with an elaborate approximate $10,000 Kitchen Slab Granite Plus Tile Backsplash Upgrade of which the market still hasn’t chosen to pay for.

HGTV Ruined Some Homeowners! Since the early 2000′s, with easy credit and HGTV, some locals went overboard on overimproving their homes on items that the market didn’t reward them for at the time of resale. Instead of keeping their homes at the quality of construction levels typical in their subdivision, they chose to invest $15,000 to $50,000 above that level and thus overimprove on items that the market wouldn’t reward dollar-for-dollar on at resale time.

The Point Of This Baton Rouge Home Appraisal Article: When Updating Your Home for a listing, pay attention to your price range, what other homes in your subdivision have in terms of quality and mirror those homes and features. While Slab Granite Counters certainly help a home sell, they are not common nor a wise investment for homes under $150,000. If your home needs a new roof because it’s old and for the seller’s appraisal to pass and qualify for an FHA or RD financing, then that might be a wise purchase, which might not return dollar-for-dollar. It might be wise to stick with just new paint and carpet and if listings feedback says do more updates, then you can proceed further.

NOTE: Frank Gregoire is a friend and Appraiser Peer of mine. Frank writes the “Appraiser Active Blog” and enjoys the leisure life as an Appraiser along with Florida Coast with his wife, Fran. And, Frank likes to rub this in on Facebook weekly about how spoiled he is to live, play and work in paradise!

Author: Bill Cobb with Accurate Valuations Group (Greater Baton Rouge Home Appraisals).

Image Source: Top Image Purchased @ Bigstockphoto.com

Correcting Average Sold Price Per Square Foot. An analysis of Shenandoah home sales prices from 2010 versus 2011 Year-To-Date shows a -4.4% decline or correction. In 2010, there were 46 total sales with an average sales price of $92.61/sf. In 2011 YTD, there has been 41 total sales with an average sales price of $88.55/sf, which calculates to a -4.4% loss. However, at $88.55/sf, this is only close to $1.00 off the 2006, 2008 and 2009 support levels. AND, with those homes set to close from summer buying season, the 2011 numbers could improve.

Correcting Average Sold Price and Median Sold Prices. These two (2) charts below show a fairly strong correction in sold prices since 2009 and September 2010. However, Shenandoah Estates is one of the largest subdivisions in Baton Rouge with varying sizes of homes. It did appear from analysis that more of the smaller homes sold in 2011 than in 2010 contributing to the visual declines below. No, I don’t believe it’s at all possible for declines of -19% since September 2010 as the median sold price chart shows. This is why I place the Average Sold Price Per Sq. Ft. chart above first in the series.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2006 to September 13, 2011. This information was extracted on 09/13/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Author: Bill Cobb with Greater Baton Rouge’s Accurate Valuations Home Appraisal Group

There’s so much confidence in this neighborhood that a buyer, in the midst of a national recession, paid $791,500 or $154/sf for 6353 Double Tree Drive, see photo below. 6016 North Shore Drive sold for $464,000 in 1/2011 for $157/sf. A home on North Shore Ct is under contract for an unknown price and listed for $529,500 or $159/sf. Of course, these are homes on the lake and are the exception and not the typical sales price. For 2011, the median sales price for the year is $337,319 or $113/sf.

If there’s any negative report, it’s the 12% REO or sold foreclosure rate or 17 out of 140 total sales.

This home at 5741 Lake Shadow Drive sold for $355,000 or $129/sf in 6/2011

Entrance Sign

6353 Double Tree Drive (Private Entrance)

From 01/01/2006 to 08/28/2011, GBRMLS is showing 17 REO or Foreclosure sales in The Lakes At White Oak Subdivision out of 140 total sales or about 12%, which is fairly high for East Baton Rouge Parish.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2006 to August 28, 2011. This information was extracted on 08/28/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Author: Bill Cobb, Appraiser with Accurate Valuations Group

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

The GBRMLS Trends chart below shows a substantial home price correction taking place within Baton Rouge’s Sherwood Forest Subdivision. The Average Sold Price Per Square Foot has declined from $80.66/sf in 2007 down to $68.61/sf in 2011, back to 2005 levels and a -15% correction. The Median Sold Price has declined from $181,000 in 2010 down to just $165,500 in 2011, a -9% correction (rounded). Some of this recent decline is due to foreclosure activity. And, the reason the chart shows a dip in 2009 to $165,000 was due to the devastating impact of Hurricane Gustav on this heavily treed neighborhood. In fact, there are still some homes that were renovated in 2009, after Hurricane Gustav in 2008, that are still on the market and haven’t yet sold.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to August 23, 2011. This information was extracted on 8/23/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

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/

Below is a compare and contrast showing the marketing differences in perspective of home listing photo at normal elevation versus elevated elevations. Local Real Estate Agents prefer to combine normal photos and elevated photos in their marketing plan for their listings.

This service is also included in Bill Cobb’s AVG Pre-Listing Appraisals whether those are ordered by Local Real Estate Agents or for those selling FSBO without an Agent, see Greater Baton Rouge Pre-Listing Appraisals

Tags: pap, pole aerial photography, pole photography, baton rouge, baton rouge real estate, baton rouge homes, Baton Rouge Real Estate, Baton Rouge Housing, East Baton Rouge, Greater Baton Rouge, Baton Rouge Realtors, Baton Rouge Real Estate Agents, Baton Rouge Homes For Sale, baton rouge real estate elevated photos

GBRMLS data for the Forest Oaks Subdivision revealed these interesting findings. From 2004 to 2009, the median sales price increased from $84,700 to $106,200. From 2009 to 2010 to 2011, median sales price declined from $106,200 down to $97,500 and $93,000. There are currently 13 MLS Listings from $46,500 to $115,000. Ten of these are active listing at an average price of $74/sf, which is substantially above market. In contrast, the 3 pending listings are pending at an average $54/sf and the 6 home sales in Forest Oaks in 2011 sold for an average of $62.88/sf. SO, If you plan on buying a home in Forest Oaks in 2011, ask yourself why these 10 listings are priced $10.67/sf ABOVE what the other 6 homes sold for and then order a Greater Baton Rouge Pre-Purchase Appraisalto make sure you don’t pay too much for Baton Rouge Real Estate.

CHART OF FOREST OAKS HOME SALES SINCE 2004

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2004 to July 26, 2011. This information was extracted on 7/26/2011. 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/

According to the University Hills Civic Association website, “University Hills has one of the widest entrances of any subdivision in Baton Rouge. And, it has the one of the oldest and most historic live oaks on public property in the city. The larger Centennial oak has been estimated to be nearly 300 years old. (In 1979 , it was designated “Legacy Oak” 0002 by the City-Parish Beautification Commission, meaning that it was the second oldest live oak on public property in East Baton Rouge.) The other oak, on the corner of Delgado and Tulane Drives, is approximately 200 years old.”

Legacy Oak Designation Above!

The Homes Of University Hills Below Ranging in sizes from 768sf up to 4,168sf

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/

THE GOOD NEWS!

There’s Confidence in the local Greater Baton Rouge housing market! The home purchase appraisal orders have really picked up this week with momentum like I haven’t seen yet this year. Just this week, we’ve seen a surge of orders for home purchases. Bill Cobb, Appraiser

THE NOT-SO GOOD NEWS!

Baton Rouge Business Report‘s Real Estate Weekly reports the housing market as “flat” in Louisiana and down in Baton Rouge.

According to the Businss Report, “The number of houses sold in Louisiana during the first quarter was virtually unchanged from the first three months of 2010. There were 5,604 homes sold through the end of March, according to figures from the Louisiana Realtors. That’s 0.6% more than the 5,568 homes sold through the first quarter of 2010. Houma-Thibodaux was the strongest metro market, with 202 homes sold during the quarter, a 14.1% increase over the first three months of 2010. The Lake Charles market also saw a double-digit percentage increase, with 289 sales, 10.3% more than the 262 sold in the first quarter of 2010. Home sales were up 7.9% in New Orleans to 1,837, 2.6% in Lafayette to 640, and 2.5% in Alexandria-Pineville to 248. Shreveport-Bossier City had the biggest sales drop, falling 12.8%. There were 775 homes sold during the first quarter, compared with 889 the year before. Monroe had a 4% drop in sales, to 388; and Baton Rouge was down 3.3%, to 1,225. Statewide, the average sale price of a home fell by 1.5%, from $177,381 to $174,687. For the rest of Real Estate Weekly, click here.

AND, LOCAL AGENT, RYAN SPENCER, OFFERS HIS UPDATE!

“1st Quarter 2010 to 2011 Avg. List Price $198,078/$192,161
Avg. Sale Price $191,506/$185,769
Avg. Days on the Market 95/104
List to Sale Price Ratio 96.68%/96.67%
Months of Inventory 9.19/10.76

The home buyer tax credit was in effect last year which may have boosted sales numbers in the first quarter of 2010. Despite tough economic times our market is still pretty strong overall. If you have any questions please contact me at 225-505-5619 or email me at ryan.spencer@coldwellbanker.com“

A recent home appraisal in and analysis of Lakes At Oak Grove Subdivision revealed this interesting finding. From 2008 to 2011, the median sales price has declined from $237,800 to $227,800 to $229,700 to now $235,000 into 2011 based only on 1 sale. So, 2008 was the post Hurricane Katrina “High” year followed by 2 years of declines. 2011 at $235,000 is higher than 2009 and 2010. Again, 2011′s $235,000 is only based on 1 sale while 2010′s $229,700 was based on 5 sales. The Listing-To-Sales-Price-Ratio at 98% is the highest since 2007.

TWO MLS CHARTS OF ALL HOME SALES SINCE 2005

The Chart below shows all home sales since 2005. The median sales price is still down -1.6% since the high in 2007. The median sales price has risen 4% since May 2010. But Again, this chart’s is greatly weighed upward based on this one (1) 2011 sale of $235,000.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 8, 2011. This information was extracted on 5/8/2011. 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/

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 Park Forest East revealed this interesting finding. From 2009 to 2010, the median sales price remained stable at $135,000. However, in 2011, based on 3 sales, 2 of which were foreclosures, the median sales price has slipped to just $81,000. Again, this is only based on 3 sales in the first 4 months of 2011. In 2010, there were 11 total sales. Again, this drop is due to foreclosures and/or distressed sales.

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 major correction.

The Chart below shows a considerable correction since May 2010 for home comparable to a 1,400sf in Zip 70814.

CURRENT LISTINGS. There are 9 current listings from $99,500 to $140,000 with 7 active and 2 pending. The Average Price per sq. ft. listing is $85.48/sf, which is too high. If you examine the chart above, 2009 and 2010 support was at $83/sf and $72/sf. And, CoreLogic tells us that Baton Rouge is in its’ 7th straight month of declines. So, this average $85.48/sf is far too high. Why are these 7 listings, in 2011, priced above 2009 and 2010 when the market was stronger then. The 2 pendings average $65.69/sf.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 6, 2011. This information was extracted on 5/6/2011. 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/

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/

Greater Baton Rouge Home Prices, in general, are in correction mode per the CoreLogic report for the 7th straight month and reflected in local housing statistics I see almost daily. The favorable Highland Creek Subdivision is no exception.

Highland Creek. Per the HOA Website http://highlandcreekbr.com/, “Highland Creek is an awesome neighborhood off highland road in beautiful Baton rouge. It is conventialy located to downtown BR, the LSU campus, three major retial outlets and two hospitals; great for kids of all ages.” Highland Creek was developed around 1982-1983 with 1 to 2 story garden homes ranging from 1,076sf up to 2,330sf situated on smaller lots. Approximately 75% of Highland Creek is located in the Flood Zone per the FEMA map below, map from a recent appraisal.

Highland Creek Homes

THE CORRECTION IN HOME PRICES – The Climb And Then Descent Of The Stairs In This Chart Below Visually Explains The Correction!

As with Hurricane Katrina, the Median Sales Price rose from $125,000 in 2005 up to $138,500 in 2006. Then median sales price from 2007 to 2009 from $145,000, $147,500 and $154,000 rounded. 2010 began the descent to $148,500 and 4 sales in 2011 currently have it at $126,500. At the highs, the Average Sold Price was at $104/sf and now in 2011 it’s at $84/sf. YES, 2 of the 4 2011 sales were foreclosures helping to bring down the 2011 numbers. However, even the 2 non-foreclosures sold at $90/sf and $99/sf showing a correction from 2008 and 2009 highs.

However, is it only Highland Creek correcting or are other competing developments correcting as well? YES, other developments are correcting as well. This chart below of 64 competing home sales in the 1250sf to 1650sf range in 70808, 70810 and 70820, homes in subdivisions that would be comparable to Highland Creek, shows a -6.2% decline.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 2, 2011. This information was extracted on 5/2/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

For More Information On Highland Creek, Check Out The HOA Website here:

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/

The Denham Springs housing market hasn’t seen this many high-end home sales in such a short time period in years. The five (5) homes below sold from 1/6/2011 through 4/15/2011, from $450,000 up to $689,167. One (1) was a $450,000 Cash Sale and the other four (4) were financed Conventional per GBRMLS records. The sales are listed below beginning with the most recent sales first.

25536 Southern Hills Ct in in Greystone Golf Community, with 3,120sf, sold 4/15/2011 for $455,000 or $146/sf. Marketing time was only 100 days. Listed by Crysal Bonin with The Mortensen Group LLC and sold by Lawson Covington with Covington & Associates Real Estate LLC.

21452 Stone Bridge Ct in Stone Bridge Subdivision, with 4,704sf, sold 3/31/2011 for $615,000 or $131/sf. Marketing time was only 189 days. Listed by Rene’ Pollet with Coldwell Banker One and sold by Tammy Williams-Sparks with Keller Williams Premier Partners.

21461 Stone Bridge Ct in Stone Bridge Subdivision, with 3,870sf, sold 3/11/2011 for $640,000 or $165/sf. Marketing time was only 68 days. Listed by Alvin Washington with Alvin Washington Realty and sold by Kelli Wascom with Keller Williams Premier Partners.

8289 Allen Drive in Harrells Ferry Landing, with 4,637sf, sold 2/24/2011 for $689,167 or $149/sf. Marketing time was only 145 days. Listed by Denise Stockwell with RE/MAX FIRST and sold by Denise as well.

328 Chateau Jon in Chateau Jon Subdivision, with 3,717sf, sold 1/6/2011 for $450,000 or $121/sf. Marketing time was 140 days with Agent and was FSBO for several months. Listed by Jeannie Spell with RE/MAX FIRST and sold by DREW LANGHART & DARREN JAMES with Keller Williams Premier Partners.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of April, 16, 2011 to April 22, 2011. This information was extracted on 04/23/2011.

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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/

ASCENSION PARISH

SOLDS:

5 from $67,000 to $229,900, Average Sales Prices $168,180 or $99.98/sf, Median Sales Price $185,000, Average Days On Market 41.  

LISTINGS:

Currently Actives Total: 744 $234,268 Average Listing Price and Median Price $198,200.

Currently Pending: 246 $194,128 Average Listing Price and Median Price $174,975.

New Listings: 40 With Average Listing Price of $195,992, Median Listing Price of $169,900

Pending Listings: 39 With Average Listing Price of $202,851, Median Listing Price of $189,000

Withdrawn Listings: 13 With Average Listing Price of $259,753, Median Listing Price of $224,900

Expired Listings: 7 With Average Listing Price of $155,673, Median Listing Price of $129,000

EAST BATON ROUGE PARISH

SOLDS:

42 from $21,900 to $575,000, Average Sales Prices $222,343 or $102.28/sf, Median Sales Price $187,000, Average Days On Market 123. 

LISTINGS:

Currently Actives Total: 2695 $247,876 Average Listing Price and Median Price $176,900.

Currently Pending: 613 $209,906 Average Listing Price and Median Price $167,900.

New Listings: 133 With Average Listing Price of $220,158, Median Listing Price of $175,000

Pending Listings: 102 With Average Listing Price of $203,939, Median Listing Price of $169,450

Withdrawn Listings: 18 Average Listing Price $184,066, Median Listing Price of $142,500

Expired Listings: 23 With Average Listing Price of $468,832, Median Listing Price of $214,900

WESTERN LIVINGSTON PARISH

SOLDS:

19 from $22,500 to $448,000, Average Sales Prices $124,242 or $74.59/sf, Median Sales Price $89,000, Average Days On Market 74.

LISTINGS:

Currently Actives Total: 778 $193,809 Average Listing Price and Median Price $159,900.

Currently Pendings: 171 $151,976 Average Listing Price and Median Price $148,000.

New Listings: 37 With Average Listing Price of $186,735, Median Listing Price of $153,900

Pending Listings: 21 With Average Listing Price of $159,738, Median Listing Price of $146,900

Withdrawn Listings: 15 Average Listing Price $162,826, Median Listing Price of $147,500

Expired Listings: 17 With Average Listing Price of $170,894, Median Listing Price of $167,900

WEST BATON ROUGE PARISH

SOLDS:

1 for $179,700 or $127/sf, Median Sales Price $179,700, Average Days On Market 267.

LISTINGS:

Currently Actives Total: 109 $196,436 Average Listing Price and Median Price $186,300.

Currently Pending: 21 $186,897 Average Listing Price and Median Price $185,900.

New Listings: 3 Average Listing Price of $204,900, Median Listing Price of $134,900

Pending Listings: 2 Average Listing Price of $175,900, Median Listing Price of $175,900

Withdrawn Listings: 1 Average Listing Price $49,900, Median Listing Price of $49,900

Expired Listings: 1 With Average Listing Price of $195,000, Median Listing Price of $195,000

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of April, 16, 2011 to April 22, 2011. This information was extracted on 04/23/2011.

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/

Ascension Parish

Solds: 9 from $86,700 to $385,000, Average Sales Prices $186,403 or $100.32/sf, Median Sales Price $137,500, Average Days On Market 59.

Listings:

Currently Pending: 229 $191,106 Average Listing Price and Median Price $172,500.

New Listings: 48 With Average Listing Price of $197,932, Median Listing Price of $174,950

Pending Listings: 39 With Average Listing Price of $195,857, Median Listing Price of $189,000

East Baton Rouge Parish

Solds: 31 from $5,500 to $1,054,000, Average Sales Prices $216,768 or $106.51/sf, Median Sales Price $161,000, Average Days On Market 96.

Currently Pending: 585 $208,328 Average Listing Price and Median Price $166,000.

New Listings: 120 With Average Listing Price of $268,194, Median Listing Price of $186,000

Pending Listings: 100 With Average Listing Price of $208,382, Median Listing Price of $165,000

Western Livingston Parish

Solds: 10 from $29,000 to $455,000, Average Sales Prices $189,525 or $97.54/sf, Median Sales Price $168,500, Average Days On Market 98.

Currently Pending: 177 $149,140 Average Listing Price and Median Price $147,900.

New Listings: 31 With Average Listing Price of $175,716, Median Listing Price of $168,900

Pending Listings: 24 With Average Listing Price of $120,687, Median Listing Price of $127,950

West Baton Rouge Parish

Solds: 4 from $51,500 to $226,000, Average Sales Prices $166,600 or $106.33/sf, Median Sales Price $194,450, Average Days On Market 68.

Currently Pending: 21 $187,983 Average Listing Price and Median Price $193,000.

New Listings: 0

Pending Listings: 1 Listing Price of $124,900

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of April, 9, 2011 to April 15, 2011. This information was extracted on 04/16/2011.

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/

Accurate Valuations Group (Home Appraisals) has completed an analysis of the West Baton Rouge Parish housing market from First Quarter 2010 versus First Quarter 2011. The results are below. CLICK ON IMAGE BELOW TO ENLARGE.

This study explores ALL Single-Family Residential home sales for the three (3) zip codes below. In Q1 2010 there were 27 home sales versus 28 in Q1 2011. So, for 2011, number of sales were up by 1 or approximately +3.7%.

70767 Port Allen. For Zip Code 70767, home sales volume was down 14%, Average Sales Price was down -0.7% and Average Sold Price Per. Sq. Ft. was down -5.5%.

70719 Brusly. For Zip Code 70719, home sales volume was up 50%, Average Sales Price was down -11.4% and Average Sold Price Per. Sq. Ft. was virtually unchanged at 0.4%.

70710 Addis. For Zip Code 70710, home sales volume was up 18%, Average Sales Price down -9.9% and Average Sold Price Per. Sq. Ft. was down -2.7%.

These declines are consistent with the CoreLogic report on national home prices falling for the 7th straight month, as reported on Thursday, April 7, 2011. This is the trend for much of Greater Baton Rouge home prices.

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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/

Accurate Valuations Group (Home Appraisals) has completed an analysis of the East Baton Rouge Parish housing market from First Quarter 2010 versus First Quarter 2011. The results are below. Click the chart to view in a larger size.

This is a lot of data to report on in one (1) article with “20″ zip codes. A short summary follows:

Number of Home Sales Decreased by 3% Over 2010! For the number of home sales, only 9 zip codes reported a smaller number of sales. And, Ten (10) Zip Codes experienced more sales in Q1 2011 than in Q1 2010, which is great news for our market. Still, in Q1 2010 there were 738 home sales versus 714 in Q1 2011, which is a difference of 24 sales or -3%.

Average Sales Prices Overall Decline! This is consistent with the CoreLogic report on national home prices falling for the 7th straight month, as reported on Thursday, April 7, 2011. Thirteen (13) of the 20 Zip Codes showed declining average sales prices versus only Seven (7) showing increases. Local home prices are continuing to correct.

Average Sales Price Per Square Foot Overall Declines! This is consistent with the CoreLogic report. Fifteen (15) of the 20 Zip Codes showed declining average sales prices per sq. ft. versus only Seven (5) showing either no change or just slight increases.

Biggest Gainers. Zip Code 70807, the Scotlandville market, showed a 450% increase in number of home sales. Zip Code 70739, the Central or Greenwell Springs market, showed a +16.2% increase in Average Sales Prices AND +5.6% in Average Sales Price Per Sq. Ft.. Central is a “hot” market viewed by locals as having a favorable school district.

Largest Declines. Zip Code 70820, the market below LSU off Brightside, showed a -35.3% decrease in number of home sales. Zip Code 70802, the market in and around Central Business District, showed a -33.4% decline in Average Sales Prices AND -30.2% decline in Average Sales Price Per Sq. Ft..

Visit Baton Rouge Real Estate Buzz Here

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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/

We provide property tax appeal home appraisals for East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish. Cities we cover are Baton Rouge, Zachary La, Baker La, Greenwell Springs La, Port Allen La, Brusly La, Addis La, Prairieville La, Gonzales La, Geismar La, Saint Amant La, Denham Springs La, Walker La, Watson La. Appeal your property taxes today.

NOTE: It’s Responsible To State Here That We’ve Found Less Than 13% Of Local Housing Is “Over-Assessed”. Over-Assessments ARE NOT A Major Problem Locally! Most Local Housing Is Fairly Assessed By Assessor Teams That Strive To Be As Accurate As Possible! See “VIDEO EXPLANATION” for Parish by Parish Results…And, In West Baton Rouge Parish, We’ve Found No Over-Assessments Year-To-Date! This is not a cheap shot directed at our public servants as this video is complimentary of them. Our Tax Assessors are fair and will generally make it right. Bill Cobb, Appraiser

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?

The longer I appraise homes for purchases, the less I understand about how homes are properly and ethically priced for listings! This post is about an example in the Greater Baton Rouge housing market I recently experienced. THE HOME DID NOT APPRAISE FOR THE PURCHASE PRICE! AND, this was one of those deals where they tried to roll in excessive seller paid concessions.

Disclaimer. In order to protect the identity of the Agent and the home in question, which is still Pending, details as to location and physical address are withheld.

Physical Details. Subject or home under contract is located somewhere in Greater Baton Rouge. Subject is 20 years old, 1,750sf to 2,000sf 3 bedrooms, 2 bathrooms located in a restricted subdivision where the homes are similar size and age. There is 1 sale and current listings in this development. Price range is somewhere between $180,000 to $220,000. While subject is in good condition, it’s not updated and has some inferior vinyl flooring.

Appraisal Inspection Setup & Request For Comps Used To Market Subject. As is my custom, at the same time the appraisal inspection was setup, the comps used to market the home were requested from Listing Agent. I’ve always believed that there are 2 to 3 real estate professionals involved in the sale or purchase of a home: the Listing Agent, Selling Agent and The Appraiser. Agents do know and see things in the market that appraisers do not and I want to know what I might be missing about a deal. School district could be an example. And, by requesting the comps up front, I hope to avoid an appeal or rebuttal later.

Home Was Priced High And The Sellers Gave it Away! Before visiting subject, I noticed subject was priced high and Agent provided 5 “sales”, which turned out NOT to be true comps. When I arrived at the home, the sellers were obviously nervous and were asking me questions about the appraisal and comps and making stating statements like, “I hope the home appraises with the extra concessions rolled in because we have a contract on another home…..”

The “Sales”, not “Comps” Sent. Also, Note That Appraisal Is Being Completed In March 2011 and Lenders Want Comps Within 90 to 180 Days Or 3 to 6 Months. Here’s a review of the 5 sales sent to me.

Sale #1, sold in 4/2010, is 200sf smaller in size, is similar in age but is updated. While this sale can be added a supplemental comp, this “sale” is too old for underwriters in 2011 to give heavy consideration to it.

Sale #2, sold in 6/2010, is 240sf smaller in size, was built in 2006 or is 5 years old, is located in a newer development with a newer design/appeal. So, design/appeal, age, location and condition are all superior. How is this “5″ year old home comparable to a 20 year old home? The 240sf difference in size raises the gross and net adjustments above underwriter tolerance of 15%, which indicates it’s not truly a comparable. Also, the 6/2010 “sale” is too old for underwriters in 2011 to give heavy consideration to it. I couldn’t believe what I was seeing here!

Sale #3, sold in 8/2010, is 312sf smaller in size, was built in 2005 or is 6 years old, is located in a newer development with a newer design/appeal AND an IG Pool. So, design/appeal, age, SLAB GRANITE COUNTERS, location, IG Pool and condition are all superior. How is this “6″ year old home comparable to a 20 year old home? The 312sf difference in size raises the gross and net adjustments above underwriter tolerance of 15%, which indicates it’s not truly a comparable. Also, the 8/2010 “sale” is too old for underwriters in 2011 to give heavy consideration to it. I couldn’t believe what I was seeing here!

Sale #4, sold in 10/2010 is within 75sf of subjects size, BUT was built in 2000 or is 11 years old, has a newer design/appeal AND is located on a half acre subdivision lot. So, design/appeal, age lot size and condition are all superior. How is this “11″ year old home comparable to a 20 year old home?

Sale #5, sold in 6/2010, is within 75sf of subjects size, is similar in age and condition. While this sale can be added a supplemental comp, this “sale” is too old for underwriters in 2011 to give heavy consideration to it.

What I did and didn’t do! This appraiser ended up using Sales 1, 4 & 5 in the report, Sale 4 simply because of the lack of sold homes in this market, along with 2 other more recent solds to comply with underwriters wanting more recent comps. This appraiser did not bend ethics and use Sales 2 & 3 as there was NO remote similarity to the subject and 5 & 6 year old homes. And, per lender requirements, this appraiser also added 3 listings into the report from the immediate market, of which were located in subjects own development.

THIS IS NOT A HOUSING MARKET OF STRENGTH AND….THIS POST HURRICANE KATRINA MARKET IS UNDERSTANDABLY AND LOGICALLY STILL CORRECTING! While GBR is performing better than the general U.S. housing market, we do face challenges. There has been a barrage of economic data and news suggesting national economic malaise in the housing sector with no signs whatever of even price footing, U.S. home prices continue to fall, and Corelogic and Baton Rouge Business Report reporting that Greater Baton Rouge is in its’ 6TH STRAIGHT MONTH OF HOME PRICE DECLINES. Greater Baton Rouge also has a fore closure and shadow inventory problem with 22 months of current shadow inventory. I’m not here to put down our market, but I do believe it’s about time we admit the challenges and price local listings accordingly, especially in the under $300K range where it really matters. The over $300,000 market appears to be weathering this downturn better than the under $300,000 markets.

WHAT I DON’T SOMETIMES SEE IN THE GBR HOUSING MARKET. What I don’t see sometimes, not all the time, are GBR home listings priced according to these facts and trends above! Some homes are priced as if it were still 2007. Homes shouldn’t be listed based on the sellers dictating listing price but rather based on market support and a little cushion for negotiation and normal seller concessions.

LOW APPRAISALS. And, when homes are overpriced, this is why that “low appraisal” occurs. Low Appraisals could be the result of a faulty appraisal, and/or it could be more about bringing reality to the situation and reflecting a flaw in the expectations created by a faulty and unrealistic listing pricing at the beginning of the process. This is exactly the example I have provided in this article, the totally unrealistic listing price for this home that didn’t appraise. And, it didn’t appraise based on the Agent’s 3 actual comps and the 1 sale and 2 current listings in the subjects own development. I believe those 5 & 6 year old “sales” provided were to help prop up the deal, which didn’t happen with this appraiser!

REASONS FOR LOW APPRAISALS. Low Appraisals can occur because the home listed wasn’t actually measured…this does happen in our market. Low appraisals can occur because the listing agents failed to deduct excessive seller paid concessions when they completed that MLS CMA to price that home. And, the GBRMLS doesn’t automatically deduct excessive concessions. So, if local agents don’t do more than a simple MLS CMA to price their listings, if they don’t examine seller paid concessions on each sale they base value, they could end up with a low appraisal because that appraiser IS going to deduct excessive seller paid concessions on comps used based on Fannie Mae selling guidelines, which instructs appraisers to do so below:

“Lenders are reminded that excessive sales concessions can artificially inflate the sales price of a property, which can then lead to an inflated market value. Particular attention should be given to unusual sales or financing concessions to ensure that they are properly accounted for in the appraisal report. Fannie Mae’s definition of market value is intended to ensure that appraisals reflect an opinion of market value after adjustments for any special or creative financing or sales
concessions have been made, such as interest rate buydowns or payment of condo or homeowners’ association fees.”

Fannie Mae and FHA know that when there’s no skin-in-the-game or down payment, there could be a higher default rate!

GREATER BATON ROUGE HOME BUYERS SHOULD GET A PRE-PURCHASE HOME APPRAISAL! With the local housing market still correcting and “some” overpriced listings in this market, it’s this appraisers advice to get a Pre-Purchase Home Appraisal before negotiations!

One 2011 Sale $205,000 or $124/sf. It appears Manchac Crossing Median Sales Prices are continuing to Decline from 2008 highs of $242,750. Median Prices since 2006 have been $218,000, $219,950, $242,750, $237,500, $233,250 and now $205,000 in 2011. So, there was the rise in prices after Hurricane Katrina, then the deflating of the market!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to March 25, 2011. This information was extracted on 03/25/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

Total # 2010 Sales: 11
Average Sales Price: $385,127
Median Sales Price: $384,900
Average Sold Price: $116.37/sf
Average List To Sale Price Ratio: 96%
Average Days On Market: 132

One 2011 Sale $389,000 or $129/sf. It appears Woodstone Median Sales Price Is Increasing Again. Median Prices since 2007 have been $462,600, $417,450, $315,000, $384,900 and now $389,000 in 2011. So, there was the rise in prices after Hurricane Katrina, then the deflating of the market and now this specific market appears to be on the rise!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to March 25, 2011. This information was extracted on 03/25/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

This is 975 Louisiana Avenue, near Beauregard Town and the Baton Rouge Central Business District. I appraised this property in 2008 as a foreclosure when the condition was much less impressive. Property was sold through local Real Estate Agents, Jeff Furniss and Darry Gissel in 11/2008 for $70,000. 975 Louisiana Avenue is actally located in Young Subdivision, near Beauregard Town.

2011 AFTER PHOTO!

2008 BEFORE PHOTOS BELOW!

]]> http://www.batonrougerealestateappraisal.com/2011/03/amazing-beauregard-town-renovation-975-louisiana-avenue-before-and-after-photos/feed/ 0 http://www.batonrougerealestateappraisal.com/2011/03/baton-rouge-real-estate-kildare-subdivision-housing-report/ http://www.batonrougerealestateappraisal.com/2011/03/baton-rouge-real-estate-kildare-subdivision-housing-report/#comments Thu, 24 Mar 2011 19:16:26 +0000 Baton Rouge Real Estate Appraisal http://www.batonrougerealestateappraisal.com/baton-rouge-economic-news/baton-rouge-real-estate-kildare-subdivision-housing-report/ http://www.batonrougehomeappraisal.com/ – Baton Rouge Housing Statistics: Kildare Subdivision 70812 Housing Numbers.

Solds In Kildare Subdivision have varied from lows to highs in terms of the Average and Median Sales Prices by year from 2006 up to 2011. The variance in the these range from $45,000 up to $152,500 depending on how many REO or foreclosure sales took place in Kildare during any given year. For example, the average sales prices since 2006 were $100,600, $89,000, $137,000, $87,700 and $122,500, which is a very wide spread. With the exception of 2009, there were few sales in each year. 2010 Data is reported below and there has already been one (1) REO or Foreclosure sale in 2011 for $45,000 for an 1,872sf home on 0.55 acre lot. In 2010, there were two (2) unusually high sales for $152,500 and $175,000. The $152,500 sale was for 2,919sf on about 1 acre and the $175,000 was for a 4,907sf on large lot with pool, 2 kitchens and apartment. Average days on market in 2010 was 300 days with a weak listing-to-sales price ratio of 92%.

Average Sales Price: $122,500
Average Sold Price Per Sq. Ft.: $36/sf
Median Sold Price: $152,500
Number of Sales: 3
Low To High: $40,000, $152,500 to $175,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # MLS Listings: 2
Current Listings Prices: $75,000 To $89,900

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/

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2006 to March 23, 2011. This information was extracted on 03/23/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!