Denham Springs Louisiana Real Estate

Archive for February, 2010

http://www.batonrougerealestateappraisal.com/ - Baton Rouge Real Estate: Ascension and Livingston Parish Home Sales Increase In January 2010

According to the 2/16/2010 Baton Rouge Business Report Real Estate Weekly, home sales were up in January 2010 in Ascension and Livingston Parishes. Read the complete report at the link above. The short article states:

“The number of houses sold in Ascension and Livingston parishes in January was higher than what was recorded the year before. There were 73 houses sold in each parish, according to figures from the Greater Baton Rouge Association of Realtors Multiple Listing Service. In January 2009, there were 64 homes sold in Livingston and 63 in Ascension. Ascension even saw a modest increase in the average sale price, up from $203,016 in 2009 to $203,400 in January. Livingston saw a significant drop in average sale price, down to $148,587 from $175,459 in January 2009.

MLS home sales were down 16% in East Baton Rouge, from 242 in 2009 to 203 in January. The average sale price went up, from $194,209 to $195,101. In the category that includes MLS sales in parishes such as West Baton Rouge, Iberville and the Felicianas, there were 22 houses sold in the first month of the year, compared with 25 in January 2009. The average sale price rose to $144,984 from $105,076 the year before.”

http://www.denhamspringsappraisers.com/ - Denham Springs Real Estate: New Juban Lakes Apartments Construction Beginning

The Advocate News Paper is reporting on Juban Lakes Appartments Beginning Construction here! According to the article, this will be a $13,000,000 development off Buddy Ellis Rd with a total of 244 units in two phases. Lease rates will be $775 for a one-bedroom uni, $885 for a two-bedroom and $1030 for a three-bedroom.

http://www.batonrougerealestateappraisal.com/ - Win A New Copy Of Gary Vaynerchucks Crush It by Baton Rouge FHA Home Appraisers.

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http://www.batonrougerealestateappraisal.com/ - Baton Rouge Real Estate: Greater Baton Rouge Homeowner Should Not Have Added $60,000 Pool In A $150,000 Subdivision

I ran across a situation in the Greater Baton Rouge Housing Market where a homeowner, located in a subdivision where the average home is worth $150,000, installed a $60,000 Gunite Inground Pool recently. Now, their home is on the market and they are about to be taken through the “school of hard knocks” when the appraiser doesn’t give them any more than $5,000 to maybe $7,500 contributory value for their pool. I’ve been appraising now for 18 years and see these types of situation several times per year and just shake my head when I see this happen.

Why only $5,000 to $7,500 contributory value for a $60,000 “gunite” pool? It’s not that “blankety blank” appraiser’s fault. It’s actually the market, the buyers, that don’t reward such expensive overimprovements. And mortgage underwriters that scrutinize the appraisals when appraisers do.

Is It Common For IG Pools In That Market? Let’s venture this thought process in the eyes of the appraiser! You have to look at the overall market and ask if it’s common for $60,000 inground pools to be installed in subdivisions where the homes are $150,000, which it’s not. Then ask yourself if the average owner in Such-And-Such Subdivision has an inground pool and the answer is no. Look at an aerial map for proof. Is it common for any buyer in the general Greater Baton Rouge market to pay more than $7,500 for a pool on an existing home sale where the price of the home is below $200,000? That answer is generally no as well. There may be exceptions, but they would be very rare.

Mortgage Underwriting Questions? What happens if the appraiser gives more than $5,000 to $7,500 on a pool is the underwriters coming back with a request for comps where the market actually gave that much for a pool. It’s at that point where the sale may fall apart because the appraiser can’t support giving the subject home that much value for that $60K pool in a $150,000 subdivision. I’m sure from the photos that it’s a nice pool, but in this national mortgage meltdown market where this loan may be underwritten in New Jersey, Manhatten NY or California or elsewhere where pools don’t carry much value, then giving too much value to the pool may even cause the lender not to want to do the loan and/or throw up red-flags.

There’s two lessons here!

1.) If you plan on remaining in your home until you die, then live it up and build whatever you want in your backyard (ig pools, metal workshop, that covered patio, wood decking, stone walk-ways, etc..).

2.) If you don’t plan on remaining in your home until you die, and your investment dollars must be wisely spent, then be very cautious about installing ig pools, metal workshops, covered patios, wood decks, stone walk-ways, etc.. because they don’t bring much return on investment. The lesson here is not to invest money in the your backyard and expect to receive dollar-for-dollar return on your investment. The lesson is to invest on the home itself before investing in your backyard.

Greater Baton Rouge’s Home Appraiser – Bill Cobb! Your Local Home Value “Trust Agent”! http://www.accuratevg.com/

http://www.batonrougerealestateappraisal.com/ - Baton Rouge Real Estate: Four Demographic Trends That Will Affect Greater Baton Rouge Housing

Realtor.org and and The Urban Land Institute are reporting on 4 demographic trends that will affect Greater Baton Rouge Housing! Their short article is located here and is quoted below.

“4 Demographic Trends That Will Affect Housing

A new report from the Urban Land Institute predicts two major changes in the U.S. housing market as we began a new decade.

Home appreciation will slow considerably to about 1 percent to 2 percent annually.

The current U.S. homeownership rate, now at 67 percent (which is down from a record high of 69 percent), will fall further to about 62 percent.

4 Major Demographic Trends

The report also cites four major U.S. demographic trends that will have a major impact on housing.

1. Aging baby boomers (ages 55 to 64 years old): They will keep working, and many will be forced to stay in their suburban homes until values recover. Those who are able to move will choose mixed-age living environments that cater to active lifestyles. Walkable suburban town centers also will appeal to this group.

2. Younger baby boomers (46 to 54 years old): They are now entering their prime earning years but they will lack home equity and unlike the older members of their generation, they won’t be able to purchase second homes. This will likely curb the prospects for the second-home market.

3. Generation Y: They are larger than the baby boom generation (with a population of about 86 million). As they enter the housing market, they are less interested in homeownership than their parents were when they were young adults. “They will be renters by necessity or choice for years ahead,” says John K. McIlwain, author of the report.

4. Immigrants – both legal and illegal: They are nearly 40 million strong. They often prefer multi-generational households and if they can afford them, larger homes in neighborhoods with a strong sense of community.

Source: The Urban Land Institute (01/27/2010)

Tags: Baton Rouge Estate Appraisers, baton rouge real estate, greater baton rouge real estate, baton rouge real estate trends