Glenda Daughety: It’s only three weeks into the new year, but what we realtors are seeing is that the areas that did not flood will continue to rise in price. Prices in these areas are being driven by the low inventory of homes. In the areas that did flood, the houses that have been prepared for renovation only, the prices will be approx. 50% of the value. If the owners choose to renovate to put the house on the market the value will be approx.. 10- off the appraised value.
Do you think median price will go up or down and why ?
Glenda Daughety: The median price of homes in non affected areas will go up due to low inventory plus the desirability of the location.
What is the best way to get an accurate value to sell your home in a subdivision affected by the flood ?
Glenda Daughety: The best way to get an accurate value to sell a home in any subdivision is to call a realtor. Realtors have the recent comparables in the areas that flooded. A Realtor can also recommend an appraisal if necessary.
Whats the best approach in doing a CMA when houses around you have not be repaired due to flooding ?
Glenda Daughety: Homes that have not been repaired from the flooding presents a challenge indeed. Appraisers are telling the realtors to put a regular CMA value on the property and then reduce it by 50%. This seems to be the rule of thumb at the present time…
For more information about getting a CMA done from a team of real estate professionals call 225-205-2672 or go to GlendaDaughety.com
At least 60,000 homes have suffered damage from the “once-in-a-thousand-years” flooding that struck the Baton Rouge area in mid-
August. Continuous rainfall in the state of Louisiana resulted in catastrophic flooding that submerged thousands of homes in the Baton Rouge area.
According to recent end of the year figures, as of November 2016, Greater Baton Rouge Association of Realtors’ Multiple Listing Service shows a slow recovery back to median inventories of homes on the market with an increase in prices. The current report shows homes are selling in fewer days and for higher prices, but will this trend continue?
A potential problem is the decline of the average home price. This average price will be affected by homes that have not been fully repaired and are hitting the market in 2017. These houses, partially repaired or not at all, will affect the current market for the Baton Rouge home values. Unfortunately for sellers, this could drive prices down in an area affected by the flood.
Of course, its logical to conclude that a home with no repairs will be marketed at a lower price. Market valuations that are not careful may include distressed and damaged properties. This could trickle down lowing the median sales prices in certain subdivisions.
Owners thinking about selling their home must do so in a strategic manner. An approach that charts a proper valuation and sales process can overcome many of these challenges. This makes a CMA (comparative market analysis) from a Realtor absolutely necessary. Random and fear pricing could see many selling at a loss.
This does not have to be the case. Property values must be handled with care. When selling your home a CMA , done correctly, will give you an accurate price point. Allowing a home owner to sell their home at the current market price.
Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts. Otherwise you may find yourself in a long legal process that costs you time and money.
Terms and Conditions are clauses in the offer which cover “what if” risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property’s suitability. Conditions to arrange financing or a home inspection are among the “ifs” that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer’s related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties. A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value. Would you recognize the difference if you were the seller? That’s where the expertise of the real estate professionals involved becomes valuable…in the Baton Rouge real estate market experienced buyers and sellers look to Glenda Daughety and her team’s years of experience.
Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become “second-hand”and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that’s where negotiations can get heated.