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http://www.batonrougerealestateappraisal.com/ - Top 10 Most Memorable Greater Baton Rouge Appraisal Assignments of 2009

I appreciate all my clients and colleagues who made 2009 a fantastic year. This has been a trying year for the appraisal industry in light of HVCC and the extra work that is now required on home appraisals which has added almost 2 hours to each appraisal order. However, I am very grateful nonetheless for all the good things that happened this year. Merry Christmas AND Thank you for your support in 2009!

1.) St. Jude Dream Home: I’ve been fortunate to have appraised the St. Jude Dream Home every year since 2000. The folks at St. Jude Children’s Hospital, their local Baton Rouge operations, have really blown me away in terms of how much they really care about their cause – helping Children. Over the years, I’ve also discovered how BIG a heart a local builder, developer and real estate broker has, that being Carlos Alvarez and Family! The 2009 Dream Home was a splendid success, helping raise money for St. Jude and bringing the Greater Baton Rouge Community together for community involvement. Be sure to follow Baton Rouge St. Jude Dream Home on Twitter for the 2010 Dream Home Event by clicking on the home photo. Here’s a video I made of the Dream Home.

2.) Vicknair Builders Buying Up Previously Expensive Lots in Former High-End Subdivisions and Lowering Overall Sold Price Per Sq. Ft.: This year while appraising a home in Acadiana of Ascension Subdivision, a once former high-end development in the mid $350K range located in Northern Ascension Parish, I made a discovery. The discovery was that since the $73,000 to $83,900 lots weren’t selling, and that since some of new high-end spec homes weren’t selling, that a large bulk package of these lots sold to Vicknair Builders and/or partners in a deal for $36,000 each and $53,900 each for lake lots. The once $136/sf sold prices will be joined by anticipated sales prices in the $96/sf to $109/sf range. It’s estimated that approx. 88% of this development will be finished out with Vicknair homes. If 88% of the homes in a development sell for less than the previous high-end homes did, then the overall prices in that development will be probably be lowered. This is also taking place in Denham Springs’ Juban Parc, where Vicknair Builders purchased a bulk large lot package and anticipated sold prices per sq. ft. will be significantly lower than the $128/sf buyers paid up to the time of the bulk lot purchase.

3.) Copper Mill Golf Community, Zachary LA: Zachary LA is a beautiful place to live and visit. In 2006-2007, Woody Jenkins wrote an article about the “10 Reasons Why Zachary Louisiana Is A Great Place To Live!”….and I agree. In 2009, I had the pleasure of appraising several homes in upscale Copper Mill Golf Community and shooting the listing video for the home on Royal Troon below. The home photo to the right is of a high quality home that looked a little like a “castle”. I appraised one home on Royal Troon that was half built in 2006-2007, abandoned, bought by an individual from the bank who finished the home. I think it’s the different architectural styles that set the homes in Copper Mill apart from some of other upscale developments within Greater Baton Rouge.

4.) An Excess Of Vacant Subdivision Lots in Greater Baton Rouge In General: In my home appraisals in general throughout the Greater Baton Rouge market, I have to estimate the value of the lot or site of the home. As I drive around, one memorable aspect about 2009 is the oversupply of vacant, very expensive residential lots on the market. That’s why they’re just sitting there vacant because they’re priced too high. In the photo, you see the Newly Developed 72 Lot Isabella Lakes Subdivision Remains Vacant Possibly Due To Very High Pricing Of Lots Within What’s Supposed To Be The “More Affordable” Walker Louisiana Housing Market From $37,400 up to $56,400. Understandably, The 72 Lot Listings Expired Unsold. The $37,400 Lots Are Tiny 50×135 In Size For Starter Homes In The Minimum 1,400sf range up to 1,600sf range. The estimated home prices would be in the $140K to $170K range. To put this into proper perspective, the lots in Collins Place sold from $40K up to $49,900 where the predominant values were in the mid $250K range. This Again Appears To Be An Example Of How The Market Is Shunning Overpriced Lots and Overpriced New Homes In This Move To The Desire Of Afordability. This is Why “Vicknair Builder Homes” are selling so well in this market. This appraiser won’t be at all surprised to see Vicknair Builders buy Isabella Lakes Subdivision and build more affordable homes for this affordable homes market.

5.) A Slow Continued Letting Out The Air Of The High-End Home’s Balloon, A Continued Oversupply, Builders Saying “This Market Is Killing Us” and Buyer Moves To More Affordable Homes: I recently reported on the high-end home values decline and oversupply in N Ascension Parish based on a recent appraisal, see: http://bit.ly/6qSogQ . In my post, I noted a -6% decline in median sales price, 66 competing listings and a 43 month supply on the market. A similar situation is verifiable for the Zachary Copper Mill market where the 2008 versus 2009 median sales price has declined almost 5%. A couple of sales in Copper Mill in 2009 took over 700 days to sell.

I’ve met a couple of builders at homes in 2009 where the first words out of their mouths are, “This market is killing us!”. And, I think to myself that they just don’t get it. The land, materials, labor….it’s all just too expensive. The average home buyer generally can’t afford to pay $136/sf to $160/sf+ for a new home. But, that’s the pricing a builder needs to make a decent profit. So, what happens? The $136/sf new construction housing market is essentially either shutdown or at a major slowdown because there are only so many people that can afford that high priced housing. The builders don’t get the fact that the high-end pricing of new homes isn’t coming back any time soon, so they better not hold their breath. Contrast all of this with what I’ve stated above and the fact that in the past year or so, Vicknair Builders has purchased approximately $10,000,000 in vacant lots in the N Ascension Parish market and their more affordable homes are selling…..and selling well. Vicknair Builders homes are selling well in both Ascension and Livingston Parishes. In the meantime, the other local builders are hoping for a return of the good old days of late 2005 to early 2008, but they won’t return any time soon. The builders that are realizing that this market has turned more affordable and that are serving that need are the builders that are surviving fairly well.

6.) Dilapidated Fourplex In Gardere Lane Area And Discovery Of Fraud Involved In That Market: This property, and several others like it I appraised in 2009, was interesting because of the gross extent of what appeared to be “black mold” growing inside. In some cases, the ceilings were falling in, Again in 2009. However, some of these 4 Plexes were just appraised very, very high in 2006 and 2007 based on private sales, not based on the many MLS sales which indicated a much lower value. The conditions noted in the appraisals was “Average” when in reality, the conditions were much less than average. Some California Investors, lured in because of the relatively low cost and higher ROI than int he California market, purchased these investment properties only to have them go into foreclosure in 2009.

7.) Fraudulent Fourplex Into Condo Coversion Gone Awry: Somewhere in the Greater Baton Rouge market, there was a condo-conversion of a “single 4 plex” on a street and in an area where there were primarily just 4 plexes. The 2007 appraisal I reviewed stated the condition was “Average”, however, the true condition looked very similar to the photos above of the mold, including exterior rotten wood and a roof that leaked so bad, it caused the mold issues. It was obvious from the street view that the roof needed replacement. These 4 units each sold in the mid $70s when they were really only worth $35K to $38K each. The piece of paper that stated this fourplex was under a condo conversion was supposed to warrant each unit to be worth $36,000 more than they were actually and verifiably worth. What else was interesting about this transaction was that the corporate address of the Condo Association, per the La Corporations Database, was in the same office complex as the lender that did the loan(s).

8.) Upscale Camp Goes Into Foreclosure: I’ll be honest. I don’t generally appraise homes or camps beyond Highway 63 as I’m really not a rural appraiser. I have 3 local appraisers I refer about 15% of the orders that come into my office and they don’t mind rural work. In the first quarter 2009, business was a little slow, so I took this Foreclosure assignment in Springfield, LA and wished I had not. This was a high quality camp located on a large lot with canal access, which had sold in late 2006 in the $400s. Due to the slower and rural market, there weren’t enough MLS sales or listings to adequately value this property. So, further research at the courthouse plus obtaining MLS sales info from the Tangipahoa MLS from an appraiser friend, Larry Wilson, was necessary. This assignment took a total of two full days and I learned my lesson not to accept these types of assignments. But, it was nice to be near the river and to see some of the beautiful high-end camps in that area.

9.) Divorce Appraisals: I perform some appraisal work for home owners and their attorneys during a difficult time of life. I was thankful to provide excellent service for home owners in need this year and at least make the appraisal process smooth in the midst of challenging situations.

10.) Pre-Listing Appraisals for Individuals and Local Real Estate Agents:

I am very thankful for both local Real Estate Agents and local Individuals that hired me to provide them with “Pre-Purchase” or “Pre-Listing” appraisals in 2009. Despite HVCC, this year I had more referral work from Real Estate Agents and that was a wonderful thing!!! I am also really grateful to be more connected to some stellar local real estate agents on Facebook and Twitter as well!!! Below is a video I made for an individual selling their home by owner (FSBO). A Free Video Both Created And Submitted To YouTube Is Standard With My Pre-Listing Appraisal Pricing!

If you are a real estate agent or home owner, what was the best experience you had this year with an appraiser? If you are a real estate appraiser reading this post, what were some of your favorite or most memorable assignments this year?

Author’s Bio:

Bill Cobb, CREA, is Greater Baton Rouge’s favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 18 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

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

fastvalue2@cox.net

http://www.appraisersinbatonrouge.com/

http://www.batonrougerealestateappraisal.com/ - How Will RESPA Changes Impact Greater Baton Rouge Real Estate? See Video

Watch and Listen to Murfreesboro, TN Realtor & Broker, John C. Jones, explain the new RESPA Changes, the first changes to RESPA in 30 years!

Baton Rouge has a hot new real estate company in town called Home After Home. Founded by two REALTORS with a lot of experience in the Baton Rouge real estate market, we expect Home After Home to be a great success. The principle is simple. The way of the Internet is now and far too many real estate companies are falling behind the game when it comes to properly marketing their listings and allowing an interface on the web that empowers home buyers and home sellers. Home After Home is a progressive technology real estate company that will fix that problem in the real estate marketplace.

We’ll write another post when the website is launched, but for now, know that something great is about to happen. Phase 1 will be powerful web search allowing home buyers to search for homes available in the market and for home sellers to see what their competition looks like. Phase 2 which we plan to launch towards the end of 2010 will be the most innovative and powerful real estate website available. For that, you’ll just have to wait and see!

In the meantime, it’s business as usual. As we work to build the web platform we are continuing to help buyers and sellers using a combination of both traditional and innovative methods to achieve their real estate goals.

For the real estate agents who are looking for a better way to serve their clients, our office space is designed differently from most. We have mobile workstations in “The Lounge” and conference space where you may work on the go or meet with clients.

We’re ready to help you achieve YOUR real estate goals! Are you ready? Call or text us today at 225-341-2752.

If you are in the market to purchase a home, this blog post will help you as you prepare on your journey to make that move.  This is a step by step checklist to help you.

1. Start looking online. Ah, but what are you looking for? Well, you want to look at houses in the areas that you think would be of interst to you.  Pick out a few different neighborhoods that you might want to drive through.  And start to get a feel for what a dollar will buy you in certain neighborhoods.  If you are moving in the Baton Rouge market, it may be helpful for you to know, that even in “this” economy, homes sell very near the asking price. In fact, on average, Baton Rouge area homes are selling just under 97% of the list price.  What exactly does that mean for you? Well, if you are looking to spend no more than $200,000, you should be looking up to $206,000 but not looking at $225,000 or $250,000.  Sellers just aren’t coming off their prices by large margins. So, look at homes that are priced very close to your price range. 

The second thing you are looking for online is the realtor.  What realtor might you want to work with?  Who’s sites do you like? You might even want to read up on the realtor, their designations, qualifications, experience, and work practices.  This will give you a jump start on who you want to interview to be your agent.  Yes, I said “interview”.  We’re going to talk a little more about this later, but for now, remember that “who” you choose to represent you is one of your most important first steps.

Here’s a website to use to start looking for homes: www.HomeAfterHome.com.

2. Start talking to lenders. This is where we start to part from your online research.  It’s always best to deal with a local lender.  So, start with the bank where you have your checking/savings accounts. Ask to speak with a loan officer and let them know that you intend to purchase a home. Tell them that you would like them to pull a credit report, qualify you, and provide you with a good faith estimate.  The credit report now, will give you a chance to catch any errors that may be on your report that would inhibit you from buying a home.  Having them qualify you will put you at ease and give you some comfort with the price range.  And having the costs (the good faith estimate) will help you to prepare for the normal buyer costs (in addition to the downpayment) that you will have associated with your loan and closing.  This step is all about preventing you from having unwanted surprises when your time might be more critical.  During the home buying process there are many deadlines to meet to stay in compliance with your contract, so having those unwanted surprises can throw everything off for you and make it much more stressful.  You probably want to talk with and compare 1-3 lenders.

Note: If you are paying cash for your home, prepare by obtaining a letter from your bank stating that you the appropriate sum of money as available cash on hand.  This will serve as proof to the seller that you are “for real”.  You might think that it’s everybody’s dream to have a cash buyer, but I have seen both agents and sellers become uncertain or doubtful when they have a cash buyer.  So have that letter on bank letterhead or letterhead from your financial planner.  If you are paying cash, we want to make sure that the other side of the table understands that you really do have the cash, have access to the cash, and are much better for them than a financed buyer.

3. Drive around. Now it’s time to go ahead and drive through the areas.  Check out which areas you might like to live in.  Make the drive from work to a potential neighborhood at “quitting time” to see what kind of traffic you can expect to endure in different areas.  Visit neighborhoods you’ve never been in.  See what you like/don’t like and make a list of any for sale by owner properties that you find in the areas that you like.

4. Interview REALTORS. I mentioned that we would come back to this. At this point it’s time to get started with an agent.  You’ve figured out what areas you like. You have begun the financing process. And you may even have found a few houses that you would like to see.  Now is a great time to check out which realtor is best suited to meet your needs.  In selecting a realtor, many people pick one that they like or a friend or family member.  That’s fine, but check their credentials.  This is a big purchase, and selecting the right REALTOR now can go a long way to you in the future.  You need someone who see’s hundreds of homes, knows the real estate market, understands the data, and has great negotiation skills.  It’s not just about finding a home.  A good agent will help you save thousands.  These thousands are saved by helping you select the right home, negotiating the right price, negotiating repairs with the seller, and helping you get to a sucessful closing.

Once you select a REALTOR, they’ll help you select homes to view and you’ll move on to the next step.

5. Viewing Homes. Now you’ll get to go out with your agent and see your top picks.

6. Everything Else. The rest of the process of buying a home will be managed by your agent.  In a nutshell, once you select a home, your agent will help you negotiate a purchase agreement.  Next up, is to secure your financing and conduct inspections.  Next, you may need to get insurance in place and coordinate a closing appointment.

The Everything Else section is where most deals fall apart. The home buying process gets more complicated throughout the “under contract” time period and having an expert help you will make things go more smoothly.  Understand that step 6 doesn’t have to be stressful.  It can be, but having professional help will minimize that stress.

Contact me if you would like help getting started. I can help point you in the right direction and, when you are ready, I would like to interview to be your agent.  Put me to the test!  Just call 225-341-BRLA and we’ll help you get started.

Here we are in September and the school year has caused a little slow down in the real estate market.  The thing this year is that there are still first time home buyer’s out there in the market place looking for homes they may purchase by November 30.  The problem that I’m running into is that there aren’t as many homes coming on the market right now.

So what’s the solution? Well, if you have a home you want to sell, don’t wait. Now is as good of a time as any to sell.  There are buyers looking for homes, why not yours?  Many of the serious buyers in the real estate market today have a limited time left to take advantage of the first time home buyer’s tax credit.

Additional help has been provided to these buyers.  The Louisiana bond authority has issued a part of the bond program that let’s buyer’s use a portion of the tax credit as a downpayment today.  Wow! I sure wish they had done this 3 months ago!  Well, they’ve done it now, and it is more reason why sellers don’t need to “wait” for a better time to sell.  Now is a great time to move.

Interest rates remain low.  Buyers are looking for homes to buy. And inventory seems to have slowed down with the commencement of the school year.  So, if you were considering the possibility of selling your home, give us a call and we’ll help you plan for today’s real estate market! 225-341-BRLA (225-341-2752)

Well, as school is getting underway around town, I’m starting to notice fewer phone calls coming through the office.  This, of course, is the typical start to the school year. As parents’ attention is focused on buying school supplies, uniforms, and books their atttention on a potential move get’s pushed to the back of their minds.  So if you have a home on the market, what are you to do?

Well, first of all, let’s remember that this school rush is temporary. As all the kiddies get settled into the school year, the parents will turn back their attention to other details.  If a move was in their minds before, they’ll remember that when September rolls around and start looking again.  Patience truly will get you through the school year.

It’s also good to note that while fewer buyers may be viewing your home for sale now that school has kicked off, those that do view your home must be serious buyers. (Or buyers without children!)  Seriously though, the people who are devoting precious time to looking at homes during this time of the year, have certainly put their homesearch as a top priority.  It’s important to keep your home ready for showings and be ready to leave for people to see it.  This is a time when you’ll want to be sure that any serious buyers that come out get a chance to see your home and consider it as one of their top choices.

If you are a buyer in this market, remember that there are many people who are working around school schedules now.  It may be helpful if you schedule your viewings during the day while the kids are in school.  This can make life easier for you (if you have children) and for the sellers living in the homes that you intend to view.  Making life easier for everyone is a good way to lay the groundwork for a sucessful transaction.

And most of all, remember that we’re here to help you!  Linda and I (Bridget) focus on helping to make your move less stressful.  For buyers we help to make the searching process a little easier and less time consuming. For both buyers and sellers we strive to take the emotions out of the negotiations so that your transaction may be smoother and more pleasant.  Give us a call to get started today: 225-341-BRLA

Well, I wrote a post earlier about this great loan program for anyone making a purchase under $200,000.  Today, I’m writing to say that maybe it’s not for “anyone”.  It is a loan program that has it’s merits, but if you are a buyer who is qualified to do an FHA loan, NACA may not be the best route for you.

I was considering using NACA to purchase a new home for myself. I sent a friend of mine (with whom I’ll be purchasing) to the NACA workshop.  What I found out was a little disturbing.  First of all, if you are responsible with your money, I doubt you will want to sit with one of their “mortgage consultants” who will go through your budget with you and coach you on fine tuning that budget.  Secondly, I heard that they got into about FHA.  At the workshop they talked about FHA being “loan sharks” and talking badly about the FHA program.

By what logic can anyone call FHA a loan shark? I mean it’s a government backed program that offers a minimal down payment and lower mortgage insurance than a conventional loan.  Plus FHA is more forgiving on credit scores than conventional financing.  Sure, if you compare it to a $0 down, $0 closing cost loan, the no money down loan may be more appealing.

But let’s all keep in mind that even if you have no money up front when you purchase the home, you’re still paying for it in the long run – every penny of it.

There are those critics out there who diss the NACA program as well.  They complain that if people have no money to put down then they shouldn’t buy a home.  And, while there may be some truth to this statement, it is my belief that everyone deserves a chance.  And that’s why I still think NACA is a good program.  Because at it’s heart, it is there to help people who really wouldn’t have had any other method by which to purchase a home.  That’s a good goal.  The credit counseling is a good part of this program, because the typical buyer who can’t qualify for FHA probably needs the credit counseling.

So, if you are a buyer with poor credit, no downpayment, and you’re willing to put some effort into making the dream of home ownership a reality – the NACA is the program for you.  Agents: if you have a buyer who is qualified for an FHA loan already, they probably do not need NACA, and they may not want to spend the time to go through the program as it’s a longer process than normal.

Summary: NACA is a good program for people who need it.  And, quite frankly, I don’t think NACA wants the people who have other loan options to come through their program.

After having knee surgery, Butch Strother, developed clots.  The doctors then noticed a blockage near his heart.  Now he is scheduled for bypass surgery and could use the support and prayers of our community.  If you would like to show your support (and have a good meal) please come by and pick up a jambalaya lunch on Tuesday, August 11, 2009 at:

RE/MAX First

4750 Sherwood Common Blvd.

Baton Rouge, LA 70816

If you plan to have a lunch send an email so that they’ll have a head count and can prepare the appropriate number of lunches.  Send your email by 8/10 to get your lunch request in timely!

Lunch pickups can be made 10:30a – 1:00p on 8/11.

Butch is a great guy so when you plan to go out to have lunch next Tues, just plan to come on over to RE/MAX First and pick up lunch instead.

In my post yesterday I mentioned that the interest rate on the NACA loan was 4.875%.  It did go up and is now 5%.  It’s still a very interesting program that makes slightly lower than normal interest rates available.  I don’t know how often the rate fluctuates, but it is a 30 year fixed rate loan.  If you would like more information, just call and we’ll provide you with current updates via phone or in person.  225-341-BRLA

To view the blog post to which I am referring go so www.HomeAfterHomeBlog.com and scroll down to the post entitled:

NACA: Best Kept Secret? 0 Down 0 Closing Costs 4.875% Fixed Rate Loans

I first heard about NACA last week. Over the weekend I spent much time reading on their website about the NACA program.  And, today I went to an agent workshop wondering, “What the heck is the catch?”

The program on it’s face offers a home loan on purchases up to $200,000 with no money down and no closing costs at a below normal fixed rate.  They particularly care about credit scores, so it neither helps you to have a good score nor hurts you to have a bad score.  There’s no prepayment penalty and no private mortgage insurance.  So just what IS the catch?

Well, there are a few things that one should know before using a NACA loan to purchase a home.  First, you must live in the house for the entire time that you have a NACA loan on the property.  Next, you won’t ever be able to get a second mortgage (such as a Home Equity Line of Credit) as long as NACA has the loan on the house, because they won’t permit a second lein holder.  (If you wanted to convert the property into an investment property, you would need to refinance into a conventional loan out of the NACA loan.)

Oh, and remember I said there’s no mortgage insurance? There is, however, a $50 per month fee that you pay.  I think they could have come up with a better acronym for this fee which is NSF. It stands for Neighborhood Stabilization Fund.  At the workshop they said that the homeowner pays this $50 fee for 5 or 7 years. I’d like to know exactly if it’s 5 or if it’s 7 years and how they determine when they remove the $50 charge.  You also need to get a lot of documentation to them, but the purchase workshop appears to be designed to prepare you for the paperwork that you need to get together.  And, you do need some money. While there are no closing costs you do have to have your prepaid items (insurance and taxes) and you’ll need to pay for an inspection.

To summarize, I haven’t found a “catch”.  It looks like a good program for anyone who is making a purchase up to $200,000.  So, I’m going to try them out and see how it goes.  Will keep you all posted. If you have had any experience with NACA — positive or negative — I’d love it if you would leave comments on my blog.

If you or anyone you know is looking to make a purchase up to $200,000 in the Baton Rouge area, let me know and I’ll put you in touch with the right people to start moving toward your 4.875% loan with no money down.  This looks like a good spot to advertise my new Google Voice number which is 225-341-BRLA (2752).