Real Estate Information

Louisiana citizens are happy folk –i n fact, according to a recent survey by the Centers for Disease Control and Prevention (CDCP), they are the happiest people in America! The pleasant, sunny climate mixed with a lifestyle that includes great cooking and Dixieland music beat out near rivals Hawaii, Florida, Tennessee, and Arizona. 

Economists Andrew J. Oswald of the University of Warwick, England and Stephen Wu of Hamilton College in Clinton, NY then matched the CDCP results with studies that rated states on criteria such as climate, crime rates, air quality, schools, local taxes, commuting time, and the availability of public land.  Their report found that people who perceived their quality of life as good also report themselves as “happiest.”  Even though part of the research was done before Hurricane Katrina and part after, the findings hold up.

Oswald noted: "We wanted to study whether people's feelings of satisfaction with their own lives are reliable, that is, whether they match up to reality — of sunshine hours, congestion, air quality, etceteras — in their own state. And they do match."  Perception is reality!

Among the lowest states in satisfaction are New York (50^th) and California (46^th).  The researchers theorized that people moved to these states assuming they would be great place to live but congestion, housing prices, taxes increases, and corruption offset the advantages and made people unhappy with their environment.

The research findings are played out in our recent blogs about the Greater Baton Rouge area:

The economy in Baton Rouge is growing despite the recession.

Baton Rouge is among the hottest housing markets.

The home buyer’s tax credit will get you plenty in Greater Baton Rouge and Ascension.

Area schools are among the top performers in the state.

Sandy Ogburn-Sandlin and her team at RE/Max Excellent Properties can share more reasons to be happy with you, as well as show you the best new and resale homes in Ascension Parish as well as neighboring cities in the Baton Rouge market.  It’s likely that homes will move quickly with the new incentives in place, so contact Sandy's Team today to jumpstart your housing search!

With the holidays nearly here it may tempting to put your home buying or selling activities on hold. Whether you are buying or selling in the Greater Baton Rouge area, it is easy to make the assumption that real estate transactions hardly fit into the busy seasonal plans.  This isn’t necessarily true, and your real estate agent can show you how to make holiday home buying or selling work out just fine

Sellers:

You may be tempted to take you home off the market for a while, so you can enjoy the season without having to do quick clean ups for unexpected showings.  Showing might also cut into gatherings you have planned.  If you are preparing for a party and elbow deep in bread dough, that is the last time you want strangers dropping by.

The reality is your agent can schedule showings around your schedule and not authorize ones by other agents the day you are having your annual holiday open house.

This year, incentives for buyers (which include you if you planning to buy another home) are so great that there is reason to keep your home on the buyer’s radar.  You have a real opportunity to sell the home more quickly than in the past months.

The only way selling might otherwise inconvenience you during the holidays is that you still need to keep the decorations modest.  If home usually resembles Chevy Chase’s Christmas Vacation dwelling, dial things back a notch and go for a minimalist look inside and out so the beauty of your home shows through. 

If you have a showing, your home will come off as warm and friendly if it smells of pine and bayberry and has a plate of cookies on the counter.

Buyers:

Just because it is the holidays doesn’t mean you can afford to put off your house shopping until after New Year’s.  Especially at lower price points, homes are moving quickly. With the home buyer tax credits and low interest rates on your side, this can be your time to beat the rush most realtors expect in January.

It is likely more homes will come on the market after the holiday. With fewer other buyers out, the holidays are a great time to look at homes already on the market that may be a match for you.  If you don’t fall in love with one, you can move on to the new offerings in January.

If you’ve have been transferred, your lease is up, your family is expanding – you may need to find a great home quickly,  Since fewer people are competing for homes during this time of year, you will have more chance of having a reasonable bid accepted on a home you love.

As a buyer, there are a couple of holiday rules you need to follow.  First, though are in a rush, the sellers may not always be able to make the house available on short notice.  Give them a little slack as they may have had plans before you called for the showing.  You will probably not be welcome on Christmas Day or 9 am December 26 or January 1.   Second, remember to look past the holiday décor when viewing the home.  That Christmas tree won’t always be in the living room or family room.

With holiday sales, Buyers can receive the wonderful gift of a Baton Rouge area house and sellers can unwrap the prized signed contract they have been waiting for..  Liven your holiday with a call to Sandy and her team.  They can find you the perfect place to call home in the new year in Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also you answer any questions you might have about the home buyer's tax credit - $8,000 for first time buyers or $6,500 for repeat buyers.

Prairieville home buyers, if you are planning on buy a home with FHA financing, listen up!

For over 50 years, FHA has helped those with less than perfect credit buy homes by guaranteeing the loans, but recent announcements by HUD Secretary Shaun Donovan indicate that major changes are on the way for both consumers and lenders.  Since the Great Depression, FHA has backed loans actually written through member banks.  Over the years, it has provided an alternative financing process that some sellers looked down on because it took longer. In recent boom times, FHA was only called on to guarantee about 3% of all mortgages. Buyers got their loans with as little as 3.5% down and with 500 credit scores though most participating lenders required a score of 620 or more.  Sellers could contribute up to 6% of the closing costs.

The recent mortgage crisis has affected FHA dramatically.  Over the last few yours, FHA suddenly has been called upon to back 30% of mortgages and 20% of refinancing deals on homes up to $729,750.  In an era when many homeowners have defaulted on loans, FHA cash reserves are at the lowest since 1994 and serious losses are projected for the next five years with over 71% of the losses coming from loans already on the books.  FHA has been called upon to back not just loans on starter homes but on more costly move up homes as well.  The defaults have hit them hard.

To prevent further losses, Donovan said the new plan would force potential buyers “to put more skin in the game” which would prevent further losses and stabilize the system.  The new rules would require buyers to put up a 5% down payment, raise required credit scores to a yet undetermined level, and decrease the amount of contribution the seller can make to the closing costs.  The agency is also considering whether to increase the monthly insurance fee borrowers pay.

HUD is also changing the rules for lenders, especially those who repeatedly make questionable loans.  All lenders will be held accountable for losses, and will be ranked on a “lender’s scorecard” of banks who make FHA loans. Lenders will have to submit annual financial reports and maintain higher net worth. Weak lenders will lose their ability to process FHA loans.  The agency does not want to be the source of the next “subprime crisis” in lending.

Will making it harder it to buy a home have the desired effect of reducing future loses for FHA?  The jury is out on this. Some critics of the new rules are more apt to blame unemployment and other disruptions in personal finance (i.e., divorce, death of spouse, illness or disability, unforeseen expenses) to cause people to get into mortgage trouble than how much down payment they paid.

FHA has not yet announced when the new rules go into effect but if the new down payment and credit score requirements would make a difference as to whether you could afford to buy a home now or not, waste no time in calling Sandy Ogburn Sandlin.  She and her team will discuss your options with you as you consider your new home in Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant. We can also you answer any questions you might have about the home buyer's tax credit - $8,000 first time buyers or $6,500 for repeat buyers.

Short sales sound like they could be the answer to a distressed Baton Rouge seller’s prayer, while offering buyers a great deal. They offer real promise to avert foreclosures.  However, often the time to process them is lengthy and the ultimate success rate, low.  Since the Making Home Affordable program came out in February, the Obama Administration has been announcing that new rules to make short sales quicker and easier were on the way. Recently, the Treasure Department has released these new rules to expedite short sales

Basically, the new guidelines offer financial incentives for borrowers, mortgage companies, and investors to participate in the program.

• $1000 to lenders for administrative costs
• $1500 to sellers to cover closing costs or for moving expenses
• Up to $3000 towards paying the junior lien holders to release their lien.

In order to qualify:

·         The property must be the home owner's principal residence.

·         The homeowner is delinquent on the mortgage or default looks likely.

·         The loan was made before Jan. 1 this year and is less than $729,750.

·         The borrower's total monthly mortgage payment exceeds 31 percent of before-tax income.

The new program standardizes paperwork and gives the lender 10 days to approve or turn down a request for a short sale. When it’s done, the short sale must release the borrower from the debt.  During the process, the lender cannot foreclose on the property or charge fees. The new rules come at a time when at least one major bank has adopted improved software to streamline paperwork for short sales. (Click here for the full text of the new rules.)

Mortgage servicers have 10 days to approve a request for short sale, and when done, the transaction must fully release the borrower from the debt. The deadlines remove a lot of the uncertainty from short sales, a relief to buyers as well as the seller and their agents.  Now sellers (and real estate agents) will have a clearer idea of how to proceed and buyers will know if they got the house in a timely manner too!

If you are at risk of foreclosure on your Baton Rouge home, Sandy can help you arrange a short sale. If you are looking for a home,  Sandy and her team can also help you find a short sale property in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also answer any questions you might have about the home buyer’s tax credit - $8,000 first time buyers or $6,500 for repeat buyers.

Even in Greater Baton Rouge, where home prices have not fallen as much as elsewhere, some who would like to move have put their plans on hold until things are a little better for sellers.   In a buyer’ s market, a real estate agent often has to deliver the bad news that the seller has to lower their asking (and selling ) prices a bit to be in line with the market.  The new Home Buyer’s Tax Credit promises to shake things up for sellers as well as buyers.

The Home Buyer’s Tax Credit offers you a chance to reassess your position. Now, repeat buyers who have lived in their home for at least five of the last eight years qualify for a $6,500 tax credit.  If you have been thinking of making a change the credit allows you to do that.  Why?

First of all, if you have a home priced under $250,000 in most parts of the country, your home is on the radar screen of many first time buyers.  True first time buyers who have never owned a home tend to be younger and not as affluent, for them, so an affordable home might be just want you want to sell. In, home at these price points are selling much faster than last year. If you want to sell, you might not only find a buyer, you might get multiple bids on your home.

Second, if you have been wanting to move, the $6,500 might give you the help you’ve need. This will offset the closing costs, partly compensate you for any loss in value, or give you some working capital for projects in the new house.

Third, when you are house shopping, you will also have the “buyer’s market advantage” on your side and be able to get more house for your money.  If you are looking for a bigger, better house, the seller may have lowered the price to meet the market.  With low interest rates currently offered , you might be able to find your dream at such a deal you fell less pain at how much you had to lower your price.

Fourth, the credit is called a move-up credit, but you don’t have to buy a more expensive home to qualify for the $6,500.  If you are looking to downsize due to retirement or a lifestyle choice to simplify, you find a new place that costs less and still get the tax credit.

Fifth, if you’ve been wanting to turn your home into a rental, this could be your chance.   Current interpretations of the new law do not prohibit you from keeping your current home as investment property any buying another for yourself as the primary residence.

Sixth, this credit could give you a chance to revisit a prior decision.  Say you moved north for a job, but now, a few years later, you realized you miss the Prairieville or want to be closer to your kids. If you have rented for more than three years, you can use the First Time Home buyer’s Credit to buy a new home or condo up North. If you bought and have lived in your home at least five of the last eight years, you can sell and buy elsewhere with the $6,500 bonus. You can even turn your current home into vacation home status, buy a primary residence and claim the credit. (For some of these trickier scenarios, make sure to consult your tax advisor.)

The purpose of the new credit to is to stimulate the housing market at all levels, although homes that sell for over $800,000 won’t qualify. Since the credit is expected to cost the government $10.8 billion in lost taxes (plus $10 billion for the first phase), it is highly unlikely that it will be renewed. As the time lines roughly correspond to when interest rates are likely to remain low, this next five + months are the perfect example of a “once in a lifetime opportunity” for you as a  seller to move your home.

The new credit can work for you!  Let Sandy and her team show you a wide selection of beautiful new and pre-owned homes in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also you answer any questions you might have about the home buyer's tax credit - $8,000 first time  buyers or $6,500 for repeat buyers.

Business Week recently named Baton Rouge one of the U.S. Metro’s Least Touched by Recession as well as placed it as No. 8 on the magazine’s list of Top 10 Metros in the U.S.  Based on a Booking's Institute’s assessment of the economic health of 100 cities with populations over 600,000.  Baton Rouge fared well in the four areas studied: job growth, gross metro product, unemployment change, and home price change.

As the capitol of Louisiana, Baton Rouge has a stable base of government employment plus a strong, expanding energy sector and a strong educational sector.  In the wake of Hurricane Katrina, the vibrant economy in Baton Rouge has been sparked in part by a construction boom.  Thousands of displaced families arrived in Baton Rouge after Hurricane Katrina and temporarily doubled the population.

Not everyone stayed, but the influx of people, as well as rampant property destruction, spurred demand for services and activity in the residential and commercial construction.   Currently, there are $5.1 billion of commercial construction projects underway, which includes Katrina repair and corporate expansion.  ExxonMobil (XOM), for example, is building a new chemical plant, while the French company SNF is building a new plant in the area.

This activity has made for good job growth and lower than average unemployment.  Baton Rough unemployment is currently 7.1%, a good 3% lower than the national average.  Wage growth has been weak.

It has also maintained the gross metropolitan product (GMP), which measures the value of all goods and services produced in the area.  Baton Rouge peaked in 2009 and hasn’t declined much. This indicates that demand has remained stable, despite the recession.

In the Baton Rouge area, housing prices were up 3.3% in through June 30, 2009 according to the recent report mentioned in BusinessWeek, and have remained stable in the 9 parishes that make up the Greater Baton Rough area.  Though housing sites like Trulia show that prices are down in the city of Baton Rouge at the moment, the area is viewed as a market where prices will rise.

The Greater Baton Rouge area includes nine parishes - Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Point Coupee, St. Helena, West Baton Rouge, and West Feliciana. 

Beat the recession blues!  Buy a new home in Baton Rouge!  Sandy and her team show you a wide selection of beautiful new and pre-owned homes in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also you answer any questions you might have about the home buyer’s tax credit - $8,000 for first time  buyers or $6,500 for repeat buyers.

At the beginning of 2009, Baton Rouge was 9^th on Housing Predictor's midyear list of the 10 hottest housing markets for buyers.  It is now was ranked 7^th on the list by midyear.  Things are getting hotter and for good reason!

Housing prices in some sections of the country have been a roller coaster ride for buyers and sellers. This has caused buyers to hold off buying as they thought the prices would decline further and caused sellers to put off selling or grit their teeth and price their property low.  In Baton Rouge and a few cities around the country, this has not been the pattern.  They may have felt some impact of the housing recession, but the economy has generally been strong.

As previously noted in our blog Baton Rouge Area Economy Growing in Midst of Recession,  Baton Rouge area housing prices have remained stable in the 9 parishes that make up the Greater Baton Rough area.  Though housing sites like Trulia show that prices are down at the moment, the area is viewed as a market where prices will rise.  In mid November, the average listing price of a Baton Rouge home is $259,189, with a median selling price of $167,250.  

Unlike other markets, Baton Rouge has not been battered by foreclosures that would leave the landscape flooded with bank owned homes.  Per the Brookings Report, there was 1 bank owned home per 1,000 mortgages.  More conservative lending prices in past shielded the city from much of the housing crisis felt elsewhere.

Bask in the heat of the Baton Rouge housing market!  Let Sandy and her team show you a wide selection of beautiful new and pre-owned homes in the Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant.  We can also you answer any questions you might have about the home buyer’s tax credit - $8,000 for first time buyers or $6,500 for repeat buyers.

As you may have read in our recent blog Put on Your Shopping Shoes, Ascension Home Buyers!, the homeowners tax credit has not only been expanded but been made better.  Greater Baton Rouge, including  Ascension Parish and East Baton Rouge Parish, have economies that are doing better than many places and so offer a stable place to settle.  If take a look at the pictures in we include here, you will notice that the area is also a beautiful place to call home.

Who is eligible for this tax credit?

First home buyers and repeat buyers are eligible for a credit.

·         First time buyers, which includes those who have not owned a home for three years or more.

·         Current homeowners who have owned and lived in a home a primary residence for at least five of the past eight years prior to purchasing the new home

Which homes qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided including single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.  However…

·         The purchase price must be less than $800,000

·         You must use the home as your principal residence – no vacation homes or investment property

·         Your cannot buy a home from a relative or spouse

Does the tax credit have to be repaid?

NO – this is a tax credit that does not have to be repaid.

How is the tax credit figured?

The tax credit is 10% of the home's purchase price, up to $8,000 for first-time home buyers and $6,500 for buyers having already owned a home.

When must you purchase the home?

To qualify for the home buyer tax credit, the principal residence must be purchased on or after January 1, 2009 and before April 30, 2010. However, you have until June 30, 2010 to close.

Is eligibility based on the home buyer's income?

Yes. Single taxpayers must have income of $125,000 or below to qualify while married couples income must be $225,000 or below. This is an increase from the previous bill.

How does the homeowner figure their tax credit?

The credit will come to you as a refund once you have filed your taxes. You must complete IRS Form 5405 to figure the amount of credit you will receive and claim it on your income tax form.

You must provide documentation that you purchased a home.

You can also check these government sites about the Home Buyer Tax Credit for more details:

·         Frequently asked questions about the $8,000 first-time home buyer tax credit.

·         Frequently asked questions about the $6,500 tax credit for repeat home buyers.

Sandy can help you answer any questions you might have about the tax credit and then show you a wide selection of beautiful new and pre-owned homes in the Greater Baton rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant. 

If you have slowed down your efforts find your new Ascension Parish home because you figured that you could not complete your sale in time to qualify for the $8000 first time homebuyer tax credit, put on your shopping shoes!  Not only is the credit extended till next April, it now offers some new provisions that will help you as a first time buyer and also help existing homeowners who want to move by offering a $6,500 tax credit. The redesigned credit allows you to make more money and still qualify ($125,000 for single, $225,000 for married, phase out of credit for incomes up to $20,000 higher.)  For repeat buyers, the only consideration is that they must have used their current home as a primary residence for 5 of the last 8 years.

By extending the credit to more potential buyers, the credit will help everyone.   First time buyers typically buy homes at the lower end of the price spectrum, while current homeowners often are ready for a more expensive house when they are making their second or third purchase.  Some folks who are ready to move have been put off by the prospect of a slow sale, so have put their moving plans on hold. With the new credit available, there will be a renewed interest in both starter and move-up homes.

Right now in Ascension Parish, the average home price hovers around $217,500 for new homes and $208,782 for exsisting homes.  There is a 3 month supply of homes under $100K and about a 5 month supply of homes up to $250.  For homes in the $351-400K range, the inventory is 18 months, while homes over $400 have a 40 month supply.  The new credit is likely to open up more buying opportunities for entry level buyers and encourage the sellers to buy properties that are likely to be more costly.  It is good on properties up to $800,000.

Though the new credit is good through April 30, 2010, you are only required to have a contract in place, but the closing need not be complete until July 1, 2010.  Currently, the credit that was due to expire on November 1 required the closing to be complete by that date.  Given that the whole loan-appraisal-closing process now takes longer, some buyers were likely to be clogged in the pipeline as the credit expired, while others put off the purchase figuring they would make it through in time. With the new credit, buyers with contracts have three months for the process to be completed.  This means you can buy in confidence right up to April 1, with the knowledge you will be able to claim the credit.

This is also good if you want to buy a newly built home.  Even if you are just looking at the floor plan today, you have plenty of time to buy one of the beautiful homes now under construction in Prairieville, Gonzales, Sorrento, or Geismar.  Builders have tended to construct model and a small quantity of homes so they are not left with unsold inventory, but could easily build more to accommodate buyers like you New home sales are on course to approach 500 homes in the parish this year.

Sandy Ogburn-Sandlin and her team at RE/Max Excellent Properties can explain all the details of the new credit to you, as well as show you the best new and resale homes in Ascension Parish as well as neighboring cities in the Baton Rouge market.  It’s likely that homes will move quickly with the new incentives in place, so contact Sandy's Team today to jumpstart your housing search!

Ascension Parish is booming these days, with its 6.7% unemployment over 2% lower than the national average, as new businesses going up all over town.  If you happen to be one of the unlucky people who lose their job, you have to figure how to stay afloat until you return to work.  If you have a mortgage, you want to save your home while taking care of your other bills too.  These days, many households already have two wage earners, so if one loses a job, there is no one else who can jump into the job market to help out.

Ideally, you should have three to six months in savings to carry you over in case of emergency, but many people live paycheck to paycheck without this safety net.  Finding a new job is often taking longer so having savings will not spare you from what every homeowner needs to do: develop a game plan for making it through till income returns to normal.  When your income is down, you must the order in which you pay your bills, but every creditor feels like they should come first.  You need to first pay your mortgage, insurance, utilities, and other necessities like food, followed by your car note, then your loans and credit cards.  If you have no reserves, obviously you will have to modify the list.

When you income changes and you have having difficulty paying your mortgage, there are programs designed to help make it through and avoid what will happen if you cannot ultimately pay: foreclosure.  Before you get to that point, it’s good to ask yourself if you want to keep the home.  You may realize that the maintaining the home always made things tight for you.  Though the current real estate market can be challenging, you might consider selling.  If you owe more on the home than it is worth, you may ask your Realtor® about selling it on a short sale, where the bank agrees to accept less than the loan value as full payment.  In any case, the time you are off is a good time to prepare the home for sale in case you would later decide to that. Even though you might not be able to afford costly remodeling projects, you can paint and declutter – tasks you may have need to do anyway.

If you want to keep your home, you need to take advantage of available resources. This means contacting your lender (or an outside housing counselor who will do this for you). Your lender may be able to help you if you contact them early and agree to reduced payments, forbearance (where you don’t have to pay for a short time), or a loan modification. 

For some of these plans to work, you need some income.  This may mean that you accept a job that pays less than what you were making but is enough to cover the house payment and your other basic expenses.  There is no point of jumping through all the hoops to get a loan modified if you will default in a few months because the payment is still too high for you.

Some people who have tried to get help say contacting the lender is more than a notion.  Though lenders say they want to work with customers, many distressed borrowers report that they can’t reach them, don’t hear back from them, or wait forever, only to be told that they don’t qualify or that they should apply to the Federal Making Home Affordable program. This is why it is often a good idea to talk with a HUD-approved counselor who might be able to get in touch with your lender or at least help you explore other resources before foreclosure looms. 

In trouble with your mortgage due to job loss or any other reason?  The State of Louisiana has many resources to help you.  Want to discuss your situation with a knowledgeable Realtor®? Sandy-Ogburn-Sandlin and her Team can talk to you about selling your home at short sale.   We can show the best homes in Ascension Parish, as well East Baton Rouge Parish or Livingston Parish.