Real Estate Information

Baton Rouge Real Estate Blog

Glenda Daughety & Team

Blog

Displaying blog entries 1-10 of 125

Should You FSBO?

by Glenda Daughety & Team

Are you planning to sell your home in Baton Rouge? In this current real estate market some home sellers may think it’s a good idea to sell their home on their own. This is known as a For Sale by Owner (FSBO). Is selling your home as a FSBO a good idea?

Here are the top five reasons why selling as a FSBO is not the best idea:

1. Exposure to Prospective Buyers

Real estate agents have typically been in business for years and have spent thousands of dollars on marketing strategies designed to sell homes quickly. That’s how they make a living. Do you have a marketing strategy and network that will expose your home to the most sellers? And sorry, putting up an ad on Craigslist or Facebook doesn’t even come close. An effective agent can expose your home to buyers across the country, or even the entire world? Can you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

49% on the internet

31% from a Real Estate Agent

7% from a yard sign

1% from newspapers

94% of buyers found their home from a method other than a FSBO seller. Putting a sign on the front lawn will only expose your home to maybe hundreds of people. Agents using the internet can expose your home potentially to millions of people. Which method do you think is more effective?

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

The buyer who wants the best deal possible

The buyer’s agent who solely represents the best interest of the buyer

The buyer’s attorney (in some parts of the country)

The home inspection companies, which work for the buyer and will almost always find some problems with the house

The appraiser if there is a question of value

4. FSBOing Has Become More Difficult

Do you love doing tons of paperwork? If so, then selling a home by yourself will be perfect for you. But if you’re like most people, you don’t love doing tons of paperwork.  So in that case, let someone else do it. And there’s more paperwork to be done now than ever, due to industry disclosures and regulations having become mandatory. This is why the percentage of people who sell as FSBO has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money When Using an Agent

It may seem as if you’re saving money by selling your home on your own because you’re not paying the seller’s commission. But the fact is that the seller and buyer can’t both save the commission.

A study by Collateral Analytics revealed that people who sell as FSBOs don’t actually save anything, and in some cases, may be costing themselves more. Using an agent will expose your home to more buyers, and as such the greater the chances are that there could be a bidding war. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

We invite you to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

VA Loans Help Millions of Veterans Own a Home

by Glenda Daughety & Team

Do you know what government program has helped over 22 million veterans buy a home? It's known as the Veterans Affairs (VA) Home Loans Program. The thing is that even though it's helped so many Americans buy a home, many veterans still do not know the details of the program. Are you a veteran and interested in buying a home? If so, here's a breakdown of the benefits of a VA loan and how you can apply.

Top 5 Benefits of a VA Home Loan

  • You can buy a home no down payment. 82% of all veterans with a VA Loan in 2016 bought a home with 0% down!
  • You don't need Private Mortgage Insurance (PMI). Usually PMI is required with other loans if the down payment is under 20%.
  • You can get a loan with a lower credit score. VA Home Loans don't require as high of a score as other loans. The average FICO® score of a borrower with a VA Loan is 620, as opposed to 676 for an FHA loan, or 753 for a conventional home loan.
  • Closing costs are limited. Sellers can pay all of a buyer’s loan-related closing costs and up to 4% in concessions in some cases.
  • VA Loans have the lowest interest rates of any home loan.

Who Qualifies for a VA Home Loan?

First you need to visit www.benefits.va.gov to obtain your Certificate of Eligibility (COE). You need this to "verify to the lender that you are eligible for a VA-backed loan.”

You Can Apply for a VA Loan if You:

  • Serve 90 consecutive days during wartime
  • Serve 181 consecutive days during peacetime
  • Have more than 6 years in the National Guard or Reserves
  • Are the spouse of a service member who has died in the line of duty or as the result of a service-related disability

With a VA Loan You Can:

  • Purchase a Home
  • Purchase a Condo
  • Build a Home
  • Refinance an existing home loan
  • Make improvements to a home by installing energy-related features or making energy-efficient improvements

If you've served this country and want to own a home of your own, why wait? Give us a call and we'll be happy to help you see if you qualify for a VA loan today.

Make sure to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Would a Recession Spark a Housing Crisis?

by Glenda Daughety & Team

This country has been experiencing economic growth for almost a decade.  But as most economists and analysts know, a recession can't be far away after so much growth. Zillow Research recently reported on a Pulsenomics survey that asked economists and market analysts how they felt about the housing market.  The report also shed light on the possible timing of the next recession.

Experts largely expect the next recession to begin in 2020.”

That timing agrees with a recent survey of economists by the Wall Street Journal:

“The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed.”

But a recession does not necessarily mean there's going to be a housing crisis.

Here's how the Merriam-Webster Dictionary defines a recession:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

A recession is a slowing down of the economy. But it doesn't mean that we're going through a housing crisis. For a certainty, the housing crash of 2008 was the cause of the last recession. But notice that the recession did not cause the housing crisis. In fact, during the previous five recessions home values appreciated.

According to the experts surveyed by Pulsenomics, the top three probable triggers for the next recession are:

  • Monetary policy
  • Trade policy
  • A stock market correction

A housing market correction was ranked ninth in probability. Those same experts also projected that home values would continue to appreciate in 2019, 2020, 2021 and 2022.  

Others agree that housing will not be impacted like it was a decade ago.

Mark Fleming, First American’s Chief Economistexplained:

“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”

And U.S. News and World Report agreed:

“Fortunately – and hopefully – the history of recessions and current issues that could harm the economy don’t lead many to believe the housing market crash will repeat itself in an upcoming decline.”

To sum it up, a recession may be in our future, but it doesn't mean that there will be a housing crisis.

We invite you to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Are You Ready to Own a Second Home?

by Glenda Daughety & Team

Have you thought about buying a 2nd home or vacation home? Owning a 2nd home is certainly the dream of many Americans.  Not only does owning a second home provide a strong investment opportunity, but  it’s a great way to plan for your retirement years. Also, since finance rates are now at their lowest in years, now is an ideal time to buy a 2nd home.

Why should you think about buying a 2nd home or vacation home? Answering this question will help you see where your priorities are.

You Can Afford It

Most people who buy a 2nd home are middle aged, at least in their 40s and are making more money by that time in their life.  Many 2nd home buyers have children that have moved out, or perhaps they’re getting ready to find a home to have to vacation in or retire to.  These people don’t have as strong of a reason to stay in one place.  Also, by the time most people get to that age, they’re making a higher income and have more in savings.

A Good Investment

If you’re also thinking that a second home will be a good investment, you’re on the right track. Owning a 2nd home can be a good investment, but like any investment, there can be risks. The location of a home is important, as some areas grow differently and can affect property values for better or worse. Make sure you find a home in an area that shows growth.

Comfortable Retirement

Are you getting ready to retire? Since most people buy a 2nd home in the latter half of their lives, they are planning for retirement or at least thinking about retiring by that age. Owning a second home give you the opportunity to change where you live during the seasons.

Let’s say you want to retire to a community with a beautiful lake front and sunny skies. Why not search for a home in the area you want to retire? Even if you’re not ready to retire yet, you’ll have a second home when you do reach that point, and it will have increased in value.

Tax Benefits

Who doesn’t love a great tax break? When you own a 2nd home, you can write off your property taxes on your federal returns. And it doesn’t matter if it’s an investment, rental, or for your own use. You can also deduct interest, insurance, and depreciation against your home’s value.

Buying a second home may not be for everyone. But if it’s something you can do, take time to consider the advantages and disadvantages before you make the big move.

Make sure to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Good Landscaping Adds Value to Your Home

by Glenda Daughety & Team

Everyone loves a well landscaped home. Landscaping is such an important part of your property’s value that it can actually raise your home value by up to 11%, sometimes even more.  Better yet is that even though landscaping has such a big impact on your home’s value, it’s one of the easiest home improvements you can make. Here’s a few tips to help you make your landscaping a valuable asset for your home.

Match the Style of Your Home

If you want to get the most return on your investment, your landscaping should fit the style of your home. You wouldn’t, for example, put in a Japanese garden if you have a Victorian style home. For this style of home, a cottage style or country landscape would work best, as it fits in with the formality of the home.  On the other hand, modern style homes benefit from landscaping that has greenery and natural looking beds that blend in with the contours of your property. For these homes, formal landscaping would definitely be out of place.

Have a Plan

Any great landscape needs designing. Make sure you have a balance between planting too many high maintenance plants and just plain grass with no landscaping. Aim for a foundation planting with a few points of interest. Your landscaping should be diverse, but not too much. In other words, don’t go buying a bunch of different types of plants.  You should aim for a uniform look that has just enough variety to make your landscaping interesting.

Seasons Change

Plan for your landscaping to look good in all seasons. In Spring you may want blooming bulbs, in summer annual beds, in fall shrubs with bright leaves, and in winter you might want evergreens. Buyers will see that the landscape will be attractive all year, further increasing its value.

Trees

Some may feel that trees are a liability in a landscape design. But that’s not the case.  According to one study, homes on streets lined with trees had a 10 – 15 percent higher sale price compared to similar neighborhoods with fewer trees. Trees have many advantages beyond removing carbon dioxide and pollution from the air.  They also keep your home cooler and relieve stress.

Edging

A lawn will look even better when it’s edged. An edged lawn gives the appearance of being easy to maintain since there’s fewer weeks. It’s also a great first impression for buyers, as it shows that you take meticulous care of your lawn and property.

You can add value to your home by focusing on your landscaping, as long as you have a plan and keep it from getting too complex.

Has the Luxury Home Market Been Affected by the Tax Reform?

by Glenda Daughety & Team

Some have worried that the new tax code would hurt the luxury home market. This fear was based on the fact that the new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. This created some concern that this would have a negative impact on luxury home sales.

According to Capital Economics:

“The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.”

Mark Zandi of Moody’s Analytics brings out this important point:

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

The National Association of Realtors (NAR) predicted price declines in “high cost, higher tax areas” because of the tax changes.

What has actually happened?

Let’s consider some metrics before we conclude that the luxury market is declining:

1. NAR’s latest Existing Home Sales Report shows the percent change in sales from last year:

  • Homes sales between $500,000 – $750,000 are up 11.9%
  • Homes sales between $750,000 – $1M are up 16.8%
  • Homes sales over $1,000,000 are up 26.7%

2. Trulia reported  that searches for “premium” homes increased from 38.4% in the fourth quarter of 2017 to 41.4% in the first quarter of 2018.

3. Bloomberg also had this to say in a recent article:

“Median home values nationally rose 8 percent in March compared with a year earlier, while neighborhoods of San Francisco and San Jose, California, have increased more than 25 percent.

Prices in affluent areas in Delaware and New York, such as the Hamptons, also surged more than 20 percent.”

Zillow’s Senior Economist, Aaron Terrazas, summed up real estate’s luxury market this way:

“We are seeing the opposite of what was expected. We have certainly not seen the doomsday predictions play out.”

Make sure to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Tips to Get Your Family to Clean the Closets

by Glenda Daughety & Team

Closet organization is not necessarily everyone’s favorite chore. If you have children, it’s no doubt even more daunting. It’s no surprise that closets get messy though. Most of us have busy lives, and it’s hard to stay on top of something such as organizing closets. What are some ways you can motivate your family to help you get your closets back in shape?

Your family may not be too thrilled at the prospect of cleaning the closets. But there are a few tips that can help bring everyone together on this project.

Talk About It

Let your family know what you want to accomplish before you start, and get some ideas from them as well. If the whole family can agree on what needs to be done, they’ll feel more involved. In other words, don’t just announce that it’s time to clean all the closets. Make sure you let your children know there will be a reward in it for them according to how much they accomplish.

Planning

What do you want to accomplish when you clean out your closets? Do you just want them to look cleaner, or do you want more detailed organization? Laying out what you want to accomplish will be a big help. Are there any clothes you don’t wear? Are there items that have just piled up over the years? Set realistic goals to clean out unwanted items, and then organize what’s left.  Setting realistic goals will help to avoid disappointment.

Rewards

Everyone loves rewards.  Take regular breaks, and reward your family with things that you know they love. Do they have a favorite food or activity? You know what your family loves to eat or do, so try to make that happen for them when they reach a goal. Making the experience fun and rewarding will go a long way to making your goals a reality.

Unwanted Items

No doubt you will come across things you don’t want or need any more. Set  them aside to donate or sell. Donating useful items to charities such as Goodwill is a great way to teach your children to give. Or you can also try some consignment shops to make some fast cash.

Organizing your closets can actually be a rewarding experience for the whole family. It teaches your kids cooperation and organizational skills.  And it can be a fun time if you plan ahead.

Check back on our blog for more home selling and buying tips. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Celebrate Our Freedom This Independance Day in Baton Rouge

by Glenda Daughety & Team

The 4th of July is almost here! Now is the time to plan how you’re going to celebrate our nation’s independence in Baton Rouge.  And if you’ve lived in Baton Rouge for any length of time, you already know that our 4th of July celebrations are some of the best on the country.  So get ready to have fun and celebrate freedom with these events coming up on July 4.

ANNUAL FIREWORKS SHOW

What could be better than fireworks over the Mississippi River? This Baton Rouge tradition brings thousands of people each year to witness the spectacular display.  You can bring a chair or blanket and watch from the water front.  Or you can watch from the many attractions and venues along the waterfront that are hosting viewing events, such as the USS Kidd.

KENILWORTH INDEPENDENCE DAY PARADE
Kenilworth Neighborhood| July 3, 2018 | 6:30 PM to 7:00 PM

Join the community of Kenilworth for their Annual Independence Day Parade.  The pageantry is enjoyed by thousands of spectators, who are showered with beads, trinkets, and candy by the parade participants. The parade route runs along Kenilworth Parkway, and includes a range of civic groups, bands, and veterans groups.

RED, WHITE & BLUE CELEBRATION
LSU Museum of Art-Shaw Center for the Arts | July 4, 2018 | 7:00 PM to 10:00 PM

Join the LSU Museum of Art-Shaw Center for the Arts as you watch the annual fireworks on the Mississippi from atop the Shaw Center for the Arts' Pennington Rooftop Terrace. You’ll also enjoy food from Capital City Grill and music from Premier Sound Services. $45 for nonmembers, $35 for members, $30 for children 6–12, free for children 5 and under.

USS KIDD'S FOURTH OF JULY SPECTACULAR!
USS Kidd Veterans Memorial and Museum | July 4, 2018 | 4:00 PM to 10:00 PM

For over two decades, the ISS Kidd has been hosting this family events to celebrate our independence. And what better place to celebrate than on this historic ship, restored to her original configuration from WWII.

Don’t miss these memorable Baton Rouge 4th of July celebrations pass you by this year!

Join us every week on our blog for more great reasons to call Baton Rouge home.  You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

When Should a Buyer Ask the Seller to Pay Thier Closing Costs?

by Glenda Daughety & Team

Why would a buyer ever need to ask the seller to pay for their closing costs? It’s actually a useful strategy, both for the buyer and the seller.  How? If you’re a first time home buyer, it can help you afford buying a home and take care of moving costs.  As a seller, it also has advantages, as it can help sell the home faster.

Some people may think that by asking the seller to pay the closing costs that this shows that the buyer doesn’t have enough money to make the deal. But that isn’t the case.  It’s a strategy that more and more home buyers are using to help make the deal. It’s called a closing cost credit and is a standard practice allowed by lenders.

Typically, first time home buyers are the ones who ask for a closing cost credit. These buyers may have a VA or FHA loan that requires a down payment of about 3% for FHA and zero down for a VA loan. Usually these buyers don’t have enough cash to pay the closing costs.  In this case, asking the seller to pay for closing costs makes sense.

How does a buyer make this request appealing to the seller? This can be done by offering the seller the full asking price of the home, or perhaps more. So if the asking price of the home is $300,000, then the seller would net $291,000.  Or the buyer can offer 3% over the asking price to make it even more enticing.  So the buyer would offer in this case $309,000.  It’s a win for both sides, as the buyer gets their home without coming up with extra cash, and the seller gets close to the full asking price, or even gets the whole asking price.

Another way to convince the seller to pay closing costs is to offer to buy the house as-is, and that you will pay for any issues after closing. Sellers want a buyer that won’t cause problems during the escrow period. So if you assure them that the escrow will close in time, this may give them more incentive.  Motivated sellers will already be willing to work on the price, so it’s not such a stretch to add in the closing costs.

What if the seller doesn’t want to pay the full closing costs? All is not lost.  You can ask for a bit less and find a way to pay the rest without borrowing more.

Asking the seller to pay your closing costs is not a practice every home buyer should use, but it can certainly help in certain situations, especially if you’re a first time buyer.

Visit our blog every week for more real estate tips and Baton Rouge articles. You can search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Is a 15-Year Mortage Right For You?

by Glenda Daughety & Team

Those who plan to buy a home in Baton Rouge and want to pay it off have a great option. It’s called a 15-year mortgage, and it can be a great way to pay off your mortgage in half the time while saving thousands of dollars on interest. The one thing to keep in mind is that you’ll have to have enough income to keep on top of the payments, in addition to all your regular expenses. Since the payments are about 50% higher than a similar 30-year mortgage, this may deter some home buyers.

As with any mortgage, there’s pros and cons.  What are the pros and cons of a 15-year mortgage?

Pros

  • Owning your home faster. You’ll have peace of mind after owning your home in only 15 years.
  • Builds equity. Since the principal will be paid off faster, you’ll build more equity.
  • Save money. 15-year loans have a lower interest rate, since there’s fewer years of risk.  And since the term is shorter, you save even more money on interest.

Cons

  • Higher payments. You’ll need to be sure that you can sustain the level of income needed to keep with the payments, which are about 50% higher than a 30-year loan.
  • Locked up equity. The equity you’re building is locked up in the home. The only way to use it is to sell the home or refinancing.
  • Missing other opportunities. You may not be able to take advantage of other opportunities due to the higher payments. Examples would be investments or matching your employers contribution to a retirement account.
  • Lower quality home.  Since you aren’t stretching your payments over 30-years, you won’t qualify for as high of an amount as you would with a 30-year loan.

To sum up, a 15-year loan is an ideal way for those who can afford the higher payments to save money and own their home more quickly. But if you’re not entirely sure your finances are stable, then you should avoid a 15-year mortgage.

If you have any questions, give us a call.  We'll be glad to help you decide what type of mortgage works best for your budget.

Make sure to check back on our blog every week for more great real estate advice, along with articles about the great reasons to buy a home in Baton Rouge. You can also search for your dream home now using our convenient home search tool. And make sure to follow us on Facebook for the latest real estate updates for Baton Rouge and the surrounding area.

Displaying blog entries 1-10 of 125

Contact Information

Photo of Glenda Daughety Real Estate
Glenda Daughety
RE/MAX First
4750 Sherwood Common Blvd
Baton Rouge LA 70816
225-205-2672
225-291-1234
Fax: 225-612-6422

 

All information and pictures on this website are copyright protected.

Glenda Daughety & Team
RE/MAX First
Office: 225-291-1234
Cell: 225-205-2672
4750 Sherwood Common Blvd
Baton Rouge, LA 70816
Each Office Independently Owned and Operated
Licensed Realtor in the State of Louisiana by the Louisiana Real Estate Commission



Glenda Daughety Michelle Copeland Ashley Daughety
Team Leader Buyer Specialist Buyer Specialist
Stager Decorator

 

 

 

 

 

Quick Search

Listing Alerts

Be the first to know what's coming up for sale in the greater Baton Rouge real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Contact Us

Our office is located at:
4750 Sherwood Common Blvd
Baton Rouge, LA 70816

Office: 225-291-1234
Cell: 225-205-2672
Glenda@GlendaDaughety.com

Contact Us Online