How NOT to get maximum value for your Greater Baton Rouge home: Ignore conformity

appraisal-conformity-and-valuesHow NOT to get maximum value for your Greater Baton Rouge home: Ignore conformity

While my Appraiser Friend, Tom Horn SRA, writes this about the Alabama housing market, a Southern market, this is so very pertinent to our “Southern” Baton Rouge Louisiana housing market. I can give you example after example where “different”, “unique”, “modern” and “contemporary” have taken 3 to 4 times longer to sell and sold at drastic discounts because it was just odd and sometimes just downright “unattractive”. When I say “unattractive”, I ‘m not just referring to my personal preference, but rather buyers obvious negative reaction to the MLS Listing. Unattractive homes sell at strong discounts to the normal market, these 3 examples below of 3,365sf, 3,030sf and 2900sf only sold for $59/sf, $79/sf and $62/sf and months and years to sell. Tom’s article link is below.

Less Popular Greater Baton Rouge Home Styles
In Greater Baton Rouge, “Contemporary”, “Modern”, Boxy “Cape Cod” and “Log Cabin” don’t necessarily bring the highest return on investment nor sell the fastest.

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Ignore conformity Consequences Example #1 
From 2010 to 2013, this home was listed 3 times in MLS over 617 days. The sellers “spent” many thousands trying to help the home overcome unfavorable design and appeal. This 3,365sf home eventually sold at only $200,000 or $59/sf when it was originally listed for $285,000. Ths home sold for $85,000 less sellers lost money on their sale. I know all of this because I appraised it. I purposely used the word “spent” rather than “invested” because sometimes, it doesn’t make economic sense to invest in issues difficult to fix for buyers. And, style is one of those issues.

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Ignore conformity Consequences Example #2 
From 2009 to 2013, this home was listed 5 times in MLS over 686 days. After spending many thousands trying to help the home overcome unfavorable design and appeal, this 3,030sf home eventually sold at only $240,000 or $79/sf when it was originally listed for $274,500. It sold for $34,500 less than original listing price and only 87% of original listing price.

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Ignore conformity Consequences Example #3 
This odd design was listed For Sale By Owner for a long time. In 2013, this home was listed 2 times in MLS over 300 days. After appearing to spend many thousands trying to help the home overcome unfavorable design and appeal, this 2,900sf home eventually sold at only $180,000 or $62/sf when it was originally listed for $252,000. It sold for $72,000 less than original listing price and only 71% of original listing price.

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Most Favorable Home Styles In Greater Baton Rouge
On the other hand, French, Country French, Acadian and even some Ranch styles appear to return highest return on investment and sell the quickest….well, maybe not so much for the tired “Ranch”.

Examples of more popular Greater Baton Rouge Home Styles

popular-baton-rouge-real-estate-home-styles

 

Tom Horn’s article link:
How NOT to get maximum value for your home: Ignore conformity

tom-horn-blog

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About Bill Cobb, Appraiser

The Baton Rouge Residential Appraisal Blog is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 24 years experience as a Baton Rouge Residential Home Appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! 225-293-1500