The State of the Market for Buyers in Baton Rouge Louisiana

Is it still a seller’s market today in Baton Rouge? As experts in the Baton Rouge real estate market, we get asked this question a lot.

The answer isn’t as simple as yes or no.

The State of the Market for Buyers in Baton Rouge Louisiana

First off, it really depends on the property type and location.

Renovated single family homes in desirable locations that are priced well have been selling like crazy, as well as fixer uppers (at the right price) because the investing community is very strong and there is lots of competition. Some areas have very strong demand, while others you practically need to give the house away.

Buyers are often looking for the same things – good neighborhoods, access to transportation, shopping, good schools, close to work, etc. That’s why Mid-city and Southdowns are so popular. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market, however anything can sell quickly at the right price.

But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Most buyers don’t want a project, or something non-conforming. The more the house looks like the ones around it, the more people who will be interested, and the higher the price will be.

COVID is screwing with demand – Prices were trending down due to uncertainty about COVID in many areas of Baton Rouge, but seem to be rebounding. The second wave could have a big impact on prices though, as well as an increase in foreclosure activity once the COVID loan flexibility ends. Some buyers look at this as an opportunity to get a desirable house for a discount, while others want to wait and see what happens.

Investment properties are in demand. The massive amounts of foreign cash flooding in to invest in US real estate have impacted many markets in unique ways. However, Baton Rouge doesn’t see much of this, at least in residential. The popularity of fix and flip shows on HGTV has led to a lot of investment activity though. Flippers need to get the property for a minimum 66% of the after repair value (ARV) to cover closing fees, realtor fees, repairs, holding costs, and still make a little bit of profit. Landlords can pay a little more, but investors do need the numbers to work for them to buy.

Overall, investors are in a position to pay cash for properties and have been picking up the good deals in the marketplace.

Lots of sellers are trying out speculative prices just to see if anyone bites, but usually nobody does and they lower their price every week or two until it is priced correctly.

Financing is still a major obstacle for buyers. Banks are being stricter than they have been the last couple years, requiring more money down and even changing their terms at the last minute. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was five years ago.

Sound confusing? It is. But We Can Help.

There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once.

We’re investing in Baton Rouge because we believe in the community and the people here.

If you need to sell a property near Baton Rouge, we can help you.

We buy properties like yours from people who need to sell fast.

Give us a call anytime (225) 288-7209 or fill out the form 
over here today if you’re looking to sell a Baton Rouge house fast!

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