Leveraging Technology and Data

📊📱One of our key priorities is leveraging technology and data. 📊💻
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Modernization of the appraisal industry is underway.
.Our clients have so much to gain with these advances! Utilizing technology and data provides the most ⭐️reliable, ⭐️efficient, and ⭐️secure services.
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We’ve made significant investments in technology and data over the past several years. We plan to continue these into the future!
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Follow along to find out more on what sets Acadiana Appraisals & Consulting apart! We want YOU 🫵 to have confidence in the valuation process!
#appraiser #acadiana #appraisals #homevalues #realestate #louisiana

🏡Adjustments ‼

Appraisers make adjustments to comparables to account for differences between properties. Adjustments reflect the incremental value buyers are willing to pay for specific features.
 
📣📣📣Adjustments are MARKET SPECIFIC!!! There is NOT a one-size fits all dollar value for certain features. Also, keep in mind a “market” is not only defined by location. 📣📣📣
 
The dollar amount is based on the value of that feature to the buyers in that specific market. Some markets value certain features more than other markets.
Also, the cost of the feature often does not equal the value of the adjustment. For example, a pool may cost $75k but the value added may be much less.
 
⚠Be cautious of cheat sheets that specific values for certain features. Appraisers very carefully analyze each market to determine the impact of specific features. ⚠

36% of active listings in Acadiana have had a price drop

💥36% of active listings in Acadiana have had a price drop💥

We’re monitoring stats like these weekly. These stats give us insight into how sellers (and buyers) are adjusting their expectations to the changing market.

📊This graphic shows parish by parish detail. In the bottom right chart, it’s interesting to see the magnitude of the price reductions by parish. For the active listings with price reductions, there’s average reduction of about 8% as compared to the original list price. This a price drop of about $22,000 on a $275,000 house.

❤️Let us know if you want to see more of this type of information by clicking the like button!❤️

#acadianaappraisals #appraiser #realestate #acadiana #homevalues

Quarterly Parish Trends

📊One of the common ways we monitor market stats is parish by parish. This graphic shows how each market behaves a little different. While the end of the 3rd quarter is about 15 days away, we can still gather some good info on the general direction of the data.
Interesting takeaways:
💥Lafayette parish’s sales volume tends to be more than double the volume of the other 5 parishes combined. The stats tend to be a little “smoother” for the parishes like Lafayette with more sales.
💥Sales prices in Lafayette parish appear to still be slightly increasing.📈 Vermilion parish shows somewhat stable prices.↔️ The data for the other parishes are indicating some decline.📉
⚠️Keep in mind, there’s still so many ways to slice the data even within a parish. Sales price ranges, MLS areas, home sizes and ages, to just name a few. The stats represent the average or median and don’t apply to EVERY SINGLE house in a parish.

Does a messy house affect a home appraisal?

🎯In most situations, not really! Dirty dishes in the sink, toys in the living room, clothes on the floor are part of daily life for most of us. Appraisers are trained to look past these types of personal property. Their focus is on the permanent fixtures such as walls, floors, cabinets, etc.
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📸If the appraisal is being completed for a lending transaction, keep in mind that photos of the interior will typically be included within the appraisal report provided to the bank or mortgage company. So, it may be a good idea to tuck away anything you wouldn’t want showing up in a picture. 🫣😬
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In short, prepare your property the way that makes you feel comfortable but don’t add more stress to your life trying to make sure your house is “magazine” ready just for the appraiser’s sake!

Bracketing

🌟 Appraisers use bracketing to select comps with features and characteristics that are both inferior and superior to those of the subject property. 🌟
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🏆 The goal is to attempt to bracket all features that require adjustments. Features may include items such as condition, lot size, living area, location, view, or amenities such a pool or garage.
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🎯💯 In a perfect world, each property would indicate the same value after all adjustments are made. But…real estate is not perfect, and a range of adjusted values is typically formed.
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👨‍💼 Most lenders require the opinion of value to be bracketed by the sales prices/adjusted sales prices of the comparables.
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Bracketing (per FHA)
Definition: Bracketing refers to selecting comparable properties with features that are superior to and inferior to the subject features.
Standard: Comparable properties must be selected based on the principle of substitution, and the analysis will reveal the relevance of that data. Comparable properties should not be chosen only because their prices bracket a desired or estimated value.
Required Analysis and Reporting: In analyzing the comparable pool to determine the best comparable sales to display and compare in the adjustment grid, the Appraiser must use Bracketing techniques when possible and appropriate.
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Bracketing (per the Dictionary of Real Estate Appraisal, 7th Edition)
  • In a quantitative analysis, a process in which an appraiser chooses comparable sales or listings that display both superior and inferior elements of comparison to the subject property.
  • A process in which an appraiser determines a probable range of values for a property by applying qualitative techniques of comparative analysis to a group of comparable sales. The array of comparable sales may be divided into 3 groups – those superior to the subject property, those similar to the subject property, and those inferior to the subject property. The adjusted sale prices reflected by the sales requiring downward adjustment and those requiring upward adjustment refine the probable range of values for the subject property and identify a value bracket in which the final value opinion will fall.

Zillow, Trulia, Realtor.com….Why would you even need an Appraiser?!?

Home valuation tools like these simply use algorithms and generic data to “guess” your home’s value.

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Automated systems do a poor job of valuing qualities and characteristics that are intangible. Fresh paint, remodeling efforts, quality building materials, etc. are most likely not considered.   On the flip side, structural issues, deferred maintenance, and other worrisome issues won’t be reflected.

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In fact, Zillow exited the home-selling business in 2021 after citing their own issues accurately predicting home prices. 🤔 https://www.entrepreneur.com/article/395528

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Check out this article for more insight on the topic: https://www.fool.com/the-ascent/mortgages/articles/why-online-home-valuations-are-often-wrong/

Saint Martin Parish Market Update

The real estate market is constantly changing.  If you are thinking about listing your property for sale, purchasing a property, or going through a divorce/estate settlement, it is important to have the most up-to-date information.  Here are a few graphs and charts showing how the Saint Martin Parish real estate market has been performing (Look at the difference between 2020 and 2021!!!!).

New Saint Martin Parish Real Estate Market Update. Click the link to interactive analysis. https://public.tableau.com/views/St_MartinParishTrendsFeburary2022/Story1?:language=en-US&publish=yes&:display_count=n&:origin=viz_share_link

#AcadianaAppraisals #RealEstate #Appraiser #MarketUpdate #MarketExpert

What happens during an appraisal inspection?

Real estate appraisals typically involve an on-site property inspection.  The appraiser will schedule an appointment in advance with the homeowner or real estate agent.  During the site visit, the appraiser will generally make observations, take pictures, and measure the house.

It can be helpful to know what to expect while the appraiser is at your home.

  1. Measure, observe, and photograph the exterior – Appraisers use a variety of tools to measure the exterior of the house. Any other permanent structures such as guest houses or workshops on the property will also be measured.  These measurements will be used to create a sketch, also known as a basic floorplan, of the house. The appraiser will also take pictures of the exterior and may make notes of his/her
  2. Observe and photograph the interior – The appraiser will need access to enter the house and any other permanent structures on the property. He or she will perform a walk-through of the home where access to all rooms and closets will be necessary.  The appraiser will take pictures of each room.  He or she will observe and potentially make notes regarding the quality and condition of the interior building materials and fixtures.
  3. Potentially check electrical outlets, appliances, window access, and other utilities – Appraisals completed for certain types of lending transactions, such as for FHA loans, have additional requirements. The appraiser may be required to confirm all utilities and appliances are turned on and function properly.  This could include (but is not limited to) testing electrical outlets, turning on water faucets, checking the water pressure, opening windows, testing the HVAC unit, and making sure the appliances are in working condition.
  4. Potentially check the attic – The appraiser may be required to inspect the attic for specific lending transactions. It is important that the homeowner ensures access is available.
  5. Ask for additional details – The appraiser may also have specific questions for the homeowner or agent that could aid in the appraisal process. It can be beneficial to have details prepared regarding items such as recent renovations and/or any recent or needed repairs.

A few other helpful tips that ensure the process goes smoothly:

  1. Properly restrain pets – Appraisers get to meet all types of furry family members every day! Some typically friendly pets may not always welcome the appraiser in their territory.  It’s recommended that all pets are appropriately handled during the appointment.
  2. Unlock sheds, outdoor buildings, etc. – The appraiser must look inside all permanent structures on the property. Everyone remembers to give the appraiser access to the house, but please don’t forget about the other buildings.
  3. Don’t worry about the house being spotless – The appraiser has observed homes of many varying conditions, and appraisers can professionally look past everyday clutter. Most importantly, the appraiser needs easy access to each room and with unobstructed views.  Please keep in mind the photographs of the house will appear in the appraisal report.

If you have specific requests for the appraiser while visiting your home, please let us know!  The appraiser appreciates the invitation into your home, and they wants to make the homeowners comfortable.

Please give our office a call if you have any specific questions about the site visit.

Sales vs Comps: What’s the difference?

Simply stated, a sale is a property that has sold.  A comparable, commonly referred to as a “comp”, is a recent sale that a reasonable buyer would consider as a good substitute for the subject property.  Not all sales can be considered comps!  A house that sold down the street doesn’t automatically get designated as a comp.  That house could be a 3,500 square foot home on 2 acres with a pool, and it just doesn’t serve as a comparable substitute for the buyer’s 1,250 square foot house.  (Also, very important to remember when using price per square foot as a guide.)

The comp selection process involves identifying properties that most closely align with the subject property.  There is a small bit of discretion used, but a good comp should mark off the following four items:

  1. Location – A comparable will IDEALLY be located as close to the subject property as possible. For complex properties, however, comparables can be miles away from the subject property.
  2. Recency – Timing of the sale is important.  It is preferred to use very recent sales. This is especially important in a changing market environment.  There are situations where the best comparable sold is further in the past.  Time adjustments, if supported, can be used if necessary for the older sales.
  3. Quality/Condition/Features – Comps are typically very similar in overall quality and condition as the subject property. The quality of finishes for each home is evaluated and aligned as closely as possible.  If the subject property has high end finishes, comparables should be selected with similar high-end attributes.  Likewise, a home renovated from the floors to the ceilings would not serve as a good comparable for a home with only new interior paint.
  4. Living Square Footage – All else equal, the best comparables will have a very similar living area as the subject. Accurate measurements of the subject property are very important so that the best sales can be selected as comparables.  This accuracy is especially important when pricing a house using sales data.

Of course, it is easier to identify good comps for some properties than it is for others.  The number of good comparables can be limited for complex properties.  In these situations, it is often necessary for the appraiser to make adjustments for the varying property features.

The Appraisal Process – 3 Steps

Each appraisal is unique, but the overall general process tends to follow three general steps.  Ultimately, the final opinion of value is what many people want to know, but the process to reach that final value is detailed and thorough.  Here’s a brief overview of those three steps:

  1. Site Visit The site visit occurs when the appraiser visits the property. It is also commonly referred to as an appraisal inspection.  Once we receive a request for an appraisal, our office will reach out to the homeowner or real estate agent to schedule a day and time for the appointment.  The appraiser will perform a variety of tasks during the appointment.  Some of the tasks will include measuring the exterior, making visual observations of the exterior and interior, and taking photographs of all the interior rooms.  Appointments typically last 30-45 minutes but can be longer for larger and/or more complex properties.

 

  1. Offsite Research and Report Writing The offsite research is typically the most time intensive portion of the appraisal process. The amount and level of research varies by property, but the appraiser spends several hours at the computer working on each property.  The subject property is closely examined, the market is analyzed, and recent sales are studied.  The data is collected and summarized in an appraisal report format.

 

  1. Arriving at a Value Conclusion The appraiser arrives at the final value conclusion after all research and analysis has been completed.  The opinion of value is often referred to as the appraised value.  This value can be expressed as a single value or a range of values.  It is documented within the final appraisal report.

 

To understand more about the appraisal process or how we may be able to assist you with your valuation needs, please reach out to us at 337-714-8378 or AcadianaAppraisals@gmail.com.  We’re looking forward to hearing from you!

Lafayette Parish Market Update

April 12, 2021

Summary:

  • Market continues to remain strong.
  • Sale prices and sale volumes are continuing to increase.
  • Days on the market are showing significant declines.
  • 2021 has started strong.

As most of you probably already know, the Lafayette Parish residential real estate market continues to remain strong.  Homes are moving quick, and sales prices are continuing to creep up.  2020 proved to be a strong year for this market despite the global pandemic, but the data trends for 2021 are setting the stage for what may look like yet another stellar year.

Data gathered from the Realtors Association of Acadiana’s database is summarized in the charts and graphs below.  For purposes of this analysis, detached single-family housing data in Lafayette Parish through March 31, 2021 is presented.  The commentary is focused on the last 12 months while highlighting the most recent quarter and month.

The metrics for the most recent 12 months are continuing to show favorable changes.  Sale prices are steadily increasing.  The number of closed sales increased by 640, or almost 20%, as compared to April 2019 through March 2020.  The data strongly supports that houses are moving quickly with the average days on the market declining from around 3 ½ months down to about 2 ½ months.  There was also a slight uptick in the average square footage. 

The Monthly Price Metrics chart provides a good visual of the sales price statistics over time.  It is clear the last 12 months have been on an upward trajectory.  The increases can be attributed to a couple of factors.  First, the limited inventory within Lafayette Parish is creating a low supply and high demand dynamic that drives up prices.  Currently, there is approximately a month and a half of inventory within the market as compared to three to six months during 2016 through early 2020.  Second, increases in construction costs have impacted values.  Over the last nine months, costs have increased dramatically and have driven up the cost to build a new house.  The differential between existing versus new home prices has widened, and as a result, the demand within the resale market has increased.

Looking more closely at 2021, the number of sales in the first quarter are 10% higher than January through March 2020.  Even going back to 2017, the graphic highlights how well the start of 2021 was in comparison to recent years.

LAFAYETTE MARKET UPDATE

The Lafayette market has been very strong over the past 12 months. Even with a global pandemic, the housing market is strong. I have attached a few charts and graphs for my most recent Lafayette market update. They will show how the market has been performing over the past year and beyond. Keep in mind that the data only includes detached single-family housing. If you have any questions, please do not hesitate to contact me.

All metrics are showing a favorable change. The average sales price is changing at a higher rate than the median sales price. This is most likely due to more higher end home sales in the area over the past 12 months.
There was a 20% increase in the number of sales from 2019 to 2020! This is with a state wide stay at home order for most of April 2020.
There was a 28% increase in sales volume from 2019 to 2020!
The Lafayette market had one of the strongest years ever. December had the most sales last year for Lafayette Parish, IMPRESSIVE!!!
This was easily the best December that we have had in recent years. We have almost double the sales volume from Decmeber 2019!

I hope that this Lafayette Market Update has provided you some good information. If you have any questions, please feel free to reach out to me. If you would like to share these charts and graphs, I ask that you disclose where they came from. You can check out my business facebook page here! If you are in need of an appraisal, you can click here for a free quote. Thanks for reading and I hope that 2021 is stronger than 2020.

A Sample of some of my new charts and graphs for the Lafayette Real Estate Market!

(NERD ALERT) I have been working with new software to develop more dynamic and interactive charts. You can click on data points within the chart to see the stats at that time or for a particular location. I have included a couple of preliminary charts. Feel free to test them out and let me know what you think!

Lafayette Parish Real Estate Trends

New listings have started declining over the past several weeks.
New pending properties have been stable, with the exception of two weeks ago.
We have just seen the highest number of closed sales in one week since I have started tracking data on a weekly basis.
The weekly median sales prices have remained stable.
Year over year metrics continues to show favorable results.
Month over month metrics (August 2019 vs 2020) is showing favorable results.
Year to date metrics are showing favorable results.
The number of closed sales has increased by 11% from 2019.
Sales volume for 2020 is much higher than prior years.
The number of sold properties has increased by 17% in August 2020 compared to August 2019.
Sales volume remains high in August 2020.

St. Martin Parish Market Update

All of the metrics in the year over year data are moving in a favorable direction.
Year to date data is indicating more of an unfavorable change than the year over year data.
Although difficult to see, the red trend line is moving in a favorable direction.
The red trend line for the median sales price is moving in a favorable direction.
Year to date is showing a 7.6% decrease in the number of sales for St. Martin Parish.
Year to date (Ending on June 30th) sales volume is down for St. Martin Parish
The month of June had a 30% increase in the number of sales for 2020 compared to 2019
The month of June shows a significant increase from the month of May in 2020.
I hope that this was helpful. Let me know what you think.

Thank you for checking out my St. Martin Parish Market Update. If you have any questions please do not hesitate to contact me.

If you are interested in how the Lafayette Parish or Iberia Parish market is doing, check out my previous market updates.

If you would like a free quote for an appraisal on your property, click here!

You can check out my Facebook page by clicking here!

Iberia Parish Market Analysis

Year over year data indicates that the values have declined approximately 3.0% for Iberia Parish
Year to date shows most of the metrics are changing in a favorable direction.
Year to date (Ending June 30th) the total number sales have declined in Iberia Parish
Year to Date (Ending June 30th) the total sales volue
The number of sales in Iberia Parish are down slightly since June 2019
Sales Volume for Iberia Parish is down from June 2019.

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If you would like a free quote on an appraisal, you can click here!

Real Estate Trends

The Lafayette Parish Housing Market

Summary:

It would seem likely that a global pandemic and a decline in the oil and gas industry would cause our real estate market to slow down dramatically.  On the contrary, interest rates are now so low that they are offsetting the hesitation that one would assume market participants might have. Real estate trends continue to experience favorable changes.

For the month of May, there was a big dip in the number of closed sales as compared to what occurred in May 2019.  The market seemed to expect the number of closed sales to be low since we had a stay at home order enforced throughout the month of April.  But as predicted based on the number of pending listings in April, there has been a huge increase in the number of sold properties in June 2020.  In fact, there was a 41% increase in the number of sales from May to June alone.  Additionally, there was a 31% year over year increase in the number of closed sales for the month of June.

In the market area, favorable trends are being observed in both the median and average sales prices for year-over-year data and year-to-date data.  However, the change is not enough to indicate values are increasing; therefore, our market is still considered stable.

The number of new listings and pending sales has passed the initial surge from the stay at home order ending.  While there is a little more fluctuation with the number of new listings on a monthly basis, the trend line over the past six weeks is more stable than it was the previous month or two before that.  Also, pending listings have decreased some from their peak six weeks ago, but the number of new pendings on a weekly basis is still higher than pre-pandemic numbers. 

I hope this information is helpful for you in the market area.  Let me know what you think!

The peak in new pending listings occurred six weeks ago
While the median and average sales prices are considered stable, the change is still favorable
2020 has more sales (year to date) than the prior three years
The sales volume for 2020 is higher than the prior three years
June 2020 saw a huge increase in the number of sales from May 2020

Real estate trends continue to move in a favorable direction. The question is, how long will this last? With business continuing to operate below full capacity, will there continue to be buyers in the market area? So far the low-interest rates have been enough to keep the real estate market strong. We will continue to watch the real estate trends closely going forward and let you know of any changes we see.

I hope that you found some value in this presentation. Let me know what you think!

Lafayette Parish Market Update!

Takeaways:

•The market is rebounding after the initial slow down

•The number of new pending sales is similar to pre-pandemic numbers

•New closed sales are still down, but this should change in the weeks to come

•The median sales price is improving year over year

•Year to date, we have more sales than this time last year

LAFAYETTE PARISH MARKET ANALYSIS UPDATE

LAFAYETTE PARISH MARKET ANALYSIS UPDATE

February 6, 2020:

An updated look at the Lafayette Parish Market indicates the market is still stable; however, slight changes are being observed.

Was January a busy month for you?  Based on the number of properties sold, it most likely was for Realtors and Lenders in the Lafayette Parish Market.  Sales in Lafayette Parish for the month of January are up BIG TIME from last year.  In fact, there were more sales in January 2020 than there have been in the month of January for the last 10 years. 

Last month, I took an in-depth look at the overall market trends for Lafayette Parish.  The overall market was considered stable; however, there were some favorable statistics.  This month continues the favorable trend.

  • The number of sales in January 2020 increased by 73% in comparison to January 2019.
  • The sales volume was 91% higher this January as compared to January 2019.
  • Year over year trends continues to see favorable changes.

If you’re interested in some of the details and data, take a look below.

Monthly Data for January:

The chart below shows how the market was performing for January 2019 vs. January 2020.  In this chart, the median sales price, average sales price, and average price per square foot all have favorable statistics.  The median and average sold price is actually indicating that sales prices increased by a significant amount this January as compared to last January.  Average prices can be affected by outliers such as a couple of $1 million+ properties, so the median sales price is often a better indicator. 

Monthly Data (January)

Year to Date Sales Volume (Jan 1 – Feb 6):

In the chart below, you can see 2020 has a much higher sales volume than in previous years.  In fact, sales volume is up 91% from last year.  For both 2019 and 2018, there was a decrease in sales volume from the previous year.  Interest rates could have something to do with this.  For November 2018, the 30-year interest rate was (4.94%) the highest that they had been since February 2011 (5.05%). Since then, there has been a steady decline in interest rates. In January 2020, interest rates were mostly between 3.50% and 3.75%.  This is making homes more affordable for consumers. 

Sales Volume (year to date)

The chart below shows the number of sales in the area. Again, in January 2020, there were more sales than in the previous 10 years for the month of January.  There was a 73% increase in the number of sales for 2020 as compared to 2019.  Again, this is a favorable indicator for the market area.

Number of Sales (year to date)

Trending 12 Months Sales Volume (Ending on 1/31/2020):

In last month’s market update, the trending 12 months statistics were all favorable.  The trend continues this month.  In fact, the median sales price, average sales price, and the average price per square foot are all up from last month’s analysis.  Although the analysis is indicating values are stable, the statistics continue to move in a favorable direction.  This is good for sellers who are trying to sell their homes because it is taking less time to sell their homes and the sales prices are increasing.

Rolling 12 month Trend

Conclusion:

So far it has been a strong start in the real estate market for 2020.  The trend is expected to continue in the near future.  At the end of January 2020, there were 307 pending properties in Lafayette Parish.  This is a 16.7% increase from January 2019 that had 263 pending properties.  With interest rates at a three year low, it is reasonable to expect this trend to continue for the first quarter of 2020.

If you have any appraisal related questions, please do not hesitate to contact me. 337-254-2215 or Lduple4@gmail.com

I hope everyone enjoys the Mardi Gras festivities over the next few weeks.  Until next month, laissez les bons temps rouler!!!

Data Source:  MLS, detached single-family homes sold in Lafayette Parish