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Silver Lining Of New Flood Insurance Rates for Baton Rouge Home Sellers?

By
Real Estate Appraiser with Accurate Valuations Group, LLC LA St Certified 851

What's The Silver Lining Of New Flood Insurance Rates for Baton Rouge Home Sellers?

New Flood Insurance Rates to HURT Greater Baton Rouge Home Sales....adds $280/month to a $140,000 home purchase.  It could be simple Supply and Demand IF Congress doesn’t act to fix this mess!    See: 

New Flood Insurance Rates to HURT Greater Baton Rouge Home Sales

 

 

Greater Baton Rouge Homes In Flood Zones will now have steep premiums to pay! Mortgage Loan Expert, Erica Whiddon, below says on a $140,000 home, it's $3,358/year or an extra $280/month.

"REALTORS®, get ready to deal with some major headaches on selling houses that are in a flood zone with these new changes. I got a flood quote today on a $140,000 purchase that was 6 inches below the base elevation and the premium was $3,358! I had to be the bad guy and tell my client that she could buy $50,000 more house and keep the same note if she picked one that didn't require flood. Mark my words, this is going to really hurt some sales and if you do any amount of business, get ready for it. And if you want someone to be proactive and help you figure it out upfront, choose to work with me as your Mortgage Partner. I am growing my business and looking for new relationships, so private message me now if you are interested in meeting up. I'm looking for new opportunities to close more deals!"

 

 

 

 

Will home purchases in subdivisions like Old Jefferson Subdivision 70817, of homes located in the flood zone, come to a halt?

 

 

 

 

So, what's the silver lining with these new rates though?


Supply And Demand.
 
The silver lining here is that overnight, homes not in a flood zone become more in demand and more valuable to buyers.  After all, Erica said above that her Baton Rouge Home Buyer / Mortgage Loan Applicant could buy $50,000 more home IF IT WERE NOT LOCATED IN A FLOOD ZONE and it didn't add an extra $280/month in flood insurance premiums.  

An Analogy of Supply And Demand.
This analogy isn't exactly the same but what happened after Hurricane Katrina for New Orleans residents who lost their homes?  Overnight Greater Baton Rouge Home Values increased because of increased demand.   As supply was short, home prices remained elevated.  When demand subsided, so did home prices and then the Baton Rouge Home Price correction took place. 

How Soon Will We See Home Values Increasing Because Of These New Rates?  

I don't know but I'll be on the lookout for these increases. 

 

 

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