Will my pipes freeze?
Make sure you read this second tip!
It’s happening again- Louisiana is set to experience a whole year’s worth of seasons in less than ten days, and temps are going from the low teens to the upper 70’s between now and New Year’s Day. Normally this isn’t much of an issue for us, yet for some, it poses a special risk to people, property, and pets. So how should you prepare?
Whether you are a homeowner, renter, or landlord, there are several tips you can take to prepare for the freezing temps. Even if you have a new, energy-efficient home, you’ll want to take a minute and make sure you’re prepared with these pointers.
First of all, remember that if it’s too cold (or hot!) for you to be outside for long periods of time, the same rule applies to your pets and other outside animals that depend on your care.
On to the pointers for your palace!
Indoors:
Moderation is key! The temperature inside your home helps moderated the temp of the pipes inside your walls, especially if you live in an older home or have poor insulation. Keeping the inside temperature at a minimum of 65 degrees F can help prevent pipes from freezing, and bursting.
Knowing the location of your main water shutoff valve is especially critical- know where it is and how to operate it! It’s also good to make sure that the valve still functions, as some will seize up over the years. If you have a pipe burst, you should immediately shut off the water to minimize the damage to your property and belongings.
Drip the faucets- speaking of the water shut-off valve, find a couple of faucets furthest from that and drip both the hot and cold side as long as temps are below freezing, which could also be after sunrise. We know that sounds simple enough, yet it happens every year that a tenant calls us with a burst pipe because they shut the water off when they left for work. The water moving through the pipes will help prevent a freeze.
Outdoors:
Keep your pool pump running so the water circulates- this will help prevent pipes from bursting due to freezing water inside.
Check for and remove any dead tree branches- the wind and ice stress them further, which can cause them to fall and damage your property, or cause injury to people on the ground.
If you do have a pipe burst, be sure to shut the water off to the property ASAP. This will help minimize damage due to water and mold. Also, take plenty of pictures, contact your insurance company, and familiarize yourself with the claims process.
Why Are Termites Swarming Outside?
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Anyone who’s dealt with termites before knows that these are not your average bug. Termites can cause major damage to the foundation of your home. They’ll make short work of those hardwood floors you so adore. If left to their own devices, they’ll crawl through pretty much every wood surface they can find.
Fortunately, this won’t happen to you!
Why? Because you’ll catch these hellions in their tracks well before they can do any lasting damage to those gorgeous wooden ceiling beams. And fortunately, a tidy home is actually less than desirable if you’re a termite; so as long as you take some basic precautions and act fast when you see a swarm, you’ll be in good shape.
We’re going to tell you what to keep an eye out for during peak termite season (which, for those of us in Louisiana, is late spring - yup, right now.) We interviewed Armando Ruiz, a literal termite professional and owner of Blue Star Pest Control in Slidell, to find out what the warning signs are and how to keep termites outside, where they belong.
I found a pile of wings on the floor, but no termites. What happened??
When subterranean termites swarm out of their nest , the swarmer’s (alates) leave the nest with wings and typically fly towards light as they are attracted to lighting. Shortly thereafter (within 1 hour) they shed their wings and start looking for a nesting site to start a new colony. So seeing a pile of wings would indicate that this was an area where the termites initially landed and lost their wings and then went off looking for shelter. This area is probably near a light source.
Termites. Photo used with permission.
Does this mean termites are now chomping at the bit to make a colony in my house?
NO, but they are looking for the ideal conditions to start a new colony. They need three basic things to start a new colony:
1) Moisture
2) Shelter
3) Food
The most common area where subterranean termites will start a nest will be in the ground and not in your home, because the ground contains all three elements needed for survival. Although, a poorly maintained home could offer those three elements and they could start a nest in the home, which is called an aerial infestation.
Related: What does flood insurance cover, anyway?
What are the best ways to keep termite swarmers from coming inside?
Swarming termites will always be part of our lives, especially here in the south. Here are a few tips to help reduce the number of termites getting into the house during Formosan termite swarming season, which usually occurs between late April to mid-June.
Turn your exterior lights and any lights by windows off between the hours of 7:15pm to about 10:30pm.
Caulk around all windows, doors and ceiling joints.
Apply a residual insecticide on the exterior of your home around windows, doors and any exterior light fixtures.
How long do termite swarmers stick around?
Swarming termites will fly anywhere from 30 to 45 minutes before they land, lose their wings and start looking for a nesting site. After they swarm out from their nest, if left undisturbed they will live anywhere from 5 to 8 hours after swarming. Occasionally you will find a few of them still alive the next morning. Remember that swarming termites cause NO DAMAGE, it’s the ones you don’t’ see that cause the damage.
If I see termite swarmers inside my home, do I need to have it treated right away? Or will they go away on their own?
Remember that the swarming termites cause no damage, so seeing some inside your home is not always a sign that you have an infestation. It is common to find anywhere from 20 to 100 termites crawling around inside your home after a swarm. The quickest way to remove them from the home would be to vacuum them up. We do not recommend spraying them with an insecticide inside your home, as they will die on their own within a few hours. No need to put chemicals inside of your home that are not needed.
If I have a termite infestation, would it be visually obvious to me?
Yes, to the trained eye it will be obvious if you have a subterranean termite infestation. For homeowners it may not be as obvious, but here are some of the things you may see that would indicate you have a termite infestation inside your home.
Flying termites inside of the home by the thousands.
Mud spot on the walls
Cracking paint causing ripples on the wall
Wood floors that are buckling
Mud tunnels on the exterior of your foundation leading toward the house
Dirt tunnel, indicative of termite activity. Photo Courtesy of Armando Ruiz.
We didn’t mean to scare you, but termites are a real thing in this part of Louisiana. Any homeowner should know what to watch for this time of year, and how to get rid of those pesky termites so you can focus on the home renovations you’ve been saving on Pinterest - not on emergency repairs.
And because termites can leverage some serious long-term damage, we suggest the owner have a company like Blue Star carefully inspect every property. That way, a buyer-to-be can be confident that when they step into one of our open houses, they’ll be entering a termite-free zone.
Have a termite horror story you’ve been dying to share? Tweet us @Slidellrealty. Or better yet, share your success tactics so we know how you managed to get rid of the little devils.
Armando Ruiz, SR. is President of Blue Star Pest Control, serving Louisiana since 1984. They specialize in pest, termite, mosquito and rodent control and can be reached at (985) 641-3797.
David McLaughlin (yours, truly) is a long-time Slidell resident, and REALTOR® with over 15 years of experience helping others buy, sell, and invest in real estate. He can be reached via email at david@homesnearnola.com or by dialing 985-707-5270.
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Here’s Why Agreeable Gray Is Literally The Best Paint Color
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Okay, we’ll level with you. Obviously there’s no “best” paint color out there. Humans have different personalities, preferences, and aesthetics. Especially in New Orleans, every home has its own story, color palette, and closet full of trampled-on Mardi Gras beads from years past.
We’d never be so bold as to say there’s a single best color, one that’s ideal for selling your home, and is practically guaranteed to get you your asking price.
But if we were, Agreeable Gray by Sherwin-Williams would be it.
We recommend this color for client after client. It’s neutral, it’s versatile, it looks good in every lighting. Whether you’re going for a relaxed, not-trying-too-hard vibe for your living room or a sophisticated bedroom palette that says “I read Tolstoy and do the Times crossword puzzle on Saturday nights,” Agreeable Gray just always seems to hit the mark.
Simply put, it’ll never let you down.
We’ve been recommending this stand-by for so many years now, we decided it was time to get to the heart of the mystery: what makes Agreeable Gray so darn perfect, anyway? Are there any other colors that could challenge its reign? Most importantly, what do I do with a fist full of paint chips from Lowes if, clearly, all I need is this one shade in all its affable glory?
We wrote to Sherwin-Williams and demanded answers. After some hard-hitting interrogation, they caved: the allure of Agreeable Gray is a secret no more. Here’s the truth behind why we all fall for Agreeable Gray, why it’s so enticing when paired with Pure White SW 7005 trim, and even a nod to the controversial newcomer on the scene: greige.
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What makes Agreeable Gray such a popular color? What's all the craze about?
Agreeable Gray SW 7029 is our most popular paint color. I think it’s so popular because it provides a blank slate for homeowners to put their personal touches on a space with artwork and décor. Our homes have become so versatile; for example, a living room may also have to serve as a home office and kids’ playroom. Agreeable Gray allows for a space to serve a variety of purposes.
What's the color palette for Agreeable Gray?
This color is versatile – it works so well in a variety of living spaces and it pairs with many different types of finishes, flooring and textures. It goes well with the beiges and warm hues people are starting to embrace in their homes. I also love how crisp this color looks with Pure White SW 7005 trim, marble countertops and light tile flooring in a bathroom. Add color through fresh greenery and the combination will make the bathroom feel like a luxurious home spa!
I grabbed a handful of paint chips from the store. What's the next step to making sure I make the right choice for my room?
Paint chips are great for narrowing down your color selection, but once you’ve selected two or three of your favorite hues, paint a large swatch of each color in several places within the space. Live with the swatches for a few days so you can really observe how the colors shift as the natural light changes and how they look under artificial lighting. Once you’ve spent time with each color, then make your final choice. This can save you a lot of frustration and money in the long run.
Is Agreeable Gray still trending pretty hard right now? Which colors/palettes are looking like the next big trend?
“Agreeable Gray is still one of our most popular paint colors,” said Sue Wadden, director of color marketing at Sherwin-Williams. “Gray will always be an important neutral and a popular color for DIYers and designers alike, just like white has always been. However, over the past few years we’ve noticed people craving color in their homes, which may be a direct response to how pervasive Scandinavian minimalism was in the previous decade. This doesn’t mean we’re eschewing gray, but more so that we’re interested in different versions of it. Notably, warmer grays and beiges (or ‘greiges’) are increasing in popularity. The Sanctuary palette from our 2021 Colormix Forecast showcases this shift from cooler, modern tones to warmer hues inspired by nature.”
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Are you completely smitten by Agreeable Gray? Outraged by the swift takeover of greige? Weigh in on this hot-button topic by tweeting @Slidellrealty. Or share your own much-loved paint color on Insta and tag @homesnearnola.
David McLaughlin (yours, truly) is a long-time Slidell resident, and REALTOR® with over 15 years of experience helping others buy, sell, and invest in real estate. He can be reached via email at david@homesnearnola.com or by dialing 985-707-5270.
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What Does Flood Insurance Cover?
We’ve been flooded with insurance questions since our last blog post where we addressed knowing if a fence belongs to you, or your neighbor. So, naturally, we turned to local insurance broker Randee Heer at All Saints Insurance. She and her team were nice enough to answer a bunch of questions compiled from viewers like you!
Thanks for taking some time for this, I know you guys are swamped. Let’s say there's a hurricane coming and there's that one spaghetti model that's different from all the others, but it has it coming right for my house. Can I still get insurance, or am I sauced?
There's always that 1 stray string, right? As a rule, the spaghetti models aren't the final determination. Each carrier has their own rules per se but the overall rule of thumb is that policy binding (issuing new policies) is restricted once a "Hurricane or Tropical Storm Watch or Warning” has been issued by the National Weather Bureau or when a Hurricane or Tropical Storm enters the Gulf of Mexico, or when a Hurricane or Tropical Storm is: • West of 72° West Longitude and between 15⁰ and 32⁰ N latitude. Binding restrictions are usually lifted 48-72 hours after the storm has passed. So if you wait till the last minute... sauced is definitely the word!
Is every house in a flood zone?
YES, YES, YES! Every house is in a flood zone. It just depends on whether it's a high-risk zone (special flood hazard area or SFHA) or a preferred zone.
Okay so, knowing that, how much does flood insurance cost if I'm not in a high-risk flood zone?
In a preferred zone premiums start at $209 and go up to $572 for a primary NFIP policy. Rates can also vary depending on if the property has had multiple flood losses.
Should I get it when I'm not in a flood zone?
Does Bourbon street sell booze? YES! When in a preferred zone it's a relatively cheap investment to protect your largest asset (for most people). Don't let complacency or the thoughts "We never flood" or "We didn't flood for Katrina" deter you from protecting your home, business, and rental properties! Baton Rouge flooded a few years back, The Grand Ol' Opry in Nashville flooded, and how about those Maryland floods in recent years? Anywhere it rains or there is some type of body of water no matter how small it CAN FLOOD!
Can I put my premium in escrow if I'm not in a flood zone?
Well... you are in a flood zone just a preferred one (David: Sorryyy, forgot) so unfortunately most lenders will not allow you to escrow the flood if in a preferred zone (zones B, C, or X).
If my home insurance has a high deductible will flood insurance cover it?
Sadly, no. They're two separate policies and they cover different things. Homeowner’s insurance will cover things like fire, theft, lightning, wind/hail, hurricanes. Flood insurance covers for rising water due to an “act of God.”
Can I use home and flood insurance at the same time?
Absolutely! If Hurricane David (I see what you did there…) rips off your roof and pushes Lake Pontchartrain (may as well call it Lake David) into your neighborhood and floods your house then both insurances will come into play.
What happens if a storm surge comes and rips down my fence. What covers that?
See also: who’s responsible to fix a fence if the “nice side” faces your property
This is a classic example of the "What Comes First, the Chicken or the Egg?" scenario. It depends on what caused the storm surge. Was it rising water or did the wind from a storm cause the storm surge? Was the fence already "down for the count" due to strong winds before the storm surge arrived at the party without an invite? If the wind pushed the water causing a storm surge, one could argue that it would be covered under the Wind/Hail portion of a Homeowners policy. However, it would be a matter of proving the cause of the storm surge. Ultimately, it would be up to an adjuster to decide the cause of the fence loss and what policy would cover the loss, if any.
If the damage to the fence was solely caused by rising water, then more than likely, this would fall under a flood policy. However, most NFIP based flood policies do not cover Other Structures such as fences. If you have any detached structures such as a pool house or a mother-in-law cottage, NFIP requires a separate policy for those detached buildings. In order to have coverage for "Other Structures" included in your main primary flood policy, you would need a flood policy from a Private Flood carrier (non-NFIP flood) that offers coverage for Other Structures.
My driveway drain overflowed and ruined the stuff I had in the garage. Are those contents covered?
It would depend on the cause of the overflow. If it's backup of a sewer/drain you'd have to have that endorsement on your homeowner's policy for coverage to apply. If there's flooding (rising water) caused by an “act of God” then flood insurance would come into play.
My pipes froze and burst, flooding my bathroom, the one time I didn't want things all wet in there. Does flooding from freezing get covered by flood or homeowners or neither?
If covered, that would be under your home insurance. Subject to your policy conditions but generally for coverage to apply you must’ve done your due diligence to make sure that you did all of the preventative things to keep your pipes from freezing. When the weather people tell you 27 times to wrap your pipes let the water run. LISTEN! and take pictures of them wrapped. I always tell my clients and my team, it's not what you know, it's what you can prove. Pictures are worth 1,000 words!
Okay, I’m sold. What's my return on investment?
I would say peace of mind is priceless. In the event of a flooding situation that results in a claim, not having to wait on government handouts or FEMA to be able to put your home back together is worth the premium. Again, pick your vice - shoes, eating out, drinking, traveling, etc. I'd be willing to bet you the costs of those vices are more and temporary. Protecting your home and your family from potential financial ruin... it's a no-brainer for me.
How severe does my loss have to be in order to be covered? Is it covered fully? If my home insurance has a high deductible will flood insurance cover it?
So the size of the loss isn't necessarily the biggest factor- it's if it's a covered loss. Technically you can make a claim for a covered loss for $1 if you wanted to as long as it's an actual direct physical loss. Now, the insurance company isn't going to pay you out $1 as this is where your deductible comes into play. The higher the deductible, the cheaper your policy premium is BUT don't get so blindsided by “as cheap as possible” that you don't look at the big picture of what your finances would look like in the event of a loss. For instance, I always tell my clients for the All Other Perils (fire, theft, lightning, etc) deductible most likely you're still employed if (God forbid) your house burns down. So take a $2500 deductible or more if you can afford to cover the damages under that amount. You don't want to make claims more than absolutely necessary as they follow you around for 3-6 years and can affect your rates and company options if your current company rates increase.
On the other hand, if we have another Katrina - most people are out of work, and taking a higher deductible (like 5%, $10,000, etc.) would likely cause financial hardship for those people when they take that big chunk of money out of their hurricane claim check. During a fire claim, the masses don’t typically lose employment, so the detriment of the higher deductible would not be as great. We recommend $2,500 for All other Perils and 2% or 3% for your Named Storm or Hurricane deductible if you have that option in your area.
Does flood insurance cover more than one storm in a year? Are there annual limits or per-storm limits?
Yes, flood insurance can cover multiple floods in a policy period. The limits would be the policy limits you chose at the time you purchased the policy.
Is my property covered fully?
If it's a covered loss then it should cover up to the limits of your policy that you purchased, after your deductible has been met and subject to the coinsurance clause of your policy (actual cash value or replacement costs). So if you have a $50,000 loss with a replacement costs policy and your deductible is $1,000, then you're responsible for covering the first $1,000 in repairs and the insurance company will write you a check once your claim is processed for $49,000. If you have actual cash value (most of you will probably remember that term from Hurricane Katrina when you couldn't replace your 10-year-old roof or 5-year-old fence with the money you got from insurance after depreciation!), they will depreciate your covered items and pay out the depreciated value. Replacement costs average about $3-500 more per year on your policy but it's peace of mind that you actually CAN buy :-)
I’m thoroughly convinced I need coverage. Where can I sign up for flood insurance?
You can reach out to my team at All Saints Insurance and we can get the ball rolling for you. You can also visit our site and quote/buy flood insurance yourself!
Randee Heer owns All Saints Insurance, an independent, Louisiana-based insurance agency. All Saints offers products from many different companies which allows us them find the right mix of companies, coverage, and rates for their clients. They can be reached at (985) 201-8700 or https://www.allsaintsinsurance.com.
David McLaughlin (yours, truly) is a long-time Slidell resident, and REALTOR® with over 15 years of experience helping others buy, sell, and invest in real estate. He can be reached via email at david@homesnearnola.com or by dialing 985-707-5270.
Is The Nice Side Of The Fence Mine?
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We’ve been on the fence about writing this article for a while now. We were trying to choose between several topics for this post and when it was finally time to pick it, we chose fences. Here’s why:
I have good neighbors, but the fences? Questionable.
I was in my back garden the other day and noticed that the fence was leaning away from my house. Not a lot, but enough to where I knew it was time to start thinking about making a call. “But wait!” I thought. “The ugly side is facing my house so it must not b… No. I know better.” And I do.
I called up Patriot Title. LLC, my favorite title company. They deal with these sort of property boundary issues on the reg, and I figured attorneys Raymond Brinson and Brian Glorioso would have some answers. (They did.)
Related: Will flood insurance cover a storm surge taking out my fence?
**First and foremost, it is to be noted that none of the comments herein should be regarded as legal advice as each situation is unique. This is for general information only and if you have a fence dispute with a neighbor, seek legal counsel.**
Me: So guys, does the myth stand true that if the "nice side" of the fence (the one without the horizontal stringers) is facing my yard, it’s my fence?
No. A fence on a boundary is presumed to be common unless there is proof to the contrary. LSA-C.C. Art. 685. If you are not sure if the fence is on the boundary (property line) or not then you may need a survey of the fence and adjoining properties unless you can come to an agreement with your neighbor. (Myth: BUSTED)
Have you ever done any fencing, like the sword kind?
Ray: I have always wanted to try. Not because I am interested in fencing but I have always thought I would look great in one of those outfits.
Me: If I'm not sure if a fence is mine, and I don't want to pay for a survey, what's the best way to go about seeing who's going to pay for repairing it or getting the neighbor to split it?
I do not know there is a “best way”. If the fence is co-owned because it is on the property line... as opposed to clearly being on one side or the other, then the person with the issue has the burden of proving that fact. There is nothing in the law that says a neighbor has to reimburse you for half of the cost of the survey you obtained in order to prove who the fence belongs to. Remember, necessary repairs to a common wall, including partial rebuilding, are to be made at the expense of those who own it in proportion to their interests. LSA-C.C. Art. 678.
If I'm going to build a fence where there isn't already one, should I build it just a little over onto my property, like 6 inches or a foot? Or should I build it right on the line as indicated by a survey?
That question doesn't really have a legal answer but a personal preference one. If you put the fence on your property then it is clearly your fence. The land on the other side of that fence could become the property of your neighbor at some point in the future under a legal theory called acquisitive prescription. It takes 30 years for that to happen but that is a potential consequence to putting the fence inside your property line. If you put your fence on the property line then you are making it co-owned as a result.
If my fence needs to be replaced, do I have to go back with the same material? How do I find out the rules on what I could use?
That depends on where your house is located and what governs the use of your property. If your are in a deeded subdivision then the answer might be in your subdivision's restrictive covenants or through the decisions of their Architectural Control Committee. If not, it might be regulated by the City or the Parish through various ordinances. The best place to get that information would be through the permit department of the appropriate regulating agency.
If the fence is being replaced due to some act for which you are seeking reimbursement or compensation from a neighbor for then as a general rule the owner making the repairs can only recover cost to restore it to it's former condition.
Do you have a relevant or funny-ish story you can share about a fence dispute?
I gave a consult to a guy one time whose grandfather purposely planted a row of trees 6' into his neighbor's property in an effort to establish the property line. He told his son, "if I am not around thirty years from now and if you inherit this house from me, go see an attorney who will help you file a lawsuit to make that row of trees your new property line". The father passed the same advice onto his son. That was who I was consulting with.
The problem is that the law requires any efforts to "squat" on the property of your neighbor to be a continuous outward effort of possession. For example, you just can't cut the grass for thirty years because unless someone drives by and sees you doing that then they'll never know that possessing your neighbor's property was the intention related to that effort. The same held true of the trees.
We never filed a lawsuit for this client but it was clear based on the case law that the presence of trees alone was not enough to establish outward possession, regardless of who planted them or why they planted them. It's not funny but the fact that this plan was a family secret passed to two generations for over 40 years made the consult very anti-climatic.
Time to close the gate on this one. If you have any other tid-bits, I'd love to hear them.
Most fence issues involve a pool, a dog or a child or some combination making the fence more important to one neighbor than the other. Even if the fence is on the property line and clearly co-owned, it's difficult to substantiate the cost of litigation to force a neighbor into a reimbursement or to pay their portion of a shared maintenance obligation. And certainly, there will likely be a disagreement about what is "necessary maintenance" to mitigate the position of any neighbor who does not want to participate.
Most of my experiences involve clients who ultimately resign themselves to the fact that the cost of making the repair is less than the cost of hiring an attorney and trying to resolve the issue through litigation. Bad for my business but better for the client if they can accept that.
Looks like this post is in the right place. Just remember, to know for sure who owns a fence, you need a survey from a licensed surveyor to identify where the fence is.
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Patriot Title, LLC is an attorney-owned and operated, full-service title company. Their attorneys, through the law firm of Tonry, Brinson and Glorioso, can handle any title curative matters necessary to clear title and complete your closing. Additionally, their attorneys are always available to assist agents and clients with any legal issues or questions relating to their closing. They can be reached at 985-649-0433.
David McLaughlin is a long-time Slidell resident, and REALTOR® with over 15 years of experience helping others buy, sell, and invest in real estate. He can be reached via email at david@homesnearnola.com or by dialing 985-707-5270.
Amazon Expected To Immediately Start Building Slidell Fulfillment Center
What will happen to home values when Amazon moves in?
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According to the Slidell Independent, Amazon, the world’s largest retailer, has obtained a land clearing permit for property on the corner of Old Spanish Trail and Town Center Parkway.
The Fulfillment Center is expected to bring approximately 400 well-paying jobs, with pay starting between $15-20 an hour. Construction will start almost immediately, with completion estimated at the end of 2021, with operations beginning Q1 2022.
Could property values soar even higher?
Property values in Slidell are up 13.8% over January 2020. Driven mainly by record-low supply and record-high demand, prices aren’t expected to go down in the near future. The low rates have also forced many renters to make the jump into homeownership.
Amazon FC’s have a history of boosting residential property values and increasing commercial occupancy rates, something that is much needed in Slidell. There is also much talk of additional fast-food and other retailers moving in, due to the speculated increase in traffic from job created, and delivery trucks.
What’s left to sell?
As of the writing of this article, the number of homes for sale in Slidell is down 33% since January 2020, with approximately 260 single-family residential units available. The decrease in homes for sale has been driven by several factors: people not wanting strangers in their home during a pandemic, employment uncertainty, and in general, older generations are less likely to sell their homes. With the economic uncertainty brought on by COVID, it’s no wonder they aren’t moving. Hopefully the potential for an even greater increase in property values will help many get off the fence, and list.
If you’re interested in finding out the value of your home, contact us for a no-obligation Comparative Market Analysis. For more information on how the real estate market has performed in the last year, check out our recent blog post on the market conditions.
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About the author:
David McLaughlin is an 11-year resident of Slidell, and a 15-year veteran of the real estate industry. He moved his family here in 2009 and loves Slidell for it’s community and it’s people. Contact David
End of Year 2020 Market Snapshots
Homes Near NOLA
As we wrap up the most ridiculous year of most of our lives, Greater New Orleans home prices rise as supply continues its 10-year decline.
This year’s real estate market has ended exceptionally well. The global pandemic could have destroyed real estate. Instead, however, housing inventory continued its nearly 10-year long downward trend, fueled by a record-long expansion and low unemployment (pre-COVID-19), historically low interest rates, and a sizable new generation of buyers entering the market as older generations were choosing to hold onto their homes. A sharp drop in new homes coming online was also a key player.
Interest Rates Spur Home Sales
Already-low interest rates hit a 65-year low in 2020. The average interest rate for a 30-year mortgage hovered around 3.5% in January 2020, and near the end of the year, some well-set buyers were seeing rates as low as 1.5%. This increased buying power for those entering the market, by allowing buyers to borrow up to 24% (twenty-four!) percent more while keeping their house payment the same. Consumer confidence increased, and those that were on the fence about buying (both investors and owner-occupiers) were forced to make the jump. This housing slump combined with increased demand also means that many buyers who try to offer much (if any) under list price will miss out on homes. Low interest rates (see above) seem to be calming much of the anxiety buyers have about offering closer to list price, however.
Supply and Demand
This last chart shows what we all learned in our econ classes: Sales prices hit a historic high as supply tanked and demand went through the (thankfully proverbial) roof.
Is now a good time to sell?
Traditionally, we see home sales drop in the fourth quarter, and then start to increase at the beginning of Q1 again. Given how much the pandemic has changed, well, everything, I would expect a somewhat muted jump in supply, and demand will likely continue to increase, especially with the possibility of additional stimulus money going out to many Americans. So yes, this is your time!
Don’t become an accidental landlord… or should you?
Should I rent my home if it doesn’t sell?
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Should I rent my home? We get this question a LOT. Thinking about renting your house can be both exciting and daunting. Thinking about renting it after it sat on the market and didn’t sell is usually the latter. We’ll talk more about how you ended up here (and how to avoid renting) at the end of the article.
Believe it or not, there are benefits to becoming a landlord (even on accident). First, I’ve read many times that keeping your first house and renting it after you move is one of the best ways to build long-term wealth, and it gives you a potential asset to pass on. Too, after you have your first income-producing property, it’s often easier to acquire your second, thus building your portfolio.
What are the concerns with becoming a landlord and owning rental property?
There’s plenty of things to take into consideration when it comes to investing in real estate before you have your REALTOR® put a sign in the yard.
Check with your homeowners insurance agent. You’ll need to upgrade your policy to cover renters, which typically comes with a nominal price increase. This is a must. If there is an event requiring a claim, and you haven’t upgraded your policy, there is about a 100% chance your claim will not be paid.
Will you be able to afford to cover the mortgage payment with the current rental market?
Speaking of the rental market- can you charge enough to A. cover the mortgage B. set some money aside for repairs/upgrades/vacancy and C. make a profit (remember that B and C are not the same!)
Can you afford to pay the mortgage for 2-3 months if the property sits empty between tenants?
Do you have what it takes to be fair, firm and assertive? This is a tough business, and tenants can walk all over you and your generosity. This needs to be treated as a business. You’ll need to be able to stand up for yourself, and even evict a tenant if needed.
Speaking of #5, let’s take a moment and just be very frank: evicting someone means kicking them out of the place they called home. Can you handle that?
This is a biggie: Can you get approved for a new mortgage if you decide to keep your current home and rent it? You’ll need to speak with an experienced mortgage professional on this before you let the first potential renter come look.
10-20% of the rent is a typical recommendation of how much to set aside for repairs. If you have an older home, expect it to run on the higher end. A home warranty can also be a good investment to help keep some repairs within the budget. Income tax/capital gains tax also need to be paid, and that will vary depending on your personal situation. Talk to your tax professional for more on that.
So, how did you end up here?
Most people end up becoming landlords because either their home didn’t sell and they still want/need to move, or they bought a home to renovate and/or rent it. If you’re in the first group, I ask: did your agent talk to you about why your didn’t sell before the listing expired? This is pretty key and your agent should have this conversation with you before you start getting calls from other agents letting you know your home came off the market.
Granted, sometimes it’s not the agent’s fault, but it’s just been sitting there on the market. We have found that the most beneficial remedy here is a fresh, new approach to marketing, including our proven plan to get your home sold. We have a full-time marketing director on our team, and she’s one part of our approach to getting you from listed to sold in record time.
If you’d like more information on renting your home, figuring out why it didn’t sell, or investing in real estate, call us! 985.707.5270
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David McLaughlin is a 15-year veteran of the real estate industry in Louisiana, serving the Greater New Orleans area. Known for exceptional communication , analytics, and problem solving, David is proud to be able to find solutions to any challenge and is known for pulling some pretty big rabbits out of some pretty small hats. He truly loves his career. He can be reached via email or by calling 985-707-5270.