Nearly 70 flood-damaged homes are for sale “as is” according to the Greater Baton Rouge Association of Realtors’ Multiple Listing Service, and another 30 are under contract. That represents a more than 16% increase in flood-damaged properties than were on the MLS last week at this time.
Local real estate brokers say the data, though scant, supports the anecdotal evidence they’re seeing and hearing from others: a growing number of flood victims are deciding to walk away from their damage properties, selling them at deeply discounted prices, and start over elsewhere.
Vicki Spurlock, owner of Locations Real Estate, says four different couples—all of whom were flood victims and aren’t going back to their former homes—came to an open house she held last week in southeast Baton Rouge.
“One couple had built their house in Central 42 years ago,” she says. “They had never flooded before but they said they had no interest in going back.”
Spurlock and others say another trend they’re noticing is an increase in the number of calls from out-of-state investors, who are interested in buying multiple flooded properties, fixing them up then renting them until they can sell them at a profit.
Barry Crawford of Crawford Real Estate says he’s gotten several calls from investors. They’re looking for good deals but are also very particular about which properties and which areas of the market they want to be in, he says. He predicts it will be several years before investors are able to “flip” their investment properties at a profit.
“It will take a while for the stigma on a previously flooded home to go away,” he says. “Eventually people will forget but it will take at least a couple of years.”
In areas that didn’t flood, agents say demand is beginning to pick up after several sluggish weeks, a trend they believe will continue for months to come. Though they’re not noticing significant price increases in dry neighborhoods yet, they expect that will happen as demand increases.
“Buyers are coming in at full price but no one has offered over yet,” she says. “Until we get multiple contracts on a property they won’t do that.”
—Stephanie Riegel
