Author: Kevin Young

New Construction vs. Resale Homes in Baton Rouge: A Buyer's Comparison Guide

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

Price, Value, and What You're Actually Paying For

Price is usually the first number buyers look at, but it's rarely the whole story. Research compiled for this market indicates new construction homes in Greater Baton Rouge often run higher per square foot than resale homes of similar size in the same general area—a gap that reflects new systems, finishes, and community amenities. Builders sometimes offset that premium with incentives such as interest rate buydowns or closing cost credits, though the availability and terms of those incentives vary by builder and development and should be confirmed directly with the builder at the time of your offer.

Resale homes, by contrast, may offer a lower entry price and more room to negotiate on price, contingencies, and closing costs—particularly in a balanced market. Parish-level median sale prices shift month to month and vary by data source and geographic scope; the figures in the stats card below reflect a February 2026 snapshot and should be verified against current listings and your agent's market analysis at the time you shop.

Buyers should also think beyond the purchase price. A resale home priced lower today may require near-term capital for repairs, system replacements, or energy upgrades. A new construction home priced higher may cost less to operate and maintain in the early years. Running a realistic five-year cost comparison—purchase price, estimated utilities, anticipated maintenance, and financing costs—gives you a more complete picture than the list price alone.

Energy Efficiency, Warranties, and Long-Term Maintenance

One of the clearest advantages of new construction is what you don't have to worry about—at least initially. Homes built to current Louisiana codes typically include modern insulation packages, energy-efficient windows, tankless water heaters, and HVAC systems designed for the region's heat and humidity. Some builders incorporate radiant barrier roof decking and storm-resilient construction features. These elements can translate to meaningfully lower monthly utility costs compared to an older home with original systems, though actual savings vary by home size, occupant habits, and utility rates.

Louisiana law provides an additional layer of protection for new construction buyers through the Louisiana New Home Warranty Act, which mandates minimum warranty coverage that builders cannot waive or reduce for owner-occupied homes. That coverage includes one year for general defects in workmanship and materials, two years for plumbing, electrical, heating, cooling, and ventilating systems, and five years for major structural defects. Buyers should review the specific warranty documents provided by their builder and consult a real estate attorney if questions arise about coverage, claims, or dispute resolution—warranty interpretation is a legal matter, not a real estate one.

Resale homes are typically sold without builder warranties. A comprehensive home inspection is standard practice and essential for understanding the condition of the roof, HVAC, plumbing, electrical, and foundation before you commit. According to Census-based data, the median construction year for Baton Rouge homes is reported as 1976, meaning a significant share of the resale inventory is 40 to 50 years old. Buyers of older homes should budget for the possibility of near-term system replacements and factor that into their offer and overall budget.

Location, Neighborhood Character, and Timeline

Where a home sits matters as much as what it's made of. New construction in Greater Baton Rouge is largely concentrated in newer subdivisions in Ascension Parish, Livingston Parish, and the southeastern portions of East Baton Rouge Parish. Communities active at the time this article was researched include Cane Mill Crossing, Brook Hollow, Legacy Oaks, Arbor Grove, Juban Gardens, Whispering Springs, Materra, and Woodstock Park, among others—though buyers should confirm current availability and community status directly with builders or their agent, as new development phases open and close. These developments often feature planned amenities—pools, walking paths, community green space—and are designed around modern suburban living. The tradeoff is that surrounding retail, dining, and infrastructure may still be developing, and the neighborhood character is newer and less defined.

Resale homes open the door to Baton Rouge's established neighborhoods, including the Garden District, Spanish Town (one of the city's oldest neighborhoods, established in 1805), and areas near LSU and the medical corridor. These areas offer mature tree canopies, architectural variety, walkability, and proximity to downtown amenities that newer subdivisions simply cannot replicate. Homes in these corridors also attract consistent rental demand, which matters to buyers who may eventually convert the property to an investment.

Timeline is another practical factor. Building a new home from scratch can take four to twelve months depending on the builder, materials, and permitting. Quick-move spec homes—already under construction or complete—can shorten that window considerably. Resale transactions, by contrast, typically close in 30 to 45 days from an accepted offer, making them the faster path for buyers with a firm move-in deadline. If your lease is ending or you're relocating on a set schedule, timeline alone may narrow your options significantly.

Questions to Ask, Documents to Review, and Professionals to Involve

The due diligence process looks different depending on which path you choose, and knowing what to ask in advance can save you from costly surprises.

For new construction, ask the builder for the full warranty documentation and have a real estate attorney review it before you sign a purchase agreement. Builder contracts are typically drafted to favor the builder, and the terms—including what triggers a warranty claim, how disputes are handled, and what remedies are available—deserve careful legal review. Ask specifically what is and is not covered, how to submit a claim, and what the process looks like if a dispute arises. Also ask whether the community or specific lots qualify for any special financing programs, such as USDA Rural Development loans, and confirm current property and income eligibility with a licensed lender.

For resale homes, hire a licensed home inspector and review the seller's property disclosure carefully. Request copies of any permits pulled for renovations or additions, and ask about the age and service history of major systems—roof, HVAC, water heater, and electrical panel. Utility records from the past 12 months can give you a realistic picture of operating costs.

For both property types, flood zone status deserves serious attention in Greater Baton Rouge. Obtain the flood zone designation for any property you're considering, request an elevation certificate if one exists, and get an insurance quote from a licensed insurer before you're under contract—not after. Flood insurance costs vary significantly by zone, elevation, and structure type and can materially affect your monthly housing cost. Your lender, insurer, and a licensed insurance agent are the right professionals for that conversation. Property tax implications, including the Louisiana Homestead Exemption available on primary residences, are worth discussing with a tax professional or the relevant parish assessor's office to understand how they apply to your specific situation.

Baton Rouge Home Seller FAQ

Baton Rouge's Most Walkable Neighborhoods for Young Professionals and Urban Lifestyles in 2026

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

Which Baton Rouge Neighborhoods Are Most Walkable for Young Professionals?

Baton Rouge is, by most measures, a car-centric city—Walk Score data places the city's overall walkability score at 39, meaning most errands still require a vehicle. But within that broader landscape, a handful of neighborhoods stand out as genuine exceptions worth knowing before you relocate.

Downtown Baton Rouge leads the list. Its compact, flat layout, consistent sidewalks, and density of destinations—restaurants, museums, the Mississippi River levee trail, the Shaw Center for the Arts, and the Manship Theatre—make it the closest thing to a traditional urban core that Greater Baton Rouge offers. Events like Live After Five and weekend markets add to the street-level energy that young professionals often look for when choosing where to live.

Mid City is the other anchor. Recognized locally as the heart of Baton Rouge's creative resurgence, it encompasses several distinct sub-neighborhoods—Capital Heights, Garden District, Spanish Town, and others—each with its own character. The Government Street corridor runs through the heart of it, lined with indie boutiques, brewpubs, chef-owned restaurants, and improved bike infrastructure. The Electric Depot, a mixed-use development on Government Street in Mid City, has transformed a former utility site into a hub for restaurants, entertainment, retail, and apartments.

The Perkins Road Overpass District rounds out the top three, offering a blend of suburban ease and walkable amenities that appeals to professionals who want proximity to groceries, bakeries, and neighborhood restaurants without a fully urban setting.

What Makes Each Walkable Neighborhood Distinct?

Understanding the personality of each area helps you match the right neighborhood to your lifestyle priorities—not just your commute.

**Downtown Baton Rouge** is the right fit if you want to live as close as possible to your office, cultural venues, or the riverfront. Housing here skews toward apartments and condos, often in historic buildings or newer mixed-use developments. The Louisiana State Capitol and state office buildings are major nearby employers, making Downtown particularly practical for professionals in government, law, or policy. CATS bus service connects Downtown to Mid City and the LSU area, though driving remains common for longer commutes.

**Mid City's sub-neighborhoods** each have a slightly different feel. Capital Heights is popular with young professionals for its central location, community feel, and walkable streets lined with coffee shops and small businesses. The Garden District offers mature oaks, historic bungalows, and a genuine culture of walking—residents regularly walk to City Park and the Zeeland Street Market on Perkins Road. The Red Stick Farmers Market, held on Saturday mornings downtown at 5th and Main Streets, is also accessible from the Garden District for those willing to make the short trip. Spanish Town, Baton Rouge's most colorful neighborhood, is known for its Mardi Gras parade and easy walking access to galleries, restaurants, and Downtown. One practical note: some parts of the Garden District have uneven sidewalks caused by mature tree roots, so the walking experience can vary block by block.

**The Perkins Road Overpass District and Southdowns** appeal to professionals who want neighborhood-scale walkability—think a Saturday morning walk to a bakery or a short stroll to dinner—without the density of Downtown. The research notes that crossing the overpass on foot has historically been challenging, but a $2.9 million infrastructure project that broke ground in July 2026 is specifically designed to address that, adding a multi-use pathway, improved lighting, signage, and bike racks. Completion was estimated at approximately six months from groundbreaking, so the full benefit of those improvements may still be in progress depending on when you read this—verify current status directly with the MovEBR program or the City-Parish.

Practical Steps for Relocating to a Walkable Baton Rouge Neighborhood

Choosing a walkable neighborhood in Baton Rouge requires a bit more due diligence than it might in a city where walkability is the norm rather than the exception. Here are the practical steps worth taking before you sign a lease or make an offer.

**Check Walk Score at the address level, not just the neighborhood level.** Even within generally walkable neighborhoods, individual blocks can vary significantly. A unit on a main commercial corridor in Mid City may score very differently from one a few blocks into a residential side street. Walk Score (walkscore.com) lets you enter a specific address and see what's actually within walking distance.

**Visit in person at different times of day.** Street-level energy in these neighborhoods shifts between morning, lunch, evening, and weekend. A Saturday morning walk through the Garden District or along Government Street will tell you more about the actual lifestyle than any online description.

**Factor in Baton Rouge's climate.** Even in the most walkable neighborhoods, summer heat and humidity in South Louisiana can make extended outdoor walking genuinely uncomfortable for several months of the year. Proximity to shaded routes, indoor amenities, and air-conditioned destinations matters more here than it would in a northern city. This is a lifestyle consideration worth weighing honestly before committing to a car-free or car-light approach.

**Track ongoing development projects.** Two significant investments are underway: Plan Baton Rouge III, a downtown redevelopment vision unveiled in May 2026 that calls for more than $1.5 billion in early investment and aims to triple the residential population over a decade—though the plan still requires EBR Planning Commission and Metro Council approval before formal adoption—and the Perkins Road Underpass Project, which broke ground in July 2026. Both suggest these areas are actively improving, but also that some disruption or incomplete infrastructure may be present during the transition. Ask your REALTOR® about the current status of projects near any property you're seriously considering.

Questions to Ask and Professionals to Consult Before You Commit

Walkability is one factor in a relocation decision, but it intersects with several others that require professional input rather than general research.

**Flood zone and insurance:** Many of Baton Rouge's most desirable urban neighborhoods—including parts of Mid City and areas near the river—carry flood risk that varies significantly by specific address and elevation. Flood insurance costs and requirements are determined by FEMA flood map designations and your lender's requirements, not by neighborhood reputation. A licensed insurance agent familiar with Louisiana flood coverage should review the specific property before you commit.

**Property taxes and homestead exemption:** Louisiana's homestead exemption and property tax structure can meaningfully affect your carrying costs as an owner, but the calculation depends on your specific property's assessed value and parish millage rates, which can change. A tax professional or your closing attorney can walk you through what to expect for a specific address.

**Condo and HOA documents:** If you're considering a condo or apartment in a mixed-use building—common in Downtown and Mid City—review the association documents carefully with an attorney. Rules around rentals, pets, parking, and assessments vary widely and can affect your lifestyle and resale options.

**Public transit specifics:** CATS bus service connects Downtown, Mid City, and the LSU area, but routes, schedules, and reliability matter for daily commuters. Check current CATS route maps directly for the specific address you're considering rather than relying on general neighborhood descriptions.

**Your REALTOR®'s role:** A local agent familiar with these neighborhoods can help you identify which blocks and buildings best match your walkability priorities, flag active development or infrastructure projects nearby, and connect you with the right professionals for legal, lending, and insurance questions. That local knowledge is especially valuable in a city where walkability varies as much block-to-block as it does in Baton Rouge.

Baton Rouge Home Seller FAQ

Your 2026 Seller's Guide: How to Navigate the Greater Baton Rouge Real Estate Market

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

What Greater Baton Rouge Market Conditions Look Like for Sellers in 2026

The headline numbers heading into the second half of 2026 are encouraging for sellers. According to market data from June 2026, the Greater Baton Rouge median sales price reached $281,515, a 2.4% increase from June 2025. Pending sales rose 8.3% year-over-year to 900 in June 2026, and closed sales increased 1.8% to 950—both signals that buyer demand remains intact. Inventory fell 3.6% to approximately 3,373 homes, with months of supply tightening from 4.7 to 4.3. Sellers received an average of 98.2% of their list price in June 2026, up slightly from 97.9% a year earlier.

That said, the market is not uniformly fast. The average days on market in Greater Baton Rouge was approximately 68 days in June 2026, and a broader Capital Region measure placed the average closer to 88 days as of March 2026—a figure that reflects how selective buyers have become. Fixer-uppers priced like move-in-ready homes are sitting longer, while well-prepared, accurately priced listings are moving. Sellers who treat their home as a product—not just a property—are capturing the strongest offers.

The market is best described as rebalancing toward sellers rather than a full seller's market. That distinction matters for pricing strategy: overpricing in this environment tends to produce longer market times and, ultimately, lower net proceeds than a well-calibrated list price from day one.

Louisiana Disclosure Requirements Every Seller Must Understand

Louisiana's disclosure framework is more detailed than many sellers expect, and getting it right protects you legally while building buyer confidence. The Louisiana Real Estate Commission prescribes the Property Disclosure Document (PDD), which must be delivered no later than the time a buyer submits an offer. If you deliver it after the offer, the buyer generally has 72 hours to cancel without penalty and receive a deposit refund—a timeline that can disrupt a transaction if disclosure is treated as an afterthought.

The PDD requires you to disclose any known defects that could affect the property's value or safety: past termite damage, foundation repairs, roof issues, drainage concerns, and known health or safety hazards such as lead paint, asbestos, mold, or radon. The document is a disclosure of known conditions, not a warranty—but omitting or misrepresenting known issues can expose you to significant legal liability under Louisiana's redhibition laws.

Flood disclosures deserve particular attention in this region. Louisiana law requires sellers to disclose whether and how frequently the property has flooded, whether it sits in a FEMA-designated Special Flood Hazard Area, and whether the seller or a previous owner received federal disaster assistance that obligates future owners to maintain flood insurance. Failure to provide the federal disaster aid notice can result in the seller being required to reimburse the federal government for prior assistance. The practical guidance here is straightforward: when in doubt, disclose it. Your listing agent and, where appropriate, a real estate attorney can help you navigate the specifics of your property's history.

Practical Preparation: Pricing, Presentation, and Timing

Strategic pricing is the single most important decision you will make as a seller. With buyers educated and selective, a home priced above its supportable market value tends to accumulate days on market—and a listing that sits too long raises questions in buyers' minds even after a price reduction. A Comparative Market Analysis from a knowledgeable local agent, grounded in recent closed sales in your specific neighborhood, is the foundation of a sound pricing strategy.

Presentation is the second lever. Research from the current market cycle consistently shows that well-prepared, professionally marketed homes are moving while poorly presented listings are not. That means addressing deferred maintenance before listing, considering professional staging, and investing in quality photography and digital marketing. Buyers in 2026 are described as pursuing 'flight to quality'—homes with modern resilience features, such as a Fortified Roof designation, are noted as particularly attractive in this market.

On timing, statewide data suggests late spring and early summer tend to produce faster sales and stronger prices in Louisiana. Baton Rouge-specific data indicates November has historically shown a price premium locally—though market conditions shift, and your agent's read on current absorption rates in your price range and parish should guide your launch date more than any general rule of thumb. The goal is to enter the market when your home is fully ready, not before.

Closing Costs, Property Taxes, and Professionals to Involve

Budgeting accurately for your net proceeds requires understanding what comes out at the closing table. According to the research, average seller closing costs in Louisiana run approximately 3.14% of the purchase price, not counting real estate commissions. Commissions—shared between the listing and buyer's agents—commonly range from 5% to 6% of the sales price and are negotiable. Title service fees typically run around 0.50% of the sale price, and in many Baton Rouge-area transactions, the seller customarily pays for the owner's title insurance policy. Louisiana does not charge a real estate transfer tax, which is a meaningful difference from many other states.

Property taxes are prorated at closing, with the seller responsible for the portion of the year they owned the home. The title company will typically use the prior year's tax bill for proration if the current year's bill has not yet been issued. In East Baton Rouge Parish, residential property is assessed at 10% of fair market value, and millage rates vary by location within the parish depending on city limits, fire protection districts, drainage districts, and voter-approved millages. Because millage rates can change annually and differ significantly by district, sellers should verify their specific current rate directly with the East Baton Rouge Parish Assessor's Office at ebrpa.org before estimating their tax proration.

The Louisiana Homestead Exemption exempts the first $7,500 of assessed value (equivalent to $75,000 of market value) from most property taxes for primary residences—but it is not automatic and must be filed for. If you have been claiming it, confirm it is active; if you have not, consult the assessor's office. Beyond your listing agent, the professionals most relevant to a Louisiana home sale include a real estate attorney (especially for complex title or disclosure questions), a tax professional (for capital gains and proceeds planning), and a title company or closing attorney to manage the settlement.

Baton Rouge Home Seller FAQ

HOA Fees in Greater Baton Rouge (2026): What Buyers Pay, What's Covered, and How Condos Differ from Townhomes

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

What Are Typical HOA Fees in Greater Baton Rouge in 2026?

HOA fees in Greater Baton Rouge span a remarkably wide range, and buyers who rely on a single average figure can be caught off guard. One local real estate resource notes fees running from as little as $25 per month in some older subdivisions—enough to cover basic common-area landscaping and shared insurance—to $200 or more per month in newer planned communities with pools, gated entrances, and clubhouses. Condos and communities with more extensive amenities or private roads can push fees well above that upper end.

For broader context, national data from the U.S. Census Bureau's 2024 American Community Survey puts the national median HOA or condo fee at approximately $135 per month, with wide variation by state, property type, and amenity level. Louisiana-specific median figures vary across data sources and methodologies, so buyers should not assume any single statewide number applies to a specific community.

The practical takeaway for buyers is straightforward: never assume a fee based on neighborhood type alone. A community's specific amenities, the age of its infrastructure, the scope of its governing documents, and the health of its reserve fund all drive the number. Always ask for the current monthly assessment in writing before making an offer, and confirm whether that figure is subject to a pending board vote or recent increase.

What Do HOA Fees Actually Cover—and How Do Condo and Townhome Structures Differ?

Understanding what your HOA fee buys is just as important as knowing the dollar amount. Across both condo and townhome communities, fees commonly fund maintenance and repairs of shared spaces, operation of amenities like pools and fitness centers, master insurance on common areas, utilities for shared lighting and irrigation, trash collection, reserve fund contributions, and administrative expenses such as management, accounting, and legal costs. Some communities also include security services or gated-entrance systems.

The structural difference between condo and townhome HOAs, however, is significant and directly affects both the fee level and a buyer's personal financial exposure.

In a condominium, the owner typically holds title only to the interior airspace of the unit. The building's exterior walls, roof, land, and all common areas are shared property managed by the HOA. Because the association is responsible for the entire building envelope—including roofing, siding, and structural components—condo HOAs generally carry broader responsibilities and higher fees. The HOA also maintains a master insurance policy covering the building exterior and common areas; individual owners insure only their interior.

In a townhome, the owner typically holds fee-simple title to both the structure and the land beneath it. The HOA's role is usually limited to maintaining shared common areas and community amenities. Exterior maintenance—including roof repairs—is generally the individual owner's responsibility, which is why townhome HOA fees tend to be lower. Buyers should note, however, that some townhome HOAs do cover exterior maintenance and roofing, so the governing documents must be reviewed for each specific community.

Practical Decision Points: Budgeting, Reserve Funds, and the Condo-vs.-Townhome Tradeoff

HOA fees are not optional and are not absorbed into the mortgage payment—they are a separate, recurring obligation that lenders factor into debt-to-income calculations. A buyer who qualifies comfortably for a mortgage on a non-HOA home may find their borrowing power reduced when a monthly HOA fee is added to the equation. Budget planning should treat the HOA fee as a fixed monthly cost alongside principal, interest, taxes, and insurance.

Beyond the monthly figure, the reserve fund deserves serious attention. Louisiana law does not mandate specific reserve fund contribution percentages or require reserve studies for either condominiums governed by the Louisiana Condominium Act or planned communities governed by the Louisiana Planned Community Act. The Planned Community Act does require budget transparency, including a statement of how reserves are calculated and funded, but it stops short of imposing a statutory funding formula. This means an HOA can legally operate with a thin or depleted reserve account.

For buyers in Greater Baton Rouge—a region with meaningful weather-related risk—an underfunded reserve is a material concern. A major roof replacement, parking lot repaving, or pool system overhaul can trigger a special assessment that falls entirely on current owners. Reviewing the HOA's most recent financial statements and asking about the history of special assessments is not optional due diligence; it is essential.

On the lifestyle tradeoff: buyers who want minimal exterior maintenance and access to shared amenities should expect higher fees, particularly in condos. Buyers who prefer control over their property's exterior and are willing to manage their own maintenance may find townhomes with lower HOA fees a better fit—provided they budget separately for roof, siding, and exterior upkeep.

Documents to Request, Questions to Ask, and Professionals to Consult

The governing documents of an HOA are legally binding contracts that define what you can and cannot do with your property, what the association is obligated to maintain, and how assessments are set and collected. Buyers should request and review all of the following before making an offer: the declaration of covenants, conditions, and restrictions (CC&Rs); the bylaws; the current operating budget; the most recent audited or reviewed financial statements; the reserve fund balance and any reserve study if one exists; and board meeting minutes from at least the past 12 months. Meeting minutes often reveal pending litigation, deferred maintenance, or planned fee increases that would not appear in the budget alone.

Key questions to ask the listing agent or HOA management company include: What is the current monthly assessment, and has a fee increase been approved or proposed? Has the community levied any special assessments in the past three to five years, and are any currently under discussion? What does the master insurance policy cover, and what are individual owners expected to insure separately? Are there any pending lawsuits involving the association?

For interpretation of the governing documents—particularly anything touching on your legal rights, the association's authority to assess, or insurance obligations—consult a Louisiana real estate attorney. The Louisiana Condominium Act and the Louisiana Planned Community Act each carry specific provisions that affect your rights as an owner, and a licensed attorney is the appropriate professional to advise you on those matters. Your lender can clarify how the HOA fee affects your qualifying ratios and whether the community meets secondary-market lending guidelines, which can affect financing options for condos in particular.

Baton Rouge Home Seller FAQ

Selling a Home With Foundation Issues in Greater Baton Rouge: Disclosure Requirements and Seller Strategies for 2026

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

What Louisiana Law Requires When You Sell a Home With Known Defects

The foundation of seller disclosure in Louisiana is the Residential Property Disclosure Act (La. R.S. § 9:3196 et seq.). Under this law, sellers of residential property must disclose any known material defect—defined as a condition that has a substantial adverse effect on the property's value, significantly impairs the health or safety of future occupants, or, if left unaddressed, significantly shortens the expected normal life of the property. Foundation cracks, water intrusion history, and prior structural repairs all fall squarely within that definition.

The Louisiana Real Estate Commission (LREC) mandated updated versions of both the Residential Agreement to Buy or Sell and the Property Disclosure Document (PDD), effective January 1, 2026. These revised forms are mandatory for all covered residential transactions in Louisiana and are the forms your transaction must use. Sellers are required to deliver the completed PDD to the buyer before the purchase contract is signed. If delivery happens after the buyer submits an offer, the buyer has a statutory right to terminate the contract or withdraw the offer within 72 hours of receipt, excluding federal and state holidays and weekends, without penalty.

One important obligation reinforced in the 2026 forms—and first introduced in the 2024 PDD—is the continuous disclosure requirement: if any condition disclosed on the PDD changes, or if a new defect surfaces between signing and closing, the seller must deliver written notice immediately. That means a new crack, a fresh moisture stain, or any worsening of a previously disclosed condition must be communicated in writing—not mentioned verbally at closing. Consult a Louisiana real estate attorney if you have questions about how this obligation applies to your specific situation.

Does 'As-Is' Mean You Don't Have to Disclose? The Answer May Surprise You.

This is one of the most common misconceptions sellers bring to the listing conversation. An 'as-is' designation is a contractual term about who bears the cost of repairs—it is not a disclosure exemption. Louisiana law is clear on this point: even in an as-is transaction, the seller must complete the Property Disclosure Document and disclose every known material defect, including foundation problems, prior water intrusion, and any structural repairs that have been made.

The law also provides that certain transaction types—such as successions and transfers between co-owners—may be exempt from the general requirement to provide a PDD, but effective January 1, 2024, sellers in those transactions who have actual knowledge of a defect are still required to disclose it. The exemptions and their scope are defined in La. R.S. § 9:3197; whether a particular transaction qualifies for an exemption and what disclosure obligations remain is a legal question best directed to a Louisiana real estate attorney.

For sellers with significant known defects, the as-is approach can still be a practical and legitimate strategy—but it works best when paired with complete transparency. Clearly communicating the as-is nature of the sale in marketing materials sets buyer expectations upfront and tends to attract the buyers most likely to proceed: investors, renovation-focused purchasers, and cash buyers who are comfortable accepting a property in its current condition. What it does not do is relieve you of the obligation to hand that buyer a fully and honestly completed PDD. Failure to disclose known material defects can expose a seller to fraud claims, lawsuits for repair costs, and liability for the buyer's legal fees. Speak with a Louisiana real estate attorney before closing if you have any uncertainty about what must be disclosed.

Practical Preparation: How to Position a Home With Foundation Issues for Sale

Preparation is where sellers with known defects can meaningfully influence their outcome. Here are the practical steps worth considering before you list:

**Complete the PDD meticulously.** The 2026 Property Disclosure Document asks specific questions about foundation condition, water intrusion history, and prior repairs. Answer every applicable question fully and accurately. Vague or incomplete answers do not protect you—they create ambiguity that can become a legal problem after closing.

**Consider a pre-listing inspection.** Louisiana law does not require sellers to obtain a home inspection before completing the disclosure form; the obligation is tied to what you know. However, a pre-listing inspection can surface conditions you may not be aware of, giving you the opportunity to disclose them proactively, address them before listing, or price accordingly. It also reduces the likelihood of a buyer's inspection producing a surprise that derails the transaction.

**Price to reflect condition.** A home with known significant defects will generally command a lower price than a comparable property without those issues. Work with your REALTOR® to analyze comparable sales and factor in the realistic cost of repairs or the discount a buyer will expect for accepting the property as-is. Overpricing a defect-present home typically extends days on market and ultimately produces a lower net than a well-priced listing from the start.

**Target the right buyer pool.** Homes with major structural issues tend to attract investors, house-flippers, and cash buyers rather than traditional owner-occupants seeking a move-in-ready home. Marketing language, listing platforms, and outreach strategy should reflect that reality. Conventional financing can be difficult or unavailable for properties with significant structural defects, so anticipating a cash or renovation-loan buyer pool is important for managing timeline expectations.

Questions to Ask, Documents to Gather, and Professionals to Involve

Selling a home with known foundation issues or other significant defects involves more moving parts than a standard listing. Getting organized before you go to market protects you legally and helps the transaction move more smoothly once a buyer is under contract.

**Documents to locate and organize:**
– Prior home inspection reports, including any from when you purchased the property
– Receipts, warranties, and contractor records for any foundation repairs, waterproofing, or structural work
– Insurance claims related to flooding, storm damage, or structural issues
– Building permits pulled for any repair or renovation work
– Flood zone determination and elevation certificate, if applicable
– Any engineering or structural reports previously obtained

**Professionals to involve:**
– **Louisiana real estate attorney:** Disclosure obligations under the Residential Property Disclosure Act carry legal consequences. An attorney can help you understand what must be disclosed in your specific situation, review the completed PDD before delivery, and advise on liability exposure. This article is general educational information and is not a substitute for legal advice.
– **Licensed structural engineer or foundation specialist:** If the extent of a foundation issue is uncertain, a professional evaluation creates a documented record of the condition as of a specific date—useful both for accurate disclosure and for pricing conversations.
– **Your REALTOR®:** A knowledgeable local agent can help you price the property appropriately for its condition, identify the most likely buyer pool, and coordinate the transaction from listing through closing.
– **Lender (buyer-side awareness):** Significant structural defects can affect a buyer's ability to obtain conventional financing. Understanding this early helps you set realistic expectations about who your likely buyers are and how long the process may take.

Baton Rouge Home Seller FAQ

Beyond the Homestead Exemption: Property Tax Relief in Greater Baton Rouge for Seniors, Disabled Veterans, and First Responders in 2026

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

The Assessment Freeze and What It Actually Does for Seniors and Disabled Homeowners

Louisiana's Special Assessment Level—commonly called the assessment freeze—is one of the most meaningful property tax tools available to qualifying Greater Baton Rouge homeowners, and it works differently than most people expect. Rather than reducing your tax bill by a fixed dollar amount, it locks your home's assessed value at the level it held when you first qualified. That means future reassessments, which occur every four years in Louisiana, cannot push your assessed value higher as long as you continue to meet the eligibility requirements.

To qualify in 2026, you must be 65 years of age or older, permanently and totally disabled as certified by a court or government agency, or a disabled veteran with a VA service-connected disability rating of 50% or greater. The household adjusted gross income limit for 2026 applications is $102,700—a figure confirmed by the West Baton Rouge Parish Assessor's office and consistent with the $100,000 constitutional baseline adjusted annually by the Consumer Price Index beginning with tax year 2026. Both spouses' income counts toward that threshold.

One important nuance: the freeze applies to assessed value, not to millage rates. If your parish or a taxing district raises its millage rate, your tax bill can still increase even with the freeze in place. The standard Homestead Exemption continues to apply on top of the frozen assessed value, so the two benefits work together. Applications are filed through your parish assessor's office—East Baton Rouge, Ascension, Livingston, and West Baton Rouge each administer this program locally. Contact your assessor directly to confirm current deadlines and required documentation.

Tiered Disabled Veteran Exemptions and the First Responder Benefit

Louisiana's tiered disabled veteran exemptions, which became effective January 1, 2023, are structured around the VA service-connected disability rating and stack on top of the standard Homestead Exemption. According to the West Baton Rouge Parish Assessor and confirmed by the Louisiana Constitution, the tiers work as follows: veterans with a 50–69% VA disability rating receive an additional $2,500 of assessed value exempt from property taxes (equivalent to $25,000 of market value at the 10% residential assessment ratio); veterans with a 70–99% rating receive an additional $4,500 of assessed value exempt (equivalent to $45,000 of market value); and veterans with a 100% rating—including those granted individual unemployability—receive a full exemption from all ad valorem property taxes on their primary residence. Municipal taxes and fees may still apply even at the 100% level.

Surviving spouses of qualifying disabled veterans may also be eligible for these exemptions, provided they continue to own and reside on the property. Eligibility details for surviving spouses can vary, so contact your parish assessor's office for the specific requirements that apply to your situation. To claim the benefit, veterans must obtain a Disabled Veterans Property Tax Benefits Certification letter (Form A25) from the Louisiana Department of Veterans Affairs and present it to their local parish assessor's office.

The first responder exemption was authorized by Louisiana Amendment 3, approved by voters on November 18, 2023, and became effective January 1, 2024. It provides an additional $2,500 of assessed value exempt for qualifying first responders—including full-time law enforcement, fire protection, EMS, emergency response dispatchers, and certain volunteer firefighters—who both live and work in the same parish. Importantly, the constitutional amendment authorizes each parish governing authority to approve the exemption; it is not automatic in every parish. Homeowners should confirm with their specific parish assessor whether the exemption has been adopted locally. Annual employer documentation is required to maintain the benefit.

What the November 2026 Ballot Measures Could Mean—and Why Their Outcome Is Still Pending

The research identifies constitutional amendments scheduled for the November 3, 2026, Louisiana ballot that are directly relevant to property tax relief in Greater Baton Rouge. It is critical to understand that these are proposed changes—they require voter approval to take effect, and their outcome is pending as of the research compilation date.

The first, authorized by Act 274 of the 2026 legislative session and introduced as House Bill 514 (HB 514), is described as the Property Tax Exemption for Seniors Amendment. If approved by voters and adopted by local parishes and municipalities, it would authorize an additional, age-graduated property tax exemption for qualifying senior homeowners aged 65 and older who also qualify for the Special Assessment Level freeze. The additional exemption would be tiered by age, ranging from $6,000 of assessed value at age 65 up to $30,000 of assessed value at higher age thresholds. If approved, this provision would take effect January 1, 2028, and would require local parish or municipal adoption before applying in any given jurisdiction.

The second, introduced as House Bill 300 (HB 300), would raise the household income cap for the Special Assessment Level freeze from its current threshold to $150,000—potentially making the freeze available to a significantly broader group of senior and disabled homeowners. If approved by voters, this change would take effect for the 2027 tax year.

A third amendment, introduced as House Bill 521 (HB 521), would adjust how millage rate limits are calculated, authorizing taxing authorities to levy rates above the prior year's appraisal-adjusted rate but below the maximum voter-approved rate.

Because none of these amendments have been voted on yet, they carry no legal effect at this time. Homeowners who might benefit from an expanded income cap or a new senior exemption should monitor official Louisiana election results after November 3, 2026, and then consult their parish assessor's office to understand whether and when any newly approved provisions take effect. A tax professional can help you evaluate the financial implications for your specific situation.

Practical Steps: Documents to Gather, Questions to Ask, and Professionals to Contact

Understanding that a benefit exists is only the first step—actually securing it requires timely action through the right channels. Here is a practical framework for Greater Baton Rouge homeowners exploring these programs.

For the Special Assessment Level freeze, contact your parish assessor's office (East Baton Rouge, Ascension, Livingston, or West Baton Rouge) and ask specifically about the application deadline for the current tax year, what income documentation is required, and whether your disability certification—if applicable—meets the parish's standards. Income limits and procedural details can shift, so verify directly rather than relying on prior-year information.

For disabled veteran exemptions, the starting point is the Louisiana Department of Veterans Affairs, which issues the Form A25 certification letter that your parish assessor requires. The VA disability rating on your official VA documentation will determine which tier of exemption applies. Surviving spouses should ask the assessor's office specifically about spousal eligibility and any additional documentation needed.

For the first responder exemption, confirm first with your parish assessor's office that the exemption has been adopted in your parish, since the constitutional amendment authorizes but does not require each parish to offer it. If it has been adopted, your employer must complete annual documentation confirming your employment status and parish of employment. Ask your HR or payroll department whether they are familiar with the process, and bring that documentation to your assessor's office.

From a real estate perspective, these exemptions are tied to the owner-occupant and do not automatically transfer when a home is sold. If you are buying a home in Greater Baton Rouge, the seller's exemptions will not carry over to you—you will need to apply for any exemptions you qualify for after closing. If you are selling, be aware that a buyer cannot assume your assessment freeze; their assessed value will reset at the time of sale. For questions about how these exemptions affect your tax basis, estate planning, or financial planning, consult a licensed tax professional or attorney.

Baton Rouge Home Seller FAQ

Common Contingencies in a Greater Baton Rouge Purchase Agreement: What Buyers and Sellers Need to Know in 2026

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

What Are Real Estate Contingencies and Why Do They Matter in Greater Baton Rouge?

In Greater Baton Rouge, contingencies are standard components of nearly every residential transaction. They are not loopholes or signs of a weak offer—they are the structured framework that defines each party's rights and obligations from the moment a contract is signed to the day of closing. The governing document in Louisiana is the Residential Agreement to Buy or Sell, which the Louisiana Real Estate Commission (LREC) oversees and periodically revises. Effective January 1, 2026, the LREC mandated updates to this form, reinforcing the importance of understanding not just what contingencies exist, but how the specific language of the current agreement shapes them.

For buyers, contingencies are primarily a financial safety net. They define the circumstances under which earnest money—the good-faith deposit submitted with an offer—can be returned if the deal falls apart for a covered reason. For sellers, contingencies establish clear timelines and conditions, giving them a structured path toward closing and, in some cases, the ability to continue marketing the property if a buyer's conditions are not satisfied. In a market where contingent listings are common, both sides benefit from knowing exactly what each clause requires and what happens when a deadline passes.

The Five Most Common Contingencies—and How Each One Protects You

**Inspection Contingency:** Typically grants the buyer a set period—often cited in Louisiana practice as roughly 10 to 14 days, though the specific number of days is negotiated and written into the contract—to have the property professionally inspected. If serious issues are discovered, the buyer may request repairs, negotiate a price reduction, or exit the contract and recover their earnest money. Sellers benefit from a structured process: once the buyer accepts the property's condition or the deadline passes without action, the contingency is removed and the transaction moves forward. Waiving this contingency, particularly for older homes, carries meaningful financial exposure for buyers.

**Financing Contingency:** Protects buyers who are using a mortgage by specifying loan type, terms, and a deadline to secure approval. If the buyer cannot obtain financing for a covered reason within the agreed period, they can exit without forfeiting their deposit. For sellers, it sets a firm deadline that confirms the buyer's financial capability.

**Appraisal Contingency:** If the lender's appraiser values the property below the purchase price, the buyer may renegotiate, bring additional cash to closing, or terminate the contract and recover their deposit. Lenders generally require an appraisal before funding a loan, making this contingency closely linked to the financing contingency in practice.

**Home Sale Contingency:** Makes the purchase conditional on the buyer's existing home selling first. Many of these include a kick-out clause—sometimes called a 72-hour clause—allowing the seller to continue marketing and accept a competing offer, giving the original buyer a short window to remove the contingency or walk away.

**Title Contingency:** Conditions the sale on the seller delivering a clear, merchantable title free of undisclosed liens, encumbrances, or ownership disputes. Under the Louisiana Residential Agreement to Buy or Sell, all costs and fees required to make title merchantable are the seller's responsibility. If title issues cannot be resolved, the buyer can demand return of their deposit. Sellers bear the obligation to clear title before closing.

2026 LREC Form Updates: What's New and Why It Matters at the Contract Table

The 2026 updates to the Louisiana Residential Agreement to Buy or Sell do not add new contingencies in the traditional sense, but they do strengthen the protective framework around two areas that had previously been handled less formally.

**Cash Buyer Proof of Funds:** The revised form explicitly requires cash buyers to provide documentation of their financial capability—such as a bank statement or letter of financial capability—within a specified number of days stated in the contract. If that documentation is not delivered on time, the seller has an explicit contractual right to terminate the agreement. The new language also grants the seller and their agent permission to contact the financial institution to verify the authenticity of the documentation provided. This change directly addresses a practical risk sellers face when accepting cash offers: the possibility that a buyer's claimed funds do not actually exist or are not accessible. Sellers evaluating cash offers in 2026 should confirm that the proof-of-funds deadline and verification language are properly included in the agreement.

**Buyer Broker Compensation Disclosure:** The 2026 agreement includes a dedicated section—new as of this form version—disclosing the amount the seller agrees to contribute toward the buyer's broker compensation at closing, with clarification that this amount is disbursed from the seller's proceeds. This change increases transparency for all parties and reflects broader industry shifts in how buyer agent compensation is documented in purchase agreements.

Buyers and sellers should review the current LREC-mandated form with their agent and, where appropriate, with a licensed Louisiana real estate attorney, to understand how these provisions apply to their specific transaction.

Practical Decision Points: Questions to Ask, Documents to Gather, and Professionals to Involve

**For Buyers — Key Decision Points:**

– *Know your deadlines.* Every contingency has a contractual timeframe. Missing a deadline—even by a day—can cost you your right to exit without penalty. Your agent should track these dates and prompt you well in advance.
– *Understand what you're waiving.* In competitive situations, buyers sometimes consider waiving inspection or appraisal contingencies to strengthen an offer. This is a significant financial decision. Discuss the specific risks with your agent before agreeing to waive any protection, particularly for older properties where undisclosed issues are more likely.
– *Protect your earnest money.* If you exit a contract under a valid, properly documented contingency within the allowed window, you are generally entitled to a full return of your deposit. Exiting outside a contingency window or for a reason not covered by the contract may result in forfeiture.
– *Cash buyers: prepare your documentation.* The 2026 LREC form requires proof of funds within a specified number of days. Have your bank statement or financial capability letter ready before you make an offer.

**For Sellers — Key Decision Points:**

– *Evaluate offer strength beyond price.* A higher offer with multiple contingencies may carry more risk than a slightly lower offer with fewer conditions. Your agent can help you compare offers on a risk-adjusted basis.
– *Insist on kick-out clauses.* If you accept a home sale contingency, ensure the agreement includes a kick-out clause so you retain the right to continue marketing and respond to competing offers.
– *Verify cash offer documentation.* Under the 2026 form, you have the right to request and verify proof of funds. Use it.

**Professionals to Involve:** A licensed Louisiana real estate attorney can review contract language, advise on your rights under specific contingency clauses, and assist if a dispute arises. Your lender should be engaged early to confirm financing timelines align with contract deadlines. A licensed home inspector should be scheduled promptly once a contract is signed so the inspection contingency window is not wasted.

Baton Rouge Home Seller FAQ

Kevin's Corner: What Are the Best School Districts in Greater Baton Rouge, and How Do School Ratings Impact Home Values in 2026?

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

The Top-Performing School Districts in Greater Baton Rouge

Understanding how these districts differ — and what that means for home prices — is one of the most practical things a buyer can do before starting a home search in the Greater Baton Rouge area.

**Zachary Community School District — #1 in Louisiana**

Zachary Community School District earns the top spot on Niche's 2026 Best School Districts in Louisiana ranking, with an overall A+ grade from Niche. Zachary High School ranks #11 among Best Public High Schools in Louisiana and #2 in the Baton Rouge metro area on Niche's 2026 list. Homes.com reports a 98% graduation rate for Zachary High. According to Niche's 2024–25 LEAP-based data, 47% of Zachary district students are proficient in math and 59% in reading — well above Louisiana state averages.

Zachary and Central operate as independent city school systems within East Baton Rouge Parish, meaning a home's address in the broader parish does not automatically place a child in either district. Buyers should verify school zone assignments for any specific property before making decisions.

**Ascension Parish Public Schools — #3 in Louisiana**

Ascension Parish Public Schools ranks #3 in Louisiana on Niche's 2026 list, earning an overall A grade. According to Niche's 2024–25 data, 53% of Ascension Parish students are proficient in math and 60% in reading. The district has one of the highest concentrations of A-rated individual schools in the region, with Dutchtown High School consistently cited as a top-performing high school in the state. Ascension Parish has grown significantly in recent years, with new schools built to serve communities like Prairieville and Gonzales.

**Central Community School District — #5 in Louisiana**

Central Community School District ranks #5 among 70 Louisiana school districts on Niche's 2026 list, with an overall A- grade from Niche and an A rating from the Louisiana Department of Education. According to Niche's 2024–25 data, 52% of Central students are proficient in math and 53% in reading. A third-party construction industry source notes that more than half of Central students score at Mastery or above on state tests — a level reached by only a handful of districts statewide, though buyers should verify current LDOE data directly.

Like Zachary, Central operates as an independent city school system within East Baton Rouge Parish. Living in the broader parish does not guarantee enrollment in Central schools.

**Livingston Parish Public Schools — #14 in Louisiana**

Livingston Parish Public Schools ranks #14 among 70 Louisiana school districts on Niche's 2026 list, with an overall B+ grade. According to Niche's 2024–25 data, 40% of students are proficient in math and 53% in reading. The district has shown meaningful improvement in recent years. Top-cited schools within the district include Live Oak High School, which ranks #22 among Best Public High Schools in Louisiana on Niche's 2026 list.

Livingston Parish generally offers more affordable housing options than the Zachary, Central, or Ascension Parish markets, though buyers should research current pricing independently. The tradeoff is typically a longer commute into Baton Rouge, depending on the specific community.

**East Baton Rouge Parish Public Schools**

East Baton Rouge Parish is the region's largest and most complex school system. The parish's overall proficiency scores are lower than the independent city systems, but it is home to several highly regarded magnet and laboratory schools. Top-cited public schools in EBR Parish include Baton Rouge Magnet High School, Westdale Heights Academic Magnet School, and Mayfair Laboratory School. Admission to magnet programs typically involves an application process; buyers interested in these schools should contact EBR Parish Schools directly for current eligibility and enrollment procedures.

Importantly, Zachary and Central operate independently of EBR Parish Schools. A home address in East Baton Rouge Parish does not place a child in either of those systems.

How School Ratings Affect Home Values — and What It Means for Buyers

**The Price Premium Is Real**

Multiple national studies and real estate data sources consistently find that homes in highly rated school districts sell for 10% to 20% more than comparable homes in average-performing areas. In some markets, that premium reaches 49% or higher, according to Opendoor's analysis of school rating and home price data. Research from the National Bureau of Economic Research has found a direct correlation between school spending and home values.

In Greater Baton Rouge, this dynamic plays out clearly. Zachary and Central are specifically noted by local real estate observers as commanding premium prices relative to surrounding areas, driven by sustained buyer demand from families prioritizing school quality. Ascension Parish similarly attracts buyers who want strong schools, and that demand supports home values across communities like Prairieville and Gonzales.

**Why the Premium Persists**

The school-value connection is driven by a few reinforcing factors:

– **Sustained demand:** Families with children — and buyers planning for the future — actively seek top-performing districts and compete for limited inventory, pushing prices up.
– **Community signals:** Strong schools tend to reflect broader community investment, including infrastructure, engaged neighbors, and stable neighborhood conditions.
– **Resale value:** Even buyers without children recognize that a home in a desirable school district will be easier to sell later. That built-in demand supports long-term appreciation.

**A New Accountability Framework to Watch**

The Louisiana Department of Education launched a revised school accountability system — called *Grow. Achieve. Thrive.* — effective with the 2025–2026 school year. The system evaluates schools across three pillars: Grow (student academic growth), Achieve (proficiency in core subjects), and Thrive (graduation readiness and post-secondary preparation). It uses a 100-point School Performance Score.

According to the LDOE, the 2026 LEAP results are the first that will contribute to School Performance Scores under this revised system, with official scores expected to be released later in 2026. Because the new system uses different measures and a higher bar, some school and district ratings may look different when the first official scores are published. Buyers relying on LDOE letter grades should check the LDOE website directly for the most current published scores once they are released.

**Practical Steps for Buyers**

– **Verify school zone assignments.** School boundaries can shift, and performance varies significantly even within parishes. Always confirm the specific school zone for any property address using each parish's official zone lookup tool before making decisions.
– **Use multiple rating sources.** Niche, GreatSchools, and the Louisiana Department of Education each measure school performance differently. Cross-referencing them gives a more complete picture.
– **Budget for the premium.** If Zachary, Central, or Ascension Parish schools are a priority, expect to pay a premium relative to comparable homes in other parts of the metro. That premium should be factored into your overall budget.
– **Consider the full tradeoff.** Livingston Parish offers a combination of improving schools and generally more affordable housing, though commute times and specific school performance should be researched for the communities you're considering.
– **Think long-term.** Even if you don't have children, buying in a strong school district is widely recognized as a factor that supports resale value and buyer demand over time.

School district research is one area where working with a local REALTOR® who knows the specific neighborhoods, boundaries, and market dynamics can make a real difference. I'm happy to walk you through how school zones map to specific neighborhoods and what that means for your search.

Baton Rouge Home Seller FAQ

Kevin's Corner: What Are the Typical Real Estate Agent Commission Rates in Greater Baton Rouge in 2026, and Who Pays Them After the NAR Settlement?

By Kevin Young, REALTOR® | Kevin’s Corner | Baton Rouge Real Estate Market Analysis

What Are Typical Commission Rates in Greater Baton Rouge?

The 5.66% Baton Rouge average typically breaks down to roughly 2.82% for the listing (seller's) agent and 2.84% for the buyer's agent, based on the same February 2026 survey data. Nationally, the survey found listing agents averaging 2.88% and buyer's agents averaging 2.82%.

These are averages, not fixed rates. Real estate commissions are always negotiable and are not set by law. Listing commissions in Louisiana have been found to range from as low as 1.00% to as high as 4.00% depending on the agent, brokerage, property, and market conditions. Discount and flat-fee brokerages may offer lower listing fees, though the scope of services can vary — a tradeoff worth discussing with any agent you interview.

It's also worth noting that different surveys produce somewhat different figures. Another industry source places the Louisiana statewide average closer to 5.65%, with a 2.83% listing side and 2.82% buyer's side. The practical takeaway is the same: rates cluster in the mid-5% range locally, they vary by transaction, and they are open to negotiation.

Who Pays the Commission After the NAR Settlement?

**What changed on August 17, 2024:**

Two major practice changes went into effect that day for REALTOR®-affiliated MLSs:

1. **Offers of compensation to buyer's agents can no longer be published on the MLS.** Before the settlement, it was standard practice for a listing agent to post the buyer's agent commission offer directly in the MLS. That is now prohibited. Sellers and listing agents can still offer to cover the buyer's agent fee, but that offer must be communicated off-MLS — for example, through direct negotiation or as a seller concession in the purchase contract.

2. **Buyers must sign a written buyer representation agreement before touring a home.** This agreement must clearly state the amount or rate of compensation the buyer's agent will receive, how it will be determined, and that commissions are negotiable and not set by law. The buyer's agent cannot accept more than the amount specified in that agreement, even if the seller offers more.

**Who actually pays?**

Post-settlement, the buyer's agent fee is negotiated separately between the buyer and their agent. Sellers are no longer required to cover it, but many still choose to — and there are practical reasons why.

When a seller agrees to contribute toward the buyer's agent fee as part of the transaction, that contribution comes out of the sale proceeds at closing. According to guidance from Fannie Mae, Freddie Mac, FHA, and the VA, seller-paid buyer's agent commissions are generally not counted against standard seller concession caps when paid in accordance with local custom — but how this is treated in any specific transaction depends on the loan type, lender, and how the payment is structured. Buyers should confirm the specifics with their lender before making an offer.

If a seller does not offer to cover the buyer's agent fee, the buyer would need to pay their agent directly — typically in cash at closing, on top of their down payment and other closing costs. That can be a meaningful financial hurdle, particularly for buyers with limited cash reserves.

**A note for VA buyers:** The VA made permanent in April 2026 a rule allowing veterans, active-duty service members, and surviving spouses using VA loans to pay their buyer's agent commission directly — a restriction that had previously put VA buyers at a competitive disadvantage. Previously, VA borrowers were generally prohibited from paying real estate agent commissions directly. Buyers using VA financing should discuss the current rules and how commission payment will be structured with their lender and agent.

**What this means in practice for Greater Baton Rouge buyers:**

Many sellers in the Greater Baton Rouge market may still choose to offer a buyer's agent concession, because doing so can make their home accessible to a broader pool of buyers — particularly those who cannot easily come up with an additional 2–3% in cash at closing. Whether a given seller will offer that concession, and how much, is now a matter of negotiation rather than a standard MLS disclosure.

As a buyer, you should:
– **Expect to sign a written buyer representation agreement** before your agent shows you any home. Read it carefully. It will specify what your agent will be paid and who is responsible for that payment.
– **Ask about seller concessions early.** Your agent can inquire whether a seller is willing to contribute toward your agent's fee as part of the offer negotiation.
– **Budget for the possibility of paying your agent directly.** Even if many sellers still offer concessions, it is no longer guaranteed or advertised on the MLS. Factor potential buyer's agent costs into your overall home-buying budget.
– **Talk to your lender.** How buyer's agent compensation interacts with your loan type, concession limits, and closing costs is a lender-specific question. Your lender can clarify what your loan program permits and how to structure the offer accordingly.

Commission structures, seller concession practices, and the broader market response to these changes are still evolving. The guidance above reflects conditions as of mid-2026, but individual transactions will vary. Your buyer's agent and lender are your best resources for navigating the specifics of your situation.

Baton Rouge Home Seller FAQ