Nashville City Homes- Real Estate with Peter Bales

Transitions in Real Estate

2009-01-07T07:44:00.003-06:00

Something that I've always enjoyed about working with clients is helping them transition to a new season of their life. For some, they are moving from another city, for others, they may be buying their first home or having a baby. It's been a delight to make new friends and share the experience with them.

I've had a transition of my own and have stepped out of real estate full time. I've teamed up with my friend Micah Phillips to handle my real estate business. If you're looking for a great Realtor who is knowledgeable, especially about East Nashville & Inglewood, then visit him at www.MicahPhillips.com and tell him I sent you!

In the meantime, I've been helping some friends remodel their homes and having a great time. May God Bless you in your transitions.

If you need anything, let me know. I'm still here and I'd love to connect you with the resources that you need for whatever season you are in.

-Peter

Home Styles and Fashion Collide

2008-11-29T10:02:00.004-06:00

I was reading an interesting article in October’s issue of Old House Journal about various styles of homes that have been introduced over the past century. I thought it was interesting that you can often tell when a home was built just by looking at it’s main design. I'm not sure this is true today.

Century of Home Styles
At the turn of the century we had grand Victorian homes followed by the simpler Bungalows or quaint Tudors. In the wartime 1940’s we built lots of bare-bones matchbox homes in subdivisions and later graduated to the knotty pine and vibrant tile bathrooms of the 1960’s.

Things went cheap again in the 1980’s as quality was replaced with quantity evidenced by streets of new homes filled with carpet & vinyl. Homes just got bigger in the 1990’s as the McMansion’s became popular.

Now- Mix and Match
So what about today? I won’t go into all the new building materials and techniques that have become less expensive and longer-lasting, but as far as style, it’s a pluralistic time where many different styles are very popular.

For example, there are brand new subdivisions filled with Craftsman-styled homes and others that are completely contemporary. Still, there are others built for economy that are still filled with carpet and vinyl.

My Fashion Sense
The clothing fashions these days seem to be following this trend. I not really into cutting-edge style, but I have noticed that there are many different trends that have made a comeback, from the thick-rimmed glasses to the colorful dresses from the 1960’s.

The point is that we all have individual tastes and needs. We’re living in a time where this individuality is celebrated. It’s become cool to be unique. Whether it’s your home or your jeans. People want to have their own style.

When it comes to homes, I think this is great. I’ve always loved variety and I enjoy having clients looking for a Bungalow in East Nashville and others looking for a modern condo in Germantown.

When looking for a home you first should consider the needs you have for space and function. After that, there is a wide range of options depending on which neighborhoods you prefer and how much you can afford.

Whether you prefer to tight-roll your jeans or cut them full of holes, there’s a house for you!

-Peter

www.NashvilleCityHomes.com

'Collapse' of Home Values?

2008-10-21T16:10:00.002-06:00

I heard a news report the other day that mentioned how people are afraid because of the ‘collapse’ of home values. I thought about this for a moment, but honestly, our home values have NOT collapsed, especially here in the Nashville area.

I guess we have to begin by defining what a collapse would be. I’m not sure I want to think about that, but through 2007 most areas around Nashville were still seeing home prices increase. It’s only been in the past few months that prices have actually decreased.

I’ve noticed the recent change because before the market shifted we would value properties based on the recent sales in the neighborhood. Now, it’s more accurate to look at what’s currently for sale and price the home competitively because prices have generally decreased since those homes sold 3-6 months ago.

So, I admit that prices are less in Nashville, but we’re talking about a few percentage points- nothing like a ‘collapse’. The people that are experiencing the most pain are those who bought at the top of the market and are now faced with a need to sell. It’s similar to those who invested in the stock market when the Dow was 14000 and are now selling.

However, you don’t actually lose money in the market until you sell. If you bought at the top of the market, hang on to that investment. Don’t buy high and sell low if you can help it.

The market will come back. I’m not sure when, but historically it always does. It also always goes up much more than it comes down. If you see your home as a long-term investment, you’ll be fine.

Okay, so there’s no collapse. I’m glad we cleared that up.

-Peter

P.S. Another myth is that the supply of homes is way up. Not true for single family homes. Read more here.

www.NashvilleCityHomes.com

Get Your Pumpkins In Inglewood

2008-10-20T06:02:00.007-06:00

It'’s that time of the year when the air gets cooler and leaves start piling in my yard. It’s also about the time my wife pulls out all the cinnamon candles and we start thinking about the holidays. With three kids under 4 years old, getting pumpkins has become a yearly outing.

Last year we went to a huge pumpkin farm south of Franklin that had a petting zoo and lots of kid’s activities. It was great fun, but this year we wanted to stay closer to home.

We found a great place over at Dalewood United Methodist Church in Inglewood near the intersection of Stratford and McGavock. My kids ran all over the place and we got some nice pictures. The church gets their pumpkins from a Navaho tribe in New Mexico, supposedly the “best in Nashville”.

I’m not sure my kids care that much, but they do look like nice pumpkins. I mean, most of them were round and orange…

They’re only available for a couple of weeks so go check them out!

-Peter

www.NashvilleCityHomes.com

Less Homes on Market Than Last Year?

2008-10-15T12:33:00.002-06:00

I saw some interesting stats today. The Greater Nashville Association of Realtors (GNAR), reports that 15,053 residential properties for sale at the end of September 2008, compared to 15,438 at the same time last year. So there are actually less homes for sale this year. (This figure doesn't include condos or multi-family.)

This really surprised me because homes are taking longer to sell. GNAR also reports that around 250 less homes sold in September 2008 compared to a year ago.

The major increases in inventory have been in the farms/land/lots category where there are 38% more to choose from this year. Generally, more inventory (or supply) means that prices fall due to overstock.

So what does this mean? Why are things taking longer to sell, but yet the inventory isn’t piling up? Here’s my opinion: people that don’t have to sell, aren’t. Instead of leaving their homes on the market or dropping the prices to get them sold, people are just waiting. It seems that the majority of homes for sale out there today are owned by sellers that have to sell them- banks, developers, builders and people relocating or facing foreclosure.

The difficulty in this ‘buyers’ market is that many buyers are waiting too! They are watching the news and scared to make any moves that might put them at risk. I tend to believe that there is quite a bit of pent-up demand out there- people that would really prefer to buy or sell but are waiting for one reason or another.

The housing market tends to move slowly compared to the yo-yo stock market. It’s often hard to know what’s going on until it’s behind us. Once confidence is restored and people feel like there is some solid ground to stand on, I think they’ll jump off the fence they are waiting on.

Thinking about jumping? Give me a call! :)
-Peter

www.NashvilleCityHomes.com

Walden Open For Business in East Nashville

2008-10-08T09:34:00.003-06:00

I got a chance to see some of the condos in the new Walden Development the other day and I was quite impressed. They advertise it as a 'true mixed-use' development and that's what makes it so cool. They are building a live/work community and already have the requisite coffeeshop, Ugly Mugs Coffee and Tea, and the Fresh Blends Smoothie and Juice Bar with more to come.

Walden is located on Eastland Avenue at Chapel Ave between the Lockeland Springs and Eastwood Neighborhoods. There is a main entrance for business patrons, but condo residents will like the more private second entrance which allows you to park a few steps from your front door on the back of the building. Even though they are on the second floor, there isn't an long flight of steps to get to your unit.

Having seen many of the condo projects around town, this one will really appeal to someone wanting to live in a pedestrian friendly neighborhood, close to restaurants like the Rosepepper or Eastland Cafe and still be only a few minutes from downtown, universities or music row.

The units themselves are high-quality with polished concrete floors, high-end quartz countertops and designer everything. It's not like some of the other condos around town that might have a great location, but the cabinets are low-grade. These are consistent from the impressive glass-tiled backsplashes to the marble topped vanities.

The prices start at $184,900 for a 712 sq. ft. 1 bedroom to the incredible corner residence above the coffeeshop with 1518 sq. ft. and 2 bedrooms for $339,900.

East Nashville has made some major progress over the past 5-10 years, but with projects like this and Martin Corner underway, it appears that things are just beginning for this growing neighborhood. March Egerton, the developer for Walden, has many more plans for the site, beginning with the adjacent building that may soon be overhauled to become home to more commercial space.

If you are looking for your place in Nashville give me a call.

-Peter

www.NashvilleCityHomes.com

Funny Way to Sell A Home

2008-10-02T05:04:00.005-06:00

I saw this picture yesterday on a new listing and just had to share it. It made me laugh out loud:

The caption:

"Iron bars on windows for safety, and they also look great!"

I'm not sure I know anyone who truly appreciates the beauty of iron bars covering your windows. It seems that most people overlook this simple improvement that could make your home more secure as well as beautiful and attractive... :)

-Peter

www.NashvilleCityHomes.com

What are They Doin’ With My Money Now?

2008-10-01T04:20:00.005-06:00

The government is trying to come up with some kind of plan to rescue (or bail out) failing mortgage banks and investment firms with billions of dollars of taxpayer's money.

I hesitate to write this because I’m neither an economist nor a politician, however, the banking problems on Wall Street are on everyone’s minds and there is a lot of confusion and misunderstanding. I’ve been trying to read up on it because, as a Realtor, I’m expected to know what’s going on, right? I try… The news is changing so rapidly right now that it’s hard to keep up. Let me give a couple views of what’s happening…

BACKGROUND
Throughout the ‘good times’ of the last decade there were a couple trends going on. It became politically correct to encourage broader home ownership. The Community Reinvestment Act was revised in 1995 to require Fannie Mae & Freddie Mac to devote a percentage of their lending to support affordable housing. In effect, these new rules loosened loan qualifications to allow more people to become homeowners. This was supported by nearly everyone involved because it meant that more homes were selling, more loans were made, and more people were buying homes. It worked as long as home prices continued to rise.

Once housing markets began to slow down and prices started to fall, many of these homes were no longer worth what was owed for them. If the homeowners didn’t keep paying, then the banks were stuck with homes that they could not sell. What was an asset became a liability.

The core of a bank’s business is loaning money, and when their assets are worthless, their ability to loan funds is gone. Therefore, some of these banks are failing. When this happens in large numbers, the government gets very nervous and wants to do something.

BAILOUT TIME?
So, Congress is trying to come up with a plan. The most recent proposal was a $700 Billion ‘bail out’ that would buy up these ‘assets’ that the banks cannot sell to anyone else. This is the core purpose- to take these lousy home loans off of lender’s books. The loans are no longer liquid and no one knows what they are really worth.

Some people are saying that the government could make a profit down the road by buying up these assets and selling them later. This is a possibility, but there aren’t many people that would say that we want the government investing our tax dollars in this. The real goal of the bail out is to stabilize the financial ‘crisis’ so that consumer confidence can be restored- a key factor in the recovery of the housing market or stock market.

If the government does buy these questionable mortgages, it is likely that they will also initiate some kind of ‘work out’ plan to help reduce the number of foreclosures and get homeowners set up with payments that they can afford. After doing this, they hope that the number of mortgages headed toward default would decrease.

ANOTHER VIEW
Some economists say that the banks should be allowed to file bankruptcy. Jeffrey A. Miron, writing for CNN, shares this point of view. He writes, “Bankruptcy does not mean that the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a business that remains profitable.”

Miron also calls the talk about the economy collapsing “ridiculous scare-mongering”. He contends that if these ailing banks go under, then some other company will step up to make the loans as long as there is profit to be made.

FEAR DRIVING DECISIONS
Dave Ramsey, personal finance guru and syndicated talk show host, has his own plan that he’s calling the “Common Sense Fix”. He says that fear is driving a lot of decision-making going on and this is only heightened because of the election and current political climate.

Ramsey’s one page plan includes three things: 1. Provide government-backed insurance for sub-prime mortgages (with strings attached to help restructure delinquent loans), 2. Change the Mark to Market accounting rules and 3. Remove the capital gains tax completely- flooding the market with investor funds, not taxpayer dollars.

It’s clear that there is a lot of fear out there. It appears that our financial systems were built on shaky ground, which is a good reason to be a little skeptical right now. Who do we trust in a time when everyone seems to have political motives or a company to save? Can the same people that guided us into the mess now fix it?

CLEANING HOUSE
Hopefully, the net result of this complex situation is that we do find a solid footing for our markets and restoration of our confidence. Whenever you clean house, it usually gets messy before things get organized again. That may be what we’re experiencing right now.

-Peter

www.NashvilleCityHomes.com

Nashville- One of Ten Least Expensive for Home Ownership

2008-09-30T08:26:00.004-06:00

A recent article by Forbes has given us the ten least expensive places to own a home with Nashville in sixth place. Cleveland was the cheapest in their report, but it lacks our Southern charm and the Bluebird Cafe, right? :)

Most of their analysis on why cities are more expensive is based on amount of land that the city is confined to. Expensive places like San Fransisco and New York are geographically trapped so their home costs continue to rise. In Nashville, prices have risen, for the most part, but there is plenty of land around the city to expand to, and we are.

If you've been to any of the surrounding counties around Nashville then you've seen this expansion. Whether it's Murfreesboro, Hendersonville, Franklin, Lebanon, or even Dickson, there are new subdivisions and major shopping developments going in everywhere. The controversial new interstate 840 connects many of these outlying areas. (New interstates are always controversial, aren't they? Who votes to build one through your neighborhood?)

All this is happening while downtown is also seeing more demand. I'm amazed how the skyline has changed just in the past few years as new condo residences have come to Midtown, SoBro and the Gulch, as well as all the nearby historic neighborhoods are being overhauled with lots of home renovations and new commercial districts. Most notable are popular areas like Germantown and East Nashville.

I'm glad that we can have such a vibrant city to call home and it's also one of the most affordable in the nation. Like any market we have our ups and downs, but the trend is a healthy upward one with lots of exciting new things to look forward to and enjoy along the way.

-Peter

www.NashvilleCityHomes.com

Update on 800 Main in East Nashville

2008-09-23T06:49:00.008-06:00

In May, I shared some news about a couple developments coming to the Main Street corridor in East Nashville. I recently heard an exciting update regarding the 800 Main development which may be a major step toward revitalizing this stretch of Main Street that leads into East Nashville.

The plans for 800 Main will replace the current Bank of America building with new structure containing 25,000 square feet of retail space on the first floor, with around 330 rental units in the top three floors.

Many of the units, ranging from 1 to 2 bedrooms, will border small courtyards in the all brick building made to complement the historic roots of the neighborhood. The Tennessean reports that they are hoping to break ground next spring and finish by Summer 2010.

The Nashville Business Journal expects rents to range from $830 to $1800 per month. Not exactly cheap, but there is a rooftop pool and clubhouse included, as well as off-street parking.

Another exciting part of this project is that they may actually get it done. The main developer, Double A Development, completed the District Lofts in Germantown earlier this year. Their partner, Lane Company was part of the huge project in Atlanta called Atlantic Station.

-Peter

www.NashvilleCityHomes.com

Doral Country Condos- Affordable West Nashville

2008-09-22T09:13:00.005-06:00

West Nashville is in high demand these days. Overall, it’s the priciest part of town, though there are sections that are more affordable. Bellevue is one of these pockets, but even within Bellevue, single family homes tend to start in the $170k’s and go up from there. If you don’t have that much to spend, you might check out the Doral Country Condos.

I got to know the Doral Country development over the past few weeks as I had a client purchase one last month. For a little more than $100k she got a 2 bedroom, 2 bath condo that was in great shape after some deep cleaning. There are several currently listed between $110-140 in varying condition and size. There’s even a HUD home for sale at $89k, which is a great price for West Nashville.

The Doral Country Condos are off Bellevue Rd, just south of Highway 70S near the Bellevue Center Mall. The development is a little older, built in the late 70’s, but they have an active homeowner’s association that keeps them in great shape. Most of them have just been repainted and received a new roof.

The people I met throughout the neighborhood were incredible and very helpful. My client’s neighbor even came over to help her install a dishwasher. Many of the neighbors have been here for a very long time with no plans to move.

One other nice thing about these units is that they are all attached to only one neighbor. No residents above or below you, only on one side. They each have their own off-street parking pad and a patio in the back. Some of the patios have privacy fences, which makes a great space for grilling and outdoor living.

There’s a pool and tennis court if you want to stay active outside and the homeowner’s association fees are around $190 per month. This includes all the yard maintenance and the exterior of your unit as well as upkeep of the pool/tennis courts. So, if your roof leaks it’s not your problem, you call the HOA. If you like grass, but want someone else to mow it, this might be the place for you.

Someone looking for his or her first home, or a great community to downsize to, might want to check out this development. It’s hard to beat it for the money in West Nashville.

-Peter

www.NashvilleCityHomes.com

Who Cares About Staging and Curb Appeal??

2008-09-18T05:39:00.002-06:00

Answer: You should if you are selling a home today.

A buyer’s market is a staging market. Buyers are picky and looking for value. Staging helps set a home apart and make it look more 'valuable'.

Staging is the process of de-cluttering your home and showing off the home in the best possible way in order to maximize the sales price. Loads of research show that it works and will actually help you sell for more money!

STAGING BEGINS AT THE STREET
Curb appeal is a big deal. It's the first impression that a buyer has of your home. The entire purpose of improving the curb appeal is to get a prospective buyer inside the home. If the front of the home is in bad shape and needs work then you’ve got a problem. People will skip it!

In home buying, people tend to judge a book by its cover, meaning if the front is unappealing, then they assume that the inside is just as bad. They may never get to see your completely renovated kitchen, because there is no landscaping and the sidewalk needs repair. They’ll move on to the next home down the street.

POLISH THE ENTRYWAY
Whenever a Realtor is showing your home they will pause for a minute at the front door to get the key out of the lockbox. While they are waiting, buyers will take a good look at the entryway. Make sure it gets some attention whether it’s a fresh coat of paint or repairing a loose handrail. Of course, don’t forget the welcome mat!

From there, think about the buyer’s experience and spend your time accordingly. De-clutter the entire home and start packing now. Think of your home like a nice hotel suite or a model home. Put away the family pictures and clean out the closets. Dust everything and change the air filters. You may even need to get a storage unit to get the stuff out of the house. (Yes, it’s that important!)

The kitchen and baths are usually most important so make sure they shine. Do some deep cleaning and clear off the countertops. Caulk the bathtub and buy a fresh shower curtain. Remove any odors that may be offensive, especially smoke and pet odors.

The idea is to lead a buyer through a home letting them imagine themselves living there, with nothing distracting to break the ‘spell’. If you can get a buyer ‘emotionally attached’ then you home will be sold!

I started by saying that a buyers market is a staging market. To get your home sold it MUST stand apart from the competition. Pricing your home is all about location and condition. We can’t change the location, but anything that you can do to improve the condition may be the difference between selling and not.

-Peter

www.NashvilleCityHomes.com

Discover Nashville's Farmers Market

2008-09-16T09:44:00.007-06:00

Since the early 1800's the Nashville Farmers Market has been a source of a variety of fresh foods, much of it grown locally and picked just days ago. If you are into food, and most people are, then you might want to check this place out.

My family made the trip out there last weekend. I've got three kids and they all seemed to enjoy exploring the aisles of different veggies like cucumbers, squash, corn and melons. We had to watch our budget because it all looked so good!

The market is divided into three parts. The north end contains a flea market section, the center is called the Market House and on the south side are the farm sheds. It's quite a place, especially this time of year when so much food is in season.

If you are looking for prepared food, then you have to visit the Market House with it's many specialized vendors. The variety continues ranging from Southern fried chicken or bar-b-que to po'boys, gyros and Jamaican jerk chicken.

The attraction of the Farmer's Market, especially in a day where more people are preferring organic or locally grown food, is widespread. It has become a main selling point for nearby Germantown, Hope Gardens, Buena Vista or other North Nashville neighborhoods that border the market as well as adjacent Bicentennial Park.

Growing up on a produce farm, I have my own memories of picking sweet corn and strawberries each summer. Much has changed since then, but there's still nothing quite like some fresh food straight from the farm.

-Peter

www.NashvilleCityHomes.com

Inspection Contingencies 101

2008-09-04T05:34:00.003-06:00

For home buyers, the inspection is the time when you look deep into a home's 'eyes' and see if you want to go further in the relationship. For Sellers, it's often full of anxiety, wondering what problems lurk around their home, or how 'alarmist' the home inspector will be. Standard real estate contracts all have 'inspection contingencies' these days, let's take a closer look at this section of the contract.

First, remember that everything is negotiable up front. Typically, sellers expect there to be an inspection, so this isn't usually a point of contention. Buyers will ask for a certain length of time to perform all inspections and let the sellers know their response. If they've asked for a 10 day inspection period, then the buyer's have 10 days to do the home inspection and any follow up inspections such as getting a mold report or a contractor's estimate for things that came up.

When they are ready to respond, the buyer has three options:
1. OPTION 1: Terminate the Contract- I always include this option for my buyers because I'd hate for them to get stuck if the inspection is terrible. The buyers will get their earnest money back and head off to look for another home.

2. OPTION 2: Accept the Home "AS-IS"- This is the desired outcome. It's always nice when there are no inspection surprises and the buyer can happily move forward. With most of the bank-owned properties, this will be your main choice unless you want to terminate. Banks are not interested in doing any repairs whatsoever.

3. OPTION 3: Renegotiate /Ask for Repairs- The usual contract offers this option where the buyer can send a list of requested repairs to the Seller. If the cost of the repairs is above the previously agreed upon repair costs, if there were any, then it's time to renegotiate. Depending on the nature of the work to be done and other circumstances, we can negotiate not only repairs to be done, but perhaps ask the seller to pay closing costs "in lieu of repairs" or even reduce the sales price. It all hinges upon how important it is to the buyer and how motivated the seller is to sell. Things can get messy at this point, but we are usually able to find an agreeable solution.

This is just a simple overview. Inspections and negotiations can get complex sometimes. I always try to help my clients understand what's going on each step of the way. Once we get past the inspections, the focus is on getting the transaction closed and keeping things on track.

My advice: Don't skip the inspection. You always want to know what you don't know about the home you are purchasing.

-Peter

www.NashvilleCityHomes.com

How Much Will I Make Selling My Home?

2008-09-02T06:06:00.001-06:00

One of the trickiest parts of my job is to help a seller understand how much money they’ll make at the closing. We call this the Seller’s Net Sheet. It’s tricky to come up with because I’m not a closing attorney, and it’s difficult to nail down all those pesky fees ahead of time. However, this tool is very helpful in comparing various offers and helping the seller get a grip on how the monies were disbursed. Let’s take a closer look…

In putting together a Seller’s Net Sheet we start with the Purchase Price. This is sometimes called the “Gross” Sales Price. Next we subtract all the items that the Seller has to pay for at closing. Here are some of the more common ones:

Commissions- The Realtor's commissions are negotiated at the time of listing and is usually a percentage of the Gross Sales Price. Part of the amount, usually half, goes to the listing agent and the rest is paid to the buyer’s agent.

Title Search/Policy- For each transaction, a title search is performed to ensure that the title if free of defects. If the title search is satisfactory, a title policy is issued to protect the buyer against future issues that may arise with the title to the property. The cost of this is based on the purchase price. For a $150,000 property, the title insurance will cost around $800. This varies so when I’m doing a net sheet I just call the title company to get the amount from them.

Buyer’s Closing Costs- It is quite common these days for the Buyer’s to ask for the sellers to pay some of their closing costs. It may be a set amount or a percentage of the price. Most loan programs limit this to 3% of the purchase price.

Down Payment Assistance- Through down payment assistance programs, charities like Nehemiah and Ameridream may pay a portion of the buyer’s down payment. For this to happen, the seller is asked to contribute to these charities. We have to subtract this amount from the sales price as well, not forgetting any ‘processing’ that the charities charge, usually an extra $500. (Note: These programs are set to disappear soon with the latest housing legislation that congress has passed.)

Closing Attorney’s Fees/ Doc Prep Fees- These vary depending on your closing agency, but is usually around $250-300. You might also encounter some smaller $20 fees for overnighting paperwork or wiring monies for your loan payoff, as well as courier fees to get the documents to the Buyer’s closing attorney.

Property Taxes- In Nashville, these taxes are paid in arrears, meaning that they are due at the end of the period. Therefore, at the closing, the sellers will pay their portion of the property taxes to the buyer, who will pay all the taxes for the year at a later date. In effect, each party pays their share of taxes for the time they own the property. For sellers who aren’t expecting this, it can be an unexpected surprise at closing.

Mortgage Payoff- It’s good to have an estimate of your mortgage payoff, which is usually found on your monthly mortgage statement. If you need a more accurate amount, you can call your lender, however, remember that interest is charged daily, so the amount will change every day. Don’t forget to include any second mortgage’s that you may have on the home.

Other Fees- There can be many other items negotiated as part of an offer. Items like termite inspections and home warranties are the most common.

After subtracting all of these items from the Purchase Price, we should have a good estimate of the “Seller’s Proceeds”. This is the amount of the check that the Seller should get from the closing attorney after the transaction closes.

It’s a learned skill to do a net sheet. I’m proud to say I had a closing last week that was within $100 of the estimate I gave to the Sellers. Even still, I get nervous every time I’m doing a net sheet because if my numbers are off, you can bet that the sellers will let me have an earful about it!

-Peter
www.NashvilleCityHomes.com

Surprised by Overwhelming Quality

2008-08-29T04:37:00.015-06:00

I see a lot of homes. Lately, most of my clients have been looking for their first home. It’s often like looking for the ‘needle in the haystack’ as their expectations are quite high and the budget is quite low. Many of the homes we see are in pretty bad shape, but eventually we find one that is the perfect mix of location, price, and condition to fit their needs. So, after a few weeks of starter homes, I was blown away yesterday by surprise in Sylvan Park.

I was helping a friend named Chris Barber who is an incredible custom woodworker. He takes wood and turns it into art that is also a usable piece of furniture or woodwork for your home. He had made a large wine rack for a client and asked me to help him lift in into this client’s loft.

It was early in the morning and I was just helping a friend so I wasn't expecting what we would find in this tiny home that looked like a detached garage behind a Sylvan Park Victorian. I was completely caught off guard as we stepped inside.

Most home I see, it seems, are at varying levels of 'livable', with some described as 'fully renovated'. Even then, not many homes fall into the department of custom designed showplace. That was the case here.

What shocked me was the level of custom details throughout the place. Everything was tailored and hand-selected to make the home feel like a lodge that was nowhere near Nashville.

The work was the highest quality and well done. They had completely gutted the home, raising all the ceilings leaving some beams exposed and built a gorgeous stone fireplace as the centerpiece of the living space.

You could tell that that the home was designed to someone's particular taste, which is what made it so great. It wasn't bland and vanilla, nor was it over-the-top. It was just right.

The kitchen was no less amazing. Chris had custom-built all the cabinets, which feature reclaimed pine to match the mantle that he built. Professional grade appliances mixed with neon whiskey signs and a 6-foot wood carved grizzly completed the décor.

I'm not sure what affects me when I see homes like this. It happens to me every once in a while, but I never really see it coming. I think it's related to the artistic aspect of the home. When someone has a true eye for design and the money to make it happen, it is a wonderful thing.

It was a space that I didn’t want to leave. Again, I’m reminded of how we are affected by the environment we live in. I left inspired to work on my own home, but it will never feel like a lodge in the Rockies…

-Peter

www.NashvilleCityHomes.com
Check out Chris Barber’s awesome woodworking skills here.

Finding House Parts in Nashville

2008-08-28T05:07:00.009-06:00

When renovating our 1920’s Bungalow over the past few years, I had to find places other then Home Depot and Lowes to buy house parts that looked like they belonged in a home this old. You can buy the paint and caulk at these stores, but where do you go when you need an old wood door, or a fireplace mantle? Here are some suggestions:

Habitat For Humanity Home Store, 1001 8th Ave South
Habitat runs two stores that are only blocks from each other. Both stores have new/used items that were donated to be sold so they can raise money to build more Habitat Homes. This store, on South 8th has home/office furnishings like filing cabinets, light fixtures, textiles, mirrors and more.

Habitat For Humanity Home Store, 908 Division Street
This store is packed with hundreds of old doors, windows and all kinds of building materials. You can also find kitchen cabinets, bathroom fixtures, paint, flooring and more. The best stuff goes quickly, so you might need to come back often to see what you can find. They post some of their items online so click here to see what I’m talking about.

Hailey’s Salvage & Building Material, 1224 Dickerson Pike
Tons of building materials salvaged from demolitions and renovations. Find clawfoot tubs, vintage sinks, ornate mantles and fireplace surrounds. Might be a great source for items for your rental property. Free tip: Bring the pickup when you go.

Preservation Station, 1809 8th Ave South
After you buy doors at the Habitat Home Store, this is the place to go to buy your antique hinges and doorknobs. They also carry a variety of old doors and light fixtures. This is not a discount store. They carry architectural antiques, which means they are pricey and rare. When you’re looking for that perfect chandelier for your 1905 Victorian home, this is the place to start. They also buy items if you have any antique house parts to get rid of.

Okay, that’s my list. Be careful, though. It’s very easy to find something at these stores that you love, but you don’t really have a place for. You may end up renovating your home just to have a place to put it…

-Peter
www.NashvilleCityHomes.com

Coffeeshops Across East Nashville

2008-08-26T05:35:00.003-06:00

Is there some correlation between number of coffeeshops and the health of a real estate market? I remember in 2003 when my wife and I were purchasing a home in East Nashville, we felt much better about the decision after we found the Bongo Java down the street.

That may seem shallow, but I know that you coffee drinkers out there understand.

There are now many more coffeeshops across East Nashville, which may show how this addiction has spread, but in many ways also represents the growth of the neighborhoods to a level that support these business and the many others that have opened in just the past few years.

To review our current coffee options in East Nashville:

Bongo Java East, 107 S. 11th St. (At Five Points)
Portland Brew, 1921 Eastland Ave
Ugly Mugs Coffee & Tea, 1886 Eastland Ave (Walden Development)
Sky Blue Coffee & Bistro, 700 Fatherland Street (Edgefield)
Sip, 1402 McGavock Pike (Riverside Village)

I won't give my reviews of them. Let's just say that I like the variety and hope they can all stay in business for years to come.

-Peter

www.NashvilleCityHomes.com

7 Things to Look For in a Home Inspector

2008-08-18T06:44:00.003-06:00

Over the weekend, I heard someone describe my favorite home inspector as “alarmist”. Now I could see how you might get that impression, but I wouldn’t use that word for him. Alarmist has the connotation that he blows things out of proportion. Instead I would call him very thorough.

The discussion made me think about what makes a good home inspector. Believe me, you want a good one- and you often won’t know what was missed until you own the home and you ask yourself, “Why didn’t this come up in the inspection?”

Here are some things to look for…
1. Experience- The best inspectors have done hundreds, if not 1000+ inspections. They’ve seen about everything and they are passionate about houses.

2. Licensing- Typically in Tennessee the home inspector needs to be fully licensed. You can't just have a friend look the home over for you. To negotiate repairs under the typical inspection contingencies the inspector must be licensed.

3. Report- Mainly, you want to see a good summary of the issues that need to be addressed. Some inspectors will provide you with a fancy multimedia report. One inspector I know even shows you a PowerPoint slide show at the end of the inspection, giving you a visual tour through the home’s issues. This may be overboard, but having some pictures in the report of the major issues is standard and very helpful in visualizing some of the problems that are difficult to see, especially in attics and crawl spaces.

4. Thoroughness- The best inspectors will ‘leave no stone unturned’. In other words, they’ll squeeze into tiny attics and crawl spaces to make sure they don’t miss anything. This is so important. I’ve had at least two instances where major issues were found in homes only because my daring inspector went into small spaces that other inspectors might skip and call “inaccessible”. This might actually build the case for hiring a skinny inspector, but I’ll leave it at that! In the end, the buyer should have a detailed and possibly lengthy analysis of the home. I always say that you'd rather know up front what you're buying than find out later.

5. Passion- My favorite home inspectors will take the time to talk with my client about the issues. They have a teaching spirit and strive to help the buyer understand how homes work and what problems in the report are big concerns and which ones are more commonplace and can be lived with.

6. Non-Alarmist- Some inspectors, for whatever reasons, do tend to go overboard and scare home buyers more. For example, I had one inspector who was telling us how unlevel the floors in a home were (which we knew). He actually pulled a marble out of his tool belt and let it roll across the room to emphasize how bad it was. He also made a big deal about some smaller items that weren’t up to codes even though this home was built in the 1920’s. After a while, it’s hard to know what items are actually concerns, and which ones are found in every home in the neighborhood. A great home inspector will make this distinction for you.

7. Price- This barely made my list, because the prices for different inspectors doesn’t vary that much, but if you know of several good ones, it might vary as much as $100, and be worth checking out. BTW- inspections are almost always paid for at the time of inspection, not at the closing. Most will take a personal check and often credit cards as well.

If you’ve read this far, you might as well just give me a call for a referral for a great inspector. I try to go on all my buyer’s home inspections, and I have seen all kinds of homes. Even the best homes have issues to repair or keep an eye on. If you’re buying a house, please have a home inspection and get a good one!

-Peter
www.NashvilleCityHomes.com

The Sellers Are All Banks!

2008-08-14T04:29:00.004-06:00

Okay, not ALL the sellers are banks, but some days it seems like it. Yesterday, I showed six homes to one of my incredible buyers and half of them were bank-owned. It's a dynamic that is definitely a change from a couple years ago. Working with a bank to purchase a property is a little different than negotiating with a human. Here's what to expect:

1. Banks are not 'emotionally attached' to this property like normal homeowners may be. They are mostly interested in the bottom line net sales price and how quickly they can get it off their books.

2. In my experience, banks are not as 'desperate' as most buyers seem to expect. They are not likely to take an offer of 10% off the list price under most circumstances. If they were that motivated, they would have dropped the list price. They may be negotiable on price, but we'll have to go back and forth a few times to hash it out.

3. Typically, we'll write up the initial offer and send it to the bank's listing agent. They will then log into the banks online system and input the info from the offer and hit 'send'. We'll then wait a couple days and get a verbal counter offer. In one transaction I was working the listing agent said that she didn't even talk to anyone at the bank about the offer. It was all done through email. After the bank counter-offers we generally work out the details verbally.

4. Once all the terms have been agreed on verbally, the bank will send us a packet of their addendum. Often this is longer than the initial offer and will spell out all the terms. As one recent client rightly pointed out, the language is more bent toward the bank. I'm sure they have a team of lawyers that came up with it to protect them. We'll read it over very carefully! After we sign the addendum the listing agent will often have to overnight them to the bank's asset manager to sign and send back. Once the bank has signed off, you then have a binding contract.

5. Within the bank's addendum will be several pages telling you that they absolutely do not warrant anything about the property and that you are taking it "AS-IS". Of course, it is highly recommended to do a home inspection and make sure you know what you are buying. These properties are often in rough shape with the utilities off, so the inspections are an important step.

6. Because they are selling "AS-IS", don't expect them to fix anything that comes up in the inspection. You may be able to renegotiate the price or something, but the bank isn't likely to spend money repairing the HVAC.

Bank-owned properties can be a great value because:
A) Often these properties are on the market for less than the previous owner paid for them in the last couple of years. For example, I saw a great home in Madison yesterday that was built in 2001. Someone bought it in 2006 for $131k and got foreclosed on. Now this home is listed at $115k and still in great shape. In this case the next buyer should have some great equity when the market comes back. I see this dynamic all the time.

B) They may have a smaller pool of potential buyers because of the rough, AS-IS condition that most of these homes are in, and because the banks will often ask for a large earnest money check with the offer. That home in Madison required a 2% earnest money check or around $2500, weeding out some buyers.

It would be interesting to see how many homes in our housing inventory are bank-owned an how that has affected supply and demand. It seems like the human sellers that don't have to sell for some reason are waiting for the prices to go back up. I don't blame them for that, though I look forward to working with the humans again soon...

-Peter

www.NashvilleCityHomes.com

East Nashville Market Snapshot- July 2008

2008-08-07T05:33:00.001-06:00

We had 39 home closings in East Nashville for July at an average of $135 per square foot. Three homes sold over $400k with the top sale being 1209 Holly Street at $555k. The average days on the market were 74.

To put this in perspective we had 58 closings in July 2007 at an average of $119 per square foot. The average days on the market were then 56 days.

Comparing these we again see the trend of rising prices per square foot with fewer homes selling. This may just be the effect of buyers being picky. The homes in the best condition and location are getting picked, while those needing work or funky floor plans wait on another buyer to come along.

This is a different dynamic for East Nashville than a couple years ago when there were fewer homes to select from and buyers felt confident that prices would continue to rise and protect their investment. Today, you need to list your home in the top third of your market for condition and the bottom third for price.

In this type of market, it’s extremely important to do as many repairs to your home as you can, clean it thoroughly, then stage and de-clutter before listing it. It may be the difference between it selling and not.

-Peter
www.NashvilleCityHomes.com

A Closer Look At PMI

2008-07-29T14:45:00.005-06:00

PMI stands for private mortgage insurance. No one really cares about it until it's time to get a mortgage. If you aren't putting down at least 20% expect to see a PMI charge as part of your payment each month. It's basically like paying an extra 1% of interest on your loan per year.

Why would anyone do that?!

The banks require it. In the olden days, buyers HAD to have a decent down payment so that the banks felt comfortable loaning the money. In order to increase their business the banks figured out a way to offset this risk to an insurance company that insures them against default. Of course, the buyer has to pay for this.

Note that I said, "insures them [banks] against default". This will benefit the banks, -not you, the borrower. If you default, the PMI company may cover the bank's losses, but they can then come after you for the money unless the bank has forgiven the loan.

I was meeting with a seller the other day who thought the whole thing was crazy. He said, "The banks think we can't afford $1100 a month, so instead they charge PMI, increasing the total payment to $1200 a month! That doesn't make any sense!"

He's right, but having PMI was the only way that the bank would have made this loan. It was figured into the payment from the beginning and without it, he might still be renting.

The good thing is that Federal law requires PMI to drop off after you have at least 22% equity in the home. You can also be proactive and get them to remove it as soon as you reach 20% equity in the home. Contact your lender to find out how they handle it. If you've made improvements or had substantial appreciation you may be able to have the home appraised to show the increase in equity and get the PMI removed.

Please note that I am not a mortgage guy so check with your lender to better understand your exact situation and how PMI affects you.

-Peter

www.NashvilleCityHomes.com

Making An Offer With an FHA Loan

2008-07-24T05:12:00.002-06:00

With the changes in the mortgage industry many home buyers are turning to FHA Loans because they still offer the opportunity to purchase a home with little or no down payment. There has been a noticeable increase in buyers using FHA even among my own clients.

The problem is that there are a lot of misunderstandings about how this works, some of which I addressed in my article, "Myth-Busting FHA Loans...". Today I wanted to talk about how to structure an offer when you're using FHA.

Two main questions-
1. Should we ask for the Seller to pay for some or all of your closing costs?
2. Do we need to ask the Seller for down payment assistance?
Both of these items are built into the offer, often on raising the sales price so that the bottom line is still agreeable to the Seller.

Closing costs are extremely common to ask for. The costs vary, but most programs will only let the Sellers pay 3% of the purchase price toward your closing costs and prepaids. This will save you (as the buyer) some out-of-pocket cash and basically let you roll these fees into your loan. We want to make sure to include this in the offer.

The misunderstandings come when we're talking about down payment assistance. Currently, the Seller can contribute to a 'charity' such as Ameridream which, in turn, will contribute toward the down payment. There are rumors that new legislation in congress will change this, but for now, it's still happening. (Read how it works here.) It's best to talk to your lender about this because often then banks will have specific wording that they want put in the contract to make this happen. So, in addition to asking for closing costs, we would ask for 3-5% of the purchase price to be paid toward the down payment.

Help the Seller Understand
Often, the biggest hurdle to overcome with an FHA-financed offer is helping the Seller understand it. They often think that the Buyer is trying to be sneaky and take advantage of them. The key is to tabulate all of the numbers and focus on their net proceeds- how much they will make from the sale. It can also be helpful to compare these numbers to how a conventional loan would be handled so they see the differences.

The goal in every negotiation is agreement- a win/win situation. For the most part, Sellers seem open to these type of offers, but it takes a little more time to educate them and build trust. As it becomes more common, I'm sure it will get easier for us all.

-Peter

www.NashvilleCityHomes.com

Nashville Zoo is Worth Checking Out!

2008-07-21T08:40:00.006-06:00

Saturday was a hot one, so what did we decide to do? Spend the time outdoors- at the zoo!

This was my first time at Nashville's Zoo, even though we have a family membership and my wife has taken our kids there a handful of times. I must admit I was impressed. Of course, it doesn't even compare to places like San Diego's Zoo, but for Nashville, it was quite nice. Much more than you can see in one day and keep your sanity.

We came late in the afternoon with the intention of just 'getting the kids out of the house'. It was hot, but there are lots of shady paths were we could find some relief. My son Noah, who is now 4, is a zoo veteran and was our tour guide for the day. He quickly led us to see some exotic birds and monkeys before running ahead to show us the meerkats.

After much pleading from the kids we ended up at the playground, which is a mammoth structure full of hiding places, tunnels and rope ladders. It was awesome, except I had trouble keeping track of everybody. Of course, if I waited long enough, Noah would always find his way down the enormous corkscrew curly slide to find me sunburning at the bottom.

The trip would not be complete without a ride on the carousel, which was thankfully free this evening to zoo members.

Chasing a four-year-old around the zoo wore us out so we'll have to see the elephants and giraffes on another day. If you haven't been to the zoo, it's worth the time to check it out. If you live in Nashville with kids, it's even worth the family membership to get them 'out of the house' once in a while.

-Peter

www.NashvilleCityHomes.com

Germantown Plans and Condos Everywhere!

2008-07-19T08:20:00.005-06:00

I've been touring many of Germantown's cool new developments with a client moving here from Seattle. It's been great to compare the different units and get an intimate feel for how the area is poised for continued momentum. Let me highlight some of my favorites:

Werthan Lofts- Wow! There is nothing else like it in Nashville. A true factory that is being converted into fantastic loft space with tall ceilings and nice views. Even more, they are creating a new community space complete with pool, dog run, bocce ball court and a coming-soon cafe+nightspot in the 'boiler room'. The vibe here is awesome, especially on cool evenings when folks gather outdoors.

Morgan Park Place- Like Werthan, this project is yet to be finished, however, the available units are quite stunning. Lots of upscale finishes and over-the-top efforts in 'green-building'. They've actually received top awards for their energy efficiency techniques that might save you quite a bit when it comes to your monthly utilities.

Row 8.9- This development has been complete for a few years now, but occasionally units come up for sale. It's a "Chicago-style brownstone" development, which means the units are aligned in a row with steps down the street. The units on Rosa L. Parks Blvd have unbeatable views of the capitol and downtown skyline while being literally across the street from the Farmer's Market and Bicentennial Park. All of these for a very reasonable price- lower than most of the other similar units around town.

There are many others to check out if you're interested, and it seems that there is no stopping these developers who are forging ahead in Germantown. The whole neighborhood is full of new condos and historic-looking infill homes built to reinforce the roots of the neighborhood while adding the modern amenities that people demand these days.

Guiding much of the development is a Detailed Neighborhood Design Plan that the Metro Planning Commission put together in 2002. It's quite interesting, especially if you live in the area or are considering it.

-Peter

www.NashvilleCityHomes.com

Gra-Mar Neighborhood in Inglewood is Lookin’ Good!

2008-07-16T06:48:00.005-06:00

I’ve recently become a fan of a somewhat unknown pocket of Inglewood called Gra-Mar. It’s an area full of ranch style homes from the 1960’s, many of which were built on very large lots. Part of the area is dubbed Gra-Mar Acres for this reason.

The neighborhood is just south of Briley Parkway between Ellington Parkway and the railroad tracks closer to Gallatin Road. It extends south to Broadmoor or so.

So what makes this neighborhood look so good these days?

Price- Homes in the area average around $93 a square foot these days, less if the home needs upgrades from it’s 60’s interior. At this price a 2000 square foot family-sized home with 3 bedrooms and 2 baths will cost you around $186,000. A smaller 2 bedroom home will be priced in the lower $100’s. Compared to the rest of Inglewood or East Nashville, this is quite affordable, especially considering the following points…

Lot Size- This is one of my favorite parts- space! Room to spread out a little, and still be 10 minutes from downtown. Many of these homes are on lots of at least half an acre. It’s more to mow, but you don’t have to go to the park to see grass and mature trees.

Quality- Most homes in this area were built in the 1960’s and many were more custom with lots of tile and unique brick exteriors. They are built to last, and most are in great condition with little maintenance.

Neighbors- Homes in Gra-Mar don’t come up for sale that often. That’s because many of the residents have been here for years. They bought the homes to raise a family and they didn’t leave. Driving through, you can tell that people care about their homes and you’ll even get a friendly greeting from people you might meet.

Convenience- As mentioned above, Gra-Mar is conveniently located right off of Ellington Parkway about 10-15 minutes from downtown or Rivergate. You can quickly get to Opry Mills or even the airport by taking the new and improved Briley Parkway.

Upside- At this point, Gra-Mar is an undiscovered area that people are starting to notice as more homes get renovated or come up for sale. It’s super close to the new Inglewood Home Depot as well as the new Wal-Mart Supercenter & more that are being built across from Skyline Medical Center.

If you're looking for a solid home with lots of grass, check out Gra-Mar and some of the surrounding areas. You may need to give it some updates, but it's definitely in a neighborhood that's worth the investment.

-Peter
www.NashvilleCityHomes.com

“Easy to Show”- Music to my ears!

2008-07-10T15:37:00.005-06:00

When I’m hunting down properties to show to buyers I love to see the words “Easy to Show” in the listing. Another good phrase is “Vacant-Show anytime”.

On the other hand, making showings difficult is a good way to keep your house from selling. How about these:

-Make Offers Contingent Upon View Interior
-Do Not Disturb Tenants
-Day Sleeper- No showings before 4 pm
-Agent Must Be Present For All Showings

I know that sometimes the circumstances can sometimes make showings terribly inconvenient, however, please know that putting any kind of restrictions on showings when your home is for sale will reduce the number of buyers that see your home. Even something simple like requiring 2 hours notice.

I also know you can’t always show your home at the drop of a hat, but again and again I’m out showing homes in a neighborhood and the buyers notice one for sale across the street and want to see it too! I hate to tell them that we’ll have to wait and do it another day.

The goal is to make it easy to show, at least as easy as possible.

On a side note, I believe this is even true for investment properties. These are often difficult to show if there are tenants involved. That's understood, but at least try to upload some interior pictures to see it it's worth the hassle to show. Even just a couple pictures of the inside help buyers get an idea of the home and decide to take a look. Without any interior pictures, people assume the worst and skip it. They assume that it looks terrible; otherwise there would be pictures, right?

So, the home-selling lesson for today is…
1. Make it “Easy to Show”
2. Have lots of fantastic pictures

Thinking about it? Give me a call.
-Peter

www.NashvilleCityHomes.com

Good Bones Make a Great Fixer Upper

2008-07-09T14:41:00.002-06:00

I enjoy working with clients who have the passion to take a neglected home and renovate it. Make no mistake, this is a BIG job. It will consume your life if you aren't careful, which is why it's so important to look for good bones.

"Good bones" is a way that people describe the fundamental parts of a home that are difficult and expensive to change. Things like floor plan, room sizes, electrical/plumbing systems, ceiling heights, etc. You can paint and add granite counters to any home, but if it’s missing some of the fundamentals, you may have trouble selling it later.

I was exploring some of East Nashville’s fixer-uppers this morning with a wonderful client of mine. We looked at some that needed hardly any work and others that needed complete renovation. Since I try to attend every home inspection personally and I've renovated a home myself, I’ve learned quite a bit about the systems in a home and where the common problems are. Sometimes I probably point out too many things to my clients, but I want to help them understand what their getting into.

Here are some bones to look out for:

Floor Plan- Watch out for funkiness. Does the layout make sense? Is one of the bedrooms a walk-through? Are there closets? Where will the fridge and dining room table go? Where is the washer and dryer? A home with a great floor plan will be easier to sell down the road.

Structure of the Home- How is the foundation? Are the floors level? Is there water damage? What’s causing it and is it easy to repair? Is the roof in good shape? Is there a basement or crawlspace? Any water problems down there? (BTW- water issues are the #1 killer of a home, reminding us all to clean out our gutters!)

Systems- Are the systems outdated? What about the HVAC? Are there old ducts wrapped in Asbestos tape? Is the wiring grounded? Fuses or circuit breakers? Any knob & tube wiring? Galvanized or copper plumbing? How’s the water pressure?

Location- This should probably be at the top of the list, since it cannot be changed. More than anything else, location will greatly affect the value of the property. Don’t think you can overcome it by dressing up a home in the wrong neighborhood!

Lastly, when you’re considering a fixer-upper, you have to know the numbers going in. What are other homes in the neighborhood selling for? How much money and time will it take to renovate it? How quickly are home selling? What are the trends in the area?

It’s a lot to think about, but when you’ve made a thoughtful choice, renovating a home can be an enjoyable and profitable experience. Otherwise, you may lose your shirt…

-Peter

www.NashvilleCityHomes.com

3 Ways FSBO's are Missing Out

2008-07-08T11:13:00.007-06:00

I was talking to someone this afternoon who is trying to sell their home by themselves without an agent. She said that her main reason for doing this was that they couldn't afford any extra fees for Realtors. They owed too much on the home and were already behind on their payments.

This is a sad story that is happening too often right now. However, I'd say that situations like this are the most important times to work with a Realtor. Especially when the market is slow and buyers are few. Let's examine why I think this seller is missing out...

1. Who knows that her home is for sale??
This is a biggie. She has a sign in her yard. Even if she's on a for-sale-by-owner website, the most qualified buyers- those using a Realtor and needing to buy quickly- are searching the MLS and missing her home. I only knew about it because my client drove by.

Contrast this to how I market homes. Not only are my listings in the MLS with professional pictures and a virtual tour, but it's broadcast to numerous other home home searching websites and promoted by me through everything I do. People searching for homes online (which is where people look nowadays) will find my listings and they will look great.

2. Agents will not show your home. This is true mainly because they don't know it's for sale! In this case, the sellers were not offering any commissions even to the buying agent. In effect, they are actually discouraging me from showing their home. We may eventually take a look, but it will be at the bottom of the stack.

3. What risk is the seller taking by being unrepresented?? As a Realtor, I believe that much of my value comes as I help negotiate the contract and then keep things from falling apart to the closing. Even so-called easy deals can have things pop up that can cost lots of money or ruin the entire agreement. My experience will help you avoid these issues and be prepared for each step of the process. Even if a FSBO doesn't hire me, I try to encourage them to hire somebody. It's just not worth the risk.

I appreciate a seller wanting to make more money on their own. It just seems that selling your home is a time when it's best to work with a professional. If you try it, please be careful and willing to be very patient. If you'd like some help, give me a call. :)

-Peter

www.NashvilleCityHomes.com

Perceptions More Important Than Facts?

2008-06-19T07:53:00.005-06:00

I've been reading articles from leading minds in the real estate market who are attempting to forecast the beginning of a recovery. Here's an interesting one from the Wall Street Journal entitled, "The Housing Crisis Is Over". In it, the author, Cyril Moulle-Berteaux, says that we've hit bottom and "...that the trend is no longer getting worse, which is the critical factor."

Moulle-Berteax goes into the historical data and has a lot of good reasons for his statements, but will he be right?

I tend to be an optimistic type, but I also strive to know the truth and look at the facts of the situation. However, in this case, perceptions may be more important than the facts.

I took a minute to read over a few of the comments to the accompanying blog and the overall tone was that we have NOT hit bottom yet. Further, an NBC/WSJ poll on April 30th reported that 81% believed that the US was currently in a recession.

By the formal definition, we are not in a recession, however, with 81% of the public believing that we ARE in a recession, then for all intents and purposes, we are.

Gary Keller makes this exact case in a recent white paper released to Keller Williams associates:

Wisdom of the crowd, perception is reality, what you see is what you get. If it’s true for you, it’s true – any way you want to posture it. We’re saying that if it walks like one and talks like one, it is one, and we might need to face that reality.

What does all of this mean? Here are my two thoughts for the day:
1. It has become even more important to be an expert on the LOCAL market. Keller also says, "What’s happening within your local markets is all that’s relevant." Even within the broader Nashville market, different neighborhoods have different dynamics going on.

2. Buyers are super-cautions right now. I can't blame them for that. Buyers are looking at more homes and being picky. They want to know that they are making a sound investment and making good choices.

I guess we'll wait and see when we hit the bottom. Of course, we probably won't know it when it happens, but since we all need a place to live, it will happen.

-Peter
www.NashvilleCityHomes.com

Advice From the Mystery Man

2008-06-13T08:15:00.004-06:00

I was having breakfast with a friend this morning at my favorite greasy breakfast spot, the Hermitage Cafe. We were talking about business and were probably too boisterous when another gentleman joined in with our conversations. I'll call him the 'Mystery Man' because he didn't introduce himself and he was dressed to hop on his motorcycle and speed away.

The Mystery Man wanted to comment on how important it was to form relationships with clients. He said that people wanted to do business with people who would take care of them. He spoke against emailing and said that people don't just have conversations anymore.

I took note of this stranger because even from behind his dark sunglasses I could feel his passion for business. He later said that he was retired from insurance sales and just loved doing business. I have no idea how successful he was, but I could tell he was living large.

This brief encounter was a timely event for me as I'm working on deepening my relationships. It affirms to me that people like to work with people who sincerely care for them. The Mystery Man reminded me how much fun it can be to do business and be a part of people's lives.

Let's live large,

Peter
www.NashvilleCityHomes.com

Myth-busting FHA Loans- A Success Story

2008-06-12T14:00:00.002-06:00

With the tightening of loan qualifications with most lenders, the 100% financing of yesteryear is all but gone. However, there is a way with FHA. In fact, I had some clients close last week who bought a home with nothing to pay except a little earnest money.

FHA loans are quite mystifying until you worked with them a couple times. I’m not mortgage guy, but let me explain the basics from my experience, both on the buying and selling side of them. First, a couple myths to bust:

MYTH 1- FHA will require lots of repairs
Years ago this may be a concern, but the revisions made in January 2006 loosened many of the guidelines, requiring fewer items to be repaired. The inspection for these repairs is done by an FHA approved appraiser as part of the appraisal.

MYTH 2- Sellers will have extra hidden costs to pay
As with any contract, everything is negotiable. It is very common that the sellers will assist with the buyer’s closing costs or possibly contribute to a charity like Ameridream to give the buyers some down payment assistance, but this is all negotiated upfront. Before we have a binding contract, the seller will know their net proceeds from the sale without fear of surprise costs due to the FHA financing.

MYTH 3- Financing for FHA buyers is more likely to fall through
I doubt it’s any more likely than with any other financing. I’m not sure about the exact stats, but the strength of a buyer’s pre-approval is always suspect until the lender has actually collected the required paperwork to make sure that they qualify and that no surprises lurk beneath the surface. It’s always good to work closely with the lenders to make sure that the buyers really are qualified, but sellers who are worried about this should probably just be thankful to have a buyer, right? :)

To achieve a 100% loan through FHA, the seller or possibly a family member contributes to a charity such as Ameridream who will, in turn, contribute toward the buyer’s downpayment. Sellers are often uncomfortable with this at first, but I always try to explain it upfront so that they understand how it works. The funds are built into the sales price and negotiated upfront. It’s completely legal, but still a little complicated. I wrote more about these programs in this article from Jan. 2007.

Back to real life… My clients last week bought a historic home built in 1932. It hadn’t been renovated, but has been in the same family since the ‘60’s. It wasn’t in major disrepair, but still had some old knob & tube wiring, and all the plaster walls intact. Very low funk factor. The only FHA repair we had to do was to replace a portion of the roof that had an obvious leak that had come through the drywall in a back addition on the house. This was no problem, since the buyers were going to fix that anyway. (It helped that their Realtor [me] occasionally does some roofing and drywall, eh?)

The lending bank was a slow mover that I’ll avoid in the future, but otherwise, the process went smoothly. In the end, the buyers were thrilled and excited to finally own a home of their own. They’ve already started ripping up carpet to reveal some well-preserved hardwood floors.

After a few successful closings involving FHA financing, I’m a fan. They do require some extra work and sometimes a lot of patience, but a qualified buyer can still own a home without a down payment.

Just make sure you work with a great lender and Realtor who can get it done for you. Thinking about it? Give me a call.

-Peter
www.NashvilleCityHomes.com

My Best Investment

2008-06-11T14:00:00.004-06:00

Last weekend I took off a couple days to go on a short vacation to Chattanooga. Every time I attempt such a crazy thing, I have loads of work to do before I leave and even more to catch up on when I get back. But it's worth it.

Relationships are worth the investment.

Something I'm learning is that whatever the market does and however business is going, the most important thing is to tend to my relationships. Some of this I'm learning the hard way because I'm not very good at it, but I AM learning.

It's part of having good balance, or being correctly 'counter-balanced' as my business coach would say. In many ways, Realtors are connectors within communities. I bring people together, from home buyers and sellers to roofers and whatever.

So, back to my vacation. Not only is it nice to spend time with my family away from home for a few days, but it's nice to catch that excitement for coming back home and getting back to work refreshed.

My advice... take a vacation!

-Peter
www.NashvilleCityHomes.com

Convention Center Debate Continues

2008-06-04T09:05:00.005-06:00

The debate for and against the proposed Music City Center is heating up as plans begin to materialize for a new convention facility to be built downtown in SoBro (South of Broadway) and replace our current one.

The Nashville City Paper reports that it's one of the largest building programs in the U.S. right now with a projected cost of $635 million.

I'm actually excited about the prospect, mainly because it seems like it would spur more development in SoBro and maybe bring more life to this developing area, as well as the entire downtown.

I grew up in Indiana and always enjoyed going to the convention center in Indianapolis. They redeveloped it with the huge Circle Center Mall and did a great job of connecting the mall and convention center with parking and other attractions. You could easily walk to everything without even going outside if you wanted to.

Admittedly, I'm quite ignorant when it comes to how profitable these centers are and if it's worth the debt that will result. The comments in the blogosphere are quite fierce on this subject. It's a topic worth debating, but I'll leave the debate to others.

It doesn't sound like they're even at the design phase yet, but a couple local citizen groups have proposed some nice plans that are against the 'big box' type of convention center, but instead a incorporate lots of retail/restaurant/office space in such a way that will be an attraction for those of us locals not attending a convention.

The folks at http://www.mccproject.com/ propose a more pedestrian friendly design that would connect nicely with the other downtown tourist spots like the Country Music Hall of Fame and the Schermerhorn Symphony Center. Visit their website and check out all the conceptual pics.

The Music City Center Coalition is another group that is advocating the new development. On their website they make their case for the new Center and how to get it done, along with lots of news releases. Lots of interesting information.

If you ask me, it just seems like the logical next step for a growing city like Nashville, especially considering the amount of tourism we have here. It will be interesting to see what happens as downtown continues through these growing pains and becomes a bigger metropolitan area.

I'll try to stay on top of the news for you!

-Peter

www.NashvilleCityHomes.com

High End in the East End

2008-06-02T13:25:00.007-06:00

I've noticed some remarkable new listings lately in East Nashville for over $800,000.

Yep, there are currently three East Nashville homes listed in the $800k's with one historic mansion nearing $1.4 million.

To illustrate the magnitude of these prices, I have to go even further and mention that there are currently 12 homes listed with a price point above half a million dollars. Here's the list:

1610 Russell $534,900
818 Woodland $542,500

1622 Forrest $549,900

1306 Woodland $554,800

1202 Woodland $599,900
813 Russell $650,000

719 Boscobel $669,615

1407 Stratton $699,900

720 Boscobel $824,615

900 Boscobel $849,500

809 Russell $898,500

504 Russell $1,375,000

The zinger is that Realtracs only records 5 homes ever selling for more than $500k with the highest sale to date at $550k.

Before we all shake are heads at these unprecedented prices, let me reiterate that these homes are quite remarkable, something I have a passion for.

A quality that I've seen in myself is that I really appreciate a great 'environment'. I love taking a space and making it better. Lately, this has been displayed through landscaping or renovating a home. I appreciate quality work and some of these showplaces in East Nashville have it all.

In fact, I toured one such home at 900 Boscobel before it was on the market. Touring the home was almost a 'spiritual experience' for me. I'm not trying to be sacrilegious, actually quite the opposite. The home was built from the ground up. Every material and detail of the home was thought out and assembled like a quality piece of art (note the artistic chandelier pic). I could see glimpses of the Artist throughout and it was incredible.

Anyway, as fantastic as it is, is it worth $849k??? Time will tell, I suppose. Most people that I've talked to about it seem to have huge doubts, but if there is a home that has 'the goods' that home was it.

East Nashville is setting new precedents all the time, from homes selling at $200 per square foot, to having a hot dog stand in an old Volkswagen van. So, hey, why not have some $800k homes in the neighborhood too?

Wanna buy an estate in East Nashville? Call me today. I'd love to help you set some new precedents!

-Peter

www.NashvilleCityHomes.com

It Takes A Village to Buy a House

2008-05-28T12:46:00.004-06:00

Today I had a client tell me: "It takes a d*** village to buy a house!"

Man, is she right. There are a lot of people involved in a transaction to purchase a home and everyone plays an important role. In her case we have been frantically getting all the ducks in row for a closing that was supposed to be today. Unfortunately, the lender has needed a couple extra days to get their loan approved. (Seems that we fell victim to the 3 day holiday weekend... :)

If you ask me, this is when having a quality Realtor makes a big difference. It's also good to have a great mortgage person, title company, insurance agent, appraiser, home inspector, termite company... you get the picture! Sounds like a village to me.

Of course, when you have a weak link in this chain, the system tends to backlog or even have to backtrack. That's why it's so important for me to form a 'team' of these people that I can count on. My clients not only get the value that I bring to the transaction, but they get the benefits of my entire network of professionals.

My role tends to be the hub of the wheel. The 'middle-man' that makes sure things are getting done and staying on track. This is much easier when I'm working with people that I know and trust.

Need a referral for a plumber? Not sure to ask about financing?
Give me a call, I know people...

-Peter
www.NashvilleCityHomes.com

Housing News Got You Down?

2008-05-23T09:42:00.005-06:00

I just read this article from Bloomberg.com that was just depressing. Every paragraph painted such a grim outlook, explaining how things are so bad and why they are getting worse.

The title was "U.S. Economy: Home Resales in U.S. Decline, Inventories Climb". Sounds bad, right? It is. They quote enough bad stats to make all of us run for a cave.

The article doesn't mention any lights at the end of this tunnel, but does conclude by telling us about congress trying to issue $300 billion in mortgages to "stem foreclosures" and adding more regulation to the mortgage industry. In other words, growing the government to fix the economy.

Have HOPE
I'm not an economist, but I know that life is full of cycles. The economy and housing market are not exceptions. I actually get hopeful when I read articles like this. Why? Because I think that the market will correct itself, and as so many people wait to buy a home or builders hit the brakes in new construction, a type of pent up demand is created.

For example, when I hear that new construction has slowed to pace not seen for 17 years, I know that we've overcompensated for a slowing economy. I also think that it's a healthy correction to a housing market that was likely inflated by financing that allowed virtually anyone to purchase a home, whether or not they had the means to do so.

Once the good news begins to trickle into the media, perhaps confidence will be restored and that pent up demand will be unleashed.

Most of my optimism is based in my knowledge that the Nashville market is above average in this case. Especially most of the downtown neighborhoods where I focus. Perhaps there is more caution in the air, but average prices here have continued to rise, a testament to our diverse and strong local economy.

It's okay to be cautious moving forward, but let's not get depressed and remember some of the good news as well.

-Peter

www.NashvilleCityHomes.com

Bad economy? Remember the Revolutionary War?

2008-05-22T09:11:00.006-06:00

Worried about our economy? Polls are showing that it's the #1 concern right now, so you're not alone. Of course if you think it's bad now, it's a good thing you weren't around during the Revolutionary War.

I'm no historian, but last week I tackled the voluminous biography of Alexander Hamilton by Ron Chernow. It has been fascinating to learn about the life of this founding father. It has struck me as I read that many of the issues we face today are no different in principle than when the country was formed- state powers, taxation, economy, size of the federal government, etc.

As far as the economy during this period, it was bad and getting worse. The continental congress printed money after the colonies declared independence from Britain, but this currency, known as continentals, was soon worthless. People had to barter for goods and services or continue to use a foreign currency. It didn't help that during the war, Britain counterfeited continentals and ensured the rampant inflation. (more about colonial currency)

The weak central government was completely at the mercy of the states for revenue and had no money to pay the military. This undermined morale and greatly concerned General Washington. After the war ended, the congress narrowly avoided a military uprising by paying the soldiers with land from upstate New York.

Okay, enough of my book report. It just gives us some perspective to understand this piece of history, especially as we consider the current economic situation. In light of this and a good dose of optimism, I tend to think things aren't as bad as reported on the news. Cycles are an inherent part of economies and markets. It's a healthy thing.

Most of the articles I'm reading lately proclaim that the local real estate market isn't getting worse, it's just smaller. Much of the research shows that while there are, in fact, fewer homes selling, the values have continued to appreciate.

It's important to understand the market but yet not be paralyzed with fear. Otherwise, like Alexander Hamilton, you may miss out on purchasing some bargain real estate in Manhattan. :)

-Peter

www.NashvilleCityHomes.com

Do the Landscaping ASAP!

2008-05-20T13:51:00.004-06:00

Most people have a long "to-do list" for their homes. My advice, do the landscaping first.

Okay, maybe you should fix the faulty wiring or other safety concerns first. But then, ASAP, do the landscaping.

Since I was a kid, I've enjoyed watching plants grow, especially ones that I had planted. At our last home, a serious fixer-upper, we had lived there for a couple years before we finally took the landscaping seriously, and that's one regret that I have. Once we finally installed some new plants and a bed of mulch the home was transformed.

In addition, we enjoyed the home so much more! Every time we drove up we had a renewed pride and excitement as we watched the plants mature. We wished that we had taken time to start with the landscaping because it made such a profound affect on how we enjoyed the home. It was still a rough home on the inside, but the blooming flowers reminded us of the finish line and gave us a glimpse of what could be.

Having moved into a new home last summer, we have just started re-landscaping. It has been a huge project, since all of the home's landscaping had fallen to much neglect for many years, but what a payoff!

Of course, landscaping can be a great way to boost your curb appeal (if you do it right). There's a great article on Bob Vila's website where they say you can boost your home's value by 20%. I'm not sure how they get those numbers, but without a doubt, it will make your home more attractive to a future home buyer.

A word of caution... don't bite off more than you can chew. If you lack a green thumb, start with a small, manageable section to landscape and try to select low maintenance plants. A good start is usually to just clean up what you have by pulling weeds and trimming trees. For some homes even this first step will greatly increase your curb appeal! :)

Go to it!

-Peter

http://www.nashvillecityhomes.com/

More Development Coming to Main Street Corridor

2008-05-12T15:33:00.003-06:00

The momentum in the commercial district connecting downtown to East Nashville’s “Five Points” continues as two new developments are in the works.

East River Place Apartments
Just a block off Main Street at the corner of 8th and Ramsey will soon be the new East River Place Apartments. Demolition is slated to begin this month, which is currently home to the “blighted” Silverdene Apartments. The new $14 million, 90 unit complex will contain 2 and 3 bedroom apartments and meet some of the demand for affordable housing in the area. The developer, East River Holdings, is aiming for a completion date of December 2009. (more about this)

800 Main Street
This three-acre parcel was previously home to a Bank of America processing facility and at one time rumored to become a private school. Double A Development, with projects in Germantown to its credit, bought the property on May 5th for $3 million according to tax records. Plans are still being finalized, but the Tennessean reports that the $45 million mixed use project will include retail space and apartments.

As I tell my clients purchasing a home in East Nashville, it’s a good thing to see people investing this kind of money in your neighborhood. It’s a good forecast of the long-term future of an area, especially when you see several different players involved.

If you’ve ever driven down Main street toward Five Points you know that there are plenty of vacant and burned out businesses yet to be rejuvenated. It will happen, but it takes time.

-Peter
www.NashvilleCityHomes.com

Selling and Moving On With Life!

2008-04-22T08:46:00.008-06:00

Last week we closed on our own home that we bought in 2003 and spent much of the past 4+ years in. The closing was fairly easy, but it was the end of a meaningful season in our life and the beginning of new ones.

We had spent those 4+ years living life and growing up. We had our first two kids while living there and saw them start walking and talking. We had hard times and wonderful times. It was life.

The house played a very central role through this time. It was a fixer upper that we bought from a seller avoiding bankruptcy. A wood sided 1920's bungalow in East Nashville with overgrown bushes and chipping paint everywhere. Lots of old trim & windows. Character and charm in every room. It had been through seasons as a duplex and suffered much neglect- but it was "livable"- at least to a young couple wanting a challenge to conquer...

Before/After Photos

We first moved into the dining room while we gutted and renovated the upstairs. This had to happen quickly because my wife was pregnant and we wanted to move out of the dining room! After this we started working downstairs and slowly finished a room at a time. I became a roofer, painter, electrician, foreman, plumber, tiler, landscaper and more!

The final phase began when we moved out of the home last July and were able to gut the kitchen and rooms along the back of the house that needed major work. We refinished floors and had the exterior repainted. There's a lot of me in that house. I became to be good friends with it.

It was quite gratifying to see our vision for the home become reality- to see the job to its successful end, to finish well.

This article may be part of a some kind of grieving process, but it's been a very real transition in our lives. I want to make note of it and remember the emotion, because I work with clients all the time who are experiencing many of the same things. Seasons are changing. They're moving up or moving down. Taking risks or removing risk. Staying close or moving far.

It reminds me again what makes a house a home. It's where LIFE happens!

-Peter

www.NashvilleCityHomes.com

Real Estate Music?

2008-04-10T19:53:00.007-06:00

Today was a flurry of last minute chores in preparation for a couple closings next week. I had amendments to fax, tile contractors to meet, and wiring instructions to coordinate. For some reason it reminded me of my years in the music business.

How, you ask? Well, it's kind of like preparing for a new production or a live concert video. To pull it off, a lot of different things must come together- and it's usually a little crazy. (That's an understatement!)

The satisfying part comes later, when the music begins or the closing happens. It's a creative process. We have to work together to make something that we couldn't do on our own.

I usually don't get so romantic about it, but once in a while I pause to consider what an honor it is to do what I do to bring people together to an end that benefits all involved.

I guess you could say, we're making 'music'. :)

-Peter

www.NashvilleCityHomes.com

An (Unnecessary) Foreclosure Victim

2008-04-08T20:27:00.003-06:00

I was sad to see a new listing pop up this week. It was one of my previous listings that had since been foreclosed on and was now for sale by the bank. The sad part is that the bank foreclosed even though I had sent them a legitimate offer as part of a short sale.

It was the classic case of getting the runaround from the bank. We listed the property and got offers. I had all the paperwork in order and had jumped through all the hoops to submit the offer to the lender- one of the big players in the sub-prime loan game. However, once it was ready for the banks consideration- no reply.

Worse, when I called them to check on the status (enduring excruciating hold times), if I ever talked to a human they would tell me that I needed to talk to someone in a different department and then proceed to give me the exact phone number that I had just called in the first place.

I don't want to scare you away from attempting a short sale or trying to buy a house this way, but just be prepared to wait. It's not uncommon to wait weeks or months waiting for a response from the bank. In our case, the seller apparently didn't have that kind of time.

I know that the bank's 'loss mitigation departments', as they are often called, are completely swamped at this point. I suppose we may have been moved to the top of the heap if this was a high dollar property. Still, the home was a really big deal to my client and I'm sorry to see it end this way.

-Peter

www.NashvilleCityHomes.com

Are You a Consumer or Investor?

2008-04-04T08:45:00.002-06:00

I was rereading parts of Gary Keller's book, The Millionaire Real Estate Investor (MREI) last night. What an incredible book.

What always strikes me is Gary's description of the Investor mindset and how it differs from the Consumer mindset. He says, "Do you work for money, or does money work for you?"

Obviously, we all have expenses and consume things, however, what principles and priorities guide our spending? The difference is in how an investor thinks, making short term sacrifices for long term gains. For example, buy a less expensive car and put that money toward investments. Cut back on lifestyle expenses so you can reinvest your cash flow.

As Dave Ramsy says with much gusto, "Live like no one else so that later you can LIVE like no one else!"

If you need some encouragement, you should get the MREI book and read pages 151-156 where Gary goes through a simple and very conservative investing strategy that shows how you can start small, but end up with a huge payoff if you can follow the plan.

The plan is the key. If you're thinking of investing, it's so important to know what you're doing. Otherwise you may fall prey to speculation and loose your shirt! However, don't be afraid to take steps and learn along the way. You too could enjoy a huge payoff down the road.

-Peter

www.NashvilleCityHomes.com

Why You Shouldn't Believe the Headlines

2008-03-26T08:37:00.006-06:00

I just read an AP story about how new home prices are at an 13 year low. It was mostly bad news and then I got to this paragraph:

Sales dropped the most in the Northeast, falling by 40.6 percent. Sales were also down in the Midwest, dropping by 6.4 percent, but posted gains in the South of 5.7 percent and 0.7 percent in the West.

After finding out how bad the Northeast is doing, it says the SOUTH WAS UP 5.7%.

That's good news for us southerners and it helps explain why it doesn't feel like the market is tanking here, in spite of the negative headlines that we see everyday.

So the lesson is:
1. Don't believe everything you read.
2. All real estate is local.

-Peter

www.NashvilleCityHomes.com

Where Few Homeowners Dare to Tread

2008-03-25T15:39:00.008-06:00

In 2003 my family moved into a scary fixer upper in East Nashville. The 1920's bungalow had potential, but it was under many layers of bad remodeling and neglect.

Determined to do things right, I went where few homeowners dare to tread- Metro Codes.

Yes, I actually applied for the appropriate permits and had all the inspections done. Having passed my final inspection, today was the glorious day to go pick up the Use and Occupancy permit that says that the house is ready to be lived in.

It's a great feeling, but I must take a moment to make a couple observations:

1. Most homeowners will not have the stomach for the process. It's not that it's so difficult, it's just unknown- What do you need a permit for? What is 'up to code' anyway? What inspections will I need to have? How do I order the inspections? Who can I call to ask questions? The system seems obviously designed to dissuade homeowners from acquiring permits, but probably doing the work anyway, right?

2. The inspections are somewhat lacking. I'm not necessarily complaining here :) , but I stayed awake a night going over the renovations in my head hoping I had done everything right and then the inspector barely took a look before passing my work. Again- It's fine with me, but it's very easy to see how shoddy work can get through the system, especially if it looks good on the surface.

3. One good thing to mention- The codes dept. has greatly improved their accessibility. When first got my permit in 2003, it was impossible to reach anyone by phone. You just had to go downtown to ask even a simple questions. Now, they have posted phone numbers for everyone in the department online so you can usually reach someone by phone. The couple of times that I've left messages, I got calls back the next morning, which is great.

At the end, I'm glad I jumped through all of the hoops. Since I was selling the home, I certainly didn't want anything to come up later about me not having all the right permits for the work I did. It also helped my confidence along the way.

-Peter

www.NashvilleCityHomes.com

A Special Moment in Real Estate

2008-03-21T11:09:00.004-06:00

I was recently at a walk through for a condo that a father was buying for his son to live in. These were great clients and I had really enjoyed getting to know them a little over the process of purchasing it.

Anyway, we were looking over the condo just before the closing to make sure everything looked right. It was fine and the father kept remarking about certain things to his wife that their son would really enjoy about the place. I remember him saying something like, "It will be really good for him, won't it?"

It doesn't come across in the text, but as he said it, I could feel the love that this dad had for his son. It gives me goosebumps as I write this. It was indeed a special moment.

Buying a home is more than just the mechanics of the transaction. It's about living life to it's fullest. I'm so honored to be part my client's lives and help to find them a wonderful home for their next 'season'.

I'm also blessed to relate to this father-son love. Something that I share both with my dad and now with my own son.

Life is good.

-Peter

www.NashvilleCityHomes.com

Hope Gardens Snapshot

2008-03-19T15:13:00.010-06:00

I just finished a Home Value Report for a home in Hope Gardens and thought that some of the information was worth sharing.

Hope Gardens is a small area just north of downtown Nashville. It's across from the Farmers Market, west of 8th Ave and south of Jefferson Street.

It has seen some revitalization that seems to have finally tipped the scale as of late. A couple notable developments have been anchors in the area including Park Place Court and the Row 8.9n which won a 'Grand Award' from Builder Magazine.

Single family home prices have averaged around $143 per square foot over the past 6 months for a renovated, and probably historic-looking home. The neighborhood is filled with a mix of renovated homes from the early 1900's and brand new infill homes of similar character.

So, purchasing a smaller 3 bedroom / 2 bath would probably cost you around $200,000. Larger homes sell up to the high $300k's.

Driving through the area today, I was impressed with the architecture which seems almost distinct to Hope Gardens or at least North Nashville. Reminiscent of homes in New Orleans, many of the homes feature large two story porches on the front of a narrow but deep home. The newer ones usually have an open floor plan on the first floor with bedrooms upstairs.

It's an area that's really shaping up and leading the way in the revitalization of North Nashville.

-Peter

www.NashvilleCityHomes.com

Pictures of WHAT, exactly?

2008-03-18T14:31:00.003-06:00

When you're selling your home, most people agree that great pictures are essential, even if many Realtors overlook this. (One of my pet peeves.... )

The question is, WHAT do you take pictures of?

I just saw a new listing of a fabulous historic home. I'm sure it's wonderful, however, most of the photos were close up pictures of smaller details. I saw the grand piano, the fireplace, the outdoor trim and the stairway spindles. They were incredible, but what about the rooms?

The details are important, but I think that buyers want to see wider pictures of rooms. How do they lay out? Is there room for my furniture? Often the quality of a home is fine, but the layout is the deal breaker. At the minimum, you want a mix of the two.

Here's a secret: Usually the absence of room photos makes people there is something wrong with those rooms. Of course, everyone knows that if there is no picture of the front of the house, there is a funk problem. The same applies if there is no picture of the kitchen.

I see two easy solutions to this:

1. Put a couple combo pictures that show details, but leave most of them for the virtual tour.

2. Hire a professional photographer with an incredible wide angle lens. This is my opinion, but I believe that home marketing begins with fantastic photos!

-Peter

www.NashvilleCityHomes.com

Fear Hurting the Markets?

2008-03-17T19:54:00.004-06:00

On my way home after an appointment with some fantastic clients, I turned on the radio and caught Neal Cavuto being interviewed about the economy. Cavuto has always seemed like a fairly level headed fellow to me so I was interested to see what he thought of things.

Cavuto offered an insightful perspective on some of the economic dynamics going on right now. He said that the problem was NOT because banks don't have the money to loan- they do. They are just afraid of making bad deals so they've tightened their qualifications and really limited the mortgage options available, especially to 'less qualified' buyers.

He also said that the problem also is NOT that qualified home buyers aren't able to get the loans either- they can! Instead of buying, many buyers are waiting, scared to buy a home that may go down in value.

Bottom line- FEAR is hurting our economy right now.

I tend to agree with this insight. Not that there aren't other issues going on (and plenty of things to be afraid of!), but so much of the strength of the economy is based on perception or our confidence in it.

Instead of screaming that the 'sky is falling' Cavuto talked about our economy working in cycles and that certain 'corrections' are to be expected. He said that people should simply not expect to keep seeing home prices increase at 30% a year without some sort of correction. However, while these times can be painful, the overall economic slope is strong and is historically resilient.

Note: I am no economist. I'm a Realtor. :) However, I'm seeing the trickle down effects of this:

1. My investor clients are having a little more difficulty qualifying for loans that were easy just a year ago.
2. Builders are halting projects as new construction loans are drying up, waiting for new home inventories to decrease.
3. Buyers that aren't relocating are taking their time to find a home. Demanding more for less money. They've got the leverage right now.

Of course there are many opportunities out there right now- if you know where to look.

-Peter

www.NashvilleCityHomes.com

Sprawling East Nashville

2008-03-13T07:57:00.005-06:00

From my quiet table at Portland Brew Coffee, I just overheard some folks raise their voices and talk about how East Nashville is "sprawling". She was saying how the increased demand started in Lockeland Springs (North of Shelby & South of Eastland), but now it includes the surrounding areas as well.

I'm not sure what they're discussing now, but this statement got my attention.

As East Nashville home prices have increased over the past few years, especially in the historic neighborhoods like East End and Lockeland Springs, many buyers in the lower price ranges have struggled finding something affordable within these boundaries. So, they've turned to the areas immediately surrounding these more expensive areas.

Eastwood Neighbors seemed to be one of the first to make the leap so that these days home prices there are rivaling those a few blocks south in Lockeland Springs.

Now areas like Rosebank, Shelby Hills, Maxwell Neighbors- and more recently- Cleveland/McFerrin Park have all seen notable improvements. Not only are homes throughout the area getting renovated and rebuilt, but larger projects like condo/commercial developments are forming as well as city improvements like new sidewalks and historic-looking street signs.

I love it all. It's exciting to see things improve, especially when old historic homes that have been neglected or 'remuddled' are given a new life and restored.

Back to my coffee...

-Peter

www.NashvilleCityHomes.com

Marketing By Fax??? Naaaah

2008-03-12T11:45:00.004-06:00

No, I'm not an advocate of Fax Marketing. However, I'm in the early stages of redesigning my website and have been digesting a lot of different ideas for marketing. One of my favorite marketing guys is named Seth Godin, who I learned about when my wife gave me his book "Free Prize Inside" for Christmas.

From what I can tell, Seth's philosophy comes down to two major points:
1. Make your service remarkable. (Remarkable means that your customers are amazed by it and have to tell others.)
2. Don't shout your message. Seth leans away from traditional marketing like advertisements that clamour for your attention, but instead suggests 'permission marketing', where you build a relationship with your customer over time and earn their trust.

I really like his ideas. I've never felt like a 'salesman' type that could persuade people to work with me. I'd much rather provide remarkable service and build relationships. It's more fun to work with people I know, anyway!

Anyway, I picked up Seth's book eMarketing from way back in 1995 where he devotes an entire chapter to Fax Marketing. It may have been the latest idea then, but I'm not sure it would be as effective now! That is, if it was ever that effective... :)
-Peter

www.nashvillecityhomes.com

Listings Now Online Everywhere With KWLS.

2008-03-05T20:33:00.008-06:00

When 'house fever' hits, buyers are turning to the Internet.

But where to search?? There are many options with each website offering a new slant on the home search. My personal favorite is the Interactive Map Search, which is why I had to have it for my own website.

When you're selling your home, how do you make sure that your home is listed on as many websites as possible? Just being on Realtor.com isn't enough anymore.

My firm, Keller Williams, is a market leader in this kind of technology and we've just started a new service called the KWLS (Keller Williams Listing Service) to give even more exposure to all our listings. Once I've entered the listing it is broadcasted to all the websites listed below and more! Incredible.

Realtor.com
Homescape
Yahoo
Yuvie
Point2Homes
Google
Trulia
Cyberhomes
Geebo
Vast.com
KW.com

My own marketing includes exposure on:
HomeSeekers
HomePages
NashvilleCityHomes.com
CraigsList
Backpage
VisualTour

I'm honored to be part of company that is leading the way in new technologies. You won't find this type of exposure with many of the other firms out there. Of course great Internet exposure is just a piece of the puzzle. If you're interested in the many ways that I'll market your home, please give me a call.

-Peter

REALTOR. City Home Specialist.
www.NashvilleCityHomes.com

Beware of House Funk

2008-02-29T15:51:00.004-06:00

Old homes are cool. People will pay more for historic character and charm. But what about funk?

Funk- I'm not talking about the super-cool-booty-shakin' music from the '70's. I'm talking about homes that have something weird happening in spite of being a 'charming old house'.

Here's what brought this up... I was a little bored today so I thought I'd get out and preview some homes on the market in East Nashville. I saw 12 homes- 9 of which I thought were a little funky for the price. What do I mean?

Funky House Stuff
1. Weird floor plan- This is a very common kind of funk with older homes that have been remodeled to fit a more 'modern' lifestyle. Closets, bathrooms or extra bedrooms have been added, but it ruined the house. You've seen these homes. The pictures look great until you go there are see how the rooms work together.

2. Funky attic conversion- Also very common. Seldom does a converted attic space feel right. Problems include: Steep stairs, bathrooms with angled ceilings too low to stand beneath, lack of adequate heating/cooling systems, etc. When converting an attic there is sometimes a fine line between cute/sensible and funky.

3. Mix 'n match floors- Buyers always seem to notice when there are several types of flooring that doesn't match. For example, homes with hardwoods in the old part and then laminate floors in the new part mixed with two kinds of carpet, etc.

4. Unlevel floors or leaning stuff- This is the king of house funk. If the floors are unlevel often much of the house is unlevel. You notice it with door trim, baseboard, windows that stick or furniture that rolls to one side of the room. It can be a real problem and is often the kiss of death for a property that's for sale.

5. Duplex conversions- Homes that still feel like they're divided into two have 'the funk.' Signs of this include: two kitchens, exterior entrances where the should be just a window, and one side of the house that is in much worse condition. Homes can be converted from life as a duplex, but it must be done carefully and thoroughly.

If you're looking for a house you may want to stick with Sly and the Family Stone (see below) and leave the other funk out of the deal. :)

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Water Can Kill a House

2008-02-27T19:08:00.013-06:00

I see it all the time. The evidence of water damage to homes. Weakened foundations, rot, mold in crawlspaces, cracks in foundations, etc.

I was just reading an article in This Old House magazine (which I highly recommend) about ways to handle water runoff and make it look good. Their suggestion of making a ditch look like a stone creekbed isn't for every home, but even minor repairs can sometimes keep water from running into your crawlspace undetected.

I'm not an expert on this. After all, I'm just a Realtor,right? However, I go to all my buyer's home inspections and I've got the best inspector in town- he is very instructional and wildly informed on everything in your home. Nearly every home inspection includes some kind of note regarding water entry or the need for better runoff.

Here are a couple real life situations that I saw just recently:

CASE 1: I had some buyer's that fell in love with a house built in 2005. It was a beautiful brick home in a nice subdivision near Brentwood. The inspections were going well with no unexpected issues until we finally got to the crawlspace. Here it was discovered that water was regularly draining in and there was quite a bit of fungal growth present. Yikes!! [THIS is why you ALWAYS do a home inspection when purchasing a home] The inspector thought that perhaps the homes were so close that there was nowhere for the water to run, so it was going into the crawlspace.

CASE 2: Another buyer of mine had a contract on a lovely home out west of Nashville toward Percy Warner Park. Again, things were going reasonably well at the home inspection until the inspector came out of the crawlspace and mentioned something about a "swimming pool" and mold. Apparently, an addition on the back of the home was too far below grade and water was congregating under that section of the house. Once again, my fearless inspector saved my clients a huge headache down the road.

Since then, both of these clients have found other homes.

Anyway, here are some maintenance tips that I've accumulated:

1. Clean your gutters- Clogged gutters may lead to rotted eaves or standing water next to your foundation.

2. Add some gutter extensions, not just a rock under the downspout- You want to lead water as far as possible away from your home. My inspector always says at least 10 feet.

3. Make sure your drainage pipes are not clogged- Many homes are built where the downspouts direct water into black corrugated pipe that deposits water away from the home. This looks nice, but make sure that this pipe does not get crushed or otherwise blocked.

4. Landscape so that water runs away from the home- Okay, this may be obvious, but so often I see homes with landscape beds that tend to collect water next to the home. We also have many homes built on hills where water is practically directed right toward the home. If grading isn't enough then a French drain may be needed to get the water away.

Don't be afraid. If you're looking to purchase a home and have a quality home inspector, these types of issues should be found out. If you haven't found a Realtor to guide you through the process, then call me today.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

The Problem With "Instant Equity"

2008-02-25T17:01:00.006-06:00

Ever seen a home listing that advertised "instant equity"? I just saw a condo where they've dropped the price and claim that you could have instant equity because a similar unit sold for $30k more.

Let's think about that for a second. I know that sometimes sellers are motivated for one reason or another, but are they really going to lose $30,000 on the deal??

In this market, it's more likely that the prices have weakened and sellers are having to be more negotiable to unload an unwanted property.

In my condo example, it may actually be a good deal, but you aren't likely to turn around and sell it right away for $30k profit. Instead, you'll have to wait on the market to heat up. So, I guess, the equity isn't so 'instant'.

Along the same vein are homes advertised for something like "$50,000 under appraised value", but yet they've been on the market for 60+ days. If it was really that good of a deal, it would have sold already!

Okay, I'll calm down now.
Have a great day!

-Peter
www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Loft or Condo?

2008-02-22T14:20:00.004-06:00

I've been showing some of our fine new loft/condo developments in downtown Nashville lately, and I've noticed that it has become more difficult to define exactly what a loft is and how it is different from a condo. The words have unfortunately become more interchangeable, many times loosing their specific meanings.

So what’s the difference? Here’s how I think of it: A loft is a type of condominium that is basically one large room, often converted into residential space from some other use. Sometimes there are partitions or curtains to separate the bedroom, but generally it's one large space. Lofts are often more industrial looking, (especially if it's a conversion) with exposed ductwork and beams and other utilities.

The loft concept has gained popularity to the point where we also have "loft-style" condos. These may be a little more conservative, but still offer a large open living space. There are many variations of this.

A good loft example may be the Werthan Lofts which have been converted from the Werthan bag factory built in 1850. Here’s a picture:

I’m a big fan of lofts, but I also like having some grass. It’s a hard mix, I know.

Shopping for a loft or condo? Call me today.

-Peter
www.NashvilleCityHomes.com
REALTOR. City Home Specialist

Doing Business is an Act of Creation

2008-02-21T18:29:00.005-06:00

I've really enjoyed getting to know a couple clients lately. Both are buyers that are moving into Nashville from across the country. Due to a variety of factors they've had a rocky time buying a home which has afforded us some time to get to know each other. Thankfully, I think they are both close to finding a home and settling in.

So anyway, I came across an article today from Daniel Lapin that relates to this because it talks about how everybody benefits from a successful business transaction. He calls it an 'act of creation' which is a really interesting way to think about it. Here's what he says:

"Remember, most of us prefer to do business with folks we know, like and trust... Whenever you do business together, wealth is created. Think about it: if nobody coerced them to make a deal, it must have benefited both of them. Each must have valued what he gained, more than what he gave up. That is right. The act of doing business is the act of creation."

As a Realtor, I often feel like people see me as a salesman trying to talk them into something. This 'salesman' personality is NOT ME AT ALL! I'm not a very good persuader, however, I enjoy being a teacher and a guide- learning what a clients needs are and helping to fill those needs, all while educating them about the process.

It's a good reminder that I don't have to be a salesman, but instead work on building relationships, and letting people know that I'm here to serve them with excellence.

-Peter
http://www.nashvillecityhomes.com/
REALTOR. City Home Specialist.

How Nashville Skyscrapers Stack Up

2007-05-03T09:21:00.000-06:00

If you're following all the buzz about new downtown developments in Nashville, you might want to check out SkyscraperPage.com. Today I found an interactive lineup which is a neat way to compare the tallest buildings in Nashville and see how they rank. Here's the link.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Filling the Gaps Downtown

2007-03-27T04:50:00.000-06:00

One of the greatest things about the redevelopment and new construction happening around downtown is how Nashville is becoming less segmented. Many of the 'margins' between very distinct areas are getting harder to find.

For example, do you remember just a few years back when Demonbrean Street by Music Row was lined with vacant buildings? Now the street is lined with trendy restaurants and boutiques and a new Condo/Retail tower, Rhythm on Music Row, is coming soon. The street itself has also improved as a new bridge over I-40 connects the area to SoBro where the Schermerhorn Symphony Center and the Frist Center are located.

Speaking of SoBro, I found this really cool interactive graphic from the Tennessean depicting many the developments south of Broadway. It's a little outdated, but a great way to explore the area.

Downtown, just inside I-40, is a quickly developing area dubbed the "Gulch". Not long ago this was a dark area known for its 'seedy' businesses. Now the area has been transformed as several high-rise condo towers are planned and currently under construction. It's become one of the hottest neighborhoods in town.

On the other side of downtown, two new bridges have come along in the past few years connecting Sobro to LP Field and East Nashville with easy access to I-24. Hopefully coming soon, the ambitious Riverfront redevelopment will further join downtown with greenways and river recreation. The 5th and Main condominiums are also helping to fill some of the 'gaps' between downtown and East Nashville.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Custom Home Costs in Nashville

2007-03-22T04:59:00.000-06:00

Having your very own custom dream home built is the dream of many homeowners. It's an exciting venture and one that can be quite complex and difficult at times.

If you're considering it, the first question you should probably ask yourself is, "How much can we afford to spend?"

That's an important question to ask and have answered before you do too much dreaming about a 5 car garage and an Olympic-sized pool at your new home.

I have some clients are at this stage of the game so I called one of Nashville's top builders, Nashville Construction Company, and asked Sam Burgess about it.

Sam gave me some good 'rules of thumb' to at least help us have a ballpark idea of what the home might cost to build. First, he said that generally the home value comes out to about 4.5 times the value of the lot. That means that if you're looking at a $100,000 lot, then you'd probably expect to spend around $450,000 building a home on it.

That's somewhat helpful, but in my client's situation the lots aren't so expensive, but the neighborhood rules require that any home that is built must be 4000-8000 square feet. This size of home will cost more than $450k to be sure.

That's when Sam mentioned that we should expect to spend $175-185 per square foot for a custom home. This would include the upscale finishes, etc. that you'd expect in a custom home. Sometimes you can 'cheat' a little by having a portion of the home that is left unfinished like a basement or a bonus room. That way you can afford a larger home and finish that space off later when you've got the cash.

As I mentioned, this is just the very beginning of what can be a complex project. However, if you have realistic expectations on the front end, you will save yourself a lot of grief along the way!

If you're weighing the options and considering a custom built home, please give me a call.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

NY Mag Highlights 12th South,East Nashville

2007-03-15T08:04:00.000-06:00

New York Magazine released a article recently highlighting travel tips for 'escaping' to Nashville for a weekend. Several of our downtown businesses were highlighted, and rightly so!

Top O' Woodland, a Queen Anne Victorian built around 1904, was mentioned as a "bed-and-breakfast ideally located in the once bedraggled, now hippified district of East Nashville". Check out the Top O' Woodland website for more history on the home and the surrounding area we know as Lockeland Springs.

Also in East Nashville, Margot Café , Marché Artisan Foods, Family Wash, Cantrell’s Bar-B-Que Pit and Dee's Q were all mentioned as places you don't want to miss.

Some places in 12th South neighborhood made the article. If you're a musician, you know about Corner Music and the drummer hangout, Fork’s Drum Closet. They also mentioned one of my favorite places to get coffee, Portland Brew.

Anyway, click here to read the NY Magazine article and see what else they picked.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Wireless Hotspots in Nashville

2007-03-13T11:27:00.000-06:00

Ever wonder where all the wireless hotspots in Nashville are? I came across this neat website today with a map showing where to go. It does seem to be missing a few, but still might be a great tool for you if you're looking for a new place to check email and get out of the house!

I guess I'm going to have to start having business meetings at Krystal.... (just kidding)

-Peter

P.S. My son, who is not yet 3 years old, is currently surfing the Sesame Street website looking for Big Bird. Unbelieveable!

www.NashvilleCityHomes.com
REALTOR. City Home Specialist

Keep Everything on the Table (and Avoid Jail)

2007-03-12T04:46:00.000-06:00

It's not unusual in a real estate transaction to have the Sellers contribute toward the Buyer's closing costs. Buyers that are short on cash, but have the credit to get a mortgage often ask for this to help cover their out-of-pocket expenses. This is all fine and acceptable as long as it's DISCLOSED to all parties and APPROVED by the lender.

This means that all the transfers of monies related to a specific real estate transaction are listed on the HUD settlement statement at closing. This disclosure is important, mainly because the lender wants to make sure that the money being borrowed is actually paying for the property that secures the loan and not going to the buyer as cash under the table at closing.

Here's a real life example: I know of a situation where a lender (off the record, of course) told a buyer that in order to get some extra cash that she needed for repairs she could raise the sales price and then ask the seller to cut a personal check back to her outside of closing. At first, this may sound like a great idea, right? Why not? The seller gets their money, the buyer gets the house, the lender closes the deal. Here's why: IT'S FRAUD.

Mortgage fraud, actually, which makes it extremely odd that the lender would even suggest it 'off the record'. Lenders usually have a cap on how much can be contributed by the Seller- typically 3-4% of the sales price. If the buyer needs more cash for repairs, they can get a second home equity loan or get a second job, but they can't get it from the Seller outside of closing.

Cash-Back Schemes: The buyer and seller collude to deceive the lender as to the true sale price of a property. The seller gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and seller pocket the overage. This scheme usually requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability. (From Wikipedia)

Mortgage fraud is a federal crime and penalties can be quite severe. For me, I prefer to stay out of jail so don't call me if you're planning to try it!

Click here for a great article about if from Bankrate.com.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Pictures of Nashville Developments.

2007-03-07T05:39:00.000-06:00

I love to browse renderings of the developments going on around Nashville. This morning I found a great message board at Urban Planet with most of them listed in one place. Some of these are complete, but many are still underway or will be soon underway.

Put on your seatbelts because changes are happening in Nashville! Here are some links to the renderings:

1811 18th Ave.
Art Avenue Lofts
Belmont University College of Heath Sciences Building
Belmont University Thrailkill Hall
Bristol West End
Metro Civic Square and Parking Structure
Demonbreun Street Bridge
Rolling Mill Hill
Shermerhorn Symphony Center
The Adelicia Condos
The Encore
The Icon
The Midtown Lofts
The Viridian
The West End
Vanderbilt Commons Dining Hall
Vanderbilt Commons Freshman Dorms
Werthan Mills
Vanderbilt UMC Imaging Science Building
Vanderbilt UMC Langford Light Hall
Summer St. Lofts
Suntrust Building
MTA Transit center
The Meridian
The West End Summit I & II
The Signature Tower
Sounds Baseball Stadium
5th and Main
The Woodmont & Kenner
The Belle Meade Theater
The Terrazzo
Cumberland Yacht Harbor
East Bank Arts Project

Any questions about these? Looking for a condo downtown? Give me a call!

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Looking North on I-65

2007-03-05T06:12:00.000-06:00

Last weekend we took a couple days to visit my family in Indiana. On the way home I was checking out some of Nashville's 'competition' in Indianapolis and Louisville. Of course, I'm a little biased about our fine city, but I was curious to know if these other large cities were seeing the same sort of massive demand for downtown living as we're having here in Nashville.

My first impression on my quick drive through the cities is that I didn't notice near as many super-sized cranes and building projects as we have in Nashville. I didn't want to be quick to judge so I did a little research to see what I could dig up.

Louisville has some incredible things happening downtown. Most impressive to me is this Museum Plaza development (see picture). Wow! That is one amazing structure. Inside will be a little of everything including apartments, condos, retail, office space and, of course, a contemporary arts museum. There are lot of other projects going on as well in this city famous for sluggers and the riverfront. Here's a great article with more from the City of Louisville.

Growing up in Indiana, I know that Indianapolis has seen a lot of movement downtown. A few years back the Circle Centre Mall opened as well as the highly rated Conseco Fieldhouse, home of the Pacers. It was a little more difficult to find a lot of new development here although there are proposals coming in for redeveloping the site where the demolished Market Square Arena once stood. The condo market is in high demand, however. Here's an info guide to Indianapolis condos.

Though these cities are also seeing a rise in demand for downtown living, Nashville definitely seems unique in the amount of projects that are currently underway. Read more about Nashville's downtown developments here.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

The Ripple Effect and Gallatin Road

2007-03-01T05:13:00.001-06:00

Many of my East Nashville home buyers have told me that they're not interested in "anything west of Gallatin Road". However, as the demand continues for homes in East Nashville, many neighborhoods surrounding the hot Lockeland Springs or Historic Edgefield areas are experiencing the ripple effect. Places west of Gallatin Road such as Renraw, East Hill, Cleveland Park and Maxwell Heights are seeing more demand and more homes being renovated.

As an example, let's take a closer look at Maxwell Heights. I just posted a CITY NEWS article about some of the happenings in this neighborhood. From the new street signs to the new West Eastland condo development to the numerous homes that are being renovated, it feels like the entire area is getting a facelift. Driving through the other day, I could feel the excitement. (I know I'm a little strange!) Click here for an interesting article with more pictures from the Tennessean.

I've always loved seeing neglected buildings and historical neighborhoods given a new life. I'm excited to see what's ahead for these neighborhoods that contain so many incredible historic homes and wonderful people.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Internet Trailblazing?

2007-02-28T10:47:00.000-06:00

The Internet has changed how everyone does business and this is especially true in the real estate world. A recent report shows that home buyers are using the Internet to search for homes, but the majority of real estate agents don't have websites or advertise on the Internet. Here's an excerpt:

In the latest National Association of Realtors Profile of Home Buyers and Sellers, based on a survey of 7,500 home buyers and sellers, 80 percent of home buyers used the Internet in searching for a home, up from 77 percent in the 2005 survey and 74 percent in 2004.

Meanwhile, a 2006 survey by media research firm Borrell Associates Inc. found that 61 percent of real estate agents do not advertise on the Internet and 87 percent of agents do not buy keyword advertising from the Google or Yahoo search-engine companies. (from Inman News)

I've tried to take full advantage of the Internet in every way that I can and I guess that makes me a trailblazer of some kind. It just makes sense to me. I know that home buyers and sellers are using the Internet and as my clients, they expect me to use it as well.

Here are some of the Internet tools that I provide as a service to my clients...

INTERACTIVE MAP SEARCH- An innovative way to search for homes using a map. This is the absolute best search method I've found that is available. It's very user friendly with numerous ways to search and features like SearchSaver and Favorites.
VIRTUAL TOURS- When selling your home I can easily create a virtual tour highlighting the selling points and exposing your home to Internet users anywhere.
HOME VALUE REPORT- If you're thinking about selling your home, just enter some simple info into this form and I'll send you an estimate of what your home is worth based on recent sales of comparable homes in your area. It's FREE and no obligation.
WEBSITE- The hub for all these tools as well as general information on buying & selling homes.
BLOG & CITY NEWS- I try to offer all kinds of real estate news and information through both this blog and my website.
NEIGHBORHOOD LINKS- This ever-expanding part of my website will contain useful information about local Nashville neighborhoods with links to neighborhood associations, restaurants and other points of interest.
ONLINE MLS REPORTS & MORE- When buying a home, I can email you reports for various homes listed in the Multiple Listing Service (MLS). Paper is optional these days as I can also send all sorts of documents from tax records to comparative market analysis via email and web links. My goal is to empower you as the buyer to make well-informed decisions.
ONLINE MARKETING- Internet buyers want to see lots of pictures and details about homes that are for sale. I post all my listings to Craig's List and other similar online 'classified' advertising to get more exposure. This generates a lot of traffic to my virtual tours, especially with buyers who are out of town and considering a move to Nashville. I also do keyword advertising on search engines to invite more people to try these tools and see what makes me different.

As the Internet continues to grow and change so will the many tools and information sources available to you. Please give some of these a try and let me know what you think.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Real Property vs. Personal Property

2007-02-26T06:09:00.001-06:00

"Do the drapes stay?", "Will they leave the chandelier?"

These are the types of questions I hear when showing homes to buyers and they are good ones to ask. It's important to understand what you're getting when you purchase the home. We refer to this as real property.

Real Property is not just the land and anything that is permanently attached to it, but also the rights and benefits that are included. Anything else is typically called personal property. For my clients, the key phrase is "permanently attached".

If you can pick up an item and move it, it's probably not considered real property and it doesn't come with the house. That is, unless you ask for it! This is important to know. If a buyer wants the refrigerator, but doesn't specifically ask for it to remain in the contract, the seller will likely remove it because it is personal property and not permanently attached.

Here are some examples. Do these come with the house?

Drapes- Not automatically. You must ask for them in the contract.
Kitchen Appliances- Maybe. Some, like the refrigerator and the microwave, may not be permanently attached and you could just pick them up and move them- they don't stay. However, the garbage disposal and the dishwasher are most likely hard-wired and considered real property. Note: If the microwave is built in and hard-wired it would stay.
Washer and Dryer- Not automatically. Even if the seller offers them in the listing, you should make sure and ask for them in the contract to make sure they stay if you want them.
Light Fixtures- Yes, they stay if hard-wired. The kind that hang on a hook and plug into the wall are considered personal property, though.
Bathroom Mirror- This can be tricky. It stays if permanently attached to the wall. If it is just hanging on a nail, it's technically personal property.

As you can see, there can be some confusion about this. That's why if there is something about the home that is important to you, make sure to include it in the contract. It is all negotiable anyway. If you really want the drapes, chandelier, or even a certain piece of furniture be sure to ask and make it part of your offer.

You should also know that if you ask for much of the personal property in your offer we may use what's called a "Bill of Sale Agreement". This will list the personal property on a separate form and keeps it outside of the actual sales contract. This is done to keep lenders from thinking that you are borrowing their money to buy a bunch of furniture, etc.

The imporant thing is to think about all of this up front. Otherwise you may find that you bought a home without any bathroom mirrors...

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Sell Your Home With Pictures

2007-02-23T06:47:00.000-06:00

When you're looking at home listings and come across one without a picture what do you generally do? Skip it. How about if there's only one picture from the street an it's not very good? Skip it too. So here's my burning question: WHY ARE THE SO MANY LISTINGS OUT THERE WITH TERRIBLE PICTURES OR NO PICTURES AT ALL!!!

Okay. I'll try to be calm. This is something that has baffled me for long before I became a Realtor. Digital cameras are fairly cheap, and you don't have to be a photographer to get a good picture. There are huge reasons to show buyers as many great things about a house as you can- and you can always find something!

1. A listing with no pictures will generally be overlooked by buyers AND Realtors. If I do think one of my buyers may be interested, I'll start by seeing if I can find a picture of the home with WebPro. (Go to this website and Click the WebPro icon) This page is hosted by the TN Property Assessor and has pictures of about any property I've looked up. Of course, it won't normally be a good picture, but I can at least see what the home looks like.

2. A listing with low quality pictures makes the home look low quality. (or at least the Realtor- ha!) This would include pictures with bad lighting or pictures that were uploaded upside down or off 90 degrees. I remember a picture of a home that had a large luxury van parked on the street in front of it. All you could see was some of the roof peeking out above the van. Unbelievable!

As a Realtor, I don't want to waste my buyer's time by taking them to a home that is not anything near what they wanted. That means if the pictures are bad or missing I'll have to go preview the home before I pass it along to my buyers. All of this extra work means that the home will likely take longer to sell and will have less people interested in it.

3. A listing with few pictures tells the buyer that there aren't many good things to look at. I had a recent client point out that if there aren't pictures of the kitchen or bathrooms they assume the worst. Me too! I'll admit, the kitchen may not be a selling point in some cases. However, it's usually possible find something else to include. The multiple listing service (or MLS) allows 10 pictures and I can always find 10 things about a house to show off- even if it's the park or convenient restaurant down the street.

4. Internet users want to see more. I go beyond the 10 pictures with a virtual tour for every listing. Going this extra step will allow buyers to get a much better feel for what the home is like. I've found this especially good for out of town buyers who are thinking of moving into Nashville. Sometimes homes are even purchased sight unseen by people seeing the home through a virtual tour.

Great pictures are the basics to marketing a home. It's square one. If you're interested in getting your home sold through great pictures and a virtual tour (and much more, by the way) please contact me or request a Free Home Value Report.

-Peter

www.nashvillecityhomes.com
REALTOR. City Home Specialist.

Get Your Stuff Out! (Please)

2007-02-22T05:50:00.000-06:00

It's always amazing to me how many homes on the market are just a few easy steps away from being in their top condition (whatever that is). Many times, just removing personal items and clutter will change the entire impression that the home gives. Here are a couple examples:

I just sold a home in Forest Hills that was vacant. It was a family home where the older parents had moved into a retirement community while the children took care of selling the home. The problem was- it still had many of the family's personal items and outdated furniture from decades ago. It wasn't dirty or in need of repair, it just felt like someone else's home. Later, when the home was empty, it felt much different and looked incredible. If they had cleared the contents sooner would they have sold it for more or quicker than the 6 months it was on the market? Who knows, but it wouldn't have hurt.

Another home I recently listed and sold was a fixer-upper that hadn't been lived in for over 2 years. However, all of the contents of the home were still there from when the home became vacant! Even though it was a home in need of some serious rehab, I knew it would show better if it was at least empty. We ended up having all the personal items removed and then sold it for full price on the second day!

When you're selling a home, you want it in the best possible condition to entice the most buyers to take a look. If possible, it's great to stage the home. Staging involves rearranging furniture, decluttering, etc to get as close as possible to being a model home showplace. You want to "wow" the buyer as they tour your home, not distract them with all of your family pictures and unusual collections.

This is especially true in this day of Internet home searches. Buyers make a lot of judgements based on the pictures (or lack of them). So it's best to have your home presented in the best possible way.

I remember hearing Dave Ramsey talking on his syndicated radio program about how you should move everything that you possibly can out of the house into a storage unit when your home is on the market. He said it should look like a model home and you'll even feel different living there because it won't feel like your home anymore.

That is the idea. It's not always possible, but many times the steps to making your home more appealing to buyers just takes a little extra attention and short-term inconvenience.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Two Homes of the Future

2007-02-20T05:44:00.000-06:00

In cities across the U.S. people are 'rediscovering' downtown living- forsaking the suburbs to live within walking distance of restaurants, parks and entertainment venues. This is definitely true in Nashville as we see downtown condos selling out rapidly and new construction everywhere.

The 2007 International Builder’s Show in Orlando highlighted this trend by building two different, yet incredible model homes on the same street in a historic part of Orlando. Both of the homes were built to show off the latest innovations and technologies in home building and reflect both the challenges and advantages to an 'in-city' home.

The New American Home, pictured left, is a completely new home, built to incorporate international style and yet blend in with the surrounding historic homes. The 3-story, "urban loft" home with roof plaza will feature 4,707 sq. ft. of air conditioned living area plus a 576 sq. ft suite above the detached garage. Sales price will be around $3 million.

The Renewed American Home, pictured right, was originally built in 1909. It was moved from its former site then fully renovated and expanded to 5860 sq. ft. of air conditioned living area, not to mention the basement and two-car garage. Though keeping some of its historic charm, the home includes the latest in automated controls from the lighting and zone audio systems to the security and safety systems. It's a marriage of a historical environment and a modern entertainment lifestyle. The home will also sell at around $3 million.

I know you want to see more pictures and get more information about these homes from the International Builder's Show. Just don't get too envious.

-Peter
http://www.nashvillecityhomes.com/
REALTOR. City Home Specialist.

Buyers, Be Armed!

2007-02-19T05:53:00.000-06:00

Armed with information, that is! As you browse homes on the internet and start venturing out to see them, how do you know when it's a good deal? How do you know that you won't get stuck with a "money pit" that will require massive repairs that you can't afford? How do you beat out the competition and get a contract on the home once you find it?

Here's how:
1. Work with a Realtor- I'll try not to be overly biased when I say this: I truly believe that you are at risk when you are unrepresented in a home purchase.

When a home is listed, the seller is already offering to pay for the buyer's representative. It won't cost you anything extra!
Why not have a professional on your side to help you negotiate and wade through the fine print to make sure your interests are protected?
A great Realtor will provide you with numerous tools so you can make well-informed decisions.

2. Look at a Comparative Market Analysis- Before I show a home to a buyer I do a comparative market analysis, or CMA. This CMA shows us what similar properties in that neighborhood have sold for so we can judge if the asking price makes sense. Without it, you have no basis for justifying the price.

3. Look up the tax records- I also pull the tax record for every home I show to a buyer. This extra piece of information tells us the sales history of the home and important facts like the recorded number of bedrooms and square footage. It's also helpful to know if the current owner bought it just a couple months ago to renovate and 'flip' or if it has been in one family for generations.

4. Be pre-approved for a loan- I wrote a recent article with more specifics about this, but it definitely needs to be mentioned here. When you're pre-approved, the home seller can know that a lender has looked at your finances and there should be no snags to you purchasing the home. This will be a huge advantage for you in situations where there are other competitive offers for the same home, which happens quite often.

5. Do a home inspection- This is a common part of the process, but shouldn't be overlooked. A great home inspector will give you a report of all the repairs that need to be made on a property and let you know about any 'red flags' that might need any further inspection. It is a fabulous tool and really helps with any fears that you have about the condition of the home. Cost usually starts around $250, but it is money very well spent.

6. Have your checkbook ready and be decisive- Once you've done some research and toured a few homes, you start to get a better idea of what is available and what you can expect to find. Now when you see a home that is a good buy, you'll know, because you're "armed"! At this point you should make sure to have a checkbook with you and enough funds to cover the earnest money check. Earnest money is basically a deposit that shows that you're a serious buyer and committed to seeing the process through to close.

It takes some extra effort and preparation, but it's all worth it to be in the best position possible to buy a home you love at the best price. If you're ready to get armed and serious about your home search, please call or email and we'll get started today!

-Peter

www.nashvillecityhomes.com
REALTOR. City Home Specialist.

Of Alleys and Septic Systems.

2007-02-16T07:34:00.000-06:00

I've learned a couple things about alleys and septic systems that I thought I'd share before I forgot. As a homeowner, you may never run into these problems, but my last two listings have had some unusual issues that had to be dealt with.

A Home Needing A Sewer Line...
The first home was a fixer upper that had been vacant for a couple years. When I listed it, the sellers told me that it had a septic tank. This was unusual since it was located in the middle of town. Apparently, when the sewer lines were installed years ago, the homeowners were not required to connect, though most did.

I knew this would be an issue to anyone that might purchase the home, but in speaking with my broker I learned it may even be required to be connected before it could be sold. To confirm this and get some more answers, I called the folks at the Metro Health Department who said this was true. If the property was sold, the buyer would not receive clean title to it until it was connected to the sewer line.

If the home was not located on a sewer line it wouldn't be an issue, but at this home, the sewer ran right through the backyard. It was an ordeal getting it done, but we got the sewer line finished by closing and it's all behind us now!

Building a Fence in the Alley...
My other recent listing was unusual in that there was an old alley that ran beside the home, in addition to the one behind. This side alley was left from earlier times when they were used for fire truck access. It hadn't been used for years and the sellers wanted to enclose it with a privacy fence.

In cases such as this, the city unofficially allows fences, etc as long as the adjacent homeowners allow it. I say "unofficially" because there are no official documents allowing the fence, and it is still a public right of way. This means if the city ever does need to use the alley, they have that right and they may remove the fence, etc. at without replacing it. The homeowner is at risk for the improvements.

For an alley to be officially closed, an ordinance must be passed that abandons the alley. When this occurs all the adjacent owners dived the alley right down the middle.

You have to have patience in dealing with Metro Government on these sort of issues. You'll probably get transferred to two or three other departments before getting the answers you were calling about. It seems that it has gotten a little better over the past few years as they have greatly improved their website with lots of direct numbers and even email addresses for the people you need to talk to.

I remember getting a building permit for some home remodeling in 2003 and being so frustrated because I could never get anyone on the phone. I'm sure that still happens, but I do see improvement. It is a bureaucracy after all.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Take the Mystery Out of Home Prices.

2007-02-13T05:48:00.000-06:00

It's always interesting to talk with people about the price of their home. It's usually a tedious subject because the homeowner often already has a price in mind. Perhaps they know of one down the street that sold for a high amount, or they've been renovating and need to price it high enough to make a profit. Sometimes they just want to get enough to pay back numerous home equity loans.

These methods may make some sense, but they may also be totally inaccurate. The prices for homes in the United States, like most other products, are based on supply and demand. When there are lots of buyers demanding a home on your street (with limited supply) the prices will go up. However, if no one wants to live on your street the prices will drop.

Even though the press may report home sales stats like the daily Dow Jones average, local home price trends typically move slower and even tend to lag behind large economic changes. When the changes do happen they may be felt most in the luxury market as opposed to those in the the lower price ranges due to a more steady demand for housing a these prices.

So, how do you really know what your home is worth? Good question. Here's the answer: It's worth whatever someone is willing to pay for it.

Before you say that was a stupid answer let me explain. Your homes value is not based on what you spent on repairs or how much you need to buy your next home. It's based on recent comparable home sales in your neighborhood.

For a Realtor to research this we use what's known as a Comparative Market Analysis, or CMA. We can pull historical data for all the surrounding homes that have sold recently and get an average price per square foot. Using the square footage of your home we can get an estimate of what your home may be worth.

To go further, we'll look at those homes and pick out the ones that are most like your home. These are called "comparable homes". If you live in a subdivision where all the homes are the same basic size and floor plan, this is pretty easy. However, if you live in a historic neighborhood where every home is unique and of varying size, it may be more of a challenge.

This is where a Realtor's experience and opinion come in. The CMA is the starting point. It shows you the cold, hard sales data to get the price in the right ballpark. Then, based on the unique selling features of a home and your specific wants and needs, the final price is arrived at.

Of course, the home seller ultimately decides on the price. These are all tools to aid in that decision. When actually preparing to list a home for sale, I will go much deeper into this process to really understand the neighborhood trends and what buyers are wanting. I'll have to get into this on another day.

Intrigued? Interested in what your home may be worth? Click here to request a Free Home Value Report.

Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Get Pre-Approved. (Buying a home, Step 1)

2007-02-09T06:04:00.000-06:00

Many people, even myself, enjoy browsing homes. It's fun to imagine a different lifestyle living in a different neighborhood or having that gourmet kitchen you've always wanted. Somewhere between this pastime and having full-fledged "house fever", it's best to stop for a second and get pre-approved.

Before I go too far, I should talk about the difference between being pre-qualified and being pre-approved. Pre-qualification is less formal and can be accomplished in just a few minutes on the phone with a lender. The prequalified amount is based on information you provide about your income and debts. This is not a commitment from the mortgage company, but rather just a starting point to let you know how much house you can afford.

Pre-approval goes much deeper. This step involves providing the lender with financial statements and an extensive look at your credit history. The mortgage company may offer you some different loan packages based on your situation and then issue the pre-approval letter. This letter tells the home sellers that you are eligible for the loan and that there shouldn't be any obstacles financing it.

As you can imagine, with a pre-approval letter, you as the home buyer are in a much better position to make an offer on a property. The sellers can be more assured that your financing will come through and that the sale will actually happen. They know you're serious and that your offer is worth a serious look.

In addition, YOU know what you can afford. It's sad when buyers have looked at $300k homes and picked out several they like only to find out they can only afford up to $250k. This can easily be avoided by getting pre-approved up front.

If you're ready to make this step please call or email. I'd be happy to give you some referrals for some great mortgage lenders who will help you further understand the process and match you with the best loan for your situation. After all, if you're really serious about buying a home, why wouldn't you get pre-approved?

Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Nashville, Then and Now

2007-01-31T08:15:00.000-06:00

I found myself strolling through Barnes & Noble last weekend while the kids were playing at the train table and came across a very interesting book called Nashville Then and Now. I’m always curious about the history of downtown and so I picked it up. It was full of pictures comparing scenes from a hundred years ago to the same location today.

For example, did you know that where Riverfront Park currently is, there used to be a busy wharf where boats would load and unload their goods? Here’s a neat picture along 1st avenue from shortly after the Civil War.

It was also interesting to learn that the North side of the capital used to filled with slums and crime until Nashville, the nation’s first urban renewal city, cleared the area in 1949 and built James Robertson Parkway. Before it was redeveloped it was often reffered to as "Hell's Half Acre".

In addition to seeing some of the changes that have taken place in Nashville over the last century, it’s also fascinating to see what still remains. Some of the pictures of Historic Edgefield looked remarkably similar to current ones. Also, many of the downtown buildings look just the same such as the Customs House, and the Hume Fogg Magnet school with it’s origins as the first public high school in Nashville.

I love exploring the history of Nashville, especially as it relates to real estate and the buildings that we still have today. It would be interesting to see how Nashville continues to grow and change over the next 100 years. I wonder if Barnes and Noble will still be around...

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Excited About Skyscrapers.

2007-01-26T07:58:00.000-06:00

I’m not sure why it is, but I really like tall buildings. A few years ago I was addicted to a computer game called Sim City. It was the quest to build as many huge buildings a possible. (Hey- who has time for that these days?)

Now I’m getting my thrills watching all the development planned for Nashville. There are several high-rise towers planned for Nashville, but the one I’m most excited about is the Signature Tower.

Tony Giarratana along with Novare Group of Atlanta is developing the structure, which is slated to be 70 stories and over 1,000 feet tall. That’s 400 feet taller than the BellSouth Tower and taller than any buildings in the Southeast including Atlanta’s Bank of America Plaza.

It, along with the host of other projects slated for downtown, are a testament to the growing economy and strong market that Nashville is enjoying, including being rated by Kiplinger's as the #1 smart place to live.

I was fortunate to attend a presentation of the Signature Tower by Tony Giarratana himself. It was exciting to hear about this magnificent structure from a man so passionate about it.

Giarratana explained that the tower would be the “best of the best”, truly a world class building with all the amenities and upscale finishes that you’d expect in a project of this caliber. He expected the construction to be about a 3-year process with occupancy beginning in 2009. Condominiums range from 900 to a massive 7000 square feet with 85% of them being corner units.

Recent news articles report a slight delay, but it plans are still underway to begin construction July 1st.

If you haven’t seen them already, you have to see the renderings of Nashville’s projected skyline. I especially like the one showing the finished Encore building and the new Sounds ballpark.

What will it cost you for a piece of this landmark? The 1 bedroom units start at $423k and the penthouse unit that has over 5000 sq. ft. of terrace in the sky will sell for around $7.5 million! If you’re ready to write that check, please call me right away and I’ll get the paperwork started…

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Begin With the End in Sight- Profit!

2007-01-25T05:32:00.000-06:00

If you’ve been staying up late at night watching home shows about “flipping” houses for piles of cash and have decided you’re ready to give it a shot, I’ve got some advice for you- "wait". I don’t mean that you shouldn’t follow through, but you should take a few moments (maybe even days or weeks) to think first! That is, if you want to actually make money at it.

I work with homebuyers and sellers who are players in this business and I’ve come to realize that making a profit flipping homes is learned skill. Of course there are those that get such a good bargain that it’s hard to not make money, but most of the time it’s not that easy. It’s a business venture based on hard numbers and budgets. To maximize your profits you need to know what your goals are and have a roadmap to get there.

Gary Keller, author of The Millionaire Real Estate Investor, says, “When you ‘buy it right’ you make your money going in.”

Kevin Myers agrees in his book Buy It, Fix It Sell It… Profit. He writes, “You, the investor, are in control of every aspect of the transaction from start to finish. You will know going into a deal what it will cost to fix up the property and for how much the property will sell for in the end. Best of all, you will know exactly what your profit will be, because you have included it in your buying decision.”

That’s the idea and it’s not easy. To “buy it right” you have to have an intimate knowledge of home values and what it costs you, both in labor and materials, to prepare a home for sale. To accomplish this, the best real estate investors have a network of people at hand. From Realtors and mortgage lenders to painters and carpenters it takes a host of trusted team members to make the venture a success. So, like I said, it’s a learned skill.

If you’ve read Stephen Covey’s famous 7 Habits of Highly Effective People you should be familiar with what he calls “Begin With the End in Mind”. It’s the same principle that I’m talking about, except he’s applying it more broadly.

Covey says, “How different our lives are when we really know what is deeply important to us, and, keeping that picture in mind, we manage ourselves each day to be and to do what really matters most.”

When applied to real estate investing or any type of business, it means that we have clear goals and endpoints in mind when we start the venture. Sounds like good advice though not as simple as it sounds.

Ready to Jump In?
Whether you’re an experienced real estate investor or just starting out, please let me know what you’re looking for so I can be on your team and contact you when I come across a property that may fit the bill. Also, when your project is complete, I can develop a strategic marketing plan to sell it for the most money in the shortest amount of time.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

East Nashville 2006 Real Estate Trends

2007-01-23T08:02:00.000-06:00

East Nashville had a good year in 2006. To begin 2007, I did quite a bit of research comparing neighborhoods using RealTracs multiple listing service historical data. East Nashville’s average price-per-square-foot increased by 16.45%! This is great news for those in East Nashville as a whole, but let's take a closer look to see how some of the individual neighborhoods fared.

Those who are familiar with East Nashville know that there are many distinct neighborhoods within this area of town. Most popular are the historical areas such as Lockeland Springs, Historic Edgefield, and Eastwood Neighbors where Victorian and Craftsman homes from the early 1900’s are the norm. Some home buyers lean more toward the quieter Rosebank or Fortland Park neighborhoods full of brick ranch homes from the 50’s and 60’s nearer the river. All enjoy a growing number of local businesses and highly rated restaurants mixed with the convenience of living close to downtown.

In the graph I noted the average sales prices, but more importantly, the average prices-per-square-foot, the standard figure used by Realtors in estimating home values. Take a look at the graph to see some of my findings.

Some other notes:
- Riverwood/Haysboro area homes sold 40% faster
in 2006, tying with Lockeland Springs for the least avg. days on the market at 42.
- Selling after an avg. of 63 days on the market, homes in Historic
Edgefield took 40% longer to sell in 2006.

I knew East Nashville was doing well, but some of these numbers surprised me. Of course, Eastwood Neighbors was the big winner at a 37.68% increase! At first I thought this was a mistake, so I did the research again. It’s correct. As evidence, in 2005, Eastwood Neighbors had no homes sell for more than $145/sq.ft. However, in 2006 there were twenty-two that sold at over $145/sq.ft with two them over $184/sq.ft.

So, What’s YOUR home worth?
The above averages and statistics are helpful in analyzing neighborhood trends, but when it comes to valuing your house we have to dig a lot deeper. Many factors affect the price that your home will sell for: size, age, condition, amenities, room layout and, of course, location. If you’re wondering what your home is worth, please call or email me for a free consultation. I’m happy to take a look at your home and get you a report of comparable homes with an estimate of what it might sell for based on recent sales and inventory. You may also request a FREE HOME VALUATION.

Interested in other Nashville neighborhoods? Click here for my article on the broader Nashville market.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Charities Giving Down Payment Assistance

2007-01-22T06:06:00.000-06:00

I’m currently working with a couple clients that are getting FHA insured loans. This program offers assistance to homebuyers that may not qualify for typical conforming loans with competitive rates. They also offer loans with down payments as low as 3% and even that can be paid for by a grant from a charity. What!!?? A charity?

Yes. FHA regulations state that a home seller cannot directly contribute to a buyer’s down payment. However, they can contribute to a non-profit charity, which, in turn, gives down payment assistance to the buyer. It sounds a little shady, but it is a very common practice.

Of course the sellers of the home aren’t going to contribute to this ‘down payment charity’ for the good of all mankind! This contribution is just added to the sales price. That means if a buyer wants to purchase a $100,000 home and needs the 3% down payment assistance, they should offer –roughly- $103,000 for it.

It is common for buyers to make such requests. Typically a buyer may offer a higher price if the sellers will pay a portion of the buyer’s closing costs. Some sellers will balk at this, but most are just interested in the NET, or what is left for the Seller after all those costs are paid.

This system is, for the most part, good. The sellers get their home sold, and the buyer gets a home without a lot of up-front cash. However, one problem that may arise is that the price may have been inflated to account for these costs. For example, our $103,000 sale from above would be more accurately recorded as a $100,000 sale. The problem could be that the property may not appraise for that amount and the deal would fall through, or the buyer may be generally paying too much for a home in order to finance his/her downpayment into the deal.

I was speaking to one mortgage broker recently who works with many first time homebuyers. He said that probably 85% of his business deals with FHA loans. A couple of the lenders I work with have mentioned that the FHA has loosened their eligibility requirements a little over recent years making it easier for people and homes to qualify. This means I'm sure to see a lot more FHA loans in my clients futures.

For more information, click here for a great article I found from BankRate.com.

Have questions? Contact me here.

Have a ‘charitable’ day,

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.