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.
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 It's a little outdated, but a great way to explore the area.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.
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.
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.
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
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.
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.
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.
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.
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...
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.
"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?
-Peter
www.NashvilleCityHomes.com
REALTOR. City Home Specialist.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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’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.
