Nashville, Then and Now

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.

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!

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

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

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.