Nashville- One of Ten Least Expensive for Home Ownership

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

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

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??

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

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

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?

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