Low Inventory Real Estate Market

Low Inventory Real Estate Market

  If you are like me, you live in a real estate market with very low inventory. What happens when you need more room, your kitchen is outdated, or you really want a swimming pool and you can’t find a house on the market that fits your needs? Or, maybe with the rising interest rates you found a great house but now the higher interest rates put it out of reach. If you currently own your home and your market has appreciated since you purchased, chances are you have equity. A great option is a home equity loan. There are many things you can do to improve your home or remodel to fit your current needs or desires. You might want to add a patio to give you more outdoor living space. You may want to add that swimming pool you’ve always wanted. Or you just might need a new roof. You may have heard about a home equity loan, but another option is a home renovation loan. There are FHA, VA, and conventional products. In a nutshell, these loans will allow you to renovate your home by lending on the improved value, not the current value. They can be a bit more complicated but if you have a loan officer and mortgage company that knows how to navigate the process, it can be a wonderful solution. Home renovation loans are great for those larger projects where you may be gutting kitchens and bathrooms or adding square footage. Of course, as a Realtor, I would hope we could find a house for you to buy that would fit your needs and be within budget, but it is not always possible, especially in a price range that is very popular. I have great vendors I work with that I recommend to clients for both types of loans. In fact, most of them can handle loans out of state so feel free to reach out if you can’t find your dream home but think you could make your current home work for a few more years with a little love. I am happy to refer you to professionals that can give you the hard facts about these loans and how they may work for...

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Inspiration

Inspiration

  I live and work in Nashville TN. Our nickname is Music City. People move here every day, in hopes of becoming either a songwriter or a star. As a songwriter, or a writer in general, you need inspiration. Something that will, seemingly, just come out of nowhere. Something that hits you between the eyes and speaks to you. It may be a trip that you took, it may be a sunset. It could be a heartbreak or an illness. So many things in our daily lives can inspire us if we are open to them. It can be the same in real estate. When you are looking to buy or sell a house, you have an inspiration. Something came into play that helped you make that decision. Did you take a job in a different area and want to move closer to work? Is your family growing and need more space? Are your aging parents needing help and you are looking to combine two households? Whatever your inspiration, buying and selling real estate can be stressful, but it doesn’t have to be. Keep your eye on the end game. Keep focused on the inspiration that got you here in the first place. If that inspiration is negative, then focus on how you will feel once it’s over and that chapter is closed. Some of the most award winning, popular, beautiful songs are written out of a negative place so don’t be afraid to go through it. When you come out on the other side, you will be a better, stronger version of yourself and you’ll have new inspirations for a new season. Once you get where you are going, there are entirely new inspirations to be found. What color will you paint the bedroom? What kind of stools will you put at the breakfast bar? What type of painting or art will look best in the living room? You may want to take from travels you have been on and infuse other cultures into your world or you may collect things you have seen at art fairs. However you enjoy to add life to your home, make it a piece of you. I believe, and hear from others, that when you walk into a home, it has a feel. You can feel the energy. What better energy than that of yourself. When others come into your home, they see a piece of you. They see your personality play out in the things that surround them. Make it yours and don’t apologize for it. Who cares if you don’t use this year’s “color of the year” or have the latest trend in countertops in your kitchen. If you love...

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You’re Not All That

You’re Not All That

  You’ve met them. Those people that the minute you meet them you know they think they were born to bless others with their presence. They think they can do nothing wrong and you are stupid if you think otherwise. Don’t you just want to tell them, “you’re not all that”? Yeah, it goes the same for some people in the real estate market. They think that their $20,000 under asking price, cash offer, first day on the market should make Sellers run to sign the papers and ask if they want all their furniture too. We have a great real estate market in the Nashville area. Over the past two years, I have taken many calls from real estate investors from other states that heard that Nashville was a great market and a great place to invest. They are looking for a “deal”. Well, those days are gone for now. Prices have risen, and Sellers are smart. I have had to explain to more than one person that while cash is great, if it doesn’t accompany a strong offer in other ways, it just might be “prince” instead of “king”. Certainly, there are circumstances where a cash offer makes most sense but if the offer price is a lowball offer, most Sellers will say, “No, thank you”. Think of it this way, if you are a Seller and your house is on the market for 2 days. You get two offers. One is for full price, is contingent on the Buyer’s 90% conventional loan and they are pre-approved by a reputable lender. The other offer is for $15,000 below asking price but is all cash. In most cases, Sellers would take the risk to make $15,000 more. However, the offer may have included things like no appraisal, or no inspection, in which case, the Seller may want to consider value and condition of their home prior to making that decision. I try to get my Buyers to be reasonable in their offers. It is never a good idea to offend or make a Seller mad with the spirit of negotiation in mind. Some people know it’s not personal while others take it very personally and are very offended by a lowball offer when a property is priced well and a Buyer is just out fishing for deals. Life and real estate is about compromise – negotiation. If you start off offending, chances are not good that you will come to a resolution and an outcome that you are hoping for. So, just because you have cash and think your *you know what* doesn’t *you know what*, doesn’t mean that you will get that house. They may just tell...

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Realtors: Are you Being Robbed?

Realtors: Are you Being Robbed?

  If you are a Realtor, there’s a good chance you are being robbed. If you know a Realtor, there’s a good chance they’re being robbed. Realtors work hard. (Disclaimer: I understand this will not apply to all!) Realtors can work an unreasonable number of hours. Realtors can put many hours of work in, shell out hundreds and thousands of dollars, and in the end, not get paid a dime. Realtors use their gas, often times buy meals and spend hours away from their family on nights and weekends to show buyers houses and give their expert advice. Most of the time that ends in a sale. Sometimes, it does not. A Realtor can also spend time and money on photographs, video, professional measurements, flyers, ads, etc. on a listing. Sometimes that effort and those costs result in a sale, sometimes it doesn’t. When it doesn’t, that Realtor has lost money. When the efforts result in a closing, it may seem that all is well and that it makes up for the times when money is lost. Well, that can depend on what company a Realtor is affiliated with. A traditional real estate firm will take a split of the commission earned, typically 10%-50%. So, a commission earned of $3000.00 could be lower than $1500.00 when it hits the Realtor’s bank account. Flat fee based companies, yes, such as United Real Estate Music City are becoming more popular among producers. Realtors are independent contractors, the CEO’s of their own business. They are looking at their bottom line and realizing they are giving away a lot of money. Just like clients don’t like to know they are leaving money on the table, Realtors are becoming more protective of their earned income. I have Realtors tell me they like the fact that they don’t have to pay for marketing, contract to close, or put their own listings into MLS. I understand that. It is nice to just go out and sell and not have to worry about the behind the scenes. I would challenge, though, that a vendor could be paid per transaction to handle those tasks and it would be much more cost effective than giving away a large percentage of hard earned income. If you are a Realtor and are tired of being robbed, or you know a Realtor and you fear they are being robbed, give me a call. It won’t hurt to have a conversation about how you can add more to your bottom line and put more in your bank account this...

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‘Tis the Season

‘Tis the Season

  To be jolly…or to buy a house! So many companies and industries slow down this time of year. Offices close for days at a time, the phone barely rings and employees get caught up on their personal errands. Unless you are a Realtor in the Nashville area. People are out buying houses. They are out in droves. One of my agents has three buyers looking for properties and can’t find what they are looking for. We are receiving calls to list properties and calls to purchase properties. ‘Tis the season in Nashville. So many potential Sellers think they should wait until Spring. They think it is a bad time to sell when it’s cold and gets dark at 5:00 PM. Not so. The Buyers who are looking now are serious. Why else would they want to be out when it’s cold and gets dark at 5:00 PM? It is a little extra hassle during the holidays, I understand. However, your house probably looks very homey if it is decorated with lights and festive items. There is something about coming into a house that looks warm and like it could be in a Christmas movie (more like “It’s a Wonderful Life” and less like “Christmas Vacation”). Buyers are less likely to be “looky-loo’s” so you may get less showings but the ones you will get will be more qualified and more seriously interested in your home even before walking in the door. Buyers need to realize that there will be less to choose from during this season, however, the properties you will find will typically not be the leftovers you may get in September when all the other great houses have been scooped up during Spring and Summer. They are likely people who need to move. A lot of companies transfer at the beginning of the year and a lot of Sellers get compensated to move. More often than not, the Sellers that are selling in this season are willing to bend a little more than a Seller in a time when they are receiving multiple offers during a hot selling season. So, when you’re marking things off your long list of to-do’s this season, make sure you consult your Realtor because this may be the best time to buy or sell. Happy...

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Nashville Investment Property

Nashville Investment Property

  Nashville is the “It” city. It has been ranked the #1 housing market in the nation. Depending on the day, we hear that 80-100 people move to Nashville every day. We were named the #1 Minor League Baseball city. We are in the Top 20 cities for tech jobs, #6 for young professionals and #7 for millennials. We are among the Top 10 cities in which to launch a career and Nashville has the third fastest growing large Metro economy. The list goes on and on. But, with all these accolades, does that mean that Nashville is a great place to buy investment property? Yes and no. With Nashville’s influx of residents, we have also had low inventory. Because a lot of those are millennials and young professionals, the demand for properties under $200,000 has increased significantly. Typically, this is where investors like to buy. They can get in a property for a decent price, rent it out for an attractive price, and still get a nice return on their investment every month. We were getting multiple calls a week for a while from people all across the country that wanted to invest in Nashville. Most used the word that investors dream about, “deal.” “I want to get a deal.” “I’m looking for a deal.” “Where can I find a deal?” and “If you find a deal, I’ll buy it.” Well, the truth of the matter is, there really aren’t many, if any, “deals” in Nashville right now. First time home buyers, young professionals, millennials and investors are all competing over the same property. Investors that have cash may be more attractive to sellers, however, cash is not always king and not all investors have cash. Some sellers don’t want to sell to an investor and will take an offer from an owner-occupant over an investor because they either want to help the “little man” or they don’t like the thought of renters living in the home they have loved for years. Another pitfall of investors is thinking that cash is king – no matter the offer. Sellers won’t necessarily take thousands less for their home just to have it close in two weeks. Some would rather wait another 2- 3 weeks and make more in the long run. If you plan on investing but you are getting a loan, you are in the same boat, for the most part, that owner-occupants are in and you will find the Nashville market a tough one to compete in. The best thing to do is to find the properties before they go on the market or at very least, the same day. Find a Realtor that diligently hunts for properties...

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