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 What happens when you need more room, your kitchen is outdated, or you really want a swimming pool and you can’t find a house on the market that fits your needs?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...

Read More

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...

Read More

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...

Read More

Why Realtors Should Hang Out

Why Realtors Should Hang Out

  Anyone who knows me knows that I am a networker. I network with CEO’s, musicians, blue collar workers, association and Chamber members, neighbors, and, yes, Realtors. When new real estate agents ask me for advice, I tell them they need to network with other agents. They often look at me like I’m crazy. They say, “I’m not going to sell a house to another Realtor.” Oh, but you ARE! Here are five reasons why Realtors should hang out. You can get the inside scoop on upcoming listings. I am in networks of Realtors that send me listings that are not yet on MLS for the public to see. This is hugely helpful in a competitive market when I have clients looking for a very popular type home. I can be ready to show it immediately when it is available. Sometimes they’ll let you in a listing FIRST.Every once in a while, clients prefer to take the hassle out of listing their house on MLS. They don’t want tons of people going through their house and would rather a few select people see it if it is likely to bring a good, quick offer. If you have a relationship with the listing agent, you may get to be one of the select few and save your client the hassle and disappointment of competing with other buyers. You may win for your client in a competitive market.I have had more than one instance where a Seller has chosen my Buyer’s contract over another one that may have even been slightly better because I had a relationship with their agent. When a Realtor knows that the agent representing the other party is professional and easy to work with, it can go a long way with clients who want a stress-free experience. You may find a house that isn’t listed for your Buyer.It is frustrating for agents and for buyers when the market is so hot and we see properties being listed on MLS and go under contract as soon as they go live. Chances are, they knew about it before it was listed. If you have a Buyer with a particular need, send it out to your Realtor network. There is likely someone who has a client who is looking to sell a property that fits that criteria and it may be possible to get it under contract before anyone else knows about it. The bad stuff is easier to deal with.Not all transactions are easy. Not all clients are reasonable. So, when the bad stuff happens, having a relationship with the other Realtor can make all the difference. If you know and respect each other, solutions can be found even...

Read More

What do Contingencies Mean in a Real Estate Contract?

What do Contingencies Mean in a Real Estate Contract?

  When you are buying or selling a house, many contingencies can be written in the contract. What are they and what do contingencies mean? Let’s take a look at the five most common. Financing. Financing contingencies are the most common type of contingency. It is also the one that in almost all cases, does not get removed until the actual closing takes place, everyone has signed and the property changes ownership. It means that the lender or mortgage company has to fully approve and underwrite the loan and that if the loan is not approved for any reason, the Buyer can terminate the contract and receive their earnest/trust money back unless the contract accounts for it differently. Inspection. I always advise my Buyers to have the home inspected. Not only a general home inspection but if anything comes up on the inspection that may need to be evaluated further, specific contractors or professionals can also inspect those items. Radon, mold, and pest inspections can also be beneficial and can be part of the inspection contingency. Raw land may require other types of inspections and these are included as well. If the Buyer is not satisfied, for any reason, either with the findings, or the negotiations associated with the inspections, this contingency gives them a way out of buying the property. Appraisal. Appraisal contingencies keep buyers from overpaying for the property. Most contracts with appraisal contingencies in them allow the Buyer to terminate the agreement if the property does not appraise for at least the agreed to purchase price in the contract. As we discussed previously, the parties can negotiate if they want to move forward with executing the remainder of the contract but it does give the Buyer the right to walk away if they so choose. Sale of Home. This contingency can be used if a Buyer has another house they need or would like to sell prior to closing on a new one. Not all Sellers like to accept a home sale contingency – especially if the market is hot where they are but the market where the Buyer’s property is, isn’t. The contingency can be used if the Buyer’s property is currently on the market, is not currently on the market, or is already under contract, just waiting to close. Sellers should ask questions and perhaps make certain requirements of the Buyer if they choose to accept this type of contingency. Spousal approval. In a hot real estate market, it is necessary to move quickly in making an offer. If there is more than one Buyer but only one can make it to see the property, this contingency can be used. Typically, a Seller will...

Read More