signs we must observe

Nashville Flooding: What do we do now?

2010-05-02T17:58:00.004-05:00

After seeing historic flooding in Nashville TN, Franklin TN, and our surrounding communities, many will need a helping hand; especially if reports are true that it may get worse before it gets better.

Whether you are concerned for yourself and your family, or for your neighbors - please see the guide from the American Red Cross “Repairing Your Flooded Home.”
1) Take Care of Yourself First
2) Give Your Home First Aid
3) Get Organized
4) Dry Out Your Home
5) Restore Your Utilities
6) Clean Up
7) Check on Financial Assistance, etc

If you are looking to get involved for those around you – and we appreciate it so much – Hands on Nashville is thinking the same thing (please feel free to add updates below as more opportunities arise around the region): (HT @GiveEmKel) OR DONATE.

For firsthand accounts, check into this grouped photo blog @Flickr.

Thank you again to @nashvillest and everyone who contributed to #othersituation2010, #flood2010, #splashville, #Nashvenice, #nashlantis

((what is working with Kevin like?))

Kindest regards,

Kevin Pellatiro
(615)714-7918
kpellatiro@realtracs.com

Hoping to help you take advantage of the market – when you are ready.
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Keller Williams Realty
Each Office is Independently Owned and Operated.
9175 Carothers Pky Suite 110
Franklin, TN 37067
Office: (615) 778-1818

More than schools or curriculum - Teachers Matter

2010-01-10T09:42:00.002-06:00

From your list of wonderful influences in your earliest classrooms, to mine (Mrs. Bloom in Homeroom, Mr. Martin and Mr. Foggianno in Math, Miss Jones in American History, Tim Paggard with English Lit) the obvious takeaway is that we need more of these influencers in our schools today. The next step might be the question that Amanda Ripley asks for the Atlantic magazine in their latest issue: What Makes a Great Teacher?

“One outfit in America has been systematically pursuing this mystery for more than a decade—tracking hundreds of thousands of kids, and analyzing why some teachers can move those kids three grade levels ahead in one year and others can’t. That organization, interestingly, is not a school district.”

Data has a way of being objective, or at least has the potential to be used that way. In a city that needs all the help it can get with it's Metro Schools, can Nashville make the change by taking a cue from the nation’s deepest well of analytics for educators?

“First, great teachers tended to set big goals for their students. They were also perpetually looking for ways to improve their effectiveness. For example, when Farr called up teachers who were making remarkable gains and asked to visit their classrooms, he noticed he’d get a similar response from all of them: “They’d say, ‘You’re welcome to come, but I have to warn you—I am in the middle of just blowing up my classroom structure and changing my reading workshop because I think it’s not working as well as it could.’ When you hear that over and over, and you don’t hear that from other teachers, you start to form a hypothesis.” Great teachers, he concluded, constantly reevaluate what they are doing.

Superstar teachers had four other tendencies in common: they avidly recruited students and their families into the process; they maintained focus, ensuring that everything they did contributed to student learning; they planned exhaustively and purposefully—for the next day or the year ahead—by working backward from the desired outcome; and they worked relentlessly, refusing to surrender to the combined menaces of poverty, bureaucracy, and budgetary shortfalls.”

Kevin Pellatiro
Hoping to help you take advantage of the market – when you are ready.
(615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

5 Offers on a $550,000 foreclosure in Brentwood, $499k Short Sale Sold, and deals to be had…

2010-01-06T11:28:00.003-06:00

There is good reason for responsible concern in housing today with shaky unemployment / economy numbers, shadow inventories from the banks, and homes taking longer to sell for less – but the on the ground activity is still more active than the popular buzz.

People are taking advantage of the market, even with these freezing temperatures:

This Brentwood foreclosure is listed for $550,000 (just over the median home value in Brentwood Tennessee) and has five offers in less than a week. It likely sold, and ready to have its new homeowners within 30 days. Below is the market data for this STEAL…

Another short sale in Brentwood is about to make a lucky homeowner (of a near custom quality residence in the Woodlands at Copperstone) very happy. Almost perfect condition, with beautiful old growth trees in the backyard.

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The deals are out there, but the market is moving quickly below the water line. If you really want a steal – be ready to act NOW. Cash is king, prepared and experienced lending can be almost as good.

Are you ready and prepared to take advantage of this market before all the spring competition?

Kevin Pellatiro
Hoping to help you take advantage of the market – when you are ready.
(615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

Nashville: 2,700 NEW Jobs Created?

2009-11-30T13:24:00.003-06:00

Nashville may see 2,700 new jobs and see Market Center Management Company update one of our most visible downtown intersections - at Commerce and Broadway - with the Nashville Medical Trade Center. There are still two huge contingencies 1) pre-lease the space and 2) Metro Council approving $585 million Downtown Convention Center project… but Nashville and the Ryman Auditorium are ready for the new neighbors – and like anyone right now; we want the influx of new jobs.

Rendings of the exterior of the proposed Nashville Medical Trade Center. Market Center Management Company announced today the location for its $250 million Nashville Medical Trade Center project: the site of the current Nashville Convention Center at 601 Commerce Street in downtown Nashville. The medical center will feature permanent manufacturer showrooms, temporary exhibition space, and conference facilities within a 2 million square foot complex. (Courtesy Market Center Management Company)

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Kevin Pellatiro
Hoping to help you take advantage of the market – when you are ready.
(615) 714-7918 kpellatiro@realtracs.com

Bank Error in Your Favor

2009-11-09T10:57:00.003-06:00

Okay, not an actual bank error (perhaps that depends on our political persuasions, grin), but it feels about that good for Rob and Linda. They woke up to the news that they are suddenly going to receive $6,500 on their new home purchase (later this month). Not bad when you are expanding your living space - and who doesn’t want all the help we can get when talking on the expense of a move?

How come? What is the NEW tax credit about? Check with your tax guys and gals to confirm… 1) If you are a first time homebuyer, you are still going to receive the $8,000 tax credit through April 2010. 2) The new addition: If you have lived in your own home for five consecutive years over the last eight years – you are getting $6,500 if you are under contract before April 30th 2010 (just under 6 months from today). 3) If you are a builder, you can get back some of taxes you paid over the last five years.

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Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If
President Obama has signed the bill by the time I go to settlement; will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

Question: I am an eligible first time homebuyer. I entered into a contract to purchase on
November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

National Association of REALTORS® Government Affairs Division

$7,290 by April 30th – Move Up Buyers, 1st Time Home Buyers

2009-10-27T18:55:00.003-05:00

Well, it looks like we are going to see a $7,290 version of the tax credit through April 30th of next year (contract date, close by the end of June 2010). NOT JUST FOR FIRST TIME HOMBUYERS, but also for move up buyers (who plan to stay 5 years, make under $125,000 individuals / $250,000 households).

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Hoping to help you take advantage of the market – when you are ready.

Kevin Pellatiro
(615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

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Home Buyer Tax Credit to be Extended and Eligibility Expanded
by CalculatedRisk on 10/27/2009 06:03:00 PM

…and why don't agents like to get calls from buyers directly? Can a low offer be considered 'offensive'?

2009-10-26T20:18:00.004-05:00

1) Guy is a home buyer from Sacramento who asks “I have a problem and I admit it... I call agents directly and why don't agents like to get call from buyers directly?”

THIS IS A GOOD THING. You should feel comfortable to call on any home you choose, whenever you choose - with or without an agent representing you. If you know your agent is responsive, informative, and helps you value properties for your specific needs – by all means, let us call too. I have agents tell me unpublished information on nearly every listing I call on. Still, if you want to know more… call and ask. My homeowners would love to know that you are interested, and would love the chance for me to tell you more about the home they are trying to sell. And if you are looking for an agent, tell them. If you are not, tell them that too :-)

2) Christelle in San Diego, California asked about closing costs for REO and Foreclosed properties. If the home is already at a price that is getting multiple offers, should I ask for closing costs?

If you are making an offer on a bank owned property that is going to have a bunch of people bidding on it – you might want to make yourself seem like the *easiest person in the world* to deal with. For instance:
‘Sale of Home Contingency’ to a bank might sound just like ‘your in-laws are coming to stay with you for the weekend.’
‘Closing costs,’ especially over a certain amount, might sound just like ‘you best friends annoying husband is ALSO joining you gals for drinks after work.’
‘Cash’ or a well written offer that involves a loan, might sounds like those magical words (at least to those of us addicted to the game, grin) ‘go play golf.’

Now we are having a little fun with this, but you really want to have a strategy when formulating your offer. The details can help you, or unknowingly hurt you. Just be sure to ask a lot of questions about how each detail works to your advantage – or against you. Just this month my clients in north Nashville were told about how much easier their offer was to accept; this wasn’t due to more money, it was less than anticipated actually, but it was us being more intentional with our details than the next guy. Give yourself the best chance that you can.

3) Jeremy asks “Can a low offer be considered 'offensive'?
This almost entirely based on the absorption rate (whether anybody involved knows it or not). Good market or bad, we all want to know if the house is going to sell. As home buyers, we want to know what we can reasonably offer and still get a deal; protect our investment. As home sellers, we want the most money that anyone would pay; getting the best return on our investment. How can we predict that though? Well, we can take an educated guess based on the number of home available divided by the number of homes selling each month (general area, surrounding community, specific trends for your home). It’s basically your gut feel - something to turn up to HIGH when home shopping or home selling – but with very real data.

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Hoping to help you take advantage of the market – when you are ready.

Kevin Pellatiro
(615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

((These are the top three questions this week as asked by real people from all over the country involved in the housing market and posting over at Trulia.com: http://www.truliablog.com/2008/04/28/trulia-voices-top-10-questions-of-the-week-8/))

Mortgage Rates below 5%

2009-10-01T22:48:00.002-05:00

In hopes of saving you a little money each month, I wanted you to know that mortgage rates are below five percent in many cases.

National Averages Overnight: 5.16% for 30 year fixed / 4.56% 15 year fixed

A local bank that I checked with today shows even better (zero origination fee, zero discount points): 15 year fixed at 4.25% / 20 year fixed at 4.75% / 30 year fixed at 4.875%

If you currently have an interest rate around 6% or even higher, now might be the time to call your loan officer. If you are not sure of your rate, call me and I’ll help you check your previous closing file to make sure you are getting the best deal possible.

This article suggest that “Not too long from now, it's going to be harder to refinance.”

Need a recommendation for a lender you can trust here locally?

kevin pellatiro (615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

Numbers Recovering :-)

2009-09-25T15:57:00.005-05:00

Below is today’s look at our national real estate market from Calculated Risk. Keep an eye on his “Distressing Gap” …the difference between how many resale homes are sold, and how many new homes are sold. The national market can’t tell yet -because there are more foreclosures coming to test it - but we appear to be in actual, living recovery. Really.

Not yet above the waterline, but actually moving on the right direct; the proverbial bottom. See the direction of the graphs in the article below. The numbers for 2009 actually show this year is about normal for existing home turnover, but that inventory is still too high nationwide – with more shadow inventory to come.

The real question that the data can't predict:
Do you feel that values will hold in your new neighborhood?

Would you like to run the specific numbers together and find out what the numbers show?

http://www.calculatedriskblog.com/2009/09/existing-home-turnover-ratio-and.html

New in West Meade?

2009-09-24T14:21:00.003-05:00

Built in 2007 but barely lived in – this open, roomy layout with vaulted ceilings and a private, treed backyard offers exactly what we love about a West Meade setting… BUT NEW! Its mostly main level living with both the master and the bonus room downstairs, large kitchen open to the great room, and your own office away from it all. Did I mention we have to sell?

:: Coming Soon :: Please feel free to have your agent call or e-mail me directly at…

kevin pellatiro (615)714-7918 kpellatiro@realtracs.com http://signswemustobserve.blogspot.com/

Looking in McKay’s Mill for lush, mature landscaping that is ready today?

2009-09-14T10:41:00.005-05:00

1232 Habersham Way in McKay’s Mill

Very flexible and can be out in a hurry. Very well maintained and upgraded everything from wider hardwoods, granite, and surround sound –all of it. Jones Company has this plan under contract for almost $400k with less upgrades and no extra landscaping.

Are you considering the Cool Springs area??

Wait a minute: A comment on House Prices

2009-08-27T09:17:00.003-05:00

Below is a re-post I thought we may need to keep in mind as we see housing numbers climb for sunshine during these glorious summer months. Nashville and our surrounding markets, as a whole, are doing fairly well - very well in some cases - but we are better than most in 2009 (nationally). As you and those you know plan how to take advantage of this market, remember to gather as much information as possible. Then use it... article below from Bill McBride, Calculated Risk (Hat tip: "A comment on House Prices" by CalculatedRisk on 8/25/2009 09:39:00 PM)

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I've seen story after story today suggesting the bottom is in for house prices.

This isn't like 2005 when it was almost certain that prices would fall, and fall sharply. Now we are much closer to the bottom than to the top in prices (for some metrics, see House Prices: Real Prices, Price-to-Rent, and Price-to-Income)

In some areas prices have probably already hit bottom - like some non-bubble areas, and some bubble areas with significant foreclosure activity.

But I think many areas, especially the mid-to-high priced bubble areas, there will be further price declines. I'm not as certain as I was in 2005, but I think these price declines will drag down the Case-Shiller indexes - and I don't think the price bottom is in.

I do not have a crystal ball, but

...It seems there are many more foreclosures coming. Some of this depends on the success of the modification programs, but the Q2 MBA delinquency report shows a growing number of homeowners in the problem pipeline.

And the Fitch report yesterday suggests few of these delinquent homeowners will cure.That seems to mean rising foreclosures, and more distressed inventory. The MBA Chief Economist Jay Brinkmann thinks foreclosures will peak at the end of 2010.

Historically prices bottom about the same time as foreclosure activity peaks. Maybe it will be different this time - maybe the modification programs will significantly reduce foreclosures - maybe prices will bottom before foreclosures peak ... but I'll go with the normal pattern.

And on the demand side, there has been a surge in first-time homebuyer activity. There was significant pent up demand from potential first-time buyers who were priced out of the market in 2004-2006, and then were afraid to buy as prices fell. But demand from these buyers will probably wane later this year, even if another tax credit is enacted.

Just like the "cash-for-clunkers" demand declined after the initial burst.

For mid-to-high priced homes, there are few move-up buyers (or so it would seem since so many low end homes were distress sales). Right now the months-of-supply in many of these areas is well into double figures, suggesting further price declines.

And on unemployment: most forecasts are for unemployment to rise into next year some time. Historically house prices do not bottom until after unemployment peaks. That seems especially likely now since so many homeowners are underwater. Once again I'll go with the normal pattern.

Also looking back at previous housing busts (like I did earlier today looking at the early '90s) there are usually some months during the bust with increasing prices. So no one should expect every month to be negative during the bust ... especially are prices get closer to the bottom.

I could be wrong - this isn't as certain as in 2005 - but I don't think house prices have bottomed. If I'm proven wrong, I'll be the first to admit it.

Best to all.

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Are we getting there? The Economic Upside of 2009

2009-08-18T20:41:00.004-05:00

We could be in market recovery.

Doug Short - of dshort.com, Motley Fool contributor - and Steve Cassaday - President and CEO of Cassaday & Company - have chosen to share an interesting conversation with the rest of us… They are not doing so as someone trying to sell us, and so saying good things (it a great time to buy, sign here), but by established market trends and experience (see these figures, the sun will come out tomorrow).

And when these two talk, it might be a good idea for us to listen. Doug Short has been charting financial data for over 25 years. He tried convincing us to ‘store up’ for this mess back in 2007. Steve Cassaday is one of the best Financial Advisors in the country – not back when, but right now.

These guys talking RECOVERY is something to hope for heading into winter. Honest considerations that our markets are showings real signs of life, of resilience. Could we look back on these times as the initial growth period?

For the record, previous upswings far outpace the downturns.

In their example for our consideration, the four worst market drops in history are lined up at their deepest, darkest lows (current S&P low of March 9th 2009 used):

Here's to a better tomorrow, today.

Renovation Financing: An Opportunity For Everyone

2009-08-18T16:46:00.005-05:00

We have all seen properties that aren’t in the greatest of shape, but is there a way to realize that potential? With renovation financing, you can turn a property you are thinking of buying – or the one you already own – into the home you have always wanted.

All types of homebuyers can enjoy the benefits of renovation financing programs. Any qualified customer who plans to purchase or refinance a primary residence, vacation home or an investment property to make renovations is eligible to apply. Qualified buyers can choose a fixed or adjustable-rate loan that is based on the after-improved value of the property. The loan covers all the costs of minor and major repairs/additions/renovations, as well as the purchase price or any existing liens, minus the required borrower investment.

The most common renovation loan is the Streamline 203(K). This is an FHA renovation loan that simplifies the process of getting a mortgage and includes the cost of renovations – all in one smooth transaction. This loan provides flexibility with loan amounts up to 110 percent of the home’s appraised value and renovation amounts of up to $35,000. The process is fast and easy and helps the homebuyer purchase and repair a home sooner. And, since this is an FHA loan, the applicable down payment for qualified buyers is 3.5 percent beginning Jan. 1, 2009.

Renovation loans are not limited to just the Streamline 203(K), the standard FHA 203(K) and HomeStyle are also available. HomeStyle is a conventional renovation loan that can be used by investors to rehab owner-occupied or investment properties. These programs are similar to the Streamline 203(K) with minor differences, such as a greater amount of work that can be done, how renovation funds are dispersed and the third-party consultant to oversee the project.

Oftentimes, a common question concerning renovation financing is, “What can be included?” Almost any kind of repair or improvement can be financed as part of a renovation loan. Some examples include major appliances, an HVAC, structural improvements, finishing a basement, remodeling kitchens and baths and more. In certain situations, an entire home may need to be fully renovated. There are renovation programs that can cover the entire process. Funds are disbursed with the condition that all work must be started within 30 days of closing, cannot stop for a period of more than 30 days and must be completed within six months (1).

A primary component in the renovation process is the property. For homebuyers planning to buy a new property, renovation financing can expand their opportunities. Buyers may find that they are able to choose a house they never considered because they can now allow for the renovation costs when they purchase it. For homeowners who are eager to improve their property, accessing renovation financing can bring them closer to turning their plans into reality.
Once customers have either secured a property or determined that they are going to make improvements to an existing property, they will want to contact a renovation specialist. He/she will tell customers everything they need to do and what documentation they need to supply in order to get their loan approved quickly.

One of the most important steps in the renovation process is for the customer to select a contractor. It is advisable to get recommendations and price quotes from several reputable contractors. In most states, the contractor selected must be licensed and insured. The selected contractor will also need to be made aware of the project scope and guidelines. A renovation specialist can help explain the process and provide the customer with the required documents that the customer and contractor will need to complete throughout the project.

The completed work write-up or detailed bid, contractor documents and appraisal are submitted by the renovation specialist for final property approval. Once the approval process is complete and any outstanding conditions are met, the loan can proceed to closing and the renovations can begin.

Properties in almost any condition are eligible for renovation financing. Qualified customers can transform a “before” with a loan based on the upgraded “after.”

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Call a renovation specialist today! By Rob Weber -- a renovation specialist with Wells Fargo Home Mortgage. He can be reached at 847.404.7006 or by e-mail at rob.weber@well sfargo.com. (article from Chicago Agent Magazine)

Copyright 2009 Agent Publishing LLC
1. Nine months is allowable on certain transactions exceeding $50,000 in repairs. Customers should check with their renovation specialist to see if they qualify for the longer term if needed. This information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Well s Fargo Bank, N.A.
© 2009 Well s Fargo Bank, N.A. All Rights Reserved. #62724, 1/09-5/09. An Equal Housing Lender.

What's your headline for this one...

2009-08-17T19:28:00.005-05:00

A Rolls Royce Phantom (2008 model MSRP = $340,000) in the parking lot of the Newport, RI Wal-Mart (captured by John Rowles, Mainrhode.com, on his phone Saturday).

Best headline for this photo we’ve heard so far?

“I hate my new job.”

((for fun: the old Grey Poupon commercial))

Turn mid 300’s into mid 500’s? Cool Springs East in Franklin TN

2009-08-15T22:14:00.006-05:00

If you love the convenience of Cool Springs in Franklin (just off of Carother’s), there is an interesting property that could use your love and affection.

Now if you idea of home renovation sounds like slow forms of torture, or a good way to sap the color from life as we know it – understood. This one is a candidate for hiring a professional AND rehab lending (yes, it still exists) to fix up and enjoy. Completed by a professional (read: you still play golf on the weekends at Nashville Golf and Athletic around the corner, visit Lowes and Home Depot for light bulbs ONLY), and still finish up under *this year’s* market values.

Consider that the top sale in the neighborhood fetched a ‘wow’ $160/ft, but we still wouldn’t count on going to the top. Still, having shown it a few times, know that this house was in fantastic shape and kitchen was stunning. Upgrades and floor plan were not untouchable though; just a well done, well cared for home. Two other relevant sales have seen an equally ‘wow’ $110/ft, but one had serious unfinished space (a full floor actually) and the other had two floors of blank, hard-to-use square footage (cut up by the dormers upstairs, and hard to value in the windowless basement). Back to this Cool Springs home – if you could find your way into buying it right, put significant money into it (through cash, or readily available bank lending) – it could produce a property calmly valued at $140/ft. Note: Two other homes in the neighborhood just sold at ~$150/ft this year; one just six weeks ago on a terrible lot.

$140/ft = $560,000+ Interested in seeing past that BEAUTIFUL wall paper (grin)?

Some recent fun in the last few weeks…

2009-08-10T08:01:00.003-05:00

Nashville :: home sold on the first day. Crazy. Well prepared and beautiful landscaping to compliment stunning 60’ maybe 70’ foot trees in the backyard. Did we give it away? Not a chance - received the second highest price in the neighborhood, outperforming half a dozen comparable homes this year; plus the several still available (we were second only to a recently renovated version of our home).

Nashville :: we paid 20% less than the average home price (27% below the median). Compared to a neighborhood home that closed within three weeks of our purchase – that meant 1,000 square feet… for FREE (about 2.5 two car garages worth of house). Pretty good first time purchase, especially with $8,000 still to come in the mail.

Williamson County :: THE house (the one we all wanted to hang out at as kids - pool, spa, game room, amazing private setting - even a community lake, the whole nine) was just purchased for $45,000 less than anything else in the neighborhood. Love it.

Thompson Station :: home sells in 30 days thanks to homeowner’s light décor, hard work (with three kiddos no less! Wow) and intense commitment to the showing process. Getting price? About $7,000 more than identical floor plan on the same street (that recently sold).

Murfreesboro :: Short sale purchase is the lowest ‘purchase price’ and ‘price per square foot’ in this highly desirable ‘Boro neighborhood… lowest of all *16 transactions* in 2009! Top ten signs you got great deal – 16 other people paid more :-) Another pretty good first time purchase, with $8,000 in the mail.

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Are you or someone you know looking to protect yourself in the sale of your home? How about ensuring that you buy your next home right?

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Are you ready to take advantage of the market?

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128 days left. 18 weeks.

2009-07-24T11:25:00.002-05:00

Typically, you want to allow 60 days to find the right home -- 30 to 45 more days to go through the inspection and loan process. Roughly, only 38 days remaining before a 90 day process might put the $8,000.00 stimulus check (set to expire November 30th) at risk for you first time home buyers.

Its going to be a log jam at the end of November. Builders, lenders, and title companies are going to be bursting at the seams to meet the deadline. Avoid the strain and stress of standing in that line -- start looking online and getting inside your favorite properties sooner rather than later.
Here is a convenient search site to save your top ten list. Drive by those favorites today, and start narrowing in on your preferred neighborhoods. Do you need help discovering which areas might be best for you? Send an e-mail with your questions, start asking your friends about their commutes to work/play, and get in your car (grin)! Driving to the houses you like online can really show you the difference between which neighborhoods you like, and which you can strike from your list right away.

Most importantly, try and write down the answer to your crucial search question: What am I looking for in my next home?

1.

2.

3.

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Nashville: Most affordable and stable market in the country?

2009-07-08T09:45:00.003-05:00

From Thomas Wood, business writer at Nashville Post: Among large metro areas, Nashville has one of the most stable housing markets in the country. That’s the word from PMI Mortgage Insurance Co., which has just put out its latest quarterly Economic and Real Estate Trends Report.

The report goes on to explain national woes "Florida, California, Nevada and Arizona continue to have the highest risk scores - 36 of the most risky MSAs are located in these four states - but an increased risk of lower future prices is now spreading across all regions of the nation, due to the significant increases in unemployment and foreclosure rates."

Report available here.

Murfreesboro continues growth: 'Boro ranks 12th in U.S.

2009-07-03T09:11:00.002-05:00

Its not all good news in these challenging times, or in this story, but the ‘Boro continues to attract:

"Murfreesboro is centrally located in Tennessee, adjacent to Nashville and along I-24," vice president of economic development with the Rutherford County Chamber of Commerce Weber said. "This central location makes the community easily accessible to newcomers." She noted that "the Middle Tennessee economy has not experienced the significant losses other areas in the U.S. are experiencing. As a result, some people may be relocating here looking for opportunity."

Murfreesboro Mayor Tommy Bragg said he thinks attractive opportunities for employment as well as educational, religious and recreational pursuits continue to draw people here. "I continue to think that our growth will be sustained over the coming years because of low tax rates, educational opportunities, a stable government, and it's a great place to live and work"

Life, Liberty and the pursuit of Happiness

2009-07-03T09:03:00.010-05:00

Having been called "one of the best-known sentences in the English language" and "the most potent and consequential words in American history" -- the passage below has often been used to promote the rights of marginalized groups, representing a moral standard for which the United States should strive:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

In a certain, nostalgic way, and by Thomas Jefferson's own admission, the Declaration contained no original ideas; but was instead a statement of sentiments widely shared by supporters of the American Revolution. As the son of a former United States Navy Frogman, nephew and cousin to US Marines, and someone who calls the Volunteer state home - thank you for our Independence Day - have a great 4th of July.

(text credit: Wikimedia Foundation, Inc ; video credit 2002 Declaration of Independence, Inc)

Sweeeeeetbriar. (Alan Jackson puts home on the market)

2009-07-01T19:17:00.005-05:00

Wow. There are homes, then there are MTV style ‘Cribs’ …and then there are the few that are truly striking.

Sweetbriar, Alan Jackson’s Grassland area home here in Franklin, is one of those… (take a look, c'mon its fun).

1301 Moran Road may be the grandest estate our Nashville area has to offer. What do you think of the pool? The open land complete with ponds? The GARAGE?

Thanks to the Tennessean and their team for the fun:
Jackson's estate, known as Sweetbriar, sits on 135 acres along the Harpeth River. The 19,000 square foot home includes six bedrooms, seven full baths and two half baths, along with a nine-car garage. There is a full basketball court and a boathouse. Two ponds are on the property.

How to Claim the $8,000 Home Buyer Tax Credit of 2009

2009-06-16T06:46:00.003-05:00

author Flexo from Consumerism Commentary blog:

Thanks to the American Recovery and Reinvestment Act of 2009, formerly known as the “stimulus bill,” first-time home buyers are eligible for a refundable tax credit of up to $8,000 this year. Here is what you need to know in order to claim the credit.

Who qualifies as a first-time homebuyer?
A “first-time homebuyer” is anyone who has not owned a house in the past three years. Furthermore, if you don’t live in the house purchased this year for the three years following the purchase, you will have to pay the credit back to the government. This credit is intended for people who live in their own houses, not house flippers or speculators.

What is a refundable tax credit?
When tax professionals and the IRS talk about “refundable tax credits,” they do not mean that you have to pay the credit back to the government. A refundable tax credit means that if you owe less tax than the amount of the tax credit, you will receive a refund — even if you have no other tax liability for 2008. That’s not a bad deal. In other words, if you owe $200 to the government before claiming the credit, and you qualify for $8,000 for the first-time home buyer credit, rather than paying the government, you will receive a check for $7,800. Even if you had no income in 2008, owed no tax, and purchased a qualifying house in 2009, the government will send you a check for $8,000.

What if I bought the house last year?
If you purchased a house in 2008 and were a first-time buyer, you qualify for the older refundable tax credit with a maximum of $7,500. This does require that you pay the $7,500 tax credit back over the course of fifteen years, starting two years after the date of the purchase. This is still a good deal. As time goes on, thanks to inflation, you are paying back this “loan” with money that has smaller purchasing power.

To qualify for the new credit with the maximum of $8,000, you must be a first-time home buyer and the sale must take place between January 1, 2009 and November 30, 2009.

Do I qualify for the full $8,000?
The actual credit you will receive is 10% of the purchase price of the home or $8,000, whichever amount is lower. If your modified adjusted gross income (MAGI) as a single taxpayer is over $75,000 or if your income as a married couple is over $150,000, your credit will be phased out. The credit will be eliminated if your income is above $95,000 (single) or $170,000 (married).

How do I claim the home buyer tax credit?
You can claim this credit when filing either your 2008 or your 2009 income tax return. For example, if you believe that your income level in 2009 will be too high to qualify for the credit but you already know that your 2008 income is low enough to qualify for the full amount of the credit, you can claim the credit on your 2008 income tax return.

Complete IRS Form 5405 to determine the credit amount. Here is the official revised copy of Form 5405 [pdf] that takes the new $8,000 home buyer tax credit into account. Take the bottom line amount on Form 5405 and enter the number on line 69 of your Form 1040. Not all online tax preparation software has been updated to include instructions for this new credit. I checked H&R Block Tax Cut, TaxACT, and TurboTax Online, and as of last night all three include only the rules for last year’s $7,500 credit. You may wish to wait for the software to catch up with the IRS before completing and filing your 2008 income tax return. Or, if you don’t want to wait, you can do your taxes by hand. See new updates at the bottom of this article for TaxACT and TurboTax.

If you have filed your taxes already, you will be required to file an amended income tax return if you want to receive the credit this year with your 2008 refund.

Please keep in mind that I am not a tax professional and none of what is written here or anywhere else on Consumerism Commentary (or SignsWeMustObserve, grin) should be considered tax advice. You are solely responsible for your own tax return, and any questions should always be directed to your tax accountant or the IRS.

Another affordable neighborhood selling well?

2009-06-15T17:08:00.004-05:00

'Move up buyers' is a term that real estate markets treasure. One first time homebuyer’s purchase domino’s all the way up to the sale of that 'house on the hill.' In the case of our national real estate market, this endangered species is feared to be dead or dieing due to all of the foreclosure, short-sale and REO sales. Essentially, after the bank sells you a home, they are not going out and buying another - so the ‘circle of life’ housing market stalls. perhaps cancelling what would have been five to six more home sales. Stifling demand, crushing values.

Enter our earlier post about the Blackman area of Murfreesboro (thirty minutes southeast of Nashville, Tennessee). Under five months of inventory. Stabilizing. Selling.

Anomaly? Nope.

Hendersonville’s own Walton Ferry Elementary is showing more than just ‘signs of life’ - its selling too. Pretty well in fact. About 35 houses are available in this lake community near Sander's Ferry, but 31 have already sold in 2009, with eight more under contract or pending sale. Again, we see a desirable community performing well in the midst of a tough market.
Dozens of families were able to move up to the houses they wanted, and many were able to do so quickly in this north of Nashville gem.

Will the results of this activity find its way into the rest of the market? What does it look like for all of Nashville?

Seller’s market in 2009?

2009-06-13T08:05:00.006-05:00

We may need to keep an eye on the Blackman area in Murfreesboro - its selling well. Not the same market that we are seeing often enough, but follow the numbers….

The area as a whole only shows 4.68 months of inventory. Six months is considered a balanced market; more on the shelf is a buyer's market, less to choose from is a seller's market. At four months/eight months, we'll see prices affected up or down (respectively). So 4.68 months of available homes means that the Blackman area is stabilizing.. wait... actually improving - selling.

To give you some examples of the homes to choose from, here are the available homes in the area between $180,000 and $250,000 (market data).

This might be another example of how certain areas (read: desirable locations), perform in the best of times or in the worst of times. Located between Murfreesboro and Franklin, just west of I-24, and along Highway 96 (close to Interstate 840) - convenience is king. Just ask the investors and small business owners behind The Avenue, the newest major shopping area in Middle Tennessee.

Murfreesboro’s median home price ($154,600) is 14% below the national median price ($180,100), and its selling well. Plenty of short sales, foreclosures, and REOs - don’t get me wrong - but if we see the entry level markets around Nashville stabilizing (or even improving), does this mean we can start to try and track “the bottom” in our market as a whole?

Yeah, think so (grin).

Is your neighborhood selling this well? Why or why not?

Cribs, Music City style (April 2009)

2009-06-12T19:05:00.010-05:00

As Thomas Wood points out for the CityPaper, two of Nashville’s NFL families made our list in April. But don’t just sit on the sidelines, take a look at these Nashville Cribs.

Realistically, for higher end homes (greater than $800,000) what have sales been like In Franklin in 2009?

2009-06-10T21:54:00.009-05:00

This is another recent conversation (public forum online) that might hopefully help you protect your money...

Q: Realistically, for higher end homes (greater than $800,000) what have sales been like In Franklin in 2009?

A: Not good. 18 months of inventory, and prices falling until that number reaches a balance. In LaurelBrooke, for instance (one of the very best neighborhoods our region has to offer), that means a drop of over 20% in average price since 2007 (median sales price too). Good time to be on the buy side, but its a rough market to make a successfully sale within - unless you analyze what is selling.

Would you like to discuss how recent sales might protect your investment? For instance, what is the 'constant' in the handful of homes sold this year in LaurelBrooke?

Economic Perspective and the Four Bad Bears

2009-06-10T21:35:00.005-05:00

The S&P 500 is 40% below the October 2007 high but 38.8% above the March 9th low. Are we in a new bull market, or is this a bear market rally?

Take a look at Doug Short’s fascinating take on what history might tell us about the current state of affairs.

Nashville’s Gulch neighborhood on of the best in the country?

2009-06-04T11:49:00.002-05:00

Men’s Journal gave the Gulch honorable mention on their Best Neighborhoods story…

Nashville, TN
For a century the Gulch was just a barren railroad corridor, then redevelopment brought it back from the dead. It also created the first LEED Neighborhood Development certification in the South — all while preserving some history. Don’t miss the Station Inn, the mother church of bluegrass, now flanked by new condos and sushi bars.

The ‘can’t miss’ to add: Tomato Basil Bisque from Urban Flats.

Come get your $8,000 stimulus money in Nashville right NOW. Like, today.

2009-05-29T18:07:00.006-05:00

This just came out today - so we'll have to see exactly how the details will work - but this might mean that you would see the $8,000 First-Time Home Buyer Tax Credit as a benefit immediately. In other words, at the closing table you could pay any closing costs (and maybe part of your down payment) with a "free" $8,000.

Not bad for Uncle Sam, eh?

Wow. Now this might be really be a good time to buy RIGHT...

Spring Hill workers vote for GM deal

2009-05-29T07:51:00.004-05:00

Workers at UAW Local 1853 in Spring Hill, Tennessee, which represents some 3,000 workers, voted 88.2 percent in favor of the amendment, an official said.

By Geert De Lombaerde, Posted on May 29, 2009 at 6:17 am

"The men and women of United Auto Workers Local 1853 have overwhelmingly approved the union’s proposed new deal with General Motors, which will give the UAW a stake in the company."

Hopefully good news for our local economy and the very real families affected by these economic times.

That tourist in downtown Franklin just saved us $322

2009-05-27T08:33:00.004-05:00

Did you know that in an average Williamson County day, tourists spend $687,890?? As a result of this local tourist spending, each Williamson County household pays $322 less in local and state taxes. Oh, and 2,250 jobs are created.

((…according to the latest "fact sheet" compiled by Dr. Steve Morse, Director and Economist for the Tourism Institute at the University of Tennessee Knoxville. According to the report, which analyzes 2007 visitor spending in Tennessee, tourists spent an average $687,890 per day on hotels, transportation, restaurants, retail, recreation and entertainment in Williamson County.))

Does your business or company have an event that could enjoy the convenience of Cool Springs, and the charm of Franklin?
http://www.visitwilliamson.com/

Where should I buy in Brentwood?

2009-05-22T00:18:00.006-05:00

A recent, public, discussion with a local Brentwood homebuyer that I hope might help you in finding the right home, at the right price here in the Nashville area:

Chris (buyer): If a buyer had the opportunity to buy at the same price point in Bonbrook and Highland Park, what would the better subdivision be?

Kevin (realtor): Location should be a major factor in any real estate purchase, along side the numbers. The location of Highland Park has a broader appeal than Bonbrook due to the proximity to I-65. The direction of the values in Bonbrook seems less desirable to me than those of Highland Park.

Given the price ranges, do you mind me asking which other neighborhoods you have been considering (there may be a few more to add to your list)?

---

Chris (buyer): Kevin, To answer your question about other subdivisions being considered, our search has been exhaustive and comprehensive - I feel as though we've looked virtually everywhere. Inglehame Farms, Chenoweth, Lansdown, Bonbrook, Carronbridge, Montclair, Governors Club, Saratoga Hills, Fountainbrook - the list goes on and on.

We totally agree with you on the direction of the values in Bonbrook, however, this seems to be holding true for most of the homes in the aforementioned subdivisions. Despite comps, many homes are still being listed on the market at well above neighborhood values, which is interesting to us. I don't know that this is an issue simply in Bonbrook - based on market data, I think it's an issue for most of the neighborhoods in Brentwood, which could explain why the market is comparatively slower to what it was. If homes were truly priced to sell based on comps or relevant market data, I believe the Nashville market would be in better shape (with less inventory).

Sorry for the tangent!

---

Kevin (realtor): Having just helped a great family make a similar relocation move in the last few weeks, I feel your pain (grin). Your searches have quite a bit in common - even the frustration with our market’s response to the times. There really are a few neighborhoods that continue to perform better than others, and while the quality of condition is a key component - location has proven to be king once again in this buyer’s market.

We found significant differences between what homeowners paid two and three years ago - versus what they were able to sell for today - in various Brentwood neighborhoods vs. other Brentwood neighborhoods. My hope is that your agent continues to give you straight forward, accurate information on the differences between what neighborhood A and neighborhood B have been doing yesterday, and today.

The trends are there in Brentwood. If only looking back, they can help us stay inline with market expectations moving forward. Trust your gut -- and the reasonable numbers. If there are any questions I can be more specific on, please let me know via e-mail or phone.

---

Does this help you in your search? Do you have questions?

---

Hacking it out in Brentwood... in the $200,000s??

2009-05-11T16:25:00.003-05:00

This Brentwood rehab might be a steal, if you have the guts for it. Its ROUGH. Past clients will assure you - if I start with that, I mean that (grin). Full renovation needed. Still, if you are looking for trees, trees, trees and actual privacy in Brentwood (no easy task) -- it’s hard to beat this opportunity for…
1) a private neighborhood (feels like Forest Hills or Leiper's Fork)
2) convenient location off Hillsboro Road
3) Grassland/Grassland school zones (elementary school and middle school)

If you count yourself among the truly brave, or have put yourself in a position to strike on a deal like this one in today’s market, go and take a look at this diamond in the rough (not my listing). May even be a fit for 'construction to perm' or FHA renovation lending. We would need to steal it to make it worth the upside, but that’s always a possibility, right?

The Giving Tree (Shel Silverstein)

2009-05-10T07:29:00.002-05:00

Happy Mother’s Day. Thank you Mom, congratulations Shannon. And for a quick trip down memory lane... The Giving Tree (Shel Silverstein)

Cribs, Music City style

2009-05-09T15:01:00.010-05:00

A top ten list of our local homes of flair. Certainly worth browsing if you have a few minutes (credit to Nashville City Paper for the fun). Some impressive Nashville and Brentwood luxury neighborhoods to keep in mind when our ship comes in.

A good variety too; from a country club mansion in the Governor's Club, a historic Belle Meade estate being fully restored, even a high-end foreclosure that Suntrust had to move, but how about the swank downtown condo to boot??

Are Nashville area home values down 7% or up 5%? Yes.

2009-05-08T21:20:00.006-05:00

In looking at the ‘average sale price’ for Franklin home values over the last five years, you’ll find the headline above to be right on the money. For example, these figures from our popular Fieldstone Farms neighborhood at Hillsboro Road in the Grassland Middle School zone:
Average Sales Price in…
2005 $217,292 - 193 homes sold
2006 $332,455 - 171 homes sold
2007 $325,343 - 158 homes sold
2008 $313,238 - 122 homes sold
2009* $291,184*- 31* homes contracted or having sold so far (*a LOT to happen in the next 3-4 months)

Down 7% so far this year, which should improve in the next 60 days, 12 homes are getting ready to close and showings are picking up now; you should see momentum over the coming summer months. In terms of your money, if you purchased in ‘05 or before (~80% of the neighborhood) you’ve edged up a slow five percent in that time (condo averages in Franklin have been hit by 11% so far this winter, but show a 14% gain since 2005). The market is actually moving better now than this past winter.

As it stands today, there are 6.3 months of homes available in Fieldstone Farms. That represents (roughly) the same amount of buyers and sellers, so the values look likely to stay steady or slightly better this summer. Hopefully this information protects you as a homeowner, or as a homebuyer, and you can adjust your strategies according to what is actually happening. A much better method than traditional ‘gut feel’ or hearsay.

Would you like to discuss this, and more dollar-specific strategies, for your home - or - in the neighborhoods you are looking to buy?

Thinking of that perfect match for tonight’s barbecue?

2009-05-08T12:17:00.005-05:00

Tennessee Wine Country for sale
“We have the largest producing commercial vineyard in Tennessee. Ten times larger than any vineyard in the state,” said owner Mike Frizzell. “Prospective buyers will reap monetary benefits of this year’s harvest and invest in a highly prized vineyard lifestyle.”

A newly remodeled 3 bedroom, 1.5 bath country home is located on the property. The ranch style home boasts a spacious sunroom perfect for relaxation. Nestled within a grove of trees, the home provides beautiful views of the vineyards and offers a quaint layout ideal for either a permanent residence or temporary stay. The charming residence contains all the modern comforts of home while maintaining the characteristics of a country retreat. (still shots here on youtube)

Halo Notch Estate is located approximately 8 miles off of Interstate 75, mid-way between Chattanooga and Knoxville, in the Overhill Heritage area.

Housing Headed South

2009-05-08T08:34:00.005-05:00

So typically, the worse the news in real estate - the more I trust it (grin).

Too many contributors to the dialogue are compromised; national associations, real estate companies, corporate builders and local realtors. Still, in a recent example from John Wasik on Bloomberg.com, (author: The Cul-de-Sac Syndrome - an incisive look at the potentially damaging consequences and hidden costs of America's suburban lifestyle) the facts don‘t seem to be… facts.

"Lenders are demanding a 20 percent deposit for home purchases, and want impeccable credit ratings." This may be what is truth outside of my little world, but this is not the case here in Nashville. Not at all. Is this what you are seeing in your neck of the woods?

"They are only 44 million strong, not as wealthy and even more in debt from college loans." An aside: Will this ‘buster-dip’ create another boom in housing (decades from now) once the following generation, estimated to be larger than the boomers, comes through?

"…it shows that more than half of all new construction is in the South, where the cost of housing and living is significantly lower than in the Northeast, Midwest and on the West Coast." ALL for this, being here in the South (grin), but isn’t this more a sign of our knee jerk reaction? Isn’t that same guy who is buying a more affordable home in the south (right now) going to wake up in ten years and say its time to go back to sunny Southern California or Florida?