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

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 I have agents tell me unpublished information on nearly every listing I call on.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/

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((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/))

Some recent fun in the last few weeks…

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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Nashville: Most affordable and stable market in the country?

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.

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"

Seller’s market in 2009?

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?