From the National Association of REALTORS

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.

It seems that the tax credit deadline for homebuyer’s tax credit may be extended for buyers to CLOSE on their homes.  If you did not have your contract accepted by April 30, 2010, this does NOT apply to you. The new deadline if signed by President Obama will be September 30, 2010 for Nashville (and other national) buyers to close on their home.  There are still more steps to go, so check back for more updates.

So, curiosity may have you asking, why would it take over 60 days to close a home that was under contract on or before April 30, 2010.  Here’s a list of some of the things that can affect the closing in the current market.

1.  The buyer is in contract on a short sale.  The process has slowed down due to lack of staff, rise of short sales nationally and influx of tax credit contracts.

2.  The lender cannot close on time.  Lenders are pushed to the maximum right now.  Many downsized their processing and underwriting departments when the economy went south.  Now that this spike has occurred, many simply cannot close on time.

3.  Repairs take longer than the time allotted.  Yesterday, I heard a story from an agent.  His buyer ran into contract to meet the deadline with no thoughts to the home’s deeper condition.  He made the deadline; however, the home had an inspection contingency.  After the inspection, all parties found out the repairs needed were pretty hefty.  The buyer didn’t want to “walk on the deal,” and the seller was willing to make the repairs.  Those repairs are going to take quite some time.  Then the appraiser has to get in there.  The inspector has to come back.  You get the idea…

Update 5/4/2010 6:15 p.m. Here’s the number for FEMA Nashville Flood Claims.
800-621-FEMA

Register for claims beginning Wednesday, May 5, 2010 here.

I‘m already starting to get a few calls and questions about water damage and homeownership in the Nashville area after the floods that are currently rising in Nashville.  Here are the things you should remember after the waters recede.

While Nashville has not been declared a Federal Disaster area at this blog time, here is a link to what FEMA set up to Disaster Help and Resources.

1.  Insurance.  Unless you are in a flood zone, you likely won’t have flood insurance.  You will need to check with your insurance company to see what is covered.  FEMA’s site also has information on making flood claims.

2.  Water removal.  There are several companies who handle water removal in the area.  Several of the agents in my office have used Property Restoration Specialists and report good things.  Another company is Flood Control.  **Edit addition:  Chad Whitworth w/LDR Construction specializes in water extraction, drying, mold & mildew remediation; 615.336.2440.

3.  Mold issues.  Of course, mold isn’t necessarily an issue in the heart of this tragedy, but in the coming weeks, we may see more mold issues.  Grove Mold Remediation seems to do good work and are very responsive.

4.  My house is on the market.  If you have had water issues, you will need to ask your agent for a new “Tennessee Residential Property Condition Disclosure” and update the water information.  Will this hurt the sale of your home?  Who knows?  Rains like these are so rare that we’re going to have to wait it out and see what happens.

5.  I’m buying a house in Nashville.  If you’re buying in certain areas, especially west Nashville, Antioch, Green Hills, West Meade, Brookside, Goodlettsville and several other places, you’ll want to do your homework.  Remember the news always shows the hardest hits parts.  Many areas of Nashville are not experiencing heavy damage, but you will want your agent to ask the right questions.

While it does us no good at this point, all we can do is be ready for something like this if it ever happens again.  Here’s a guide.

Please comment below if you have more resources for home rescue.  Please give a web address and/or phone number, too.

(Photo credit: Randy Oxley)

The Home Affordable Foreclosure Alternatives program, under the U.S. Treasury Department, launched on April 5, 2010.  What does HAFA mean for today’s home owners?  This was signed in conjunction with the Home Affordable Modification Program (HAMP) under the Obama Administration to hopefully revitalize the housing market.

It’s no secret if you’ve been in the housing market any time after 2007, the short sale process as a buyer or seller can be a bear of an experience.  I’ve seen stressed out faces on both sides of the deal, including my own.  For those of you reading this, who don’t understand what a short sale is, you can learn more here.

Simply stated, HAFA helps owners sell their home (hopefully) more quickly by giving them pre-approved short sales before they hit the market.  In a perfect world, this would already be happening, but with the tsunami of short sales in the recent years banks didn’t have infrastructures set up for this.

As weird as this is for my own blog, the short sale LISTING process takes a special talent.  I shine on the short sale BUYER process; so, if you’re a seller looking for navigation through the short sale process, let me give you the names of the agents I have worked with who do a good job with homeowners in short sales (at the bottom of this blog).

If you’re a buyer, this is where I shine as an agent for a buyer.  I know how to navigate the process in a win-win working relationship with the seller’s agent.  You will be most served as a BUYER with the HAFA program because that mysterious time of not knowing whether the short sale is approved yet or not may be over.  Keep in mind, not every bank is taking part in the HAFA program.  This will be an important part of your agent’s job to navigate in the right direction for successful closing.

Here are some links that might help:

HAFA Short Sale Rules, Guidelines and Qualifications

Financial Stability

Making Home Affordable

Nashville REALTORS Who Are Good Sellers Agents for Short Sales

HCA or Hospital Corporation of America is one of Nashville’s largest employers. While most people only think of Nashville as Music City USA, most people don’t realize that health care is actually Nashville’s top industry.

If you’re looking to move to Nashville with HCA or you’re ready to start with your job offer, you’ll find a rich lifestyle, a diverse housing stock and a quality of life few cities can exceed.  Here, I’ll go over a few of the housing choices based on what you may be looking for style-wise and price-wise.

I want to live as close as possible to my office. Sylvan Park is your immediate answer.  Less than one mile from the HCA Headquarters, you’ll find historic homes like Victorians, foursquares and bungalows, new construction historic replicas and one contemporary home street in a part of Sylvan called “Nevada Heights.”  Sylvan Park has one of Nashville’s best vet clinics in Murphy Road Animal Clinic and one of Nashville’s classic restaurants Park Cafe.  Get your checkbook ready, as the prices 75%-85% above Nashville’s median price.

I’d like an small urban neighborhood close to work, but on the cusp. Hope Gardens is one of Nashville’s best kept secrets.  It’s a tiny little neighborhood that packs a pretty big punch for style and value.  In the early 2000s, many of the homes were in such poor shape the couldn’t be saved.  MDHA took interest and started pouring grant money in the Garden.  Now, historic replicas and sleek condos line the streets.  Expect prices at 25% above the median, but you can grab a good deal for something cute.  The lots are postage stamp size.  Don’t miss the best little brunch place in Nashville, The Garden, in its neighborhood borders.

I want to be close, but would like a more suburban feel. Brookside, Westmeade and Belle Meade in the next zip code over are the answers.  You’ll find everything from sprawling brick ranches to some of the most impressive Neo-Georgian homes in the southeast.  Shopping and amenities are on every corner; so, going over all of them is impossible.  Sperry’s is one of the locals’ favorite nice dining spots while Sportsman’s Grille is the local casual spot.  The average price is at 100%-500% the local median according to where you buy.

Forget work, I wanna be in fun zone. Hillsboro Village is the choice on the west side.  Originally known as Vanderbilt’s neighborhood, it’s now risen from the early 1990s to its own eco-friendly identity.  On the east side, Lockeland Springs, Eastwood Neighbors and Historic Edgefield tend to attract a ton of urbanites.  With organic grocery stores like The Turnip Truck, vegetarian cuisine like The Wild Cow and funky gathering spots like Bongo Java, East Nashville has a local flavor all its own.  Hillsboro’s prices are a bit higher than Sylvan Park.  East Nashville’s three neighborhoods listed here have an average price of 10-20% above local median.

This article only scratches the surface of Nashville proper.  More neighborhood resources here.

The Value Players.  Few Davidson County/Nashville zip codes show the price diversity that 37208 possesses.  Relocating buyers or those unfamiliar with the area often find the area perplexing.  How could one segment’s values be more than five times the value of a virtually neighboring spot.

While the unit sales for single family homes were at a low in 2009 in 37208, Germantown, Salemtown and Hope Gardens emerge again as the price point leaders.

Click for larger version.

Germantown.  Few parts of Nashville are as well known as Germantown.  As Nashville’s first ever suburb, the tiny zone’s breath-taking downtown views, easy access to every part of town and one of the closest neighborhoods to downtown where you can own a house make it a consistently popular area.  Popular restaurants like Germantown Cafe and Monell’s coupled with area-attracting events like OktoberFest, keep Germantown’s namesake in the top of mind.

2009 brought a pitiful two sales to its city blocks.  1224 5th Avenue North was built in 1998 and sold for $237,500 for 1626 sqft.  1317 4th Avenue North  was built in 2004 and closed for $350,000 for 1965 sqft.  Twenty-four homes tried the market, but didn’t see the closing table.

Salemtown.  While this area stays in naming conflict with Germantown, its sales surprisingly outpaced its bordering city.  Many Germantown residents are quick to correct those who call the area north of Hume “Germantown.”  It has indeed emerged as its own desireable spot.  Thirteen homes closed with an average price per square foot of $112.82.  608A Hume saw the highest value in all of 37208 at $390,000.  The area still struggles with the new vs. the old mentality which Germantown endured in the early 2000s.  5th and 6th Avenue North remain the most popular and valued streets.

Hope Gardens.  The breakthrough neighborhood of the 2000s, Hope Gardens emerged from disrepair and block after block of delapidation to see some of the trendiest, most beautiful homes in the downtown radius.  Spurred by the Hope VI program, a land grant program begun in the Clinton Administration, Hope Gardens is truly a story of success and vitality.

In 2003, skeptics would have ripped anyone who forecasted a home could sale for $290,000 ever in this neighborhood, but that’s exactly what 1017 Warren Street did in 2009 for 2149 sqft.  Locklayer Street continues to be the value spot.  The completion of Park Place in 2008 introduced an entirely new population to the 5×5 block area and will be interesting to watch as those continue to evolve.

All The Rest. Historic Buena Vista continues to develop as a hot spot in 37208.  With new streetscaping and signage, it’s a picture perfect zone.  1025 Monroe Street closed for $295,000.  Harding Plan saw one of the most exciting homes close extremely quickly.  1223 Phillips Street’s full green built design (down to the water catching gutters) flew “off the shelf” in a few days at $126,500, setting a price record for the neighborhood.

Buena Vista Park (not to be confused with Historic Buena Vista) brought the most unit sells, however the price swing is hard to analyze.  The low sell was on 16th Avenue North for $11,500 with the highest sell on 1728 Kellow Street for $117,000.  The average sale price in BVP was $47,154.

Yesterday, a buyer called me and said they had heard that the first-time homebuyer tax credit had been extended.  California has voted to extended the tax credit for only their state in a different form.  If you are a homebuyer in Nashville, Tennessee or otherwise, do not get excited about this news.  It does not affect your April 30, 2010 deadline.  Sorry, folks!

You may be asking yourself, what do I need to know about buying a new construction home from a new home builder. Buying new construction is super easy and can be stress-free, there’s just a few things you need to keep in mind when you’re considering the purchase in the Nashville real estate market.  Here, I’m going to give you the things to watch out for in pre-construction as well as contract items and a few other tips.

The Building Process

Remember.  Your negotiation power is lessoned in a pre-sale. A pre-sale is when a builder has a lot and you want to build a certain home plan on that lot.  While you can try to negotiate anything, the chances of you getting a better deal than a “spec” or “completed” home is not so strong.  For example, if the price is $275,000 for the base model, you can expect the item listed on the finishings sheet.  The typical upgrades are items like more hardwood on the floors, tiled utility rooms, finished bonus rooms and lighting upgrades.

Don’t over-upgrade your new home above its fair market value.  When you’re in the buying mood, you get in the mindset of, “Hey, I’ll do it now, because I’ll never do it later.”  Sure, you may not ever do those upgrades, however if you find yourself in a re-sale spot, those upgrades may not return to you.  While you remember the day you chose that upgraded counter top or the extra piece of trim, you homebuyer will likely not notice it in the sea of competitors in your neighborhood.

You may see a better deal on a spec home. A spec home sitting in stock is a liability and a financial inconvenience on a developer.  The best thing is you get to see exactly what you get.  While it may not be the light fixture you would have chosen, or the counter top you would have been in heaven with, or the tile style you had envisioned in perfection, compromising those small details could net you a bigger value in the long run.

Be aware of the common sense (so you thought) upgrades. One Nashville builder (at one point) did not include the door between the master bedroom and the master bathroom.  One person I know (prior to my tenure in real estate) discovered this upon closing new home.  He was additionally reminded of it during his housewarming party, when the master bathroom (in full view of the back deck) compromised the privacy of a female party guest on the commode!  Other “this-is-so-stupid-and-should-be-included” items include garage door openers, raised vanities, elongated commodes and closet lights, to name a few.

The Contract Process

The builder will have their own contract.  Remember, that contract will be written with the home builder’s best interest at heart.  There is absolutely nothing to be extra fearful about in this process.  If you don’t use their contract, they’ll likely not work with you on the home purchase.  They have the right to have their own contract.  As you go through that contract price, here are some things to be mindful of.

Inspection contingencies. In the Tennessee state contract, after the inspection time, you have the right to exercise an inspection contingency for items that make you leery above cosmetics.  In the builder contract, they will reserve the right to repair everything, giving you no “out.”  Honestly, if you’re wanting to walk from a contract on a minor, fixable glitch, you weren’t purchasing the home in good faith…so shame!  :)

Earnest money.  If you’re getting upgrades, the builder will likely want those upgrades given in NONREFUNDABLE earnest money.  Keep in mind, the builder would not have normally done those upgrades; and if you walk, he/she is stuck with having to try to sell it again with your taste items.

Completion dates. A builder will need to safeguard his/her interests if he/she cannot deliver the home on the contract close date.  Rain, snow, supply backorders and a host of other items could delay construction.  This could leave you in a situation that you may not get to close on time.  This could be a big deal to you if (1) you have storage costs; (2) temporary housing costs or (3) any host of other costs.  You will not be given recoupment of these costs, if the home is not delivered on time.

Incentives. Often, if you use the builder’s preferred lender, you may get closing costs, upgrades or a spattering of other perks.  The preferred lender is in place to make sure you close at ALL cost.  In the easy situations, there are typically no red flags; however, you may find that a you have to pay a bit more due to a loan type change or who knows what.  It happens rarely, but just be aware.  Don’t be afraid to ask your preferred lender to see if they can match or exceed those deals.

Should You Use A Buyer’s Agent?

Well, the REALTOR hat says you should, but I do have a condition on that.  A buyer’s agent can cause a lot of problems in the normally systemized smooth process IF he feels like he has to prove his value to you in the process or his ego says, “I want to show you the power I have over these people.”  Your buyer’s agent will likely be unable to conquer a lot of the things a builder may throw into the mix.  A great buyer’s agent however will be a great advisor and measuring stick for what is normal/abnormal.  A buyer’s agent value is also in the concierge services throughout the process.  Find a buyer’s agent who understands the ins-and-outs of working with a builder and can create the biggest win-win, stress-free situation for everyone involved.

The 9 Subject Neighborhoods.  Accounting for only four percent (4%) of all sales in Nashville, MLS Area 3 is one of the smallest measurement areas (120 SFR units in 2009); however, the neighborhoods hug downtown so closely, their numbers are essential to understanding the urban Nashville landscape.

Click image of larger version.

The 37208 zip code in Nashville, Tennessee encompasses the areas known as Germantown, Salemtown, Hope Gardens, Historic Buena Vista, Harding Plan, Fisk Park, Hadley Washington, D. T. McGavock and Buena Vista Park.  You will also hear several areas called different names like Fisk, Meharry, Elizabeth Park and Ford Green.  For this study’s purpose, the nine neighborhoods here will be used as the authority.

With arterial routes like Jefferson Street, Rosa L. Parks Boulevard,  Dr. D. B. Todd, Jr Boulevard, Clarksville Pike and Buchanan Street, the area is one of the most accessible areas in Nashville.  Interstates 65 and 40 split the neighborhood in several areas, creating some physical boundaries and several value separations.  There are a total of 6595 household units in 37208, an increase of only 590 since 2000.  37208 is a dense housing area with few vacant spots for development.

Additionally, many of the closings in Germantown and Salemtown are condominium closings are not reported here.  Note, this is only a single family residential report.

This is part of a larger report.  Download the full 37208 report here.

Middle Tennessee has a plethora of home styles that reflect our history and evolution. Home architectural styles include new construction, Victorian, shotgun, ranch, atomic ranch, Tudor, cottage, bungalow, industrial, contemporary, foursquare, Italianate, pioneer, mission, colonial, Cape Cod, Georgian, neo-Georgian, farm house, split foyer, among many more.

New or newer construction: Typically, homes with foundations less than five years old will fall into the “newer” category.  In the greater Nashville area, a great majority of the new/newer stock lies in the suburban areas.  You will find limited urban infill stock in the historic neighborhoods.  Many of those have been built to meet neighborhood aesthetic guidelines.

Those are all the styles mentioned on the Buyer Survey, however, here are a few more styles we have in the Nashville area.

Foursquare:

Italianate:

Shotgun: A variation of the Victorian era-style, this home’s namesake has an intriguing sordid past.  It’s a called a shotgun, because you could stand in one end of the home and shoot out the front of it with minimal windows, giving you an edge over your so-called neighbor.  Also, it’s called shotgun because if a shot was fired through the front of the home, it would go straight through the home.  I don’t know what this says about Nashville, but we do have a ton of these homes throughout all the urban districts, especially Cleveland Park, Historic Buena Vista, Sylvan Park, Woodbine and Sunnyside.  They also fit quite nicely on some of Nashville’s smallest urban lots.

Colonial:

Cape Cod:

Georgian:

Farm House:

Split Foyer:

What is your favorite home style?  If you’re in the middle Tennessee area, what style of home do you live in or consider significant enough to add to this list?  Please weigh in the comments section below.