Sept. 22, 2017

What The Nashville Real Estate Market Shortage Means For Buyers And Sellers

There is low home inventory in many regions. Demand currently exceeds supply. This establishes an interesting environment for both buyers and sellers. Below is information on what the Nashville real estate market shortage means for buyers and sellers.

Competitive Market for Buyers

Less inventory establishes higher competition for home buyers. New listings will will typically generate lots of attention. Right now, inventory for homes priced under $300,000 remains very low. Listings will generally generate multiple offers and sell quickly. Under these circumstances, it is typical for properties to sell for greater than list price. What else does this mean for home buyers?

Buyers must be prepared to act. This requires obtaining a pre-approval completed and a letter in-hand to include with a property bid. After seeing a home, buyers must not hesitate on making a decision. Delaying even a day might be too late. Finally, when presenting an offer, it is essential to prepare a simple one and put your best foot forward. You may have only that one chance. There is typically no chance to negotiate a discounted sale price unless the home has been listed for an extended period of time and without competing bids.

A Good Position for Home Sellers

Sellers benefit in this environment. It can be difficult maintaining a property in showing condition, so fast sales make selling a home much easier. In multiple bid scenarios, they are also in a position of strength and may be more scrutinizing of buyers.

Sellers need to avoid overpricing in this market. Highest value is often procured by accurately pricing to begin with. Overpricing does not usually end well. If a home sits too long in this market, buyers will wonder what is wrong with it, or may see it as a chance to get a "deal" resulting in lower offers to the seller. Pricing it in the sweet spot is important, and an experienced agent can help with this.

Sellers attempting to simultaneously sell and buy will struggle a bit. Although you will be able to quickly get the current home under contract, locating a new property could take much more time given the limited inventory. Securing a buyer with a fluid time frame will make a big difference. You might also need to use temporary housing until you can locate your new property.

What The Nashville Real Estate Market Shortage Means For Buyers And Sellers

In general, what the Nashville real estate market shortage means for buyers and sellers is a quick selling process and an extended buying time frame.  Prices will rise quickly due to demand. It is important to understand the Nashville market if looking to buy or sell. Set reasonable expectations when it comes to both price and timing. Working with an experienced agent will offer helpful support and direction.

 

©2017 The Nashville Duo of Benchmark Realty

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

Sept. 15, 2017

Real Estate Virtual Tours Vs. Slideshows

When homes are listed for sale, it is customary to take pictures. Listing agents may also create virtual tours or slideshows. Each is completed differently and offers a different visual presentation of a listing. This blog provides an overview of real estate virtual tours vs. slideshows.

Virtual Tour Definition

Virtual tours are created using videography and can present a more accurate perspective on the layout and space of a home. It can highlight areas that are difficult to capture in static photos. It is essential to think about the route taken through a home when recording the video. Lighting, video movement, music addition, and other factors are also critical as they can affect the impression that viewers are left with.

What Are Slideshows

Slideshows are the the animation of still photography. Individual still photos are shown in rotation with transitions in between. Photos may zoom in and out or slide by one another at a set rate and sequence. They can be placed in an order that gives viewers the sense that they are walking through a listing using a particular path.

Nashville Real Estate Virtual Tours Vs. Slideshows

There are pros and cons to both slideshows and virtual tours. Virtual tours can display full panoramic views, but music and other elements may unfairly influence viewer opinions. They are also usually more expensive to complete and can take more time to download and play depending on the length of the video and connection speeds. Slideshows, on the other hand, typically display much more quickly. They also enable people to forward or go back to certain views without taking much time. The disadvantage is that the perspectives of images may be limited or fail to offer an accurate picture of a property. When compiled properly, both virtual tours and slideshows may appeal to prospective home buyers. Angela Neely & Julie Gurel use both virtual tours and slideshows in their marketing plan. Full motion video tends to do wonders for getting people through the door, and social media has made it easier then ever to share with a large audience.  For additional information on real estate virtual tours vs. slideshows and other seller services, contact us at TheNashvilleDuo@gmail.com

©2017 The Nashville Duo of Benchmark Realty

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

Posted in Home Seller Tips
Sept. 8, 2017

Benefits Of 1031 Tax Deferred Exchanges In Nashville

A 1031 exchange is a way to defer taxes when selling a property and purchasing another. Real estate used for business or investment may qualify. When used properly, it can lead to dramatic savings. This article provides the benefits of 1031 tax deferred exchanges in Nashville.

Types of Properties that Qualify

You must have qualified real estate in order to consider a 1031 tax deferred exchange. Qualified real estate are those involved with a business or for investment purposes. It can include rental, land, residential, commercial, and industrial real estate. You must also intend to purchase a new similar property that also meets the qualification criteria.

Benefits Of 1031 Tax Deferred Exchanges In Nashville

Typically, when you sell an investment property, you pay capital gains taxes on the profits from the sale. This is true despite what you plan to do with that money earned. Taxes may be owed to the federal government and local state. Based on how long you kept a piece of real estate and how much equity you have in it, the taxes owed may amount to a large sum. A 1031 exchange gives you a means to put the earnings from one property directly into the purchase of another like-kind property and defer capital gains taxes until you sell that additional property. Of course, another 1031 exchange may be performed on that future property to delay taxes even further.

Preparing for a 1031 Exchange

There are different elements to a 1031 exchange that you should be aware of BEFORE marketing a property. 1031 Exchanges are not something that you can initiate after a sale is complete. You must plan to perform an exchange when you list qualified real estate for sale. Particular guidelines must be followed to conform to the exchange. This includes time frames for selecting and purchasing replacement property. A qualified intermediary must also be hired to manage the process. If a process is skipped, all potential savings will be void. Consult with a knowledgeable financial advisor for help with 1031 exchanges and to reap the benefits of 1031 tax deferred exchanges in Nashville.

 

Written by The Nashville Duo of Benchmark Realty

©2017

Sept. 8, 2017

August 2017 Stats

Posted in Market Insight
Aug. 11, 2017

July 2017 Sumner County Stats

Posted in Market Insight
July 14, 2017

Single Family Vs. Condominium Living

Single family vs. condominium living is a common debate for many buyers. Each provides unique benefits. Buyers naturally compare the separate price ranges, but the alternative that is better for you depends on your lifestyle and preferences. The following are some factors for comparing single family vs. condominium living.

Control Over Exterior Changes

The option to perform renovations is an important distinction between single family vs. condominium living. With condominiums, there are guidelines on what you can and cannot do to your property. In many condominiums, you may renovate the interior space of your unit as long as it does not alter load bearing components. Exterior elements are normally maintained by the governing association. With single families, you may alter any element of the interior or exterior of your home. You have complete control (restricted only by applicable building codes or HOA covenants and restrictions).

Lifestyle Considerations

Given the vicinity to other units and the amenities, single family vs. condominium living can be somewhat different. With condominiums, you are more likely to interact with neighbors (while using community amenities). With single family homes, your property is separated from your neighbors, so meeting neighbors will require deliberate effort. However, some single family properties within subdivisions might also provide easy interactions if they provide common amenities.

Amount of Privacy

Although detached condominiums are sometimes an option, condominiums are generally attached to one another. Thus, you often share walls or floors as well as other boundaries. If independence and privacy are a must, then single families are a better option.

Property Repairs

Most condominiums have a monthly fee to cover building maintenance and shared amenities. So, you would not have to perform certain tasks as a condominium unit owner. The monthly fee can be quite high, and will need to be factored into your loan preapproval since it raises your monthly payment. However, homeowner's insurance may only require a "contents insurance" with condos, thus lowering your monthly payment there. With single family homes, you must complete all of the maintenance, interior and exterior. You often don't have as high of an association fee, if any at all. If you live a busy life, then a condo could be a good match.

Comparing Single Family Vs. Condominium Living

There actually is no good answer to whether single family vs. condominium living is better. Both offer different benefits. Ultimately, it depends on your individual preferences. Do you prefer to complete less maintenance? Do you want extra privacy? Do you like to socialize with others? How much power do you need for home renovations? By reviewing these questions and knowing how it applies to single family vs. condominium living, you can make an informed decision.

 

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

Posted in Home Buyer Tips
July 7, 2017

Sourcing Funds for Real Estate Purchases

When purchasing a property, part of the purchase process normally requires one or more earnest/trust money deposits from buyers to assure sellers that they are proceeding in good faith. They also require closing costs, and may require a down payment. These payments must be submitted in a certain manner so as not to interfere with the mortgage approval process. This blog provides details on sourcing funds for real estate purchases.

Source of Funds

It is essential for home buyers to use their own money for most earnest money deposits. Many loans specifically mandate that buyers utilize their own funds for all costs related to the real estate purchase. A USDA loan, for example, requires you to source all funds for the trust money deposit, and closing costs. An FHA loan allows you to received Gifted Funds, and we discuss that more below. Buyers are asked to furnish account statements verifying that the money was pre-existing in their account and that the money was withdrawn against that account. Mortgage companies will evaluate all of this information during the mortgage approval step. Buyers failing to use their own funds may compromise their likelihood of obtaining a mortgage.

Gifted Funds

Some financing programs, like FHA, allow gifts to buyers from friends or family members. However, buyers should not ask family members to make earnest money deposits for them. The recommended process includes a gift letter, copies of bank statements from the gift giver showing where the funds originated, and then account statements from the home buyer displaying receipt of the money. Complying with proper steps will minimize complications when underwriters process the paperwork. Make sure to ask your lender what money is allowed to be gifted based on your loan program, and what money you will need to come up with and source on your own.

Getting Ready for Real Estate Purchases

Buyers contemplating a future home purchase can take a few precautions to minimize delays with their financing approval. First, they should ensure all funds saved for earnest money deposits, down payments, and closing expenses are in their own accounts and are verifiable. Have several months of account statements on-hand. The statements should not display any odd behavior (such as deposits from unusual sources or cash deposits that can not be sourced). If accepting money as a gift, ask your loan consultant for the necessary steps prior to receiving the gift. These steps may prevent issues and result in easier loan approval.

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

Posted in Home Buyer Tips
June 30, 2017

Tips On Comparing Carpeting Materials

When picking carpeting, you may be surprised at how many options are available. Not all materials are created equal. The one that you choose should depend on the space that it will be installed. The following are some tips on comparing carpeting materials.

Types of Carpet Products

Wool

Wool carpeting contains natural fibers and is very strong and soft. It is long-lasting and inherently flame resistant. Its comfortable nature makes it a good choice for bedrooms. Wool is also a healthy option as it minimizes air contaminants. Regrettably, given wool is so accepting of tinting, it will stain easily. It is also a more costly alternative.

Nylon

Nylon carpeting is an extremely popular fiber. This synthetic material is resistant to crushing and staining. It is also available in a range of colors. Due to its resiliency, it is a popular choice for high-traffic zones. It is available in a range of price points so it can be an inexpensive option too.

Polyester

Polyester is also synthetic. It is often made from recycled materials and can be a green alternative. It is also soft, retains its color, and is stain resistant. This is an ideal pick for rooms that you wish to make cozy. Because it is plush, it is better suited for less traveled areas in the home.

Polypropylene/Olefin

Polypropylene carpet, or olefin, is also a good option for high-traffic areas. It resists to moisture, fading, stains, and static. However, it is prone to compacting when placed under heavy furniture. Its moisture resistance makes it a popular option for basements, doorways, and outdoor spaces.

Acrylic

Acrylic carpeting is created from synthetic fiber and is often blended with wool to produce a soft texture. It is fade and moisture resistant, and for that reason is suitable for spaces that contain moisture or sunlight. It is usually installed in sun rooms or finished basements.

Tips On Comparing Carpeting Materials

There are many different elements of a room to consider when choosing carpeting material. Some materials are stronger and better for busy areas. Stain resistance is critical for areas prone to food spills and dirt. Some fibers keep their structure better than others, which may be important based on the carpet pattern or furniture in the room. You may determine that some colors, patterns, and other elements are more available in particular fibers. Lastly, environmental friendliness may also be a factor in your selection. The tips on comparing carpeting materials above will help you pick a carpet that compliments the space and will stand the test of time.

Posted in Home Owner Tips
June 23, 2017

An Explanation Of Nashville Appraised Versus Assessed Values

Appraised and assessed values are frequently mistaken for each other. As a real estate customer, it is useful to understand what these words mean. An explanation of appraised versus assessed values is provided below.

What Are Assessed Values

Municipalities charge a property tax on properties. The amount is based on the tax rate and the assessed value of a piece of property. Assessments are used only for measuring taxes and do not actually coincide with the current market value. Every town determines assessed value based on different criteria. They usually account for the amount of land, interior elements, and exterior features such as decks. They can re-assess property values and/or increase the property tax percentage at regular intervals.

What Are Appraised Values

An appraisal is an analysis of the current market price of a home by a trained individual using approved procedures. Banks hire appraisers to confirm that the value of a home justifies the amount they are loaning out. It is a part of their due diligence since they hold the majority of financial burdern until you pay down the loan. Appraisers traditionally pull at least three comparable properties that recently sold within a certain vicinity. Since the market conditions will change several times, considering recent figures is important for an accurate appraisal.

An Explanation Of Nashville Appraised Versus Assessed Values

The market price of a property is defined by what a purchaser is offering to pay, which can change constantly based on circumstances such as availability of options. Buyers must avoid associating assessed values with the selling price of real estate because they do not relate to one another. Some cities rarely update assessments and elevate tax percentages instead. Only an appraisal can offer a true reflection of present market price. This blog regarding an explanation of Nashville appraised versus assessed values was prepared by The Nashville Duo of Benchmark Realty. For more details on this and other real estate matters, contact The Nashville Duo at thenashvilleduo@gmail.com or call 615-678-9450.

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

June 16, 2017

Accuracy of Automated Home Valuations

You will likely run into electronic home pricing estimates when you search for real estate information on the Internet. As a real estate buyer or seller, you might end up using the information for your real estate decisions. It is extremely critical that you know how these estimates work prior to using the results.

The Process of Computing Electronic Home Values

Electronic home pricing estimates normally pull facts from public records. This includes details such as living area, number of rooms, and construction type. This is placed in a database and used in particular calculations to determine the value of a home.

What Is Included in Public Property Details

Public data is not usually reliable. In fact, some websites that provide electronic home values have their feed cut off from the most important source, the Multiple Listing Service. Many times the information pulled is from inaccurate websites or the information is old. It might not note changes to the home. It also usually leaves out data that can directly change home values, such as the quality of hardware and appliances.

Reliability of Electronic Home Pricing Estimates

Given that public information is not comprehensive, it can never be fully accurate. Most websites provide a percentage error margin somewhere. However, those margins are often much higher in some cases.

Why You Should Not Depend on Electronic Home Pricing Estimates

As a property seller or buyer, it will be ill-advised to solely refer to electronic home pricing estimates. When selling a home, you might set an incorrect price and lose critical marketing time. As a home buyer, you may insult a seller and miss out on your dream home by offering too low a price. A proper price range requires an actual person reviewing detailed facts from accurate sources and comparing a home to comparable properties that sold within the last 6 months. This is where your real estate agent plays an important role. When marketing real estate to sell quickly, he/she can provide a report that identifies a specific price range. On the buying side, your agent will advise you on a fair price that positions you for the best opportunity for success, especially when there are other buyers. Connect with a local real estate professional for sound advice, and put little stock in online home automated estimates.

 

Angela Neely 615-678-9450

Julie Gurel 615-915-8389

Office 615-991-4949

Posted in Home Seller Tips