Category Archives: First Time Buyer Information

Nashville New Homes: Great Deal, Necessity, or Smart Financial Move?

In economic times like these, we should ask ourselves this question every time we consider purchasing something:

“Is this a Great Deal, a Necessity, or a Smart Financial Move?”

But most of us, including myself just don’t take the time.  Either we really don’t want to know the real answer, or we just don’t care.  We want whatever it is.

This week, a young professional couple pulled up at the model home in a brand new luxury sports car.  I know it was new because it still had the temporary dealer tag in the back window.  As they approached the door, I was confident that this was my next sale.

After a warm greeting, I asked them “what in a new home would be most important to them?”  Their answer…. “a new home…FOR RENT.”  Well damn!  

Even new home sales professionals know that home ownership isn’t for everyone.   So, lets find out why this couple shouldn’t buy.   Were they here in Nashville on a temporary relocation?   Were they expecting a transfer within the next year? 

No, they are from the area and have no intention of relocating away.   Further discussion revealed the reason for wanting to rent.  They were just unsure of the current Real Estate market.  They wanted to wait until the news media confirmed home prices have bottomed out, and appreciation certain.

I don’t want to appear cynical, but the car they drove up in was 1/3 the price of a nice home.   It lost approximately 30% of what they paid for it the second they signed the purchase agreement.  It has little chance of ever being worth what they paid for it.  And there are no tax advantages when they do sell it for less than they paid for it (unless they are self-employed and use the car for business.)  But, I know better than to make fun of something that someone purchased.  The car never came up in the conversation…. well not until later anyway.

If they had asked the above question about the car purchase, the only possible answer would be “a great deal.”    I bet the new car salesperson would have danced a jig around answering the question too!  But, they had received a nice discount, zero down payment, and 0% financing for 72 months.

 

For “First-Time Buyers” in Tennessee, buying a new home is almost that easy.  You can purchase a brand new home with zero-out-of-pocket money using the ‘Great Start” program, offered by THDA.  Coupled with today’s record low interest rates, you can more than likely own your new home for the same, or less, than a comparable rental would be.

The new home will not go down 30% in value the day you move in.  Real Estate has firm documentation of appreciation over time.  Chances are very good that your new home will one day be worth more than you paid for it.  Mortgage interest is tax deductible.  So are property taxes.   You can also turn your new home into investment property and rent it out, should you ever choose to move.    Try all that out with a car.  You can also borrow money on your equity.  Try that with an apartment.

Ole South has brand new homes, of all shapes and sizes, in a variety of locations throughout Middle Tennessee.  With prices ranging from $89,990 to $299,990, you are certain to find a home to meet your needs.    For more information on our locations, please visit www.OleSouth.com.   Visit any of our model homes and find out for yourself why thousands of Tennesseans are proud to say “Ole South Built It.”

And while you are there, ask yourself the above topic question.  At Ole South, the correct answer is “All of the Above!” 

After more discussion, the visiting couple decided the time was right to explore purchasing a new home.  I am sory to say that expedition did not take very long ….. their sparkling new car payment had pushed their debt-to-income ratio way over approvable limits.  For them, renting it is for a while longer.  And we’ll stay in touch until the time is right for them to explore again!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new homes in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, Clarksville, and Spring Hill, Tennessee

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Nashville New Homes: The stupid questions are the ones you don’t ask!

After the good-ole days of school, the thought of owning a home seldom crossed my mind.  I knew nothing about the process and was living under the assumption that I would have to have a large down-payment whenever the time came.  I didn’t feel comfortable asking questions.  I did not want to appear stupid.

A few years later, a friend who was a mortgage geek asked me why I had not purchased a home.  Being self-employed, I really did not know where to start, and did not want to admit it.   Swallowing my stupid pride, I finally laid all the pieces to the puzzle out there and purchased a home weeks later.  Then, I backed up to the “ass-kicking machine” for not asking someone sooner!  It really was that easy…and still is today!

Every year you do not own a home is another year you will not build financial security.  If the home you purchase does not go up in value at all, it will still be yours when it is paid for and you still have something to sell.  Home Equity loans have also put many children through college.  No apartment complex has ever managed to do that… except for its owners!

Lets address a few of the many questions that our first-time buyer of today might want to ask:

1)   How much down-payment will I have to have?     Don’t you just hate hearing the answer, “it depends.”  I do, and refuse to use that as an answer.  In most cases, you will have to have a minimum down-payment of 3.5% of your home’s purchase price.  In Tennessee, first-time buyers using THDA’s Great Start can purchase a new Nashville area home with ZERO down payment and ZERO cash out of pocket.  Of course, certain credit and income restrictions apply, but the program is relatively easy to qualify for.   Visit www.thda.org for more details.

Members of our US Military, Veterans and Active-duty, are also eligible for ZERO DOWN financing and can now receive a 1/2% reduction in their fixed interest rate under THDA’s new “Homeownership for the Brave” program.    Please contact me anytime and I will tell you all about these great options!  615.593.6340.

2)  Just what are closing costs?   Much like purchasing a car, closing costs include sales taxes and various fees.  The costs of obtaining your loan are also closing costs, and there are many options there as well.  Also included is an escrow account where you property taxes and insurance is pre-paid into the future.  Typical closing costs to range between 3 to 4% of the purchase price of your home.  This amount is due at the time of closing.

3)  Who pays closing costs?  Everybody pays in one way or another!  Who gives the money at closing is negotiable.  It is very common for buyers to negotiate with the seller to pay closing costs.  If you purchase a new home with Ole South, ALL of your closing costs are paid when using our network of preferred lenders.  In any case, we will pay 2% toward your closing costs with any lender.  We make it easy to own a new home.

4)  How much money do I need when I decide to contract on a home?  The deposit amount you place when you contract is a negotiable figure between buyer and seller.  That deposit is called “Earnest Money” and is held in escrow to apply toward your cash requirements at closing.  We at Ole South ask for a minimum $500 deposit at the time of contract.  If you use the THDA Great Start program through Ole South Financial, you will receive this deposit back at closing!

5)  When do my payments start?  Payments on your new home do not start until the home is completed and the transaction is closed.  Typical first payments are due 30 days forward to the 1st of the next month.  If you close on April 15th, your first payment will be due on June 1.

So get out there and explore the many homeownership options that are in front of you!   See for yourself how new homes are better.  Start by visiting the new home neighborhoods of Ole South.  And remember, if you have questions….. we have the answers!   www.OleSouth.com

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Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new homes in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, Clarksville, and Spring Hill, Tennessee.

Nashville New Homes: What do YOU want? What do YOU need?

In Nashville, new homes come in all shapes and sizes.  Somewhere out there is the perfect home that meets all of your needs, so get out there and find it!  You can start by visiting the new homes offered at www.OleSouth.com.   We have new homes all over Middle Tennessee including Nashville, Smyrna, Murfreesboro, Spring Hill, and Clarksville. 

FHA Mortgage Insurance Increases April 18, 2011

If you can contract to purchase your new home before April 15, 2011, you can have your loan application approved  in time to avoid the increase in FHA mortgage insurance premiums on April 18th!   Or, you can wait and pay more.  It won’t be the end of the world, but it is savings worthy of consideration!

One of the first questions I ask our visitors is “what in their new home is most important ?”   The answer tells if your prospect has given serious thought and preparation in purchasing a new home.   Think about it.  We are in the business of satisfying NEEDS first, and WANTS second.

Before you begin your quest for a new home, make two lists….one list of things that you need and another list of things you want.  Then, beside each item, write down how that item will make your life more enjoyable, or just how necessary that item will be.  

Many put a formal dining room at the top of the list, because their family comes for Thanksgiving every other year.  Let’s do the math!   The average home with a separate, formal dining room costs at least $10,000 more to purchase than a similar home with a breakfast room.  That’s approximately $70/month.  You will spend $1,680 in your higher payment just to have Thanksgiving at your house every other year.  That doesn’t even include the cost of the dining furniture either.   Will a few card tables and chairs in the Great Room suffice?  And we forgot about the cost of the groceries too!  What about going to Cracker Barrel instead?

Others want a 4th bedroom because family comes to visit a week in the summer.  That extra 4th bedroom will cost at least $15,000, or approximately $100/month, not including the extra bedrom furniture.  Feel like you really need to pay $1200/year to give Mom and Dad their own room for a week?   A motel would be cheaper, and their visit more enjoyable too.  

Lets dig on.  Will that smooth-surface range really make food taste better?  Does an “undermount sink” actually accomplish anything?  If you want a double-vanity, will you really use both sinks at the same time?   Are you going to pay extra for a room full of hardwood, and then cover it with a rug?

Is a seperate shower and soaking tub really one of life’s deal-breakers?  Are you really going to use both at the same time?  Wouldn’t a combination tub/shower still suffice?  If not, don’t feel guilty.  That option is approximately $20/month and you get the double-vanity too!

There is absolutely nothing wrong with wanting a lot of extra features in your new home.   Ole South offers a great selection of home plans and options to satisfy your wants, while our included features will satisfy most all of your needs.   

Balancing your needs and wants will lead to more happiness..not just with your new home, but everything life has to offer.   And don’t forget, if you contract to purchase before FHA mortgage insurance goes up, you’ll be able to have a few more “wants” for the same monthly payment, or less!

I once had a couple that had just gotten engaged tell me they HAD to have an upper AND lower Owner’s Suite.   I was expecting to hear that they were taking care of an aging parent when I was informed that “we fight a lot and need space from each other.” 

So….  Lets get married and buy a home.  Might as well go ahead and have a baby too!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new homes in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: “Homeownership for the Brave” – Breaking News for Veterans and Active Military!

The Tennessee Housing Development Agency just hit a “home run” in their newest program, “Homeownership for the Brave.”   Those that are eligible will receive a ONE-HALF PERCENT permanent reduction in their fixed interest rate on their home purchase!

This program is valid for purchasing a home, preferably a new one!   Here is a list of those that are eligble for this great program:

*   All Veterans

*   Active Duty Military

*   Retired Military

*   Active Duty Reservists – or Reservists who have served 180 days minimum active duty

*   Personnel discharged under conditions other than dishonorable

*   Spouse of Veteran, or Surviving Spouse of Veteran

There are  certain income and purchase price restrictions, per existing THDA guidelines.  Click here for more eligibility information:  http://www.thda.org/singlefamily/dpchoices.html

This program is BRAND NEW and not even listed on THDA’s website yet.  (www.thda.org)   If you would like additional information, please do not hesitate to contact me anytime at 615.593.6340, or your favorite mortgage lender.  If you don’t have a favorite lender, why not give Chris Meagher or David Prince at Ole South Financial a call at 615.898.7152.  Remember, if you use Ole South Financial for your new home mortgage needs, ALL CLOSING COSTS ARE PAID on your new Ole South home.

And don’t forget that certain military personnel are still eligible to take advantage of the Home Buyer Tax Credits!  This was discussed in a previous blog post here:  https://nashvillehomesblog.com/2010/11/10/thank-you-sir/

We have new homes all over Middle Tennessee, including Clarksville!  For detailed information on our neighborhoods and available homes, please visit our website, www.OleSouth.com.  Even better, visit one of our model homes and see for yourself why “New Homes Are Better!”

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: A new home or a puppy? Which is least expensive?

Back in February, I returned from a mission trip in Honduras to find out we were getting a puppy.  Here is Ruby, our new “Blue Doberman” at 6 weeks old.  (Notice she has floppy ears)

For those that are keeping up with the news regarding housing, things are really looking up for a change!   And the word is getting out too.  Read on…. http://money.usnews.com/money/blogs/flowchart/2011/03/28/one-sign-the-housing-bust-could-end-soon

Back to Ruby.  She is now 12 weeks old.  And her ears are now different.  (I always thought a Doberman came with pointed ears until now.)

To my point. 

We got Ruby on February 13.   She has now had her ears “clipped”  (which I still think is mean) and various other puppy charges,  and the responsibility of pet ownership has already set in.  And it adds up.

If someone bought a new home on February 13th, the first payment has still not come due.  And when it does, with today’s historically low interest rates, that payment will not break your budget.  After all, everyone has to live somewhere…why not in your own place?

FACT:  You can purchase a new home, and spend less cash than purchasing a puppy.

Here is a great example combining the purchase of a new home – and cash flow management. 

This brand new home in Rivendell Woods of Cane Ridge is all ready to be your next home, especially if you already have a puppy.  The back yard is already fenced in!  At 156,990, just bring your furniture and food.  Even the window blinds and all kitchen appliances are included.

What cash flow?  Using THDA’s “Great Start” program (www.thda.org) through Ole South Financial, you can move in this new home with ZERO cash out of pocket.   And your first payment will not be due until July, if you want to plan it that way!  Right now, you can own a brand new home in Nashville for less than $750/month, including taxes and HOA!

We’ve got a great selection of traditional homes and townhomes all over Middle Tennessee.  From 89,990 to 299,990, you are certain to find the perfect home for your needs.  And one that your puppy will like too! 

Call me anytime and let’s explore your many options!  If I cannot answer, please leave a message.  I’ll probably be taking Ruby out to pee!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: There’s a lot we can do!

When you hear disappointing news, sit back and ask yourself “what can I do about it?”   In many instances, the first and easiest answer that pops into mind is “nothing.”   Isn’t it time that we all think just a little deeper for a better answer?  There is a LOT that we can do.  And we need to start doing it!

Statistics show that for every 100,000 homes that are built, 150,000 construction jobs are created, ALONG WITH 150,000 manufacturing jobs related to appliances, furniture, etc.  Hmmm… for every new home sold, THREE JOBS are created (or saved!)  That means our loyal Ole South home buyers created or saved over 800 jobs last year alone!

  What can we do?  Encourage people to buy new homes!  Read about these statistics and other good news here:

  http://www.trulia.com/blog/Craigschaid/2011/03/foreclosures_plunge_27_-_biggest_drop_on_record

I have a silly question.  If statistics prove that housing creates (and saves) jobs, then why is our government taking steps to discourage home ownership?

There is discussion within BOTH political parties on Capitol Hill about eliminating the home mortgage interest deduction.   There are alternatives being discussed as well, but we need to be informed.  With everyone acknowledging that housing is the key to economic recovery, why are they even considering anything that would have questionable effects on home ownership?  Here is more information on this subject:

http://www.mercurynews.com/real-estate/ci_17637345?nclick_check=1

What can you do?  Contact Congress!  Here is a handy website that will give you the contact information for each of your elected officials in Washington.

http://www.congressmerge.com/onlinedb/

Would you like to see property values in your area climb?   Even if your home is not for sale, you can help the value of your neighbor’s home that might be.  What can you do?

  

Spend a few extra hours in the yard.  Fresh mulch, trimmed bushes, and green grass makes everyone take notice.  Scrape off any peeling paint and add a fresh coat.  Just those pennies spent will translate into serious dollars for you…and your neighbors!

What else can I do to make things better?   Relax.  Have some fun.  Soon.   We are…starting tomorrow.  Cruising on the Carnival Triumph from New Orleans can be cheaper than staying at home!   If you can’t go, the next best thing is to read about it until you can.  Right here:  www.johnhealdsblog.com

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: Mortgage Costs to Rise – Soon.

Please don’t be surprised.  You have heard all the news that “Home Affordability is at a peak.”   If you still don’t believe it, keep waiting…… and pay more as a result. 

Those that have aspirations to own their first home, change their lifestyle with another home, or purchase a vacation/future retirement home have a great opportunity RIGHT NOW to get just a bit more for quite a bit less!

Here is one increase that is definite.  On FHA loans, MMIP (Monthly Mortgage Insurance Premiums) will increase by .25% on new loan files initiated after April 18, 2011.   An active loan file is considered to be one that has a “FHA case number” assigned to it.  If your new loan file has a case number before April 18, you are fine.  If it doesn’t, you will pay more.

 How much more?  It depends on the home you buy.  For example, if you purchase a $165,000 home and do not have a “case number” before April 18th, your payment will be $34 more each month after the increase.  That is not the end of the world, but it is $34 each month, and you must qualify for that additional amount too!  

If you contract to purchase now, and begin the loan process, you can purchase approximately $5000 more home than you will be able to if you wait.  And THAT is assuming that interest rates remain the same.  Bets anyone?

Here is the full scoop:

http://www.quickenloans.com/mortgage-news/fha-loan-requirements

Keep in mind that you do not have to actually close on your new home by April 18th to take advantage of the lower premiums.  All you need is an accepted contract and a loan in process.  Consult a mortgage professional for more information.  If you don’t have one in mind, give Chris Meagher at Ole South Financial a call, 615.898.7152.  Take advantage of the “peak affordability” today!

In the meantime, visit www.OleSouth.com.  We define “affordability” in new homes all over Middle Tennessee.

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: Just when is Spring Break anyway?

Although it was light years ago, I still remember when the school year school started after Labor Day, and ended before Memorial Day.  It seemed like all of the area school systems had the same calendar too.  If we had snow days to make up, we would either add an extra hour to the day…or go to school during one of those teacher “in-service” training days.  Sure seemed a lot simpler back then.

I can also remember when Spring Break actually happened in the Spring.  Now, many systems are calling it “Winter Break.”   Which is it?  Well, it depends on what school system you are in… and possibly where you may travel.

At the bottom of the page are the various Spring Break schedules for the school systems of Middle Tennessee:  (Believed accurate but not guaranteed – confirm with school system if important)

RIGHT NOW, it is “Spring Break” for home buyers, especially those buying their first home!  I won’t dwell on it, but home-affordability is at a peak RIGHT NOW.   Inflation aside, the costs of purchasing a home with a FHA loan will rise on April 18th for everyone that does not have an active purchase contract in process.  Buy a new home NOW and you will get more house NOW for the same monthly payment you will have by waiting…. and that is IF interest rates and prices do not rise, which we all know they one day will.  And so will your rent.

First-time homebuyers can purchase a home with ZERO cash-out-of pocket using THDA’s “Great Start” program through Ole South Financial (898-7152).  Veterans may also purchase with ZERO DOWN using  a VA Loan.   Consult Ole South Financial, or your favorite lending professional for more information.

Even better, certain members of our armed forces are still eligible for Home Buyer Tax Credits if they purchase by April 30th, 2011 and close before June 30, 2011.  That is terrific news, especially for those returning to Ft. Campbell from recent tours of duty.  (Click below for more details.)  Remember, we have new homes in Clarksville too!   

http://www.federalhousingtaxcredit.com/service_mem.php

Now that you know “Spring Break” is NOW for home buyers, here is when it occurs in our area schools:  (check school system for most current information regarding snow day make-up calendar)

Metropolitan Nashville Public Schools     March 11 – 18          www.mnps.org

Rutherford County Schools                            March 21 – 25         www.rcs.k12.tn.us 

Murfreesboro City Schools                             March 21 – 25          www.cityschools.net

Sumner County Schools                                   March 11 – 18           www.sumnerschools.org

Williamson County Schools                            March 21 – 25           www.wcs.edu

Franklin Special School District                    March 21 – 25           www.fssd.org   (balanced schedule is 3/14 – 25)

Wilson County Schools                                     March 14 – 25            www.wcsschools.com

Lebanon Special School District                   March 14 – 25            www.lssd.org

Maury County Schools                                      March 21 – April 1   www.mauryk12.org

When your kids learn of “Spring Break” in Maury County, they will want to move there.  Why not visit the new homes we have there in Cobblestone and Meadowbrook?  Learn more at www.olesouth.com!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

Nashville New Homes: Good times ahead for Landlords.

Buying a home isn’t for everybody.  If you are not sure about your current job, marital status, or a host of other varibles, you may be better off just renting a bit longer until your life settles in.  It may also be that you are self-employed and find it hard to obtain financing with all the changes in the mortgage market.  Or, through no fault of your own, you may have lost your job and not been able to pay everything on time every month over the past years and now your credit score is hindering your ability to get a home mortgage.

For those that do not fit any of the above scenarios, but are still renting for whatever reason, you really should give serious consideration to home ownership.  Read more here:

http://www.ehow.com/info_7930598_average-apartment-rent-increase.html

Rising costs are based on supply and demand.  The cost of many materials used in the construction of new homes are increasing.  The price of oil effects the cost of everything too, and we all see what is happening there.  Good news for prospective home buyers – these rising costs have not been passed on to the consumer – YET!

But at some point they will be.  If you don’t believe me, perhaps you can believe Warren Buffett:

http://www.usatoday.com/money/economy/housing/2010-03-01-buffett01_ST_N.htm

First time home buyers can still purchase a new home with zero cash out of pocket.  So can eligible Veterans when using a VA loan.  And don’t forget, certain members of the US Military may still be eligible for last year’s $8000 tax credit!  Here it is direct from the IRS website:

  • Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

    • So get out there and explore your possibilities!  It doesn’t cost anything to look.  But it might cost you something if you don’t…on the first day of every month! 

    Here are our newest spots from Home Center Network, Comcast Channel 49.  You can see all of our neighborhoods daily at 9:00 am & pm, as well as our website, www.OleSouth.com. 

    Where are YOU going to be when the rent goes up?  Why not in your very own brand new Ole South home?

    Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee

    Nashville New Homes: It’s not personal.

    In new home sales, or any sales field for that matter, there is rarely the perfect time to schedule a week-long trip.  What are you going to miss?  What will you return to?  These are questions that go through the mind.

     This year, we managed to select the perfect week for our mission in Honduras, which hopefully you read about in past postings.  We missed the largest snowfall of the year and we missed the most frigid temperatures recorded this winter.  On our return day, the weather turned near perfect!  What timing!

    The warmer weather turned loose a hotbed of activity in the new home market with our sales and traffic at levels we had not seen since the home-buyer tax credit expired last year.   I am proud to say that ALL of our available new homes in Nashville’s Spencer Hill are now pending!   And we’re starting more, even a 4-bedroom home for $149,990!

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    The traffic surge continues into this week too, thank goodness!   And according to this, the same trend is developing in Nashville!   http://kennethbargers.com/2011/02/09/2011-home-sales-begin-with-increase-in-the-greater-nashville-area/

     The one thing all prospects have in common right now is they all are expecting  “a deal.”   

    They’ve heard all the national statistics on home sales and they are also hearing us shout “now is the time”  from our rooftops.  They are reacting by exploring their options.  We have to react smartly and cannot afford to let emotions block the way to a potential sale.    

    There have been recent examples of transactions that could not be fathomed at any other time.  Mansions listed for 1.5 million selling for 800k, short-sales of homes where 180k is owed selling for 150k or less, etc.  Transactions like these are what prospective buyers have heard about.  Even though these transactions are not the mainstream in Nashville, their expectations have been raised.  It is our charge as Realtors to keep expectations in check, but most of all make everyone involved realize that “it’s not personal.”

    Realtors are solutions to needs and desires.  Most Realtors have a realistic idea of what can be accomplished in a successful deal and set expectations accordingly.   Listing Agents and Buyer Agents have a duty to set parameters within reality. 

    Buyer agents have an exceptionally difficult task in balancing their clients expectations and the reality of a successful offer.  Their clients have to know that they hit “rock-bottom”  without leaving a single dime on the table.  The process may start with an offer of ridiculous expectations, and it may start with an offer closer to reality.   It depends on the Buyer Agent and the desires of their client, but in neither case is to be taken “personal.”

    Listing agents also have their hands full.  When was the last time you presented an offer to your “seller” only to hear  “They want WHAT?  Do they think I am a fool?  To hell with them, etc…”  The listing agent also has to set expectations, and focus much harder on taking emotions out of the picture when presenting offers.  “It’s not personal!”

    Nashville is very fortunate to have a diverse population, and especially fortunate to be a destination for people relocating to the United States from other countries.  Negotiating tactics vary and must be kept in perspective.  In many countries, negotiations start AFTER everyone has agreed.  All of us have to know that this is simply a process and not an indication of the buyer’s honor or integrity.  “It’s not personal.”

    In negotiating a recent contract, the laundry list of items and price concessions appeared endless.  You CAN do this and that.   Yes, technically we could.  But, we won’t.  It’s not personal.

    The most important ingredient to any negotiation is the element of mutual RESPECT.  Without that, your deal will go no where.

    Let the negotiations begin!

    Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee