» Subscribe Today!
The Power of Information
Home
The Ledger - EST. 1978 - Nashville Edition
X
Skip Navigation LinksHome > Article
VOL. 45 | NO. 9 | Friday, February 26, 2021

Zero, 1 day on market new norm in hot winter market

Print | Front Page | Email this story

4613 Villa Green

Over a closing table this week, Brandon Miller, a founding member of Wagon Wheel Title, waxed brilliantly on his observations as a residential real estate closing attorney. During its 15-year of existence, Wagon Wheel has blossomed into one of the leading title companies in Nashville with Miller witnessing numerous closings for properties located in all geographical areas of Greater Nashville.

Miller said that he often asks the buyers or sellers how long the home changing hands was on the market. The answer is a virtual tie between one day on the market and never placed on the market.

Additionally, Miller said that the California migration gave way to New Yorkers last spring, but lately he has seen more from Chicago than any other group.

As far as the sheer number of transplants, he said there are more closings with those moving in from other areas than there were when the Chamber and other outlets were touting 100 people a day moving into the area.

In the past, the listing real estate firm held the earnest money provided by the buyer, a tradition begun during a long-dead situation in which the real estate brokers kept the earnest money as commission if a sale did not close.

This bears repeating, real estate brokers do not keep earnest money at all, ever. They never do.

Some three or four years ago, earnest money began being deposited with title companies for a number of reasons, primarily because it relieves real estate brokerage firms of liability and in mediating battles concerning whether the buyer or the seller should retain the earnest money when conflicts arise.

For that reason, title companies are more aware of the amounts of earnest monies that are deposited on each transaction.

Miller is astounded with the large amounts deposited for each transaction. One reason for the exorbitant earnest amounts is the abundance of cash closings.

Miller says he is seeing more cash closings than at any time in his career, even in sales in the seven figures. Many of those, he says, are closing with cash. In this case, he is not referring to cash borrowed from a lending institution, rather cash on deposit with a financial institution.

The elimination of the Hall Income Tax is one incentive in attracting businesses to Tennessee, he adds. The General Assembly had passed legislation on 2017 phasing the tax out of existence, and it will be fully repealed this year.

The Hall Tax was a state tax on interest and dividend income. Miller says its repeal will be beneficial in businesses in the financial services industry.

For better or worse, more and more people are moving here absorbing what little residential real estate inventory there is.

One builder was asked why he had pivoted from $2 million to $3 million homes.

“Because they will pay it,” he said. And they are.

Sale of the Week

Last week, the house at 4613 Villa Green in Seven Hills sold for $2.36 million. With 5,593 square feet, five bedrooms, five full bathrooms and two half-bathrooms, the property joined the $400 per square foot club at $422 per square foot.

The home was listed by Gary Ashton of the Ashton Real Estate Group of RE/MAX advantage, whose “Don’t sell without the intel” tagline echoes through the radio airwaves with great regularity. It was co-listed with Tom Ritchie, one of Ashton’s entrusted cohorts who does quite a bit of the heavy lifting during the transactions.

In this listing, brokers are instructed to “contact the co-list agent with questions or offer.” In this particular sale, Ritchie was listed as the “sales agent” in Realtracs.

Although it was listed for $2,359,000, the buyer paid more than list price to purchase the house, driving the final sales price to $1,000 more than list.

The home was described as boasting the “height of modern luxury with stunning interior details, architectural finesse and unbeatable charm. While “architectural finesse” is hard to beat, it gets better. The “home carries a beautiful contrast between its dark accents and bright, airy palette.” It does not get much better than that as for home description.

The sellers had paid $1.85 million in December 2018, providing a 27% appreciation for two years.

In this market, the prices continue to inch upward as the inventory shrinks and the pool of buyers grows.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty, LLC and can be reached at richard@richardcourtney.com.

Follow us on Facebook, Twitter & RSS:
Sign-Up For Our FREE email edition
Get the news first with our free weekly email
Name
Email  
TNLedger.com Knoxville Editon
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 0 0
MORTGAGES 0 0 0
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 0 0 0
BANKRUPTCIES 0 0 0
BUSINESS LICENSES 0 0 0
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0