VOL. 41 | NO. 9 | Friday, March 03, 2017
Five simple rules to guide your real estate adventure
With an increase in mortgage interest rates in place and more on the horizon, residential real estate is La La Land no more. Some of the younger buyers are so distraught over missing the rates in the three percent range that they are outraged.
The venerable Cory Owen, a senior mortgage officer with Regions, was referred by a former client to a younger buyer. The conversation was going along well, until the prospective buyer asked the interest rate. When Cory informed him of the rate, the person hung up on him. It was more fun when a dial tone followed when people slammed the phone into the receiver.
No dial tone for Cory. Dead air.
Apparently, winter skipped Nashville this year unless we encounter another March blizzard. Warm weather leads to hot sales and many will be making offers. Based on articles and columns from various publications, most readers can only digest – or only want to digest – a maximum of five things as it relates to any matter. Either that or everything can be summarized into five points.
For example: “The Five Things Vanderbilt Must Do to Win the Next game” or “The Five Things Vandy Did to Win yesterday.” Some add a dollop of intrigue with titles such as “The Five Things Your Manicurist Does Not Want You to Know”.
In that vein, here are the Five Things Your Realtor Probably Does Not Say When you Write an Offer to Purchase Real Estate:
n “You want the termite inspector to find termites.” If the termite inspector does not find termites, the buyer must treat the house and bear that expense. The reason is simple – there will be termite infestation at some time if the buyer does not treat the house. Pray for termites. Oodles of termites.
n “You want the house to appraise for the sales price and nothing more.” The house is sold at that price, and it is set in stone. In most cases, the appraisers are hired by lending institutions to ensure that the property is worth at least as much as the sales price. Consequently, most appraisers shoot for the sales price and make no effort to overshoot that number. In some cases, the sales price is so far under the market, that they are forced to appraise it for over the contract sales price. That causes glee to buyers who think they have gotten a great deal. Guess what? If the bank’s appraiser cannot get it as low as the sales price, neither can Metro’s appraiser. Expect a tax hike.
n “When you move into the house, it will be in deplorable condition and house thousands of germs.” The old contract specified that houses had to be “broom clean,” and the 2017 contract states that the house will be in the same condition as it was at the time of purchase. Seldom does a house that is on the market look the same as a house that has been cleared of all the furniture and décor that provided breeding grounds to insects and vermin alike. There will be dust bunnies and stains. There will be puddles of sticky masses. In many of these situations the seller has hired and paid “professional cleaners.” Cleaners are not certified, nor are they governed. They are free agents. Once paid, they do not return.
n “New homes must be inspected as should small condos and “as-is” homes.” To steal a line from my friend, attorney Jean Harrison, “Passing codes means it got at least a D-.” All homes should be inspected. And remember this, as the late, great Walter Jowers, inspector extraordinaire, used to say, inspectors “cannot see through walls and they cannot predict the future. “ while on Jowers, another memorable Jowerism is:“ Lead paint is like dog poop. If you don’t eat it, it won’t hurt you.”
n “You need a survey.” Boundary disputes are not covered by title insurance. Unless a buyer has a full-blown, staked survey no one knows who owns what. Fences, tree lines, walls, streams and oral history have no bearing on who owns the dirt beneath them. Buyers who love surprises should buy homes without staked surveys.
Sale of Week
This week’s “Sale of the Week” goes to 4412 Elkins Avenue, a 1,418 square-foot home that has worked three bedrooms and a bath and a half into the structure. The property is listed by Tony Carletello, a shining star agent with the Weichert Company and a two-time recipient of the “Sale of the Week”.
Fridrich and Clark’s Tom Fussell, a winner of the Lifetime Award of Excellence, had the starring role as he delivered the buyer who payed $260,000 for the house that was listed for $325,000. A tearjerker as a teardown, this home had been in the Carletello family since 1938 and was the sentimental favorite for this award.
Uh oh. Stop the presses. There has been a mistake. The Nashville Ledger apologizes for this and regrets this for the Carletello family, but the ‘Sale of the Week” this week is actually 105 Lauderdale listed by Rita Rita Rita Hayworth Puryear and Trudy Byrd, the Byrd Woman. This duo is the Amy Poehler and Tina Fay of modern day real estate and listed the 3,918-square foot home for $649,000.
With four bedrooms, three full and one half baths, hardwood floors, new kitchen with granite and stainless steel, of course. With both of these sales, it is worthy to note the discrepancy between the list price and the sale price as bartering is coming in vogue. Look for next season’s lineup to follow this trend.
Lara Kirby of Kirby Real Estate played the supporting role as she represented the buyer in the transaction in the highly popular Cherokee Park. The Byrd Woman noted that there was a two bedroom/two bath/kitchen with a separate entrance upstairs, perfect for the kid that won’t leave, the returning parent, Airbnb – properly permitted of course, and get ‘em while they last- or a LTR (Long Term Rental)
Richard Courtney is real estate broker with Christianson, Patterson, Courtney and Associates and can be reached at firstname.lastname@example.org