According to The Greater Nashville Association of REALTORS®, there were 2,270 home closings reported for the month of May. This is a 27.3% increase from closings reported for May 2009. This brings the year-to-date closings to 8,607, which is up 20.4% from same period last year.
The home buyer credits have been a great boost to home sales and we will see closings through the end of June that still qualify for the tax credit. However, we are also seeing buyers take advantage of the historically low rates that are still out in the market today. That’s not to say that the market will not feel the end of the tax credit because we expect it to soften a bit. But people always have to move for various reasons and Middle Tennessee is thriving more than many cites and areas in the country so the housing market is expected to remain strong.
Inventory of houses at the end of May was 24,007, down a little bit from the 24,598 reported in May of 2009 but still is a good supply of homes to choose from. With a good number of homes to choose from and historical low interest rates it remains a great time to purchase a home!
I have talked to several people this month who are a bit confused about the deadline for the homebuyer tax credits so I wanted to remind you of the basics.
You must have a property under contract by the end of the day, April 30th, 2010 to close by June 30th of 2010 in order to qualify for the home buyer tax credits. However, you also must meet other qualifications as well. So just because you purchase a house within the allotted time frame does not guarantee that you will receive the tax credit. Make sure you check with your accountant to make sure you qualify as they are the best people to ask outside of calling the IRS.
You will also need to have the correct paperwork (#9) to give to your accountant in order to receive the credit. Again, talk to him or her to get the latest information. Realtors and mortgage lenders can give you the best information they have but, to know for sure, always talk to the person who does your accounting and taxes as they have up to date information.
I was talking to a friend of mine the other day about going to the CDPE (Certified Distressed Property Expert) class and getting my certification to let them know if they know of anyone in the current economic climate that is danger of loosing their home to please let me know ASAP. When I explained all the things that I could help them with he was visibly impressed.
He then commented that if distressed sellers only knew they had real options and help out here they would be clamoring to my door. I told them that is why we need to educate sellers so they have the latest and best information available to them. One thing I know is this; smart sellers choose smart Realtors because they understand that they need us to get things done quickly, efficiently and legally. That’s why Realtors like me go back every year and get additional training. This year it was CDPE but next year it may be something else we need to know in order to help our clients. Staying current is key to everything we do to serve you the best way possible.
One of the things people have a hard time deciding is when to call for help once they have done everything they can and a room still doesn’t work. Many just give up and live with what they have. What you may not know is, in many cases, all you need is a little direction for color, texture and style and a little tweaking to get your room working for you.
While you may not know who to call, Realtors have a plethora of contacts that include Interior Designers and Home Stagers that could easily help you. We also know people and companies that can help you outdoors as well if you are struggling with getting your outside looking as good as you would like. While we use these people to help sellers get their homes up to snuff and ready to sell, they can also help you get your home and yard to a very livable and wonderful place to be every day. Don’t forget to call your Realtor and ask for those valuable contacts!
It is amazing how easy it is to do business when you receive a referral. At the same time getting that referral may be one of the hardest things to do if you don’t have a systematic way to bring them in on a daily, weekly or monthly basis. This is always the paradox in a business: do you work on marketing your business or doing your business. I have learned that if you don’t market your business, there is no doing and the best way to market is through a referral system.
A referral is a warm fuzzy lead that comes from someone you know. Realtors live and die by their referrals. If we have a circle of influence that is built on trust and integrity then we will succeed if we continue to work and produce good results. If we do not have that circle of influence we either have to build it or eventually we will go do other things. With a referral I sold my first house; many houses in between and my latest house. My largest sale was also from a referral. Without the power of referrals, many small businesses would be hard pressed for business today. Thank you to all who have trusted me with your referrals and to those who will do so in the future; they will be returned in time.
Over the past few months I realize that many first time buyers think Realtors can give them information or arrange for certain things that they are not licensed to do. In an attempt to clarify what a Realtor can and cannot do for a buyer I have put together a list of things that Realtors may be able to recommend or pass along information to you but cannot actually do these things for you.
Realtors in Tennessee do not:
- quote daily interest rates though we can look averages up or call a loan officer to pass along this information
- lock loans
- take loan applications unless they also have a current mortgage license in the State of TN
- order appraisers though we do let them in the properties to perform their assessments
- choose appraisers or do appraisals
- inspect homes
- do termite letters
There are things we will help you with or find someone who can, however, there are things that have to be done by specialized licensed people outside the realm of what a Realtor is licensed to do. If you have any questions about what a Realtor can or cannot do, please don’t hesitate to ask. After all, the number one thing we should do is be open to answer any and all questions a buyer and answer as best we can or find someone who can.
Though this has been a difficult time for many Realtors, my business has continued on in a “steady as you go” way. I have been able to complete my CRS Certification during this time as well as list and sell homes. Have there been times I have wondered if I’m doing the right thing; of course there has been but the proof is in the pudding and I am convinced that without BNI and the people I have come to know in the Metro Chapter, I would not have been able to keep it going this year.
While other Realtors have retracted I have practiced what I have learned in BNI and other organizations before this and have reached out and expanded my reach and my business and my business has grown in a down market. I am writing this to encourage you to do the same and to get involved in a BNI group; hopefully the Metro Chapter.
The Metro Chapter is having a Visitors Day on May 19th, 2009 at the East Park Recreational Center on Woodland Dr. in East Nashville from 7:45 AM – 9:45 AM. If you would let me know that you are coming I will make sure there is a space for you. The cost is $10.00 and you will get to meet other likeminded marketers as well. If you have never been a part of a group like this you owe it to yourself to come see what we are about. I hope to see you there!
Here is a brief and accurate account of what happened in the month of April in the real estate market in Nashville according to the Greater Nashville Association of Realtors®.
There was a decrease in sales (closed transactions) of 28.5% from April of 2007.
Year to date numbers for 2008 reflect a decrease in sales of 28% compared to 2007 numbers for the same timeframe.
Though sales were down, the median price for a home in the area has risen to $180,000 for April, which is slightly higher than it was compared to April 2007 when the median price for a house was $177,900.
The median price for condos for the same period was $162,000 April 2008 compared to $163,900 for April 2007, which is a slight decrease.
Inventory for April 2008 was 24,670 compared to April 2007, which were 20,129.
A couple of observations:
The year to date numbers is very close to Nashville’s 2001 numbers and reflects a strong real estate market during what has proven to be a very difficult market in other areas around the nation.
Also, if you look at what top lenders have said about the demise of “sub-prime” lending lowering the buyer pool by about 1/3rd, then it makes perfect since that we are down. The good news is that sales are above the 2/3rd’s mark, which again reveals that we still have a thriving real estate market here in and around Nashville, Tennessee.
