Nashville suburbs real estate market trends question (Franklin, Green Hill: for sale, new home) - Tennessee (TN) - City-Data Forum

Mi shots · 04-06-2014, 07:04 AM

So we are finally here and looking at homes. We are ready to buy (like yesterday).

Me and my husband keep going back and forth with prices. Would like to know what you all think.

We understand the Nashville real estate is hot but according to the FHC homes prices have appreciated but not to the levels of the height of the housing market of 2006. Yet with this in mind, it seems many people are pricing their house in the same price range or sometimes even more than 2006 pricing.

I don't get this. There is nowhere, no reports, etc... That Tennessee real estate is back where it was in 2006.

What are your thoughts on this? What are your thoughts on houses sitting on the market for 4-6+ months without any price reductions?

How would you base your bid on a house when there are 10-12 house within a small subdivision, that are similar in quality? Would that be a red flag for you?

Thanks in advance. Just looking for some input other than my agent.

citymama · 04-06-2014, 07:13 AM

If there are 10-12 houses in the same subdivision of similar quality, then I would say the buyer has the upper hand with negotiations. Does you agent tell you the average time it's taking homes to sell? When we were down there it was about 90 days. I have no clue why a seller wouldn't drop price after 4-6 mos. Maybe they feel that spring/summer is the time to buy so they'll do a big drop in the Fall?

Mi shots · 04-06-2014, 07:22 AM

Quote:

Originally Posted by citymama

If there are 10-12 houses in the same subdivision of similar quality, then I would say the buyer has the upper hand with negotiations. Does you agent tell you the average time it's taking homes to sell? When we were down there it was about 90 days. I have no clue why a seller wouldn't drop price after 4-6 mos. Maybe they feel that spring/summer is the time to buy so they'll do a big drop in the Fall?

Well the house is $509,000. They probably put in close to $100,000 (gorgeous backyard). Agent said they paid $500,000 (in height of market). It's one of the higher priced homes. Been on market for awhile. I want to make a bid but I think I might be wasting my time.
And to top it off, the listing agent is playing games. Last time we were here we picked up one of those home magazines that you see in the supermarkets. The home was listed in there for $499,000. We thought they dropped their price. So I had my agent call the listing agent. We of course she said that was a mistake. We overheard the phone conversation. The listing agent said "it's only a $10,000 difference, tell them to make a bid"

Well, what do you know? We pick up the lates Home magazine the other day and there is the same mistake. I feel like reporting her for unethical practices.

citymama · 04-06-2014, 08:35 AM

In my limited experience, real estate agents can't fully be trusted. They want the commission, are bounded by certain laws, but will work more together to get the sale to go through than be totally honest. They can make the comps work in their favor, etc, etc.
It's your responsibility to do your due diligance to protect yourself. If you love the house, offer what you think it's worth, despite what your agent says. It can't hurt!

46Barb · 04-08-2014, 02:02 AM

Something sounds strange with that house and the listing price versus what the seller's realtor is saying. If you really want the house & feel comfortable with the neighborhood, then make an offer and see what happens.

I know in my neighborhood the new homes that were purchased back in 2006 & 2007 and still getting what they paid for them if not a little more.

libertyme · 04-08-2014, 07:16 AM

It's the opposite here in my neighborhood in Franklin. The people that bought in 06 and 07 will never get what they paid now because the building has resumed in our neighborhood and you can now buy a house for 100-200K less than what they paid. They are PO'd but there's not one thing they can do about it. So it depends on the neighborhood, that is for sure.
If you don't want to overpay like these people did, do your research and then some, be patient, and be willing to walk if your offer isn't accepted.

pollyanna22 · 04-08-2014, 10:57 AM

I was talking to an appraiser and he said homes are appraising for 15-20% more than they did 2 years ago in the Green Hills area.

Why do you think the home you are interested in hasn't sold yet?

Hey_Hey · 04-08-2014, 04:02 PM

It's very local. I saw a statistic on some Nashville real estate website that said the 37212 never saw a drop in the median sales price, even at the lowest point of the market from 2009-2011. Houses in my neighborhood are easily 1.5-2x what they were in 2006, but a lot of that is gentrification of the neighborhood. In general, the more suburban the locale the more volatile the market.

brentwoodgirl · 04-08-2014, 04:25 PM

A house in my cul de sac just sold for more than it did in 2006, and it sold in a couple of days. It had multiple offers as soon as it went on the market.

You're agent needs to run the comps for recent sales, and then base your offer on that. And if the owners are unreasonable, just walk away. There are plenty of houses out there.

Vandy-bound · 04-08-2014, 07:05 PM

We are in the process of putting our house on the market in a week or so. We had our realtor run the comps, and went into it with realistic expectations. A neighbor down the street is also getting ready to put their house up for sale--and are planning on listing WAY above the $/sqft. that the area demands. It will be great if they get it, but we would rather list at what the data shows is the better price and hopefully sell fast. This area's market is weird--I've heard of several friends who were under contract in ONE DAY--one in a matter of hours it was listed.

Good luck with the house you are looking at.