Why is Nashville (greater area) real estate so cheap to East TN?

[Music City USA - KimP]

Originally Posted by Pepster

DonCorleone

I am thinking about looking for a foreclosure or short sale in Nashville next year. What kinds of headaches do your friends mention? I know short sales take a long time, and banks are not always responsive. Foreclosures are often not maintained for a while. Anything else that your friends experiences should warn me of? Or anyone else have any thoughts? Thanks.

Short sales do take quite a while unless you offer full price with no contingencies, and no inspections. Also, if the listing agent doesn't know what they are doing it can make things unbearable.

Some foreclosures are just fine and at a reduced price. Again, offering full price and with no contingencies will speed things up. Often times people are very unhappy that they have been kicked out of their house so they will wreck the place intentionally. Again, if your buyer's agent hasn't had any experience with handling foreclosures, it could work more to your disadvantage.

When you get an agent, find one with short sale and foreclosure experience and make sure they're telling you the truth. Ask for references.

[rossc]

I went to look at a used heat pump and air handler a little while ago. When I got there the guy walked me over to the heat pump that was connected to his house. He was selling the heat pump and everything else he could unbolt and remove because the bank was foreclosing. I commented on the nice mahogany front door with leaded glass and he offered it to me for $100. He said he had a buyer for the kitchen cabinets, counter tops and all appliances.

Needless to say, I didn't want any part of what he was doing, but I'm sure some took him up on it. He wanted $500 for a 3 ton heat pump and air handler.

[MontanaGuy]

I moved to Nashville in January of 2008 from Phoenix but before I moved I traveled all over Tennessee trying to find a place I would like to live with reasonable real estate prices. Websites for real estate can often be misleading because you really don't know what a house or neighborhood is like unless you go there in person. Eastern Tennessee was much cheaper than Nashville when I was looking and I doubt very much that it's changed all that much in such a short time period. Sometimes I'll look at local real estate even though I already bought a house just out of curiosity. Often you'll see very attractive photos of a house both inside and outside but when you see it in person it's probably in a really run down neighborhood if the price is fairly low. As others have said, the location is extremely important. If you bought a house here for about $100,000 I can guarantee you that it would either be in a really shabby neighborhood with high crime or need a tremendous amount of work. I ended up spending $186,500 in East Nashville and although my immediate neighborhood is pretty nice the house needs alot of fixing up and I think my situation is very typical. Good luck.