Truth about housing market in Nashville?? (Brentwood, Charlotte: real estate market, apartment, rental)

[Anise]

Hey, y'all... yep, I've lived in Nashville for 11 years now, so I do get to say y'all...

I'm looking for opinions on what people think is REALLY happening with the real estate market in Nashville. I want to buy a house this summer. I need to have the option of renting it through a property management company if I do leave in 2-4 years (which is likely.) So I'm looking at something small, and I've picked out 2-3 neighborhoods (Charlotte Park/West Park, Thompson Lane area, maybe Inglewood.) I'm not planning on reselling the house within such a short time frame if I leave then, because there would be no way to make sure I could get my money back-- just on renting it. I'm also not planning on making money off of all this, just on breaking even. Basically, I do NOT want to rent anymore. I can't TAKE renting anymore. My landlady will be selling the rental house I'm currently in this year for commercial development anyway, and I absolutely DO NOT WANT to rent in Nashville for one more minute. (Did I mention that I think I'll go nuts if I spend any more time renting? ) Also, I like working on a house. I do have pre-qualification for what I want to spend, and I really think I can stay in that price range (up to 125,000 or so.) I even have great financing if the house turns out to need structural work (new roof, HVAC, even siding!) on appraisal, which is exactly where a lot of people have been running into trouble with their mortgage brokers lately (conventional loans are falling through now in cases like that.) And it's just me and a cat; no kids, no husband, no dog.

All of that being said, where does everyone think the housing market is actually going to go here? I do NOT want to wait around very long to see before I buy a house. Yet I'd feel better if I had SOME kind of idea.

[alleycat]

Hi, neighbor.

Just a few comments, from someone who's "been there, done that".

No one can tell you for sure what the housing market will do (no more than anyone can tell you what the stock market is going to do). I think house prices in a few areas of Nashville have gotten a little bit ahead of themselves, but I don't think it's major. The areas you mentioned are probably pretty safe; I don't think they've had the big run-up that some other areas have (but I don't really keep up with that sort of thing).

You say you like working on a house. You probably will, but it can be a headache at time, such as when the water heater goes out on a Sunday afternoon, or the heat pump needs replacing (you can't just pick up the phone and call maintenance and then let them handle it). I have a saying that's mostly meant as a joke, but there's a lot of truth to it: First you have the house, then the house has you. It's always something with a house. Just something to keep in mind.

In the long run you can come out better financially owning over renting. But . . . that is over the long haul, and it certainly takes more effort. I paid off my mortgage early some time ago. I still have to pay taxes and insurance, of course, but it's nice not having to pay a $1000 or more mortgage payment every month. I'm currently actually looking at buying another house in a different location (due to some family issues), but, theoretically, I would never have to pay rent or a mortgage for the rest of my life. I currently live in Bellevue by the way, which is a pretty nice neighborhood.

And one last piece of advice, take your time, find the house that's right for you, be sure of the condition of the house (have a professional inspect it if necessary), and (to restate the old advage) . . . . location, location, location. And take a trusted friend along with you before you sign on the dotted line. Ask them to be completely honest with you about what they think of the house. Sometimes, when you think you've found the perfect house, your emotions can overrule your brain (there will also be a kindly real estate agent by your side gently trying to convince you to buy the house; no offense meant to real estate agents at all, that's their job, to sell houses). Someone who is less "involved" can see things that maybe you can't.

Good luck.

[akm4]

I can tell you what happened to me today. We made an offer on a home in Brentwood for 10K over asking and lost it to an offer for 40k over. Let me just say this IS unusual. Even the seller's agent was shocked. Still......it happened.

[Anise]

(you can't just pick up the phone and call maintenance and then let them handle it). I have a saying that's mostly meant as a joke, but there's a lot of truth to it:

Well, that's a big part of the problem. I can't do it now, either. All maintenance has been completely stopped on this rental for about a year. I almost died of shock when the landlady replaced the water heater several months ago, but that is ALL she has done in the past year, and I made it clear to her before this happy outcome that I had photographs and witnesses to the breakage NOT being my fault. Repeated phone calls, personal visits, and pleading for everything else, including many in writing, go ignored. The wiring is a 60-amp joke. (What do you want to bet it's still knob and tube under there, under the cosmetic GFCI'S?) There's a tree growing on the roof and a wildlife sanctuary in the attic. :P I have to do everything. I've spent unreal amounts of time on the yard, landscaping, and garden. [/i]And if I'm going to do everything/pay someone else to do everything/whatever, I'm real tired of doing it on someone else's house. This particular situation is pretty bad, and I think it's caused by the fact that she'll likely be selling the house to be demolished this year. But I have never found a substantially different situation in Nashville when renting a house-- that's ALWAYS a train wreck as far as what you get from the landlords. And I absolutely refuse to go back to renting aparments. I just won't do it.

Truth of the matter is, I'd rather buy a $70,000 house, KNOWING the major repairs and upgrades I would have to pay for in the BEGINNING, than keep renting in Nashville. If I bought something at that price, I could easily have $10,000-$15,000 worth of repairs done up front (let's say HVAC, new roof, rewiring, new siding, plumbing...) and while I might not end up with a perfect house, it would be light years better than where I am now! Hmnmm.... maybe I've answered my own question.

[alleycat]

Sounds like you're ready for a house. I lived in apartment for ten or twelve years after leaving home; for me, it was the noise I objected to more than anything else . . . people playing their stereo too loud, TVs on at 2:00 o'clock in the morning, and, at least at one apartment, listening to my neighbors make love at night (and I guess them listening to me).

I'm not sure how many options you're going to have finding a $70K house however. That's pretty low in Nashville unless the house is in bad shape, or in a bad neighborhood. You might just think about trying for something a little nicer (say, $100K), or looking for something a little further out if you can stand the commute. Just ideas.

[Anise]

Hey, an update on the situation, because this info REALLY might be of use to others. I found out a few thingsby going down to Metro Codes, spending the day, talking to the chief building inspector and a bunch of others, and getting copies of all the permits ever filed on the house (public records.)Apparently, the owners never had any permits for any of the additions they ever built. But it gets better: they were cited in 1992 for these code violations, and given a summons and a court date. (!) I will find out more on Monday when I talk to the person at Environmental Sessions Court (and oh, but much I had to dig to find her,) but it looks like the owner was fradulent when she stated in writing that she "didn't know" about x,y,z problems with the house, because Metro Codes official report proves that she DID know.

Now, this isn't relevant to me directly, because I didn't buy the house. If I had, the owner would the only person to go after legally, and it would be a very good case. But the thing is that I now know the owner will almost certainly never be able to sell this to anyone but a developer who would demolish it anyway. I WILL see it to it that her actual knowledge will get disclosed on the seller's agreement from now on. How does this help me? I'll know after the house inspection on Monday, but if the repairs could be done at a certain budget (and I know exactly what that is, and I'll get bids,) then it's worth it to me to buy that house. The reason is that houses in that neighborhood (adorably cute, but not yet very fancy) that need that level of repairs, say $15,000 worth--and she will NOT be able to fool any buyers about this again--would go for more like $60,000. I doubt she would get that price from anyone but me, because any developer would know that she was absolutely desperate (which she is,) and none of them have come along anyway. (It's been on market for almost a year!) So, who knows. This could still work out very well. And the moral of this story is: go down to Metro Codes and make friends!!