Nashville Real Estate in Interview for Smart Money Magazine
The other day I was interviewed by a writer for Smart Money magazine. She was looking for a financial planner to comment about the real estate market and specifically what a buyer or seller should do right now.
Since I’m the “go to” person for the Financial Planning Association in Middle Tennessee for questions about real estate and finance, I was a great resource for the article. As a Certified Financial Planner® and licensed Realtor®, I have a unique perspective on the market. And, since I also own and operate a mortgage brokerage I added valuable insight about how that affects your real estate decisions as well. I’ll share with you a bit of our discussion.
First, let’s talk about sellers. On the surface, it would be simple to just say the market has shifted. It’s a buyers market now. If you don’t have to sell don’t.
While that may be true, it doesn’t do much for the thousands of homeowners that really would like to sell (or the thousands more that need to sell). For people that have owned their home for several years (and haven’t refinanced to access their equity), you are in good shape. You may have to price it more aggressively, or do a bit more to make it stand out for buyers, but homes are still selling..just not at the rate we’ve seen over the last few years.
For those sellers who don’t have much equity and really need to sell, you might consider doing something creative like offering the buyer a lease option contract. This could help you get a premium price for the property and the buyer can delay the financing process for a year or two. With the financing market in a state of turmoil, that could be a really good thing.
A word of caution. There are many issues to consider in a lease scenario if you want to make sure your interests are protected. This is not a contract to enter into without professional help. Buyers really just want to rent with the seller locked into a price IF they decide they want to buy. Sellers want to know the property is sold and may be willing to wait a little while (the shorter the better) for all the paperwork to go through. In many cases, the buyer and seller are worlds apart. A professional can help the parties come up with an arrangement that works and put it in writing so that everyone is bound by the terms that were agreed to.
So, what about the buyers? And remember, most sellers are also buyers. In fact, if the house you’re in now isn’t your dream home, now could be a great time to make a change. You could find a property selling for 10% less than it would have sold for last year if it’s been on the market for a while.
Keep in mind that desirable properties still sell VERY quickly. In fact, a couple of homes I’ve sold this year were under contract within a couple of days. Suggestion…if you do want to buy and know that what you’re looking for is unique, don’t be timid about making a quick offer. You may be looking for a long time to find something that is only a compromise compared to the one you missed.
In most cases, buyers would really be in the driver’s seat now if it weren’t for the melt down in the mortgage market. It is much more difficult to get financing…and it seems to be getting more difficult by the day. You should make sure your pre-approval has been updated in the last 30 days or you could end up with an unpleasant surprise when everything is ready to submit to the lender. There are still programs available for most borrowers even if you have no down payment. You just need a professional who knows where to squeeze you in.
Whatever decision you make, you should plan to stick with it for at least a few years. Things should level off next year but we will still have to work through the healing process to get back to a state of equilibrium in the real estate and finance markets.
Clients appreciate my candor, honesty, and patience while they go through their decision making process. I don’t try to sell them anything. The deal sells itself (or not). I am a licensed CPA. While I no longer practice accounting, I was trained to render unbiased opinions. Some habits die hard, especially when you don’t really want to kill them.
If you’d like to talk further about how you can put my Nashville-Middle Tennessee Real Estate Services to work for you, visit www.FivePointsProperties.com. To search the MLS listings for Nashville-Middle Tennessee real estate, click on the large map on the home page.
Since I’m the “go to” person for the Financial Planning Association in Middle Tennessee for questions about real estate and finance, I was a great resource for the article. As a Certified Financial Planner® and licensed Realtor®, I have a unique perspective on the market. And, since I also own and operate a mortgage brokerage I added valuable insight about how that affects your real estate decisions as well. I’ll share with you a bit of our discussion.
First, let’s talk about sellers. On the surface, it would be simple to just say the market has shifted. It’s a buyers market now. If you don’t have to sell don’t.
While that may be true, it doesn’t do much for the thousands of homeowners that really would like to sell (or the thousands more that need to sell). For people that have owned their home for several years (and haven’t refinanced to access their equity), you are in good shape. You may have to price it more aggressively, or do a bit more to make it stand out for buyers, but homes are still selling..just not at the rate we’ve seen over the last few years.
For those sellers who don’t have much equity and really need to sell, you might consider doing something creative like offering the buyer a lease option contract. This could help you get a premium price for the property and the buyer can delay the financing process for a year or two. With the financing market in a state of turmoil, that could be a really good thing.
A word of caution. There are many issues to consider in a lease scenario if you want to make sure your interests are protected. This is not a contract to enter into without professional help. Buyers really just want to rent with the seller locked into a price IF they decide they want to buy. Sellers want to know the property is sold and may be willing to wait a little while (the shorter the better) for all the paperwork to go through. In many cases, the buyer and seller are worlds apart. A professional can help the parties come up with an arrangement that works and put it in writing so that everyone is bound by the terms that were agreed to.
So, what about the buyers? And remember, most sellers are also buyers. In fact, if the house you’re in now isn’t your dream home, now could be a great time to make a change. You could find a property selling for 10% less than it would have sold for last year if it’s been on the market for a while.
Keep in mind that desirable properties still sell VERY quickly. In fact, a couple of homes I’ve sold this year were under contract within a couple of days. Suggestion…if you do want to buy and know that what you’re looking for is unique, don’t be timid about making a quick offer. You may be looking for a long time to find something that is only a compromise compared to the one you missed.
In most cases, buyers would really be in the driver’s seat now if it weren’t for the melt down in the mortgage market. It is much more difficult to get financing…and it seems to be getting more difficult by the day. You should make sure your pre-approval has been updated in the last 30 days or you could end up with an unpleasant surprise when everything is ready to submit to the lender. There are still programs available for most borrowers even if you have no down payment. You just need a professional who knows where to squeeze you in.
Whatever decision you make, you should plan to stick with it for at least a few years. Things should level off next year but we will still have to work through the healing process to get back to a state of equilibrium in the real estate and finance markets.
Clients appreciate my candor, honesty, and patience while they go through their decision making process. I don’t try to sell them anything. The deal sells itself (or not). I am a licensed CPA. While I no longer practice accounting, I was trained to render unbiased opinions. Some habits die hard, especially when you don’t really want to kill them.
If you’d like to talk further about how you can put my Nashville-Middle Tennessee Real Estate Services to work for you, visit www.FivePointsProperties.com. To search the MLS listings for Nashville-Middle Tennessee real estate, click on the large map on the home page.
posted by Dr. Gala at 7:42 PM
