UP! UP! UP!

You heard it here first - mortgage loan applications are on the rise. Nationally, applications are up by 7.5%. Rates are down with the average hovering around 4%. It's a great time to buy. Check out Nashville Business Journal's article HERE.

In Williamson County (TN), prices are going up - up 18% over last year. No one is expecting the prices of 2006 and 2007, but prices are going up. We're seeing the largest increases in the $300,000+ market. Those priced homes seem to be selling quicker.

Just a few months ago, my listings above $300,000 sold in 14-16 days. Sellers were shocked because they did not expect that to happen. In fact, they were stunned!

What gets a house sold quicker? Three things - (1) PRICE; (2) STAGING; (3) PHOTOGRAPHY. Marketing gets the house recognized and noticed by buyers and buyers' agents, but the three things listed really grab the buyer's attention so they'll want to see the house. Once inside, they fall in love with it.

There's a myth out there that a house is priced too low if it sells in under several months. Nothing could be further from the truth. A house sells quickly if it's priced correctly and the other two items are done professionally.

Sometimes a house can be priced too low. Be careful about hiring an agent who wants to list your home too low. When interviewing listing agents, ask them to show you the absorption rate. If they don't know what that is or didn't come prepared with that information, then you're talking with an agent who does not understand accurate pricing of houses.

Recently I went to a listing appointment. While there, I could tell the seller really wanted to hire me, but she felt obligated to the agent who sold her the house. It was a shame, too, because when I saw that listing online, it was priced too low - $5,100 less than I would have recommended to her.

Most of my listing appointment sellers hire me because I'm honest and realistic with them - and I work hard to get their homes sold, too!

Another thing going up in numbers is short sales. More on that later.

Those Darn Lease-Purchases!

Every so often I get questions from buyers about doing a Lease/Purchase. A buyer client asked how it works, so I thought I'd address it again.

Many times buyers think that a Lease/Purchase and a Lease/Option are one and the same. They are not. A Lease/Option is a regular lease. At the end of the lease, the owner/seller, if he/she so chooses to sell the property, gives the first opportunity to the tenant/buyer to buy it. No money is paid to the seller as a down payment, and no monies paid as rent is applied to the purchase price.

The benefit of this type of agreement is that is "holds" the house for the tenant, IF the seller/owner is satisfied with their payment history. It allows for the tenant to save up money for a down payment, and it allows for the tenant to 'experience' what is wrong with the house while living there. Under this situation, the owner/seller/landlord is still responsible for all repairs and maintenance, something that will end once the buyer/tenant purchases the property.

A Lease/Purchase, on the other hand, is a Purchase and Sale Agreement that is already in place, but the closing is in the future (usually six to 12 months away), and the terms are altered in favor of the seller/owner. Since this is a risky transaction for the seller, much more is required of the buyer. In addition, the buyer must KEEP UP the house as if it is their own property. Things such as a dishwasher breakdown has to be repaired by the buyer. A leaky faucet must be repaired by the buyer as well. But since this is still a lease, the seller/owner still has the right to inspect the property at reasonable hours with reasonable notice.

Most times, there is a larger down payment for a Lease/Purchase than a buyer would make in a normal sale. This down payment is anywhere from $5000 to 20% of the purchase price. Most times, it is NON-REFUNDABLE to the buyer should the buyer be unable to secure financing. Part of the rent may or may not be applied toward the purchase price. That amount may be as small as $100 or as much as 50%-75% of the rent amount. Most of the time, owner will not apply a large portion of the rent to the down payment because of what they owe on the property.

Both of these situations are used when the buyer has impaired credit. Credit can be affected by a number of things such as a bankruptcy, previous short sale, debt that they cannot repay due to medical bills or other high debt, etc. And because of risk, sellers will usually only sell at "their" price, which is usually the list price of the house.

Sometimes sellers agree to a Lease/Purchase or a Lease/Option because they are soft-hearted and want to help out their fellow man. Other times, sellers who engage in Lease/Purchase agreements do so expecting the buyers to loose their down payment.

Lease/Options and Lease/Purchases are different from Owner Financing. Sometimes Owners will finance a purchase. The closing occurs just like in a mortgage lender-backed situation (typically 30-45 days). Owners typically amortize (base payments on) 30 years (360 months), but may require the buyer to refinance the house within 36 months of the sale.

Lease/Purchases, Lease/Options, and Owner Financing are sometimes tricky. You'll need a good agent to help you with those, whether buying or selling.

The Big Event - Kick-Off 2012!

It's our annual Crye-Leike kick-off and we celebrated a GREAT year! 2011 was a tough year for real estate, even though we still landed at the top of the heap. Over &750 million in sales for Middle Tennessee alone is nothing to sneeze at!

CONGRATS, Crye-Leike agents. We're still #1 in Middle Tennessee. (Number 2 is at a distant $400 million in sales.) We're part of the best family of Realtors in the biz!

And a BIG THANK YOU to my clients (I'm privileged to work with the best) who helped us get to where we are!

I Remember ... We All Do!

It was a typical day at the office. My job at LifeWay involved developing presentations for church clients, and I was diligently working away on the most recent topic when my boss, Mike Priest, came down the hall looking for a TV. When he popped into my office, he said, "The World Trade Center has just been hit by a plane." In my disbelief, I responded, "Mike, that's not funny." He went to say that his wife, Carolyn, had called and that he wasn't joking. I called Stephanie and told her the news. She hadn't seen it and tuned in to see what was going on.

Across the hall, Wayne Poling offered his TV. Reception was not the best on our floor, but we managed to get a clear enough picture to then see the second tower hit, people jumping from the towers, and then the two towers collapse. It was an awful day. Work came to a screeching halt; eventually I called it a day and went home.

On the way home, I called home and Stephanie and I talked about the day's events. We agreed on what and how we would tell our children. When I got home, the TV was still on, and Stephanie and I watched the news in horror, fear, and shock. It was almost surreal. The building that I had once been in, enjoying an amazing view of one of the world's greatest cities was now just rubble and history. By then, two other planes had been cited, one damaging part of the Pentagon and the other wrecking in Pennsylvania.

We gathered our children in the living room and we told them that some bad men wanted to hurt our country. We explained that they had overtaken planes and had driven them into the buildings. We didn't have all the answers to their questions. But as best as we could, we comforted them and explained that God was still in control. We ended our family meeting with prayer for our country, the families of those who had been injured and killed, and the safety of all of us here.

Over the next few weeks, all we could do was stay glued to the TV and radio. We could not get enough. What? Who? Why? How? All questions unanswered then, but eventually answered over time. Planes had been grounded, rental car companies were out of cars given to people trying to get home, and we knew that life, as we once knew it, would never be the same.

I remembered back to my childhood and my grandparents and dad talking about the Japanese attack on Pearl Harbor. I remember, even 40 years later, the horror in their voices and the gasps in their words. It, like 9/11 for us, changed their generation forever.

The real heroes of 9/11 were those who took control of that plane intended for Washington, DC. The heroes were those police officers and firefighters who risked their lives to save the lives of others. The heroes were those family members who survived the devastation of the loss of their loved ones.

As a nation, we're resilient. We survive. We persevere. This would be no different. Ten years ago today, we remember ... remember the horror and devastation, and the lives that were lost to the anger of a group of people who wanted to hurt innocent people. But also the lives that we can celebrate who were saved because they arrived late to the office, or like the husband of my friend, Cheryl. Sam escaped death by volunteering to get everyone breakfast for his morning meeting at the WTC.

Today, even with that horror fresh in my mind, I am grateful to live in the greatest country in the world. Yes, we have problems, but as a nation, we come together in a crisis. I'm very glad that we have been so blessed.

Will you take a few moments to remember? I remember ....

A Little More Than You Want to Know?!

Recently reconnected to an old college friend through FaceBook, I got inspired to do a Google search on her. My former college friend is now a Personality Trainer and an author. And Danita is mighty good at what she does! You can read about Danita by clicking HERE.

When we were friends at Oral Roberts University back in the 1980s, she actually introduced me to my first serious girlfriend, Shauna. For some reason, I was the "token male" at an intimate birthday party for a mutual friend, Cheshire, where we all had a blast. Needless to say, Shawna and I didn't work out (because I married Stephanie), but after all these years, Danita and I have reconnected and are enjoying remembering a little about the past, but more importantly, sharing what's going on with us in the present.

Reading Danita's blog got me thinking about what people know about me. Yes, most know that I'm in real estate and that I was once married and that I have two kids (one is a senior and one is a sophomore in high school). But do you really know me? After a very messy divorce, I made the choice to become guarded. Fortunately, over the last few months and weeks, I've been challenged by friends to let that guard down a little. So, here goes ....

- I like peanut Skippy Natural Peanut Butter right out of the jar. In fact, I've always had my "own" jar. Never used for sandwiches or peanut butter and crackers, it's exclusively for eating with a spoon. I like it best with organic skim milk that I've mixed with Hershey's Syrup.

- I live in a condo in Franklin, TN. It's the modest part of town. Convenient to downtown Franklin, I walk to the Starbucks at Five Points for a Skinny Vanilla Latte on cold winter Saturdays, sometimes when it snows, or on rainy holidays like today. I always have a scone with my latte, and while there, I peruse The Tennessean to find out what the local headlines say.

- I didn't choose real estate as a career; it chose me. Our family moved to Middle Tennessee in 2000 so I could take a job as a ministry consultant at LifeWay Christian Resources (no, not the store) and loved it. The church pastors and staff that I worked with were phenomenal people. After leaving LifeWay, I didn't know what I wanted to do, but I did know that I didn't want to work for anyone else. Real estate became the natural choice after talking with my former agent, Jan Page (she's the broker at the Crye-Leike Hendersonville, TN office).

- I love rain because it feels cleansing to me. The music of the rain in the morning seems to clear away any low times I may have been experiencing, and sets the tone for a brighter day ahead.

- As a kindergartner and first grader, my best friend was David Shearon. David's family moved to Laurinburg, NC when I was six and I cried over that. We visited them in Laurinburg a few times, then they moved to South Florida. The Shearons came by to visit once when I was about 14, but I wasn't home, so I missed them. With the invention of the internet and advent of FaceBook and Craigslist, I've been trying to find David, but no luck so far.

- I was never a morning person until I married to Stephanie in 1988. She taught me how to be more disciplined from the first part of the day until the last part of the day. I miss her stability like that and her confidence in me.

- My mother-in-law died of lung cancer in 2003. Losing her was like losing my own mother. She and I were alike in personality - outgoing, enjoyed people, etc. We were very close and I'm very glad that I had a wonderful relationship with her and that my children knew her before she passed away.

- I've lived in seven metropolitan areas as an adult: Tulsa, Richmond, Chicago, Erie (PA), Virginia Beach, Jacksonville (FL), and Nashville. The two places I'd love to live: Dallas (TX) and San Diego (CA), but they're too far away from my children. My favorite place? Jacksonville, FL because I love the ocean.

- On my Dream List: backpacking across Europe. If I couldn't backpack, I'd take a European trip and stay in hotels. Either would be fine. Another dream? To own my own restaurant in an old church building. It would be fine dining, so to speak, but with really great menu items, some of which were passed down from relatives. Other things on my Dream List: write a book, go to law school, and start a charity for divorced parents who have suffered at the hands of the courts.

- The best chocolate chip cookies I've ever eaten are from a recipe that Stephanie and I tweaked. She got it from the mom of a childhood friend. Everyone loves them. And the best chocolate pie in the world is the one that my mother makes. The recipe is from Peggy Shearon, our next door neighbor when I was about five or six back in Williamsburg, VA.

- I like to cook, and I'm pretty good at it, but don't like to cook for just me. When I do, I cook enough for multiple meals and take leftovers for lunch. Leftovers are much better than sandwiches or eating out.

- My kids (Annie and Hunter) are my proudest accomplishments. I've always told them that if I had to pick out any kids for the "Kid Grocery Store" that I'd pick them out every time, no questions asked. I dream about them about three or four times a week.

- When in college, I changed my major seven times. I started with Accounting and ended there, too, but experienced communications, biology, chemistry, marketing, music, etc. all along the way. If I had it to do all over again, I would have taken a break from college for a year to work, then would have returned to major in Marketing with a minor in Communications.

- Seven years ago, a friend challenged me. He said, "Jack, you have such high expectations that you are robbing yourself of joy." I didn't like the comment, but I seriously contemplated it. The next day I began my "Gratitude List". At first I didn't think I could list even 50 items over a lifetime, but I had that many within the first 10 minutes. They flooded out of me. I now have about 2000 things on my list. That list keeps me going because it's a constant reminder that God is in charge and that I can always have hope.

- I play several instruments, and enjoy playing piano the most. I haven't played in a while because I don't have a piano any more. My favorite piano I've ever owned was a baby grand that was in our living room. Hunter can play by ear, but Annie and I play solely by note. And, no, I won't play for your wedding, your Christmas party or your dinner. My piano teacher (Mrs. Garrison) was always on my case because she said I had loads of talent, but wouldn't practice enough.

- If I could do any job without getting paid, I'd do what I'm doing now - real estate. I love it that much, but have to get paid to live. I miss the ministry, though, at times, but have no desire to go back to working on a church staff. One day I'll return, but in a different capacity.

- As a kid, I was intimidated by sports because I was awkward and gangly. My interests today are backpacking, hiking, camping, working out, swimming, and running. Notice they're all basically individual sports. In college I took backpacking five times, even though I only got credit for it twice. I also took volleyball, tumbling and trampoline, and badminton. Looking back, those were actually fun to play.

- I grew up in a dysfunctional family, but we've made it through those tough times. Looking back, they helped me to be a better man.

- My dad taught me two very significant things: (1) Never make a decision when you're down; (2) Always be the best you can be in business - offer the highest customer service. Those two things have helped me greatly in life.

- At 50, I'm looking forward to a tremendous decade. My forties were challenging, so I welcome the change. I now know that I know less now than I ever did!

- My best friend is Richard Landry. Richard lives in New England, but we've been friends since we were sophomores at ORU (age 19). Richard has a great heart and has always been a friend to me, no questions asked, even in the most difficult of times. While not typically confrontational, he's confronted me when I've needed it, and he's joined me in celebrating joys in my life.

- I work at Crye-Leike, Realtors in Brentwood, TN (the corporate office) because I believe in my company and love the professional service that we choose to offer. While other firms are closing their doors or merging, we are opening offices and are still selling more real estate than anyone around.

- My clients are wonderful - I have been truly blessed. Most are referrals these days where past clients I've had are sending me wonderful new ones. I love it when a client trusts me to help them with their largest investment. And I enjoy seeing the "light bulb" go on when they either sell their home or find the one they want to buy.

- Lastly, I'm learning not to ask God, "Why'd this happen?" but to ask, "What are you teaching me about You and/or myself through this?" It's really tough to ask those questions, and sometimes I don't like the answers, but I figure I need those experiences to grow.

Wow! Now you know a little more ... maybe too much?! Thanks, Danita, for inspiring me to do this!

10 Hot Spots for Real Estate Agents

If you still tune into David Letterman, you enjoy those top ten lists that he does. Well, Inman Real Estate News has it's "Top 10". But these are the top 10 best real estate markets for real estate agents to work.

Nashville made it into the top 10. Actually, we're number 10, proof that there is some stability in our local real estate market.


I still hear remnant remarks such as, "I'll sell when the market turns around." And the most frequently asked question, "Is the market starting to turn ?" still echoes in conversations at church and at the gym. The fact of the matter is that the market is what the market is, period.

Over the last few years, real estate agents have left this business because "the market was so bad". But a good agent knows that to survive, they have to be flexible and move with the market. However, Inman's article gives us great hope. It's not a false hope that implies that we will experience the market of 2006-2007 in a very short time; instead it's hope that we have left the bottom and are returning to a more stable market.

If you're interested in the article, it can be found HERE. Check it out. It's an interesting read.
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For help with your real estate needs, give Jack a call at 615-373-2044 or email him at jack@jackjernigan.com. You can check out his listings at www.JackJernigan.com. He's here to help.

LIVE SOLID

On August 17, I posted an article about the mortgage/housing crisis, citing the CNBC documentary film, "House of Cards". Multiple discussions have occurred as a result of that blog post. One of my discussions was with my good friend, Jason Kaplan, an excellent mortgage loan officer at SunTrust.

A few years ago, I had an incredible opportunity to meet Jason through buyer clients of mine. They insisted on using him to do the loan on their investment property. That transaction was one of the smoothest I'd ever had. Never once did I have to ask Jason for information. Before I contacted him, he called me to introduce himself, and to provide information that he knew I'd need. Immediately he earned my respect and friendship.

Clients who have worked with Jason say the same thing. They walk away from their purchase or refinance with confidence in him and in the process. If you're looking for a superb loan officer, give Jason a call. He can be reached at 615-329-3261 or via email at Jason.Kaplan@SunTrust.com.
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Hiring the right real estate agent and mortgage loan officer are two very crucial and critical decisions. For professional service, contact Jack at 615-373-2044 and Jason at 615-329-3261. They're here to help you!

House of Cards - The American Mortgage Crisis

Airing in late 2009, this exclusive CNBC special, "House of Cards" was supposed to be an accurate depiction of the national mortgage crisis. Watching it yesterday, I can only wonder if it was totally accurate.




Don't get me wrong. We have suffered a mortgage crisis here in the U.S., mostly due to greed and unscrupulous lenders, investors and politicians. And while most of this video is accurate, there are a few facts that were left out.

The beginning of the special starts it's focus on the housing market AFTER 9/11 (2001). While that certainly was a point to begin their presentation, the fact remains that this crisis began back in the 1970s when Jimmy Carter was president. Carter (and Congress) wanted to make housing more accessible and affordable for those who could not buy a home. Inflation was at an all time high, and mortgage interest rates were in the double digits. To get the economy back in sync with incomes, Carter wanted to open up homebuying to more people.

During Clinton's administration, the president and Congress wanted to continue to open the floodgates for more homeowner, so rules and laws expanded. Barney Frank led the way because his hands were in the pockets of Fannie Mae and Freddie Mac. During the next administration, Bush wanted it expanded, too, but soon after, realized that we were in trouble. He pulled back and begged Congress to tighten things up in the mortgage industry. Too bad and too late. With Barney Frank leading the way, mortgages that required NO DOCUMENTATION (stated income) with NO DOWN PAYMENT were now the norm.

The blame did not lie just with the government. Greed set in on Wall Street and in local mortgage lender's offices to get more, make more. Unfortunately, many who are to blame, refuse to take responsibility for this crisis. You get the overall gest of the problems in this video. If you click HERE, you can see the chilling effect that this crisis has had on our country.
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If you want a savvy real estate agent on your side, give Jack a shout. He knows the market and how to help you buy and/or sell a home.

Big Trouble in Big America

Check it out. Yesterday, one of the nation's largest banks (and mortgage holders), Bank of America, saw it's stock drop 20%. This as a result of a lawsuit filed by AIG Insurance Company, the very day that S&P downgraded the US Debt and Fannie and Freddie. To read the full article, go HERE.




In my small world, deposit holders are flocking to BoA to withdraw their funds, and they're heading over to smaller, locally owned banks such as Reliant, Franklin Synergy, First Bank, Renasant, Tennessee Bank and Trust, and Avenue Bank. Other mega banks such as SunTrust are holding their own without any problems. Their conservative philosophy has proved to protect deposit holders and mortgage borrowers.

In this blog, I would never provide any financial advice (since I am not a financial advisor), but here's what I can say. BoA is the most problematic bank I've ever worked with in my real estate career, whether they were providing a mortgage for my buyer, or whether they were providing a mortgage for the buyer of one of my listings. They have never closed any of my transactions on time, appraisals have come back significantly lower than contract prices (and comparable homes in the area), and they seem to disappear whenever there are problems.

Things in the mortgage area are so difficult that my sellers are now stating that they "will NOT accept a financing contingency on their house from a buyer if the buyer is using Bank of America for their loan." A sad commentary on what was one of the strongest business entities in the U.S.

In the short sale world, BoA representatives are difficult to reach by phone and/or email, and their customer service leaves very much to be desired. A few months ago, there was a rumor that BoA was hiring out of work contractors, hair stylists, day laborers, etc. to man the phones. And when one person in one department was dealing with a problem, another person was stating that the problem could not be resolved.

Very reminiscent of Dell Computers several years ago, Michael Dell came back to Dell as the CEO and has apparently improved operations and customer service. Can this possibly happen to BoA? I'm not sure. Maybe BoA has gotten too large and so fat that it cannot be moved. Perhaps BoA is now more like the Titanic, and cannot be turned around. What should happen now?

People in real estate have varied opinions of the banking giant. Some believe that BoA is the strongest mortgage lender around; others disagree. If nothing about BoA's problems is significant, one thing is for sure: There are a lot of scared people out there.

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For a savvy real estate agent to help you with all of your real estate needs, contact Jack Jernigan at 615-373-2044 or through email at jack@jackjernigan.com.

My New Favorite Mexican Place

After such great experiences at Chuy's and Sopapilla's in Franklin, and El Mariachi in Nashville, I wasn't sure if there would ever be any reason to have another Mexican restaurant in Middle Tennessee.

A few weeks ago, I was showing property in Nolensville. After leaving my clients to return to the office, I stumbled on Oscar's Taco Shop in a Nolensville strip mall. I stopped, more out of curiosity, and I'm glad I did.

There are multiple Middle Tennessee locations. To find out where Oscar's has shops, check out their site by clicking HERE.

I'm a shredded beef lover and am frequently disappointed when a Mexican restaurant does not provide that on it's menu. That's why I love El Mariachi (on Thompson Lane near Sidco). I can always count on them to have a shredded beef chimichanga.

When I got to Oscar's, the place was loaded with people. While there was nothing really special about the atmosphere, almost every table was full, and the aroma of delicious Mexican food was in the air. I was drawn into this new and fascinating place.

I ordered the shredded beef tacos for lunch at the Nolensville location. A few weeks later, I went to the Cool Springs location (across from Centennial High School) with friends for breakfast and had the shredded beef burrito (with egg and cheese) for breakfast along with fried potatoes. And I've returned to both locations since.

While the locations are pretty basic in appearance (laminate tables and benches, neutral paint colors, tile floors), the food makes the trip there worthwhile. This is a place I whole heartedly recommend. It's some of the best Mexican food I've ever had. Most of Mexican in the states is more of a Tex-Mex. Not so with this establishment. It's more authentic than others. Give it a try. You won't be disappointed.
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Give Jack a call if you're looking for real estate or want to sell. Jack knows the Middle Tennessee area, understands the mindset of people here, and is an expert in his field.