In Dire Straights and Need a Short Sale? (Part 1)

It seems like more and more short sales are coming on the market. Are they here to stay? If not, they're here for a little while, at least.

Because foreclosures are already owned by the bank, the buyer (or buyer's agent) is dealing directly with the bank. Short sales, on the other hand, are quite a bit different. They are not owned by the bank.

Short sales can happen at any point. If the seller is upside down in his/her mortgage and needs to sell the home to move away, then the short sale process can begin even though a seller has never missed a payment. If the seller is behind in his/her mortgage payments, then the short sale can occur within just a month or two into that situation, or it can occur later on. The third situation for short sales is when the seller is upside down in his/her mortgage, and is also behind in payments. Some short sale properties are candidates for foreclosure.

While this blog article is about short sales, let me mention a few things about foreclosures: (1) Tennessee law allows for a bank/mortgage lender to foreclosure very easily. If a seller is behind even one month, then the lender has to give notice of a foreclosure sale three weeks in a row in a public forum (i.e. newspaper) to be able to foreclose. (2) Banks are NOT in the real estate business and do not really want to be. Taking a house/property back so they can sell it again is NOT in their best interest. (3) It costs a mortgage lender approximately $40,000-$50,000 to foreclose on a property. Foreclosure is a legal process that takes the home away from the borrower because of non-payment, and banks always lose in this process.

Every short sale is different. Things that determine the situation are: (1) How far behind the seller is in his/her mortgage payment; (2) The type of loan the seller has on the house; (3) The mortgage investor and what their policy on short sales is.

If you are behind in your payments, NOW is the time to contact a real estate agent. Don't wait! Your agent will give you all of your options!

If you decide on a short sale and have a good agent, the first thing the agent will do is draft a third-party authorization letter which you need to sign in front of a notary public. That letter should contain the loan number, the address of the property in peril, the bank name and address (where the monthly payment is sent), and the social security number of the borrower(s). This needs to be done immediately so the agent can get on the phone with the bank to find out where this house is in the process and what can be done at that point.

The agent will contact the bank to find out where to fax or email the letter. Once that is taken care of, usually a week later, the bank will communicate with the agent when the agent calls.

Part 2 on Short Sales will be posted tomorrow.

Bouncing Back

Just a few years ago, the naysayers and doomsdayers were prophecying about the failed housing market. Today, they're being proved wrong. With sales in the area on the rebound, agents are seeing an upward swing indicating more confidence in the housing market. In the first quarter of 2012, Middle Tennessee saw 4,855 closings, up 24.2 percent from the 3,908 closings during the same quarter of 2011.

Of the 2012 numbers, 3,959 were residential sales, 484 were condo sales, 76 were multi-family sales, and 336 were farms/lands/lots. The greatest increase was in farms/lands/lots, which was a 187% increase over 2011. This indicates a confidence in new construction as builders are building on those lots. Inventory, on the other hand, was down to 18,984 at the end of March 2012. At the end of March last year, the inventory level was at 21,647. Some may think this bad, but in reality, this is good as sellers who don't have to sell are staying away from the market, resulting in true and honest price increases. There are currently less than 10 months of inventory overall. In the single-family residential market, there is a less than eight months inventory. A balanced market is represented by a five to seven months inventory. Anything less than five months is a seller's market; anything greater than seven months is a buyer's market. While the overall market still reflects somewhat of a buyer's market, buyers and agents need to look at each neighborhood and each price range separately, away from the overall market.

Spring Hill GM Plant Revitalizes Spring Hill

Just a few years ago, we saw GM shutter its Saturn division. Along with it went jobs at the Spring Hill GM plant. The plant never quite shut down all the way, but the layoffs in record numbers put a dent in the area's economy and housing market.

USA Today ran an article about the reopening of the plant. You can read it HERE.

Welcome back, GM, Spring Hill, and the housing market! We're glad you're coming back!

Like That Payroll Tax Cut?

Well, it's here. President Obama has signed into law a payroll tax cut for Americans. This cut was spurred on by a weak economy. The President has said that he wanted to help Americans bring home more money monthly. The average increase in take-home pay is approximately $40 per month.

However, what is given away must be paid for. Fannie Mae and Freddie Mac will be collecting this difference beginning April 1, 2012. The charges will be in effect through 2026.

If you're looking at buying a house, then you need to do it now. The average increase for a $200,000 will be approximately $15 per month. That means buying power will decrease slightly for all home buyers.

For more information, check out this LINK.

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!

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!

Tips for Buyers

In the current real estate climate, it's easy to assume something is a very small and unimportant detail, yet it's those small details that prevent buyers from buying houses and that causes sellers to get their hopes up for a sale.

Over the years, I've compiled a list of things that make buying a home much easier and stress-free for buyers, and I wanted to share those with you:

1 - Be transparent with your real estate agent. If you already own a home, but don't want to sell it to buy the next home, tell your agent what kind of loan you have on your current house. FHA does not allow buyers to own two FHA-backed homes at the same time.

2 - Use one of the mortgage lenders that your real estate agent recommends. That way, the agent is assured that the loan officer and bank are reputable, will be honest with the buyer up front, and will get the house closed.

3 - Follow the process that your agent provides. I have a 10-step plan that I utilize with ALL buyers that makes the home-buying process a stress-free and easy process. Both novice and experienced buyers love this process and have said it was the easiest way to buy a house.

4 - Insist that your loan officer be open and honest with your real estate agent. General protocol is that this happens, but occasionally you will run into a loan officer who declines to reveal anything to the agent. If there is a potential "glitch", then the agent needs to be able to ward that off ahead of time.

5 - Do not feel that you have to disclose personal information such as income, debt, or credit score. Agents do not need that information. All we need to know is the amount you can spend on a house, the down payment, closing cost needs, time frame to close, and if you have to sell your current home.

6 - Hire the agent who is helping you buy your home to help you sell your home. Those agents are much more motivated to get your home sold so your next purchase can close easily.

7 - Ask questions if you don't know the answers. If something doesn't seem logical to you, then ask your agent about it. The agent should be able to answer your questions or find the answers very quickly.

8 - Be patient and allow the process to take place. Sometimes buyers want to rush things or drag them out, but that's not necessary. Typically, it takes about 30 days to get a purchase closed, and with today's stringent rules, it may take a little longer.

9 - Trust your agent. Sometimes buyers think that the buying process should/could take longer than it should. If an agent suggests a deadline to you, then follow that deadline because there is a reason why that deadline was suggested.

10 - Relax. Purchasing a home can be stressful and challenging, but try to relax during this process. By allowing the agent to lead you through it, you can rest assured that things are being taken care of.

These are just ten suggestions that help buyers make a purchase. In our current culture, banks and the government have made the process a little more challenging. By hiring the right agent and learning to follow his advice, the process can go from challenging and stressful to joyful and relaxing.
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Jack Jernigan is an agent who makes the home buying process an easy and stress-free one. Jack knows the market and how sellers think. For all of your real estate needs, give Jack a call at 615-373-3513 or contact him via email: jack@jackjernigan.com

Home Sales Slip Nationally in July 2010

Nothing burns me up more than misinformation. Unfortunately, our media have fallen into the bad habit of generalizing the entire nation's economy and housing market with just a few examples of desperate markets across the nation. Yesterday's Tennessean printed an AP article that cited that July's home sales were the worst in 15 years.

While this statistic can be very accurate, the Tennessean was remiss in reporting what the Middle Tennessee market has done and is doing. Laziness in fact-gathering perpetuates nothing less than accelerated and unnecessary fear among our citizens.

Here are the facts for Middle Tennessee:

1 - There are 99 different regions in the Middle Tennessee Multiple Listing Service. Statistics are for all of those areas combined.
2 - Average SALE PRICE for July 2009 was $199,534 for residential homes, selling at 95.09% of list price with an average of 107 days on the market.
3 - Average SALE PRICE for July 2010 was $213,641 for residential homes, selling at 94.91% of list price with an average of 95 days on the market.
4 - There was an increase of $14,107, an INCREASE of 7.1% in sale price.
5 - In both months, the sale price was about 95% of list price. That screams consistency in our market.
6 - Sales in July 2009 were 2640; in July 2010 they were 1962, a difference of 26%.

Is this cause for alarm considering the INCREASE in sales for the first five months of 2010? No. In ANY market, what goes up, MUST come down. First-time home buyers RUSHED to get their homes closed prior to the June 30 deadline. It makes sense that there would not be as much activity in the month immediately following that deadline.

Personally speaking, I have helped several first-time home buyers buy homes this year. In fact, the last three closings were first-time buyers. NONE of them qualified for the tax credit because they bought after the June deadline.

With the "facts" that the media uses to justify it's articles, it is easy to see why people are afraid of our economy, but there is no justifiable reason for this fear.

Is our market lower and slower than it was three years ago? Yes, it is. There's no denying that. But has it "tanked"? No, it hasn't. Yes, it's down some, which should have been expected. There is no reason why we should expect any market to stay high all the time.

With this being said, there is hope. Not only do we have a fairly stable market in Middle Tennessee, rates have NEVER been lower. At only 4.25%, this is a great time for people to buy homes. And it's also a great time for people to sell homes. What's stopping you?
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Working with buyers and sellers in today's real estate market is what Jack Jernigan does best. He knows the market and expertly guides buyers and sellers through the buying or selling process. If you're looking for a competent and professional agent to help you with a real estate need, give Jack a call at 615-373-3513.

The Real Nashville Real Estate Market

Lately many buyers are approaching all sellers with the idea that "sellers are desperate and will do anything to get their homes sold." Nothing could be further from the truth, so I want to set the record straight.

Buyers are actually very innocent and naive in their understanding our market. The information they have been fed is mostly propagated by the national media. The media have continued to preach a doomsday mentality in the housing market - i.e. nothing is selling and that the only way a seller can get a home sold is to give it away.

There are some markets where sellers are very desperate. Michigan is still very much that way. However, Florida is not quite as bad as it once was, and California is rebounding as well. Other markets, such as Henrico County, Virginia (the Richmond area) is actually doing very well. Overall, the midwest saw no change in their market. And the south and west markets are both up.

Here in the Nashville area, we actually have TWO real estate markets. There's the "distressed" market and the "normal" market.

Distressed sales include foreclosures and short sales. With foreclosures listings, banks have already typically discounted the price of the house, so an offer substantially below the list price would probably not "fly" very well. In fact, I have seen sale prices actually increase when the buyer placed the offer asking for closing costs to be paid. If the house does not sell within the first 30-45 days, then the foreclosing bank may lower the price. However, if a buyer intentionally waits for that to happen, he or she may "lose" the house to another buyer. It's a gamble that a buyer should not take if they absolutely love that house.

In a short sale situation, there are two strains of thought. First, a savvy and experienced short sale real estate agent will have already sent over all of the necessary paperwork to the seller's lender(s). The lender(s) will have already named the price they will accept for the house, and the agent will have added in closing costs for the selling side, any possible closing costs the buyer may ask for, the agent commissions, etc., to come up with the list price. Rarely, in our market, does this happen.

Second, and most frequently, a short sale becomes a guessing game. The seller has been unable to make his or her payments due to one or more of a variety of reasons, and the listing agent has determined a list price for a home based on area comps. No paperwork has been submitted, and sometimes the lenders have not been contacted. A good buyer's agent will know what questions to ask the listing agent so that the buyer can have appropriate expectations.

In the first situation, since the price has already been determined, the buyer should make an offer very close to the list price, and can expect a very quick response from the seller's lender(s). In the second, a long wait can and should be expected, and there will be no guarantee that the lender(s) will approve the contract that the seller and buyer have for the sale of this home.

When the listing agent has done all of the necessary homework for a possible short sale, the bank will order a BPO to determine the market value of the house. This is NOT a hard-line appraisal, and it is done by a local real estate agent. In each short sale situation, a bank is looking for a certain percentage of the market price. Percentages vary by type of loan the seller has on the property. There are several types of loans that mortgage banks hold: (1) FHA loan; (2) VA loan; (3) Conventional loan; (4) Multiple loans on the property. The multiple loans can be FHA or conventional. Each type of loan has a different percentage the bank is looking for.

In the normal market, sellers should have already priced the house to sell. A higher price indicates that the seller is unrealistic about the price or that the seller is really not motivated to sell. A realistic price reflects the current market and is an indication that the seller wants to sell the house.

However, when buying in the normal market, a buyer should expect to buy a house at a purchase price of about 95%-97% of the list price. It is unrealistic for a buyer to expect foreclosure or short sale prices in the normal market.

When working with your real estate agent, the best and first thing you should do is trust him or her to guide you through the process. The best agent will understand both the normal market and the distressed market. Your agent can provide advice for you in making your offer so that it can be a win-win situation.
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When selecting an agent, look no further than Jack Jernigan. He continues to use his 10-step plan with buyers, providing them only the best and most professional service. Jack knows the two current markets in Middle Tennessee. To contact Jack, give him a call at 615-373-3513 or email him at jack@jackjernigan.com.

Get Real!

Back in my teenage years, we coined (and used) the phrase, "Get Real!" It was oftentimes used sarcastically in response to someone who made an erroneous or ridiculous remark.



With the offers that buyers are making these days, it's time to pull out that old phrase and start using it all over again. To help buyers avoid the "Get Real" glance or remark from their agent, here are some tips for making an offer:

1 - When making an offer, look at the UPGRADES that the home offers. If two houses are about the same square footage in the same general area, but the list prices are $5,000-$10,000 apart, ask yourself what upgrades the more expensive home has. What would it cost for you, as the buyer, to install all of the upgrades in the lower priced home? If it costs more than the difference in price to install all of the upgrades, then the higher priced home may be the better bargain.

2 - It is natural for buyers to NOT want to pay full price for any home in today's market, but when making an offer, be realistic in price. Ask your agent to show you comparables in the same general area with similar square footage and upgrades as the home you're interested in. Base your offer on those comparables.

3 - When making an offer on a foreclosure, understand that the bank has ALREADY DISCOUNTED the price of that home. For a bank to foreclose on a home, it costs them about $40,000 - $50,000, so they want to sell it as quickly as possible to get it off of their books. An offer just below that list price is best, especially if making the offer in the first 30 days after it's listed. Banks will typically lower the list price of homes every 30-40 days, so if you want that house, you'll need to act on it quickly. If you decide to wait until the bank drops the list price, you may have missed out on the house.

4 - Short sales are more common today than ever. If you're interested in a short sale home, you need to understand that type of loan that the seller has on the home will dictate what the seller's lender will approve for a purchase price. Each type of loan requires a sale price at a certain percentage of the current market price of that home. Also, unless already approved, expect to wait a while for a response from the seller's bank. If two loans are involved, then it may take even longer than anticipated.

5 - In ALL situations, real estate deals have to be WIN-WIN! Buyers are being told that THEY determine the value of a home, but that is true ONLY if the SELLER AGREES to the buyer's price, terms and conditions. To assume that a seller is obligated to take a low-ball offer that a buyer makes is unrealistic. Continuing to make low-ball offers on properties brings nothing more than frustration and wasted time for everyone involved in the negotiation process.
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If you're looking for an agent who can help navigate you through the home-buying process, give Jack Jernigan a call. He understand the market, dealing with foreclosures and short sales, as well as sellers in general. He can be reached at 615-373-3513 or through email: jack@jackjernigan.com

Washington STILL Hasn't Passed Flood Insurance Coverage!

Usually I don't rant and rave about anything much on this blog, but today is different. Right now, real estate transactions where houses sit in any of the AE flood plains in Tennessee ARE NOT able to close. Why? Because the US Senate has NOT voted to pass the bill that extends flood coverage for millions of homeowners nationwide. Without flood insurance, lenders will not allow homes in flood plains to close because there is no coverage for those homes.

Phone calls to Senator Lamar Alexander's office this week revealed that this is a political maneuver by self-serving politicians. Right now, the Senate is considering bill H.R. 4213, a jobs and tax loophole bill that includes language renewing the extension of the coverage. CLICK HERE for more info about the bill.



The Senate has had the bill since last week and it came to the floor earlier this week. Unfortunately, there have been 180 proposed amendments to the bill, some of which have passed, some of which haven't. Even if the Senate votes for the bill, it then has to go back to the House for that body to approve it.

When asked why the flood insurance extension could not be isolated, I was told by Ashley (one of Senator Alexander's assistants) that the Democrats stopped this move originally initiated by Republicans. Unfortunately, the Republicans will not vote for the bill because the bill INCREASES OUR DEFICIT. Republicans want the Stimulus Money to pay for the expenses of the bill, but the Democrats refuse to agree to that.

It doesn't really matter where any of us stand politically. The problem we face is that our representatives are doing nothing more than playing ego-centric games, using bills (such as this one) to foster their own careers instead of taking care of the people who elected them.

If you want to contact your senator's office to register your dissatisfaction about this issue, then CLICK HERE to find the contact phone number for your senator. Even if you don't live in Middle Tennessee, PLEASE call your senator and express your concern for your fellow Americans.
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To work with an agent who knows the Middle Tennessee real estate market, and who is abreast of what's going on the world of real estate, give me a call. I can be reached at 615.373.3513 or via email: jack@jackjernigan.com.

Delayed Closing?

The media is pushing for Congress to extend the deadline to close on homes contracted by April 30 of this year. Due to unforeseen circumstances, some buyer are not able to close by the end of the month deadline. Most of those homes constitute short sales that have taken the seller's lenders longer-than-necessary to approve.

Are you one of those buyers? If you are, or know someone who is, read THIS.

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To work with a real estate agent who will look out for your interests, give me a shout. I'm ready and able to help. You can contact me at 615.373.3513 or via email at jack@jackjernigan.com.

Record Home Sale for Nashville

Well, it sold ... Alan and Denise Jackson's home in Franklin ... for a cool $28 million. This sale is Middle Tennessee's highest home sale in history and it makes Tayna Tucker's 2007 sale of just over $11 million look like chump change.

The Jacksons paid $1.2 million for the 135 acre tract of land in 1993, then built their three-story colonial home on that estate.

You can check out the 50 photos of the estate, CLICK HERE. And to read the entire article in The Tennessean, then choose THIS LINK.

Enjoy the slide show. The house is quite amazing.
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To work with a real estate agent who knows the Middle Tennessee market, give me a shout. I'm here to help you with all of your real estate needs.

Thomas Sowell and His Appeal to Truth

If you're not aware of who Thomas Sowell is, you're not alone. I'd never heard of him until several months ago when a friend offered to let me borrow the book, The Housing Boom and Bust, by Sowell. So far, I've found the book incredibly objective about the truth about the nation's housing market, it's ups and downs, and how it's directly and indirectly related to the rest of the economy.

Through an online search, I found Sowell's credentials to be second to none. He is well educated (Harvard, Columbia and University of Chicago), and appears to be a great defender of truth, not leaning in favor of one political party over another.


A "must read" for every U.S. citizen.

The Housing Boom and Bust can be purchased online through amazon.com, or at Barnes & Noble. You'll find that Sowell is a straight-shooter, calling out former presidential administrations, as well as the current one, and the congressional bodies that supported each one. He points out discrepancies in policies on both sides of the aisle, and the committees and architects of those policies that are in error.

This book is definitely well worth the read. Sowell will enlighten you to the truth and the vast cavern of omissions that are apparent to him. Unlike a typical college-level economics textbook, this is a great 'anytime' read because the author makes it easy to understand, and puts all the pieces together.

To learn more about Sowell, check out THIS SITE.
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If you're looking for a knowledgeable and professional real estate agent to help you with your real estate needs, then look no further. Contact Jack Jernigan, with Crye-Leike, Realtors, at 615-373-3513 or jack@jackjernigan.com

That Unexpected Surprise!

It was a second showing of a home in Franklin. I'd made the appointment the day before and, as scheduled, met my buyers at the house. Even arriving on time, I managed to get there a few minutes before they arrived.

Promptly at 1, I rang the bell, but no answer. I knocked loudly, and still no answer. I opened the lock box, took out the key, and opened the door. When I get inside, the TV was on, dirty dishes were piled into the sink, and some of the lights were on. Of course, my first thought was that they were in such a hurry to get out that they forgot a few things. Or they were still home. I called out, "Anybody here?" several times; again, no answer.

After turning on all the downstairs lights, my clients pulled up and came inside. We started at the back of the house, talked about the space, and moved to the front of the house. While in the foyer, we noticed a man in a black leather jacket running across the front yard. He jumped on the front porch, pushed the front door open, and as quick as a flash, lept into the front office. When he came into the foyer he was loading his pistol and shouted, "Who the &$%# are you people and what are you doing in my house?!" Needless to say, all of us were caught off guard.

My clients and I left the house as I explained I was a real estate agent showing his house. He said he'd checked with his agent who said there was no showing at that time. After a phone conversation with the listing agent, we excused ourselves and left.

After countless apologies for the misunderstanding by the listing agent, things got better. We went back to the house an hour later ... and my client bought the house! All is well.

Yesterday the listing agent discovered what had happened. Her appointment center (not Crye-Leike's appointment center) called the owner of another listing she had and received confirmation to show that house, but called me back and confirmed this listing for me to show at the appointed time. The appointment center rep even gave me the correct alarm code for the correct house. Go figure ....

When all of this happened on Sunday, I was definitely stunned - not afraid. Now, I can say that I really have seen it all and done it all in real estate ...
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If you're looking for an agent who provides exceptional customer service and will even show you a house at near gunpoint, give me a call. I'm more than happy to assist you with all of your real estate needs.

Tips for a Smooth Move

Moving is on the 'Top 20 Most Stressful Things in Life' list. It's no surprise because it means uprooting from a place of familiarity to a new place. Even local moves can cause some stress, so it's important to make it as smooth and as easy as possible.

The person who taught me how to move was my former wife, Stephanie. We'd been married three years when we moved from Richmond to Chicago for grad school. She nudged me to de-clutter, but I was only willing to give up just so many things. After that move, I was more than anxious to de-clutter prior to every other move.

Having moved 15 times over the last 21 years, there are some things I learned from those experiences. The last move, this past Friday, was the smoothest because it was the most organized.

Here are some tips to help you make that (long distance or local move):

1 - Sort through every closet, every room, the toy chest, piano benches, and all drawers and cabinets, and the garage, dividing all items into three piles: (1) KEEP; (2) THROW AWAY; (3) SELL or GIVE AWAY.

2 - Have a YARD/GARAGE SALE or donate to a local charity such as your church or Goodwill at least one week before you move. (This would be your SELL or GIVE AWAY pile.) In Nashville, spring yard sales are typically better than other times of the year, but yard sales are possible year 'round depending on your culture and environment. (Check out my previous article on successful yard sales entitled Yard Sale Extravaganza.) Throw away the 'throw away' pile and don't look back.

3 - Call moving companies for estimates as early as possible. Get estimates on PACKING and MOVING if need someone to pack your things. Packing and moving are different tasks and movers price accordingly.

4 - If you are packing your own belongings, begin packing about a week before your move. Pack some every day and save the most essential things for last. Make sure to ask your mover if they require all drawers to be emptied before the move. Some companies require emptying; others don't.

5 - You'll need appropriate sized boxes, so a visit to a storage facility will give you a better idea of what types/sizes of boxes are suitable for your things. Pack china in dish pack boxes, books in book boxes, hanging clothing in hanging wardrobe boxes, etc. You'll also need packing paper and bubble wrap. Check those, too.

6 - Call Crye-Leike Home Services to set up your utilities connections and disconnects. Crye-Leike has a special relationship with Comcast (the only real estate company in Middle Tennessee that has this relationship). Through Crye-Leike Home Services, the rep will set up your Comcast connection at no cost and you will also receive (1) the current promotional rate for 12 months, and (2) a significant rebate on VISA gift cards. For more information on Crye-Leike Home Services, CLICK HERE.

7 - If you're moving locally, make plans for your refrigerated and frozen foods. While most foods will stay refrigerated or frozen, some foods will not. If you're moving long distance, you'll want to eliminate all of your refrigerated and frozen foods.

8 - Pack a "First Night Box" for each bedroom and for the kitchen. In bedroom boxes, pack sheets/linens, toiletries, soap for washing hands, towels. shower curtain and rod, and toilet paper. For the kitchen box, pack disposable plates, utensils and cups. You may want to include your toaster or microwave, dry foods such as protein bars, nuts, breads, toaster pastries, etc.

9 - If you've packed yourself and are paying for movers by the hour, move every box into one or two room that are easily accessible to where the moving truck will be parked for loading. Doing this will save the movers time and you money. When they arrive, they can size up what has to be loaded.

10 - Relax with a cup of coffee while the movers are loading.

11 - Leave the house CLEAN. Use an odor eliminator on the carpet prior to vacuuming. Make sure the tubs, sinks and showers are free of soap scum and mildew. Rooms should smell very fresh. If leaving your refrigerator behind, leave it spotless. Mop all tile and vinyl floors and clean hardwoods well. Leave appliances manuals, keys and garage remotes in a kitchen drawer.

12 - Arrive at your new home.

13 - Make beds then start settling the house room by room. Start with the kitchen, then go to bedrooms, then living areas, and end with the garage.

14 - Clean up and relax.

Moving is stressful, but by being organized, it will be less stressful for everyone. With new surroundings, new neighbors, and new places be familiar with, moving can be an exciting time. No need for a stressful move.
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For all of your real estate needs, give me a shout. I can provide you with Home Service Providers to get your home ready to sell and to help you get your new home ready to occupy.

You're in Luck with Two Men and a Truck!

After 15 moves, I needed a reliable moving company to get my things loaded and unloaded quickly and safely. Several clients had used Two Men and a Truck, and with all their rave reviews, I decided to give them a try. Thanks to James and John, with Two Men and a Truck, it was a successful and pleasant experience.

Scheduled to arrive around 8 this morning, my only disappointment was their late arrival after 8:30. Later on I found out that their longer-than-usual staff meeting was the reason for the delay.

John and James didn't waste any time getting started. Idle chit-chat, cigarette breaks, and casual dilly-dallying were never part of the time I paid for. These guys hustled - and I mean HUSTLED!. An hour later, they had loaded everything and were ready to go.

Watching them unload and place everything is still mesmerizing. By noon, they were ready to leave my new home. Everything was in it's place and it had arrived safely.

If you're looking for a great company to move you, look no further than Two Men and a Truck. To book, call Katie at 615-248-6288 x201. She can book your move and give you an estimate of how much time it'll take. Mention the discount coupon and she'll send you one in the mail. Also when you call, ask for James and John to move you. They're the best!
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If you're looking for a real estate agent who knows the entire business of making a move, give me a call. I'd love to help you with all of your real estate needs.

Has Your Agent Checked Thoroughly?

When a real estate agent represents a client, he does so through the very end of the transaction. Part of that representation is to make sure that ALL of the numbers on the HUD-1 Settlement Statement (the document that shows what is being received and paid out by the seller and buyer) are accurate.

Six weeks ago, I sold a listing where the contract stated, "Seller to pay $3500 toward buyer's closings costs, prepaids and points." The lender only charged $2900 to close the buyer's loan for this transaction, but when I received my copy of the HUD-1 to review, an "additional" $495 was charged to the seller. The charge? A home warranty.

While a home warranty is usually covered by a seller to benefit the buyer, this buyer specifically WAIVED a home warranty. So why was the additional charge on the statement? When I called the seller's title company and protested the charge, it was removed. Apparently the buyer's title company "wanted to try it to see if the seller would pay it." That is an actual quote from their representative.

Just recently one of my sellers asked why it was important for there to be a "split" closing, utilizing two title companies. This is the very reason why. In the real world, title companies are technically and legally supposed to be NEUTRAL parties to the transactions. However, in recent years, title companies have taken on the role of "representative" of either the buyer or seller. In this situation, the buyer's title company SHOULD have actually told the buyer, 'no' to the request to charge the seller for the warranty. After all, the warranty was not agreed to by either party.

Representation took on it's current state several years ago when foreclosing banks started contracting with title companies to handle their sale transactions. By contracting with them, they received a reduced rate in their fees in exchange for giving the title company all of their business. Unfortunately, this 'representation' mentality has seeped into mainstream title companies as well because buyers and sellers would have battles at the closing table. Voila - split closings.

If you are buying and/or selling a home, make sure you ask your real estate agent to review the HUD-1 Settlement Statement very closely. A good agent will pull the contract out while reviewing it to make sure everything is followed precisely.
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Looking for a qualified agent to help you buy or sell your home? Give me a shout. You can reach me by email (jack@jackjernigan.com) or by phone (615-373-3513 - office). I'd love to help you with all of your real estate needs.