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.

Summer Is Over and School Has Begun!

In some areas of the country, the beginning of school is nothing more than a distant thought. August provides opportunities for the last hoorays of the summer, just before a September school start date. In Middle Tennessee, August marks the end of the summer and the beginning of the new school year, so WELCOME BACK, students!



Yesterday marked the first day of school for Wilson County students. My son, Hunter, made the band this year, so he's already been at school since July 19, practicing in the horrible heat we've experienced. Wednesday the 4th is the first day for Rutherford County students. It's an abbreviated day and the first full day is Monday the 9th. Thursday, August 12th is an abbreviated first day for students in Davidson County, and their first full day is the 16th. And Thursday, August 12th is the first day for Williamson County students.

Interestingly, summers are getting shorter and shorter. It seems like time flies by, with no break in it's rapid pace. If you haven't had a chance to take your family on vacation this summer, there's always Labor Day weekend, just a month away. Maybe you can head to a local spot such as Huntsville, Alabama to take in the NASA Space Center. Or maybe Hot Springs, Arkansas may be beckoning you there. And then there are always the short day trips to the Corvette Museum in Bowling Green, Kentucky, or Fall Creek Falls, not far from Cookeville.

Whatever your schedule, whether you have kids or not, it's time to gear up for the next year again .... so enjoy ...
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Looking for a real estate agent who's in tune with our real estate market? If so, then give Jack Jernigan a call at 615-373-3513 or email him at jack@jackjernigan.com

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

Only the Second Fattest?!

Boy, are we Tennesseans in trouble. According to the Trust for America's Health and the Robert Wood Johnson Foundation, we are fat, fat, fat, fat, fat! Not pleasant news for those of us who live here. Apparently, almost 1/3 of all Tennessee adults are carrying around a lot of extra baggage.

Disconcerting? Absolutely! Obesity is preceded by problems with low income, poor education and lack of access to nearby grocery stores and safe neighborhoods, and other issues.

Discipline is really the bottom line. How many of us are really disciplined enough to control our diets and to head to the gym or even outside for a brisk walk?! Are we willing to pack up the extra portions at our favorite restaurant and bring them home to eat for another meal?

I'm not sure about you, but I prefer to live a little longer. And the more pounds I put on, and the fatter I get, the less likely I am to live longer. My goal for the remainder of 2010? Drop a few pounds and get lean. Come on, it's not that hard

To read the entire article, CLICK HERE.
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Need a real estate agent who understands Middle Tennessee area and the real estate market? Give me a call and let me lend you a hand.

The Best Father's Day Gift

I've often wondered what the first Father's Day gift was back in 1910. Maybe it was a tie. Throughout the years, I've received my share of Father's Day gifts. Everything from ties to shirts to gift cards made the list, but this year, I received the best gift ever.

When I opened my gift, I discovered something so precious that I will treasure it forever. No, not a brick of gold, or a nice new watch, or anything material. It was a book. That's right - a plain, simple book. Once inside I saw photos of my children on every page accompanied by descriptive words about each of them. You see, Annie and Hunter are the most precious gifts that any dad could have. Since they were born I've told them over and over again, "If I had to go to the ______ year old grocery story, I'd pick you out every single time!" I said it then and I say it now. There is NO GREATER gift in this life than children.

When Annie was born in February of 1994, she was a little early. Prior to her birth, she was an active baby. Her mother and I thought sure she would be a boy because she continually kicked and rolled over. She was born after over 24 hours of labor and weighed in at 7 pounds, 13 ounces. Hunter, on the other hand, was a little quieter baby. He was big, though, at 9 pounds 3 ounces, and he was a late arrival - about a week late.

I'm proud of my children and and love them with all of my heart. I'm sure you think your kids are the best, but I have to disagree -- mine are! And everyone says so! If you could get to know them, you'd see that they argue and fight sometimes. Annie tries to "steamroll" over Hunter, but he doesn't let her do that too often. He stands up for himself. But he has a much more tender heart. Hunter is more compassionate while Annie is a confident leader.

When I became a dad back in 1994, it was one of the greatest events in my life. And it happened again for a second time in November of 1995. Two great kids and the wonderful blessings that they bring. I'm so grateful ............

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.

Not Quite the Top 20, but Close!

Nashville just barely missed the Top 20 US Cities that have the best quality of life, a result of evaluating the top 67 US major market cities. Ranked by Portfolio.com, there were 20 different criteria, including: well-rounded healthy economies; light traffic; moderate cost of living; household income; home ownership; and strong educational systems.

Raleigh, North Carolina hailed as number 1. An obvious choice for all the high-tech jobs that Raleigh boasts. Another North Carolina city similar in size to Nashville, Charlotte ranks number 16. With the fifth fastest population growth since 2000, it's a shoe-in for a little higher ranking. My old hometown, Richmond, Virginia, ranked 20, just barely making it into the top 20. With scores fairly even in every category, Richmond does boast a high quality of life.

Check out the top 25 slide show and read the synopsis on each one. You may be surprised at some of those that made the top 20 list.
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Real estate isn't rocket science, but it does take skill, professionalism and knowledge to make your way through each local market. For help with your real estate needs in and around Nashville, please give me a shout. You can reach me at: 615-373-3513, or through email: 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.