Real Estate Information

Final reminder for Creating the Balance - Women's Conference.  Today is the last day to register for this fantastic event.   

Register for a day filled with information, networking, goodies and fun.  Kelly Swanson will be the keynote speaker encouraging us to "Stand Up and Stick Out!".   The conference is this Friday, Oct. 28th from 8:00 to 3:00 at Embassy Suites Murfreesboro. 

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Everyone wants peace of mind when buying or selling a home.  It is very important that you quickly educate yourself on every aspect of the home buying process.  You want to be confident that the real estate agent or team that represents is known to be experienced, knowledgeable, and professional.   But even then, you’ll need to rely on other group of professionals to assist you along the way – home inspectors.

It wasn’t long ago that anyone who desired to inspect homes (for a fee) could simply claim to be a professional without meeting any uniform standards.  The Home Inspection Licensing Program was enacted in Tennessee on April 18, 2005.  The law requires every home inspector to be properly licensed with the state of Tennessee.  In addition to the 90 hours of classroom instruction required to sit for the licensing exam, home inspectors must complete 32 hours of continuing education every two years to maintain and renew their licenses.

Even then, it’s fair to say that some inspectors are still better than others.  Knowing what to look for and having the keen eye to spot a potential problem in a home is just the beginning.  The best inspectors will follow a regimented procedure or system when inspecting a home – as much for their protection as yours.  They certainly don’t want to overlook any issues of that may impact the value of the home or completion of the buy/sell transaction.  At the same time, they must maintain a sense of fairness and objectivity and allow some leeway for normal wear and tear.  Simply put, what’s normal in a 20-year old house might be unacceptable in a newly built home.

In addition, most inspectors will provide their clients with a computerized report listing areas of concern and deficiencies.  It will be up to both the buyer and seller, as well as their prospective representatives (real estate agents and/or legal counsel), to reach a mutually beneficial determination of what will or will not be brought up to standards prior to the sale of the home. 

Completion of the home inspection and the buyers’ review of the recommendations is often the finally leg in negotiating the home purchase.  Today, most purchase agreements contain a contingency clause allowing the buyer to terminate the agreement if the seller is not willing to perform reasonable repairs.  It’s not uncommon for the buyer and seller to have very different ideas of what constitutes “reasonable” repairs.

Normally, anything that relates to or can impact the structure of the home (i.e. sagging floor joist, rotting window sashes, water in the crawl space, etc.) will need to be repaired.  Some repairs may require a licensed contractor, but often a good handy man can fix a majority of the items that need attention.  Experience teaches that some items that may at sound serious upon first reviewing the report are not.  Likewise seemingly harmless items often become the sticking point between a buyer and seller.

Originally Posted Sept 5, 2010

You may have enjoyed the somewhat humorous story reported in this column three weeks ago.  The seemingly unbelievable story about a groundhog that had broken into our home was true.  Only the name of the groundhog had been changed to protect the guilty.

Shortly after being discovered, our little (actually fat) intruder returned to the darkness of our crawl space via the same vent he had compromised a few minutes earlier.  Then our real work began.  The first order of business was to get him out of the crawl space.  Fortunately he decided to exit the same way he entered.  Then we turned our attention to clean-up of the damaged and soiled HVAC ducting under our home.  Finally, we focused our attention on preventing a future attack. 

In addition to having a funny story to tell, what did we learn from our experience with the wild?  We learned plenty and some of it may be of interest to you:

• When it comes to paying for the experience, the burden will probably be all yours (in our case more than $2000). Most homeowner insurance policies exclude coverage for damage caused by “birds, vermin, rodents, insects or domestic animals.”  And even if your policy pays the claim, a deductible probably applies. 
• Prevention is the key.  Inspect your home and its perimeter for signs of animal activity – now!  Animal tracks, excrement, scratch marks, offensive odors and other indicators may be indicators that you have a guest living in your crawl space, attic, garage or shed.  In our situation, we saw evidence that groundhog was not the first uninvited guest to visit our crawl space.
• Check the outside of your home for holes or openings near the foundation, under steps or porches and crawl space access door.  Animals of all types can find their way into your crawl space or home by way of the smallest openings.   One common point of access is under the HVAC unit on the outside of the home. The groundhog entered our crawl space through a narrow opening under the HVAC unit where the metal chase protected the main trunk line entering the crawl space.
• Don’t encourage visitors from the wild.  Garbage cans should be closed at all times, even when empty. A weight should be placed on top of the cans because animals can open the lids. Garbage should not be put outside or by the curb until the morning of pickup. Skunks and raccoons will attempt to knock over the can and scavenge around inside, scattering your trash.
• The best way to remove most wild animals outside the house is to place rags that are soaked in ammonia or mothballs around holes, garbage cans and any area you feel trafficked by wild animals. This does not actually hurt animals, but rather drive them away. 
• If you believe a nocturnal animal (skunk, possum, raccoon, etc.) has entered your home, keep doors and entrances to this room blocked so that the animal does not migrate through the house. Next, leave a bright light on in the room and set up a small radio. The bright light and noise from the radio will usually cause the animal to move outside the residence.
• If you are not capable of handling your intruder, it pays to get help from a company that specializes in animal removal, such as Trapper Jack, Wildlife Specialist.  The firm’s expertise lies in the humane trapping and removal of nuisance wildlife; and they are licensed and fully insured.  They operate under the laws of the TWRA (Tennessee Wildlife Resource Agency) and will relocate animals that are captured to a habitat away from your home.

Originally posted May 16, 2010

Ann Hoke leads the award-winning team at Ann Hoke & Associates (affiliated with Keller Williams Realty).  For more information or comments, contact her at 397-4024 or ann@annhoke.com. 

If you’re living in the real world, you know that our economy is experiencing tough times.  Its impact on the housing and real estate investment has affected all of us in one way or another.  While we all await the final word on the various homeowner incentive and rescue plans being evaluated by Congress, let’s look at a couple of positives that offer some encouragement.

There are several factors to keep in perspective as we move forward.  First, we all need a place to live.  Most of us are blessed with more home than we really need, but all of us need a place to call home.  Our nation’s population continues to grow, so there will be an ongoing need for more housing in the future.  Fortunately, we live in a section of the country that is attractive to many.  The beauty of our landscapes and moderate climate continue to appeal to many who are migrating south to escape the cold, or moving a little further north (from Florida) to escape the wrath of tropical storms and rising costs of living.  Our centralized location, relative to a majority of the U.S. population, continues to position Nashville and middle Tennessee at the hub of the distribution wheel.

Many of us have seen our retirement savings, in the form of 401k’s, IRAs and pensions, erode by 25% and more over the last year, home prices in the middle Tennessee area have faired much better.  Clarksville has actually seen an increase in the average price of home sales, while Nashville and most surrounding areas have seen decreases of less than 10%.  The observation is that our local home values have not suffered the beating that our “global” investment portfolios have – homeownership is still a good investment.

In the coming weeks, we’ll take a much closer look at the details of financial opportunities available to current and future homeowners – assuming our government follows through and provides meaningful legislation resulting in a plan to assist us.  In the meantime, we would like your input into real estate topics or questions that you would like to read about in this weekly column.  Future articles are being planned to cover topics like home appraisals, designer trends, reverse mortgages, 55+ housing, local community information and just about anything else that relates to today’s homeowners.

Originally posted February 8, 2009

While Middle Tennessee was enduring another cold week, my husband and I spent three days enjoying the warm desert sun in Las Vegas. But don’t be too envious, this was a “working vacation” for both of us, with the real emphasis on “working.” The only thing that made it feel anything like “vacation” was the pleasant weather and quick side trips to Red Rock Canyon and Hoover Dam. Our real agenda in Las Vegas was built around the 65th annual International Builders Show (IBS), so aptly named because it attracts homebuilders, remodelers, suppliers and marketing professionals from around the world. The show, hosted by the National Association of Home Builders (NAHB), alternates between venues in Orlando and Las Vegas. Historically, well over 100,000 industry participants attend the event. Last year in Orlando, as the housing market weakened, attendance dropped to around 92,000. This year as the economy continued to impact the industry, attendance fell to around 60,000. Even so, with 1,600 exhibiting companies and over 250 educational sessions, IBS continues to be the building industry’s premiere event. My husband, David, has been a regular presenter at the show’s Meet the Expert series since 2005. He spoke twice at this year’s show with addresses on branding and effective advertising channels. David began building his reputation in the industry as a junior partner with a regional real estate development firm more than 20 years ago. In 2000, he was inducted into the Institute of Residential Marketing, an arm of NAHB that recognizes top professionals in new home marketing. For the past 10 years, David has focused on strategic marketing as a partner with BLF Marketing. Locally, his team supports Ole South Properties (ranked among the Top 100 Home Builders in the U.S) and MidSouth Bank. So what was the buzz at the IBS? As you can imagine, with an industry adapting to the sluggish housing market, there were plenty of discussions and programs dealing with operational management and generating sales. But, aside from these issues, the hot topics were green building, 55+ communities and boomerang kids. As the housing markets adjust, “value” was a word heard over and over. The concept of building green – using environmentally sound materials and reducing energy needs in our homes – continues to generate interest. A few years ago, this topic was an afterthought, but has slowly emerged onto center stage as an issue of relevance for the industry and our nation. Housing for baby boomers remains a hot topic. Aside from the interior design trends which are constantly changing, the two biggest factors impacting this segment are a desire for more value and accommodating boomerang kids. Many older and active adults are looking for lifestyle enhancements in the form of more amenities packed into smaller square footage. In other words, more convenience and comfort in a smaller space. This value approach may not directly result in lower sales prices for new homes, but over time it will relate to lower maintenance and utility costs. The bigger question for boomers – “what to do with boomerang kids?” This segment is simply defined as kids who move away from home, only to return to mom and dad’s empty nest out of necessity – often years later. With older adults downsizing, this is become a topic of practical concern. We’ll explore more of the green building issues and baby boomer phenomena in future columns. Originally posted January 25, 2009

I’m constantly amazed by prospective homebuyers who are reluctant to work with an exclusive Buyer’s Agent during their home buying experience.  Given the advantages of the Buyer Agent relationship, at the very least, finding an agent you have confidence in should be your first step toward purchasing a new home. 

There is almost nothing to be gained by beginning the home search without an experienced, trusted agent who is working for you.  It leaves me wondering if sometimes prospective buyers don’t understand the benefits of working with a Buyer’s Agent.  Let’s consider a few of the pluses.

The biggest advantage to signing a Buyer Agency Agreement and working with a Buyer’s Agent is the peace of mind that comes from realizing – “my agent represents me and not the seller.”  Would you hire an attorney who also represents the other party? Would you hire an accountant who represents the IRS? Probably not. So, why would you work with an agent that legally represents only the seller? Without a Buyer’s Agent, you are working without any representation and no one to look out for your best interests.  It doesn’t make sense.

But the value of a professional Buyer’s Agent is more than just loyalty.  The listing agent is legally bound to represent the seller’s best interests – often translated as the highest price and best terms.  As a buyer, where does this leave you? Maybe paying too much for the property or falling short in some other area – overlooking problems with the property, agreeing to unfavorable terms and so on. Buyer Agents are legally bound to represent the buyer. That means he or she will work to get you the best possible price and terms.

You’ll also benefit from a Buyer’s Agent who is well organized with systems to help make your transaction process and transition as easy and convenient as possible. Their goal is to get to and through closing day with a minimum of hiccups – and that’s often the most challenging part.  This will require working closely with a trusted group of lenders, appraisers, inspectors and other professionals of high integrity. 

In addition, the best Buyer’s Agents will provide you with an unbiased look at the entire market and give no preferential treatment to showing their firms own listings. You can be sure that you will view the homes that best match your criteria no matter who is the listing agent.  They will also take time to provide information and educate you on the neighborhood and community. 

No matter how you slice it, in an overwhelming majority of transactions, there is nothing to be gained by attempting to purchase a home without Buyer Representation.

Originally posted January 18, 2009

Almost every real estate veteran is hoping that the seasonal pattern of home buyer interest stays the course.  You may not know it, but every January, prospective buyers begin their home search with a passion. The result is usually a rush of sales in January and February (before or after Super Bowl weekend) and moving vans working overtime in March and April.  Will this year be anything like years of old?  Who knows, but if you’re hoping to sell your home, you had better be prepared.

If history does repeat itself, after slower than normal sales activity in the fourth quarter of 2008, you won’t want to miss a single opportunity to sell your home.  So what is the most important thing you can do to sell your home quickly? 

There are at least four positive steps that every buyer can take to increase their chances of a faster sale in today’s buyers market.   If your home is more than a few years old, some items may need to be freshened, replaced or even updated in order to compete against newer homes.  Even then, the home must be properly staged for presentation to connect with the prospective buyer. You’ll also want to improve your odds by working with an experienced real estate professional that will work hard for you and look out for your best interests. Finally, properly pricing the home is a must.

Determining the right selling price may be the most crucial decision.  Too often emotion gets in the way and sellers try to squeeze just a little too much out of their home – and fall into the trap of chasing the market.  For example, the comparative sales in your area might suggest a listing price of $250,000, but you insist on listing your home just a little higher at $265,000.  Unfortunately, after a few weeks or months your home has not sold so you agree to lower your asking price to $255,000.  Yet during that same time period, the comparable home prices in the neighborhood may have declined to $245,000.  Even as you lowered the price on your home, you lost ground in relation to your competition – in other words you’re chasing the market trend but never catch up to it.  In most cases, the longer it takes to sell, the lower the price will fall… and the more interest you’ll pay.

If your home is priced right, you will normally receive highly interested and qualified buyers during the first four to six weeks after listing. If you have little or no traffic, the home is almost certainly overpriced.  Another rule of thumb is that after 15 showings with no offer, you can assume that the market has rejected your home.  Be realistic and price your home to the market.

Originally posted January 11, 2009

Most of us form perceptions as we absorb the facts and draw our conclusions from the opinions of experts.  We are influenced by the things that we read and hear in the media. Unfortunately, sometimes that information can be very misleading. 

Like many of you, I’ve grown weary of listening to the doom and gloom that airs on the cable news networks.  While some of the forecasts and predictions may ultimately prove true, our nation and its economy are in uncharted waters and no one knows the outcome.  Very few of the pundits consistently predict the future with any real accuracy.  But my real frustration hits a little closer to home.

Week after week, we’re being inundated with headlines depicting the dismal condition of the real estate market.  But the headline and related article rarely tell the real story.  Case in point, a Wednesday headline in the business section of a local Rutherford County paper stated “Home prices post 18% drop in October.”  The headline was misleading and inclined to lead the average reader to an inaccurate conclusion.

At best, the headline was an example of careless journalism. At its worst, it was an attempt to sensationalize the problems and instill fear into the general public.  What were the facts as reported in the article?  The 18% drop occurred over 12 months, not one month as the headline suggested.  Furthermore, the cited index was from a study of 20 unidentified cities.  Most likely, none of them were from Tennessee.   Nationwide or local home prices did not drop 18% in October, not matter what the headline said.

Let’s consider a few additional observations.  For more than a year, we’ve been subjected to a constant parade of articles and photos depicting residential real estate in a pessimistic light.  Many have centered on foreclosures and the decline in home values. Have you taken the time to read more than the headline or photo caption?  In a majority of the instances, the story relates to far away places – Las Vegas, California, Florida, Michigan and so on.  While our local market is undeniably under stress and undergoing adjustments, we are not suffering to the extent that the national media depicts.

The Federal Housing Finance Agency, in its last quarterly report, indicated that prices have dropped year over year in only 104 of the 292 metropolitan areas it tracks. Only 19 metro areas have seen a decline in values over a five year period – mostly from economically devastated Michigan and now-deflated inland areas of California.  In fact, some markets are actually appreciating.  Where have you read this information recently?

Over the next few weeks we’ll take a closer look at the numbers as they relate to us in Rutherford County. While we are all impacted by the good and bad of the “global economy,” we still live in a micro world.  Real estate has always been, and arguably still is, a local phenomenon.  Until we meet again, use caution as you peruse the headlines.  They seldom tell the real story.

Originally posted January 4, 2008

While our family prepares for the festive activities of the holiday season, my husband has just undergone knee surgery that will require the use of crutches for the next several weeks.  The thoughts of his limited mobility and the effect on all of us, left me thinking about one aspect of housing that so many of us tend to overlook when buying a home.  How well equipped is our home to aid his recovery?

In our case, the master bedroom and most living areas are downstairs.  Fortunately in Rutherford County, there appears to be an ample supply of homes with at least one bedroom located on the first floor.  We often associate downstairs bedrooms with “older” homeowners, but the reality is that residents of any age will benefit from this feature.  Chances are that many of us will be temporarily inconvenienced at an early age with difficulty climbing stairs. 

But the downstairs bedroom issue looms even larger when we consider caring for aging parents.  You might find it beneficial if building a custom home, or even looking for the perfect resale, to choose a design with more than one bedroom located on the first floor.  Ideally this option would provide you with greater flexibility in the future if one of more members of the household has difficulty with navigating stairs.  However, you will find fewer choices when looking for a plan with two or more bedrooms on the main level.  Lot sizes and construction costs make it difficult and more expensive to build.

Another thought worth considering, is the future adaptability of your home to meet certain requirements of the American Disabilities Act.  Basically, by following some of the ADA’s guidelines, you could make your home more accessible and convenient for future living.  It should not add significantly to the cost of your home to think ahead and oversize most doorways to accommodate a future wheelchair.  With a little more foresight, you might even oversize some areas of your bathroom and reinforce that walls to allow for future installation of grab bars and other support.

So far, we’ve focused only on the bedroom issues.  But with my husband on crutches for the next six weeks, our challenges are even greater.  Both our home offices and game room are located on the second floor.  On a temporary basis he’ll have to work from the downstairs kitchen and won’t be able to watch football or movies on the big screen.  I’m betting that he’ll in a few days that he’ll learn to climb stairs on crutches, but even that represents somewhat of a safety concern.

Most of us struggle just to keep up with today, but sometimes it’s good to think and plan ahead.  For the moment at least, we would be better suited to a home with all bedrooms on the first floor.  How about you?

Originally posted December 21, 2008

Tired of hearing nothing but bad news?  If you’re like me, its time to focus on positives.  Look at the glass as being half full, not half empty.  And there is some encouraging news on the home front.  In fact if you take everything into consideration, now really is a great time to buy a home.

On Thursday, Freddie Mac reported that average rates on 30-year fixed-rate mortgages dropped to 5.53 percent.  Believe it or not, this is the largest one-week drop in 27 years, and brought rates nearly as low as they were in early January.  Compare these to the 10 percent rates in 1990 (when we were relocating from Nashville to Pittsburgh).  If you’ve been thinking about buying or selling, there may never be a better time than now.

And there are hints that more help could be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.  If you’re looking for a new home, there’s no better interest rate news than this.

Want more good news?  We live in one of the best cities in America to raise kids.  That’s right!  Business Week magazine recently included Murfreesboro among the best and most affordable cities in the U.S. to bring up a family.  The outside world is already discovering what Rutherford County residents already know.   So, what’s the benefit for you and me?  Our property values should continue to appreciate (after the recession passes).  We will continue to attract newcomers due to our growing retail base, new hospital, MTSU and other attractions which for the time being it equate to a high quality of living.  Best of all, you can still buy a home in our county for much less than you might pay for a similar property in the county immediately to our west. 

Just remember that when our real estate market is compared to the state and national statistics, we’re holding our own better than most.  There has never has been a better time to take advantage of the market.  The increased inventory offers prospective buyers a wide range of choices at all price levels – both new and existing.  But, have you noticed that new home inventory has begun to fall and not many new homes are being started?  Before long the market will return to a steadier pace and the huge incentives that are being offered will one again, fade away.  It’s time to act now and take advantage while market conditions favor the buyer.

Originally posted December 7, 2008