Here is a quick story so you know I can help you…

Shawn and Pam were new to the area.  They moved to Hendersonville last year and found a home that they loved near the lake. 

Shortly after the home purchase, Pam had a great offer to work.  She took the job and loved it.  The problem was her long commute.  In evening rush hour traffic, it might take her one hour to get home.

Pam decided that she wanted to move to closer to work.  Shawn was worried since they just bought the house that they might not be able to move right away. 

Shawn and Pam contacted me about their problem.  I put together a plan to sell their home quickly at the right price.

We quickly placed their home on the market and started our Premier Home Selling program immediately. 

The home went up for sale on Friday, and by Monday we had a full price offer on the property closing within 30 days. 

Shawn was elated about selling his home.  However, he works out of his home and was worried that we could not find a home to purchase right away.  Moving to a rental was out of the question.

If you haven’t heard:  With a low inventory of homes for sale, the home buying process can be tough right now.  

We used our SMART Buyers Program to quickly find a home they loved closer to work.  We found a great home fast, and got it under contract at the right price and the right closing date. 

Shawn was elated because he did not have to move into a rental and got to spend more time with Pam.  Pam was so happy because she loved her new job, her new home and her short commute.  

Over the last eight years, we have seen nearly every difficult situation in real estate…Even yours.

These difficult situations can be paralyzing to you when you want to sell your home.

We understand how to move around the obstacles and minimize the headaches that could prevent you from living your dream.

Do not trust your home to an inexperienced agent!

Call me at 615-519-0983 and tell me your difficult situation.

Talk to you soon –

Steve Jolly

Here’s How I Can Help… is a post from: Nashville Real Estate Now

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Boy, do they have it wrong.

I can see from the outside how it may look easy.  Just like a NFL receiver making a diving catch, a top notch Realtor makes it look simple.

I overhead one guy at lunch the other day say, “No Problem.  All you have to do is put a sign in your yard and get it on the internet.”

Zillow is one of the top 3 real estate portals on the internet.  10 years ago, some even thought that Zillow would eliminate the need for real estate agents.

Zillow’s Founder and CEO, Spencer Rascoff recently said, “buying a home is infrequent…expensive…emotional…they need a professional to help guide them through the transaction.”

Spencer understands the value of a great Realtor.

Colby Sambrotto, founder and former CEO of ForSaleByOwner.com, used to promote that selling your home on your own was easy.  A few years ago, he tried to sell his Manhattan apartment.  For six months he tried to sell it himself, using the methods he taught and failed.

He decided to list his home with a Realtor.  The Realtor immediately raised the price $150,000 and sold the property.

Colby was so impressed by the experience that he started another real estate company that utilized real estate agents.  Colby told Realtor Magazine,” I learned a lot of lessons at ForSaleByOwner.com…It was great at reducing transaction costs, but it didn’t sell enough houses to be the game changer I thought it would be.”

We developed a system to lead you through the entire sales process.

Our Premier Home Selling System quickly sells your home at the right price…even if you have a difficult situation.

Want to learn more?  Call Steve Jolly at 615-519-0983

Take Care!

P.S.   To get a Complete and Accurate Home Value Report:  Click Here!

P.S.S.  Watch out for those with a slick presentation, no systems and no marketing plan!

The Problem with Real Estate Sales is a post from: Nashville Real Estate Now

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Over the last five years, foreclosure has become a word that we hear nearly every day in conversation or in the news.  Even with all this talk, most people do not fully understand the bank foreclosure process, the terminology commonly used by real estate agents, and the best opportunities for purchasing a property in foreclosure.   

In order to get you the best information, I decided to write this article and provide you with an infographic that depicts the bank foreclosure stages, timeline and the best ways to buy.  The tax foreclosure process in Tennessee is less common and follows a different path and timeline.

Tennessee is considered a non-judicial foreclosure state, which means that the bank foreclosure process happens outside of the courtroom without a redemption period.  Most non-judicial states have a similar foreclosure process, but the rules and timelines vary per state.  The judicial foreclosure states typically have much longer timelines and redemption periods for homeowners. 

Notice of Default

The first stage in Tennessee is default.  This technically occurs when the homeowner does not make the required mortgage payment by the due date.  Most lenders do not consider a homeowner in default until they have gone 30 days without a payment.  During this time, the lender will likely be in frequent contact with the homeowner.

After 90 days without a payment, most lenders will issue a notice of default.  This is a legal notice to the homeowner that they have breached the mortgage (Deed of Trust) contract.  At this point, most lenders will only accept a full payment of all missing payments and late fees. 

If the homeowner owes more on his property than market value, the homeowner may attempt to sell the home as a short sale.  Short sales are one opportunity to buy a home, but they are not as popular in Tennessee when compared to other states. 

Short sales are frustrating to many buyers because of the extended time required to purchase a home and not knowing if the lender is going to accept the offer and close.  The lender may decide to take less on the home than what is owed when approving a short sale.  Many Tennessee short sales end in foreclosure.

You can also purchase Non-Performing Notes (NPN) from financial institutions at this state.  This is purchasing the Deed of Trust from the bank.  The buyer would be required to perform any foreclosure or eviction actions after the purchase.  Non-Performing Notes are not very popular in this area, due to the positive market conditions.  Warning!  NPN purchases are for experienced investors only.

Notice of Foreclosure Sale

The second state in Tennessee is the Notice of Foreclosure Sale.  This typically happens 120 or more days after missing the first payment.  At this time the lender is required to post a public Notice of Sale three different times with 20 days advance notice.  This posting could be in a newspaper, an online news source or in five of the most public places in the county. 

In the second stage, the best purchasing opportunities are still with Short Sales and Non-Performing Notes. 

Foreclosure Sale

The third stage of the process is the Foreclosure Sale.  The foreclosure sale in Tennessee is conducted by an attorney in a public place, but not necessarily on the steps of the courthouse.  At this sale, the property can be purchased by any individual or corporation.  If the home does not sell for the reserve price at the foreclosure auction, the ownership will revert to the lender.

The best opportunity to purchase the home at this stage is at the foreclosure sale.  The buyer will not likely have an opportunity to view the interior of the home before the sale and they will be responsible for the eviction of any occupants and their personal property.   Due to these issues, purchasing a home at the foreclosure auction is for experienced investors only. 

REO

The fourth stage of a foreclosure is REO.  REO is a bank term that stands for Real Estate Owned.  Property in this stage may also be called Bank-Owned.   This is a term to describe any property that the bank owns that it obtained by default.  This happens when the home reverts to the lender at the foreclosure sale.  Due to the contract requirements between lenders and services, the ownership of the REO property may change hands between financial institutions after the foreclosure sale.  The lender can also sell a group of REO homes to other financial institutions, hedge funds or large investment corporations.

Prior to listing the REO in the MLS, the seller may decide to sell the REO at a post foreclosure auction.  Many of the post foreclosure auctions are conducted online and some are still occupied.  If occupied, the buyer may also be responsible for eviction of the current occupants. 

Eviction

The final stage of a foreclosure is Eviction.  Most lenders will offer cash relocation assistance to occupants who reside in the property after the foreclosure sale.  These occupants could be tenants or former owners.  The assistance is offered to speed up the time to take possession of the home and offset funds spent on attorney fees to conduct an eviction.   

When the property is vacant of occupants and personal property, the most common way a buyer purchases an REO is from an agent who specializes in bank-owned homes.  Most REOs are listed for sale in the MLS, just like any other property listed for sale.  They may still be called a foreclosure at this stage, but understand the foreclosure auction has already been completed.

I hope this article and infographic help you to understand the foreclosure process in Tennessee and the best opportunities to purchase a bank-owned home. 

If you have more questions about the foreclosure process, Call Steve Jolly today at 615-519-0983!

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5 Stages of Tennessee Foreclosures is a post from: Nashville Real Estate Now

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July was another great month for Real Estate in Nashville.  Smart buyers and sellers have been taking advantage of the positive market dynamics.  July continued to break records and we still have one more month of summer, which is the height of real estate activity in Nashville. 

History teaches us that the highest average price for the year peaks at the end of the summer.  If you are considering selling your home in the near future, I would highly recommend listing it today while there is so much pressure from buyers in a market with limited inventory.  The biggest risk for home sellers today is the economy.

For those who are considering purchasing a home in the near future, I would also encourage you to speed up the process.  This fall would be a great time to purchase a home, while the interest rates are still low.  Your biggest risk is increasing interest rates.  Rates have already climbed from their all time low and most experts expect rates to continue to climb.   

Here are 50,000 reasons to consider buying today.  If rates climb 1% on a $250,000 loan, that will cost you more than $50,000 in interest over the life of a loan. 

Do you feel the motivation? 

My best advice is to find a Realtor who understands your market, who has the heart of a teacher and is willing to guide you to success.

July 2013 – Nashville Real Estate Prices

The median price of Nashville homes has skyrocketed $22,750 since July 2012 and $37,000 since January 2013.  The summer of 2007 was the last time the median price in Nashville was higher.  With three months of consistent sales increases, I expect to see the same for August. 

This time of the year is the peak for prices in Nashville and I expect them to slowly decline until the end of the year.

Days on Market decreased another 3 days in July to an average of 70 days.  This counts the days from the time a home is listed until it is under contract.  The average days to close in Nashville is holding steady at approximately 30 days.

July 2013 – Nashville Real Estate Inventory

Residential Inventory remains at their lowest levels since 2007.  In July, the inventory slightly decreased from June and I expect it to continue this trend through the end of the year.  The low inventory combined with an increase in buyer activity is causing the upward pressure on prices. However, the forces of supply and demand are balancing the market. It seems that the inventory is moving quickly, and is being replaced with new listings each month.    

Based on our current sales rate, we have less than 4 months inventory of residential homes for sale in Nashville.  I would not declare this a seller’s market until the inventory drops below 3 months of sales. 

July 2013 – Nashville Real Estate Average Sales

July 2013 was the best month for the number of home sales since 2007.  With three solid months this summer, Nashville also has not seen this market consistency in a long, long time. I expect that we will have sales above the 3,000 mark in August before we start the seasonal slowdown. 

Sales Volume is up 24% year to date compared to the same time period in 2012.

Market Risks for 2013

I expect Nashville to continue this trend in August and then start the seasonal slowdown of activity.  With the local economy in good condition, I do not expect any local factors that would derail our market.

On the national front, there are a few more concerns.  Keep an eye on these three issues that have the highest probability of affecting our local economy and market recovery.

As I have said previously, I expect Nashville to continue this trend through August and then slow down through the end of the year.  It is possible that changes at the federal level could affect the local market. 

 1.    Expect a battle in Congress when the continuing spending resolution expires in the fall.  Since we have not had a Federal Budget in years (what a shame!), this bill has been used to continue funding the Federal Government. 

2.    The National Economy continues to get better at a snail’s pace.  Contrary to what some believe, we are far from a thriving national economy.  Living on the edge means that any crisis could turn us in the wrong direction quickly. 

3.    Interest rate increases are stealing your purchasing power.  While we are still near record interest rates, most economists are expecting rates to rise.  This will be accelerated when the Federal Reserve stops the bond buying program.  This program has kept rates artificially low in an attempt to prop up the economy.  The Fed has already given signals that this is coming to an end soon.

Our Best Advice

If you are considering buying or selling in the near future, pick up the phone and call your Realtor today.  For sellers, take advantage of the market while it is hot as we do not know how long this will last.  For buyers, every month that you wait could cost you thousands in additional interest and price changes.

The real estate data was provided by the Greater Nashville Association of Realtors, Middle Tennessee’s largest trade association for Real Estate Professionals. 

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Are You Stuck in the Past? Nashville Real Estate Market Report – August 2013 is a post from: Nashville Real Estate Now

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Nashville is an area blessed with natural beauty.  This area stands apart from other large cities due to the abundance of nature and the number of parks within a few miles of the downtown area. 

Fall is my favorite time to enjoy the outdoors in Tennessee.  With the change of seasons just on the horizon, I wanted to share some of my favorite places in Nashville to take in the beautiful scenery of this river valley we call home. 

Percy and Edwin Warner Parks

The Warner Parks are part of the Metro Nashville Park System and are one of the top destinations for hikers in the city.  Percy Warner is located just nine miles from downtown Nashville just south of Belle Meade.  When combined with Edwin Warner Park, this area spans nearly 2700 acres and is the largest city managed park in the state. 

Most consider the Mossy Ridge Trail in Percy Warner to be the best hiking trail in Nashville.  This trail was recently recognized as one of the top seven hiking trails in the nation by Fodor’s Travel Guides.

Also, known as the red trail, Mossy Ridge is the most strenuous in the park.  The south loop is the steepest part of the hike.  This trail offers the best opportunity to see a variety of wildlife and wildflowers.  The Quiet Point Spur overlooks the Deep Well Trailhead and Picnic Area.  The Eanes Overlook Spur provides a north facing view of West Meade. 

The Warner Parks also offer 8 additional hiking trails, horse riding trails, picnic areas, nature center, two golf courses and many other planned activities. 

Radnor Lake

Radnor Lake is part of the Tennessee State Park System and is another top destination for hikers in Nashville just south east of Green Hills.  Because it is classified as a Natural Area, the land use at the park is restricted to hiking, canoeing and education to avoid upsetting the delicate balance of this unique ecosystem.  Radnor Lake is located about 10 miles from downtown Nashville.

There are six miles of trails at the park, with the most popular trail being the Radnor Lake Loop.  This 4.3 mile circuit wraps neatly around the 85 acre lake that is the centerpiece of this natural area. 

The lake loop is an easy hike with little changes in elevation and beautiful views of the lake.  If you are feeling adventurous and would like to take in some gorgeous views of the downtown skyline, take a side trip on the Ganier Ridge trail just off of the lake loop. 

Richland Creek Greenway

Richland Creek is part of the growing Metro Parks System of trails and greenways located only 4 miles from downtown Nashville.  Although not a true hiking trail, Richland Creek is a great place to get some quick exercise while soaking in the beauty of Nashville.

The greenway offers nearly 4 miles of paved trails for walkers, runners and bikers.  The trails connect the neighborhoods along the Harding Rd and White Bridge Corridors with the Sylvan Park neighborhood.

A family favorite is to hike the Richland Creek Greenway and take in a light breakfast or lunch at one of the great places to eat in Sylvan Park. 

Beaman Park

Beaman Park is located in a rural area on the edge of the Highland Rim in the northwestern part of Davidson County and is part of the Metro Park System.  Beaman Park is a 1700 acre tract that offers 3 trails that cover more than 5 miles of hiking.

Due to its location on the edge of the Highland Rim, Beaman Park offers unique species and variations of plant life.  The landscape in this park is more rugged with narrow hollows, streams and waterfalls. 

In addition to the hiking trails, Beaman Park also has a Nature Center and a variety of educational programming.  At one time this area was a hotbed for moonshiners and may have been a hideout for the James Gang.

Shelby Bottoms

Shelby Park is affectionately called Shelby Bottoms by most people in Nashville.  Located just across the river from downtown Nashville, Shelby Bottoms contains more than 1200 acres of floodplain along the Cumberland River in East Nashville. 

The park features 5 miles of paved Greenway and 5+ miles of more primitive hiking trails.  The Cumberland River Pedestrian Bridge connects the Shelby Bottoms Greenway to the Stones River Greenway. 

In addition to the trails, Shelby Bottoms also offers sports fields, picnic area, dog park, boat ramp,  community center and two golf courses.  This area was part of three separate farms as late as 1994 when it became the pilot project in Nashville’s greenway program. 

5 Amazing Places to Walk and Hike in Nashville is a post from: Nashville Real Estate Now

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It has never been truer than in today’s world.  There is no neutral.  Either you are moving forward or going in reverse.  Either you are growing or shrinking.   Living or dying. 

In order to move forward, you have to have vision of where you want to be.  This should be the easy part, but it is exactly the place where most people stop.  I think determining your vision is the hard part for most people because it assumes risk, accountability, hard work and the potential for failure.

Passion is another reason people fail with their vision. If you are not fully invested in your dreams, they are too easy to give up when the going gets rough.  Every journey has its share of obstacles, struggles and hard work. 

For other people, it is so much easier to do nothing.  It might seem like some folks are an overnight success, but you never see the years of planning and hard work that preceded it.   No one has ever stumbled into their “Dream Life.”

Fortunately, I come from a long line of visionaries.  I have told you some of my family stories in the past.  Today, I want to introduce you to some forward looking Jollys and their journey from England to the New World, and from surviving to success. 

My great grandfather, William Jolly, was born in the Cornwall area of England in the 19^th Century.  He was a miner in the peak of this industry in Cornwall.  This area was famous for copper, tin, silver and the skill of the miners in extracting metals from the tough granite bedrock.  There is even a famous, traditional folk song about the Cornish Miners called, “Come All Ye Jolly Tinner Boys.”

William saw the increasing competition from foreign sources of copper, tin and silver.  He heard the stories of the incredible deposits of metals in the new world.  William and many of his friends had a vision of a better life in the new world.  He packed up his family and headed to the top of the Upper Peninsula in Copper Harbor, Michigan.   Soon these mines would produce most of the world’s copper.  By the 1900’s these were the deepest mines in the world.  Like all operations, the mines in this area would eventually reach maturity and become unprofitable.   

Seeing the inevitable decline in Copper Harbor my grandfather, Glenn Jolly, saw an opportunity in the growing city just to the south, Detroit.  He saw an opportunity to move out of manual labor and work in an office environment.  He saw an opportunity to live a middle class lifestyle, which was non-existent in the past.  He worked for General Motors as a young man and until the day he retired.  

In the 1950’s, Detroit was the 4^th largest city in the United States, accounted for more than 15% of the national economy and was admired around the world.  My father was born in the Golden Era of Detroit.  He loved the city, the automotive industry and all that it stood for.  He also had the vision to foresee the city’s eventual demise. 

For most of his career, my father worked in the Automotive Industry.  While working for Chevrolet in the 1970’s he witnessed the decreasing quality, increasing costs and closing factories.  He once told me that they would place new Vegas on a large auto vibration testing machine and parts would literally fall off the car.  When he purchased a new car, he would check to see the date of assembly.  It was commonly thought that the best cars were made on Tuesday, Wednesday or Thursday. 

These were not insider secrets.  I have heard the same stories from many others who lived in and around Detroit.  Why did my Dad have the vision to come to Tennessee in 1979, when so many of others decided to stay behind?  As of last week, we all know how the story ended. 

We finally come to my story.  I have had a few visionary moments in my life that lead to success.  I want to share my latest one and save the rest for some other day. 

In 2005, I was considering a move to a career in Real Estate.  Due to my business sales background and a vision of increasing opportunities in foreclosures, I decided to focus my career in selling bank-owned homes. 

Thankfully, I did not listen to the naysayers, critics and those who say it could be done.  I heard all of the horror stories of the business and all of the reasons why I would not be successful.  I heard that foreclosures were a thing of the past because homes continue to appreciate year after year.  No one thought that eight years later I would have I have a career that I love and more than 200 bank-owned sales in the book. 

As I look back, I realize how much has changed since 2005 and how quickly change is coming in the future.  My forefathers had to make just one visionary change in their life to stay ahead of the game.  I might have to make three or four more leaps of faith before it is all over. 

While I am looking ahead to my next ten years in Real Estate, I challenge you to take a look into your future and ask yourself these questions?

Where do I want to be in five years?  In ten years?

How do I map my journey from today to my future?

What steps do I need to make every day to connect the dots?

The three secrets are simple.  Create a vision based on your passion, plan your journey, and take action daily.

So I challenge you to take immediate action.  Even if they are small steps, you are headed in the right direction.  If you have critics, let them be your motivation.  If you have nothing to believe in, believe in yourself. 

Why?  Because You are Awesome and I believe in You!

If your vision includes Real Estate or if you need a sounding board, do not hesitate to contact me.  I am always here to help!

And do not forget…You are either moving forward or going in reverse.

3 Secrets to Moving from Survival to Success is a post from: Nashville Real Estate Now

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Success not only comes from timing, but also adjusting to the ever changing market.  Many of the people that I talk to on a daily basis are stuck in the market of the past.  It may be last month or last year, but they are still stuck in an outdated mindset.  This frame of mind is detrimental to meeting their goal to successfully buy or sell a home.   

Buyers must understand the dynamics of today’s market and use it to their advantage.  With prices and interest rates rising quickly, purchasing power is disappearing quicker that biscuits at the breakfast table.  In the last month interest rates have climbed 1% leading to an 11% reduction in buying power.  This means that you can afford 11% less home now than you could in March.  Most are expecting interest rates to trend upwards. To make matters worse, the median home price in Nashville has climbed from $169,000 to $205,950 in four short months.  Add both of these together and you can quickly see your dream home vanishing before your eyes.

Sellers also need to understand the market trends in order to get the best results.  This is the first significant positive market trend in Nashville in more than six years and it is not guaranteed to last forever.  I am not worried about the local economy and Nashville continues to attract business and individuals to relocate.   However, there are other national and international events that could derail this comeback. 

If you are considering making a change, Why are you still waiting?

Stop listening to the news or your friends views on the market.  Find a Realtor who understands the changing market dynamics.  One who has the heart of a teacher and is willing to guide you to success.

June 2013 – Nashville Real Estate Sales

Nashville Real Estate Sales are up 23.8% over June 2012.  They are flat when compared to May 2013, but May was 9% higher than the previous month.  Sales volume has not been consistently at these levels since 2007.   There is no doubt that the market in Nashville is very active. 

Several months ago, I expected that sales would eclipse 3,000 units this summer.  We have hit the 3,000 sale mark twice this summer and I am expecting two more.  Even with the rise in rates, I expect they will not deter buyers in the short term.  The Fed recent announcements of the imminent end to the bond purchase program may cause more sales activity this year.

June 2013 – Nashville Real Estate Inventory

Another month of flat inventory levels in Nashville is a good sign.  When coupled with the sales volume, this would indicate that the forces of supply and demand are in balance in our market.  It seems that the inventory is moving quickly, and is being replaced with new listings each month.    

Nashville is stable at 5.5 months of inventory on hand.  This is the same level as last month, and another positive trend in the market.  I expect the peak inventory to be in June or July 2013 and then slowly trend downward for the remainder of the year.  Inventory typically peaks this time of year and slowly declines through the end of the year.  Nashville appears to be trending positively in a balanced market.  It is a great place to be!

 June’s inventory is 12% less the same month in 2012.   

 June 2013 – Nashville Real Estate Average Price

Over the last few months, the change in median price has been astounding.  We are at all time record levels now.  This is partially due to an increase in sales of higher priced homes.  The median home price is up nearly $40,000 since January 2013. 

That was just a few months ago!

Prices rose another 5% in June, which makes three months of significant price increases.   This upward pressure on prices cannot continue indefinitely, but I am excited to see this key indicator at the end of August.  Past history tells us that home prices in Nashville tend to drop slightly in the final quarter of the year.

The average Days on Market holds steady at 73 days. 

Fall/Winter 2013 – Nashville Real Estate Market

As I have said previously, I expect Nashville to continue this trend through August and then slow down through the end of the year.  It is possible that changes at the federal level could affect the local market.  These areas with the most concern are the following:

• Lending: Since the Federal Reserve’s announcements last month, interest rates have risen approximately one percent.  Although this seems insignificant, it equals $50,000 in additional interest over the life of a $250,000 loan.   It is difficult to tell when the bond purchase program will end; we are assured it will be in the near future.  This is the beginning of the end of record low interest rates.  A slow rise in rates is in the best interest for the market and economy.
• Government:  Our Congress has been inefficient at best lately.  Investigations, Scandals, Budget Battles, and a renewed effort to eliminate homeowner tax deductions all could harm the market across the country. 
• Economy:   The Nashville Economy is amazing, and we continue to attract new businesses and residents daily.  The National economy is my biggest concern.  The American GDP has been anemic at best over the last few years.  The uncertainty in the federal government and the management of programs such as the Affordable Health Care Act already appear to be dragging down our national potential.

What Would Steve Do?

If I were considering selling my home, I would make my decision quickly.  This is the best market for sellers in six years and there are no guarantees that it will continue unimpeded.  Take advantage of the limited inventory, high buyer demand and rising prices while you can. 

If I were considering buying a home, I would be out looking at properties today.  We are at the end of the best opportunity to buy in your lifetime.  Interest rates are at near record lows and prices have just started to climb.  Every month that you wait could cost you thousands in additional interest and price increases.

The real estate data was provided by the Greater Nashville Association of Realtors, Middle Tennessee’s largest trade association for Real Estate Professionals. 

What Would Motivate You to Take Action Today?

These Buyers and Sellers Got Results! Nashville Real Estate Report July 2013 is a post from: Nashville Real Estate Now

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This is a follow up to a story that I wrote in April 2012 concerning Trayvon Martin and how his case may affect your local Homeowners Association. 

The Twin Lakes Neighborhood in Sanford, Florida was responding to an increase in crime in their neighborhood in early 2012.  In their February 2012 newsletter to residences, the HOA named George Zimmerman as the watch captain for the neighborhood.  They also instructed residents to report any crime or suspicious activity to Mr. Zimmerman in the Crime Watch Section of the newsletter.   This was the same month in which the confrontation between took place.

In my previous article, I explained that this action may be considered a written endorsement of George Zimmerman and may expose them to a wrongful death lawsuit.  Florida courts had previously upheld that an HOA could be held liable for wrongful death. 

As expected, the parents of Trayvon Martin, filed suit against the Twin Lakes Homeowners Association.  In addition to wrongful death, they also filed suit for pain and suffering, loss of earnings and expenses.  To avoid an expensive legal fight, the Twin Lakes HOA decided to settle out of court with Tracy Martin and Sybrina Fulton, the parents of Trayvon Martin.  The amount of the settlement was sealed, however, it has been reported that the total settlement was more than $1 million.

If the Twin Lakes Homeowners Association did not have insurance to cover this amount, the balance would fall on the homeowners of this neighborhood.   This could come as an assessment on each property or higher monthly fees. 

I expect that prudent Homeowners Associations across the country will review their practices and may consider changes based on the outcome of this situation.

I spoke with Kim Hollingshead, Attorney with Touchstone Title and Escrow, LLC, headquartered in Franklin, TN.  “A homeowners association (HOA) owes a fiduciary duty to its members to preserve property values in the neighborhood.  While a neighborhood watch program could serve this goal by increasing safety it should be created and maintained separately from the HOA,” Hollingshead stated.

Hollingshead also provided the following advice for homeowners associations.

• Check the liability insurance policy to confirm coverage. 
• Register with the National Sherriff’s Association. 
• Contact your local police and set up a meeting to discuss the program. 
• Draft clear rules and procedures that follow the guidelines promulgated by the NSA and local police.  Volunteers should never carry weapons and their first course of action should be to call 911 – suspects should never be confronted or pursued. 
• Conduct criminal and personal background checks all volunteers.  Check for prior convictions, mental or emotional stability, and trustworthiness.  All volunteers should be fully vetted. 
• Train volunteers and update training on a regular basis.   
• Take neighbor complaints and suggestions seriously.  (Zimmerman’s neighbors complained about his aggressiveness long before Trayvon Martin’s death.) 
• Put as much daylight between the neighborhood watch program and the HOA as possible.  The two should be separate entities with separate publications, uniforms, and websites.  Do not make the neighborhood watch program an official program of the HOA and clearly state the separation on all communications with homeowners.

Neighborhood Watch was created by the National Sheriffs’ Association (NSA) in 1972 as a crime prevention initiative focused on neighborhoods and coordinated by the neighbors.  The NSA claims that Neighborhood Watch is one of the oldest and best known crime prevention concepts in North America.  In recent years the role of the neighborhood watch has been expanded to include an additional focus on preparing for disasters, emergency response and awareness of terrorism activities.

What Step Will You Take to Prevent the Next Tragedy?

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How the Trayvon Martin Tragedy Will Affect Your Homeowners Association is a post from: Nashville Real Estate Now

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Last July, I wrote a story titled, You Can’t Afford to Wait to Buy Your Next Home.  Many of you heard my warning, a few acted, but most people sat on the sidelines.  

If you fall into this third category and are still considering purchasing a home, why are you still playing the waiting game?

This time last year most experts predicted that Nashville would see a 1-3% rise in prices by the end of 2013. 

Did you see my latest Market Report for June 2013?

Median prices in the Nashville Market are up nearly 15% or $28,000 since January 2013.  The low inventory and an increase in buyer activity in Nashville have set the market on fire.  Monthly sales are at a six year high. 

Adding fuel to the fire is the rise in interest rates.  Interest rates took a huge leap following the Federal Reserve’s decision to halt the bond buying program later this year.  If you did not already know, the FED has been purchasing up to $85 billion each month in bonds.  This has kept interest rates artificially lower in an attempt to support the ailing economy and the housing market. 

Due to a rebound in the market across the nation and some positive economic news, the Federal Reserve decided it was time to announce the beginning of the end of the bond purchase program.  This announcement caused a sharp drop in the stock market and an immediate increase in mortgage interest rates. 

Interest rates are nearly one percent higher than they were a few weeks ago.  Many people have asked me, “Steve, Why are you so concerned over a 1% increase in rates?” 

That is a great question! Most people think that one percent seems like such an insignificant number, and interest rates are still well below historic levels. 

Does 11% get your attention?

11% is what you lost in purchasing power while the interest rates climbed 1%.  If you could previously afford the payment for a $400,000 home; your new maximum purchase price is approximately $356,000.  Couple this with rising home prices and your dream home is fading away.

If that did not work, how does $51,875 sound to you?

$51,875 is the additional interest you would pay over the life of the loan when interest rates climb from 3.5% to 4.5% on a $250,000 mortgage.    I think we all could find a better way to spend $50,000 than on mortgage interest.

Can You Hear Me Now?

The good news for America:  the economy is recovering.   The bad news for future interest rates:  the economy is recovering.  Improving economies go hand-in-hand with rising interest rates. 

Still not sure what to do…Relax, Take a deep breath and Give me a call!

Here’s How One Percent Can Cost You More Than $50,000! is a post from: Nashville Real Estate Now

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In order to be successful, buyers and their Realtors need to adjust to the new market dynamics.  Timing is very important as the most popular homes do not stay on the market for very long.  Pricing is another key.  If your analysis is not in tune with the local market, your offers will be ignored.  I am not suggesting that you overpay for a home, but that you understand the local dynamics so that your offers will be priced appropriately. 

It is all too common for buyers and sellers to be stuck in a Real Estate Reality that no longer exists.  It is not enough to listen to the news to understand the market.  It is imperative to connect with a Realtor who truly understands the market and is willing to share his knowledge with you.

I have been telling you for a few months that this is both a great time to buy and sell in Nashville.  This scenario is quickly coming to an end.  Rising home prices and the end of the Federal Reserve Bond Purchase Program could spell bad news for buyers. 

May 2013 – Nashville Real Estate Sales

Residential real estate sales in Nashville are at levels we have not seen since March 2007.   Sales are up 22% over May 2012 and are trending 9% higher than the previous month.  In addition, we have nearly doubled sales since January 2013.  This is amazing!

At the beginning of the year, I predicted sales would eclipse 3,000 units this summer.  Now that we have hit that mark, I expect to have sales above this level for the next three months.  Sales are expected to continue growing as long as interest rates remain near record low levels.

May 2013 – Nashville Real Estate Inventory

Nashville’s inventory levels remain flat which is good for our market.  It seems that homes are flying off the shelves as soon as they are listed.  This is especially true in areas where the inventory in limited. 

Nashville’s currently has 5.5 months of inventory on hand which is slightly less than last month and significantly less than previous years.  Inventory typically peaks this time of year and slowly declines through the end of the year.  This indicates that we are still in a balanced market, however, the rising sales numbers and expected decline in inventory would suggest that the market may be leaning towards sellers at an ever increasing rate. 

May’s inventory is 14% below the same month in 2012.    

May 2013 – Nashville Real Estate Average Price

The year of price appreciation continues strong into May 2013.  Prices rose another 5% in May which gives Nashville two months in a row of huge price increases.  We are up almost 15% over the median price of January 2013.  I do not expect this level of appreciation to last for long, but it will be interesting to see where we are in August.  Median price tends to drop or remain flat in the final quarter of the year.

The average Days on Market has decreased again in the last month to 73 days.  This time last year Nashville averaged 84 days on the market and we have shaved off more than a week since the beginning of the year.  This is another testament to the quick movement of homes in the market.

Continued Outlook for the Nashville Real Estate

I expect the Nashville market to continue gains throughout the summer and start tapering off in the fall. However, there are a few dark clouds on the horizon that we need to watch.  These scenarios have potential to significantly affect the Nashville Real Estate Market and economy. 

·         Lending: Previously, the Federal Reserve stated that they would take steps to keep interest rates low through the end of 2014.  However, their most recent announcement claims they will end their bond buying program later this year.   This resulted in a significant sell off last week on Wall Street and could create rising interest rates.  Rising rates significantly affect buying power.  Every 1% increase in rate equals 10% less buying power. 

·         Government:  Investigations into the recent scandals in Washington DC could sidetrack Congress for more than one year.  Debt Ceiling battle, Budget fights, and a push to eliminate the mortgage interest deduction could be coming to a Congress near you soon. 

·         National Economy:   Thankfully, the sequester woes did not play out as they were portrayed by our elected officials.  The GPD has not been expanding at an acceptable rate for some time.  The rollout of the Affordable Health Care Act will be in full swing later this year.  All of these could have a significant impact on jobs and the economy.

My Best Advice

Homeowners:  If you are considering selling your Nashville home soon, I would recommend that you get it on the market immediately.  We will soon be at the end of summer selling season in Nashville. With inventory levels low and prices rising, this may be the best opportunity in years to sell your home.  There are too many unknowns to predict with any certainty the real estate market in 2014 and beyond. 

Home Buyers:  If you are serious about purchasing a home this year, it is imperative that you connect with a Realtor who has the heart of a teacher and really understands your local market.  There are still great opportunities for those who can move quickly and with confidence.

The real estate data was provided by the Greater Nashville Association of Realtors, Middle Tennessee’s largest trade association for Real Estate Professionals. 

What is preventing you from buying or selling your home today?

Can You Say Off the Charts? Nashville Real Estate Report – June 2013 is a post from: Nashville Real Estate Now

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