Over the years I’ve tested out several blogging platforms. Recently I took the plunge with WordPress. I’m so excited by this beautiful new website that I’ve decided to permanently relocate all real estate related posts to:
http://StephanieCrawford.net/blog/.
As always, you can reach me at: www.NestingInNashville.com.

Happy blogging!

The first-time home buyers tax credit ends Nov. 30. Is it possible to buy in the next two weeks and still close in time to collect it?

Some professionals say yes. œIt still can be done in six weeks,” says RE/MAX Town & Country associate Lynn Ayers in West Chester, Pa.

Economist Kevin Gillen of Econsult predicts a mad rush to close as the deadline nears.

Bruce Hahn, president of the American Homeowners Grassroots Alliance in Arlington, Va., is pushing for an extension and an expansion of the credit.

Legislation to do that is critical, he says, because the recovery has so far been mostly jobless and people need more time to get their feet on the ground in order to buy.

Source: Philadelphia Inquirer, Alan J. Heavens (08/31/2009)

Timeshares are among the most difficult real estate to resell. In this economic climate, buyers are rare and management companies will refuse to take the unit back and even threaten debt collection if an owner fails to pay maintenance and management charges.

Here are some suggestions from Lisa Ann Shrier at TimeShareInsights.com
for getting out from under an unwanted timeshare:

• Most property managers won™t buy back the unit or even take it off an owners™ hands without paying anything, but it™s worth asking.
• Avoid sales agencies that charge an upfront fee to sell a timeshare. Chances are these deals are going nowhere.
• Advertise the property widely and expect to get no more than 35 cents on the dollar.
• Look for a charity that will take the property as a donation.
• Consider renting the property.

Source: Tribune Media Services, Ed Perkins (08/24/2009)

According to the latest  Zillow Real Estate Market Reports, home values in Nashville decreased 5.6% in the second quarter of 2009, compared to the second quarter of 2008. Nationally, home values decreased 12.1% during this same period.However,  home values in Nashville increased  0.7% in the second quarter of 2009, compared with the first quarter of 2009. Nationally, home values decreased 4.3% during this same period.

A good way to summarize this information is that the  Nashville real estate market  is 2 times better off than the rest of the country since last year and more than 5 times better off since last quarter. It is a very good sign that Nashville prices are stabilizing faster than most other major cities.

Why is Nashville doing better than others?  3 simple factors are leading to a faster recovery in Nashville: 1) Nashville has not experienced significant job loss, 2) Nashville was not as over-saturated by new real estate product as most major markets, and 3) Nashville is experiencing positive population increase.Coincidentally,  rental rates have risen  more than 5% since last Spring with 3% of that gain coming since the beginning of 2009.

A new study from Walking the Walk found that in 13 of the 15 markets analyzed, higher levels of walkability directly correlate with higher home values. For every one-point increase in a community™s Walk Score, the home values increased $700 to $3,000.

A great site for analyzing your home’s walkability is www.WalkScore.com.

Thinking of buying a home in one of Nashville’s walkable neighborhoods? You might consider the following areas (see on a map):

• Downtown
• Germantown
• Hillsboro Village
• 12South
• Five Points
• West End Circle
• Riverside Village
• Eastland/Walden
• Music Row
• The Gulch
• Sylvan Park
• Edgehill Village

Learn more about our Nashville, TN urban neighborhoods here.

A recent article for the NBJ updates us on the state of RMH”

“Out-of-state developers are eyeing the three empty condominium buildings at Rolling Mill Hill, looking at the units as possible apartments instead.

The 72 condos south of downtown have been in receivership since early June when property owner RMH Development 1 LLC, a Wisconsin-based holding company for the project™s investors, defaulted on a $21.4 million construction loan. The units are finished, but none have been sold.

Receiver John Cheadle says some heavy hitters are looking at the property: The Lionstone Group, a real estate investment firm in Houston, The Tuckerman Group headquartered in New York and a New Orleans firm he wouldn™t name. Local developers also have been shown around the property.

Cheadle says the investors are interested in buying the entire condo project and have been hinting at renting the units until the condo market rebounds.

That™s probably the right strategy, says developer Ray Hensler, who built the Adelicia condos in West End.

œIt™s a great location, and I think they™ll lease up pretty quick, he says. œ… But from the standpoint of valuation, the eventual pricing from that trade may turn some heads. Right now, everyone™s still guessing about what a new condo project here might be worth as an apartment.

Yet, the city also is planning apartments next door.

The Metropolitan Development and Housing Agency is planning to break ground in October on Nance Place, a 109-unit apartment building at Rolling Mill Hill that will be gold certified under the U.S. Green Building Council, says Joe Cain, development director for MDHA.

The 34-acre Rolling Mill Hill is being redeveloped through a public-private partnership between the city and select developers. MDHA has invested $10 million into the project over the past six years. Plans call for a mixed-use community, but a timetable for complete buildout remains uncertain.

Direct Development out of Green Bay, Wisc., was acting as developer for RMH but is no longer involved with the project. Direct had planned a $55 million project with four condo buildings on the site of the old Nashville General Hospital but canceled plans for a 10-story building called The District last year, citing the sluggish economy.

MDHA just approved a contract to move forward with contamination removal at the trolley barn site, which the city agency hopes to transform into offices and shops. That property was used for vehicle maintenance, and the city is working with the Environmental Protection Agency to clean it up. The agency also is seeking bids for a third phase to add sidewalks, a greenway and improvements along Hermitage Avenue.

MDHA wants to see people moving into Rolling Mill Hill, as renters or buyers. If the condos become apartments, Cain says, it won™t affect the construction of Nance Place because that building is aimed at workforce housing for people with household incomes less than $50,000 a year. The upscale condos likely would have higher rents.

œThose units are ready for occupancy, ready for folks to move in, and the greenway will be under construction for residents to enjoy the overlook, Cain says.

The condos remain vacant, sitting quietly with panoramic views of the Cumberland River inside the brick Victorian architecture of the old hospital. All units have stainless steel appliances, granite countertops and modern cabinets.

RMH built three of the five residential buildings planned for Rolling Mill Hill. Two are renovated buildings, the Victorian with 12 units and the Art Deco building with 24 units. The Metro building is new construction and is the largest at 36 units. The nine-unit Powerhouse and 92-unit District were never built, but could be added by a new developer.

Condos had been priced between $230,000 and $680,000, with some affordable units priced at $139,000 for buyers meeting income qualifications.

The $10 million Nance Place, funded through the state™s Housing Development Agency, will take 12 to 14 months to build. In the meantime, MDHA is working to get federal grants to pay for the $8 million greenway, and the agency hopes to get historic tax credits to complete the $10 million to $15 million renovation of the 1930s-era trolley barns. The Matthews Co. in Nashville will be the developer on the barns, but no timeline has been set. MDHA is working to get the barns on the National Register of Historic Places.

A 2003 feasibility study by Economic Research Associates found enough demand for 100 to 200 units per year at Rolling Mill Hill. A master plan based on the study calls for 34 acres of mostly residential use but also office and retail space. Cain says the master plan may include too much residential space and will be re-evaluated based on the rough economic conditions.

In its master plan and guidelines set out for MDHA in 2003, RTKL Associates Inc. says a high-quality urban neighborhood could be created at the site, but phase one of the project must be an overwhelming success.

œRolling Mill Hill must be quickly established as a premier urban neighborhood location in Nashville, with prices and rents at or near the top of the market, the study reads.

RMH and Direct aren™t the first developers to bail on the project.

Baltimore-based Struever Bros. Eccles & Rouse had eyed the site of the former Thermal Transfer Corp. plant and Rolling Mill Hill on the west bank for a major mixed-use project. Plans called for 214 condos, a 224,000-square-foot office building and up to 50,000 square feet of retail. But Struever pulled out of Nashville and has not announced any future plans.”

jburns@bizjournals.com | 615-846-4276

FHA Program Offers Purchase, Renovation Aid
“The Federal Housing Administration is encouraging use of its little-known 203(k) loan program.

The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.

The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill.

But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency.”

Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)

“Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government’s $8,000 tax credit offer expires on Nov. 30.

Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.

The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.”

Source: Chicago Tribune, Kathleen Lynn (08/14/09)

Freddie Mac confirms that average interest on 30-year fixed mortgages rose this past week to 5.29 percent from 5.22 percent a week earlier. Meanwhile, the average rate on a 15-year fixed loan climbed to 4.68 percent from 4.63 percent. Five-year adjustable-rate mortgages ticked up to 4.75 percent from 4.73 percent, but one-year ARMs slipped to 4.72 percent from 4.78 percent. Housing officials remain concerned that higher rates could cause some prospective home buyers to delay purchases if they are unable to qualify for larger amounts, thus slowing down recovery efforts.

[SOURCES: Freddie Mac; Information, Inc.]

Harvard Professor Says His Plan Will Save Market
When borrowers owe more than their homes are worth, they have considerable incentive to simply walk away. These defaults result in further declines in home prices.

Martin Feldstein, a professor of economics at Harvard University and economic adviser to the Reagan administration, says he has a plan that will encourage underwater borrowers to continue paying.

For any home owner with a loan-to-value ratio greater than 120 percent, Feldstein would offer a reduction in principal, the cost of which would be shared between the government and the lender down to the 120 percent level. In exchange, the borrower would accept a recourse loan that could not be discharged by bankruptcy.

He argues that this plan would stabilize the housing market and cap housing prices at the current level.

Source: The Wall Street Journal, Martin Feldstein (08/08/2009)

NES, in partnership with TVA, offers the In-Home Energy Evaluation.   Reduce your power usage and receive cash incentives for installing energy-efficiency improvements.

Participants pay an up-front fee of $150 for the evaluation.   If any recommended improvements are made over $150, the fee will be reimbursed.   Plus, you will be reimbursed 50% of the installation cost up to $500.  

I recently spotted this Forbes Magazine article raking the 10 Best Places for Condo Deals. If you are thinking of investing in a condo in one of these cities I would be proud to make you a referral to a qualified, experienced agent in their urban market. As a dues-member of the Leading Real Estate Companies of the World we have access to a huge referral database.

“Thanks to a huge inventory, many condominiums are bargains these days.

Forbes magazine took a look at the nationwide condo market to determine where the best deals could be found. Because financing can be hard to get, prices on luxury models have fallen the most.

The magazine suggested that the best deals come from paying cash or at least putting down enough cash so the property can be purchased with a federally-backed loan.

It also suggested that buyers bid low. Since these properties are moving so slowly, even a lowball offer might be accepted.

Here are the top 10 best places for condominium deals and their ZIP codes, as determined by Forbes:

1. Olympic Village, Calif., 96146
2. Tahoe City, Calif., 96145
3. Terra Linda, Calif., 94903
4. Fisher Island, Fla., 33109
5. Dallas, 75205
6. Malibu, Calif., 90265
7. Bal Harbour Fla., 33154
8. Key Biscayne, Fla., 33149
9. Lake Forest, Ill., 60045
10. New York (Upper West Side), 10069

Source: Forbes, Matthew Woolsey (07/29/2009)”

MEET YOUR TENNESSEE SENATORS

It is always interesting to learn more about the elected officials that represent you!

Senator Lamar Alexander

Senator Bob Corker

Coming Soon to Franklin!

Above: The gorgeous old elm tree at the entrance to Barclay Place.

Welcome to Barclay Place!

Franklin’s newest traditional neighborhood development where every home will be certified GREEN by NAHB Research Center and ENERGY STAR ® Certified!

Barclay Place, located in historic, charming Franklin, at the corner of Willowsprings and Downs Blvds., will feature two distinct home styles, both from our Hometown Collection.

The  homes of Barclay Place will be built by  the highly regarded builders of   The Jones Company.   The homes are being  designed reminiscent of “turn-of-the-century” architecture; offering character, great design,  and appealing floor plans for both growing and mature families.

Green Homes From the $290,000′s

D i d    y o u    k n o w ?  

First time homebuyers who buy a home

by November 30, 2009,

are eligible for an $8,000 tax credit.  

• You do not have to repay the credit, provided the home remains your main home for 36 months after the purchase date.

• You can claim 10 percent of the purchase price up to $8,000.

• You are considered to be a first-time homebuyer if you have not owned any other main home in 3 years.
  

  
  

Click Here for More Information and Frequently Asked Questions.

Better late than never! This month’s topics:

• Davidson county sales price tends 2009
• Home Inspection Seminar
• Grant Park – New Cool Spings Condo Development
• Downtown Nashville Events Calendar

Nashville Real Estate Newsletter – July 2009

Rates on 30-year fixed mortgages fell to 5.14 percent for the week ended July 16, down from 5.20 percent a week before and 6.26 percent a year earlier, Freddie Mac reports.

Interest on fixed home loans has fallen in four of the past five weeks, and Freddie Mac economist Frank Nothaft says rate activity during that time has lowered the monthly payment on a $200,000 loan by $56.

Here™s a look at how other mortgage rates performed this week:

• 15-year fixed loans fell to 4.63 percent from 4.69 percent.
• One-year adjustable-rate mortgages fell to 4.76 percent from 4.82 percent.
• Five-year hybrid ARMs bumped up a notch to 4.83 percent from 4.82 percent.

Source: Grand Junction Free Press, Wyatt Haupt Jr. (07/17/09)

Freddie Mac Calls for Appropriate Comparables
A July 10 lender bulletin from Freddie Mac says appraisers “must be familiar with the local market,” select “appropriate comparable sales,” and certify them as “most similar” to the property in question.

The bulletin also says appraisers are not required to use distressed properties in their comparable sales analyses unless they represent a good number of the properties on the market.

The bulletin is in response to the new Home Valuation Code of Conduct, which is being criticized for causing a shift among lenders to appraisal management firms outside the local market and for weakening home sales.

Source: Inman News, Matt Carter (07/14/09)   ©Copyright 2009 Information Inc.

This is interesting and something I was unaware of. From the 7/14/09 edition of the Tennessee Association of Realtors ® Legal & Ethics Hotline-

QUESTION: Regarding the Purchase and Sale agreement, is the agreement Assignable to a different buyer as it is currently written, or does language have to be added to make it assignable? We have an agent who has been told by an attorney that contracts in Tennessee are assignable unless the contract specifically states that it is not.

ANSWER: The TAR contracts are assignable as written. If you do not want them to be assignable to a different buyer, then additional language would have to be added to the special stipulations paragraph. Please understand that the original buyer will still be obligated to close on the transaction if the second buyer fails to close on the transaction. If you have a buyer who wishes to assign his rights under the Purchase and Sale Agreement, I would recommend having an attorney draft the assignment documents so as to provide as much protection as possible for your client.

[SOURCE: TAR's Legal & Ethics Hot Line Attorneys]

With home prices low, now could be a good time for parents to give their children a home or even an investment property.

Here are some suggestions for managing the tax consequences from Mark Luscombe, tax analyst with Wolters Kluwer.

• Give a cash gift. Individuals are allowed to gift up to $13,000 per person in a given year without incurring gift tax. That means a couple could give their offspring and spouse $52,000 in a single year to go toward a down payment.

• Lend money. The government requires that family members meet or exceed minimum loan rates to avoid having the loan be considered a gift. The rates are currently low. One way to handle this is for parent to use the $52,000 gift exclusion to forgive both interest and principal.

• Use a trust. Set up a qualified personal residence trust, or QPRT. You™ll need an attorney to handle this transaction, but in a nutshell, parents put the home they want to give their children into a trust. At the end of a pre-set term, the home passes to the children with no taxes due.

Source: The Wall Street Journal, Shelly Banjo (06/25/2009)