Interest Rates are fantastic, hesitate and loose.

If you are now in the market to buy a home, now may be the best time you will ever see.  Interest rates are at historically low levels, prices are just beginning to rebound in some markets, so now is the time.  If you wait you will look back and say to yourself, “why didn’t we buy in 2012”.  As of today(5/25) there are 467 homes on the market in Coffee County, with 172 in the Tullahoma zip, 246 in the Manchester zip.

Property is selling, not at a record pace, but the key to it all is pricing and condition.  Most buyers are wanting a home that is what we call “move in ready”.  Most of the time the investment in paint, new floor covering, and minor repairs comes back at least 100% or more.  A professional agent can help you decide what things you can do to enhance the appeal of your house.  HGTV.com as well as the TV show offer numerous ideas on enhancing your property.

Pricing in the market is now more important than ever, sometimes we are seeing properties sell for less than they did in 2006-2010.  You might have to come out-of-pocket with additional money to cover all the expenses and mortgage balance if you fall into this category.  The bright side is that if you re-purchase you are getting homes typically less than you would have, getting excellent interest rates and another opportunity to purchase smart.  Alway remember that real estate is a long-term investment.  If you plan on moving within 3 years make sure you buy in an area that has a pretty good turn over, and don’t buy anything that is out of the ordinary.

If you have any questions regarding real estate in the Southern Middle TN area, give me a call or drop me an email.

My primary market is Coffee, Franklin, Moore, parts of Bedford, and parts of Rutherford Counties.

 

 

 

Auction, is it an option?

Maybe or maybe not, how is that for an answer?  It all depends on the individual situation and what time frame you are looking for to close the property out.  Too many sellers feel that selling at auction is a sign of a distressed sale but usually that isnt the case at all.  Auctions are the best indicator of market value at any given time.  Real estate is just like the stock market in that it moves with supply and demand, and although the average days on market is 90-120 days, auctions force the demand on that particular day at a particular time.

In our area what we typically see is auctions used for estate purposes to liquidate the estate into cash so that the heirs can divide and close the estate out.  The cost of an auction may seem to be more expensive than traditionally listing it with a company for sale, but when you factor in the cost to carry a home, pay for utilities, upkeep, property deteriorating, and possible increase in insurance costs, it really isnt that much different.

As an auctioneer I have been involved with numerous sales over the past few decades and with good success.  At Coldwell Banker Barnes, the parent company of Coldwell Banker Snow and Wall, we have our own company.  We were award the Best Auction company in the Tennessean readers choice awards in 2010 and 2011.  We have a full auction staff, 4 auctioneers, our own tent, tables and equipment to carry out a sale.  Give us an opportunity to help you sell your property and let us go to work for you.

I speak on behalf of my fellow auctioneers, we can do just about any kind of sale.  My expertise is in estate and real estate sales, but others have extensive experience in farm, farm equipment, heavy equipment, and liquidations.  Need help, Just Call John!

 

Where to look for homes?

So often we tend to gravitate to homes magazines, the newspaper, or spend countless hours driving around looking for property for sale.  Studies have indicated that most buyers and even sellers are looking for real estate online and narrowing down areas of specific interests.  In the Tullahoma, Manchester and Winchester areas, the best place to look …that is other than my site(www.JohnWOrr.com) is Realtracs.  Realtracs is our MLS system for the complete Middle Tennesee area and actually includes parts of Kentucky and Alabama.  We have created a public access site for up to date information at www.realtracs.com.   Most larger MLS systems across the country have similar sites, for example in West Tennessee you can go to www.cwtar.com and search numerous counties in that area.  Let me know if you need help finding another system out of town or out of state.

Other great sites for homes are www.coldwellbanker.com, www.realtor.com, www.zillow.com, and also some of the major web search engines have their own real estate sections.  Here is the key though…as Realtors in the MLS we enter our data into the Realtracs system…it in turn feeds all the other web portals both locally and nationally.  For the most up to date information use the Realtracs site.

A few tips on searching, agents sometimes will change a status in MLS(Realtracs) to Active-inspection, active-financing etc, and to the public the property appears to be just Active…so you dont get to see the background as members do.  Another reason to give me a call.  I can email you more detailed information about a property.

Hope the tips help and if you need any professional assistance….JUST CALL JOHN!  Happy house hunting!

Sales Drop!! May Sales Comparison Coffee County, TN

Well the market has shifted to the downside some more in 2011 versus same period in 2010.

Year to date residential sales(MLS) in Coffee County in 2011 were 159 versus 207 for the same period in 2010.  The average price of a home in Coffee County did increase from $118,821 to $128,538.  This in part was due to the tax credit in 2010 that was geared for first time homebuyers in 2010.  The Median price also increased from $102,900 to $117,500 in 2011.  Average days on market increased from 108 to 155, but due to some homes being relisted as new listings will tend to skew the average days on market statistic.  The average number of homes on the market per day did decrease from 490 to 440 homes.  Based on the current level of sales versus inventory, Coffee County has approximately a 14.6 month supply of homes.

May over May residential sales(MLS) Coffee County in 2011 were 30 versus 49 for the same period in 2010.  The average price of a home in Coffee County decreased from $138,925 to $120,355.    The Median price remained flat at $117,500.  Average days on market increased from 100 to 146.  The average number of homes on the market per day did decrease from 510 to 462 homes.  Based on the current level of pending listings, Coffee County has approximately a 11.2 month supply of homes.

It is still safe to say that the area is experiencing extremely slow growth at this current point of time in the year.  Typically real estate sales begin to pick up in the March-Sept months and trend downward through the remaining months.  School sessions, holidays, and corporate relocations also impact the market.

With the current absorption rate in excess of 6 months the market is still in favor of buyers.  Low interest rates also are helping those that are refinancing or purchasing at this time.  Activity does seem to be increasing slighty from my perspective, but nowhere near the levels we have seen in the past.

One of the biggest misconceptions that sellers now have is that what they paid for the home affects the value.  Too often at closings I am seeing sellers coming to the table with more money than the buyers.  There are many reasons for this, one the market shifted(depreciated), sellers refinanced(cashed out), and demand for larger homes has diminished.  It is hard to say what the actual impact each seller faces, as I dont know what is really included in the mortgage payoff.  Is it the house, a boat, a car, education, other debts, or some consolidation of all.

What do you do if a Seller? Basically you have 3 options. 1. Stay put. 2. Take the loss. 3. Short Sale/Foreclosure.  The last affects the credit worthiness of the individual and and can have further implications for the seller.  Prior to the final choice, consult with a tax advisor or an attorney.  In some cases mortgage companies will work with the individual on restructing the loan(loan modification).  Each individual is different, so seek further advice.  If you HAVE to sell, the one benefit is that you become the buyer in a favorable market.

What to do if your a Buyer?  Take advantage of the market conditions.  It may be a few years before the real estate market rebounds completely, I have no crystal ball for sure.  Once the market does correct, and it always has(so far), interest rates will increase, supply will begin to decrease, and housing prices will increase.  If you are renting now, you are buying…just not for yourself but your landlord.  Get pre-qualified to see where you stand.  Remember that real estate is a long term investment not a short term investment.

One source to search local area homes for sale is the public access site to the regional MLS(Multiple Listing Service) www.realtracs.com

Visit my site at www.JohnWOrr.com to sign up for your own personal real estate portal, or email me your home criteria and I can automatically keep you abreast of the market.

Whether buying or selling, or just want more information about real estate…”Just Call John”!

Figures are compiled from the Middle Tennessee MLS system, through May 2011. Source: Realtracs, Inc.

How much earnest money?

Often I am asked how much earnest money should I put down?  The answer varies from location to location.  Some sellers look at the amount of earnest money as truly how interested you are in their property.  Typically in this area of Middle Tennessee, most buyer put up a minimum of $500 to $1000, but have seen upwards to $10,000.  It is a negotiable item that sellers can come back and request more earnest money while negotiating the contract.

I have seen sellers that had multiple offers on properties accept a lower priced offer that had more earnest money than a competing offer.  So a good rule to follow is put as much down as you can, it may make all the difference in the world.

For all your real estate needs, Just call John! 931-434-6242

Some Local Statistics YTD vs 2009

Well it seems that 2010 is just a tad over what occured in the first 4  months of 2009.  Residential sales in Coffee County based on MTRMLS, (as of 4/23/2010) were 266 units versus 256 in 2009.  What is apparent is that the tax credit, which is due to expire in one week, has created demand for some first time homebuyers.  The average price in the county decreased from $124,001 to $116,302, while days on market was unchanged mostly at 113 days.

When we look at Manchester(37355) 124 units have closed to date with an average price of $119,851 and days on market 109.  This compares with last years average price of $127,483 and unit sales of 140.   The growth of retail as well as well as convenience to major markets has helped the Manchester market over several years.

Tullahoma(37388) has so far this year closed 98 units with an average price of $106,257 versus 90 units in 2009 with an average price of $125,536.  Once again days on market for those that have closed is holding steady at 113.

Winchester unit sales reached 43 with an average price of $161,931 versus 32 units in 2009 with an average price of $157,520.  Days on market for both years were slightly over 130.  When we look at Franklin County as a whole, unit sales were 79 with average price of $149,431 versus 66 units in 2009 with an average price of $130, 056.  Average days increased from 136 to 155 in 2010.

Both markets average price has been affected by REO(Real Estate Owned transfers) at lower then typical market prices.  Liquidating property off the books for Fannie Mae, Freddie Mac, and other lenders has led prices downward.  Once the abundance of these properties are absorbed by the market, I expect that prices will gradually rebound in the Coffee County area.  Home prices typcially in the area don’t appreciate at double digit levels, so any losses will eliminated over a longer period of time then more active markets.  Real estate is all about supply and demand and currently the Coffee County area is high in supply.  Currently the county has approximately a 16 month supply of homes on the market.  A typical sellers market is in the 6 to 8 month range.

A strong reminder that the tax credit of $8000 or 10% applies for first-time homebuyers only unitl April 30th, 2010.  Purchasers must be under contract by that date and close by June 30th.  Existing homeowners who have lived in their home 5 out of last 8 years can qualify for  up to $6,500, with certain restrictions on both groups of buyers.   If you are active military and have served in some areas you may be entitled to an extension, check with your CPA or tax provider as soon as possible.

Coldwell Banker plans on launching a new seller program to help sellers attract the buyers that missed out on the tax credit.  Look for more details on May 1st.  Participating sellers stand to gain a competitive advantage over other properties.

I want to say that I am glad to be back in the area, and look forward to working with buyers and sellers to achieve their goals.  Real Estate has been a tough market over the last several years, and although we are seeing the light at the end of the tunnel it still has a long way to go.  I encourage you to call me with all your real estate questions or concerns.  I adopted “Just Call John” as my slogan, because I want to be your one stop shop for any and all real estate needs.

Next post will be on the advantages of getting prequalified for your loan before you start the home search process.  Have a great week.

Back at Work

Just got back into the office after a nice wedding and honeymoon in Vegas, and am ready to start selling some real estate. Look for something new when the tax credit run out from Coldwell Banker. Under contract by April 30th so lots of time to find the dream home, or one that will make you money in the long run. Call me at Coldwell Banker, Snow and Wall in Murfreesboro. 615-893-1130 or cell at 931-434-6242.