Many would-be homebuyers have been chased from the market by higher interest rates. Shari Saba, a senior loan officer with the venerable Mortgage investors Group, a firm that has endured the test of time and has proven its adaptability through the recessions, booms, busts and even market normalcy, says there are various options available that make home ownership available to those potential buyers

As of last week, Saba was offering a 3-2-1 buydown that sets rates for the first year 3.625%, followed by 4.625% the second year, 5.625% the third year and 6.625% in years four through 30.

The lenders are able to hedge the interest rate reduction by charging points on the front end of the mortgage, as they are not offering the once-popular adjustable-rate mortgage.

It is not surprising that Saba would be creative in her lending, as she has been a creative type for most of her life. Known in “M*A*S*H” television show circles as “Nurse Shari,” Saba appeared in some 19 episodes of the popular show including the grand finale which was watched by over 75 million viewers.

Sale of the Week

David Taylor is a brilliant, well-read real estate expert who is constantly researching avenues to provide a better service to his clientele.

1212 Laurel St #402

A broker with Zeitlin Sotheby’s International Realty, the erudite Taylor listed a condominium at 1212 Laurel Street in the development aptly named Twelve Twelve. He had sold the condo to his clients in July 2020 for $770,000 and listed the unit for $1,159,000 in November.

The year 2020 was when prices were spiraling out of control, a phenomenon identified by many as “The Bubble.” Hopefully, those waiting for the so-called bubble to burst are endowed with an abundance of patience, as prices continue to increase in the Greater Nashville market with no signs of slowing.

Taylor’s initial pricing bears evidence to the upward trend, although he felt the price felt was slightly high. In this market, aggressive pricing can prove to be the better form of valor.

The pricing bravado proved to be in vain, even in the current frenzy. With the holidays approaching, the sellers joined Taylor in a price reduction of $40,000 and began marketing the property at $1.159 million.

Taylor, who is a sponge for marketing and advertising strategies, had read several studies suggesting homes close to Starbucks sell faster and for higher prices than those where the distance to the coffee beans is unknown.

When he changed the price, Taylor inserted “Walk to Whole Foods, Starbucks and dog park” into his description of the property. In a recent email, Taylor exclaimed that after the price reduction and the reference to Starbucks “Voila, we went under contract! Was it the pricing? Or was it the venti latte? We’ll never know.”

It was interesting that he listed national chain Whole Foods for shopping rather than the local favorite Turnip Truck, which is in the shadow of the Twelve Twelve building and, for my money, a better shop. But out-of-state buyers know not of Turnip Truck, though they will learn soon after their arrival.

Chances are those relocating to the area comprise a larger percentage of Midtown, Gulch and downtown buyers than locals moving into the Gulch.

In his post-mortem of the sale, David noted that “After 19 days on the market, we reduced the price, and immediately accepted an offer and ultimately closed on January 17 at $1,080,000, or a $310,000 profit or a 40% increase” compared to the 2020 purchase after 3.5 years of ownership.

The condo has two bedrooms with two full bathrooms and 1,470 square feet. Taylor says it’s one of the largest two-bedroom units in the building. A condo that size would garner Starbucks ranking of Grande, surpassing the little-known demi, as well as the mor familiar short and tall units in Starbucks lingo. There are larger condos available in the Twelve Twelve.

This property is a unique corner unit with a wrap-around porch, hardwood floors and concierge service. It was sold by Milly Mundy, the affable, capable and successful Parks agent. She hails from the East Nashville office and is not to be confused with Wendy Monday, whose dog, Tuesday, recently jumped over the rainbow, as they say. Monday and Mundy are with Parks.

The midtown, downtown and Gulch condos are properties that often appeal to those seeking a second home or a place to roost after sports or entertainment events. Those buyers are often immune to interest rate increases, much like the buyers of upper-end homes in Nashville and Williamson County.

There was no bubble, nothing to burst. With apologies to Lewis Grizzard, Lawrence Welk is dead, and the fence sitters don’t feel so good themselves.

Richard Courtney is a licensed real estate broker with Fridrich & Clark Realty, LLC and can be reached at [email protected].