VOL. 36 | NO. 27 | Friday, July 6, 2012
It's hard to get a foot in the door with some properties
Even in the current frenzied real estate market – filled with multiple-offer scenarios with houses sometimes going for $90,000 more than list price before the clock strikes midnight on their first day of exposure – there are houses that do not sell. Many of those aren’t receiving offers, and some are never shown.
More often than not, these properties are being spurned because they are overpriced, but accessibility and curb appeal often play roles in the process. If the grounds and exterior are unkempt, chances are the buyers will never cross the threshold. And it’s surprising how many thresholds are barred in one way or another.
In many cases, renters are the culprits. When rental properties go on the market, it usually spells trouble for the seller since there is no more unincentivized category than that of the renter. While sellers view showings as opportunities, renters view them as annoyances, interruptions and invasions.
In my experience, having renters on hand during the marketing of the properties diminishes the sale price by an amount more than the income received from the tenants.
Some barriers to entry are simply baffling. It is almost impossible to show some properties, yet the owners who impose these restrictions cannot understand why buyers and agents aren’t appearing at times convenient to the seller.
533 Jackson Boulevard
The best strategy is for the owner to agree that the home can be shown at any time any agent requests. It only takes one to sell it. The appointment denied could have been that buyer. And don’t forget to make your bed.
Sales of the Week
This week’s featured sales focuses on upper-end properties in Williamson and Davidson counties.
In Davidson, the sale occurred on 533 Jackson Boulevard on a home listed by the mother/daughter-in-law team of Betty and Elaine Finucane of Fridrich and Clark Realty.
The property sold for $2,150,000 in 86 days, having been listed for $2.7 million. Amy Smith of French, Christianson, Patterson & Associates represented the buyer of this 7,275-square-foot stucco home situated on 1.8 acres in the heart of Belle Meade. The seller had paid $1.4 million for the home in 2005.
This was one of four single-family homes to sell in Davidson County for more than $1 million last week, while Williamson County had two. One such sale was 3301 Running Springs Court, which went for $1.55 million after having been on the market for 103 days.
3301 Running Springs Court
This home has 5,571 square feet of living space in the main structure and an additional 2,414 square feet in an out building. It was listed by Tim Thompson of Tim Thompson Premier Realtors. Bernie Galleriano of ReMax Choice Properties delivered the buyer to the home, which sold for $1.2 million in 2009.
So both homes appreciated during the ownership of the sellers.
These closings bring the total for high-end ($1 million or more) sales in 2012 to 60 in Davidson County, of which 12 were condominiums. Williamson County had 53 high-end sales, all of which were single-family homes.
So, the two counties combined for 113 high-end sales. This is the first time that midyear sales of more than $1 million have totaled 100 units or more since 2008, when there were 109.
The 12 condo sales are the most of more than $1 million at midyear in the area’s history. There were two at midyear in 2011, 2010 and 2009, and one in 2008 and 2007. Interestingly, there have only been 27 condominiums ever sold in Davidson for more than $1 million.
In summary, a market that did not exist – $1 million condominiums – 10 years ago now represents 20 percent of the upper-end sales in Davidson County. Williamson County, conversely, has never registered the sale of a $1 million condominium.
From an inventory standpoint, there are five condos on the market with a price tag of $1 million or more, with three pending and the aforementioned 12 sales. This translates to a 2.5-month supply, while single-family homes in that range have an 18-month supply in Davidson County and a 19-month supply in Williamson.
It would seem that with the shortage of million-dollar condos in Nashville, developers would be building more units. The only problem is they have to build 13 to 32 floors of lower-end condos beneath them.
Richard Courtney is a real estate broker with French, Christianson, Patterson, and Associates and can be reached at [email protected].