Sellers in a frantic real estate market are not likely to accept an offer contingent on the sale of the buyer’s current residence.
Buyers in the past would often make offers with financing contingencies but no mention of the ownership of their current homes. The contract was merely dependent upon the buyers’ ability to secure financing.
But buyers knew they would not qualify for two mortgages, so they would not be obligated to follow through with the deal unless they could sell their current house.
Finally, the Forms Committee of the Tennessee Realtors wised up and inserted the following verbiage: “Unless otherwise stated in this agreement, Buyer represents that this loan is not contingent upon the sale or lease of any other real property.”
Even with this clause in effect, and even though there is a letter from a bank stating that the buyer can buy without the sale of the current residence, many closings are being delayed.
Some are delayed because the lenders assumed the buyers’ current residences would sell and arranged the loan package with the equity from the sale in place. When the sale does not happen, it is a different loan altogether.
When a buyer is a seller, let the seller beware. Sellers should demand mountains of non-refundable earnest money, now known as trust money. The only way to trust a buyer is with plenty of their money.
Sale of the Week
Paula Hinegardner, a name that is consistently found among the top Keller Williams brokers in the Southeast region, recently sold the home at 125 Woodward Hills Place in Brentwood.
At least that is where the postmaster thinks the house is located since the Postal Service has smacked a 37027 ZIP code on the property. Most owners in 37027 have zipped into Williamson County.
But alas, some people at the Metropolitan Zoning Department think otherwise. They feel the house and lot are located in Davidson County, and the school board concurs. That group has decided that any school-age student types in the house should attend either, Percy Priest Elementary, John T. Moore Middle School or Hillsboro Comprehensive High School.
Once the disappointment of no Williamson County schools dissipates, parents should be happy with the opportunity to send their children to some of Metro’s finest. But the name Brentwood does imply Williamson County residency.
Hinegardner’s description of the property in the multiple listing service might have added an ounce or two of fuel to the fire since her description of the property included the phrase “in the Woodward Hills community located in the heart of Brentwood.”
It is undeniable that it is situated in the heart of Davidson County’s Brentwood, which is just across Old Hickory Boulevard from the Williamson version.
Regardless of the county, the house features a Bertazzoni oven, Hinegardner says, along with energy-saving tools and appliances.
There is an integrated network system, a programable thermostat, a tankless water heater and Energy Star appliances, as well as Energy Star windows. For those concerned about the environment, the home was painted with low volatile organic compound paints.
Many of the throngs of people migrating to Nashville every day are relocating from areas where pools are the norm for single family residences. Perhaps due to the ubiquitous limestone deposits, the Nashville and Brentwood areas have few pools per neighborhood, and a community pool is not an acceptable solution for the transplants.
For that reason, perhaps, Hinegardner wisely included a rendering and bid from Encore Custom Pools for this property. A majority of those moving to town want to know at least a ballpark estimate for the installation of a swimming pool. Thanks to Paula and Encore Custom Pools, they have it.
An 18-by-43-foot saltwater pool constructed with 5,000 psi gunite with all of the equipment, an attached spa and a pool house to house the equipment came in at $190,331 with the spa accounting for $35,325 of that amount. The bid included $2,500 for rock excavation with an additional $250.00 per hour if the allotted eight hours was not sufficient to remove all the rock.
Nanci Dahl, who also hails from Keller Williams, delivered the buyer for the 6,943-square-foot house with five bedrooms, five full bathrooms and three half bathrooms. The property sold for $1,675,000, or $241 per square foot, in 85 days after Hinegardner listed it for $1,774,900.
Dahl is the founder of Dahlicious Dahlhouse.com, a website that offers advice on travel, food, fashion, health and beauty.
Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty. Reach him at [email protected].