By John Goodman, Red Realty, LLC
If a home is priced correctly in Rutherford County, it is literally selling in days. If the home is in the starter or mid range, I usually have it SOLD almost immediately. We are in the fourth best real estate market in the country, just ahead of Austin, Texas. This is in part due to a lot of people living in Rutherford County but working in Nashville. The cost of living is so much better here. People also choose to live in Rutherford County for our education system. We have such good schools and teachers.
Existing home sales are even hotter because currently, there are not that many new homes being built. This is because there is a shortage of lots on which to build homes. I recently talked with some fellow Realtors and appraisers, and they agree with me that the lack of inventory of new and existing homes is causing more buyers to buy almost too quickly. Then the buyers want to back out of the contract after a home inspection reveals a few small items that need to be fixed. It is almost like the buyer pulls the trigger too quickly because they have lost out on multiple homes. Then after everything slows down, they decide they do not want that particular home after all and back out for almost no reason. We are seeing this time and time again. During the “highest and best offer” situation, buyers bid high. Then once they get the home under contract, they go through a “buyers’ remorse” and want out of the contract.
Another interesting occurrence is low appraisals. We are seeing this a lot more because the appraisers can look at recently sold homes as far back as six months. Yet, that is sometimes a whole different market than the current one (because homes are selling so quickly), and the appraisers need three good comparables or “comps”. The comps that an appraiser uses are very important. If they use low comps, the home will not appraise for the purchase price. Since they can’t use “future comps”, appraisers need homes that have actually closed. We have seen homes that are pending not be a comp, then once the house closes, that sale saves the day for appraisals on multiple homes.
So this is a very good situation for Realtors like me to have a healthy real estate market. The main challenges for buyers and sellers are getting pending home sales through the home inspection period and through the appraisal period. Having a trusted realtor to help you navigate this process is invaluable. Even though this market is presenting a few challenges, it is greatly benefiting our economy. It’s a GREAT time to live in Rutherford County!