Presence, Persistence, Patience – the three Ps of Real Estate

Anything will sell if it is properly priced. This concept was taught to me by the fabulous Bobbie Noreen, the broker who taught me almost everything I know about the real estate business. Truer words were never spoken – and these days they are coming home to roost with every buyer out there. The Nashville market has lost its mind again. Everything sells, seemingly in a matter of hours, not days.
 
Last year, I worked with 14 buyer clients, and I’m working six more right now. There has been some rough sledding trying to get to a deal on the right house for what looks like a reasonable price – and it seems to be getting rougher. Fast action, strong offers, and sharp elbows are required.
 
So, lately I’ve been thinking about the Three Ps. Presence, Persistence, and Patience – as essential for success in real estate as they are in the rest of life. And these days, perhaps especially essential for buying Nashville real estate.

Presence
You have to show up. These deals aren’t going to land themselves. Both realtor and client have to be in the hunt. My inbox loads up every morning at 5:00 with new MLS listings based on what my clients are looking for. And my clients are sending me listings as well. We are present and in it together – always looking, ready to bust a move. In this market, snooze and you lose.
 
Persistence
You can’t give up. As daunting as it may be to lose out four times in as many months amid multiple-offer pile-ups (this happened to clients last year) you have to keep going. Sometimes pulling back for a breather is in order (I have clients doing this now, lest they get brain damage) but eventually you have to get back into it. And stick with it until you get what you want.
 
Patience
And of course, doing one’s best not to get crazy while all this is going on is also a required effort – as true for me as for my clients. Impatience not only brings negative energy to the process, it can also lead to the pursuit of a bad deal just to get it over with. Not wise. Keep calm and carry on.
 
The good news is that with the dedicated application of the Three Ps, success will almost always come. It can be a long road, but you will get there.

Happy 2020. What’s going to happen next?

We’ve got a whole new year on our hands. And in the first weeks of a new year, I’m usually reminded of the old French maxim, plus ça change plus c'est la meme chose. 

It applies to real estate – as it does to the rest of life – in several ways. We are always anxious to know what’s coming down the pike, we always make predictions, and we are always at least partially wrong. The more things change, the more they stay the same.
 
In the spirit of public service (we realtors live to serve) I’ll throw out a few thoughts and maybe 12 months from now we’ll look back and see how well I did.

Good News on interest rates
Current rates on a 30-year fixed are under 4% and, while they will float up and down a bit, all predictions are that they will stay there. Good news for buyers because their money goes farther. Good news for sellers, too, because more buyers are in the market. 

Mixed news on inventory
Nationally new housing starts are up significantly from where they were a year ago. Good news for easing price increases because increased supply usually lowers upward pressure on prices. But Nashville is still growing very rapidly and everybody needs a place to live, so I don’t see a slow down here any time soon. Working with buyers this month, I’m already encountering multiple-offer-madness that I expected to see in the spring.

Mixed news on prices
See above. Prices will continue to rise here, and probably more quickly than state and regional average increases, which seem to be slowing. Good news for sellers. Not so good for buyers – even with those attractive interest rates.
 
Bad News on traffic
Sad to say this, but despite the anticipated completion of the I-440 renovation in August, it ain’t getting better any time soon, folks. It’s likely to get worse. But you already knew this, right? Best to take my approach. Relax and leave earlier. And when everything grinds to a halt ahead of you, breathe deeply and count your blessings. One of which is that we live in Nashville, a lively growing community with a lot of good things to offer. And that would include a good many excellent realtors. 
 
In case you wondered, I’m an excellent realtor. 

Gifts of the Season

It’s the holiday season again. When it seems like maybe everyone has gone crazy – decorating, buying, buying some more, wrapping, toasting, going to parties, going into debt, gaining weight, getting snarled up in mall traffic …
 
I also try to make it a time to slow down and think things through. Look back, look ahead, and be grateful for all that I have. Life’s not perfect – ever. But when I look with an open mind, there is always more to be grateful for than it seems when I’m standing in a long checkout line at Target.
 
This season – indeed all of life – is full of gifts. Here are just a few I’ve been thinking about lately …

Residential Real Estate
Wow! What a great business! What a great job! I get to run around all over this hopping town, looking at houses and condos, working with interesting people – clients, other realtors, developers, designers – helping clients get what they want, where and when they want it. Best job I’ve ever had. What a gift!
 
Boom Town
This town is on fire! What an exciting time to live and work in Nashville! I’ve lived here 43 years, and in that time – especially the last 10 years – I’ve watched Nashville grow from a sleepy, provincial town into a vibrant forward-looking city.  I know – we are all tired of the scooters and pedal taverns. And the tall-skinnies are far too numerous. But does anyone seriously want to go back to our past? Today’s Nashville is a gift.
 
Low Interest Rates
Historically low rates make buying easier for everyone at every budget level. They make my job easier, and my clients – both buyers and sellers – happier because at these rates, deals happen that wouldn’t happen otherwise. Everybody wins. Love these rates! A gift from the marketplace.
 
Robert G.
Robert G. is my Contributor salesman. I wrote about him in my June newsletter this year. I see him most mornings at the Church Street/I-65 exit ramp, and he continues to boost my life with his cheerfulness, positive attitude, gratitude for what he has, and sly humor. He reminds me to be grateful. He is a gift.
 
Everyone Else
Family, friends, clients, fellow realtors, people who read this email. I am surrounded by some of the best people this earth has to offer. Each one is a gift, and I am grateful for all.

So, let’s talk mortgage

As of this morning the rate for a 30-year fixed rate conventional mortgage is 3.75% (APR 3.826). A 15-year fixed rate is 3.25% (APR 3.38). This can vary with specific situations of course, but the general idea is this: money is really cheap these days. Now is a great time to get a loan and buy a house. 
 
That said, not all mortgages are created equal. In fact, they can be very unequal, and there are scenarios you need to avoid.

On-line Lenders
I’ll not mention names here, but I think you can figure it out. The concept: go on-line and get a loan without even having to put on shoes and leave the house. Easy-peasy! Just a few clicks and you’ve got a mortgage! Well, folks, it’s never that easy. There are always issues that need to be ironed out. And when that happens, you need a bit more help than you can get from someone in a cube farm looking at your account on a screen for the very first time. You need a local expert, who knows you, knows the market, and can work creatively to get the job done. I’ve had three experiences with borrowers using on-line lenders. All three were a mess.
 
Big Bank Lenders
Maybe not as scary as the on-line type, maybe, but still … just don’t!  In this case the problem is bureaucracy – death by committee. Too many layers, and not enough accountability vested in one person. Everything happens in slo-mo. Again, a local mortgage company (non-banking) can generally do a better, less expensive job, and can act faster than a bank in the case of a glitch. 
 
So, what to do?
Consult with your realtor – I’d be a good choice! – and get a recommendation for one or more local lenders – someone you can walk in, sit down, and talk to – who work for a mortgage company (not a bank). Mortgage companies are set up to do nothing but make mortgage loans. They’ve got local presence, a ton of expertise, and an absence of bureaucracy. In my experience, they almost always do better – cost-wise and process-wise.
 

Scary Stuff

Buying or selling a house is a big deal. It usually involves fairly intense emotions and it always involves a lot of money. If things don’t go right, it can get really terrifying. A realtor’s job is to be a buffer and take the fear out of the process – handling slowdowns, rough spots, and u-turns that can come up along the path to closing. But it can get scary at times. Even for me.

In honor of the Halloween season, a few examples of things that make real estate transactions scary.  

BOO!

Lousy Lenders
All lenders are not created equal. Beware of on-line lenders and big banks. They can make things scary. When a problem pops up along the way (and something quite often does) or if you have special circumstances, you need focused attention and personal service. On-line you’re at the mercy of someone in a cube farm who has never met you and may be looking at your case for the very first time when you call in. Big bank lenders usually have layers of bureaucracy that can slow things down and screw things up. Decisions are often made by someone other than whom you’ve been dealing with. Stick with a local lender at a mortgage lending company and you can avoid a lot of scary surprises.
 
Non-permitted Repairs
I’m sure we all know someone who’s just great with tools. “Loving hands at home” is a nice concept in theory and sometimes in actual practice. But when it comes to renovations, it’s always best to stick with the pros. One thing pros do is apply for the proper permits to do the work. When I see additions and obvious modifications to a house, I generally advise my buyer clients to check on building permits. If they don’t exist, it might be time to back away and look at another house. Who knows what could be lurking beneath that new siding? Or underneath that added storage room? Or in that electrical panel box … Yikes!
            
Shared Driveways. And other shared things …
Here’s a recipe for conflict: try sharing a driveway with your next-door neighbor. This can work – for decades, even. But if one party doesn’t play by the rules, the arrangement can become a disaster overnight. It’s all fine … until it isn’t. In one situation I know, neighbors sharing a driveway in the Whitland area came to blows and one of them drove stakes down the middle of the drive, preventing either party from using it. This is a major reason reason I generally don’t show attached HPRs. The potential for conflict is absolutely ominous. 
 
Always remember that good realtor will help keep the spooky stuff at bay.