Happy Thanksgiving Nashville

Happy Thanksgiving in Nashville

This time of the year is always so hectic, tons of traveling, family reunions, black Friday shopping and trying to keep Dad off the sauce long enough to make it through desert (he loves Turkey Day). I wanted to take a second to tell everyone who takes the time to read my blog thank you very much and have a wonderful Thanksgiving. If there is ever a topic I can research or anything I can do for you, please do not hesitate to ask.

Happy Thanksgiving in Nashville

Encore Condos in Nashville: Pricing Trend

Prices in Encore Condos Nashville

encore condo building nashvilleThe Encore is a 333 unit, 20 story high-rise condominium building located in a pocket of downtown Nashville called SoBro (South of Broadway). The building delivered in February of 2008 in the face of the greatest economic downturn since the Savings and Loan crisis. Many wondered if the building could survive, if the developers could trudge through without losing their shirt. Some still look towards this glass behemoth and mistakenly imagine there must be distress. The condo vultures (my term of endearment for my clients who love to buy a good condo deal) have circled and lobbed offers down to the sales team, only to have them batted back at us.

The developer is down to their last 12 condos in the building, 11 one bedroom floor plans of varying size and 1 two bedroom floor plan. I am here to tell you that their asking prices are pretty firm, but they are offering a valuable incentive package to the last 12 condo buyers.

– 1 parking space per bedroom included (value $8,000)
– All appliances including the refrigerator, washer and dryer (value $2,700)
– $2,000 California closets credit
– $4,000 seller paid closing costs
– 6 months of seller paid HOA dues (value +/- $4,000)

Average Prices in the Encore Since 2008

Prices in Encore Condos Nashville

The numbers never lie. There was a time one could “steal” a condo in the Encore with regularity and as I accurately stated in 2009, that was the year to purchase. Anyone could walk into the sales center and negotiate a very good deal. Those days are over. If you are considering a purchase in the Encore, you need an experienced negotiator who has access to not only the 12 remaining developer condos, but also to dozens of pocket listings in the building. You need the most successful outside sales condo broker in the history of Nashville…you need me.

Where are the Condo Steals Now?

There are two options at the moment. Cadence Bank has foreclosed on 16 developer owned condos in the Rhythm at Music Row. They have sold 10 of those condos, leaving 6 vulnerable to your offers. 5 remaining condos are 1 bedroom floor plans, 1 is a two bedroom. Current asking prices range from $209,000 to $269,900, but the bank is accepting offers less than the asking price. For instance, the last sale was listed for $229,000 and closed for $210,000.

Your other option is the 5th & Main development by the Titan’s Stadium in East Nashville. This 129 unit development was recently bought out of foreclosure by ACG Equities and dramatically re-priced. When I say dramatically, I mean it. The current pricing of $135-$155 per foot is even below replacement cost. I find comfort in the fact that you can buy a condo for less than what a new one could be built.

Time to Lower Your Nashville Property Taxes

Davidson County Property Taxes

Davidson County Property TaxesIt’s that time again. No, not time for your annual pre-holiday panic, but time to potentially save some dough on taxes by requesting a new appraisal for your Davidson County property. You have until the end of the year to request a review of your current property appraisal for the 2012 tax year. The Davidson County Assessor of Property makes it easy to request a reappraisal by giving you 3 avenues to inquire.

Request Your Davidson County Tax Reassessment

1. Request a review online: http://www.padctn.com/forms.htm
2. Request a review via phone by calling (615) 862-6083 between 8:00 a.m. and 4:00 p.m. M-F
3. Request a review in person by visiting their office at 700 2nd Avenue S, Suite 210, between 8:00 a.m. and 4:30 p.m. M-F

Who Should Request a New Appraisal

When the economy is faltering it’s time to scrutinize your property tax bill – it’s no secret that many Davidson County properties have lost value since their peak in 2006/2007. If you are an individual who has not requested a new appraisal since that time, you certainly are a prime candidate for a reduction in value. This reduction in appraised value will directly correlate to a reduction in your property taxes paid. If you are an individual who bought a pre-construction condo in downtown Nashville, you are also a prime candidate for a reduction.

An important aside: The Tax Collector collects property taxes that fund the activities of government for the county, including the school system. The Tax Collector does not determine how much to collect. The County Assessor determines the value of a parcel and gives the value information to the County Auditor-Controller, who applies the tax rates and special assessments to the tax bill. The Auditor-Controller then charges the Tax Collector with the collection of the tax bill.

Broker Price Opinion

If you are considering selling your property, I am more than happy to calculate your current market value utilizing my proprietary data analysis. Please be patient as this page loads: http://www.granthammond.com/calculate-home-value/

Fifth and Main Auction Results and Review

Fifth and Main Townhomes

It was either a raving success or a necessary success, depending upon whether you were an auction buyer or you were ACG Equities, the seller.

23 condos sold at varying discounts during the auction, 2 more sold in the minutes following the final gavel bang. When the dust settled, ACG Equities met their pre-auction goal to sell 25 condos – 19 to new owner occupants and 6 to investors. The benchmark of selling 25 condos was not a number pulled from thin air, it was the number of condos required to be sold in order to meet the project’s conditional FHA approval. The Federal Housing Administration requires at least 30% of 129 condos in the project to be either sold or under contract in order to qualify for the program.

Condos Sold at the Auction

Fifth and Main Auction Results

5th & Main Condo Auction Blow by Blow

The auction was held at the downtown Nashville Sheraton Hotel on Saturday at 1:00pm. Bidders began to arrive as early as an hour prior to auction time and numbered nearly 100 by the time of the auction. The very first condo auctioned was a primo 755 square foot 1 bedroom unit complete with panoramic views of the Nashville skyline. The bidding was fast, furious and frantic. When the gavel dropped, the first condo sold after more than 15 bids for $145,000 or $192.05 per square foot. It would be the highest price per square foot achieved all day.

The next 11 condos auctioned were all 1 bedroom units with views that varied between the Nashville skyline and the lush courtyard in the center of the property. With the sale of each successive condo the number of bidders began to fade and prices followed suit, falling from a high of $192.05 per foot to a low of $126.95 per foot. Sensing the momentum in the room, the auctioneers moved on to the premier 2 bedroom condos in the building, but the bidding was guarded. The next 9 sales oscillated between $116.16 and $147.88 per foot with 4 of the condos selling at the minimum bid price.

Once again, the auctioneers sensed the room deflating and moved on to auction the townhouses. At this point, 21 condos have sold and ACG Equities is very close to completing their goal of selling 25 units. If they did not have to sell 25 condos in order to meet their FHA conditional approval for financing purposes, they probably would have stopped the auction by now. Alas, they needed 4 more sales and thus the show must go on. Not long after the auctioneer began to auction the first townhome, it was clear this was going to be an uphill battle. Bidding was non-existent until an investor stepped in with the only bid, the minimum bid, and snapped up two half price townhouses back to back.

The auctioneers quickly jumped back to auction additional condos, but it was too late, the momentum was gone, Harry Potter had lost his magic wand and no bidders surfaced for the final 5 condos.

Recommendations for Buyers Moving Forward

It would appear as though there is a small window for new buyers to purchase Fifth & Main condos at auction prices. If the aftermath of the Terrazzo auction 2 years ago is any lesson, prices will begin a slow, methodical rise as this development sells out over the next 12 to 18 months. Now that 5th & Main buyers will have the ability to utilize FHA backed mortgages, I can confidently say these condos are a solid buy.

My sense is that East Nashville will regain critical momentum over the next several years, culminating in a probable resale window of 5-8 years from today for maximum profitability. There are several boutique developments in the planning stages along Main Street and Woodland Street that will greatly affect area values. Several are mixed use in nature.

I am more than happy to assist new buyers in determining which remaining condos are the best short and long term investments. I also have a more in-depth analysis that I will gladly share with my clients.

Please call or text 615-945-7123 or email 5&M@granthammond.com for information

Players Involved in the Auction and Grades

Chicago based ACG Equities, who acquired 5th & Main in late February 2011 retained Boston based, IMPACT Real Estate Solutions to create a comprehensive sales, marketing and auction strategy. Hudgins Auctions and Realty was retained to call the auction itself.

The marketing for the 5th & Main auction seemed to be omnipresent. Every time I turned around I saw another billboard or newspaper ad or Internet pay per click or something that pointed me back to the sale. The campaign assembled by IMPACT Real Estate Solutions was like a summer cold I could not shake. My final grade is an A.

The auctioneers on the day of sale looked the part, but aside from the lead auctioneer, I was not overly impressed. A few gave me that “I’ll be auctioning off farm equipment tomorrow” vibe instead of the “I’ll be auctioning off mansions and estate properties tomorrow” vibe. Somehow I wanted all of them to be as credible as the lead auctioneer. My final grade is a B.

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