Deadline to Challenge Davidson County Property Taxes

Davidson County Property Taxes

The deadline to challenge your Davidson County property assessment is Friday April 20th at 4:30pm. If you do not challenge your property assessment by this deadline, you WILL NOT be able to seek a reduction until next year!

Step #1: Check your new 2011 property tax assessment (click on image below)

Search the Nashville Tax Record

Step #2: Locate your property and click on the record

Step #3: Review your tax record. Most importantly, look down to the “Current Property Appraisal” section and find the “Total Value”. This is the amount on which your 2012 property taxes will be calculated.

Step #4: Click on “Previous Appraisal” in the submenu in the top navigation bar

Davidson County TN Tax Record

Step #5: Compare your current appraisal with the previous period

Previous Appraisal Record

Step #6: Determine if you should challenge your tax value assessment. If there is a large difference in your 2011 assessment over your 2009 assessment or if you know the 2011 assessed value to be higher than recent sales in your neighborhood, challenge your assessed value with the Davidson County Tax Assessor’s office immediately. To challenge your assessment, follow the steps outlined in the article I wrote last November.

Who Should Challenge Their Tax Assessment?

While there is no blanket answer, everyone should check their 2011 property assessment to see if a case can be made for a challenge. I have identified pockets of owners who should challenge their tax assessment immediately: owners of luxury homes in Green Hills and Forest Hills over 4,000 square feet should consider challenging. I spot checked several homes that I own in those areas and 3 of them were over assessed. I also found a few over assessments in Hillwood.

Update 4/18/12

This afternoon I received a call from a principle with ACG Equities, the owner/seller of the 5th & Main condos in East Nashville. He explained that ACG took the initiative to challenge all 129 tax assessments as soon as they became aware of the 2011 assessments. I applaud ACG’s actions and can only hope that Pollack Partners follows suit for the Velocity. No word from anyone with Pollack yet.

Please pass this article along to your friends, family, neighbors and clients.

The Encore Condos in Downtown Nashville Sold Out

Encore Condos Retail Space

Encore condos in Nashville
Less than 2 months after the trendy Music Row Rhythm condos sold out, the Encore becomes the latest high-rise condo development to join the growing list of sold out developments. The 333 unit development, built in partnership between the Novare Group of Atlanta and Tony Giarratana of Nashville, broke ground in mid 2006 and was completed in the second quarter of 2008. In that first year of operation, 214 condos closed (64.26%) at an average price of $301.55 per square foot. As the economy grew weaker, so did the sales volume and pricing in the Encore reaching an all time low of 26 condos sold in 2010 (22 developer owned, 4 private resales). In 2011, the Encore turned the volume corner, but the developer allowed prices to slip to their lowest point by selling 36 condos (26 developer owned and 10 private resales) at an average price of $252.72 per square foot. Contributing to the 2011 price weakness is the fact that half of the resales were distressed sales.

Finite Supply Will Lead to Higher Condo Prices

Now that the developers have zero condos left to sell, true market forces will return to the Encore. Currently, there are 15 resale opportunities listed on the MLS which represents only 4.5% of the entire building. Of those 15 condos, 4 are MDHA income restricted condos leaving 11 market value resales. Of those 11 resales, 3 are currently under contract with another 2 working offers. Moreover, with an average asking price of $293.06, prices have already begun to increase rather significantly. Granted, the final sales price will not be as high as the average listing price, but it is clear that a finite supply of condos in the Encore will result in prices that will soon approach and surpass 2008 highs.

Encore Condos for Sale

Encore Gains Multiple Retail Tenants

It has been several months since celebrated chef Deb Paquette announced her latest venture called Echo (now named Etch) in the Encore, but there are also two more restaurant/coffee tenants readying to make similar announcements. While I am not at liberty to name these tenants directly I can describe one as a high end sushi restaurant that features a rather large and trendy bar. This restaurant will be located next to Etch and be similar in size. The other tenant can be described as a successful local coffee and deli provider who is opening another location. There is no doubt that the impending completion of the billion dollar convention center and hotel complex will contribute to increased retail space leasing activity which in turn leads to an enhanced living experience in the Encore.

Advice and Recommendations

As a condo owner in the Encore and a broker who has represented more than 40 clients in the building, I am in the unique position of being the all time leading outside sales leader as well as an Encore insider. I have crunched the numbers and can steadfastly predict an increase in Encore condo prices over the next 2 years. Buyers who have been on the fence about a purchase in the Encore should have a sense of urgency. Sellers who are considering selling their condo, especially those on higher floors, need to understand the defined finite supply of condos and consider raising their asking prices to match the market. There are no new condo buildings under construction in Nashville and only the Laurel in the Gulch is planned to break ground at some point later this year.

Should you or someone you know be considering making a purchase or selling their condo in the Encore, please contact me. Having sold over 250 condos since 2006, I am the most successful condo broker in Nashville. Put my 10 years of experience to work for you and let me guide you to the most successful and profitable transaction possible.

Grant Hammond, Broker, ABR, SFR, ePRO
Call or Text: 615-945-7123
Encore@GrantHammond.com
View Available Condos

encore condo building nashville

Navigate back to my downtown Nashville condos home page to see additional articles I have written.

Future Home Demand in Nashville Jumps, Significantly

nashville-market-demand

Realizing that predicting the real estate market is a dangerous enterprise at best, I feel confident in the simple science behind my prediction that future Nashville home demand will jump significantly in 2012. Before I explain why, let me first explain how I build the total demand curve. I define total demand as the number of homes purchased in a particular month plus the number of pending home sales reported in that same month (some have included the number of residential building permits issued as well, but for the purposes of modeling an actual demand, not a confidence factor, I prefer to keep my curve based purely on the demand side). In my opinion, actual sales and pending sales added together give a real time look into the future health of the market, but rooted in reality. Think of the actual sales figure as the anchor that helps stabilize the sometimes unwieldy predictive value of the pending homes figure. Further, understanding that seasonality plays a role in the Nashville market, I have broken the “demand season” into several separate segments.

Nashville Real Estate Market Demand

As you may have noticed, I have purposefully left out mortgage rates as I believe rates and affordability, to a great extent, will have no bearing upon new purchases for the balance of 2012. For the micro economists out there, yes I realize that it is impossible to hold all other factors constant to specifically measure pure demand in a market as complex as real estate, but bear with me as I strip down purchase demand into its purest state.

For the past 9 years, the average total demand has increased 10.94% between the months on March and June with June being the peak of seasonal total demand. If that same trend were to hold true, the total demand in June 2012 would rise to roughly 4,500 homes. This is a level last achieved in April 2010. If you recall, this was also the period in which the Government back first-time homebuyer credit expired creating an artificial demand. Having already achieved a total demand greater than any month in 2011, it is my conclusion that the Nashville real estate market demand has not only recovered, but may see significant price increases within the next 18 months.

Looking at the More Recent Demand Trend

When we strip out the 2 years of governmental meddling as well as 2003 and 2004 and only consider the 5 most recent years of pure market forces, the average total demand has increased 13.78% between the months of March and June. This more realistic view would predict a demand of almost 4,600 homes, a level not seen since the seasonal highs in 2008. More importantly, this level of demand is similar to what was achieved in the first quarters of both 2004 and 2005. While it is too soon to predict the next boom, I do feel that Nashville is firmly entrenched in a steady recovery that will lead to price increases.

Adding to the strength of the recovery is the fact that the Millennial generation (born between 1980 and 2005) has been graduating from college and graduate school for several years. This is significant as the Millennial generation, sometimes called Echo Boomers are the largest generation of Americans, ever. Millennials are 1.3 times larger than the Baby Boomers and over 3 times larger than Generation X, my generation. Millennials have many of the same values as their parents with home ownership being a focus and main definition of their self worth. It stands to reason that as this generation comes of age, so shall the real estate recovery.

Nashville Market Gains Confidence

In speaking with several colleagues at REBAR last week, almost all report the number of multiple-offer situations and “bidding wars” having increased significantly in recent months. Moreover, 8 out of 10 polled Realtors reported an increased confidence among their buyers and 7 out of 10 reported an increased confidence among their sellers.

Further, having the confidence that mortgage rates will remain relatively low through late 2014 due to the Central Bank’s decision to hold short-term interest rates near zero for the next 28 months, has set the stage for a 28 month purchase window. Buyers are certainly not in a rush, but most now operate with the understanding that purchasing a home within the next two years represents their best chance at optimizing the affordability factor. However, as many begin to see increased pricing in the more desirable areas of Nashville, many will pull the trigger in 2012 to further optimize that transaction. Areas like 12th South, Green Hills, Vanderbilt and the Gulch have already seen significant price gains in the past year.

Work with Grant Hammond

I have a true passion for real estate. Each transaction becomes personal and every deal is negotiated as if it were my own. I would never advise one of my clients sign a purchase or a sale I did not believe in. Many of my clients describe my real estate practice as professional, thorough, and detailed oriented and some have even called me anal and slightly obsessive. I feel all are compliments. But, the one trait I possess that very few agents have is the ability to walk away from a deal. In that I mean, I am financially in a position that allows me to advise my clients to walk away from a deal that is not perfect and continue looking for the best property or wait for a better offer. It has always been and always will be my goal to put my clients in the best position to succeed.

Grant Hammond, Owner/Broker, ABR, SFR, ePRO
Call or Text: 615-945-7123
Grant@GrantHammond.com

Real Estate Success

Navigate back to my Nashville real estate home page to see additional articles I have authored.

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