In a move that has both shocked some people and delighted others, the sellers of the Terrazzo condos in Nashville have decided to extended the auction prices. Although these prices do not currently appear on the MLS, they are available on the Terrazzo’s website and were direct emailed to all of the buyers and agents who participated in last Saturday’s auction.
A lot of people have asked if these sales will bring the entire Nashville condo market down to $225-230/ft prices and are worried that their investments in the surrounding buildings are now irrevocably harmed. I do not think that this is the case, just as it was not the case when the Adelicia gave the last 20 buyers in that project a 25% discount to close out the building out 18 months ago.
However, make no mistake about it, this drastic price drop will have a net present effect on all of the surrounding condos. That effect will diminish the further you travel away from the building, but it will still be felt for the short term. I would expect that very few condo developers will lower their listed prices as a result of the Terrazzo auction and subsequent re-pricing, but I do believe that they will become more flexible in negotiating their future deals.
Golden condo buying advice
Now is an excellent time to be a condo buyer in any building. Take your time to look around at all of the options to see which best fits your lifestyle, design aesthetic, preferred area of Nashville and investment goals. Each building offers something a little bit different and the end prices will reflect that fact.
After you have narrowed your choices, research the recent and historic comparables in that particular building in order to formulate a realistic offer, an offer that will insulate you from the eventual condo price floor that should be reached within 12-16 months (my opinion). If you plan on owning this condo for at least that period of time, I cannot see a way to get harmed during the resale process unless you have not followed the above advice.
I have given this condo buying advice before, but it bears repeating: “Be fearful when others are greedy, and be greedy when others are fearful.” Build in the down times and prosper when the rest catch up.
Selling your Nashville condo is not the only way to exit. You could also lease your condo. For those of you who doubt the viability of leasing, I refer you to Summit Property Management, the leader in this rental market.
See all condos for sale in The Terrazzo