NASHVILLE, Tenn. (WKRN) – A new report shows nearly three-quarters of home offers written by Redfin agents in Nashville faced bidding wars in April, forcing prices higher and higher.
With inventory down and demand at a steady high, Tennesseans are doing anything they can do get a home, including paying $20,000, $30,0000, $40,000+ over asking price.
Bidding wars are not so fierce; nearly half of U.S homes are getting more than their list prices, Redfin says.
“I showed a house in Murfreesboro, and they had 90 showings in three days and 45 offers on it,” Traci Johnson-Ardovino of Crye-Leike Realtors said.
Johnson-Ardovino’s colleague Bobby Hill says he has one home under contract for more than $35,000 asking price in Mt. Juliet and another in Murfreesboro that’s $30,000 over.
If you think that’s a lot, this next number may shock you.
“We closed one a week ago that was $760,000 over the asking price,” said Lisa Culp Taylor, with the LCT Team at Parks Real Estate company. “I think it is the builder. That particular builder has a strong following and builds really beautiful homes and it’s a special neighborhood; the location, larger lots, that was the main reason.”
Taylor also recently sold a home in Franklin that had multiple offers and sold for $150,000 more than the list price of around $945,000.
“That particular home was unique,” Taylor said. “We listed under $1 million dollars and there are fewer homes at that price range people are looking for.”
Brian Copeland, President of Greater Nashville Realtors says he’s seeing the trend of paying more than list price, mostly in Wilson, Williamson, Maury and some in Davidson County.
“Many times when we’re looking at narratives we hear these outlier stories about a home selling way over asking price, but you have to look at the stats,” Copeland said, adding that the stats show that just last month alone, 66 percent of all homes in Davidson county sold at or below list price.
The percentage is even lower when you include properties from nearby counties, or our entire MLS at 56 percent of homes selling at or below list price.
These numbers signal good news for first time home buyers, fearing they may be priced out of the market.
“You may be able to pay less than asking price if you’re doing a smaller inspection period or offer seller occupancy after they close. There’s many things that can make an offer very attractive, just don’t worry about the price; there’s a lot more to it,” Copeland said. “We always hear this thing called ‘highest and best offer’ and we forget highest and best isn’t the same thing. Sometimes the best offer isn’t the highest offer, and if you’re using a great realtor they’ll be able to tell you what great terms look like.”
Copeland says Northeast Nashville, Goodlettsville, Old Hickory and Madison are all hot for first-time home buyers. He says if you’re looking for the best deal, try to stay away from homes that have been on the market less than seven days.
“If someone needs closing costs, it is tough right now for first time home buyers needing financial help,” Johnson-Ardovino said. Our best advice we can share is try to save a little bit more money to help them buy. We’ll see the market turn around and they’ll be able to slide in there and pick up some houses.”
Be patient, prepared and most importantly, don’t give up.
“Go ahead and be pre-approved with a lender and often times if you’re fully pre-approved, it’s as strong as a cash offer because, you know, you have the backing of the lender.”
Though most conventional loans require putting 20 percent down, veterans can see 100 percent lending and if you apply for a subsidized grant, you’re looking at putting only three percent down. Copeland is reminding home buyers that there are plenty of options.