Franklin TN Real Estate Blog

Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC

If you are preparing to buy or sell a home in Franklin TN, then you need to understand contract contingencies prior to entering into a residential sales agreement. So many things hinge on a seller's knowledge of these contingencies. That's why Franklin Homes Realty LLC is committed to properly educating homeowners about the selling process.

Sellers need to understand that most real estate contingencies are there to protect the rights of the buyers. Contingencies give buyers the opportunity to withdraw from a contract should the contingency not be satisfied. For example in the case of a financing contingency, if a buyer is unable to obtain a mortgage, he is entitled to a refund of his earnest money and the contract is voidable. There are often timelines by which the contingency must be satisfied.

The most common contingencies buyers and sellers will find are:

• financing contingency - This protects the buyer's earnest money should he not be able to obtain financing for a mortgage loan.
• appraisal contingency - This protects the buyers from paying more for the house than the appraised value. If the appraised value is less than the purchase price, then the buyer has grounds to re-negotiate the purchase price to the appraised value or it becomes a voidable contract.
• home inspection contingency - The sales contract may be contingent upon the buyers obtaining inspections of the home. Inspections may include those for wood-boring insects, lead-based paint, structural and mechanical systems, septic systems, radon testing and other operations of the home.
• sale of home contingency - A buyer may make the sales contract contingent upon the sale of his current home. This protects the buyer from owning two homes at the same time and also helps ensure the availability of cash to the buyer for the purchase of his new home.

While these are the most common contingencies, a buyer can make the contract contingent upon just about anything. For example:

• survey contingency - A buyer may want the land the home is situated on to be surveyed ensuring he is getting the lot size that is quoted in the MLS or to make sure a neighbor has not encroached upon the property.
• square footage contingency - If a buyer suspects that the square footage quoted is not correct, he may place a square footage contingency. The buyer would then have the home professionally measured ensuring that he is getting the square footage as quoted in the MLS.
• school contingency - If a buyer wants a certain school, he may put this into the contract until he has the opportunity to verify the schools.
• spousal approval contingency - This contingency is common when one of the buyers is not available at the time of writing a contract. It would be contingent upon the missing spouse's approval of the home.
• CC&R (covenants, codes and restrictions or regulations) contingency - This contingency usually relates to those homes located within a homeowner's association. For example, the buyer may want to put up a fence and find that the CC&Rs, restrict the presence of a fence. This contingency would allow the buyer to get out of the contract should he find something unacceptable in the CC&Rs.

The seller does have the option of insisting on an escape clause. An escape clause permits the seller to continue to market the property until all the buyer's contingencies have been satisfied or removed. The buyers may decide to obtain the right to eliminate the contingencies if the seller receives a more favorable offer. Basically, the buyer satisfies or removes the contingencies within a certain timeframe such as 24-48 hours. If the buyer doesn't satisfy or remove the contingencies, then the contract becomes voidable and the seller is free to accept another offer.

It is important for sellers to understand that contracts do sometimes become voidable due to adverse findings during contract contingencies. Sellers should wait to make other housing arrangements or moving their furniture, until all contingency matters have been satisfied or removed. If the seller is buying a new home, he would have a sale of home contingency protecting him from purchasing the new home should the sale of his home fall through. However, if the seller is obtaining temporary housing that requires a large deposit, he should wait until all contingencies have been satisfied or removed prior to making temporary housing commitments.

If you are having difficulty understanding contract contingencies, you should always discuss them with a knowledgeable REALTOR® prior to making any financial commitments associated with the move to a new home.

When you are ready to sell your Franklin home, contact Franklin Homes Realty LLC at (615) 495-0752.

About Tammie White, Franklin TN REALTOR®

Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.

Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC

I recently attended a workshop that was being taught by a real estate broker with many years of listing experience. During that workshop, an agent asked whether we should hire a professional photographer to shoot photographs of the homes we list. To my surprise, this broker said it wasn't necessary.

He asked the agent if he used a smart phone to which the agent responded, yes. This real estate agent of many years told us he uses his cell phone to take photos while at the listing appointment. There's no opportunity to stage or clean. What you see is what you get.

The Internet has become the first showing. An astounding 92% of buyers begin their home search here. You probably have about 8 seconds to win them over. If the photographs aren't good, then they are moving on to the next listing. Your house doesn't even make it to the list of homes they want to see.

The best way to make my point is for you to actually see an example of one listing without professional photographs in comparison to a listing with professional photographs.

I am prohibited by copyright laws to use the other agents photographs. However, I'm not prohibited from showing you actual listings that are currently on the market.

Before I provide the links below, I would like to add, these homes are similarly priced, have similar square footage, were built within a year of each other, are in similar Franklin TN neighborhoods and are both vacant and ready for immediate occupancy.

Listing #1: Built 1990, 2,068 square feet, 3 bedrooms, 2 baths, Price $275,000

Listing #2: Built 1991, 2,092 square feet, 3 bedrooms, 2.5 baths, Price $274,000

In Listing #1, some of the photographs are of nothing but the corner of the room. While you see the corner in Listing #2, that's not all you see. Which photographs would you want to market your Franklin TN home?

You have probably already guessed that house #2 is listed with Franklin Homes Realty LLC. To further demonstrate my point, here's what a buyer said to me while at an open house yesterday for this property.

The buyer asked who took the MLS photographs (that's what actually got him to this open house). I told him I hired a professional to do it. He commended me for doing such a nice job representing my client. He then said, "Maybe if I had hired an agent like you, it wouldn't have taken me so long to sell my house."

When selling your Franklin home, you should ask the listing agents you interview what type of photography they will use to market your home. You want an agent who will go above and beyond what other agents are doing. The whole point of having MLS photographs is to entice buyers to come and see your house. Professional photographs give your house the best opportunity to stand out from the competition.

If you would like to hire a Franklin TN listing agent who will present your home in the best way possible, contact Tammie White of Franklin Homes Realty LLC at (615) 495-0752. 

NOTE: The listings I cited above have both sold. Listing #1 photographed by the agent sold in 118 days for 94.9% of list price. Listing #2 photographed by a professional sold in 21 days for 98.2% of list price. This comparison is proof that homes shot with professional photography sell quicker for more money. Which would you want for your Franklin TN home?

About Tammie White, Franklin TN REALTOR®

Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.

Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC

The term REALTOR® is a trademarked name for a real estate agent who is a member of the National Association of REALTORS®. REALTOR® is NOT synonymous with real estate agent. Not all real estate agents are REALTORS®. A REALTOR® is held to a higher Standard of Practice and follows the Code of Ethics as established by the National Association of REALTORS® (NAR). They are required to strictly adhere to this Code of Ethics in the conducting of their real estate business.

As you search for a Top Franklin TN REALTOR®, you should be looking for a real estate agent who subscribes to this higher standard of practice. You should also be looking for a top real estate agent in Franklin TN who knows the housing market well and puts his/her clients interests above his/her own.

How Do You Find the Best Franklin TN Real Estate Agent?

Be sure your top Franklin TN REALTOR® is experienced in the buying and selling of Franklin TN homes. She should have the knowledge to guide you through the buying and selling process in Franklin and all surrounding Williamson County cities. A top real estate agent in Franklin will know the current housing market trends, have an extensive knowledge of the Franklin TN neighborhoods and successfully achieved home ownership for previous buyers and sellers in Franklin TN. In 2013, 100% of our business was derived from the buying and selling of Franklin TN homes.

In this highly competitive Franklin TN housing market, you want to make sure your Franklin TN top real estate agent keeps you informed of the current housing inventory. As your top Franklin TN Buyer's Agent, she should be monitoring new homes as they come on the market. Many of these Franklin TN homes are going under contract the first day. This requires that your top Franklin TN REALTOR® keep you aware so she can arrange showings quickly before the best houses go under contract. We have made it easy for you, just sign up for our listing updates.

As a top Franklin TN Listing Agent, she should present you with a Comparative Market Analysis and provide guidance to help you prepare your home for market. She should provide you with the tools to get your home sold quickly for top dollar. This includes pricing it right, staging guidance, professional photography to highlight your homes attributes and proactive marketing through a variety of sources. Ninety percent of buyers start their home search on the internet. Make sure your Franklin TN top REALTOR® has a strong internet presence.

Choosing the Top Real Estate Agent in Franklin TN

Your top real estate agent in Franklin TN should have the following qualities:

• Adheres to a higher standard and complies to the NAR Code of Ethics
• Has an extensive knowledge of the Franklin TN housing market
• Keeps you abreast of the current housing market conditions so you can make wise buying and selling choices
• Represents your best interests whether she is performing as a top Franklin TN Buyer's Agent or top Franklin TN Listing Agent

If your agent has all these qualities, you have found the top Franklin TN REALTOR®.

Choose Tammie White as Your Top Real Estate Agent in Franklin

Call Franklin Homes Realty at (615) 495-0752.

About Tammie White, Franklin TN REALTOR®

Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.

Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC

What is Absorption Rate?

The simplest definition of absorption rate is the rate at which properties are sold in a given area. For example, there are currently 748 single-family homes for sale in Franklin TN. During March (the most recent month of closed data), 150 homes closed in Franklin.

If you take the current inventory of 748 homes and divide that by last month's closed sales (748/150), you get 5 months. That means if the current inventory stayed the same and the rate of closed sales remained the same, it would take 5 months to deplete or sell all the existing homes.

A normal market would be considered between 5 - 6 months of inventory. If there is 1 - 4 months of inventory, it is considered a seller's market. If there is more than 7 months of inventory, then it is considered a buyer's market. Based on the most recent data, Franklin TN is in a normal or steady market.

Remember, absorption rate is constantly changing as new listings come on the market.

Why is Absorption Rate Important?

If you are looking to sell your Franklin TN home the absorption rate will help you determine where you should price it for a quick sale. For example, say you are thinking about pricing your home at $450,000 and you calculated the absorption rate for homes priced between $450,000 - $500,000 was 14.3 months. However, homes priced between $400,000 - $449,000 had an absorption rate of 5.3 months. If you were looking for a quick sale, you might price under $449,000. However, if you weren't in a hurry and were prepared to wait, you might price over $450,000.

If you are looking to buy a Franklin TN home, knowing absorption rate may help you negotiate a better deal. Let's say you are looking at two homes. One is in Fieldstone Farms with an absorption rate of 2 months. While the other is located in Forrest Crossing with an absorption rate of 9 months. You may decide to purchase the home in Forrest Crossing because the seller may be more negotiable on his price because inventory is moving slower there.

Absorption rate is an important indicator of what is going on in your market and should not be overlooked. As in the examples above, the absorption rate can vary from city to city, neighborhood to neighborhood and even from one price range to another. Franklin Homes Realty LLC uses this information to accurately price their listings so they will sell in the least amount of time for the most amount of money.

If you are looking to sell your Franklin TN home, call Franklin Homes Realty at (615) 495-0752. 

About Tammie White, Franklin TN REALTOR®

Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.

Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC

The housing inventory in Franklin TN is extremely low right now. Buyers are out in record numbers looking for homes to buy to take advantage of the incredibly low interest rates before they rise. There just aren't enough homes to go around to accommodate all the buyers. As a result, buyers have been forced to turn to new construction.

Remember, basic economics and the law of supply and demand. When the demand is high and supply is low, what happens? That's right, housing prices begin to rise. That's exactly what is happening.

Franklin TN new construction home prices are on the rise.

Buyers are flocking to new construction home sites to meet their demand. As a result, we are beginning to see prices rise.

Westhaven has had 19 price changes since April 1. Of those 19 changes, 2 were existing homes where sellers dropped their prices. However, the other 17 price changes were new construction homes. All of these homes increased, not decreased, their price. You read that right. Westhaven has increased the price on 17 homes since April 1.

The lowest price increase was $1,275 but the highest increase occurred today--a whopping $25,500. Had you purchased the home pictured above yesterday, the list price would have been $749,000 but today the list price is $774,500.

What does this mean for home buyers?

• Be prepared to pay more for a home than you did 30 days ago - Prices are on the rise. Expect to continue to see that as we get further into the building season.
• Don't Wait Long - We are still very early in the selling season. Act early before prices go up even more.
• Use a Buyer's Agent - A Buyer's Agent will represent your interest in the transaction. The on-site agent works for the seller. It is his job to get the best price and terms for the seller. A Buyer's Agent represents you. Even though, he is paid by the listing broker. The new construction builder has already included the Buyer's Agent's commission in his price. If you don't use one, he just keeps that as profit. Instead, hire a Buyer's Agent to negotiate on your behalf.

What does this mean for sellers?

If you own an existing Franklin TN home and you have been contemplating a move, act now. Buyers are out in record numbers. Home prices are beginning to rise across the board. Take advantage of this reduced housing inventory and list your home.

You still need to make sure the home is in good condition and priced within the recent comparable home sales. An experienced agent will be able to prepare a competitive market analysis and advise you on both pricing and condition.

If you are in need of either buying a Franklin TN home or selling your Franklin TN home, contact Tammie White today at (615) 495-0752.

About Tammie White, Franklin TN REALTOR®

Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.