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Murfreesboro Tennessee Real Estate Blog

The Mitchell Bowman Team

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A New Path To Homeownership

by The Results Team


The aforementioned home (new construction - 3 bed, 3 ba, 2900 sqft) could rent for approximately - $2,500/month

Do you need to rent right now but really want a home in a couple of years?  

Rent options have you frustrated? 

Tired of uncertain rent increases? 

There is more than one path to homeownership.  Our partnership with Home Partners of America provides residents with a unique option to obtaining homeownership.   The program allows residents to shop the real estate market for homes for sale, ranging between $150K and $450K. 

If the home qualifies, Home Partners will pay cash and rent the home 1-5 years (rent is fixed), allowing the resident time to get finances in order so they can purchase the home back from Home Partners.  

To learn more about this program and requirements, call us at 615-890-8053 or 615-893-1130, ask to speak with The Results Team.  

5 Things That will yield the most return when selling your home

by The Mitchell Bowman Team

If you missed Brittany Brandon's 5 in 5 weekly Facebook chat, below are the 5 things that Brittany Brandon outlines for those wanting to increase the value of their home.

According to Brittany... 

1.  Kitchen remodel - don't do a major renovation, focus on minor upgrades: change the hardware of your cabinets, perhaps upgrade the countertops.  Don't do a complete overhaul of the kitchen because your return on investment is not significant.

2.  One of the biggest returns in adding value to your home is attic insulation. Adding additional insulation will yield a 114% return. 

3.  Garage door.  The garage door can increase the curb appeal of your home.  

4. Change your front door to steal.  If you already have a steal 

5. If you have a house with vinyl siding, replacing 1/4 or 1/3 with stone veneer increase the  curb appeal and bring additional value to your home. 

So if you are looking to sell now or later, these are five things if applied over time, will increase the value of your home when you are ready to sell. 

For additional real estate questions or services, you can reach Brittany at brittany.r.brandon@gmail.com or like her on Facebook at https://www.facebook.com/beyondthesalewithbrittany/

The Results Team - 

615-890-8053

615-893-1130

 

1 Acre Lots in Murfreesboro

by The Results Team

Coming to the north side of Murfreesboro, Robin Estates.  This is a Michael's Homes development.  There is only 14 lots and lot sizes range from .79 to 2.1 acres. Homes will start in the high $290's based on plans and final selections.  

Robin Estates is located off Twin Oak Drive.  The lat/lon coordinates are 35.875272, -86.33190.  A copy of the plat is below.  Cost to reserve a lot is a $1,000 deposit that is refundable within 30 days if plans and contract price is not agreed upon.  

Contact The Results Team for more information. 

615-890-8053 or 615-893-1130

resultsteamtn@gmail.com

Multiple Programs to help you get into a home

by The Results Team

My father always says - "The reason why you are where you are today, is because of the choices and decisions you made yesterday - life is choice driven."  

Hearing this bothered me, because  I was reminded of the mountain of debt my wife and I had accumulated over the years. It seemed like we would never get free from the bondage of debt. 

My fathers statement, though harsh, is right.  After seeking the advice of a mortgage lender in 2000, my wife and I tightened up on our spending and aggressively reduced our debt.  We were able to get our debt to income (DTI) ratio to a point where the lender was willing to loan us money on our first home at a decent interest rate in 2002. 

Life is choice driven but sometimes we all go through a tough time, doing our best to make ends meet.   Fortunately there are several programs to help people that have been through difficult times but have  gained some traction and stability over the last 12 months. 

Program 1:  Home Partners Lease Right to Purchase Program (HPLRPP)

If you answer yes to all the following questions, there is strong possibility you would get approved for this program.

  • Do you have a minimum credit score of 550? 
  • Do you have a combined household income of $50K/year? 
  • Have you had steady employment over the last 12 months? 
  • Have you consistently paid your bills on time over the last 12 months?
  • Do you have 2 month reserves (example, if your rent was $1,300 a month, do you have $2,600 in savings)

The HPLRPP allows the potential home owner to look for homes for sale on the MLS.  Once they find a home they like, a cash offer can made on the home via  Home Partners.

Example of how the program works:

Jacob has a credit score of 600 and Julie has a score of 550, gross household income of $70K and steady jobs.  Home Partners approves them for $250,000.   Jacob and Julie use their realtor and find a home they love, listed at $176K.  Estimated rent is $1,370. After the inspection, Jacob and Julie request the carpet in one of the bedrooms be replaced because it's worn.  Home Partners agrees to replacing the carpet and makes an offer that is accepted at $176K.   Julie and Jacob deposit 2 months rent (refundable security deposit) in the amount of $2,740.  45 days later, the home closes, Julie and Jacob pay first months rent and move in.  

After year 1, Julie and Jacob make significant progress on their debt and scores increased enough to secure a loan from their lender.  They request to purchase the home from the investor. and the investor sales the home to Julie/Jacob for the list price $176K + 4% ($7K) = $183K.  The home appraises for $187K.    The lender allows Julie/Jacob to use their security deposit as part of the down payment.  Julie/Jacob close and now are official homeowners.

Program 2:  FHA Choice

If you answer yes to all of the following questions, there is a possibility you would be approved for this program.

  • Do you have a credit score between 500 and 619? 
  • Have you had steady employment over the last 12 months?
  • Have you paid your bills, including rent, on time over the last 12 months? 
  • Do you have 2 months reserves? 
  • Can you put 3.5% down?   

Example of how the program works:

Let's say Jacob and Julie in the above scenario used Home Partners because they did not have enough to put down on a home.  After being in their home for a year, they were able to save $10K while also paying off some debt to improve their debt to income ratio.  They also attend a HUD-approved homeowner workshop over the weekend.  These actions help them qualify for the FHA Choice program and use this program to purchase the home they are renting from Home Partners.  

 

 

If you think you qualify for any of these programs, give us a call at 615-890-8053 or 615-893-1130

Ask for The Results Team:

 

 

 

 

The Regression Repellent

by The Results Team

 


The other day, we went to a listing appointment and were quite surprised at the investment in upgrades.  The home was originally 1,300 square feet, but the owner expanded the upstairs which added another 1,100 square feet for a total of 2,400 livable space.  As a result, this home was the largest home in the subdivision. The closest home in size was approximately 1,500 square foot with a list price of $170K.

Now if I own the small house, I’m excited and hope the sellers get the most they can because that would only help the resale value of my home.  However, owner of the home with upgrades and extended living area should be very concerned because the home is located in a subdivision where the average list price is $170K and they want to sell for $270K.   

We advised the homeowner of our concern and that the home doesn’t conform to the neighborhood, which would make it difficult to list at $270K.  We didn’t get the listing because another realtor convinced the seller they could list at the desired amount.   60 days later and the home is on its 3rd price reduction. 

If you live in the Nashville/Murfreesboro area and have a home to sell in the near future, our team of experts can serve as your regression repellant.  We can give you an analysis of what your home would sell for today, in addition to what it would sell for with upgrades.  This will allow you to make an informed decision before spending your money. Don’t put yourself in a regression situation or your home could sit for months in a market where the average home sells in 3-10 days.   

What does Kmart and real estate have in common?

by The Mitchell Bowman Team


 

Sears announced the other day they were going to close 64 Kmart stores because the retailer continues to struggle with declining sales.  

I can remember when Kmart was a dominating retailer and Wal-Mart was just on the rise.  What has happened over the last 30 years that Kmart is now going under and may never recover?  One of the issues I see from the outside looking in is relevancy.  Kmart has lost its relevancy with the marketplace while Walmart and Target continue to make modifications to their stores and marketing in order to remain relevant in an ever-changing world. 

So what do Kmart closing stores and relevance have to do with real estate?  I am so glad you asked.  The other day we went to list a house and pulled all the comparables so the seller could make a decision on the listing price.  The comparables all came in with a list price of $250K - $260K.   The owner decided to list the home at $260.  After several showings, there were no offers.  We immediately started looking at homes that had sold to determine why we weren’t getting offers.  The one noticeable difference is that the homes that were selling had upgraded appliances, flooring, and cabinets.  The home we were listing didn’t have any upgrades, in addition to wallpaper in various places.  

Based on customer expectations, our listing price was too high because similar homes in the same price range had upgrades and ours didn’t.  So in the eyes of the consumer, the listing price was too high.

What is the lesson we can learn from this?  If you are going to live in a home for an extended period of time (5 years or more), make sure you budget for upgrades so your home will remain relevant.  If not, you will struggle when it’s time to sell or you will have to cut your price to compensate for the lack of relevancy.

Selling your home in Murfreesboro?   We are the Murfreesboro Real Estate Professionals.  We can list or find you a home in Rutherford County.  If you list, we do a comparative market analysis for free, in addition to showing you how we target market surrounding cities, counties and states to get your home sold quickly. 

Give us a call – 615-890-8053

The Red Door

by The Mitchell Bowman Team

While doing some research on interesting things in real estate, we stumbled upon the red door.   A red door symbolic of different things depending on where you are from.

1. In Scotland, the red door means the homeowner is mortgage free.
2. In China, the red door is known as the "Mouth of Chi", where energy enters
3. An early old American tradition, the red door signified a place of rest for travelers. 
4. Biblical terms, the red door signifies protection.   
 

While we haven't seen any red doors, have discovered a red house located at one of the three homes below.  

Should I Buy a Home Now?

by The Mitchell Bowman Team

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

Displaying blog entries 1-8 of 8

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The Results Team
Coldwell Banker Snow and Wall
1980 Old Fort Parkway
Murfreesboro TN 37129
24 hr line 615-890-7053
Office 615-890-8053