by Flint Adam, Nolensville Resident & REALTOR®
Note: this blog references only Williamson County Nolensville real estate.
It’s a wasteland out there right now, folks. If you want to live in a Nolensville neighborhood, the pickins are slim. As I type this, there is only one subdivision home you can buy right now and move into within 60 days.
Ten subdivision homes have hit the market since January 1st and gone under contract. The average days on market for them was one and a half. Yes, you read that right. None of these have closed yet, but I’m going to go ahead and assume most are getting full asking price.
This brings me to my point: if you are capable, there may not be a better time to list your Nolensville home for sale.
Reason #1: Low Inventory Means Little Competition
If you’re a seller you want the highest and best terms in a purchase offer. What improves your odds at getting this? Not having other homes to compete with.
Inventory is typically low in the first quarter, but 2021 is exceptional in the dearth of homes available for sale.
There are many buyers out there right now who couldn’t land a house during the typical value months of November and December, and now they’re feeling desperate. They know they’ll soon be competing with more buyers looking to relocate, and until inventory improves it’s a tough fight.
For sellers, it couldn’t be better conditions: hungry buyers, little competition, and my next point…
Reason #2: Historically Low Home Loan Rates
If low inventory is the matchbook, then low interest rates are the accelerant. The cost of getting a mortgage has never been lower. This month brought yet another all-time low to the 30-year fixed mortgage rate, the most popular home loan product.
With rates this low, buyers are eager to take advantage and secure a new home purchase. Consider this simplified example:
2018 Home Loan
House Value = $350,000
With 20% down payment = $280,000 loan amount
Avg. Loan Rate = 4.875%
Monthly Mortgage Payment (Principal & Interest) = $1,481.78
2021 Home Loan
House Value = $450,000
With 20% down payment = $360,000 loan amount
Avg. Loan Rate = 2.75%
Monthly Mortgage Payment (Principal & Interest) = $1,469.67
Yes, home prices have risen the past three years, but with interest rates at historical lows it’s possible to pay less today on your monthly mortgage than you would have just a few years ago.
It’s also likely that loan rates will rise this year, so buyers have extra incentive to take advantage of the marketplace now before home prices and mortgage rates go even higher.
Reason #3: Cherry Pick Your Contract Terms
I’m seeing all kinds of crazy stuff right now. Above-asking price isn’t even the main perk these days. Buyers are offering simple pass/fail home inspections, waiving appraisal contingencies, and letting sellers pick closing and occupancy dates. Talk about a sweet deal!
When you have multiple offers and extreme conditions like we’re seeing right now, sellers are absolutely in the driver’s seat when it comes to nabbing the best terms.
Don’t want to close until May? I bet there’s still a buyer out there for you right now. Lock in the sale and cruise to the finish line at your convenience. There’s just one little detail to consider…
Alert: You’ll Have To Buy A Home Next
Ah, the only kink in the plan. If you plan on staying local, it’s ferocious. Nashville is the #3 real estate market in the United States right now. Buyers aren’t just competing with locals, but an absolute influx of people moving here from out of state. For better or for worse, Californication has reached the central time zone.
If you’re moving out of Greater Nashville you’re probably going to be okay. If you’re buying new construction, I’d say sell now, find a short-term rental, and move in to your new digs without the stress of lining up closings or worrying about the housing market’s future.
If you’re able and willing, NOW is the time to sell.
Flint Adam is a 10+ year Nolensville resident and lives with his wife and children in Bent Creek. He focuses his real estate practice here in town, having served around 150 buyers and sellers in closed Nolensville real estate transactions. Flint enjoys blogging about local real estate, traveling the world, photography, and bourbon-hunting. He is passionate about serving Nolensville and keeping it one of America’s greatest small towns.