This year the real estate market has turned most Nashville homeowners into part-time economists. We have all heard the horror stories coming out of Michigan, Florida, and California. While the damage to home values in those parts of the country has been catastrophic, it does not take a tremendous loss to damage families here in Middle Tennessee. The good news is the Nashville real estate story has continued to read like a Russian novel: a bit boring at times, but steadily good. So what effect did this recession have for the values here in Bluefields? The truth is the
jury is still out. We all know that less buyers means less demand, and therefore less value, but the lending rules have changed a bit in the last year. These may seem unfair but they will shape the value of your home. I will share two issues that have been a problem for me this year.

Tighter Appraisals

There are two buyers for most homes: the 'owner-occupant' and the bank. As homes continue to sell in Bluefields most buyers will bring financing. With bad loans on the books banks are slow to lend money with loose appraisals. Underwriters cautious of loosing their jobs and appraisers fear being black balled by banks if they 'inflate' values.
Lenders are requiring comparable sales to be more similar in design, allowing for less amenity adjustments, and to be within a closer time frame.

Larger comparable sales radius

A larger radius for comparable sales has been the unintended consequence of other changes in lending. Lenders have narrowed the acceptable window for comparable sales from one year to a six month period. With less homes selling this means appraisers are traveling further to find a homes that match your sale. Last year I had an appraiser
go 3.9 miles towards Opryland to find a comparable sale for a home in the Craigmeade subdivision. Needless to say the neighborhoods were dissimilar. Bluefields remains the most expensive neighborhood in Donelson per square
foot. However, with only three recorded sales last year these changes will adversely affect home values in Bluefields. Womp, womp, womp, huh? Hang in there. The good news is that people in Bluefields move with a lower frequency than most. We have not had a fire-sale or foreclosure that has been damaging. If you are anything like me, perhaps
this market has confirmed maybe it’s time to settle in for a bit and wait for one of those big 'ol houses on Overhill to become available. Instead, we would be wise to focus on our the controllable value of our homes. This means working to improve our homes in cost effective ways and over the course of time continuing to improve the unquantifiable value our neighborhood by loving, caring and helping each other. Lets face it, there are adorable homes being built all over town, but it’s the spirit of Bluefields that people are after.

Andrew Bradley, Realtor