As compared to the past 30 years, current mortgage rates are at historic lows, but always talk with multiple home loan lenders to learn what interest rates are available to you. Mortgage Interest rates change on a daily basis and working with the best lenders will help you know when to take advantage of the lowest rates available for you.

Your credit report and credit score will greatly affect your ability to get a home loan in Nashville as well as get a low mortgage rate. With so many changes in the Mortgage Industry, banks and mortgage companies have a more difficult time getting money or credit to help borrowers with low credit scores. If you have a low credit score, especially lower than 600, you may want to quickly get a copy of your credit report and see where you can improve your score. You can do this yourself, or look to Credit Improvement companies who will legally help you remove old accounts, mistakes, and other problems off your credit report and help you increase your credit scores.

For a Free Credit Report, we recommend you visit GoFreeCredit.com
For help with improving your Credit Score, you can visit GoLookOnline.com

One of the most confusing aspects of Mortgage rates is understanding the difference between an advertised Interest Rate and the APR, or annual percentage rate. The APR is the actual interest rate that you will pay on a mortgage loan including fees. This makes it easier to compare rates that do not have fees with rates that may include fees or points. The APR was intended to make this comparison simpler, but instead, it often adds to the confusion. Just keep in mind, that the Annual Percentage Rate is likely to be different than the advertised mortgage rate because of the additional fees.

The overall range of mortgage rates are determined by the interest rate Mortgage Bonds or Mortgage Backed Securities. Mortgage rates are based on long-term investment strategies. The supply and demand of the Mortgage Bonds and Securities are the strongest factor for influencing the overall range of the rates. The lower the demand, the higher the supply and the lower the rates.

Economic Recovery to Continue at Moderate Pace

RISMEDIA, February 25, 2010—(MCT)—Federal Reserve Chairman Ben Bernanke told Congress recently that he expected the U.S. economic recovery to continue at a moderate pace, but he expressed concerns about weakness in residential and commercial construction as well as the “quite weak” labor situation that has lifted chronic unemployment to very high levels.

“Of particular concern, because of its long-term implications for workers’ skills and wages, is the increasing incidence of long-term unemployment,” Bernanke said in prepared remarks as he delivered the Fed chairman’s semiannual report to the House Financial Services Committee. He noted that more than 40% of the unemployed workers have been jobless for six months or more, nearly double the share of a year ago.

Bernanke, in addressing Congress for the first time since his reappointment to a second four-year term as chairman last month, said the U.S. economy had expanded at an annual rate of about 4% in the second half of last year, with big help from temporary factors related to business inventory levels and stimulative fiscal and monetary policies. “A sustained recovery will depend on continued growth in private-sector final demand for goods and services,” he said.

With the early economic recovery and inflation remaining subdued, Bernanke reiterated that central bank policymakers expected to keep short-term interest rates at near zero for an “extended period,” which most analysts view as at least several months.

Bernanke also said again that the Fed had the tools to gradually siphon out of the economy the billions of dollars in emergency aid that the central bank pumped out to keep the economy from plunging into a depression. The so-called exit strategy is crucial, in both economic and political terms. If the Fed pulls back too fast, it could stifle recovery. If it moves too slowly, an outbreak of inflation could wreak havoc at home and damage confidence abroad.

Lawmakers questioning Bernanke were focused on jobs and the record federal deficits that are becoming a major political challenge for Bernanke and for the Obama administration. In statements before Bernanke’s testimony, Democratic members blamed the previous, Republican administration for the unemployment troubles and the bank bailouts that have fanned public ire at Bernanke and the political establishment.

Pressed by lawmakers, Bernanke said that the current pace of federal deficits was unsustainable and that the Obama administration’s economic stimulus plan—which Republican opponents have criticized as ineffective—had created jobs, though he didn’t cite any figures.

Restaurant Wednesday

Although PM could be considered Thai-fusion, most of the fare created by chef/owner Arnold Myint incorporates flavors from all around the globe. From creative cocktails, boutique wines and speciality beers to curries, burgers and sushi, the menu has something to offer everyone.

location:
2017 Belmont Boulevard
Nashville

615.297.2070
pmnashville.com

What it takes to save Nashville's historic properties

Preservation of historical properties in the Inglewood area is the focus of a community meeting Monday, Feb. 22.

The meeting comes on the heels of a possible sale that could potentially demolish a Gallatin Pike home, one that many neighbors see as historic, but one that does not meet federal requirements to be placed on the National Register of Historic Places.

“It’s important to look at homes and structures and see what we need to preserve,” said Councilwoman Karen Bennett, who represents District 8.

“We want to be proactive, because if we are negligent, we will lose some important structures.”

Representatives from the Metro Historical Commission will be at the Feb. 22 meeting to offer residents information on how the historical preservation process works and what types of structures qualify.

Bennett hopes the meeting will be the first of several to create a dialogue about possible structures that may be worthy of preservation, specifically before the threat of a demolition enters the picture.


A few years ago the property known as Evergreen Place, at 5007 Gallatin Pike near Briley Parkway, sparked debate among neighbors who were for or against a Home Depot replacing the 200-year old Greek Revival residence.


The home, which built by an early Presbyterian minister, formerly housed a museum devoted to the late country singer Jim Reeves.


Although the house was on the National Register of Historic Places, that didn’t grant it any special protection from being demolished. Properties that are placed on the register are still not protected if an owner wants to raze it, said Tim Walker, executive director of the Metro Historical Commission.


The future of a house at the Gallatin Pike/Broadmoor intersection has recently
sparked much comment on the neighborhood list serv.


Preliminary discussions are in the works to possibly demolish the residence to make way for a U.S. Bank.
The house, known as Sunny Gables, was once occupied by Albert Hadley Jr., a nationally known veteran interior designer. Hadley, who decorated the Kennedy White House, Al Gore’s vice presidential residence, among others, returns to his hometown annually for the Antiques and Garden Show.


The house has been reviewed by both the Metro and state historical commissions, but does not meet the federal guidelines for eligibility for the National Register of Historic Places, Walker said.

“The property doesn’t qualify because it’s not architecturally distinct enough or have enough local history behind it to qualify,” said Walker. “We did determine that it’s worthy of conservation, but that provides no protection, but it’s important and its status could change in the future.”


Neighbors don’t object to the owners selling the property and don’t want to impede development, but some think there should to be more respect for such buildings, and many would prefer it be adaptively reused.


“Everyone has the right to sell their property, but we just didn’t anticipate it will be demolished,” said Robbie Jones, an Inglewood resident.


“We would like to see the owners work with the community to help them come up with some options to sell to an owner that would preserve it.”


The owners of the property, Linda and Robert Smith, declined comment.

Future development
Amanda Spenser, another Inglewood neighbor, says it’s inevitable that the property will be developed in the near future and the corridor has room for improvement.


“Strict zoning ordinances are needed if the corridor is ever going to improve,” she said. “Inglewood residents should have a say in what kind of business can build there, but to inform the owners that they either can’t sell the property, or that they must pay to move the house, is audacity beyond belief.


“If those against the sale of the property feel that strongly about it, they need to pay the fair market value for the house.”


Representatives with U.S. Bank say while the deal isn’t close to being complete, they want to work with the community. Their current location is at 3740 Gallatin.


“We have been a good neighbor to this community and are now searching for a new location for a environmentally friendly branch,” said Lisa Clark, spokeswoman for U.S. Bank. “It’s important to keep it near our existing branch because we want people to be able to easily access it.”

A Golden Opportunity: 203k Program Helps First-Time Buyers Turn Dreams into Reality

RISMEDIA, February 22, 2010—As a first-time home buyer, Jessica Garcia was excited last April to officially begin her home search. She found a home within her price range, completed the lengthy paperwork and paid for the appraisals, only to later be told after four months that the deal would not close.

Out of luck and out of money, Garcia was frustrated, but not defeated. She went back to her Realtor to start the search again. It was then that she found the home she would later purchase. Upon first glance, Garcia liked the home and saw its potential, but didn’t have the upfront money it would take to rehab the home the way it needed to be done.

After some discussion, Garcia’s lender, Kevin Roy with Wells Fargo, realized that she might be able to take advantage of HUD’s 203k program, specifically designed to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.

“The home needed a lot of work,” explains Garcia, of North Port, Florida. “The previous owners had pets that had really torn up the carpeting and destroyed the blinds.”

Indeed, the home needed new flooring, carpets and, most importantly, a water softener for its wellwater system. So, when the opportunity arose to take advantage of the 203k program, Garcia was game.

“In the end, it worked out great,” she says. “The credit goes to Kevin because if he hadn’t told me about the 203k program, I would not have had the money to fix the home. All of the money I had was put into the appraisals and fees for the first home that I couldn’t close on.”

Once the transaction was set in motion, Garcia turned to Lowe’s North Port (Florida) store to help her bring her 203k projects to fruition.

“The people at Lowe’s were really great,” lauds Garcia. “I had dealt with a different home improvement retailer in the past, but never had very good experiences. I went to Lowe’s because the people who work there are always friendly and I had heard good things about working with them. The people there really were great—they provided explanations to all of my questions and made my experience easy.”

From the 203k paperwork to guiding her through the program, Garcia credits the Lowe’s team with a job well done. “The team at my Lowe’s was very helpful,” she says. “A couple of people—including manager Mike Cabana—helped me tremendously.”

Prior to closing, Garcia went to the North Port location and chose her products for the 203k projects. Once closing happened in late September, the Lowe’s team prepared for Garcia’s projects, ordering her new carpeting, wood flooring, a water softener and new dishwasher.

“It was amazing,” says Garcia. “The day I closed, I called them and they immediately started ordering the materials and products. Within a few weeks, everything was done.”

According to Garcia, the timing couldn’t have been better. In addition to the improvements she made with her 203k loan, Garcia also took on a few DIY projects herself—including repainting the entire house.

“I decided to put the 203k money into quality carpeting, flooring and, of course, the water softener. I also really needed a dishwasher—the house didn’t have one,” she explains. “The little bit of time I had between ordering the materials and installation was perfect. It gave me just enough time to get all of the painting finished.”

Despite months of worry, confusion and stress, Garcia is now thrilled with her home—and her experience with Lowe’s.

“I am very happy,” says Garcia. “Everyone involved did such a great job and helped me so much…Lowe’s helped me choose exactly what I wanted for my home. I love this house!

“A lot of money goes into buying a home,” she adds. “The 203k program is a great option. It allowed me to do far more than I would have been able to do on my own. As a first-time home buyer with a limited amount of money, it allowed me to do a lot and get exactly what I wanted. Working with Lowe’s was perfect, too. From their affordable prices to the customer service, it was a great experience overall. I would highly recommend both the 203k program and Lowe’s to anybody.”

Short Sale Buyers Face Difficulty Closing Deals Quickly

RISMEDIA, February 19, 2010—(MCT)—Rachel Nacion-Ograyensek and her husband are getting nervous. The house that the two apartment dwellers want to buy—the one with the double oven, pool and tiled patio—may slip away from them.

It’s on the market as a short sale, so the owner can’t act until the mortgage holder approves the discount price. But the Altamonte Springs, Fla. couple insists on buying their first home in time to take advantage of the federal government’s home buyer tax credit, which now expires April 30, 2010.

“The house is our dream house—it’s perfect for us,” Nacion-Ograyensek said. “We are trying to get in on the tax credit, but it’s done in April, and it’s already February. We’ve gotten to the point where we’re passively looking for other houses, but none are quite right.”

Under pressure from the real estate industry, Congress extended and expanded the tax credit last fall. It was to have ended November 30, 2009 and benefit only buyers who had not purchased a home in the past three years. Like the original, the latest version is worth as much as $8,000, but it gives both first-time buyers and qualified existing homeowners until April 30 to secure a contract on a home, and until June 30 to close the deal.

Though real estate agents and homebuilders hope the measure boosts sales, as the previous version was credited with doing, some fear that buyer’s intent on getting a short sale bargain will not make the new deadlines.

In the Orlando area, 67% of Realtors’ existing-home sales in December 2009 were distressed sales—and about half of those were short sales, known for taking at least three months to complete. Even buyers who nail down a contract with the seller by the April 30 deadline can’t be sure the purchase will close within the required two months. “That’s where you get into that riverboat-gambling mentality,” said Jim Ruddy, the longtime real estate agent representing Nacion-Ograyensek and her husband. “Is it worth gambling that $8,000?” At this point in the tax credit countdown, buyers interested in purchasing a short sale must decide whether they are really committed to that property—enough that they would still want to purchase it if they miss the June 30 tax credit deadline, Ruddy said.

Nacion-Ograyensek said she and her husband recently revisited the short sale house in Altamonte Springs and decided it was worth the gamble. The kitchen is ideal for cooking, and the backyard is large enough if they have children or adopt a dog. They have decided to stick with their plan; still, each day that passes makes them more anxious.

In hopes of capturing tax credit-motivated buyers who aren’t focused on distressed properties, Florida’s real estate agents have scheduled an unprecedented statewide open house of properties listed for sale. The event, organized by the Florida Association of Realtors, is set for April 10-11—just two weeks before the tax credit deadline.

Kathleen McIver-Gallagher, chairman of the Orlando Regional Realtor Association, said buyers intent on getting the tax credit should be concerned if they are trying to purchase a short sale through lenders known for slow responses to short sale offers.

As the April tax credit deadline nears, buyers will probably become more interested in homes other than distressed sales, McIver-Gallagher said. “There are plenty of regular homes out there,” she added.

Compounding the delays are new reporting rules that lenders must now follow. Nate Morris, vice president of Thomas Mortgage and Financial Services, said the new requirements involve good faith estimates and HUD closing documents. “It certainly could further complicate things,” said Morris, a board member of the Mortgage Bankers Association of Florida. “I don’t see this working out till the middle of the year. Everyone in the mortgage business talks about it on a daily basis.”

Mortgage Rates Decline; Current 30-Year Fixed Rate at Lowest Level This Year

RISMEDIA, February 18, 2010—The thirty-year fixed mortgage rate on Zillow Mortgage Marketplace is currently 4.79%, down two basis points from 4.81% at this time last week, and at the lowest level since mid-December of last year. The 30-year fixed mortgage rate hovered below 4.85% for most of the last week, but peaked near 4.90%.

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. These are not marketing rates or a weekly survey.

The rate for 15-year fixed home loans is currently 4.22%, while the rate for 5-1 adjustable rate mortgages is 3.61%.

The volume of mortgage requests in the past week fell 6.7% from the prior week. Of last week’s requests, 31.9% were for refinance loans, 66.3% were for purchase loans and 1.8% were for home equity loans. The prior week, 34.6% of requests were for refinance loans, 63.3% were for purchase loans and 2.1% were for home equity loans.

For more information, visit www.zillow.com.

Restaurant Wednesday

Since 2003, MAFIAoZA's has wowed capacity crowds nightly with its authentic Italian menu, its impressive Old and New World wine list and its comfortable, welcoming ambiance. In the style of a 1920s New York-style Italian restaurant, MAFIAoZA's serves the finest stone-oven pizza in the Southeast and other authentic Italian dishes using only the freshest ingredients.

location:
2400 12th Avenue South
Nashville

615.269.4646
mafiaozas.com

NAR's HouseLogic: The Logical Source for Today's Homeowners

Today the National Association of Realtors® launched HouseLogic, a new, comprehensive consumer Web site about all aspects of homeownership. HouseLogic helps homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes.

“Backed by the resources and industry insights of NAR and its Realtor® members, HouseLogic will engage and involve consumers throughout the lifecycle of homeownership,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “It makes sense that, as the first, best source for real estate information, NAR should collaborate with today’s consumers to help them make the most out of owning a home. HouseLogic will help us do that.”

The free Web site helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.

“Unlike other homeownership Web sites, HouseLogic helps consumers view their home through a financial lens and make smart, informed home improvement investment decisions,” said Golder. “Families can set goals for saving money on their home or increasing its value, and easily track the progress they are making on those goals.

Registered users can save relevant information, create to-do lists and set project reminders. The Web site can also be customized for individual homeowners depending on how handy or ambitious they are regarding home projects; how much money they want to spend or save; where they live; and their priorities, such as increasing the value of their home or improving their neighborhood.

HouseLogic also empowers homeowners who want to get more actively engaged in shaping community life and advocate neighborhood and homeownership issues that matter most to them. The site provides users with the tools and know-how to effect change and address concerns, like establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

“For more than 100 years Realtors® have been bringing America home,” said Golder. “HouseLogic takes owning a home to the next level, partnering with consumers to truly help people build their futures through homeownership.

Visit HouseLogic at www.houselogic.com.

Tennessee foreclosure rate ranks No. 26

Residential foreclosures in Tennessee jumped 6.8 percent in January, and the state ranked No. 26 for its overall foreclosure rate.

There were a total of 3,911 foreclosure filings in the Volunteer State in January, an increase of 6.8 percent compared to January 2009 but a decrease of 17.8 percent compared to the previous month, according to RealtyTrac Inc.’s U.S. Foreclosure Market Report.

One in every 705 Tennessee homes received some type of foreclosure filing — default notices, scheduled auctions and bank repossessions — during the month. That ratio is lower than the national average of one in every 409 U.S. homes receiving a filing in January.

Nationally, foreclosure filings fell 9.7 percent from the previous month, but rose 15 percent compared to January 2009.

“January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10 percent drop in January,” said James J. Saccacio, chief executive officer of RealtyTrac, in a statement. “If history repeats itself we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs nor the new short sale and deed-in-lieu of foreclosure alternatives works.”

Topping the list with the highest foreclosure rates are Nevada, Arizona, California and Florida.

Mississippi ranked No. 45 and Arkansas No. 20.

Realtors® Partner with National Community Stabilization Trust to Revitalize Neighborhoods Wracked by Foreclosures

The National Association of Realtors® has joined forces with the National Community Stabilization Trust to help rebuild American communities devastated by the foreclosure crisis.

The collaboration will bring Realtors and the more than 1,400 state and local Realtor® associations into a side-by-side relationship with leading national nonprofits, as well as with state and local leaders, to develop comprehensive and targeted plans to rebuild communities. The partnership was made possible by the new federal Neighborhood Stabilization Program, which provides $6 billion to reclaim neighborhoods wracked by high levels of foreclosed and abandoned property, property disinvestment, extremely low prices and low resident confidence.

“Realtors® build communities and have the market expertise and property transaction tools to help local housing organizations understand local market conditions and how to put foreclosed houses back into the hands of stable homeowners,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Working in this partnership with NCST gives Realtors® a seat at the community table to perform a leadership role in restoring vitality to communities across this great nation.”

“Neighborhoods across America have been decimated by high concentrations of abandoned and foreclosed homes. To reverse neighborhood decline, we need the Realtor® community working hand in hand with other housing providers,” said Craig Nickerson, president of NCST. “This ambitious new campaign will harness the unique abilities of Realtors® to remarket newly renovated homes and to rebrand the tarnished image of hard-hit neighborhoods.”

Through a nationwide network of state and local associations, Realtors® have been engaged in foreclosure prevention efforts since early 2009 as part of the NAR’s Foreclosure Prevention & Response Program.

“The outstanding leadership of many state and local Realtor® associations over the past year to become active participants in community problem-solving has proven that Realtors® are a valuable local community partner,” said Golder.

She cited strong efforts by the leadership in the Chicago Association of Realtors®, the North Metro Realtors® (Minn.) Association and the Realtor® Association of Great Fort Lauderdale (Fla.) as examples of Realtors® working through NSP to revitalize neighborhoods.

While NAR and the NCST will be working nationwide on this new initiative, a focus will be placed on enhancing capacity in states experiencing the highest levels of foreclosure and abandonment.

Beginning January 27, NAR will initiate contact with targeted state associations, based on severity of foreclosure problems. In addition, NAR will provide in-depth training and education materials developed and provided by NCST on www.realtor.org/foreclosure.

The National Community Stabilization Trust is a nonprofit organization that facilitates the transfer of foreclosed and abandoned properties from financial institutions nationwide to local housing organizations, and provides access to financing in order to promote productive property reuse and neighborhood stability. In collaboration with state and local governments, the Stabilization Trust builds local capacity to effectively acquire, manage, rehab and sell foreclosed property to ensure homeownership and rental housing are available to low- and moderate-income families. Visit www.stabilizationtrust.com to learn more about the National Community Stabilization Trust.

Partners prep Murfreesboro Gateway for future development

A partnership created to help bring more office users to Rutherford County’s Murfreesboro Gateway development has announced a new master plan to guide development.

The new plan applies to 200-acres of the development, a portion known as The Offices at Gateway. The master plan identifies two 25-acre parcels for corporate headquarters, areas for general office buildings and a third area for high-density users like data or call centers.

The partnership consists of Gresham, Smith and Partners, Duke Realty Corporation and Nashville Commercial Real Estate Services, which will all work with Rutherford County. The partnership was created a year ago, but Dick Fleming, a principal with NCRES, said they deliberately delayed making any announcements as the economy continued to lag.

“We’re positioning ourselves to be in the right place for the next cycle,” Fleming said.

Fleming said NCRES will serve as the “point of contact” for potential companies that want to expand or relocate to the area.

“We will make this project known,” he said, first by reaching out to local, regional and national brokers.

Gresham, Smith and Partners will design buildings in the area and help draft proposals received by prospective tenants. Steve Kulinski, a senior vice president at GS&P, said that will help the county react more quickly to requests.

“You can’t wait until they show up and go, ‘Oh my God, where are my sites,’” he said.

Jeff Palmquist, senior vice president of Duke Realty’s Nashville operations, said the team will provide “a complete solution,” as they help tenants select a site, design and build a building and lease extra space as necessary. Palmquist said Duke can construct buildings on a build-to-suit basis which Duke itself could own, leasing additional space to other tenants.

Fleming said the partnership has received about a dozen inquiries in the last eight months, and has given two formal presentations — one to a general office user, the other to a medical office user. As Palmquist notes, it’s not been “the best environment” for office recruitment.

“It’s a great time to get all your ducks in a row,” he said.

The Gateway project itself is several years old. In addition to the down economy, Palmquist said the project is competing with established business centers in Cool Springs. As potential sites in that area fill up, he said more opportunities will avail themselves to Rutherford County.

Holly Weber, economic development director with the Rutherford County Chamber of Commerce, said the area has all the right ingredients — a new interstate interchange, The Avenue Murfreesboro lifestyle shopping center, an Embassy Suite and Conference Center and the new Middle Tennessee Medical Center, scheduled to open later this year.

Now, the partnership hopes it’s only a matter of time to get more office users into the area.

“We’re definitely getting more projects in the pipeline,” Weber said.

Nashville Business Journal - by Eric Snyder Staff Writer

Baja Burrito

Baja Burrito is a locally-owned, no-nonsense burrito shop in the eclectic neighborhood of Berry Hill, a community of artisits, musicians and merchants. In business since 2000 Baja is Nashville's hometown favorite for mission-style burritos, award-winning fish tacos, and build-your-own salads.

location:
722 Thompson Lane
Nashville

615.383.2552
bajaburrito.com

Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.

“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.

The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.

On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.

Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.

Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.

Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.

The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).

Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.

Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

Jobs take top bill in governor’s race

The governor may be changing, but the issues have not.

At least they haven’t in the opinion of Nashville-based business groups, who say issues such as unemployment, education and business recruitment remain top priorities.

“This is a very important election,” said Bradley Jackson, vice president of government affairs for the Tennessee Chamber of Commerce and Industry. “Businesses have gone through a lot, and who the governor is matters a lot to us.”

Despite the most wide-open race for governor in years, the candidates uniformly responded when asked what their No. 1 economic priority would be: job creation.

“All the candidates say they’re pro-business candidates,” said Dan Haskell, chairman of the Tennessee Jobs Coalition. “Some time between now and November, that will define itself.”

With the candidates in agreement on what they want to do, the focus turns to how they propose to do it — and business groups are watching closely.

“There is a bit of a courtship going on between the gubernatorial candidates and the voters,” said Jim Brown, Tennessee state director for the National Federation of Independent Business.

Some candidates have suggested the state’s budget woes speak to a need for a reorganization of state government. If that’s the case, Brown said he would like to see the departments of Revenue, Commerce and Insurance, and Labor and Workforce Development addressed, because those are the divisions of state government his members run into problems with the most.

Debby Dale Mason, chief community action officer for the Nashville Area Chamber of Commerce, said the organization wants to see a governor who embraces metropolitan areas, which she says are the drivers of the state’s economy and need to be recognized as such in policy and budgeting decisions.

Haskell said he wants to know how candidates would address the state of Tennessee’s Unemployment Trust Fund.

Mary Ann McCready, co-chairwoman of the Nashville Music Council, said she hopes the next governor will assist with the council’s goals, which include making Nashville’s live music scene the best in the nation.

“We have a mayor who really understands” the music industry, McCready said. “It would be great to have a governor who understands that as well. ... Unfortunately, from a state level, the industry is taken for granted.”

Four out of 10 Recent Buyers Relied on FHA Loans, Says NAR

According to the most recent Realtors® Confidence Index, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. Realtors® who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.

“FHA helps provide affordable mortgage financing to homeowners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.”

The RCI results also indicated that distressed sales increased to 33 percent of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers’ perceptions of other homes for sale. Realtors® report that many buyers have pricing expectations that treat every property as if it were in foreclosure.

In addition, Realtors® expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.

“As the first, best source for real estate information, Realtors® have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today’s real estate market,” said Golder. “We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.”

The RCI is a key indicator of housing market strength based on a monthly survey of more than 50,000 Realtors®; in a typical month there are more than 3,000 usable responses. Participants are asked about their expectations for the demand for homes, price of homes, and other economic conditions.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Pending Home Sales Stabilize, Remain Above Year-Ago Levels

Pending home sales have leveled from a market swing driven by response to the home buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in December, increased 1.0 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1. In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.

Lawrence Yun, NAR chief economist, said it’s important to recognize how the tax credit is skewing market data. “There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded,” he said. “These swings are masking the underlying trend, which is a broad improvement over year-ago levels. December activity was the fifth highest monthly tally in two years.”

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

The PHSI in the Northeast rose 2.3 percent to 76.1 in December and is 14.9 percent higher than December 2008. In the Midwest the index increased 5.2 percent to 86.9 and is 8.7 percent above a year ago. Pending home sales in the South rose 2.2 percent to an index of 98.4, and are 5.5 percent higher than December 2008. In the West the index fell 3.8 percent to 119.9 but is 18.6 percent above a year ago.

Yun projects the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010. “While new-home sales will remain low due to a lack of construction, existing-home sales are projected to rise to around 5.6 million in 2010,” Yun said. Last year there were 5.16 million existing-home sales.

He added that one of the greatest benefits of rising sales will be firming home prices. “For several months now we’ve been seeing stabilization in all of the home price measures as inventory is pulled down,” Yun said. “As a result, the housing wealth for many middle class families has begun to stabilize.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Restaurant Wednesday

The Germantown Cafe is just block from downtown, TPAC and LP Field, Germantown Cafe offers fresh, comfortably creative, reasonably priced food, along with an amazing view of the Nashville skyline. The Cafe is the perfect choice for pre-theatre dinners, casual nights out on the town, power lunches or lazy Sunday brunches.

Location:
1200 5th Avenue North
Nashville

615.242.3226
germantowncafe.com

MBA buys last house on Brighton

A project 14 years in the making is likely to come to fruition this summer.

Montgomery Bell Academy has bought the last of 15 houses along Brighton Road, becoming the sole owner of a strip of land that could eventually serve as tennis courts and parking.

Metro Traffic and Parking Commission recently approved the all-boys school’s request to seal off Brighton Road, a city street about a quarter of a mile long that runs between MBA’s sports fields and acquired properties.

The school now needs the final OK from Metro Council to close the street, a process that requires three rounds of votes, expected in March.


“It does look positive, largely because we’ve spent a lot of time with the neighbors over 15 years, and people trust us a little more and know that we’re doing some things to improve the neighborhood,” said Brad Gioia, headmaster at the school.


Brighton Road closure is an integral piece of a larger, multimillion-dollar project to build underground parking with a soccer field atop it off Wilson Boulevard, make environmental upgrades in a creek buffer zone, add parking and relocate tennis courts.


The second phase of the initiative calls for a new classroom building and a new dining hall in the middle of campus, Gioia said.


But, like most major development projects, this one, too, has involved numerous meetings with neighbors, whose concerns range from projected increase in traffic to aesthetics.


“One concern has to do with screening the activities that go on campus from the residents of properties. MBA has been agreeable to build a berm,” said Irwin Venick, president of Woodlawn West Historic Neighborhood Association.


His house on Kimpalong Avenue backs into the almost vacant strip of land along Brighton Road that will be converted into tennis courts and parking spaces.

“One of our feelings is that MBA should be treating the back of its property as well as it treats the front of its property, and a berm goes a long way in that regard, and we appreciate them moving in this direction.”

May Town lands back on Metro Council agenda

The Metropolitan Clerk’s office has confirmed that District 1 Metro Councilman Lonnie Matthews Jr. has asked that the controversial May Town proposal be placed on the council’s March 2 public hearing agenda.

The $4 billion, 500-acre May Town development proposed a dense and walkable commercial and retail office project in the peninsula of the Cumberland River called Bells Bend.

The Metro Planning Commission rejected proposed changes for the area’s land use plan in June, and the council, which has final say on the proposal, subsequently delayed its own consideration.

Tony Giarratana initially considered proposing a smaller version of the plan, but later reconsidered. Bells Bend developers, including Jack May, whose family owns the property, announced in November that Giarratana would walk away from the project.

The project will need approval from two thirds of the council to go forward.

Nashville Business Journal - by Eric Snyder Staff Writer