5 Scenarios to Help you Decide if You should Sell Your 12th South Home in Nashville, TN
I'm NOT going to state the obvious here. If you are having to relocate for a job or for personal reasons, then this is a no-brainer. But for those of you who live in Nashville's 12th South area, here are 5 scenarios in which you may want to consider upgrading to a new home.
- Your Home is Worth More than You Paid for it. If you bought your current home before 2007, then you will really need to take a good look at the numbers. If you purchased a newly built or wonderfully remodeled home then the numbers may not look so good to you. You will need to see the recent comparables to be able to determine that. If you purchased your home AFTER 2007, then chances are that you may be sitting in a great position to be able to sell and walk away with a nice chunk of change in your pocket.
- Your Home has a Renovated Kitchen and Master Suite. Older homes in the 12th South area that have remodeled kitchens and master suites will sell more quickly, if they are priced correctly. If your 12th South home is older and it is not remodeled, then you may want to run a cost vs. value estimate on doing this work before selling it.
- As an Investor, the Cap Rate on your Investment is under 10-12%. 12th South is a very trendy and much loved area to live in. The local market there looks good! Because it is currently a relatively stable area, your investment's cap rate may be as high as 12%. But to make the most money possible on your investment, anything under an 8% cap rate should really be looked at again. Your money may be able to work harder for you in another local market area.
- You have Outgrown the Size of Your Home. When you bought your lovely 12th South bungalow with 1400 square feet, it was really big enough for you and your dog/cat. But now you're married with one child and a second one on the way. There are children's toys EVERYWHERE, the home is bursting at the seams with all of the "stuff" and you can never find a spot just for you to escape to. It is either time to purge a lot of the "stuff" - which is difficult to do when children are involved, or it is time to sell. And do it now, while it is still a buyer's market.
- You Found Your Dream Home and You are Able to Afford it. You just heard from a friend that a house you've been wanting for years is about to come on the market. You've run the numbers and you know that with the current low interest rates and your career going well you could really afford THAT home. Go for it! Again, it's still a buyer's market, and interest rates are low. The 12th South market is HOT and from the increase on your investment you will walk away with an extra $30-$50k on your home.
I am currently running an individualized market analysis on 250 homes that I hand selected in the Oak Hill, David Lipscomb, Green Hills and 12th South areas of Nashville. I will be mailing brochures to the owners of these 250 homes and giving my opinion on potential profit they could walk away with if they sold their homes. If you would like to be added to this list, please let me know and I will gladly add you.
It is my belief that you CAN build wealth over your lifetime with the real estate purchases that you make. Even if you feel that you made a "mistake" with your home purchase, you need to know the FACTS about your circumstance, as each individual home or condo has its own story.
I am hoping that these 5 suggestions help you make an informed decision about whether or not to sell your 12th South home in 2012!