Stephanie Crawford

I've been doing a lot of work in East Nashville lately - seems everybody has! I recently had a buyer win a multiple offer bid for a small home in trendy 37206. The home hit the market on Friday evening, there were eight scheduled appointments on the first day and we were the fourth offer submitted by Saturday night. We had to jump well above the asking price to ensure a winning bid - and good thing we did; the margin was so narrow that my buyer's pre-approval letter was what put us on top.

Whenever I tell my mom, an ex-Metro police officer, that I've recently sold a home in East Nashville, she always looks at me a little funny. Sure, everyone knows about the super-pricey beautiful Victorian homes in Lockeland Springs. But Inglewood? Rosebank? Douglas? Yes, those areas are hotter than ever... Really.

Check out these sales price stats for East Nashville home prices over that past decade. Note how 37206 and 37216 have greatly outpaced appreciation over the Nashville market average (err...disregard that whole "2009" part of the chart)

Orange= Nashville overall
Green = Lower East Nashville (Lockeland Springs, East End, Shelby Village, etc.) 37206
Yellow = Inglewood, 37216
Gray = Madison, 37115
Blue = North/East (including McFerrin Park, Cleveland Park, Dickerson, Brick Church and Parkwood) 37207

What spurred the popularity? It all started in April 1998 when a couple of tornadoes ripped right through the area. Much needed insurance money flowed into the aged, blighted neighborhoods. Suddenly these brick and wood craftsman cottages, bungalows, and tudors were showing glimpses of their former glory. The national trend toward urban living also helped make East Nashville a prime destination due to it's close proximity to downtown. But the massive influx of local, independently owned retailers and restaurants is what finally tipped the scales in my opinion. Yes, Gallatin Pike, a major Nashville spoke road, has long offered fast food, car lots and check-into-cash conveniences, but the revitalization of the shops at Five Points, Eastland/Walden and Riverside Village is where the real action is. Here a buyer can get sushi, retro duds, coffee, even hula hoop lessons as well as an affordable home in a WALKABLE subdivision.

So when your dad looks at the old rotted window sill, the school reviews, and the crime stats and questions your judgment, point him in the direction of this post (or at least the home value chart above) for a little validation.

• View recent home listings in 37206
• View recent home listings in 37216
• East Nashville Neighborhood Map

Fed up with high premiums? Here are some great ways to cut your costs:

Tell your agent how your risk became lower.

• Did the city install a fire hydrant near your home?
• Some auto insurance agents offer discounts to drivers who motor less than 7,500 miles a year, those who are incident-free for more than 5 years, and those who drive hybrids.
• Did your marital status change? Often couples qualify for lower rates.
• If your credit scores have shown marked improvement since your initial policy, that can be a factor too.

Get it all under one roof.

• Get your home and auto plans from the same company. I personally bundle it all: life, health, auto, home, and condo contents. Tennessee Farn Bureau offers excellent prices.

Boost your deductibles.

• The more your home is worth the more you'll have by increasing it's deductible.Going from $500 to $1,000 will save about $70 a year on a $125,000 home and over $400 on a $600,000 house.

Go comparison shopping.

• Spend a half hour online seeing how rates vary for your current coverage (or the coverage you want). Check out insweb.com to see if you can get a better deal. If the thought of insurance shopping makes your head spin, call an independent agent who will compare premiums for you at no charge. You can find local accredited agents through the Independent Insurance Agents and Brokers of America's Website, trustedchoice.com.

I've seen some mis-information in the media lately about the required size of a down payment for a mortgage in today's market, and the blog world is abuzz with misconceptions.

The facts:
An individual may be required to put down 20 percent based on that person's financial situation. But that is not an across-the-board requirement for all borrowers.

A borrower who puts down less than 20 percent is required to obtain mortgage insurance in most cases. This can be avoided by attaining two loans - a 1st position mortgage as well as a 2nd position or Home Equity Line of Credit. Occasionally you may see a program that offers "lender-paid PMI," if you do, please realize that the lender MUST make that cost back by charging higher closing costs and/or a higher interest rate.

A borrower is required to make at least a 5 or 10 percent down payment. In a down-market that will probably be the case. If you see a 100% program available, be very careful. I always recommend getting a second quote from a different service provider.

As of the first of the year, FHA now requires a 3.5 percent down payment by borrowers. True. However, there are a variety of programs which can aid in down-payment assistance if you are a qualified buyer. It is also important to remember that your down-payment can be a "gift" from family or employer.

FHA has increased their market share which has grown roughly tenfold in the past year to an estimated 30 percent of new mortgage originations. Also true. FHA is back and in a big way.

Down-payment assistance programs are no longer allowed. Correct. The traditional programs like AmeriDream and Nehemia are currently not accepted in conventional financing. However, state programs such as THDA offer options that come very close to Zero Down with seller help.

If always have the time to refer you to a qualified mortgage professional. Talk with me about your situation and I can refer you to a provider that will suit your needs well.

By now you've probably heard about the $7500 First-Time Buyer Tax Credit. Here are a few tips that you may not be aware of:

• The credit is valid from July '08 through July 1^st, 2009 and must be applied to the tax year of the purchase. That means that if you are hoping to apply the credit to the coming tax season, you must close on a new property by the end of this year. Likewise, any purchase made between January 1st and July 1st will be applied to the 2009 tax season.
  
• Buyer's don't really have to be "first-timers." The broad definition includes any buyers who have not had ownership of real property in the past three years.
  
• Think you make too much money? The credit is applied fully to individuals earning less that $75,000 and households earning $150,000. However, if you earn $95,000 and $170,000 respectively, you can still qualify on a reduced basis.
  
• There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.
  
• New Construction and Condos qualify too! For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home. However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.

If you have more questions, please let me know!

You know, this really is a fabulous place to live. Take a look at some of the recent awards Nashville has won:

America's Friendliest Cities The Today Show named Nashville one of America's five friendliest cities. May 2008

2007 Competitiveness Award Tennessee is the most competitive state in terms of attracting economic development, according to an annual ranking made by Site Selection Magazine, which rates states on actual success in bringing new jobs and industry. May 2008

Top Cities for Cultural Amenities Nashville ranks nationally as the No. 3 best city in terms of cultural amenities behind New York City and San Francisco. bizjournals.com, January 2008

Best Cities for Jobs Nashville ranks as the No. 4 best city for jobs in 2008. Forbes, January 2008

Top 10 Cities for Business Nashville ranks as the No. 6 best city to do business because of robust industry sectors ranging from music to health care. MarketWatch.com, September 2007

Kauffman Index of Entrepreneurial Activity Tennessee Ranked No. 4 based on entrepreneurial startupsover the past decade. Ewing Marion Kauffman Foundation,April 2008.

Top 100 Places to Live Nashville ranked among the top 100 places in live in America based on education, employment, economy, crime, parks, recreation and housing. Relocate-America, 2008

Top 25 Art Destinations Nashville ranked 22nd in AmericanStyle magazine's annual Top 25 Arts Destinations reader poll, 2008

100 Best Places to Live and Launch Nashville is ranked No. 79 on business friendliness and lifestyle offerings. CNNMoney.com, April 2008

Best Places for Business and Careers Nashville ranks as the No. 15 best city for business and careers based on job and income growth, as well as migration trends. Forbes, February 2008

Top Cities for Apartment Investing The Nashville- Middle Tennessee area ranks nationally as the No. 4 best city for apartment investing. National Multi Housing Council, January 2008

Top Sports Towns Nashville ranks as the No. 16 top sports towns in the U.S. Sporting News, September 2007

Top 50 Best Adventure Towns Nashville is nationally ranked as a top city to live and play based on an ideal mix of terrain, activity and opportunity. National Geographic, September 2007