Grant Hammond - Nashville Homes

This article entitled "Terrazzo auction will impact condo prices across Nashville" appeared in the Nashville Business Journal on November the 6th, 2009. The author is Eric Snyder:

Velocity, the last new condo project that will come to the downtown Nashville market for several years, has officially opened its doors. Meanwhile, Terrazzo, one of downtown's more luxurious condo towers, is poised to slash its prices by as much as half at an upcoming auction.

The stage appears set to at least create momentum to move units. What's less clear is whether that momentum will come as a result of severely discounted prices - not just at Terrazzo, which is selling 30 of its 117 units for up to 50 percent off original asking prices, but across the market.

Grant Hammond, a buyer's broker who specializes in condos, said the Nov. 21 auction will serve as a "crystal ball."

"This should tell everyone exactly where the market is for downtown living," said Hammond, who will represent two potential buyers at the auction. Hammond said the auction will determine whether the downtown market is viable, or whether it's moving toward or away from viability.

Hammond will set his compass by final sales prices, adding that auction prices of $250 a square foot will represent a viable market. Read Eric Snyder's full Nashville Business Journal article.

When you break down the available condo inventory in downtown, you find that the numbers aren't as bad as you may have been led to believe. What does appear to be at odds however, are the wishes of current condo owners and condo developers who want to build again. Owners are hoping for prices to remain stable during the next 1-3 years of inventory burn-off whereas developers would rather see prices fall to the point where 100% of the inventory burns off in one year.

I see the arguments from both sides and each has a valid point, what I have not determined is the perfect solution for both owners and developers. What I am sure off is the fact that the Gulch does have legs. The Icon has been selling very well during a recession and once Velocity gets a little more serious about their prices, it will be the most affordable entry property in the downtown market. The Gulch is quickly becoming a ‘see and be seen' neighborhood in Nashville as certain celebrities tend to slink in and out of 2 restaurants in particular.

This article entitled "High-end homes take a hit" appeared in the Williamson AM on September the 11th, 2009. The author is Nancy Mueller:

BRENTWOOD - Short sales and foreclosure sales are now being seen in some of Williamson County's most expensive neighborhoods.

During the first week of September, there were four short sales available in the Governor's Club, plus one foreclosure. Down Concord Road at Hampton Reserve, there was one foreclosure and one short sale.

These distressed situations translate into some excellent buying opportunities.

"If you are an executive who is moving to Nashville and you want a $1.5 million house, you only have to spend a million point two," said Grant Hammond, a Cool Springs-based agent who is launching a Web site called NashvilleShortSales.com that will list short sales and foreclosure sales in the Nashville area.

But even Hammond may be under-selling some of the deals to be had in the upscale neighborhoods.

A five-bedroom, custom-built home that backs up to the second hole at the Governors Club golf course is a "short sale steal" according to agent Vanessa Stalets. The owners' asking price is $1.25 million. Stalets says the owners paid $2 million for the house, which was built in 2005 and is at 217 Governors Club Way.

Another Governors Club short sale is a 6,000-square-foot home at 4 Spyglass Hill that was listed for $1,398,000 in May. The price dropped to $1,249,000 and then to $1,099,000. On Sept. 2, it dropped again to $1,050,000.

The house has four bedrooms, four bathrooms and two powder rooms and, according to Hammond, "another rare feature" - gap equity.

"This is going to be a heck of a deal for the just-under million dollar buyer," he said.

Some fear stigma of cuts

The short sales and foreclosure sales in Hampton Reserve and Governors Club are among 111 that Hammond found while researching information for his new Web site. There is no central clearinghouse or system for finding such sales, and sometimes listing agents do not promote the nature of the price cuts.

"There is some debate that the words 'short sale' or ‘foreclosure' stigmatize the property," Hammond said. "A buyer may assume that there is something wrong with the property itself, beyond the financing."

That is not necessarily the case, although it is possible that such properties might not have been maintained normally and buyers should be prepared for the fact that if the seller is a bank, it may be pointless to negotiate for upgrades or home improvements within the offer to buy.

Additional deals in Governors Club and Hampton Reserve include:

• 2 InnisBrook Lane, a short sale, has 4,735 square feet, four bedrooms, 3½ baths, a pool and hot tub. Built in 2002, its asking price is $889,000.

• 9554 Sanctuary Place, a foreclosure, has 6,988 square feet and was built in 2006. With five bedrooms, 5½ baths, a four-car garage and an elevator, it is listed for $999,999. It sold in 2007 for $1.345 million.

• 9576 Hampton Reserve, a short sale, is listed for $1,295,000. It's a lot of money, but this house sold in September 2005 for $1,525,000. It has 7,782 square feet, five bedrooms, five bathrooms, two powder rooms, a theater room, a stocked wine cellar, a five-car garage and an elevator.

With a little effort, high-end buyers can sniff out additional deals these days, such as the mansion at 1216 Waterstone Boulevard in Laurelbrooke.

With more than 11,000 square feet, an elevator, pool and six fireplaces, it is listed for $2,399,000. According to the agent, the sellers invested $2.8 million in this house, which was built in 2006.

• 10 Sawgrass Lane, a short sale, is a 4,642-square-foot home built in 2006 listed for $749,000, down from $930,000. It has five bedrooms, 4½ baths.

• 91 Governors Way, a foreclosure, has 6,242 square feet with five bedrooms, five baths and three half-baths. It has a full basement. Built in 2007, its price is $749,900.

If you are thinking about buying a condo in the Encore condos building in the SoBro area of Nashville, you need to speak with me now. If you are buying a condo or loft in any building in downtown Nashville, call me now.

Buying a condo in downtown Nashville can be a good investment if negotiated correctly.

You do not want to be the person who paid $139,885 more for the exact same 2 bedroom floor plan than the person 3 floors below you. This is a real example. This actually happened and I have the data to prove it. I will make sure that you are the person who paid $139,885 less.

Just like with the Icon, I am one of the extremely rare people who has collected all of the closing data for the entire project and inserted that information into a graphic spreadsheet. I then ran a price regression analysis that accurately calculates probable condo prices. My spreadsheet shows you exactly what has closed at which price and when. This is invaluable information that you need in order to make an educated offer in this project. There is no better negotiating tool than this information, period.

According to my data, as of July 7th 2009 73% of the Encore building had closed with the greatest percentage being on the Cumberland River side of the building. This means that you have the best opportunity to steal a condo on the downtown urban view side of the building, the best side of the building in my opinion. There are a greater number and percentage of 1 bedroom condos still available in the building and the latest closings show that some low ball offers are being accepted.

What's next?

In order to protect the integrity of this research I will not email you this spreadsheet, you must meet me in person in order to review this information. I am a licensed real estate agent, therefore, if you are currently working with a buyer's agent, I will not be able to assist you unless you can sign a buyer's agency agreement with me. If you are only working with a representative from the Encore, there is not a conflict of interest and you should have an agent solely representing you interests (representation will not affect the price). If you have a pre-construction contract on a condo and you did not sign an exclusive buyer's agency agreement with your agent, you may switch, however, that is a decision that you must make. It is NOT my intention to separate anyone from their current or past agents. It is my intention to provide the highest quality buyer's representation in this project. As a real estate agent who has been quoted more than 25 times in the Tennessean, City Paper and Nashville Business Journal, I am confident that I can provide you with insight and guidance you cannot find elsewhere.

Are you also considering buying a condo in the Icon in the Gulch? I have collected the same information and performed the same analysis in this building as well.

Contact Grant Hammond to make sure you negotiate the best deal:

Email is usually best Grant@remarkablehomes.com however, you can always call my cell 615-945-7123.

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If you are considering buying a condo at the Icon in the Gulch, you need to speak with me first. If you have a pre-construction contract on a condo in the Icon that you would like to renegotiate, you need to speak with me first.

Buying a condo in the Icon in Nashville is Smart:

You do not want to be the person who paid $81,150.00 more for the exact same one bedroom condo than the person who is only 2 floors below you. If you think that I am making that up, you are wrong. This is a real example.

I am one of the extremely few people in Nashville who has collected all of the closing data for the entire project and inserted that information into a graphic spreadsheet. I then ran a price regression analysis as well as a futures analysis that accurately calculates probable condo prices. My spreadsheet shows you exactly what has closed at which price and when. This is invaluable information that you need in order to make an educated offer in this project. This information does not show what upgrades have been done to the individual condos.

The Icon in the Gulch has become a premium rental destination receiving premium rental amounts. Couple that fact with your ability to purchase at a discount and the equation starts to make sense again. Obviously your purchase does not need to be an investment property in order for this information to help you over the next several years. In fact, the last deal I negotiated in the Icon was for a primary residence.

What's next?

In order to protect the integrity of this information I will not email you this spreadsheet, you must meet me in person in order to review these documents. I am a licensed real estate agent, therefore, if you are currently working with a buyer's agent, I will not be able to assist you unless you can sign a buyer's agency agreement with me. If you are only working with a representative from the Icon, there is not a conflict of interest. If you have a pre-construction contract on a condo and you did not sign an exclusive buyer's agency agreement with your agent, you may switch, however, that is a decision that you must make. It is NOT my intention to separate anyone from their current or past agents. It is my intention to provide the highest quality buyer's representation in this project. As a real estate agent who has been quoted more than 25 times in the Tennessean, City Paper and Nashville Business Journal, I am confident that I can provide you with insight and guidance you cannot find elsewhere.

Would you rather buy a condo in the Encore in Nashville? I have collected the same information and performed the same analysis in this building as well.

Contact Grant Hammond:

Email is usually best Grant@remarkablehomes.com however, you can always call my cell 615-945-7123.

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It is rumored that the 5th and Main condos in Nashville have endured receivership and will be placed back on the market any day. From what I understand, Wachovia Bank continues to be involved in the project as the primary construction lender and has actually already resumed construction in phase II (someone send me a pic). I also learned that the bank has cleared all liens and that all contractors have been paid an agreed upon sum in order to resume work. No word if that sum is less than the amounts originally filed in the mechanics liens.

It also appears that that Ghertner is no longer managing the building. Freeman and Webb, one of Nashville's most diverse property management companies, has stepped in to not only manage the property, but also to handle all of the retail space and residential condo leasing. This of course means that Village Property Management is out. There is not all bad news for Village as they will continue to market the individual residential condos for sale.

It is also rumored that the more than 100 outstanding pre-construction condo contracts will be brought back to the table. No word on what concessions may be offered, but I would expect to see a minimum of 3 percent in closings costs, all appliances thrown in and perhaps some amount of HOA forgiveness. For those who do not wish to close, it appears that you may be able to get some of your deposit back, maybe 50 percent or so, but don't expect the bank or Village to refund your entire deposit.

My advise for pre-construction contract holders: negotiate, negotiate, and negotiate some more. This is a trendy project with floor to ceiling glass all over the place and has great rentability. I wouldn't be completely against owning a condo in this building. Nothing really looks like it in Nashville and it will be a solid investment in the long run. No room to flip and make a profit in this economy, so it truly is a 3 or 4 year investment.

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