Jesus (Jesse) Gonzalez, RDCPro

I recently read over a blog from a buyer who was told by a seller that his house is worth more than the neighborhood comps, by $40,000.00 because, his house is Fung Sui. The buyer wanted to know if he could deduct the $40,000.00 for Fung Sui when making his offer and pay fair market value as determined by the comparable sales.

The answer is YES the buyer can deduct the $40,000.00 dollars and Fung Sui from his offer and let me explain why.

Seller's determine List Price however buyer's determine Purchase Price. The buyer in the example above did something right and, that was he got comparable sales from the neighborhood. This is imperative when making an offer because, without the comparables how would you ever know how much the home is worth? You won't! Some Realtors out there will explain to you that a home is worth more than just the numbers you see on a comparable and yes, I will agree with that to some degree however, either way, a Buyer determines value and therefore makes his offer accordingly.

The one thing the Seller in the above example did that was wrong is, he didn't understand that the List Price is negotiable. He asked the question only because he was under some type of misconception that the List Price is concrete. EVERYTHING IN REALESTATE IS NEGOTIABLE, especially List Price.

Now with that being said, just as the buyer determines Purchase Price, he (the buyer) can only do so when an agreement has been made between both the Seller and Buyer. My point, is that price determination is a intricate dance between 2 parties, a buyer and seller. If both parties can't sink up and agree, then both loose. The Buyer looses the home and the Seller looses the Buyer.

So, now ask yourself, if the comparables dictate that the home is $40,000.00 over the average sales price for that neighborhood, would you pay the extra $40,000.00 because the home was Fung Sui? For some, that might be very important and they would however, a buyer looking for a Fung Sui home is very niche and therefore, may cause the home to stay on the market a very long time. Personally I wouldn't and, if I was listing the home, I would explain that asking for seller to consider a Fung Sui upgrade, in this market, may be seller's suicide.

Just another update for the past 3 months here in Hermitage. Hope it helps.

Below you will find a Sales Analysis for area 7 (Cumberland River to I40E). I pulled this information from MLS for all Single Family Homes only. You will see at the very bottom a cumulative graph that puts it all together.

This first graph is for April 19 - May 19, 2008

This second graph is for April 19 - May 19, 2007

This third graph is for April 19 - May 19, 2006

www.JesseGonzalezRealEstate.com

Hi everyone, I hope the following information is helpful to you when decideing how much to purchase or sell a home for here in Hermitage. I have to be honest, I found myself a bit frustrated today when I had a man argue with me that home prices in Hermitage are over inflated and that the house I have listed at 1720 Ridgemere Ct. shouldn't sell for more than 130,000.00. At little miffed, I decided that I would look at the numbers and share the knowledge with all of you who are interested.

This report was pulled for all closed single family homes in Hermitage from today 5-13-08 back to 4-13-08.

www.JesseGonzalezRealEstate.com

The Camden Woods Subdivision is located in the heart of Hermitage. Camden Woods is ideally situated just off the intersection of Old Lebanon Dirt Rd and Tulip Grove Rd. This community offers convenient access to Hwy I40, and major thoroughfares like Old Hickory Blvd, Lebanon Road and Central Pike (265). With easy access to the Nashville Star commuter rail and only 25 minutes from downtown during the work week and only 15 minutes from Nashville International Airport, this community is a commuters dream.

Camden Woods is an established community with a mix of all brick siding trim homes built in the late 80's early 90's with square footages ranging from 1,100 - 2,200+ square feet. With manicured half acre lots, large shade trees and well maintained homes this suburban community is a great retreat from the hustle and bustle of Nashville. This neighborhood does have a Home Owners Association and, most all the homes are owner occupied. With only a 25.00 a month HOA (Home Owners Association) fee you get access to the community tennis courts, pool and club house. It is common to see people walking babies and dogs on a sunny afternoon or lounging in the lawn on a lazy weekend. Saturday in Camden Woods will find weekend warriors out mowing lawns, painting mailboxes, or trimming bushes, with a strong sense of community you can't walk down the street and not say hello to someone.

Those of us who live here in Hermitage enjoy the wonderful recreation available to us. We have our pick of 2 large recreational bodies of water, Percy Priest Lake or The Cumberland River both less than 15 minutes in either direction. We are also the home of Nashville's only water park, Nashville Shores so, if you enjoy boating, fishing, camping, water slides or just hanging out with friends, this is truly the place for you.

Your Neighbor Realtor

www.JesseGonzalezRealEstate.com