Nashville home buyers getting burned in hot real-estate market

Home for sale 122319
Posted at 8:46 PM, Apr 15, 2021
and last updated 2021-04-15 21:46:17-04

NASHVILLE, Tenn. (WTVF) — In a competitive market full of cash offers and bids thousands over asking price, Nashville residents are just hoping for a fair shot when it comes to buying a home.

“Some houses we couldn’t even get appointments to see,” said Nashville resident, Erin Wilburn. For her, house hunting felt like a full-time job. “We know for a fact that multiple homes we lost out on to out of state buyers who had all cash.”

She and her family began their house hunt last year.
They made nine offers on five homes before finally landing their West Meade house.

“You see a lot of affordable homes being torn down and then a house that’s like a million dollars being put in it’s place," said Wilburn.

The process was exhausting.

“I think there’s a lot of lost hope,” said CEO of simpliHŌM, Sean Miku. He and mortgage loan officer Jeff Suter said just this week they lost a bid that was $125,000 over asking.

“So they’re coming in from LA, from New York with a cash offer versus people here that might be first-time home buyers or even second, third-time purchasers and they just don’t have the cash in the bank to go $100,000 over list price,” said Suter.

In the last week they've seen a 10% increase in houses being listed, but demand has never been higher, with both locals and buyers from cities like L.A. bidding on the same homes.

Miku said, “I don’t know that we’re going to get to an inventory balance before the buyers loose all hope and quit so that’s kind of the crisis that I see at the moment.”

Data from this year shows homes in Middle Tennessee are selling on average for close to or at asking price. Projections indicate in the coming months prices may go even higher.

For those fighting for a future home, they suggest having an experienced mortgage lender and realtor that are skilled in making offers. But most importantly, they urge buyers not to lose hope. Wilburn said, “I think right now you have to hunt down your house and you have to be willing to make concessions.”