Tune in today as John looks at the craziness of the market in 2015 and asks a few pointed questions as to where/what is going on in Rutherford County real estate.
Murfreesboro Tennessee Real Estate
Displaying blog entries 1-10 of 437
Don't live in a brand-new home? John discusses how even your 20 year old home can bring in top dollar!
JOHN: Hey Guys. John Jones, Tuesday Morning Coffee, thanks for tuning in. Today we are gonna talk
about Homes in Subdivisions, where the age of the Subdivision is 20 years old. You say, “20
years, Gosh, that’s a long time.” We’re talking 1995, it’s not really that long ago. So, homes
that are 1995 or Subdivisions where the homes in there are 1990’s, guess what, they are across
the board on what you can expect to receive from them. What I mean by that today; I went to a
subdivision on the south side of town. There was everything from $82/sf to $98/sf. That’s a
huge difference. It’s like a, I don’t know, I didn’t do the math on it, but maybe what, like a
$30,000 difference in basically the same size house, the same age, in a subdivision. What is the
difference, why did this one get $30,000 more. It’s real simple: one house had kept their home
updated, had taken care of all the maintenance on the home and kept it painted up, had changed
the carpet out, had done the things over the years to bring it up to 2015. The other homes, that
were lower, didn’t and it’s quite simple, you can’t expect to get top dollar and premium from
your home if you’re not going to do the work to it along the way to deserve that kind of money.
Remember, buyers are willing to pay you a premium, if the house is move in ready, ok, and the
reason is, it’s human nature, it’s human nature. People that are buying homes, especially under
$250,000, typically don’t have a bunch of cash to sink into a home, other than the money they
are going to put down on the home, so, they will pay a premium to go ahead and have it ready
for them. It is up to us, as sellers, to go ahead and get the work done. Make it where the buyer
has no objections. If you will do that, you will get top dollar. For instance, the home I met with
today, their home if I had to sell it as is today, would probably be about a $215,000 home. It
needed paint, it needed carpet, it needed some fixtures, it needed a lot of things. A lot of it, just
deferred maintenance, not even really talking about adding things or making big improvements,
just making what’s there, better and newer. Okay. If they will spend anywhere from $12,000-
15,000, I will be able to get them probably around $245,000 for that home. Okay. That’s a
$30,000 difference with about half that investment and they will net $15,000-17,000 more by
doing that work. The reason why, they’re not making the buyer have to do it. I have had seller’s
go, “Hey John, we know it needs $15,000 worth of work, why don’t we just lower the price
$15,000 and that way, you know, the buyer can pick what they want”. The problem is, the buyer
is not gonna look at it that way, they’re not gonna say, “Oh well, we can probably just put our
$15,000”; A) they probably don’t have the $15,000 in cash, but B) is, if they are gonna have to
put the $15,000 in it, then they want to get a better deal than to have to fool with it. So, you are
always better off getting your home updated, keeping it painted, doing the flooring, doing all the
things you need to do to get top dollar; and you will get top dollar.
It's been six months, and John checks in with sales consultant Jim Dibble to hear about the ups and downs of being an agent.
John: Hey guys, John Jones, Tuesday Morning Coffee. It’s with great honor and privilege, I’m
gonna introduce you to Mr. Jim Dibble. Jim is one of our newer associates here at John Jones
Real Estate, one of our sales people. Jim, I’m gonna count rapid fire real quick, Jim, Where are
Jim: Clarksville, TN
John: Alright, Jim, What was your job prior to real estate?
Jim: I was the assistant golf course superintendent with Vanderbilt Legends Club in Franklin.
John: How many kids do you have?
John: And what ages?
Jim: 17 and 15, Oakland High School
John: Oakland High School. And uh, your wife’s name?
John: Alright. Your favorite things to do when you are not selling real estate?
Jim: Go to the beach, go fishing and play golf.
John: Alright. Jim, let’s talk about this a little bit. You have been in the business now, how
Jim: About 6 months.
John: Alright. And as a lot of you know out there, or don’t know, the first year in real estate is
the, the first 6 months especially, is the most brutal. I know I probably only cashed maybe 1
check, 2 checks in that first 6 months. So tell me, Jim, how’s it going for you? Tell me, now
that you have kind of got your nose bloodied a little bit, tell us about that experience.
Jim: It’s been real positive. Closed about 5 sales so far.
John: That’s awesome.
Jim: Met a lot of great people, got to help a lot of great folks. Getting my feet wet. It’s an
ongoing experience and I am looking for a big spring this year.
Jim: The way the market’s looking, I think we are gonna be able to cash in on a lot of sales.
John: Have you learned a lot in the last 6 months?
Jim: Absolutely. Learned how to talk to people.
Jim: Learned how to relate to folks. Find out what they’re looking for.
John: Trying to find out their needs and whatnot. What made you want to get into real estate?
Jim: Well, I really have a desire to help people and helping people get into a home is a life long
dream for a lot of folks.
Jim: And that’s been one of the big things is helping these first time home buyers get in a home.
It’s really a joy.
John: And, let’s back up a little bit. Your previous occupation, what did you do?
Jim: Grew grass for a living. Basically, I was a grass farmer on a golf course.
John: Not illegal grass..ok..it’s legal grass. Golf course. And you went to school to do that,
Jim: That’s right.
John: Where did you go? Tell me where you got your degrees from.
Jim: First time, I went to University of Tennessee at Martin in West Tennessee. That’s where I
met my lovely wife.
John: That’s awesome.
Jim: And later in life, I went back to Mississippi State University.
Jim: Big Bulldog fan…and
John: And got your degree
Jim: And got the degree in Golf Course Turf Management and moved on from there.
John: That’s awesome. Alright, last question, Jim. Our company, as some of you know or
don’t know, is a team concept company and what I mean by that is that kind of everybody works
together. We have a full time listing coordinator, a full time closing specialist, to try to give our
clients the most specialized service possible and the alternative to that is, kind of how I started
the business, is just go with a brokerage company if you are kind of on your own. Jim, now that
you kind of know and had the feel for real estate, what are the pros of what you did, coming on
with a team company?
Jim: Well, I feel like the biggest thing it has done for me is have years of experience behind me
that I can go to people and ask questions to, whether it is yourself or Tommy Davidson or
Michele; all these folks have been a great resource to me for all the questions that I have had and
all the experience that I am getting.
John: Right, right. And do you feel it’s a little bit easier, opposed to if you were out there by
yourself, where there are no leads coming in, to being in a company where the phones are
ringing and leads are coming in on the internet, to kind of help you get started. Has that been a
Jim: Absolutely, it’s been a big help. That’s where a lot of my sales have come from, leads that
come in on the phone and our website, that is always available to folks, so it’s been a big help.
John: Well, Jim, I know people are gonna want to talk to you, cause you are a man, you are a
person of interest. So, how would people get a hold of you?
Jim: The best way to get a hold of me is my cell phone 615-439-8175, call me or text me, I will
be glad to help you.
John: Give em that number one more time, cause I think the phone lines are gonna be buzzing.
John: Jim Dibble. John Jones Real Estate, clients first. Thank you.
Tune in to hear John discuss 5 mistakes to avoid if you're considering selling your home in this hot market!
John: Hey guys, John Jones, Tuesday Morning Coffee. Thanks for tuning in. Today we are
going to talk about the 5 biggest mistakes that home sellers make in pricing their property,
especially here in Murfreesboro. These are the ones that I see in the Rutherford County market
over and over again.
The number 1 thing I hear from sellers; How did you arrive at that price? Well, basically, it’s
what we want to net on the home. If we put it at this price, it’s gonna give us what we want to
get out of the home. Absolutely, has nothing to do with what a buyer will pay.
Number 2: They base their price on what it would cost to build the home today. Let’s say they
have done a lot of things. Let’s say they have done fences, they have done pools, detached
garages. They assume that every dime that they have put into that home should be, or what it
would cost to build all that stuff today is exactly what they should get for that house, which there
again, has nothing to do with what a buyer will pay for that home.
Number 3: They price it by square footage, okay, and maybe somebody back in their
subdivision sold their home, they heard for $100/sf, well, they just naturally assume that they
should get $100/sf. What if that home was a lot bigger than their home, their home may actually
bring more than $100/sf? What if that home was a lot smaller than their home, and their home is
more in average with the neighborhood. You know, it could go either way, so you definitely
can’t go by that alone.
Another popular thing I hear is that, well, the tax appraisal has said it is worth X. Tax appraisals
can be high, they can be low. It’s a computer logarithm that doesn’t take into a lot of things,
variable things about the home, like condition or where the home is located; is it located near a
main highway or on a perfect cul-de-sac lot. A lot of things like that don’t come up in a
That could be said also for maybe the most popular thing I am hearing now…the Zillow’s
estimate. Well, Zillow says my house is worth this. Well, Zillow can be right, it can be wrong.
You know, it definitely, it’s a computer, it definitely doesn’t take in some of the factors I just
mentioned before. In fact, I just did this on three homes I just sold. This home was in North
Murfreesboro, kind of in the Mitchell Nelson area. The Zestimate said it was $118,000, the tax
assessment said it was $120,000, it sold for $129,900. Ok, so neither one of them were correct.
This is a condo out in the Indian Hills, South Murfreesboro area. Zestimate said it was worth
$188,000, tax appraisal said it was worth $146,000, it actually sold for $170,000, okay. Neither
one of them were right. South Murfreesboro, this is a home I just put under contract. The
Zestimate said it was worth $459,000, the tax appraisal said it was worth $420,000, it just went
under contract for $350,000. So, what does Zestimate mean, what does tax appraisal mean, can
they accidentally get it right every now and then? Sure, but these are the three, the only three I
pulled up, I didn’t go searching for, these are the last three, the first three that I pulled up and all
three of them are way off, both Zestimate and tax appraisal.
So, be very careful, how do you find the price? Hire a good realtor like myself. We will come
out there and help you, but truthfully, you gotta look at current market data. What are homes,
like yours, selling for? Ok. And also, you gotta factor in marketing trends, absorption rates,
inventory supplies. Is the market trending up right now, can we go for a few more dollars than
maybe the last guy or is the market trending down. Those are all factors that go into it, but if you
hire a good professional realtor, they can help you and guide you on pricing that home to sell.
The FHA is lowering the Annual Mortgage Insurance Premium on January 26th! John gives a brief insight into what that means for new FHA loan home buyers.
John: Hey Guys! Tuesday morning coffee. We have big news, ground breaking news. FHA,
for the first time in the history of the loan, is reducing their Annual Mortgage Insurance
Premium. Effective the 26th of this month, FHA loans on the annual insurance premium, which
is currently at 1.35% of your base loan amount is going down to 0.85% of your base loan
amount. What does that mean in dollars, on a $200,000 house, that will be lowering a payment
of $84.00. Ok, what does $84.00 do for somebody? It allows them to probably buy another
$15,000 in house if they so choose or save $84.00 per month. The bad news is, it is only for new
loans after the 26th, it’s not retro, it doesn’t go into effect on loans that are already out there,
existing FHA loans, you would have to refinance to take advantage of it, but it’s the first time
this has ever happened and a good sign of things to come. FHA or the government is doing this
because they feel real comfortable with the reserves right now, which are upwards of $7 Billion
and they feel very comfortable with that so they are lowering that premium for home owners to
help them purchase houses. So, if you have any questions about it, please give us a call at 615-
867-3020. Thank you!!
Do we have a housing shortage in Rutherford County? Tune in to hear John explain what different price points mean to buyers and sellers.
Do We Have a Housing Shortage?
John: Hey guys! John Jones here with Tuesday Morning Coffee. Thanks for tuning in. Do we
have a shortage of inventory in Rutherford County? That’s the question I want to answer today,
but before I answer that question, let’s talk about what a market looks like. Let’s talk about a
seller’s market and a buyer’s market and everything in between. The general rule of thumb is,
that 0 to 3 month supply of homes on the market is totally a seller’s market, okay. 4 to 6 month
supply of homes on the market is generally kind of a balanced market, doesn’t really favor the
buyer or the seller either way. Anything over 6 months, definitely turns to a buyer’s market and
if you recall, in the pit of the recession, we got up to over 11 month supply of homes, 11 months,
okay. So, it was definitely a buyer’s market at that time. Let’s look at Rutherford County right
now; over all, we have 1,100 homes, single family homes on the market. That’s a 2.58 month
supply of homes on the market, so definitely overall we would be considered a seller’s market.
When you break it down into price ranges, it will even make a little more sense to you. Under
$150,000 home in Rutherford County, under $150,000, we have a 1.36 month supply of homes.
Definitely, a seller’s market. $150,000 to $200,000, we have a 1.76 month supply of homes.
Definitely, a seller’s market. When you go $200,000 to $300,000 in Rutherford County, it jumps
up to a 3.65 month supply. So now, it’s becoming a little more balanced, but definitely, in my
opinion favoring the seller. When you get to $300,000 to $400,000 it jumps up to 5.75, now
that’s more of a balanced market, not really favoring either party. When you go over $400,000
in Rutherford County, it becomes 8.66 month supply of homes on the market, so definitely still a
buyer’s market, in the higher price ranges in Rutherford County. So what does all that mean?
Well, basically, it means that overall, we have a very vibrant market, and if you are in a house
under $300,000, it’s definitely gaining value as we talk. If you are a seller right now, it’s the
best time we have had to sell your home in the last 7 years. If you are a buyer, it’s a time that if
you are looking in certain price ranges, where you have to be able to act fast, you have to be able
to expect multiple offers and you really have to look at what the folks are asking for the house
and if it’s fair, you better be willing to pay full price. If you ask the question, why do we still
have homes on the markets in those price ranges, why are some of those been sitting around for a
while? Don’t get me wrong, just because we are in a seller’s market, doesn’t mean you still
don’t have overpriced listings. You are still going to have sellers push the envelope on how
much they think their home is worth or how much they want to try to get for their home. Some
of the disadvantages of this time for a realtor, is you do have to deal with appraisal problems
cause the market is moving up and there aren’t the comps to support the most current sale. A lot
of times, we have to fight with the appraisals and we come in with some lower appraisals,
because they do everything based on past sales. So, anyway, I hope that helps explain the
market. If you have anything, call us at 615-867-3020.
Tune in as John recaps the real estate market in Rutherford County for 2014 and forecasts 2015.
December 2014 Housing Statistics
John: Hey Guys! John Jones here. Tuesday morning coffee. The New Year’s addition. Happy
New Year everybody. I want to take this time to talk about the market for 2014 and maybe what
to expect in 2015. 2014, let’s start with just the month of December. Month over month, we
were up 20% in closed sales. So, there again, for about the past quarter, the whole last quarter,
every month was 20% or better. So, kind of a crazy ending. Pendings were also up 27%, so that
means we should see the continued increases that we are seeing, next month. Inventory was way
down for the month, 18% less homes on the market than this time last year. Year to date, how
did we do in the Rutherford County single home market? For the year, we were up 10% in home
sales over last year with a grand total of 4,910 homes sold. To give you some reference point,
2006 was the best year we ever had, and I believe there was right around 6,500 homes sold that
year. I think our bottom in 2011 was 2,900 homes, so are at 4,900 this year, so obviously things
are coming back up. Our closed price for the year, was $189,000, compared to $175,000 last
year, so home prices are definitely coming up. Our inventory is down 7% for the year, over last
year, so definitely still have some inventory issues. Which is gonna keep continuing to drive
prices up. Rates are still low, you know, incredibly low, and they’ve stayed there. Don’t know
how much longer they are gonna be that way, but it looks like with the economy, the job
situation, and everything going on in the greater Nashville area. Nashville is hot as a fire
cracker, which means the surrounding areas are gonna be hot. So, I think you’re gonna see
continued upward swings in the market this year. I think we are gonna continue the climb that
we have had. The issue that I think we are gonna have this year is gonna be inventory in certain
price ranges. I think you are gonna see in the lower price ranges, it’s basically, it’s gonna be all
existing homes. I don’t think, you know, under $130,000, that builders can even build a home, a
single family home, anymore because of the rising costs to even produce a starter home for
somebody in the price range, unless it’s a townhome of some sort. So, I think townhomes are
gonna become our starter homes at starter home prices and I think we are gonna have a void in
the market in new construction, probably anywhere under, honestly, $250,000. I think new
construction is gonna be hard to find in that price range, so you’re gonna see, it’s gonna be
mainly existing homes. So therefore, I think we are gonna have some inventory issues that we
are gonna have to deal with. So, if you are thinking of selling, it’s an absolutely great time to
sell, best time it’s been in probably 5 or 6 years to sell a home. And if you are looking at buying,
I would go ahead and look into buying because prices are gonna continue to rise, interest rates
are still low, so it gives you the opportunity to go out there and hopefully lock in a good interest
rate for 15 or 30 years. If you should need anything real estate related, give us a call at 615-867-
November Housing Market Stats for Middle Tennessee are in! Tune in to hear John's take on what this means for you as a buy or a seller!
November 2014 Housing Statistics
John: Hey guys! John Jones. Tuesday morning coffee. Thanks for tuning in. Today we are
gonna talk about November numbers. First, we want to look at the month. We were up 10% in
closed sales over last November, so we are continuing the trend of double digit increases, which
started in September. Pendings are up 12%, so it looks like it could continue on into next month.
Active listings for the month are down 15%, so we have still got a little shortage of homes out
there. Average days on the market, this November 62, last November 65, so that is obviously
coming down a little bit. Average close price last November was $181,000, this November
$194,000, so prices tend to be increasing pretty nicely. When we look at year to date for the
year, we are up 9.6% for the year, so almost 10%, so we keep moving up on closed sales. Our
active listings are down 6% from this time last year, year to date, so our inventory is still
shrinking. Days on the market for the year are at 66, compared to last year, 71, so that number
looks good. Our average sales price, year to date, for the market is $190,000, last year it was
$175,000, so things are continuing to be very robust for the market. A lot of activity. If you are
a seller, don’t be scared of this time of year. I have talked to quite a bit of sellers lately and they
keep talking about waiting until the Spring, the Spring market. Well, guess what, there will be
more sellers in the Spring, so you will have more competition. If you have to sell your home,
don’t be scared to put it on the market right now, you will have a lot less completion. So, if there
is anything we can do to help you, call us at 615-867-3020. Thank you!!
During this episode of TMC John discusses the October housing statistics.
JOHN: Hey, guys. Tuesday Morning Coffee. Mmm, that’s good coffee. Talking about market statistics for October. Another crazy month. Last month, if you recall, was a really big jump in our percentage rate of closed sales and pending sales. This month, same thing. We’re up 30% over last October. We’re up 21% in pendings, which means we’re probably going to have a big November as well compared to last November. Year to date, we’re up. We have sold 9.4% more homes than we have last year. I anticipate that to get to at least 10% by the end of the year.
Our average days on the market are down 61 days, 61 days in October of this year, 68 days last year. Our average closed price is up from 181,000 to 192,000, so $11,000 increase in average closed price. Things keep trending up. I’m not 100% sure why. I know these rates are still low. How long they’re going to stay low, who knows? I’ve been thinking they were going to come down for three years now, so what do I know when it comes to figuring out rates? I don’t know anything.
What are we seeing going forward? I think we’re going to stay pretty vibrant. I see that a lot of people back at work. Our foreclosures are way down over what they were. I think they’re kind of washing out. The one thing I think we’re going to have to pay attention to, the cost of construction coupled with the fact the cost of development has gone up for a lot of different reasons. Materials, regulations, water tap fees. For instance, in the county right now our water tap fee was $1,000. Instead of just raising it a few hundred bucks, gradually, they raised it to $2,800. Well that $1,800 somebody’s got to pay for it, and ultimately it’s the buyer of the home.
The electric company is charging where they used to go into subdivisions and supply the electricity, Middle Tennessee Electric did to have the customer base. Now they’re charging upwards of $900 per lot. That used to be zero, so I’ve just given you $2,700 right there and nothing’s been—you don’t really get anything else for it than what you were getting before the charges. So there’s a lot of things going up, and it’s going to make the cost of development, the cost of lots are going to be more expensive, which the market’s going to have to work it out for us. But bottom line is builders are going to have to really be smart and probably not be able to give you as much in the home if it’s the same square footage. And of course, gradually, the prices are going to go up.
Anyway, that’s what I have. Call me if you need anything real estate related, 867-3020. Thank you.
Tune in to hear about John's new No Stress Listing Agreement!
JOHN: Hey, guys. John Jones here, Tuesday Morning Coffee. Happy Veterans Day. I want to
thank all the veterans out there that have served this country and are currently serving this
country. Thank you so much from the bottom of my heart for protecting our freedoms of this
country, and just thank you. Thank you for your service and your sacrifice. Today, I want to talk
about our new plan we’re rolling out. It’s called the No Stress Listing Agreement or Marketing
Just about two weeks ago, I moved out of a property myself, and it let me remember and let
me have more compassion for the folks that we help every day on what a stressful thing moving
is. I hate it. I’d rather lay down and let you kick me for 30 minutes than have to move. With this
No Stress Marketing Agreement, let me tell you what it offers our clients. Number one, it gives
you free staging consultation. We have a stager on staff that can come in, help direct you on
the things you need to do to get top dollar for your home as far as decluttering, color changes,
anything like that. She’s awesome. She’s a professional.
The second thing, the free use of our moving truck is a part of this agreement. We have a
moving truck, a 15-foot box truck to help you move things and get things organized if you need
it. Another component of this agreement is there’s no time limit. You fire us anytime you want.
We’re not going to tie you into some big agreement. If you don’t feel like we’re doing the job
for you, you fire us. The fourth thing is if you find the buyer on your own and we had no
procuring costs to finding that buyer for you and you want us to step aside of the transaction,
you don’t owe us a dime.
It’s hopefully to take stress off of you, to help you, to make this as easy as it possibly and stress
free as it possibly can be. Thank you so much. I appreciate it, and if you need us, we’re at 867-