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Franklin, TN Real Estate Reality

By Mike Grumbles

Real Estate Agent with Gray Fox Realty TN Lic #300607

September 28, 2011 09:40 AM

Franklin, TN Real Estate Reality Buyers and Sellers need to read this blog post if they are considering to be involved in a real estate transaction in Williamson County, TN or the cities of Franklin, Brentwood, & Spring Hill. The market in Williamson county is somehow protected as if in a bubble of some sort, so do not compare FOX national news headlines to this real estate market. Take a look at the table below.

Williamson County Market Research Sep 2011

What I want to point out in the table above is for a few things , some specific to Sellers and some to Buyers. For Sellers:

In Franklin $650,334 is the average home list price, THe average home price of sold homes is $399,738. The Median active price in Franklin is around $420,000. So that means that there are a few very priced Franklin Homes creating a drastic difference from the median to the average price in Franklin. But also shows that BUYERS are wanting to buy below the average home price in Franklin, typically meaning a smaller house or one where the price is lower. So if you are a SELLER and you have a high-end home to sell, your pool of buyers right now is reduced.
In Franklin on average over the past 6 months, sellers that got their homes sold were less aggressive with pricing discounts than Nolensville. They reduced their prices by just over 2% and were still willing to negotiate at the time of offer on average another 4.5%. Nolensville sellers dropped their prices 7% to get offers and then only 1.2% at the negotiation table. Nolensville is a smaller market but because of this aggressive price strategy they have a market with less inventory based on absorption rates (months of inventory).
Pending Ratio indicates where the market should be headed in the next 30 days. Nolensville for example has a lot of properties PENDING and thsus their inventory should be dropping rapidly. That will reduce a buyers choice (supply) and thus a prioce reduction is not in order at this time (if priced correclty to begin with).

The Grumbles Team utilizes this proprietary table to relay to our sellers how to properly price a home and also how to respond to an offer when that time arrives. For Buyers:

Looking for a market that is stable, then choose markets above that have less months of inventory as they will likely begin to stabilize the price. Simple SUPPLY v DEMAND logic.
In Williamson County there are no markets where the buyer can come in ans (on average) swoop up properties at $0.50 on the $1.00. The above table includes all Single Family Residential home sales and that includes Foreclosures and Short sales and yet the average negotiation discount is less than 5%. So, sure you can make a real low ball offer, but don't expect to always get that based on nationwide news networks.

The Grumbles Team has prepared these proprietary reports and will share this data with our buyers so that their dream home doesn't escape them, and they understand the rationale behind a sellers counteroffer. To have access monthly to this Total Market Overview for your area, please contact the Grumbles Team or follow our blog. We post this data monthly for Williamson County but can provide your county data by city and zip code directly to your email inbox. Study the table above and whether you are selling, thinking of moving, or looking to buy in Williamson County or surrounding areas, contact the Grumbles Team with questions on the data. We can be reached at 615-587-5843.