Suddenly, a truce in bidding wars for $1M-plus houses

(As seen in the 6/30/23 Ledger column)

Historically, most real estate closings have occurred during the last few days of the month with a majority of those closing at the end of each month since that allows buyers to pay less in prepaid interest.

In real estate transactions with conventional financing, a loan that closes in a particular month – we’ll use June as an example – would have its first monthly payment due Aug. 1. Since interest is paid in arrears on mortgage loans, the August payment would include July interest. Therefore, if a person closed in June, the interest for June would have to be collected at closing.

Buyers closing June 1 would pay interest for 30 days at closing. But buyers closing June 30 would pay only pay one day of interest. Either way, the first payment would be Aug. 1. And, either way, buyers pay interest for every day they own the property.

Recently, however, there have been more mid-month closings, says Jerry Patterson of First Title and Escrow. Some attribute that trend to renowned Realtor Christie Wilson of the Wilson Group. Wilson has long recommended to her agents and anyone within earshot that closing in the middle of the month separates her clients from the pack and allows them to receive more attention from lenders and title companies alike.

That strategy is viable and, after all, they only pay interest during the time they own the home. If there is a shortage of cash, the end of the month is an oft-used vehicle to save some cash when purchasing a home.

In any case and for whatever reason, 18 homes of $1 million or more closed last week, Realtracs reveals. As has been the case in the past few years, those sales were scattered all over town with one in Forest Hills ($1.075 million), five in Oak Hill ranging from $1.1 million to $2.95 million and another in Sylvan Park for $1.225 million.

Additionally, there were sales in Abbottsford ($1.695 million), Otterwood ($1.9 million), Cherokee Park ($1.895 million), five in Green Hills ($1.45 million-$5.385 million), one in Treemont ($2.75 million), another in Sugartree ($1.45 million) and one in West Meade ($3.775 million).

Of the 18 sales, 13 for less than list price with variances from as little as $10,000 to as much as $225,000, while five sold for the list price and none sold for more than list price.

Fifteen sold in less than 60 days, one in 94 days, one in 173 days and one 215 days on the market.

Sellers are selling, and buyers are buying, but in the $1 million range, the bidding wars seem to have taken a break.

SALES OF THE WEEK

The most expensive sale was another Stone Oak Builders home located at 4310 Esteswood Drive, a street tucked behind Harpeth Hall. The 7,179-square-foot home sold for $5.385 million with five full bedrooms, five full bathrooms and two half bathrooms.

Listing agent Richard Bryan, who represents Stone Oak, noted the house was built new in 2022 and renovated in 2023. It sold the first day on the market.

Stone oak is well-known for building quality homes and checks all the boxes for upper-end houses. There is a four-car garage, which is now more in demand than ever with five-bedroom houses in the area as at least one child, if not two, will drive their own vehicle.

The price equates to $750 per square foot. Therefore, those moving into Green Hills looking for five bedrooms in a newly constructed home on an acre lot can use $750 per square foot as a guide.

Nancy Brock scurried over to the property with a buyer with cash in hand and beat all of the other suitors to the punch.

Wherever that recession that has been looking for the past year is, it is not in Green Hills. It is interesting that of the 18 sales last week, none were in Belle Meade, a community that usually leads the way in higher-priced properties.

Coming in second place last week was the house located at 784 Brook Hollow Road that sold for $3.55 million with 6,688 square feet. Originally listed for $3,775,000, this house was listed by its owner, according to the information on the multiple listing service. Selling for $531 per square foot, the six-bedroom, six-bathroom home is also situated on a lot that was almost an acre and includes a three-car garage.

This house was built in 2023, as were all of the sales of $3 million-plus last week, except the Sunnybrook house, which was built in 2015.

Clay Tate of Parks listed the home on Brook Hollow along with Mary Frances Evers, who is with Viva Properties. The Partners, Lovers and Friends team of Kim (Coco) Fennel and John Lott represented the buyer.

Another 52 weeks like last week, and Nashville can rest over the Fourth of July.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at?[email protected] .