Today in this video, we’re going to talk about the seller’s market and the shortage of inventory that’s happening not only Nashville, but all over the country. Check it out.
Hi, my name is Rhonda Burgess and I’m a real estate broker and mortgage underwriter here in the Nashville, Tennessee area and my firm is Southern Living Realty Partners. First of all, just let me say, hey, I know it’s been a minute.
It’s been a real minute. I appreciate all the phone calls, text everything. I’m sorry to have been away from you all so long. This shortage of inventory is real. It’s all over the place, it is all over the place. You know, covid set up a perfect storm in a way, because when everybody was on lockdown and we couldn’t go anywhere. A lot of people were like, OK, maybe those people who were thinking about selling have now said, well, I’m not going to sell, we just go stay where we are.
So home improvement, remodeling, stuff like that has been going through the roof. I had a client the other day. He owns a cabinet shop, custom cabinet shop here in Middle Tennessee. And he said he’s had to cut off two or three of his newer home builders because he can’t keep up with the demand. Plus, people just refinance and and take the money out and redoing their houses. So he said he’s covered up. He’s running like three, four months behind on the amount of work that he has.
And that’s I’m hearing that from a lot of my home improvement contractors, that they’re just covered up work because people aren’t moving. Or on the flip side, people who may have been living, you know, maybe you had a crazy commute and you were living in the city or whatever, and now that your job has gone virtual or practically virtual and you can work from anywhere, we’ve we’ve seen a lot of people wanting to move to new communities, new areas.
So that that’s that’s increased the demand, plus you’ve got fewer people who want to move. That’s increase, you know, that just makes the inventory even less. Plus, the interest rates are so low that a lot of people can can now afford more, but there’s no house for you to buy. Let’s just be honest. Some of you all have missed your boat. I did a video, I don’t know, I guess it’s been a year or more ago where I said some of you all have been priced out.
You have you been priced out? I saw on the news the other day it said, like, the median house price in the United States is like 377,000. It was something ridiculous. It was it was very high. That’s the median price. Some of you all have been priced out. I had a conversation with one of my adopted children the other day and she kept saying, well, I don’t want to spend no more than $220,000.
And I kept saying, well, you aint going to buy nothing. Well, I don’t want to spend no more than $22,000. OK, again, I’ll say it again, you ain’t going to buy nothing. It’s no different for her than it is in my other clients or anybody else. Some of you all have been priced completely out of this market. I’m sorry to tell you. You’re just priced out. One thing that I’m seeing a lot of, OK, so some of you have been paying attention, you’ve put in the work, you’ve gotten your credit together, and now you can get approved to buy a house.
You don’t get to 100 percent. You got proof of 100 percent financing or or you do an FHA and you do it like 97 percent or whatever or, you know, so you only need three percent down. OK, and now you finally got your three percent to put down. You still got bannered. When I tell you that every single house when it comes on the market will have 30 to 40 showings within the first two days. Within the first two days.
And there will be multiple, multiple offers. Now, most of the time, what you see is putting in the MLS, it’ll say, OK, it comes out on a Friday. It’ll say, you know, you can show it this weekend, you know, schedule appointments, we’re only allowing 30 minute appointments will allow and 15 minute appointments because we have so many people that we know are going to want to see this. And your best and final is due Monday by four o’clock.
Your best and final, what you need to look at right now is that list price, the asking price is just that next year, beginning be price. Because everything just about every single house is going well above the list price. So if you do not have the money to make up that difference, you’re not getting a house if you don’t have the money to pay your own closing costs, you’re not getting a house. I’m sorry to be so abrupt with it, but some folk act like it must be us.
It must be us realtors. No, now look, I do I talk real bad about real because realtors make me mad sometimes. You know, I’m saying I can talk about things that I know about a realtor. Sometimes they just make me mad. I like to put the bad directions in there. They don’t answer my phone because I know how I am answering their phone. But anyway, I had a lady call me and she was like, yeah, you know, I want you to help me find a house.
I said, OK, and this is what I ask because that’s realtors. You know, we have a code of ethics that we have to you know, we want to know, are you working with another realtor? Are you are you under contract under a buyer’s agreement with another realtor? And she said, well, I’m not on a buyer’s contract, but I was working with somebody, but I don’t want to work with her anymore because we got beat out of, like, three houses.
For real, you think, OK, let me let’s go here, let’s go here, let’s go here. If the house get 20 offers, 20 offers, which is normal now, 20 offers in the first 48-72 hours, OK. The seller can’t pick nothing but one offer. So that means 19 of yall is not getting the house. That means 19 realtors ain’t getting paid, 19 realtors having to start over from the drawing board. 19 buyers did not get that house.
But why is it the Realtor’s fault? Look, this is the market, this is what it is. So I had to ask her, OK, so how far over asking price did you go when you was getting beat out? Oh, I refused to go over asking price. Well there it is, that’s why you getting beat out. That ain’t got nothing to do it with your realtor. I told her, you know what? You need to keep working with that realtor, because you know what?
She has put in a lot of effort running all over town, calling you on your lunch hour – girl meet me here so we can look at this house as soon as we hit the market and all this and all that. Look, even builders is getting cutthroat with it. If you not in. I saw this the other day. The builder said we ain’t got nothing but five lots left, OK, and we’re going to open up these lots at 7:00 o’clock on Monday morning. If you’re not standing in line with your client at seven o’clock, you not even go get on the list. We’re not even putting no more on our waiting list. OK, so why is that the Realtor’s fault? I’m sorry, but you know, what I’m saying is, like I told our lady, you need to go back and keep working with that realtor because she’s putting in work. She’s putting in work. You’re getting beat out because of you. You know, don’t and she said, yeah, I refuse to go over list price and I wanted the seller to pay my closing costs.
Are you confused about why you got beat out, because I can tell you you got beat out by a cash offer or you got beat out by somebody who said, OK, the house is for $300,000. I’m going to offer you $320,000 and I’ll bring the $20,000 to the table and I’ll pay my own closing costs. Hello. Come on now. Yall acting like this is new, this is not new, and you just want to believe that just because it’s you, this is not how the market is.
Yes, it is. I’ve been telling you for two years going on two years now. You need to bust a move. You need to bust a move. You need to bust a move. I did a video, said you needed to bust a move before the new FICO score came out. I’ve been telling you, I’ll get your stuff together and I’ll take you get you got to get your money right. If you ain’t got the money to pay your own closing costs, if you ain’t got the money to go above list price, you will not get a house right now.
I’m sorry, it sucks, it does. Don’t get me wrong, this is a hard market. I don’t like this market. I had somebody else tell me. Oh yall realtors the ones driving up the price. Yall the ones getting over. No, like I told you, it it’s20 offers, 19 of us is not getting paid. 19 people aint eating. OK. Now, some of us are more fortunate than others because we have a referral base, we’ve been doing it, I’ve been doing this since 97, 98 some I don’t know, a long time, OK, but some of us have a referral base.
We have repeat clients. You know, we’re out here on YouTube. We’re doing stuff like this. OK, so some of us still have a base of business, but a lot of us are starving. Let’s just be honest, OK? Everybody’s not eating right now. This is an ugly market. This is real ugly. Nobody wants to run around and show you multiple, multiple, multiple houses and you getting beat out.
That’s deflating for us as a realtor too. This is not a good look. OK? I don’t know what else to say, but this is why you’ve got to get your stuff. You got to have your stuff so together from the rip. Not only do you need a preapproval, you need to prequalified and prequalified.
What does that mean?
What I mean, I need for the underwriter to have looked at your stuff. I need for you to have an approval in your hand that they have verified your assets. They have verified your income, they have verified everything. And you need to get your money right. I’m going to say this one more time. How many more times I got to say this now? Y’all need to get your money right. You come to the table, OK? The days are over when you can get 100% financing and the seller gonna pay your closing costs or coming to the table and you thinking you’re going to get your little $500 earnest money back at closing.
What are we doing? Come on, y’all better listen. I don’t know how many times we got to tell you this. Things are going above the list price. I seen it one of my Facebook groups the other day this lady, now I know this is a different market. Don’t get me wrong, but I just want to tell you show you this is an example of what’s going on all over the country. I do believe she was in California. They bid $750,000 over the list price and got beat out.
Do you hear me? People going with no appraisal contingency, no inspection contingency, no nothing. And they’re willing to go way and above the list price. If you can’t hang with that, if you can’t compete, then sit down. I don’t know any other way to tell you this. But don’t bad mouth the Realtor when they doing – we doing all we can. We don’t set the price. The market sets the price, Only thing we can do.
Look, I can go to a seller and tell them all day long – your house is worth $300,0000. If they say, OK, cool, I hear you. I appreciate what you say Rhonda but know what I want to list at $350,000. Coolio, I’m gonna list it at $350,000 because that’s what they asked for. That’s what they want. The seller sets the asking price the market sets the sales price. I did a video. OK? I told you when all the institutional buyers were sitting out.
You had a little window of opportunity. You should have got on it. You should have got on it. They are all back now. Zillow not only be buying houses now, no they are a brokerage. They compete directly with us agents. OK, so they going in not only offering to buy these people house for cash, they playing Realtor now. Do you see how you get the little person you getting beat out? You getting can beat out all the way around. You’re competing against Opendoor. You’re competing against Zillow,. You’re competing against everybody – these people with this cash money. Cash money. Let me tell you something. So if you don’t have your stuff together and you, you got to have your money together, you got to have your credit together and you’re going to have to start looking in some other areas other than your preferred area.
The last three buyers that we closed were all Amazon employees. They’re coming to the new logistics hub that Nashville has won. They’re coming now because they already see the interest rates are low. Let me go and bust a move right now before it gets even any worse. OK. Just the other day on the news, Oracle, I already told you this, Oracle is moving a whole headquarters from California to Nashville to Nashville, Tennessee. Ok, Amazon, they say that their positions are going to pay like $150,000 on average, Oracle said we’re going to top it. We pay like $175,000 average salary for these headquarter jobs that we’re going to move to Nashville. So, again, you all are competing with these people with not only competing with the institutional cash buyers and investors. But even the people who’s going to live here, who’s going to live in the house. It’s going to be owner occupied. They come in from these high cost places and they got the money to do it.
Again, my name is Rhonda Burgess and I’m a real estate broker and mortgage underwriter here in Nashville, Tennessee. You can go download the HomeScout app, use my VIP code 0832. But just know the pickings are slim, pickings is real slim. If you need help with selling a house, give me a holler. You can get probably just about anything you want right now if you’re looking to sell a house. at any time, you can reach me. I do answer my phone. I do call you back. I do text you back. My number is 615-554-0832. And as always have a blessed day.