So I decided to put these sites to the test on a recent sale I had in West Knoxville in Fox Run on a home located at 12530 High Forest LN. I sold the home for $425,000 in March of this year. So I went to Zillow and look up the value they had on the home which was $491,100 is the value they had for the home. So you are thinking the buyer made a heck of a buy on this one. Next I went to Trulia $388,493 …OOPS they buyer paid TOO MUCH!!!

The is the problem with these sites they are all over the place when it comes to values on homes. That is exactly the point of the article in Smart Money which is causing many buyers to believe that these sites are sharing true market value.

Here in West Knoxville our Neighborhoods have felt prices fall back because of the economy but not to the point of some other parts of the country. Recently I wrote about values in Montgomery Cove and Mallard Bay and as you can see in the post things have remained pretty steady of the last couple of years.

The best way to determine value is to have your Realtor run the comps for you on the home you are interested in buying. That way you can make an informed decision and make an offer based on those findings. You will know if the seller is asking too much, price right or too low from the other homes that have sold.

Need Help? Call Me 865-696-9002 or email me Rick@TheBigOrangePress.com would love to help you find your next home.

1. Am I okay with being a seller in a buyer’s market? In the current West Knoxville real estate market, there are currently more properties for sale than there are buyer’s to buy those properties for sale. This means buyer’s are the ones calling the shots. Sellers trying to sell their West Knoxville home must understand that they might not necessarily get the price they were hoping for and it may take longer for the home to sell. This is not to sound all doom and gloom about the current West Knoxville real estate market.  There are still people buying homes and there are homes selling. Being a seller in this current market, just requires a bit more patience and flexibility.
2. How can I price my home so it sells quickly? Look at other properties in your neighborhood or in the area that are currently for sale. How does your home compare to those? Is it in better condition? Does it need more work? Consider talking to a licensed agent, who can provide you with a list of comparable properties that have currently sold in your area and your price range.
3. Are there any repairs or improvements I should make before putting my home on the market? You know your home better than anyone. Do you still have damage from the Spring 2011 Hail Storm? Could the inside use a little fresh paint? What can you do to make your home sell quicker? Consider the cost of the repairs and if they would make your house more marketable to potential buyers.
4. Should I sell my home all by myself? Or should I use an agent? Having an experienced agent can greatly improve your odds of selling your home. If you are trying to sell it by yourself, your home will not be listed on the Knoxville Multiple Listing Service. Also, buyer’s agent is less likely to show your home, since they receive their commission from the list agent.
5. Am I ready to move? And, am I committed to selling? Preparing to sell your West Knoxville home is a big commitment. You want to make sure you are ready to take all of the necessary steps to make sure your home is as marketable as it can be. In the current market, it takes some patience and flexibility to make the move happen.

There is a lot to think about when it comes to selling your West Knoxville home. If there is anything I can do to help make this descision easier, please do not hesitate to contact me by phone at 865-696-9002 or send me an email. Are you considering selling your home? If so, is there anything holding your back?

Today, I’m doing the first of 3 posts on how to help you determine, find and close your “deal.”

Determining your “Knoxville Real Estate Deal” …I think if you spend sometime determining what is important to you it will make your search simple and much more enjoyable. All you need is a pad of paper and I will share with you the questions I use to help my buyers determine what is important to them in finding their “deal.” Remember this is personal decision it is a big financial decision and monetary commitment on your part so take sometime in doing some pre-planning and you will have a successful out come.

Here are a few questions…..

What do you want? Determine the type of housing you want to buy. Do you want a single family? How about a Condo or a PUD?

What does the home have to have? How many bedrooms and bathrooms? Do you need a garage? 1 or 2 car? Basement? Master on the main? How big 1500, or 2500 sq ft ? Just give some thought on what your wants desires and needs are in a home.

How much work do you want to do? Foreclosure or short sale? Some need alot of work…New Kitchens, roof , plumbing etc. Do you want to do that much? Can you handle some decorating? Paint and Carpet…Homes are an expensive investment determine a budget and how much your budget can handle.

Where do you want it to be located? Do you need to be within a certain driving distance to work? Want to be in the country with no neighbors? Want a neighborhood with a pool? Location is an important factor when determining were to buy a home decide were you want to live. That way you can fine tune your home search to just the areas that are important to you.

Get Approved For A Loan? Find a loan officer you are comfortable with and setup a time to discuss your financing options. There are many choices out there and a good loan officer can help you determine the best program for you. Need help finding someone? Ask friends and family for recommendations. I personally would suggest Daren Poppen at Mortgage Investors Group apply on line or call him at 865-936-3965 or email him Daren.Poppen@MigOnline.com

Find A Realtor… This is important to find someone you are comfortable working with in finding a home. Ask friends and family members for a referral for someone. Setup an interview to meet them make sure they have the time and patience to help you. One crucial area is taking your time to become educated with the market so you make the right purchase for you. There is an old saying you will know it when you see it. I find this all the time it doesn’t matter if it is your 1st..2nd or 10th home people always know it is the right home when they walk into it. It will feel right to you.

Above is what we do with our buyers in a strategy session as we call it. If you need help finding a home and would like to setup a strategy session, call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

Happy House Hunting!

1. Right now, you can get a great deal on a West Knoxville home. There is no denying right now is a great time to buy. Interest rates are at historic lows. Instead of being in the high 6.0% interests rates, rates are significantly lower in the 4.0% range. Also, home prices are at historic lows. In 2009, the average sales price of a 4 bedroom home was $308,500. In 2011, the average sales price for a 4 bedroom house was $251,500. That’s $57,000 drop in price in 2 years.  For someone planning to stay in the Knoxville area, right now is the time to buy a home. Low prices and interests rates = big savings!
2. The monthly mortgage payment you currently make on your West Knoxville home will remain the same. So long as you have a fixed rate mortgage, you payment will be the same in 5 years, 10 years, and beyond. Knowing what your monthly payment will be down the line, allows you to plan and budget more easily.
3. Homeownership allows you more freedom to make your home truly feel like your home. Are you sick of not being able to decorate the way you want to in your apartment? Would you like to have your own private yard to landscape the way you want? Homeownership offers you the freedom to take advantage of decorating, designing, and remodeling on your own terms. You won’t have to worry about being charged when you move out.
4. You are much more likely to build relationships with your neighbors. People who rent are tied to short term leases, so they are much more likely to come and go more frequently than those who own their homes. People who own their homes have more shared space to get to know the people around them. With community pools, clubhouses, and other shared areas, people are much more likely to build relationship with their neighbors.
5. When you buy your West Knoxville home, you are not throwing your money away. Every month when you pay your rent, you know you will never see it again.  When you buy a home, you build equity over time. The current market should not deter you from buying, experts say it will recover over time. Buying a home in Knoxville is an investment, and if you are considering buying, you are probably planning on staying awhile, so that will give time for the market to recover. Right now, is a great time to get that investment at low price.

With prices and rates at historic lows, now is a great time to buy a home in West Knoxville.  If there is anything I can do to help you in your home search or any questions I can answer about buying a home in West Knoxville, please to not hesitate to contact me. You can give me a call at 865-696-9002, by email, or leave a comment on this post.

What do you think about buying a home in West Knoxville? What are you waiting for?

1 BE PATIENT…Knoxville Short Sales should really be called “Long Sales” because they are anything but a short process. You have to remember you are asking the lender to accepted less than what is owed on the home. This can be a long and drawn out process especially if there is more than one mortgage on the property. So it takes time and a great deal of expertise on the agents part to get a short sale accepted. The process can sometime take 5- 7 months to get it done and for the most part nothing happens for months. But if you are patient and hang in there the opportunity to buy a home at a HUGE discount are a strong possibility.

2. GET APPROVED FOR A LOAN… Get with a lender up front and don’t just get pre-approved but a full blown approval. Get all the a paperwork out of the way so when the short sale is approved you can close quickly. For the most part a short sale is like watching paint dry on the wall. You sit around waiting for what seems like forever than all of a sudden the bank approves the short sale and want you to close in 30 days or less. That is why it is so important to get you financing taken care of up front.

3. GET THE APPRAISAL DONE UP FRONT… You are thinking why would I want to spend the money on an appraisal when I don’t know if the lender will accept my offer? Here is why you should do it. The lender is going to order a Brokers Price Opinion on the home. Which means they are going to ask a Realtor to go out and tell them what they think the house is worth and pay them $50 to do it. I have had these BPO come back higher than the offer I have on the home sometimes. If I have a full blown lenders appraisal already on the home it increases out odds of getting our offer accepted because it is hard for the lender to argue with an appraisal.

4. GET THE INSPECTION DONE UPFRONT…When you buy a short sale you have to understand the seller and lender aren’t going to make any repairs. You are buying the house “as-is” so if there are problems with the home you should know it upfront. That way you don’t spend months waiting for an answer only to find out the house has inspection issues you don’t like. You could end up missing another opportunity if you don’t do it up front.

5. GET AN EXPERIENCED AGENT….Find an agent who has experience in dealing with short sales and can help and guide you through the process. Check out the site the site CDPE.com Certified Distressed Property Experts. The agent with this designation are trained in handing short sales and can guide you through the process.

If you have interest in buying a short sale in Knoxville give me a call and let’s talk. I have an experienced team in place and we have help many first time buyers make tremendous buys on some homes over the last couple of years. We understand the process and work with you to get the deal done.

Call me at 865-696-9002 or Rick@TheBigOrangePress.com

You can get a house at a bargain price now — especially if you play hardball. This is a buyer’s market. Most of the other buyers have vanished since the tax credits on purchases expired.

We’re four to five years into the biggest housing bust in modern U.S. history. We have been lucky in Knoxville compared to other parts of the country and haven’t seen huge price drops but our prices are down.

Will prices fall further? Sure, they could. You probably won’t catch the bottom, but it doesn’t really matter so much in the long haul.

You can get a 30-year home loan for about 4% range on 30 year mortgages. WOW!! What’s not to like? These are the lowest rates on record. As recently as two years ago, they were about 6.5%. That difference in monthly payment is huge.

If inflation picks up, you won’t see these mortgage rates again. And if we get deflation and rates fall further, you can refinance.

When you own, you can have the kitchen and bathrooms you want. You can move the walls, build an extension — zoning permitted — or paint everything bright orange. We love Orange in Knoxville!!

Right now with rates low my buyers are finding they can actually get a better home for less money than renting a home in Knoxville.

What I’m advising my buyers to do if they can afford it is take a 15 year mortgage. Buy something that is comfortable for you both housing wise and payment wise. Then put it on a 15 year note at below 4%. The buildup in equity is huge and when prices do begin to rise again. You could sell the home and have a great deal of equity to put down on the next home.

There is a glut of homes on the market in Knoxville. Our inventory levels are higher than they were a year ago. Put that together with low rates and it makes it a GREAT time to buy.

Demand and supply will meet. Meanwhile, this housing glut will work itself out. he housing market goes in cycles and at some point we will come out of the current market.

If you want some help or have any questions call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

The real estate market in Knoxville has changed more in the past couple years than I believe it changed during the prior 10 years combined. The number of ready, willing and capable buyers today is at the lowest level I have seen while the number of homeowners who truly need to sell their homes is approaching record levels. This translates into fewer buyers buying while a greater number of homes remain on the market unsold.

Years ago many real estate professionals bought into a concept that I like to call the real estate Walmart pricing method. Instead of pricing a home at $200,000 they would price it as $199,900 because they thought it sounded better. The real estate landscape has since changed dramatically and with the addition of consumer friendly online MLS systems and the real estate listing websites that allow consumers to search for homes…that same $199,900 listing price will now eliminate 50% of your buyers instantly and here’s why:

• $199,900 is an odd number price and home buyers do not generally search for anything other than even number prices such as $100,000, $125,000, 150,000, $175,000, $200,000, $225,000, $250,000, $275,000, $300,000 and so on.
• A home priced at $199,900 will only show up on a search of $150,000 to $200,000 and it will be invisible to anyone looking at $200,001 or higher.
• When your home is priced at $199,900 it won’t show up when a buyer is searching for homes priced at $200,000 to $250,000 and it won’t show up when they are searching for homes that are priced between $200,000 to $300,000.
• By pricing your home at $200,000 you will instantly connect both price ranges together and this is where the name “Price Bridging” comes from. The $200,000 listing price can quickly and effectively double the number of buyers who will be exposed to your home.

This price bridging method can be beneficial to you regardless if your home is valued at $50,000 or $500,000. If you are interested in obtaining the maximum exposure for your Knoxville Area home let’s talk. I have the most aggressive on line marketing program in the Knoxville market call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

The number of single-family Housing Starts rebounded in August, climbing 4 percent from July’s 14-month low.

A “Housing Start” is defined as a home on which construction has started and the August increase represents 18,000 single-family units nationwide.

If you only read the headlines, however, you would think the data was stronger. This is because the Housing Starts data is actually a composite of 3 types of homes — single-family, multi-family, and apartments — but  the press tends to lump them all three together.

As a sampling, here are a some headlines on the story:

• US Stock Futures Rise After Housing Starts Surge (WSJ)
• Housing Starts At 4-Month High, Hint At Stability (Fox)
• Housing Starts Jump 10.5% In August (Marketwatch)

Now, it’s not that the news is wrong, per se, it’s just not necessarily relevant.  Few home buyers  in Knoxville are buying multi-family homes or entire apartment complexes. Most buy single-family and, for the first time since April, single-family starts are on the rise — just not by as much as you’d believe from the papers.

Even still, we can’t be entirely sure that the August Housing Starts data is accurate anyway.

A footnote in the Department of Commerce report shows that, although single-family starts are said to have increased 4 percent, the data’s margin of error exceeds its actual measurement, meaning the data has “zero confidence”.

In other words, starts may have dropped in August, but it’s something we won’t know for sure until revisions are made later this year.

Sales of existing homes in recovered in August, perhaps the result of a post-tax credit normalization.

As compared to July, Existing Home Sales rose 8 percent in August, buoyed by falling interest rates and slow-to-rise home prices. There’s lot of “good deals” out there and home buyers in Knoxville are taking advantage.

The housing gains are relative, however. August’s total units sold barely crossed 4 million and still trails the average figures of the last few years by close to 1 million units.

Despite that, the August Existing Home Sales report can be considered a strong one. This is for several reasons:

1. Sales volume increased in August without tax credit or government intervention
2. Sales growth is not limited by geography. All 4 regions — Northeast, Southeast, Midwest, and West — showed improvement last month.
3. Repeat buyers are driving the market, representing 48 percent of sales, up from forty-three percent in July.

And, perhaps most important to the housing market market, the number of available home resales dropped by almost one full month last month.  At the current sales pace, the national inventory would be depleted in 11.6 months.

For home buyers, the data presents an interesting opportunity. With average mortgage rates rising from their best levels ever and home affordability cresting in places like Fox Run , this autumn may represent the turn-around point for the housing market nationwide.

If you’re planning to move in early-2011, consider moving up your time frame.

The number of home resales plunged by 1.4 million units in July, according to the National Association of Realtors®’ Existing Home Sales report.

It’s a drop of 27 percent from June; single-family home resales are at the report’s lowest levels since May 1999.

Furthermore, because of the sharp drop in sales volume, home inventories are spiking.

Homes for sale nationwide fell just short of 4 million units in July and, at the current sales paces, it would take 12.5 months for the existing inventory to be absorbed.

Home supply was just 8.9 months in June.

For home sellers in Maryville , the Existing Home Sales report is a bit of bad news.  Fewer sales and larger inventories put negotiation leverage in the hands of the buyers which, in turn, creates downward pressure on home prices.  It may also increase time-on-market.

For home buyers, however, the data is decidedly welcome. After a stimulus-driven spring buying season that favored sellers, the summer and early-fall market seem to favor buyers. More choices and more leverage is a positive.

It helps that home affordability is up, too.

Although there’s reports that home values are rising, their modest gains are more than countered by the ongoing rally in mortgage rates. Freddie Mac says that 30-year fixed rate mortgage rates are at their lowest levels in history and, at today’s rates, every one-eighth drop in mortgage rates roughly offsets a 1.5% increase to home price.

Mortgage rates are down 0.75 percent since mid-April.