Well if you have been watching the Knoxville real estate market you heard that homes sales dropped a whopping 27% last month So what do you do if you live in Knoxville, TN. You want to sell your current Knoxville home and buy another home?? Wait until things get better…when will that happen? From Part 1 we talked about the market from a seller’s prospective. Today I would like to cover today’s market from a buyer perspective and how i think you should proceed in making a smart buy in Knoxville real estate market.

Educate, Take your time, hire a good agent….

Educate…Take your time to know the market trends and pricing in the area of Knoxville you want to buy a home. Check out on line sites like Zillow.com for values. These sites may not be 100% accurate but they will give you and idea on pricing in different areas around Knoxville. Look at the transfer’s in the Knoxville News Sentinel on Sunday or on line. Your BEST source for values will be a good Realtor who represents you as a buyers agent and is willing to spend the time with you and help you.

Take Your Time…Unless you are under a time crunch to buy take your time and shop around for the best value for you. Have what I call “walk away power” if the seller is unreasonable to your price and terms walk away. There are plenty of opportunities out there for you. Don’t be completely unreasonable but by knowing the market you will know the values and if you are getting a good deal or not. Once again that is where having a Realtor who is on you side will help you in your decision process.

Hire A Good Realtor…A good buyers agent cost you NOTHING… FREE to you so why would you want to go it alone.. Get an experienced agent who is going to work with you and understands your wants needs and desires. Where do you find one…ask your friend, relatives, loan officer the internet. Ask around there are plenty of good FULL time agents out there to help you. Don’t trust your biggest investment to a “part timer” hire someone who is full time in the business. Get someone who want to work for you.

If you are looking for some help let me know. I love to work with buyers. It doesn’t matter to me if how big or small I will take the time to work with you to fine your home. I have developed  TheBuyer411.com to make your buying experience painless and stress free as possible. Call me at 865-696-9002 or email Rick@TheBigOrangePress.com if I can help you.

]]> http://thebigorangepress.com/2010/09/01/homes-sales-drop-but-knoxville-tn-is-a-great-place-to-buy-part-2/feed/ 0 http://thebigorangepress.com/2010/08/31/knoxville-mortgage-rates-may-be-low-but-watch-the-bouncing-ball/ http://thebigorangepress.com/2010/08/31/knoxville-mortgage-rates-may-be-low-but-watch-the-bouncing-ball/#comments Tue, 31 Aug 2010 12:46:20 +0000 Rick Smenner http://thebigorangepress.com/?p=1939

Mortgage rates are low right now but pinning them down this week could be a challenge. As Labor Day Weekend nears and Wall Streeters take their head-start on the holiday, trading volume will fall, which will cause mortgage rates in Knoxville TN to get jumpy.

As mortgage rates change, so does the long-term cost of owning a home. Every 1/8 percent adjustment changes a household budget.

Meanwhile, the relationship between “vacation days” and mortgage rate volatility is an interesting one; based more in scarcity than market fundamentals.

Rates tend to get volatile near holidays because of two inter-related facts:

1. Conforming mortgage rates are based on the price of mortgage-backed bonds
2. Mortgage-backed bonds can’t trade without a buyer and a seller at a specific price

So, as the week progresses and more traders leave for their respective “extended” 3-day weekends, there’s fewer buyers and sellers left on Wall Street to connect for a trade.  As a result, mortgage bond prices move across larger gaps than on a “normal” day which, in turn, translates into faster, larger changes in rates.

This phenomenon can be exaggerated during periods of economic uncertainty — like what we’re in now — and, furthermore, there’s a bevy of important data set for release this week including the FOMC Minutes, inflation data, and August jobs figures.

In other words, rates would have been volatile without the vacation week. The presence of Labor Day just piles on.

Mortgage rates may rise this week, or they may fall.  Either way, if you have a chance to lock something favorable and within your budget, consider doing it.  Rates are at all-time lows and likely won’t last.

Picking mortgage rates on where they will go in the future is like throwing darts at a dart board..For right now they are low, housing inventory is high making it an THE BEST TIME to buy a home in Knoxville, TN

If you need some help give me a shout and let’s talk 865-696-9002 or Rick@TheBigOrangePress.com

Season Opener for the Vols this weekend GO VOLS!!

Well if you have been watching the Knoxville real estate market you heard that homes sales dropped a whopping 27% last month So what do you do if you live in Knoxville, TN. You want to sell your current Knoxville home and buy another home?? Wait until things get better…when will that happen?

According to Local Market Monitor Inc., a Cary, N.C., firm that analyzes real-estate trends for lenders, builders and investors, compiled its first Investor Suitability Report using economic data through July 31 for 315 U.S. markets. Knoxville TN is the 4th BEST place to buy a home in the US according to a recent article in the WSJ.

Wow….you hear that the bottom is falling out on one hand and hear that Knoxville is one of the best places to buy on the other hand…

I’m going to cover how what you need to do as a seller and buyer in the current market here is Part 1 for sellers

So what do you do if you are a seller who wants to sell in this market? Well there are 3 things that sell a home that haven’t changed since I got in the business.

Location, Condition, and Price.

Location..Not much you can do about this your home is located where it is located.

Condition..This you can control. We all live in our homes on a daily basis so we look past clutter, the kids book bags in the corner you get the idea. We live in our homes with our fast pace lives don’t thing about these issues when we want to sell. If you are going to sell you need to look at your home through the eyes of a potential buyer. I get my sellers to work with a professional home stager before we put the home on the market. They can work with you to look at your home through a buyers eyes. My experience in the current market is staged homes sell faster. Does it cost alot of money?? Not really the stagers I work with work with what you currently have in your home. Most homes I sell my sellers spend less than $500 which is money well spend.

Price…Critical area and if you are serious about selling price it to for today’s market. Homes aren’t worth what they where a few years ago. I know what you are thinking but I need this much or I want this much…The home is worth what a willing buyer will pay for it in today’s market. Remember anything you may be losing on your current home you will be picking up on what you are buying. Those homes aren’t worth what they worth a couple of years ago either. Plus you will be getting into the lowest interest rates we have seen in years.

If you are thinking of selling call me and let’s talk about your home 865-696-9002 or email me Rick@TheBigOrangePress.com I have a comprehensive marketing program that is totally focused on marketing you home on the Internet. It is very exciting and will get you home SOLD quickly and save you money….

One day after the National Association of Realtors released the softest Existing Home Sales report since 1995, the U.S. Census Bureau released a similarly-weak New Home Sales report.

Americans bought just 276,000 newly-built homes in July. That marks the fewest units sold since the government started keeping records in 1963.

In addition, although new home inventory actually dropped 2,000 units in July, the slowing sales pace still managed to push the national supply higher by 1.1 months.  At July’s rate of sales, the nation’s new home inventory would be exhausted in just about 9 months.

None of this news should surprise you, though. It’s all been foreshadowed for weeks.

First, Single-Family Housing Starts have dropped in every month since April.  A “housing start” is a when a home starts construction and, because fewer homes are under construction, we should expect fewer homes to be sold.

Second, Building Permits are down.  The number of new permits peaked in March and have fallen 23 percent since.

And, lastly, home builder confidence ranks at its lowest levels since early-2009. A contributing factor in that pessimism is dwindling buyer foot traffic.

Regardless, there’s two sides to the story. Although the New Home Sales data looks bad for builders, it can be terrific  for you. This is because new homes are more likely to be discounted when the sales cycle favors buyers.

Coupled with ultra-low mortgage rates, the cost of buying a newly-built home in Farragut may have just become cheaper.

With home prices holding firm and mortgage rates still dropping, home affordability is reaching new heights.

According to the quarterly Home Opportunity Index as published by the National Association of Home Builders, more than 72 percent of all new and existing homes sold between April-June 2010 were affordable to families earning the national median income.

It’s a slightly higher reading as compared to last quarter, and the second highest reading in the survey’s history.

As with all aspects of real estate, however, home affordability varies by locale.

For example, 97.2% of homes sold in Syracuse were affordable for families making the area’s median income, earning the New York city its first “Most Affordable Major City” designation.  Indianapolis was the first quarter winner.

On the opposite end of the spectrum, the “Least Affordable Major City” title went to the New York-White Plains, NY-Wayne, NJ area for the 9th consecutive quarter.  Just 19.9% of homes are affordable to families earning the local median income, down 1 percent from last quarter.

The rankings for all 225 metro areas are viewable on the NAHB website but regardless of where you live, buying a home is as affordable as it’s ever been in history. Furthermore, because home values are in recovery and mortgage rates may rise, the market is ripe for home buyers in Montgomery Cove.

All things equal, buying a home may never be this inexpensive again. If you were planning to purchase later this year, you may want to move 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.

Over time, the grout in a shower can become dirty and discolored, and start to separate from its grout lines. This is a potentially dangerous condition for a home because broken grout lines allow water to seep into the walls, which can then lead to the growth of mold spores.

Fortunately, keeping your grout in tip-top shape is simple.

In this 2-minute video, you’ll learn how to clean the existing grout in your shower and to prepare for a new coating. You’ll also learn how to replace its caulk.

The video’s tips include:

• Why you should remove excess grout diagonally with a sponge
• How to protect your tub from damage while the re-grout is in process
• Choosing the right caulk for the job

The North American Tile Cleaning Association also offers helpful grout-cleaning advice. Visit their website at http://www.tilecleaning.org.

The tightening in mortgage-lending policies that characterized the last 3 years appears to be slowing.

According to the Federal Reserve’s quarterly survey of senior bank loan officers, roughly 1 in 10 lenders added mortgage qualification hurdles between April and June. It’s a huge departure from just 2 years ago when the mortgage industry was facing its first wave of challenges.

During that period, eight in 10 lenders added hurdles.

For mortgage applicants in Knoxville , this quarter’s Fed survey results signals that mortgage lending may have reached its limits of restriction.

Since 2007, mortgage guidelines have become increasingly restrictive. There’s extra scrutiny on assets and tax returns; employment history is given more weight; loan purpose matters.  There’s a bevy of traits that can stand between you and an approval that didn’t exist a few years ago.

That said, lots of homeowners are still getting loans.

Verifiable income, good credit scores and equity are the “magic formula” and banks want to lend to good credit risks. And the best news for those that qualify is that mortgage rates are fantastic right now.

According to Freddie Mac, mortgage rates are as low as they’ve been in history.

So, if you’re among the many wondering if now is the right time to buy a home — or refinance one — remember that, although mortgage guidelines likely won’t get worse, mortgage rates probably will.

Another week, another new low for conforming mortgage rates.  In fact, this week marks the 9th time in a row it’s happened.

Mortgage rates are (again) at their lowest levels in history.

The data comes from the Freddie Mac, a government group and major loan securitizer for the U.S. mortgage market. Freddie Mac’s weekly survey is among the most widely-cited reports on mortgage rates and is the data used in home affordability models, among other statistics.

The 30-year fixed rate is averaging 4.42% nationally with an accompanying cost of 0.7 points. 1 point is equal to 1 percent of the loan size.  This week’s reported rate is lower by 0.02 percent from last week, and lower by 0.70 percent from one year ago.

On a region-by-region basis, though, “average” 30-year fixed mortgage rates are different.

• Northeast : 4.44 with 0.6 points
• Southeast : 4.44 with 0.8 points
• N. Central : 4.42 with 0.4 points
• Southeast : 4.46 with 0.5 points
• West : 4.35 with 0.8 points

But this isn’t to say that mortgage pricing is better in, say, California as compared to Florida. Note that the West Region — with the lowest average rate — has the highest required points.  This is because mortgage rates and mortgage fees move in opposite directions.  The type of low-rate/high fee structure common in the West may be right for some home buyers and would-be refinancers, but may not be right for others.

What’s important to remember is that, as a rate-shopper in Tennessee , it’s always your choice on how your loan is structured. Banks offer multiple set-ups — with or without points — to meet every applicant’s budget.

As mortgage rates continue to slide and touch new lows, it’s an excellent opportunity to see what your lender can do for you. Low rates won’t last forever.

How much does a mortgage cost? The answer depends on where you live. But no matter which your locale, chances are strong that you’ll pay more for a mortgage in 2010 as compared to 2009.

According to Bankrate.com and its annual Closing Cost Survey, a typical $200,000, purchase mortgage now carries an average $3,741 in closing costs — up nearly 37 percent from last year.

As defined by Bankrate.com, “closing costs” is defined as the sum of two numbers.  The first group is labeled “origination charges”, a category that includes such items as underwriting fees, application fees and processing fees.  These fees are paid directly to the loan originator’s company at the time of closing.

The second grouping of costs is labeled “third-party fees”.  Third-party fees include appraisals, credit reports, settlement fees and title searches — items paid in connection with the loan, but not paid to the lending bank or broker.

It’s unclear why closing costs appear to have escalated into 2010, but Bankrate.com suggest that recently-enacted federal lending laws are a culprit:

1. The new law requires loan officers to be accountable to a Good Faith Estimate’s accuracy. Bankrate.com’s prior-year surveys may have been “understated”, therefore, because of a lack of accountability.
2. The cost of federal compliance is high, and banks may be passing on compliance costs to consumers

To see the complete list of closing costs by state, including where Tennessee ranks, visit the Bankrate.com website.