1. Affordable home index of 83% — that means 83% of everyone working in West Knoxville can afford to purchase a home.

2. Cheaper to buy than rent – it’s now cheaper to buy a West Knoxville home than rent! Save some of your hard earned money AND own a West Knoxville home. What could be better than that?

3. West Knoxville homes prices at 2005-06 levels — when you purchase a West Knoxville home, you’re paying approx. 2005-06 home prices. How would you like gas, food, and car prices to be at 2005 levels? I don’t know about you, but I’d love to pay only $1.55 a gallon for gas (2005 gas prices). We may never see West Knoxville home prices this low again.

4. Tax benefits — hate paying taxes? Owning a West Knoxville home has a number of tax benefits not available to renters. Here’s 3 great articles on how you can save even more money this year using the tax benefits of home ownership:

Homeowner Tax Benefits from Uncle Sam
Home Sweet Home Tax Breaks
Tax Reasons to Buy a Home

5. 4% interest rates — interest rates are near all-time lows. Why should you care? You can save a bundle! Below is a scenario written by a homeowner who purchased a home in 1997 at higher interest rates and how today’s all-time low interest rates can save you $$$ and build equity in your home faster!

“Back in 1997 I bought my first home, it was new construction, I paid $137,000 for a 2040 sq ft home…. that translated to roughly $67 per foot. My interest rate at the time was 8.125% with a total payment of $1,017 per month.

Today, the same home as mine, in my neighborhood, is selling for $249,000 equaling $122 per foot with a total payment of $1,188 per month at a 4% rate. You can see the slightly higher minimal monthly payment quite clearly ($1,017 vs. $1,188) — but with a 8.125% interest rate only 9% of my payment ($89.62) was going towards principal, whereas if a new buyer purchased the same home in my neighborhood at today’s rate of 4% — a whopping 30% ($358.76) would go toward principal. In other words, West Knox buyers who purchase today get 2002 home prices with low interest rates but also gain a SIGNIFICANTLY faster rate of equity. But that’s not all…

Now lets talk interest paid…on the $137,000 loan, the buyer paid a whopping $229,201 just in interest. However, a $249,000 loan at 4% would be $178,956 in interest, SAVING you $50,245 in interest on a loan that’s nearly TWICE as large!

Do you think you still have time to wait? Don’t Give me a call at 865-696-9002 or email me Rick@TheBigOrangePress.com let’s get started!!

Let’s assume you found a home in West Knoxville neighborhood got the contract accepted now the real work begins. You will need to order up your home and termite inspections.

If you are looking for a home inspector ask your realtor and friends for a recommendation on who they used when they bought a home. Check them out on the web and see  the type of services they offer an type of report you are going to get. I always refer to an inspector as a General Practitioner in the medical field. Inspectors have a great deal of general knowledge of all the aspects of a home. If they see something that concerns them they are going to refer you to a specialist who can analyze the issues and problems even further. Get a good inspection from a qualified inspector it is money well spend a BIG investment you are making on a home.

In Knoxville we use a standard contract that gives buyers a few options once they have the inspections done. If they are really scared at what they have found they have the option to walk away. If they have found some issues they are worried about they now have the option to go back to the seller and ask for them to be fixed. The seller has the right to fixed them, give you a credit to cover the cost of the repairs, reduce the price of the home to cover the cost of the repairs. Or they can tell you to go fly a kite. Remember the purpose of the inspection is find major problems with the home. Be reasonable with the seller and they we will be reasonable with you in most cases. If you worry about the lose door knobs and the dripping faucets you may have some issues getting anything done.

Once you have solved all the inspection issues and the financing in place it is time to go to a closing. Congratulations if you have followed my steps outlined in these last few posts. You should have bought a home that was a “deal” for you. And as said in my first posts everyone’s idea of a “deal” is different.

If I can help you find your call me 865-696-9002 or email me Rick@TheBigOrangePress.com I would love to help you

You want to setup on the site very specific searches for what you are seeking in a home. It may take several saved searches to cover every angle of the type of home you want so you don’t miss anything. If you need help with it ask your agent they should be able to do it for you on their site.

We did a great deal of research in picking our home search part of TheBigOrangePress our buyers always have the most updated homes in their inbox. We are able to communicate with our buyers on the site and they can with us. That way when that really “hot” one hits we are their first to take advantage of the opportunity. We take great pride in being technically advanced to better help our clients.

Once you find a few homes get out there and take a look at the homes. Take your time and do your homework. If you find one you like ask your agent for what others have sold for in the area. Base your offer on what is happening in the neighborhood. Take into mind the things that may need to be done to the home and consider it in the offer. Ask your agent for their advice in putting together the offer that they think can be accepted at the same time getting you the best deal possible. One tactic we do with our buyers that helps them out if the home needs work is asking for the seller to pay your closing costs. That way if the home needs some work you have some cash left over to do the work.

Lesson 101 to remember when buying a home in today’s market. Be prepared to walk away if you can’t get the price and terms that work for you. It is a buyers market and if you can’t buy the house at a price and terms that work for you just walk away. Something else will show up on the market just be patient.

If you have an agent who is helping you out that is great. If you would like to use our site to search for your home feel free. If I can help you find your new home call me at 865-696-9002 or email me Rick@TheBigOrangePress.com and let’s talk about it.

I tell them everyone has a different definition on what a deal means to them. I want to know what it means to you so we can try and accomplish that goal together. Then I just sit back and listen and ask questions so I can better understand my buyers needs. Since I started doing this it is amazing what people consider to be a deal or value to them. But that is why it is important to find out what my buyers are wanting in a home so I can better understand their wants needs and desires in a home.

Here are 3 totally different buyers I sold homes to this year. They all wanted a “deal” and after to listening to them and understanding what they wanted we found their deal for them…..

First buyer was a young couple with a growing family. They had a small rancher in West Knoxville that they had outgrown and baby number 3 was on the way. They had bought their home 4 years ago from me at the top of the market. They knew they were not going to come out too well on the sell of their home. In fact once we sold it and they paid all their expenses they made about $3000 net profit. But we knew that before we put the home on the market and sold it.

Their definition of their deal was….They wanted at least 3 bedrooms,2 baths,bonus room,2 car garage, in Farragut in West Knoxville around $250,000. Well they bought a 4 bedroom,3.5 bath,bonus room,3 car garage in Farragut for $240,000. Previous owner was transferred and paid $285,000 in 2006 for them home. Was my buyer excited you bet!! Plus they tied into the low rates we have right now

Second buyer was a young single buyer who was referred to me by one of my clients. He was very handy and had no interest in something that was in move in condition. He wanted something that needed work that he could put his own thoughts and changes into. He also want to make sure he could resell it in a couple of years and make some money on it. He was interested in foreclosures or a short sale. He had time to look to find the right home . He wanted to stay in the Cedar Bluff Area and didn’t want to spend more than $125,000. We looked around for awhile then I listed a short sale that I knew he may like. It was a rancher that needed work but was a “deal” at $110,000. Previous owner had paid $160,000 for it in 2007. Called him up once I had it on the market and he bought it was exactly what he wanted to buy. Took me 4 months to get the short sale approved but he didn’t care it was what he wanted it was his “deal”

Third buyer transferred here from Florida and they took a $150,000 beating on their home. The first thing people want when this happens to them is their turn to do it to someone else. As I had my first meeting with them I had to explain that the Knoxville market was different than the market he left. Our prices have fallen somewhat but not as much as they had in Florida. His family wanted a newer home in some of the Farragut neighborhoods they liked Fox Run, Montgomery Cove, Mallard Bay and Wentworth. They wanted a master on the main, 4 bedrooms,3 plus baths, three car garage. Top of their price range was $475,000. We began to look and found several home they liked and wrote and offer on one. The asking price was $495,000 and my buyer wanted to offer $375,000. Well after trying to talk him out of it and convince him to be more realistic he wanted to write it. So we wrote it and the seller was upset and wouldn’t even give us a counter.  After that episode he finally started to listen to me. So on to house number 2 it was a relo home that had been on the market for awhile. Previous owner had paid $505,000 in 2005 and the relo company was asking $475,000 for the home.  My buyer aske me what do you think? I said I would write $410,000 and I think we can buy it for around $425,000 which I think would be a good value. After a couple of counters back and forth we ended up at $423,000. They were excited to get to Knoxville and they made a “deal” they were happy with and made up some of their loses from Florida.

What is your definition of a deal? As you can see everyone has a different idea on what a deal is to them. Contact me and let’s talk about and find your perfect “deal” Call me at 865-696-9002 or email me Rick@TheBigOrangePress.com

Here is a list of reasons why buying a home might be the right choice for you.

1. When you buy a home, you building equity over time. When you rent an apartment, the money you pay for rent you will never see again.  With the median rent in Knoxville being $637, that is $7,444 each year, $38,220 every five years that you will never see again. Money put into your home is an investment for the future.
2. There are many tax benefits to buying a home in Knoxville. Homeowners can deduct the following from their gross income: mortgage interest payment [for mortgages below $1 million or $500,000 if married and filing separately], property taxes, loan origination fees, and loan prepayment penalties. Also, profits from selling your house can be excluded from your taxes up to $250,000 if filing as single and up to $500,000 if filing as married.
   
3. The property you buy is yours. When you buy a home, you have more freedom to decorate it and change it how you please.  If there is something you don’t like about a house, like wall color, carpeting, or landscaping, it is yours to change as you please. People who rent apartments are tied to the restrictions set forth by the apartment complex.

When you are debating renting vs. buying in Knoxville, there are many things to consider.  If you are not planning on moving and want to feel like you are investing in something instead of throwing money away, buying could be the right decision for you. However, if you enjoy the mobility renting has offer, you may be better of renting. It is important to weigh the pros and the cons and how they relate to your lifestyle.

If you are debating the benefits of renting vs. buying in Knoxville, I’d be more than happy to answer your questions.  Feel free to give me call at 865-696-9002, shoot me an email, or simply leave a comment on this post.  I look forward to helping you in anyway that I can.

Shopping multiple lenders for a “good mortgage rate” can sometimes save you 1/8 percent on your rate and/or a few hundred dollars in fees. However, when it comes to getting the best mortgage rate, you’re going to more than good research skills.

You’re going to need some luck.

Mortgage rates for people in Tennessee or anywhere else, for that matter, are unpredictable, ever-changing, and rarely change as expected.

For example, when the Federal Reserve left the mortgage market March 31, 2010, analysts said that mortgage rates would rise by a half-percent or more. It was practically stated as fact on TV.  When April 1 came around, though, rates didn’t rise.

Instead, a volcano erupted and mortgage rates dropped on safe haven buying.

Then, a week later, as  the volcano ash cleared, mortgage rates were supposed to resume their rise. Only they didn’t. Instead, a debt crisis emerged in the Eurozone and mortgage rates dropped.

Since March 31, conforming mortgage rates are lower by roughly 0.125 percent, according to Freddie Mac’s weekly mortgage rate survey.  At today’s rates, the savings are roughly $20 per month per $200,000 borrowed — or $100 per month based on their original, post-March 31 forecast.

It brings us to one of the most important axioms in rate shopping: You can’t shop for good luck.

• On some days, rates go higher
• On some days, rates go lower
• On some days, rates stay the same

Occasionally, there are days when rates do all three.

As a home buyer or would-be refinancer, what rate you get depends on at what time of day you do your shopping.

You can’t predict what will happen next in mortgage markets — even just an hour from now. Therefore, the smartest move, sometimes, is just lock your rate now.  At least that way, you’ve got a guarantee.

The Federal Open Market Committee adjourns from its 6th scheduled meeting of the year today, and 7th overall.

Upon adjournment, Federal Reserve Chairman Ben Bernanke will release a formal statement to the market. In it, the Fed is expected to announce “no change” to the Fed Funds Rate.

Currently, the Fed Funds Rate is within a target range of 0.000-0.250 percent.  It’s been at this same level since December 2008.

Note that the Feds Funds Rate is not “a mortgage rate” — nor is it a a consumer rate of any kind. The Fed Funds Rate is a rate that defines the cost of an overnight loan between banks. And, although the Fed Funds Rate has little direct consequence to everyday Farragut homeowners, it is the basis for Prime Rate, the interest rate on which most consumer cards are based, plus many business loans, too.

Therefore, because the Fed Funds Rate won’t change today, neither will credit card rates.  Mortgage rates, however, are a different story.  Mortgage rates should change today — regardless of what the Fed does.

It’s more about what the Fed says.

In its statement, the Federal Reserve will highlight strengths and weaknesses in the economy, and threats to growth over the next few quarters. Depending on how Wall Street interprets these remarks, mortgage rates may rise or fall.

If the Fed’s comments signal better-than-expected growth, bond markets should lose and mortgage rates should rise. Conversely, if the Fed’s comments signal worse-than-expected growth, mortgage rates should fall.

If you’re actively shopping for a mortgage, it may be prudent to lock your rate ahead of the Fed’s announcement today. The Fed adjourns at 2:15 PM ET.  Call your loan officer to lock your rate.

The Fed meets 8 times annually.

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!!

No doubt you’ve heard that mortgage rates are low. They’re lower than they’ve ever been in history.  The news is everywhere.

Just check out some of these headlines from the last 24 hours:

• Mortgage rates set new lows for the 6th straight week (Reuters)
• Mortgage rates fall again; 30-year fixed at 4.54% (Wall Street Journal)
• Mortgage rates hit another low : 4.54% (NPR)

Fixed mortgage rates are now down more than 1/2 percent from the start of the year, and 3/4 percent from just 1 year ago. The drop has dramatically improved home affordability for home buyers in Farragut while creating refinance opportunities for existing homeowners.

From a payment perspective, a conforming, 30-year fixed rate mortgage is now cheaper by $41.94 per month per $100,000 borrowed versus July 2009.

A homeowner with a $300,000 mortgage, therefore, is saving $45,295.20 over 30 years.

Low mortgage rates rarely last long and rates appear to have troughed. After a big downhill between April and July, they’re now flat. This could mean rates have finished falling, or that they’re gearing up for another drop lower. Either way, if you haven’t talked to your real estate agent about home affordability, or your loan officer about refinancing, it may be time to make that call.

If today’s market marks the end of low rates, rates are expected to rise quickly.

For the second consecutive month, U.S. consumer confidence is plunging. July’s official reading is its lowest since July of last year and the figures run in stark contrast to just two months ago, when the index touched a multi-year high.

According to The Conference Board, July’s figures are reflective of a more pessimistic consumer; one concerned about “business conditions and the labor market”.

Falling confidence numbers are presumed to be poor for the economy. For homeowner and home buyers in Maryville , however, they can create opportunity.  Low confidence can influence the mortgage market in a positive manner, driving mortgage rates down.

Mortgage rates are already at their lowest levels of all-time.

The link between consumer confidence and everyday mortgage rates roots in consumer spending.

Consumer spending accounts for close to 70% of the overall U.S. economy so, the thought goes that, a less confident consumer is less likely to spend money, thereby retarding economic growth. This harms the stock markets and drives cash to bonds, including mortgage-backed bonds.

More bond demand leads bond prices to rise which, in turn, pushes mortgage rates lower.

The other side of lagging confidence is that Americans may be less likely to take new financial risks when they’re feeling unsure, including buying a new home. This can then drag on the housing market, negatively impacting home prices across Tennessee.

Falling home values can help buyers, harm sellers, and stymie would-be refinancers.

It’s tough to predict how consumer confidence data will work its way through the economy, but in the near-term, it appears to be helping mortgage rates stay low. If you’re floating a mortgage rate with your lender, or contemplating a refinance, the time may be right to lock in a rate.

Low rates can’t last forever.