865 Real Estate

East Tennessee Real Estate & Neighborhood Source

How Does Your Knoxville Home Search Process Compare?

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Knoxville home search statsWhen buying a home, a Knoxville home search can be a different experience for each buyer depending on various factors, however there are many similarities.  Whether you are just starting your Knoxville home search, in the middle of one, or just closing on your dream home, take a look below and see how you compare to the averages.  The following data regarding the home search process was compiled in the recently released 2013 Profile of Home Buyers and Sellers completed by the National Association of REALTORS.

  • 42% of home buyers said their first step in the home-buying process was looking online for properties.
  • 14% of home buyers first looked online for information about the home buying process.
  • 92% of home buyers used the Internet in their home search process.
  • 87% of buyers who used an agent while searching for a home, found them to be a useful source of information.
  • The typical home buyer searched for 12 weeks and viewed 10 homes.
  • For more than half of buyers, finding the right home was the most difficult step in the home buying process.
  • Approximately nine in 10 recent buyers were at least somewhat satisfied with the home buying process.

How do you stack up to these numbers when you look at your Knoxville home search experience?  Comment below and let us know!  Also let us know if you can think of any ways to improve the experience. Thanks!

 

Tennessee Students Surpass All Other States in Growth

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knoxville studentsHere is some exciting news. According to the 2013 National Assessment of Educational Progress, Tennessee students surpassed all other states in growth from 2011 to 2013, making Tennessee students the fastest improving state in the nation. The NAEP results also showed that Tennessee had the largest growth of any state in a single testing cycle since NAEP started nationwide assessments a decade ago.  Often known as “the nation’s report card,” NAEP assesses students in 4th and 8th grade reading and math. All 50 states have taken NAEP since 2003, and the results are regarded across the country as the best way to compare educational outcomes across states. Tennessee students’ combined growth on all four tests in 2013 exceeded the growth of all other states. Way to go kids!  Great job teachers!

Is the appeal for types of neighborhoods in Knoxville changing?

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Neighborhoods in KnoxvilleIs the appeal for types of neighborhoods in Knoxville changing? A recent study by the National Association of REALTORS shows that more and more Americans are showing a preference for walkable neighborhoods that combine a mix of homes and stores. The survey actually shows that your typical suburban neighborhood, with just homes, is the least popular.

I have to admit, the thought of being able to take a short stroll down a landscaped sidewalk, waving and possibly talking to neighbors on the way.  Then stopping at a corner shop for a cup of coffee or a bite to eat does sound desirable.  It almost puts you in a time machine back to the way things used to be before we traded welcoming front porches for private back patios.

Here are some interesting findings from the National Association of REALTORS®’ 2013 Community Preference Survey:

  • 60% of Americans surveyed say they favor neighborhoods with a mix of houses, stores and other businesses that are easy to walk to over neighborhoods that require greater driving.
  • 78% of respondents said that the neighborhood is more important to them than the size of the home.
  • 57% said they would give up a home with a larger yard if they could have a shorter commute.
  • 55%  said they’d give up a home with a larger yard if they could live within walking distance to schools, stores, and restaurants.

With mixed use neighborhoods in Farragut and Knoxville springing up like The Cove at Turkey Creek and Northshore Town Center, we are seeing this trend slowly arriving at our doors here locally.  What are your thoughts about the survey results?  Do you agree with them?  What are you looking for in your ideal neighborhood?  Is walkability a big factor?  Comment below and let us know.

One Of The Most Important Things To Do When Buying A Home

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credit score when buying a Knoxville homeWhen buying a home today, with the current stringent lending guidelines, a client’s credit score plays a pivotal role in whether or not they will be approved for a loan. One error on a client’s credit report can be the difference between being approved or denied a loan. That is why it is so important that each person obtain and review a copy of their report each year, giving them to ability to find and correct errors effecting their credit score.

The Consumer Finance Protection Bureau released a report revealing only one in five people actually obtain a copy of their credit report each year. The report also stated that consumers reached out to credit reporting companies about 8 million times to challenge information on their report. Overall, the actions led to 32 to 38 million disputed items.

The instances of being able to get a mortgage with less than stellar credit are behind us.  A recent report by Ellie Mae, which represents 20 percent of all U.S. mortgage originations, found the average FICO score for a closed loan was 732, while the average denied loan had a score of 696.

Once approved, the effect your score has on your loan doesn’t stop. A loan savings calculator provided by myFICO, the consumer division of FICO, shows how credit scores can effect the interest rate one would receive on a mortgage. As of October 28th, 2013, a person with an average FICO score of 760-850 would receive a 3.765% rate on a 30-year fixed rate mortgage. However, if one had a score of 620-639, the rate would be 5.354%.

Just because you aren’t planning on purchasing any Knoxville real estate this year, doesn’t mean you shouldn’t be reviewing your credit report. Oftentimes it could take months to get an error off your report. With your credit score being one of the most important tools in getting a loan approval, it’s best to always keep it sharp. For current homeowners, it also is a major part of refinancing. Not a homeowner? More and more employers are looking at a prospective employees credit report before hiring. Yearly review is just good practice all around.

Signs That The National Housing Market Is Performing Well

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knoxville_housing_marketEven with the rising interest rates of late (although the good news at the time of this writing is that this week rates have actually decreased to a four month low), the national housing market seems to be performing rather well.  According to the HousingPulse Tracking Survey by Campbell Surveys and Inside Mortgage Finance, although homes sales were down somewhat in September, other factors were very positive.

Here is where we see positive signs in the housing market:

  • Time on market fell to a four-year low last month. Based on September data, homes spent an average of 8.6 weeks on the market.  A big reason for the importance of this number is that time on market is actually down from the spring home buying season, when the time on market was about 10 weeks.
  • Homes are selling for a high percentage of their list price. The sales-to-list-price ratio in September was 97.5%, up from 96.1% in September 2012.
  • Sales of distressed properties, home purchases involving foreclosures and short sales, decreased to 24.6% over the three-month period ending in September, marking a four-year low.

For detailed information on the status of particular neighborhoods in Knoxville or to get an estimated value on your Knoxville home contact 865 REAL ESTATE for a no strings attached home evaluation.

Mortgage Rates Drop Significantly After Jobs Data Report

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Mortgage Rates in KnoxvilleMortgage rates fell fast yesterday, after the “Employment Situation Report” showed a less than rosy picture for labor markets.  The report, which was originally scheduled for October 4th, was delayed due to the government shutdown.  Conforming 30yr Fixed rates dropped down to 4.125% for many borrowers depending on the scenario, though some lenders remain at 4.25%.

Weak economic data historically pushes rates lower and yesterday was no exception, but there is more to the story.  The peripheral effect of yesterday’s report is that it further solidifies that the Fed will likely hold off on reducing its purchases of Treasuries.  These are the purchases that have helped to keep rates lower than what they would be normally. The recent threat of those purchases decreasing had a significant effect on mortgage rates during the summer months.

What does this mean for Knoxville home buyers and sellers?  JUMP ON THESE MORTGAGE RATES while they are this low and save yourself some money on your monthly payment.