Troy Stavros, Author at 865 Real Estate

Knoxville Real Estate: Top 10 Short Sale Misconceptions

February 6, 2013 By Troy Stavros

Quick definition: A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on a property.

Troy Stavros, Broker and Partner with the 865 Real Estate team at Gables & Gates, REALTORS stated, “There are so many options today for struggling homeowners in Knoxville, that they should no longer have to ever go through a foreclosure.”.

Let’s look at the Top 10 misconceptions regarding short sales:

Misconception #1: If mortgage payments cannot be made, foreclosure is the only option. Coming out of the last few hard years, more options have become available than ever before to avoid foreclosure. Short sales and loan modifications are the most prevalent.

Misconception #2: Allowing the home to go into foreclosure leaves the homeowner free of any future repercussions. Not true! Even after a foreclosure, homeowners could be hit with owing a deficiency balance (this means owing the difference between what your Knoxville home sold for and what you owed) or IRS tax liability. A properly negotiated short sale has the ability to relieve a homeowner from this debt.

Misconception #3: Short sales are too hard to qualify for. There are really only two main criteria necessary to qualify for a short sale. First, the home must be worth less than the current balance on the mortgage. Second, the owner must be able to prove a true financial hardship, such as a decrease in wages, job loss, divorce, or medical condition that has altered the ability to make the same income as when the loan was originated.

Misconception #4: Banks do not want to do short sales.Wrong! Any day of the week a bank would choose doing a short sale over having to foreclose on a property. Foreclosures cost banks lots of money and man power. In fact, many banks are offering incentives for customers that complete a short sale instead of going through foreclosure.

Misconception #5: Short sales don’t happen very often. Today in many real estate markets, short sales are 10-50 % of total sales. Many experts are predicting that 2013 will see the highest amount of short sales to date.

Misconception #6: Short sales are too difficult and rarely get approved. Short sales like any Knoxville real estate transaction require the expertise of a Knoxville real estate agent that is educated in the process. If short sales are denied, it is typically because the correct process was not followed. Short sale approvals are happening daily with the help of experienced professionals.

Misconception #7: A short sale will be expensive for the homeowner. In fact, this is the complete opposite of the truth. A short sale should not cost the homeowner any out of pocket expenses. The commission paid to the Knoxville real estate agent selling the home is taken care of by the bank. Actually, with the various incentive programs being offered by banks and the government, a homeowner may actually walk away with more money!

Misconception #8: A short sale is not an option because a foreclosure notice was already sent. While this timing may make a short sale more difficult, it can still happen. Banks have been known to delay foreclosure proceedings in order to get a short sale approved and finalized. The recommendation would be to start the short sale process as early as possible, but if a foreclosure notice has been received, don’t give up hope.

Misconception #9: Denial of a loan modification means a short sale will not be possible. While both of these options are ways to avoid foreclosure, they are separate entities and handled by different departments at the lending institution. Just because one says no, this has no bearing on what the other department will say.

Misconception #10: Doing a short sale will eliminate the possibility of buying another home in the near future. Like all loan approval, many factors are taken into consideration. With that being said, in November, mortgage giants Fannie Mae and Freddie Mac said a homeowner may be eligible to purchase again two years after a short sale. Some newer FHA programs may allow a purchase sooner than that.

1309 Amber Glades Lane, Knoxville, TN 37922 Home for Sale

February 2, 2013 By Troy Stavros

UPDATE: SOLD! This immaculate Knoxville home for sale is located at 1309 Amber Glades Lane, Knoxville, TN 37922 which features 4 bedrooms plus a bonus room and is located in the Amberwood Subdivision in West Knoxville. The main level features an open floor plan with the eat-in kitchen open directly to the family room. Perfect for making your cup of coffee and sitting down by the fireplace. The main level is finished off with a formal dining room and office with french doors. Walk out just past the kitchen and family room into the extensive screened porch where you can relax and watch all of the activity in the flat, fenced backyard with play areas. Step out of the screened porch to do some grilling or enjoy dinner outside on the flagstone patio. Upstairs you will find the spacious master bedroom suite, 2 additional bedrooms with walk-in closets sharing a Jack ‘N Jill bath, the bonus room and laundry room with utility sink. Venture up to the 3rd level to the 4th bedroom suite complete with private bath. Amberwood subdivision features sidewalks lit by street lamps making for an easy walk, night or day, to the neighborhood pool or a friends house. Contact us today with questions or to schedule your private showing.

312 E. Heritage Drive, Knoxville, TN 37934 Home for sale in Village Green

February 2, 2013 By Troy Stavros

UPDATE: SOLD! Completely remodeled 4BR,3BA Knoxville home for sale in Farragut’s Village Green Neighborhood located at 312 E. Heritage Drive, Knoxville, TN 37934. Too many upgrades to list. Incredible screened porch/sunroom addition looks over the large, flat, private backyard. Providing one of the most convenient locations in West Knoxville. Walk to the grocery store, library, schools, and additional shopping. 5 minute drive to Turkey Creek. The neighborhood features sidewalks and a neighborhood swimming pool. A gem among other Knoxville homes for sale. This will sell FAST. Setup your showing today!

Knoxville Real Estate: How To Get Top Dollar Out of Your Home Appraisal

January 31, 2013 By Troy Stavros

Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “With faster price appreciation being caused by low inventory of Knoxville homes for sale, low appraisals could become a bigger problem.”

The National Association of Realtors reported on Tuesday that inventories of homes were at the lowest levels since 2001 and the median price a home resale was, at $180,800 in December, up 11.5 percent in a year. Stavros continued, “In a rising market, because appraisals are based on recent sales prices of comparable properties, depending on when the sales occurred, they might not be high enough to support the newest numbers. As a homeowner who knows the property and neighborhood intimately, there are things you can do to assist an appraiser”.

Here are some ways to achieve the highest possible appraisal:

* With the assistance of a Knoxville real estate agent, provide the appraiser with comparable sales. Don’t just hope the appraiser knows about the house just like yours that sold for the same price, give proof. Preferably 3 or more comparables to support the value.

* Make sure the appraiser knows the neighborhood. With the way appraisers are chosen, there is a chance of unfamiliarity with the area. Supply as much information about the quality of the neighborhood as possible. Including information like neighborhood amenities, new local restaurants and attractions. Anything that can add value to the location.

* Provide the appraiser with documented information on the upgrades and renovations completed on the home. Everything from cosmetic, to structural, to mechanical. It all can add value.

* Clean, clean, clean. Showing the home to an appraiser can be more important than showing it to a buyer (a buyer can walk away if the home does not appraise!) The home should look as good as possible. Turn on all the lights. Light some candles. Clean up the yard. The better the home looks the more perceived value it will bring.

* Either give the appraiser the information on the home upon arrival or prior to departure. Do not follow them around. Not only can this be uncomfortable and distracting for the appraiser, but can raise concerns that there may be issues with the home.

Where Are All The Houses? The Reasons Behind Shrinking Inventory

January 30, 2013 By Troy Stavros

Troy Stavros, Broker and Partner with the 865 Real Estate team states, “The old adage of supply and demand is at it again. Home prices are on the rise because the number of Knoxville homes for sale continues to dwindle.” According to the latest research numbers from the National Association of Realtors, the inventory of homes for sale dropped 8.5% from November, 21.6% from one year earlier, and is at the lowest level since January of 2001.

So why are we seeing inventory of Knoxville homes for sale drop? Here are the reasons:

* Many homeowners still owe more on homes than the current market value and are not willing to bring money to the closing table.

* Many homeowners who might typically be looking to “trade up” have lost the equity necessary to do so (home equity in a primary residence, built over time, is usually the main source of down payment funds in a trade up situation).

* Sellers, feeling the market and prices are still close to bottom levels, are waiting in hopes of selling at a higher price in the future.

* Investors (individual and institutional) are buying homes in bulk and renting them, instead of putting them back on the market for sale.

* Banks are approving more short sales and loan modifications, leading to smaller numbers of foreclosed homes hitting the market for sale.

* Tight lending guidelines for builders have limited the number of new homes hitting the market for sale.

3 Necessary Steps Before You Start Your Knoxville Real Estate Search

January 24, 2013 By Troy Stavros

The home loan process can be daunting for seasoned homeowners, let alone first time home buyers. Paperwork, paperwork and more paperwork, followed by credit checks and more required documentation.

Troy Stavros, Broker and Partner with the 865 Real Estate team at Gables & Gates, REALTORS says, “Today’s strict lending guidelines can call for even more steps in the process, but with a plan it can be done with less stress.” The following steps should be taken prior to searching Knoxville real estate, in order to make getting loan approval a smooth, successful endeavor:

STEP 1. Start pulling together documentation prior to starting a Knoxville real estate search. Mortgage experts are recommending starting 6 months to a year prior to beginning a home search. Why so early? There could be credit issues to resolve, debt that needs to be paid off, or down payment money to be saved to allow for approval. Those things take time. Waiting too long can hit a buyer twice as hard, by coupling the denial of a loan with the loss of a dream home.

STEP 2. Get pre-approved prior to starting a home search. This is a major step that anxious buyers like to skip over that can cause heartbreak. A pre-approval (not a pre-qualification!), uses complete documentation and gives a buyer the green light from the lender that should a home be found, financing is approved and available. By not completing this step prior to a home search, many buyers are looking at homes in price ranges they cannot afford. This leads to frustration and heartbreak, when a buyer realizes the perfect home the search has found is out of reach.

STEP 3. Most new buyers understand that saving up for a down payment is necessary but many are not aware of closing costs. The down payment and closing costs can be two significant numbers, and buyers need to plan on saving up for both prior to beginning a home search. Closing costs can vary, but a general rule of thumb is to plan to pay around 3-4% of the purchase price.