Troy Stavros, Author at 865 Real Estate

Knoxville Real Estate: Great for First Time Home Buyer or Investor

November 17, 2012 By Troy Stavros

If you are a first time home buyer, looking to downsize, or looking to invest perhaps in a Knoxville real estate rental, take note. This home in the Plumb Creek Subdivision of West Knoxville is a real sleeper. Zoned for Hardin Valley Academy and conveniently located off Lovell Road just minutes from the Pellissippi Parkway or Middlebrook Pike, it is a short drive to just about anything you need. What really makes this home a sleeper are the recent updates completed by the owner that you wouldn’t typically find in a home in this price range. New granite tops in the kitchen to go along with stainless steel appliances and a center island. New granite counter tops, vanity, and tub with custom tile surround in the 2nd bath. New granite tops, vanity, and shower in the Master Bath. New deck. New HVAC unit. Separate laundry room. Storage shed located in the large, flat backyard. Cul-de-sac location. Currently listed at $148,500! As far as Knoxville homes for sale go, it almost sounds too good to be true. Call or text us at 865-999-0925 today, FAST, to schedule your private showing.

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Knoxville Real Estate: National Housing Market Predictions

November 16, 2012 By Troy Stavros

Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “Whether it is when we are working with buyers looking at Knoxville homes for sale, speaking with our current sellers, speaking with past clients or talking with complete strangers, the question always comes up… What is happening with Knoxville real estate and where do you see it going?

Equipped with information from the National Association of REALTORS that was garnered at the recent 2012 Realtors Conference and Expo, the 865 Real Estate team shared the forecast. Stavros said, “With the important caveat that credit does not tighten further and a fiscal cliff is avoided, Knoxville home prices should continue to rise.” The 865 Real Estate team quoted NAR economist, Lawrence Yun who predicted a 6% increase in the median home price in 2012, followed by an increase of 5.1% in 2013, and comparable increases in 2014. Along with prices, sales are projected to increase each subsequent year as well. With 2012 seeing a 9% increase to 4.64 million, and 2013 increasing to 5.05 million, then 2014 to 5.3 million. The amount of distressed sales is predicted to decrease from about 25% in 2012 to only 8% in 2014. Economists saw mortgage interest rates increasing to and average of 4% in 2013 and moving higher to 4.6% in 2014 caused by inflationary pressure.

Stavros also noted that these predictions are for the national real estate market and reminded the 865 Real Estate team clients that Knoxville real estate has fared much better than most other markets. “Looking at the local market, with distinct indicators such as low inventory, buyer demand, and competitive bidding tells me there is only one place for our market to go, and that is up. The only reason I can see this not happening is if buyers cannot access money to buy Knoxville homes for sale, i.e. lending standards get tighter, or if there is a major governmental breakdown such as the fiscal cliff.”

Knoxville Real Estate: Energy Star Certified Homes in Knoxville!

November 13, 2012 By Troy Stavros

The 865 Real Estate team, the leading Knoxville real estate team at Gables & Gates, REALTORS has recently partnered with long time Knoxville builder/developer, Schaad Residential Construction, LLC to market their new Energy Star Certified homes in Knoxville. The team at the 865 Real Estate team is currently marketing the Energy Star Certified Knoxville homes for sale in the Sheffield Subdivision in Farragut, TN, and the Kensington Subdivision in West Knoxville.

According to sources at Energy Star, increasing energy costs and continuing growth of consumer demand for efficient products that do not sacrifice performance have been the driving force for new developments in energy efficiency and green building programs across the nation. The Energy Star program was birthed as a joint venture between the U.S. Environmental Protection Agency and the U.S. Department of Energy. The Energy Star Certification itself was designed to help builders meet high levels of energy performance while giving consumers the confidence of knowing their home systems are energy efficient.

Schaad Residential Construction has committed to 100% Energy Star built homes. Local Knoxville home buyers of Energy Star Certified, Schaad built homes, have confirmed what has been noted on the Energy Star website. That being huge results, like families saving about 1/3 the cost of their monthly energy bill. Couple that with the huge environmental benefits and the impact is tremendous. The website states that the energy savings in 2010 offset greenhouse gas emissions equal to the same output as 33 million cars, also equaling $18 billion in utility bill savings.

Troy Stavros, Broker and Partner with the 865 Real Estate team at Gables & Gates, REALTORS stated, “For the Knoxville real estate buyer, the benefits are both immediate and lasting. They will immediately benefit from lower utility bills and they will benefit in the future from increased resale value.”

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Knoxville Real Estate: You love 2 Knoxville homes. How do you choose?

November 9, 2012 By Troy Stavros

So you’ve found two Knoxville homes for sale that you absolutely love. In today’s market, because of dwindling inventory, there is serious competition between buyers. How do you quickly choose between them and pick a Knoxville real estate winner? Let’s take a look at what things to evaluate at when trying to decide between two great homes. If they are already similar in price, square footage, and features, then what? The following are some tips we suggested for getting one to rise to the top.

If the specifications on the top few homes are similar, it never fails to go back to the age old real estate mantra..location, location, location. First and foremost you should look at which physical location has better proximity to things that are important to you. Speaking of physical location, perhaps one of the Knoxville homes for sale faces a different direction. Think about where you would like the sun to be on your home during different times of the day. Maybe one is on a busier street and the other is in a cul-de-sac. After looking at physical location, one should look at the quality of the neighborhood and it’s amenities, crime rates, and the quality of the schools. This is a big investment, and a place you may be living for a long time, so don’t be afraid to go out and talk with some neighbors to get their opinions and a feel for the overall mood. Neighbors love to see and talk with who is potentially moving in, and you can garner quite a bit of information from them.

As a Knoxville real estate team that is typically selling these same homes once the buyer needs to move up, down size, or relocate, the 865 Real Estate team always keeps resale value on the forefront of the mind’s of our clients. Although they are just moving in and excited about a new home, we remind our clients that this is typically their largest investment, so we want to make sure it is a good investment when it comes time to sell. We’ve had more than one client choose one house over another because of our advice as to which would be more valuable when it comes time to sell. And resale value may not only be decided by which home is in a better neighborhood, it could be decided on which home the buyer can get the better deal.

Knoxville Real Estate: Top 3 Things Lenders Love

November 6, 2012 By Troy Stavros

So you see that the prices on Knoxville homes for sale are rising and you have made the decision to take advantage of the historically low interest rates being offered by banks on Knoxville real estate. Although the uber-strict lending standards that were suffocating the market are letting up a bit, there are still distinct criteria which you will have to meet to be found credit worthy.

The Top 3 buyer traits that lenders love are:

#1 Top Notch Credit History – The very first thing a lender will do is pull your credit report and look for a good, solid credit history. While perfection isn’t needed, you need to know that should you be approved your credit history will ultimately have an impact on the interest rate you receive. The better the credit history, the lower the interest rate and vice versa. Lenders we spoke with said a score of 750 and above will get you the best possible rate and conditions. 720 and above will still get you close the best rate, but other conditions may not be the same. Scores below 640 will find it difficult to get approved for a loan.

#2 Low LTV or Loan to Value Ratio – Because the risk of default is always at the forefront of a bank’s lending decisions, Loan To Value Ratio is a huge part of that equation. It is one of the key risk factors that lenders assess when qualifying a potential buyer for a loan. The Loan to Value Ratio is the ratio of the loan amount compared to the appraised value of the home. For example if you were obtaining a loan of $300,000 on a home appraised for $350,000 the LTV would be 86% ($300,000/$350,000). You may have heard that most lenders want a 20% down payment. This is because lenders like to keep the Loan to Value Ratio at about 80%. Similar to having a above average credit score, if you are able to lower your Loan to Value Ratio, it can improve your interest rate and conditions.

#3 Stable Income – This important aspect that lenders look closely at encompasses both your income and debt levels. They will want to know about your income. How much it is and how steady it is. How long have you been working at this particular job. Once they know what your income situation looks like every month they will look at your debt. Then they calculate what is called your “Debt to Income Ratio”. This ratio calculates two different things. First it takes your average monthly income and compares it to your housing expenses (mortgage payment, homeowner’s insurance, property taxes, homeowners association dues, mortgage insurance). The second calculates your average monthly income and compares it to your total recurring monthly debt payments (credit cards, car payments, student loans, etc.) Most conventional financing requires a Debt to Income Ratio of 28/36 (28% of your monthly income for housing expenses/36% of your monthly income for total expenses).

Here is an example:

In order to qualify for a mortgage for which the lender requires a debt-to-income ratio of 28/36:

Yearly Gross Income = $48,000 / Divided by 12 = $4,000 per month income.
$4,000 Monthly Income x .28 = $1,120 allowed for housing expense.
$4,000 Monthly Income x .36 = $1,440 allowed for housing expense plus recurring debt.

Judging from the example above, if you make $4,000 per month, it means that a lender would be unlikely to approve an amount that resulted in your housing expenses exceeding $1120 per month or your total debt payments adding up to more than $1,440 each month.

Knowing these Top 3 Traits before speaking with a lender or looking at Knoxville homes for sale can give you a pretty clear road map of what you can expect. The key to a smooth Knoxville real estate transaction is eliminating surprises. The moral of this story is, before you jump into the home buying process, you should have these things squared away: 1) Fix any issues with your credit 2) Save up for your down payment 3) Reduce your debt.

For information on Knoxville Real Estate or for a referral to one of our trusted lenders contact us at 865-999-0925 or EMAIL US HERE.

Knoxville Real Estate: New Mobile Home Search Technology to Buyers

November 2, 2012 By Troy Stavros

The 865 Real Estate team, the leading Knoxville real estate team at Gables & Gates, REALTORS announces the utilization of a new mobile technology that will provide customers with immediate access to information on all Knoxville homes for sale.

The Gables & Gates Curbcall Information System allows homebuyers immediate access to the entire “Knoxville homes for sale” inventory from ANY telephone. Troy Stavros, Broker and Partner with the 865 Real Estate team states, “All that home buyers need to do is call the local number, 865-321-8966, and enter the house street number to immediately hear the details on any home for sale in the Knoxville MLS inventory”.

The description of the property is delivered via telephone in an easy-to-understand sentence format in both English and Spanish 24 hours a day, seven days a week. With the use of their custom Curbcall sign riders, the technology also notifies the 865 Real Estate team that there has been an inquiry on a listing and provides sellers with reports detailing the interest their home receives from potential buyers.

Stavros stated that the beauty of the technology is it’s simplicity, “It’s really simple. First, I’d recommend programming the number into your mobile phone. Then anytime you drive past or see a property you’re interested in, stop, call the number, and enter the house number and first letter of the street name and you’re immediately given all the pertinent details”. Stavros stated that after given the details, additional options are available including receiving an estimated mortgage payment or a text message with the home’s features sent directly to their cell phone or handheld device. For those inquiring with smartphones, they’ll receive a web link that will give them GPS property directions and photos of the property. During all stages of the inquiry the customer is a simple button push away from speaking directly with a Knoxville real estate agent at the 865 Real Estate team should they have any additional questions or want to schedule a showing.

Stavros says if all that wasn’t enough there’s more, “Another really cool part of the technology is if you have the 865 Real Estate team enter your cell phone number and email address in the Curbcall database, we can register you to ensure that no other agent will ever contact you if you use the 865-321-8966 number. The important thing to remember is that this system can be used on ALL Knoxville homes for sale, not just homes listed by Gables & Gates, REALTORS or the 865 Real Estate team. Registering does more than eliminate callbacks from other agents when you are just looking for information. With your email in place, the Curbcall system will send you an email with property information on every home on which you inquire, so it is waiting in your email when you get home from driving around.”