865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Is Selling A Home For Sale By Owner in Knoxville Worth It?

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For Sale By Owner in KnoxvilleFirst, let’s just get this out of the way.  I, along with everyone else I know, like to save money. This is witnessed every year by the frenzied shopping taking place on Black Friday, and Cyber Monday.  People will line up, in the cold, overnight to save a few bucks. So trying to save yourself some money by selling a home For Sale By Owner in Knoxville isn’t surprising.  But that being said, are you really saving yourself money?  Better yet, forget saving money, are you allowing yourself to make the most money possible on the sale of your home?  Statistics say no.

Here is what you need to know:

  • Last year, the typical For Sale By Owner home sold for $184,000, where the typical home sold with the assistance of an agent sold for $230,000.  Therefore, on average, using an agent brought a 20% higher sale price.
  • Last year, only 9% of all homes sold were FSBO.  Of those 9%, 40% of the homes were sold to people who were already known by the sellers.  So really that 9% number is more like 5.4%. The other interesting fact is that the number of homes sold without an agent has decreased year after year.  In the last decade it has gone from 20% to 9%.

The takeaway is this. If you are thinking about selling a home for sale by owner in Knoxville, follow these steps:

  1. Exhaust your friends and family to see if anyone might be interested in buying your home, THEN…
  2. Contact a real estate agent for assistance.  Here is a recap why:
  • Statistics show a higher sales price is imminent with agent assistance.
  • Avoid the possibility of legal action against you (there is a reason agents have so much paperwork… to protect you).
  • This is a huge investment.  You need a professional to guide you.  You wouldn’t perform a do it yourself surgery would you?
  • There is a reason why the numbers of FSBO sales are dwindling.  One it’s hard, and two it’s ineffective.

For help with selling your home in Knoxville, contact Troy Stavros at 865-999-0925 to sit down and talk about your goals, and how he can help you make a strategy to reach them.

SOURCE: National Association of REALTORS Profile of Home Buyers and Sellers 2013

Two Huge Mistakes To Avoid When Buying a Knoxville Home

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big Knoxville real estate mistakesWhether you are a first time home buyer or have bought a home before, there are BIG mistakes you must avoid when buying a Knoxville home.  Instead of a laundry list of issues that could be a concern, we are going to hit on what we feel are two huge mistakes Knoxville home buyers could make when buying a home.

Both of these mistakes are typically the direct result of a Knoxville home buyer trying to save themselves some money.  While we are all for saving money, these mistakes could cost you exponentially more than what you would possibly save.

  1. Buying A Home Without Doing A Home Inspection

A home inspection will typically cost a few hundred dollars. Saving a few hundred bucks is good right? NOT IN THIS CASE! The money you spend on a home inspection is probably the best few hundred dollars you’ll ever spend.  Without knowing what current and potential issues your future house is subject to, you are walking into some serious potential for high dollar repairs.  The home inspection will look closely at the homes structural, roofing, plumbing, electrical, and HVAC systems.  In the home buying process, information is critical for decision making and negotiations.  The home inspection report can offer the following benefits:

  • Comfort in knowing you are buying a sound investment (especially if you are buying the home AS-IS).
  • Detailed data, for negotiations with the seller, in order to either fix the problems or reduce the price.
  • Information to let you know when to walk away from a transaction.

2. Buying A Home Through The Listing Agent

While we know many trustworthy listing agents (HEY, WE ARE ONE OF THEM!), don’t make the mistake of going unrepresented in your transaction. A seller’s listing agent is bound by fiduciary responsibilities (mumbo jumbo for “they have to legally”) look out for the best interests of their client.  Guess what, you aren’t their client, the seller is! Buying a home is typically the largest investment you will make in your entire life.  Why would you go into such an enormous, financially important life decision, without a professional looking out for YOUR best interests. You need to be working with a Knoxville buyer’s agent.  A buyer’s agent’s job is not only to show you properties, but to assist you in negotiations and make sure you are making a sound decision.  Study’s show that a buyer’s agent, on average, saves you 5% on the purchase of your home.  That’s $12,500 on a $250,000 home.  That is way more than you would save, even if a seller’s listing agent took less of a commission for helping you facilitate your offer.  So not only do you save more money, but you get representation to boot.  That’s a no brainer!

To talk with someone about representing you in buying or selling a Knoxville home, call Troy Stavros at 865-999-0925 to schedule a time to sit down and talk about your goals and formulate a strategy for reaching them.

Advantages of Selling A Knoxville Home During The Holidays

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advangates of selling a Knoxville home during the holidaysWhat are the advantages of selling a Knoxville home during the holidays? Many people in the process of selling a home in Knoxville assume the holidays are not a good time to find a buyer.  If it’s not spring or summer than good buyers aren’t to be found, right?  While many buyers do plan their home buying during those seasons, you absolutely can’t rule out the holidays.

Here are some reasons why the holidays could bring you a faster sale and a higher price when selling a Knoxville home:

  • Less Competition For Your Home:  If standard operating procedure for most sellers is to take their home off the market during the holidays, and most sellers getting ready to put their home on the market choose to wait until after the holidays, that’s great for you.  Think of all of the competition that will evaporate away and or stay away from the market, leaving you to shine like a star on top of the Christmas tree!  With less competition, your home will get more buyers checking out your home.  It’s like being in the window display at Macy’s!

ADVICE: Remember though, just like those Black Friday deals at the front of the stores on Friday after Thanksgiving, your house also needs to look good and be priced to sell!

  • Holiday Buyers Are Motivated:  If Knoxville home buyers are taking time out of their busy holiday schedule to look at your home, they are SERIOUS.  These are buyers who may have just been relocated for a new job in Knoxville or they’ve been scouring all of the Knoxville homes for sale for months and are just waiting for the right one to jump on.  No matter what their reason, your typical holiday home buyers in Knoxville are not tire kickers.

ADVICE: If they are willing to look during the their busy holiday season, don’t make it hard for them!

  • Nothing Says Home Like The Holidays:  Everyone gets emotional around the holidays.  Buying a home can be an emotional decision. Couple those together and get someone emotional about your home during the holidays.  Think about how good your house looked for that holiday party.  How you painstakingly decorated so everything looked perfect.  Take advantage of that!

ADVICE: Don’t go overboard a la “Christmas Vacation”.  Continue to keep the clutter to a minimum, but add some tasteful holiday decorations. Allow the buyers to see their own family enjoying the holidays there.  Oh, and when the holidays are over, take it down, pronto!

HAPPY HOLIDAYS!

To speak to someone about listing your home or sitting down to talk about a plan, contact Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 today!

 

Mortgage Lenders in Knoxville Accepting Smaller Down Payments

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mortgage-rates-knoxvilleWith rising interest rates and less people looking to refinance, mortgage lenders in Knoxville are putting more of a focus on securing home loans and loosening some of the lending guidelines for approval as bait.  According to a recent report by LendingTree, the average down payment for a 30 year fixed rate mortgage dropped 2.74% to 15.73%. Tennessee actually ranks as the 9th lowest state, as far as low down payment average, coming in at an average of 13.5% down payment.

The FHA recently removed the popular 3% down payment on their loans and has subsequently increased it to a minimum of 5%.  Buyers can find many non-FHA loans through lenders offering the same 5% down.  Remember, the better your credit and income are, the better your rate and terms will ultimately be, so do your homework prior to applying for a loan.  There may be some actions you can take to increase your credit score, that will ultimately save you money on your loan and help you get approved.

Contact Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 to discuss the home buying process or for additional advice on getting a home loan.  Working in the Knoxville real estate business daily, we have many trusted mortgage lenders in Knoxville that we work with and can recommend so you don’t get stuck in a bad situation.

Buying A Knoxville Home And The Cost Of Waiting

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dont lose money buying a knoxville homeIf you are thinking about buying a Knoxville home, or possibly selling your Knoxville home to buy a different one, waiting until next year will most likely cost you quite a bit more money.  Sure, it’s normal to think that going into the winter months would not be a good time to buy or sell, but where the Knoxville real estate market stands right now tells a different story.

Here are the top reasons why waiting to buy a Knoxville home will cost you more in the future:

  • Mortgage rates will likely rise.  This will happen sooner than later and we can expect 5% rates in 2014. (SEE GRAPHIC BELOW)
  • The Federal Reserve will begin “tapering” quantitative easing which will effect mortgage rates negatively.
  • Knoxville home values are rising (while this may seem like a good reason for sellers to wait, the homes they will purchase after they sell are rising as well, along with the cost of borrowing money).
  • There is typically less competition in the winter months for both buyers and sellers giving you a better chance at a deal.
  • Buyers and sellers in the Knoxville real estate market in the winter months are typically more motivated.  They need to buy or sell a house or they might have put it off until after the holidays.

Contact Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 to discuss the steps necessary to take advantage of the market before it becomes less affordable.

Buying a home in Knoxville and the cost of waiting

Knoxville Makes Top 10 Places To Retire for 2013

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retire in knoxvilleSeems like every time we turn around Knoxville, Tennessee is making someone’s Top 10 list.  Sure, those of us who live here know what a great place it is to live.  Proximity to the mountains, numerous lakes, University of Tennessee, all the shopping and restaurants one could ask for.  Well, today it looks like our Knoxville has made the 2013 Top 10 Places To Retire from Livability.  While many people when they think University town think that is only positive for the young folk or sports fans, Livability says that is far from true.

 

Livability cites the following reasons for Knoxville’s Top 10 Rank:

  • Mountains
  • Lakes
  • University of Tennessee
  • Sports
  • Historic architecture
  • Parks
  • Cultural activities
  • Entertainment options
  • Education options
  • Healthcare

Thinking about retiring to Knoxville?  Come visit and let us take you on a tour of the town!  Call Troy Stavros at 865-999-0925 for more information.

CLICK HERE TO SEE THE ARTICLE ON LIVABILITY.COM