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!

 

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.

Getting A Home Loan In Knoxville May Be Getting Easier

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getting a home loan in KnoxvilleOver the last few years, getting a home loan in Knoxville hasn’t been as easy as in the past.   With banks battening down the hatches after the turbulent robo-signing scandal, and years of rampant sub-prime loans, the lending standards were tightened quite a few belt holes.  Couple that with the last few years of uber-low interest rates and homeowners re-financing like crazy, and banks didn’t have to budge.  Well, the tide is turning.  Now that interest rates are trending higher and homeowners are no longer jumping on the refinance bandwagon, banks need business.  The good news for homebuyers is that in order to get more business, banks will likely have to loosen those tight lending standards.  If you were turned down in the past because of self-employment or other issues, it might be a good time to revisit the process of getting a home loan. You just might like the results. Need a recommendation for a lender or a looking for real estate advice?  Contact us today!

It’s Still A Great Time For Buying A Home In Knoxville

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great time for buying a home in KnoxvilleWas buying a home in Knoxville cheaper six months ago? YES. Is it still a GREAT time for buying a home in Knoxville? YES!

Limited inventory and rising prices have created a seller’s market in Knoxville and we are seeing buyers competing fiercely for homes, even to the point of bidding wars, but that doesn’t mean that it’s still not a great time for buying a home in Knoxville.

Here is why:

  •  HOME PRICES ARE STILL RISING

Because the housing market bottomed, reaching it’s lowest point in March of 2012, the price gains that we have seen recently still leave plenty of room for the home values to climb. What is causing the rising prices? Lack of supply, which is the result of slower homebuilding activity, diminishing foreclosures, and sellers slow to come to market because they are waiting for prices to increase further (much of this is because sellers who purchased during the height of the market owe more on their homes than their current value).

  • RATES ARE LOW BY HISTORICAL STANDARDS 

Mortgage rates, currently hovering around 4.6 percent, have increased by a full percentage point since May – but they are still lower than they were just two years ago and far lower than the long-term average of about 8 percent.

  • GETTING A HOME LOAN IS SOMEWHAT EASIER

Because of the rising interest rates, less people will be refinancing, making banks more willing to work with homebuyers.  Don’t get me wrong, the days of the “no-documentation”, “no down payment” days are long gone, but credit is available for borrowers who are qualified.

  • OWNING A HOME IS STILL CHEAPER THAN RENTING

Even taking the recent price and rate increases into account, it is cheaper to buy than to rent in all 100 of the largest real estate markets, according to an analysis by Trulia.com. Nationwide, assuming a buyer stays in a home for at least 7 years, it is 37 percent cheaper to buy than to rent. Actually, studies show that in 78 of the largest 100 markets, rates would have to more than double to over 10 percent for markets to tilt in favor of renting.

  • INVESTOR COMPETITION IS DECREASING 

Many of the factors stated above are driving investors out of the market.  The reduced amount of foreclosures coupled with rising prices are making investors lose interest.  Chief Economist with the National Association of Realtors, Lawrence Yun stated, “Investors are recalculating their numbers, because it might make less sense for them to buy in order to flip or rent now. That’s an opportunity for primary owner-buyers to have less competition and still a historically favorable environment, even if affordability is weaker.”

As you can see, it’s still a great time for buying a home in Knoxville.  But make no mistake, prices are still increasing and rates may as well.  The sooner you can buy the better.  Contact us today to get started!

 

Builders Show Gives Ideas For Building A Home In Knoxville

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international builders show and knoxville buildersThinking of building or doing some remodeling on a home in Knoxville?  Each year new products hit the market that can give you ideas if you are building a home in Knoxville.  At this years International Builders Show in Las Vegas some of those new products were on display.  The video below shows some of the new innovative products hitting the building materials market.  If you are thinking of building a home in Knoxville or selling a home in Knoxville and need some advice, contact the 865 Real Estate team today and we’ll be happy to assist in any way that we can.

Knoxville Real Estate: Top 5 Things To Do Before and After Closing

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Closing a home in KnoxvilleIt’s finally done. The driving around. Looking at Knoxville real estate daily on the internet and in person. The offers. The counter offers. More counteroffers. The anxiety. The inspection. Now the time has come. That special day. Closing day, the day the keys are handed over and the movers are packed up and ready to deliver your life to a new home.

Troy Stavros, Broker and Partner with the 865 Real Estate team says, “Don’t breathe easy just yet. There are still some things to get in order to make the transition to your new home in Knoxville happen with minimum headaches. Some early planning can really make move-in so much better.”

Below are the Top 5 Things To Do Before and After Closing:

1) PLAN NEEDED REPAIRS WELL IN ADVANCE 
Whether it is needed repairs that the seller did not cover after inspections, or a small remodeling project to make the home more the buyer’s style, getting these lined up prior to closing will make the transition much easier. After closing the buyer’s hands will be full with unpacking and getting settled, so having these workers already in place will allow the work to get done faster and with less stress on the new homeowner.

2) SETUP THE UTILITIES
Most sellers will have arranged to have the utilities cut off on the day of closing. As if new homeowners don’t have enough on their plate with moving in, the last thing needed is no power or water. The best plan is to call the utility companies and setup the start date well in advance of closing. At that point the utility company may say that the seller has not given a notification of cancellation. If that is the case a simple reminder to the seller will be sufficient. Sellers are in the midst of packing up and may have forgotten as well. Take the lead and be proactive. Problem solved, future headache eliminated.

3) CHANGE THE LOCKS 
The new homeowner just received the keys to a new home. More than likely the buyers aren’t the only people with this same set of keys. Oftentimes a homeowner will give a key to neighbors, relatives, real estate agents, workman, etc. The moment the house and keys are in the hands of a new homeowner, it’s time to call a locksmith.

4) GET A CLEANING CREW
While some sellers will go to the trouble of having the home cleaned after move out, most do not. Who wants to move boxes and furniture, and basically everything a new homeowner owns into a dirty house. Start living in the home with a clean slate and a clean house.

5) HAVE A HANDYMAN READY FOR ACTION 
A new homeowner will have plenty going on during move-in. Having another set of hands around to take care of some of the projects might be just what the doctor ordered to save your back and sanity. Moving boxes to different rooms, moving furniture, etc. A few hundred dollars spent on a handyman or some college kids the day of move in is money well spent.

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