Home Buying Archives - Page 39 of 40

FHA 203(k) loan wraps repair costs into your 30 year mortgage

June 7, 2012 By Troy Stavros

Purchasing a fixer upper or foreclosure in Knoxville means you are getting a getting a good deal, but with that deal is the price of repairs. Foreclosure website RealtyTrac, states that foreclosures sold at an average discount of 27% compared to non-distressed properties in the first quarter of 2012. A great option for Knoxville home buyers picking up a fixer upper or foreclosure is the FHA203(k) loan. It allows potential buyers who want to purchase a discounted foreclosure but don’t have cash for the repairs to wrap the cost of repairs into their loan.

According to HUD, the 203(k) program is the department’s main program for rehabilitating and repairing single family properties, and it’s viewed as an important tool to revitalize neighborhoods.

Eligibility for the property requires that it be purchased as a primary residence, and it must be a one-to four-family residence that has been completed for at least one year.

The maximum loan amount that can be obtained for the property is based on the value or the purchase price of the property before rehabilitation (whichever is less), PLUS the estimated rehabilitation costs (or 110% of the property after improvements, according to HUD).

How a low-ball offer on a Knoxville home for sale can cost you more

April 30, 2012 By Troy Stavros

Are you hurting yourself by submitting low-ball offers on a Knoxville home for sale? A year ago 10% of REALTORS® were vocal about receiving low-ball offers on homes for sale. A low ball offer consists of an offer submitted by a potential home buyer for 25% or more below the list price. According to a National Association of REALTORS® survey of its members, that number has dropped drastically.

The survey taken in March of 4,500 agents and brokers returned the data that NO REALTORS® complained about low-ball offers. What is the reason for the drastic reduction in low-ball offers? The same thing we’ve talked about in recent articles, a lack of good and marketable inventory. The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.

Home buyers thinking they still have an opportunity to steal a Knoxville home with a low-ball offer are finding that their offers are more often being rejected or being countered closer to the original asking price. Sellers, knowing they are priced correctly, are negotiating aggressively with low-ball offers which oftentimes has the final sale price landing close to the original asking price.

So what is the moral of this story? Throwing out low-ball offers at sellers may have been an effective approach between 2008 and early 2011. But now, in 2012’s Knoxville housing market it could be counterproductive if you truly want to buy.

Getting pre-approved in Knoxville doesn’t mean the bank won’t deny your loan!

March 20, 2012 By Troy Stavros

If you have listened to the national news at all, you know that banks have tightened their underwriting standards making it more difficult for some Knoxville home buyers to get approved for financing. The very first step you should take in buying a Knoxville home is getting pre-approved for a loan to know where you stand and what price range/payment will be comfortable for both you and the bank.

While some may think getting pre-approved in Knoxville makes your loan ready to close, think again. There are things you can do between the time you are pre-approved and the time you are ready to close that can kill your loan approval. Buyers must be very careful not to do anything that could potentially harm your credit before closing. Examples of things that have made banks deny final loan approval and ultimately kill a transaction are running up existing credit cards, applying and opening new credit cards, making large purchases with credit (such as new furniture or appliances for your upcoming closing), buying a car, etc.

You are getting ready to make probably the largest purchase of your life. Now is the time to be frugal. If you can’t hold off on the new furniture or appliances, at least wait until after you leave the closing table.

Source: “When Good Deals go Bad,” Chicago Tribune (March 16, 2012)

The best way to search Knoxville homes for sale

January 27, 2012 By Troy Stavros

If you’re a new visitor searching Knoxville homes for sale on our Knoxville real estate search tool, you will quickly notice that we are offering the most powerful home search platform in the entire Knoxville market. We take the full data feed from our local MLS and run it through our custom software that allows you as a consumer to search through ALL the homes for sale in Knoxville utilizing capabilities far superior than those even offered to the MLS agent subscribers. While many would be satisfied with what we have done, we continue to add new and exciting features to the system to make searching Knoxville homes for sale even easier.

Until now you’ve been able to search by:

Arial map
Zip code
Foreclosure status
Days on the market
Features (beds, baths, lot size)
Amenities (hardwoods, garage)

Well, now by popular demand, you can also search by radius of a specific address or landmark.

Want to be 5 miles or less from work? How about 1 mile or less from school or church? No problem!

This will also be a terrific tool for home owners who want to be notified about new listings that pop up in their own neighborhood.

Start your own radius home search today – and don’t forget to “Save This Search” to have the updates emailed to you.

Can’t figure it out? Let us know and we will be happy to set up a search for you.

Thinking about buying a Knoxville home? Nervous? Ask yourself WHY to both.

January 5, 2012 By Troy Stavros

Are you in the market to buy a home in Knoxville or beyond? Are you worried about whether you are buying at the right time and scared that prices may continue on a downward trend? If you are thinking about buying, the number one question you have to ask yourself is WHY?

The question of WHY, seems like it should be easy enough to answer but make sure you think about the real reasons. Many experts are predicting that, in many markets across the country, home prices will continue to decline. This news, which is so prevalent in the national media, has caused many buyers to stay on the fence of indecision hoping to find that perfect time to buy. If you are planning on purchasing a home to flip or sell quickly as an investment, waiting makes perfect sense.

However, what if your reason for buying a Knoxville home isn’t necessarily about making money? Does it still make sense to wait? Ultimately that depends on WHY you are buying. Perhaps the real reason you are buying a new home is to improve the quality of life for your family. Maybe you are moving across town into a school district where you feel your child could be better served. You could be trying to get closer to friends and family. Delaying these moves may end up costing you more than money.

Sure, no matter why we are moving we want to be sure we are making a good financial decision, but delaying and hoping to ‘time’ the market might not make sense. A recent article by John E. Girouard on Forbes.com last week addressed this issue:

“Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”

He went on to say:

“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”

What does all this mean? It means that you shouldn’t base your decision on buying a home solely on finances. Look at the real reason you want a new Knoxville home and let that weigh at least equally in the decision. Oftentimes getting in that new school district, or closer to family and friends, and improving your quality of life can make a POSSIBLE financial loss seem inconsequential. Ask yourself what is really important.

What are the long term benefits of buying a home vs. renting a home in Knoxville?

January 5, 2012 By Troy Stavros

This infographic from Forbes.com explains pretty clearly the long term benefit of buying a home in Knoxville versus renting. The American dream is alive an well and as this shows can in turn help you save for retirement. Renting may be a good option if you are planning to stay in a location for a short term, but if you plan to live in your home for an extended period, buying is the right move.