Home Owner Advice Archives - Page 4 of 5

Clues That Your Knoxville Home May Have A Drainage Issue

August 27, 2013 By Troy Stavros

Needless to say the Knoxville area has received quite a bit of rain this year. I heard someone say the other day that we have received more than Seattle this year! With lots of rain comes lots of water. With lots of water comes drainage issues in your Knoxville home. Here are some clues that your home may have a drainage issue that needs attention.

WHEN IT RAINS YOUR GUTTERS POUR – Is water flowing over the edge of your gutters like a waterfall in Cade’s Cove? If so this probably means that the gutters are full of debris (leaves, branches, etc). Not around to see the gutters when it rains? Then look for these other clues that your gutters are full: vertical streaks of dirt on the outside of the gutters, siding or brick splattered with mud, or vertical strips of peeling paint on the house. Solve this problem by keeping your gutters clean.
ABBREVIATED DOWNSPOUT SYNDROME – OK, it’s really not called that, but it’s still a problem. This is when your downspouts are too short and cause all of the water coming off the roof to dump next to the house. Did you know that a 1000 square foot roof can dump as much as 600 gallons of water? Guess where that water goes when your downspouts are too short? Right along your foundation, and if you have one, into your basement. Solve this problem by adding extensions to the downspouts, allowing the water to dump away from the house.
WATER STAINS IN THE BASEMENT – If you see water stains on the foundation walls of your basement you are experiencing a drainage issue. The staining is most likely being caused by surface water seeping down (caused by one of the issues above or because the soil is not sloping adequately away from your home). Solve this problem by eliminating the gutter issues mentioned above or regrading the soil so it slopes away from the home. If it is not being caused by one of those issues, it could be a larger issue such as the basement effected by a fluctuating water table or storm drains backing up during heavy rains. Solve this problem by having a professional install an interior drain system with pumps.
EXPANDING CRACKS IN THE FOUNDATION – Every home will eventually have cracks that come from normal settling. Those aren’t the cracks we are worried about. What you need to watch out for are cracks larger than 1/8″ wide that continue to expand. This may be a sign of a drainage problem effecting the foundation. Solve this problem by contacting a structural engineer to assess the situation. Better safe than sorry.
MOLD IN THE ATTIC – What? How do you get mold in the attic? Look for mold growing on the underside of the roof. Although this is at the top of the house it could be pointing to a drainage problem at the ground level. Oftentimes if their is a drainage issue causing moisture in the basement or crawlspace of a home, that moisture will rise through the house and form condensation on the underside of the roof in the attic. Solve this problem by finding the source of the moisture and eliminating it (most likely one of the causes mentioned above). Also check to be sure one or more bathroom vents aren’t venting directly into the attic as this can form condensation as well. If so, solve this by venting them through the roof or an outside wall.
WHO KEEPS MOVING MY MULCH! – If you notice your mulch moving, say onto your driveway, or depositing somewhere else, you have a drainage issue. Nothing major, but you’ll need to move some dirt around to help the soil drain properly. Always remember to keep the soil flowing downhill from your home as that is the way you want the water to run.

Have any other questions regarding real estate or need a recommendation for a contractor to help you with your drainage issues? Contact the 865 Real Estate team today!

Top 10 Features New Home Buyers Want and Don’t Want

March 1, 2013 By Troy Stavros

In a recent study released by the National Association of Home Builders, these questions were addressed to provide the most accurate data on buyer preferences to members. Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “Coming out of a downturn in the market, buyers are being more frugal about determining what features they really need, and those that are just wants, when searching Knoxville homes for sale. The study addresses the hierarchy of those features so builders can target buyers with new homes in Knoxville that hit those hot buttons.”

Top 10 Features New Home Buyers Want: (the following results were calculated by taking a combination of the features that buyers said are both essential and desirable):

#1: Energy Star Rated Appliances
#2: Laundry Room
#3: Energy Star Rating for the Entire Home
#4A: Exhaust Fan in Bathroom
#4B: Exterior Lighting
#4C: Bathroom Linen Closet
#5: Energy Star Rated Windows
#6: Ceiling Fan
#7: Garage Storage
#8 Table Space for eating in kitchen
#9 Walk-in kitchen pantry

Top 10 Features New Home Buyers DON”T Want:

#1 (wanted least): Elevator
#2: Golf course community
#3: High density community
#4: Only a shower stall in the master bath
#5: Gated community
#6: Mixed use community
#7: Two story family room
#8: Wine cooler
#9: Wet bar
#10: Laminate counter tops

Stavros says, “There is no doubting how this information can be beneficial to Knoxville builders, but it can also benefit a home owner getting ready to sell or remodel with resale value in mind. Look at what is important in the mind of the buyer and focus your efforts on features that will help you sell.”

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.

Knoxville Real Estate: Checking Your Credit Could Approve Your Loan

December 18, 2012 By Troy Stavros

Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “In today’s home buying process, 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 on Knoxville real estate. 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 Financial Protection Bureau (CFPB) released a report revealing only one in five people actually obtain a copy of their credit report each year. The report also stated, in 2011, 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.

Stavros said, “When looking to buy Knoxville real estate, 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 in October was 750, while the average denied loan had a score of 706. 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 December 14, 2012, a person with an average FICO score of 760-850 would receive a 2.975% rate on a 30-year fixed rate mortgage. However, if one had a score of 620-639, the rate would be 4.564%.

According to Stavros, “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.”

Knoxville Real Estate: Incredible Mortgage Percentages MUST READ!

December 11, 2012 By Troy Stavros

In today’s Knoxville real estate and mortgage markets we are seeing affordability and purchasing power like no other time in history. When rates are at historical lows, as they are now, they expand the home buyers purchasing power. While home prices have been low as well, the ultimate factor to purchasing power in the Knoxville real estate market is low mortgage rates. A perfect example of this is the fact that home prices are up nationally from one year ago, yet affordability is better. Why? Low mortgage rates.

Within the last week, rates on a 30 year fixed mortgage saw a new all time low at 3.32%. A recent article by Dan Green, of Waterstone Mortgage stated, “Since 1971 — a span of more than 500 months — the 30-year fixed rate mortgage rate has averaged 8.75%. You can buy 81% more home in 2012 for the same monthly payment as compared to the average of the last 40 years. Even as compared to one year ago, home buyer purchasing power is higher by 9.7%.” Wow, 81%, now that is some difference in purchasing power!

The second surprising percentage comes when looking at the difference between a 15 year and 30 year mortgage. While the big news usually focuses on the 30 year rate, according to Freddie Mac’s most recent weekly mortgage rate survey, conforming 15-year fixed rate mortgage rates and conforming 30-year fixed rate mortgage rates are both at their lowest levels in history.

Green also shared the following statistics. For those home buyers or home owners that can handle the extra monthly payment that a 15 year mortgage entails, they have the ability to save 63% in mortgage interest costs when compared to a 30 year mortgage. Yes, you read that correctly, 63%! For example, a homeowner in Knoxville, TN using a 15 year fixed mortgage at the $417,000 conforming loan limit would pay $88,000 in mortgage interest over the life of the loan. Utilizing a 30 year mortgage, the same homeowner would pay $242,000. Nearly triple the amount!

Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “Information like these two surprising percentages shared with us by Dan Green of Waterstone Mortgage, remind us how important it is to have trusted experts working for you. Going through the home buying process alone, thinking you know all the answers, is the surest way to get yourself into a heap of trouble. Seek out professional advice so you can make an educated decision. A home is a huge investment that you shouldn’t just cannonball into.”

Effect of Neighborhood Foreclosures on your Knoxville Real Estate Value

October 24, 2012 By Troy Stavros

What is the effect of neighborhood foreclosures on your Knoxville real estate value? Coming out of the harshest national housing downturn many homeowners have seen, we have all heard about the multitude of foreclosures that have taken place all across the United States. Knoxville real estate, while not hit as bad as many areas in the U.S., was not completely immune. Many families have been impacted directly by the loss of their home and the severe financial consequences that are introduced through the loss of what typically is their largest investment. These losses including but not limited to the extreme downgrading of their credit, loss of savings and retirement, and physical eviction.

But are there consequences to those families who live near those foreclosures? You might think yes, of course if there are large quantities of homes being foreclosed in the same neighborhood then there will no doubt be loss of tax revenue and the surrounding homeowners or homeowners association will incur costs to remedy those visible maintenance issues that so often go hand in hand with abandoned/foreclosed properties.

However, for this discussion we are most interested in the effect on homeowners living in close proximity to a Knoxville foreclosure and their ultimate loss through a depreciation in the value of their home. Researchers from the Center for Responsible Lending produced a report on this home depreciation caused by nearby foreclosures. Using data from the federal government as well as Lender Processing Services, they were able to calculate the loss in value of homes within a 1/8 of a mile proximity to a foreclosed home.

Their findings show that in all neighborhoods, the loss in value of homes within the 1/8 mile proximity equals 7.2 percent.

As we tell our clients daily, there are many factors that effect your home’s value. You must be sure to take them all into consideration when you are looking at Knoxville homes for sale or selling any Knoxville real estate.