Home Selling Archives - Page 24 of 28

Home Price Trends in Farragut, Knoxville & Beyond

March 20, 2015 By Troy Stavros

I recently wrote an article that talked about why homeownership far outweighs renting when it comes to building net worth and also posted another article about why a billionaire says buying a home to live it is the single best investment. One of the most important factors when seeing if owning a home is a good investment, is to look at the quality of that investment over time. We can do that by looking at the home price trends in Farragut, Knoxville, and beyond. We all know from looking at the stock market that investments fluctuate. Some years they go up, other times they go down, but most experts say it’s important to buy and hold an investment to allow it to really be fruitful. That’s what we typically do with owner occupied real estate. We buy it to live in for years to come. Let’s see how our investment would have done if we bought over the last few years.

Farragut TN Home Price Trends

From 2013 to 2014 median home price went up by 15.72%
From 2012 to 2013 median home prices went down by -4.07%
From 2011 to 2012 median home prices went down by -2.64%
From 2010 to 2011 median home prices went up by 2.71%
From 2009 to 2010 median home prices went up by 2.52%
From 2008 to 2009 median home prices went down by -12.24%
From 2007 to 2008 median home prices went up by 10.55%
From 2006 to 2007 median home prices went down by -3.42%
From 2005 to 2006 median home prices went up by 6.26%
Today’s median sale price in Farragut is $315,750 compared to $265,000 in 2006.

So, these numbers show us that over the last 10 years, even going through the real estate downturn, the average home in Farragut saw a price appreciation of 15.39%.

Knoxville TN Home Price Trends

From 2013 to 2014 median home price went up by 2.66%
From 2012 to 2013 median home prices went up by 4.72%
From 2011 to 2012 median home prices went down by -1.36%
From 2010 to 2011 median home prices stayed flat at 0.00%
From 2009 to 2010 median home prices went down by -0.07%
From 2008 to 2009 median home prices went down by -5.41%
From 2007 to 2008 median home prices went down by -4.52%
From 2006 to 2007 median home prices went up by 3.74%
From 2005 to 2006 median home prices went up by 6.80%
Today’s median sales price in Knoxville is $149,900 compared to $145,000 in 2006.

This shows us that Knoxville as a whole over the last 10 years, even after the housing downturn, the Greater Knoxville area saw a price appreciation of 6.56%.

National Home Price Trends

The infographic below shows the history of appreciation in the national housing market:

What does this mean for you?

While the numbers above might not look like a home run investment as far as percentage increases go, ask yourself, what other investments can you live in and enjoy with your family? What other investments can you pay down and build equity in? What other investments can you sell after two years and keep all of the profit that you’ve made, tax free! I don’t know of any others. Plus, have you seen what your money earns in the bank lately?

The following graphic shows what experts predict as far as home price trends over the next 5 years:

Keep in mind that all of the numbers above are median averages, and always remember that real estate is local. Local, down to the side of the street you live on sometimes. Your neighborhood might be appreciating significantly more or less when compared to one across town for various reasons. This is why it’s important to find a trusted real estate advisor, who knows the local Farragut real estate or Knoxville real estate markets. If you have questions about the market in your neighborhood, or want to know how much your home could sell for today, feel free to contact me, Troy Stavros with Gables & Gates, REALTORS and I would love to help. I am here to serve you!

For Sale By Owner Knoxville TN? Be Prepared!!!

March 11, 2015 By Troy Stavros

With a good market for homes in Farragut and Knoxville, some sellers might be seduced into trying to sell their home on their own without the assistance of a real estate professional (or For Sale By Owner Knoxville TN or FSBO). So if you choose to try that route, what can you expect? First and foremost you can expect to negotiate.

While good real estate agents in Knoxville and Farragut are trained and have years of experience in negotiation, in most cases, folks selling their home for sale by owner do not. Especially in the negotiation of real estate. While studies show that using a real estate agent, on average, nets a homeowner 13% more on the sale of their home, why is that?

Here are the reasons:

NEGOTIATION: Here is who you, as someone selling For Sale By Owner, will have to negotiate with because you don’t have a REALTOR®:

The potential buyer who is looking to buy the house at the lowest price possible
The buyer’s agent who’s job is to ONLY represent the best interests of the buyer
The buyer’s attorney (should they choose to use one)
The home inspector who works ONLY for the buyer and who will undoubtedly find issues with your home.
The termite company if issues arise.
The buyer’s lender to make sure financing is on track and also in the event that you are asked to participate towards closing costs and prepaids.
The home appraiser in the event there is a question of value and you are required to provide information on how you priced your home.
The title company should there be any questions regarding prior ownership, liens on the property from contractors, permit issues or any other challenges with certificate of occupancy.
The town or county in the event you need to get the information to give to the title company for proof.
They agent and or person buying the buyer’s house in the event there are any snags in the sale of their home (as most buyers will be selling a home to purchase yours).
Your bank in the case of a short sale.

MARKET EXPOSURE (it’s simple supply and demand. The more eyeballs that see the home, the more interested buyers, the higher the selling price. With over 90% of buyers looking for their home online, professional marketing is crucial. That marketing is using high quality pictures and video and putting those pictures and video on ALL of the available real estate portals that buyers use to search. I mean let’s be honest, do you really think you can expose your home to more people than a professional agent?

WHERE ARE THE BUYERS? First, as stated above, they are on the internet, but 2nd and just as important, the buyers are working with real estate agents. From above we know that over 90% of buyers use the Internet to search for homes, and that’s huge. But just as huge from the perspective of a home seller is the statistic that says that 90% of home buyers who used the Internet to search for a home, ultimately purchased through a real estate agent!

As you can see, there is quite a bit that goes into selling a home in Farragut and Knoxville. And we haven’t even touched on paperwork. The paperwork involved in selling and buying a home has dramatically increased with the ongoing addition of disclosures to protect all parties and additional mandatory regulations. Going it alone may open you up to legal issues down the road. This, along with many other reasons, is why the percentage of homeowners choosing to sell For Sale By Owner in Knoxville and Farragut has dropped significantly. Nationally, people selling FSBO has dropped from 19% to 9% over the last 20+ years. Heck, I even read in an article that the Chief Executive of BuyOwner.com, when it came time to sell his Florida mansion, decided to list with a real estate agent instead of going it alone. If that story wasn’t enough, a few years back, Colby Sambrotto, the CEO of ForSaleByOwner.com, also called in a real estate agent when it was time to sell his home. That’s pretty telling! Two high powered executives, of companies trying to convince people to sell homes through their FSBO sites, recognized the value in using a real estate professional.

Obviously the choice is yours, but before you decide to tackle the myriad of challenges involved in selling your home For Sale By Owner, sit down with a professional in your marketplace to see what they have to offer. If you are in Farragut or Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS and I’d be happy to sit down and talk about your situation and how I can help. Interested in finding out what your home could sell for? CLICK HERE.

Home Depot & Lowes Know The Knoxville Housing Market!

March 9, 2015 By Troy Stavros

You might be asking yourself, Troy, how can home improvement stores like Home Depot and Lowes know about the Farragut and Knoxville housing market? Like any large corporation, those stores have financial officers and economists in place to help them make decisions about their business. A recent Bloomberg business article reported that Lowes and Home Depot both beat their 4th quarter profit projections by the largest amount in 6 quarters.

Robert Niblock, Lowes Chief Executive Officer recently said, “Consumers are feeling better about their jobs, their wages, and certainly feeling better about the value of their home. They are re-engaging in projects that they have put off.” In a nutshell, CONSUMER CONFIDENCE is rising! During the 4th quarter of last year, both Home Depot and Lowes saw a significant increase in sales to builders and professional contractors. Carol Tome, Chief Financial Officer at Home Depot said, “It’s a sign of health. If they are putting more items in their basket, it means they have work coming at them.”

Lowes has been conducting a quarterly consumer survey since 2007. In it’s latest survey, the percentage of respondents who said that the value of their home is rising was over 50%. This is the highest value since the inception of the survey. According to the stores, increased confidence in the value of one’s home, often spurs homeowners to start larger projects. Not everyone is starting projects on a home they are planning on staying in either. Many are getting their Knoxville or Farragut homes ready to list this Spring, and with good cause. Updating an outdated kitchen or bathroom can bring a higher price in today’s market.

Home Depot and Lowes aren’t the only indicators of rising prices. The National Association of REALTORS® reports that the median price for an existing home rose, year over year, for the 35th month in a row!

What does this mean for you?

If you are thinking of selling a home in Farragut or Knoxville this year, contact a trusted local agent who can give you insight on the market and what improvements might help get your home sold. An agent that will tell you what changes could bring you the highest return on investment and final sales price. This is something I do for all of my clients. Between myself and my professional stager, we will have your home showing the best it possibly can.

Have questions? Contact me, Troy Stavros with Gables & Gates, REALTORS® and we’ll find a time convenient for us to sit down and talk about your plans and goals and the best strategy for fulfilling them! Interested in finding out how much your Farragut or Knoxville home is worth? CLICK HERE TO FIND OUT.

Thinking Of Selling A Home In Farragut or Knoxville? HURRY!!

March 6, 2015 By Troy Stavros

As I received the latest data on the 2015 housing market, one thing is for sure: If you are considering selling a home in Farragut or Knoxville, the time is now!

Yes, existing home sales dropped in January compared to December. But, nationally if we compare the current September-January time period to the same period a year ago, it shows that existing home sales have surpassed last year every single month, with the January national sales numbers being 200,000 homes greater than last January. Farragut, TN had a 19.8% increase! Knoxville as a whole saw a 11.2% increase.

Pending home sales (houses that have gone under contract) as reported by the National Association of Realtors have also done much better in the last five months compared to last year:

Data also shows that the demand for homes from buyers in the market has increased significantly over last year as well:

But with all of the positive buyer activity above, data shows that inventory levels are lower than last year, which is a huge win for folks who are selling a home in Farragut or Knoxville. Knoxville’s inventory of homes for sale is down 8.5% from last year and the amount of homes for sale in Farragut is down 12.5% with new listings in Farragut down 13.3%.

What does this mean for you?

If you are thinking about selling your home in Farragut or Knoxville, with demand increasing and supply dropping, this is the optimal time to get the best price for your home and get it sold in the fastest time possible. Contact me, Troy Stavros with Gables & Gates, REALTORS® today to see whether that is the case in your particular neighborhood. Remember, real estate is local and can be different not only from town to town, but neighborhood to neighborhood and house to house. Interested in finding out how much your home could sell for? CLICK HERE TO FIND OUT.

Farragut Zestimate Off By More Than $100,000!

February 28, 2015 By Troy Stavros

If you are wondering what your Farragut or Knoxville area home is worth and you think Zillow is going to give you an accurate “zestimate”. Think again. I sold a home yesterday in Farragut’s Fox Den Subdivision and the Zestimate on the day of the closing was off by more than $100,000! The home at 228 Baltusrol Road, Knoxville, TN 37934 (which was actually my personal home) closed on February 27th, 2015 for $690,000. What did Zillow say it was worth on the same day? Are you ready for this? $585,583. Zillow was off by a whopping $104,417. Can you see how important it is to have a local professional guide you in the process? There are folks selling their homes for sale by owner, pricing them according to the Zillow Zestimate, that could be losing huge amounts of money. Sites like Zillow and Trulia and sites that say they can give you an “instant estimate” are simply pulling information from tax records, which in Knoxville are known for being inaccurate. They aren’t taking into account and updates you’ve done, or any special features your home might have that can drastically effect the sales price. For example, in Fox Den, if you had an identical house, and one was on the golf course and one was across the street (not on the golf course), there would be a huge difference in what those homes could sell for. For an accurate estimate on what your home could sell for, call a local real estate agent who knows the market. Are you thinking about selling? Contact me, Troy Stavros with Gables & Gates, REALTORS® today to schedule a time to sit down and talk about your situation. Are you interested in finding out the real worth of your home? Click here to find out.

Knoxville Home Sales – Winter Housing Market Update

February 25, 2015 By Troy Stavros

You may have read some national headlines lately regarding the housing market, but how have Knoxville home sales fared? The National Association of REALTORS® recently released their Existing Home Sales report and like most typical news sources, many headlines are blowing January’s decline in home sales out of proportion to grab attention, without really looking at the numbers. Headlines such as, “Existing home sales collapse in January despite low mortgage rates”.

Anyone in real estate can share with you the common knowledge that there is a slowdown in the winter months. Many markets share this seasonality and January is where it often hits. This can be seen by the graph below. But what the news media doesn’t share is that nationally, existing home sales increased by 200,000. Knoxville home sales, in January of 2015 saw a 10.1% increase over January of 2014 and Farragut home sales saw a 33.3% increase! Over the last year, Knoxville also saw the median sales price increase by 11.62%, Farragut saw a 3.32% increase. A big reason Knoxville home sales are down in January of this year, is that the inventory of homes for sale in Knoxville and Farragut have decreased, Knoxville by 8.7% from January of last year and Farragut down 12.5%. On a month to month basis, inventory in Knoxville has decreased by 7% from December of 2014 with Farragut down 6%. You might be asking yourself, where has the inventory gone? Much of it is now under contract, as the number of homes “pending sale” increased from December of 2014 to January of 2015 by 25% in Knoxville and 27% in Farragut! This screams that buyers are in the market and that equals demand.

So demand is there, as witnessed by the graphic below showing that buyer demand is actually 3x greater than last year.

The chief economist of the National Association of REALTORS®, Lawrence Yun, mentioned what he feels is the real cause of the January slowdown: “Realtors® are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions.”

The buyer demand is there, buyers are out looking, but they are having trouble finding their dream home amongst the low inventory.

What does this mean for you?

If your plan was to wait until Spring to sell your home in Knoxville or Farragut, that plan may not help you get the most money for your home with the fastest sale. The information above points to right now being the optimum time to go to market. If you have any questions about selling or you would like to sit down and discuss your plans, contact me, Troy Stavros with Gables & Gates, REALTORS® to schedule a time that works best for you. Interested in finding out how much you could sell your Knoxville or Farragut house for? CLICK HERE TO FIND OUT.