865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Knoxville Real Estate: Top 2 Reasons for Rising Home Prices

By

Knoxville real estate rising home pricesEvery week it seems, there is more news that home prices are increasing on a national level. Knoxville homes for sale are definitely following suit. The 865 Real Estate team, the leading Knoxville real estate team at Gables & Gates, REALTORS recently discussed with their clients the top 2 reasons why we are seeing home prices increase. Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “Many of our clients can’t understand how prices can be increasing, when what they keep hearing from the national media is how the market is still bad. The truth is, things aren’t that bad here in Knoxville and in many other parts of the country. Specific factors are leading to the nationwide price increases, so we thought we would educate our clients on them.”

Reason #1: First and foremost, Stavros stated, is what we learned in Economics 101. Supply and Demand. Nationwide the inventory of homes for sale are at historic lows. New homes are at their lowest level seen in 50 years. Existing homes for sale are at a 10 year low. Distressed inventory (i.e. foreclosures) has fallen as well. “Buyers are still out there. A smaller pool of homes to choose from and buyer demand leads to competition for properties. Where competition between sellers might lead to lower prices, competition between buyers leads to higher prices.”

Reason #2: Why is there a demand to buy a home now? Affordability. Stavros said, “Many buyers are not only seeing the chance to buy homes that are at bargain prices, but they are realizing the impact it can make on their budgets. Why is that? Two words: Rates and Rent.” With mortgage interest rates at all time historic lows, a home buyer has more purchasing power than ever before. It wasn’t that long ago that interest rates were 7%, and now they hover around 3.5%. On a $1500 a month, 30 year mortgage payment, today’s rate lets you afford almost $100,000 more house. Stavros says, “That is buying power! Couple that with the rising cost of rent, and renters are coming out of the woodwork to buy homes, and those that aren’t should be.”

The advice of the 865 Real Estate team to local clients scouring Knoxville homes for sale is don’t wait. “If you find something you like, and your agent, after researching tells you the pricing is in line, jump on it. Waiting too long or making a low offer are the too biggest reasons for losing a home you love. With these inventory levels, this is a different market. Old strategies for buying don’t necessarily apply.”

Knoxville Real Estate: Where is Home Remodeling Money Being Spent?

By

Knoxville real estate and remodelingIn light of today’s economy, one would think increasing a home’s value would be priority number one with homeowners. It seems that is not the case. Homeowners prefer to improve their homes through remodeling or decorating to benefit first and foremost themselves. Even with current Knoxville real estate prices and sales climbing, and the attractiveness of selling magnified, spending money on increasing a home’s value is taking a back seat. Troy Stavros, Broker and Partner with the 865 Real Estate team at Gables & Gates, REALTORS said, “As a REALTOR, I can’t help but think about how any remodeling project will effect a home’s resale value, but that is because I don’t live there. We have to remember that a home is where people live, every day. It is a major part of their family life and oftentimes work life. The investment aspect is typically toward the bottom of the list.”

Houzz.com, a web site and online community focused on interior design, decorating, and home improvement, recently completed a survey that confirms what homeowners are thinking. Among homeowners planning to build, remodel, or decorate in the next two years, 86% cited improving the look and feel of the space as an important driver for the projects. Only 47% cited increasing resale value as a reason for the improvements. The survey also stated that these priorities were consistent across all income levels and demographic groups.

Stavros stated, “The good news is that, according to the survey results, the projects being completed often align with those that naturally increase a home’s resale value. The most popular renovations being Kitchens and Bathrooms. More good news from the survey was that it showed 70% of the respondents paying cash for the projects. There is no better way to increase the value of your Knoxville real estate than sweat equity. Do what you can yourself. What you can’t do yourself, save up and hire a professional.”

When a buyer is searching Knoxville homes for sale, those updates to the Kitchens and Bathrooms can be what sets one home apart from the next. The 865 Real Estate team believes that making your home special for yourself, will often be the tipping point for making it special for a buyer. Their advice is to enjoy the home. Make it personal. It is a home first and investment second.

Knoxville Real Estate: Energy Star Features Save you Money!

By

lower energy bills in Knoxville real estateKnoxville Real Estate: Today more than ever, energy efficiency is of utmost importance.  Since partnering with Schaad Residential Construction, LLC, one of the few 100% committed Energy Star builders in Knoxville, we have seen the incredible impact living in an Energy Star home can have on a client’s utility costs. Troy Stavros, Broker and Partner with the 865 Real Estate team said, “The monthly savings on a client’s utility bills can be dramatic. We are talking hundreds of dollars a month. I think very few people understand the magnitude of the savings and the positive impact it can have on the environment. It’s now our job as a marketing partner with Schaad Companies to get that word out.”

So what features make an Energy Star Certified home different than typical Knoxville homes for sale, and what value do those features bring?  The features according to the Energy Star website are:

Optimal Value Framing and insulated headers: This is good for energy efficiency and good for the environment.

Closed/Conditioned Crawlspace. These perform better than a vented crawlspace in terms of safety, health, comfort, durability, and energy consumption.

Energy Star windows. These help reduce energy bills and reduce condensation. The benefit is a cooler home in the summer and warmer home in the winter.

Air Sealing. This is basically sealing every hole where wires penetrate through a wall (both interior and exterior). For those searching Knoxville real estate for some peace and quiet, Air Sealing reduces outside noise leading to a quieter home. It allows for less pollen, dust, pollution, and insects to enter the home. It lowers the moist air flow through a home ultimately improving the durability of the structure. It also lowers energy use, leading to lower utility bills.

Improvements to ductwork and overall HVAC improvements. The sealing of ductwork prevents leakage of conditioned air and can improve a system’s efficiency as much as 20%. Ductwork is wrapped in insulation and oftentimes an additional layer of insulation is blown over the ductwork in the attic. 15 Seer seer, high efficiency gas HVAC units can be located in the conditioned crawl space.

Energy Star fixtures. Energy Star rated lighting uses 1/4 the energy of traditional lighting and are constructed to last longer.

Energy Star Appliances. These appliances incorporating advanced technologies can 10%-50% less energy and water than standard models.

Thermal Air Barrier Alignment. This ensures that there are no gaps, voids, or compression in the insulation materials. An effective air barrier leads to a tight house and minimal lost energy.

Tankless Hot Water Heaters. These provide hot water only when needed. Traditional storage water heaters produce standby energy losses that cost the homeowner money. When looking at Knoxville homes for sale, keep an eye out for this upgraded feature.

Radiant Barrier Roof Deck. This stops radiant heat through your roof, reducing temperatures in the attic by up to 30 degrees!

Stavros concluded, “As you can see there is a big difference in what goes into an Energy Star Certified home. The biggest difference though, is what you will be paying the utility companies every month.”

Top 10 Knoxville Luxury Homes with Largest Price Reductions

By

Knoxville real estate luxury homes price reductionsAre you in the market and looking for Knoxville luxury homes, but waiting on the market to give you a deal?  Oftentimes you can really see who is motivated to unload their Knoxville real estate by watching for large price reductions.  This often signals that sellers are tired of waiting and are ready to unload their property.  In the case of many luxury homes, affluent buyers many not have a mortgage on their property.  When this is the case, and paying off a balance isn’t an issue, you can sometimes buy a home for less money that it would take to reproduce it.  That being said, for all you deal hawkers out there, below are the luxury homes with the 10 largest, most recent, price reductions.

[idx-listings city=”Knoxville” minprice=”750000″ maxprice=”10000000″ statuses=”1″ propertytypes=”1262″ orderby=”OverallPriceDropPercent” orderdir=”DESC” count=”10″ showlargerphotos=”true”]

Knoxville Real Estate: National Housing Market Predictions

By

Knoxville Real Estate Housing Market PredictionsTroy Stavros, Broker and Partner with the 865 Real Estate team stated, “Whether it is when we are working with buyers looking at Knoxville homes for sale, speaking with our current sellers, speaking with past clients or talking with complete strangers, the question always comes up… What is happening with Knoxville real estate and where do you see it going?

Equipped with information from the National Association of REALTORS that was garnered at the recent 2012 Realtors Conference and Expo, the 865 Real Estate team shared the forecast. Stavros said, “With the important caveat that credit does not tighten further and a fiscal cliff is avoided, Knoxville home prices should continue to rise.” The 865 Real Estate team quoted NAR economist, Lawrence Yun who predicted a 6% increase in the median home price in 2012, followed by an increase of 5.1% in 2013, and comparable increases in 2014. Along with prices, sales are projected to increase each subsequent year as well. With 2012 seeing a 9% increase to 4.64 million, and 2013 increasing to 5.05 million, then 2014 to 5.3 million. The amount of distressed sales is predicted to decrease from about 25% in 2012 to only 8% in 2014. Economists saw mortgage interest rates increasing to and average of 4% in 2013 and moving higher to 4.6% in 2014 caused by inflationary pressure.

Stavros also noted that these predictions are for the national real estate market and reminded the 865 Real Estate team clients that Knoxville real estate has fared much better than most other markets. “Looking at the local market, with distinct indicators such as low inventory, buyer demand, and competitive bidding tells me there is only one place for our market to go, and that is up. The only reason I can see this not happening is if buyers cannot access money to buy Knoxville homes for sale, i.e. lending standards get tighter, or if there is a major governmental breakdown such as the fiscal cliff.”