865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Come visit our 5 OPEN HOUSES for Nationwide Open House Weekend!

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Nationwide Open House Weekend 2013It is Nationwide Open House Weekend and the 865 Real Estate team is participating with 5 beautiful homes for sale in Knoxville.  The open houses will be in the following Knoxville and Farragut neighborhoods: Fox Den Subdivision, River Sound Subdivision, Wentworth Subdivision, Saddle Ridge Subdivision, and Cabot Ridge Subdivision.  Prices range from $289,900 to $699,900.   Come visit any of these Knoxville open houses on Sunday between 2-4PM.

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Higher Home Prices, Lower Inventory, What’s causing it?

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Knoxville real estate higher prices lower inventoryAccording to the National Association of REALTORS, the national median home price saw the strongest year-over-year increase in seven years as a growing number of metropolitan areas posted higher median values in the fourth quarter of 2012.

What are the factors causing the price increases of today’s real estate in Knoxville and beyond?

1) Attractive affordability conditions:

  • Mortgage interest rates are hovering near record lows.
  • Quoting NAR President Gary Thomas, “In reality, home prices overcorrected on the downside and homes in most of the country were selling for less than replacement construction costs, which means they were undervalued.”
  • Lawrence Yun, Chief Ecomomist for NAR stated, “The housing affordability index shows that the national median income of families was almost double the income needed to buy a median-priced home in 2012, so most buyers are able to stay well within their means.”

2) Decreasing rent affordability (rising rent prices)

3) Demand for housing:

  •  The population has been growing faster than overall inventory of Knoxville homes for sale.
  •  Unsold inventory, nationally, is at the lowest level in 12 years.

4) Job creation:

  •  Steady job creation leads to more buyers in the real estate market.

Troy Stavros, Broker and Partner with the 865 Real Estate team at Gables & Gates, REALTORS says, “These factors have not only increased the value of Knoxville real estate but have turned what was a buyer’s market no so long ago, into a seller’s market.”

Knoxville Real Estate: Fannie Mae National Housing Survey Results

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Knoxville Real Estate and the Fannie Mae Housing SurveyThe most detailed survey on the attitudes of consumers of its kind, the Fannie Mae National Housing Survey polled 1,003 Americans via live telephone interview to assess their attitudes toward the housing market and overall consumer confidence.

Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “We see, on a daily basis, the increase in consumer confidence. The influx of buyers into the Knoxville real estate market, that is resulting in a dwindling inventory of Knoxville homes for sale, speaks volumes.” Echoing Stavros’ sentiments, the Senior Vice President and Chief Economist for Fannie Mae was quoted as saying, “”The housing market continues to firm, with consumer home price expectations for both rental and ownership properties near the strongest levels that we’ve seen in the survey’s two-and-a-half-year history. Concerns about job loss are waning as payrolls are growing – a trend that may give potential homebuyers more confidence that they can meet the financial obligation of homeownership. The upward trend over the past year and a half in the share of consumers who say it’s a good time to sell may reflect two related events. First, homeowners see that home prices are improving. Second, the number of homeowners who are underwater is declining, reducing a barrier for those owners who need to sell their home in order to buy a new one.”

The summary of the results of Fannie Mae’s January 2013 National Housing Survey are:

  • More survey respondents believe now is a good time to sell a home (up 12% from last year’s results). Stavros says, now is a great time to be selling a home in Knoxville because the resulting low inventory levels has turned it into a seller’s market.
  • Expectations around personal finances remain flat.
  • Approximately 41% of respondents believe home prices will rise in the next 12 months. Stavros confirms that the Knoxville real estate prices have already risen and continue to do so.
  • Respondents believing prices will continue to drop reached a low of 10%. Stavros stated, “There will always be that select few that refuse to believe that something positive is happening. Unfortunately those are the same folks that don’t take advantage of good market conditions, and watch as they pass them by.”
  • 41% of respondents expect mortgage rates to rise in the coming year. Stavros believes Knoxville mortgage rates will rise slowly, but will stay below 4% for the rest of 2013.
  • 50% or respondents believe rental prices will rise in the next 12 months. Stavros confirms that Knoxville rental prices are already on the rise, and the law of supply and demand will send them even higher.
  • 65% of surveyed Americans said they would buy if moving in the near future.
  • Approximately 43% of Americans see financial situations improving over the next year.
  • 23% expect household incomes to rise significantly, an increase over a year ago.

Knoxville Real Estate: Top 10 Short Sale Misconceptions

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Knoxville_Real_Estate-Short-Sale-QuestionsQuick 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.

1309 Amber Glades Lane, Knoxville, TN 37922 Home for Sale

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Knoxville real estate at 1309 Amber Glades Lane, Knoxville, TN 37922UPDATE: SOLD! This immaculate Knoxville home for sale is located at 1309 Amber Glades Lane, Knoxville, TN 37922 which features 4 bedrooms plus a bonus room and is located in the Amberwood Subdivision in West Knoxville.  The main level features an open floor plan with the eat-in kitchen open directly to the family room. Perfect for making your cup of coffee and sitting down by the fireplace.  The main level is finished off with a formal dining room and office with french doors.  Walk out just past the kitchen and family room into the extensive screened porch where you can relax and watch all of the activity in the flat, fenced backyard with play areas.  Step out of the screened porch to do some grilling or enjoy dinner outside on the flagstone patio.   Upstairs you will find the spacious master bedroom suite, 2 additional bedrooms with walk-in closets sharing a Jack ‘N Jill bath, the bonus room and laundry room with utility sink.  Venture up to the 3rd level to the 4th bedroom suite complete with private bath.  Amberwood subdivision features sidewalks lit by street lamps making for an easy walk, night or day, to the neighborhood pool or a friends house. Contact us today with questions or to schedule your private showing.

 

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