Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. Today I talk about why it’s probably a good move to move!
Why Use Troy Stavros As Your Knoxville Real Estate Agent? Ask Jenny!
Here is a fun video that I just released with some of the reasons why my clients like working with me, Troy Stavros, as their Knoxville real estate agent. Don’t get me wrong, there are some great agents in the Knoxville market. Here, I’ve used information that I constantly hear from buyers and sellers that come to work with me after they’ve had experiences with some other Knoxville real estate agents. So many people say they just never received good communication. I can’t fathom how agents would not return the phone calls of interested parties. I get freaked out if I don’t get back within 5 minutes! The second biggest complaint was that the agent could not work around their schedule. If you talk with any of my clients, I’m confident they would say that I am super flexible as far as appointments. The third issue was trust. Not surprising. If folks can’t get calls back or an appointment scheduled that is conducive to their schedule, and an agent seems like they don’t have their best interests in mind, well I wouldn’t trust them either. It seems like many agents treat their clients like a number instead of a real live person. Trying so hard to push large volume, that the client doesn’t get the service they deserve. I promise you, that’s not me! Either way, I look forward to talking with you about how I can serve you best. Talk with you soon!
VIDEO: Take Flight Over Fox Den Subdivision
I love seeing new perspectives of the neighborhoods in Knoxville that I work in on a regular basis. With the technology that I use to market my seller’s properties I have the ability to get some stunning views of Knoxville homes, Knoxville subdivisions, and many landmarks in Knoxville. My latest video takes us over Fox Den Subdivision in Farragut, Tennessee as the sun is beginning to fade on a cold winter day. Witness the beautiful colors accented by the setting sun and the Smoky Mountains in the background.
Contact me, Troy Stavros, to talk about how I can use these marketing techniques to get your Knoxville home sold. I look forward to hearing from you!
Knoxville Real Estate: Top 3 Things Lenders Love
So you see that the prices on Knoxville homes for sale are rising and you have made the decision to take advantage of the historically low interest rates being offered by banks on Knoxville real estate. Although the uber-strict lending standards that were suffocating the market are letting up a bit, there are still distinct criteria which you will have to meet to be found credit worthy.
The Top 3 buyer traits that lenders love are:
- #1 Top Notch Credit History – The very first thing a lender will do is pull your credit report and look for a good, solid credit history. While perfection isn’t needed, you need to know that should you be approved your credit history will ultimately have an impact on the interest rate you receive. The better the credit history, the lower the interest rate and vice versa. Lenders we spoke with said a score of 750 and above will get you the best possible rate and conditions. 720 and above will still get you close the best rate, but other conditions may not be the same. Scores below 640 will find it difficult to get approved for a loan.
- #2 Low LTV or Loan to Value Ratio – Because the risk of default is always at the forefront of a bank’s lending decisions, Loan To Value Ratio is a huge part of that equation. It is one of the key risk factors that lenders assess when qualifying a potential buyer for a loan. The Loan to Value Ratio is the ratio of the loan amount compared to the appraised value of the home. For example if you were obtaining a loan of $300,000 on a home appraised for $350,000 the LTV would be 86% ($300,000/$350,000). You may have heard that most lenders want a 20% down payment. This is because lenders like to keep the Loan to Value Ratio at about 80%. Similar to having a above average credit score, if you are able to lower your Loan to Value Ratio, it can improve your interest rate and conditions.
- #3 Stable Income – This important aspect that lenders look closely at encompasses both your income and debt levels. They will want to know about your income. How much it is and how steady it is. How long have you been working at this particular job. Once they know what your income situation looks like every month they will look at your debt. Then they calculate what is called your “Debt to Income Ratio”. This ratio calculates two different things. First it takes your average monthly income and compares it to your housing expenses (mortgage payment, homeowner’s insurance, property taxes, homeowners association dues, mortgage insurance). The second calculates your average monthly income and compares it to your total recurring monthly debt payments (credit cards, car payments, student loans, etc.) Most conventional financing requires a Debt to Income Ratio of 28/36 (28% of your monthly income for housing expenses/36% of your monthly income for total expenses).
Here is an example:
In order to qualify for a mortgage for which the lender requires a debt-to-income ratio of 28/36:
- Yearly Gross Income = $48,000 / Divided by 12 = $4,000 per month income.
- $4,000 Monthly Income x .28 = $1,120 allowed for housing expense.
- $4,000 Monthly Income x .36 = $1,440 allowed for housing expense plus recurring debt.
Judging from the example above, if you make $4,000 per month, it means that a lender would be unlikely to approve an amount that resulted in your housing expenses exceeding $1120 per month or your total debt payments adding up to more than $1,440 each month.
Knowing these Top 3 Traits before speaking with a lender or looking at Knoxville homes for sale can give you a pretty clear road map of what you can expect. The key to a smooth Knoxville real estate transaction is eliminating surprises. The moral of this story is, before you jump into the home buying process, you should have these things squared away: 1) Fix any issues with your credit 2) Save up for your down payment 3) Reduce your debt.
For information on Knoxville Real Estate or for a referral to one of our trusted lenders contact us at 865-999-0925 or EMAIL US HERE.
What is the term “Pocket Listing” in Knoxville Real Estate
What is a pocket listing? When searching Knoxville real estate, one thing to keep in mind is that your Knoxville real estate agent may know of additional Knoxville homes for sale than what you are finding on internet sites. You may be asking yourself why that is. Aren’t all homes available for sale listed on the MLS and subsequently on the various real estate portals like Trulia, Zillow, and REALTOR.com? The answer to that question would be MOST, but not all Knoxville homes for sale are listed on the MLS.
Those homes not listed on the MLS are called “pocket listings”. They were called this originally because they were kept in the REALTORS pocket, out of public view. The definition of a pocket listing per Wikipedia is, “a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an “Exclusive Right to Sell” or “Exclusive Agency” agreement or contract, but where it is never advertised nor entered into a multiple listing system (MLS), or where advertising is limited for an agreed-upon period of time.” According to Troy Stavros, Broker/Partner at the 865 Real Estate team, “It most oftentimes is when a homeowner and a real estate agent have a casual agreement, that says if the agent comes across someone who might be a potential buyer of their home, the agent will bring that person to see the house.”
There are various reasons a seller might want to keep their home as a “pocket listing” as opposed to traditional marketing. Some of those reasons are: privacy, secrecy, convenience, motivation and time. Many sellers want to sell their Knoxville real estate, but do not want the aggravation associated with showing the property. Keeping the home as a pocket listing often allows the agent to weed out those people who are just curious, and only show the home to serious, qualified buyers. To ensure this, the seller typically has a Knoxville real estate agent who qualifies all potential buyers on their availability to purchase prior to scheduling a showing appointment. Stavros stated, “Then there are those homeowners who may not be actively looking to sell, but will always move ‘if the price is right’, and oftentimes, for the right house, a motivated buyer will pay their price.”
Pocket listings may give buyers an extra advantage as well when searching for real estate which is not being advertised publicly This significantly reduces the amount of competition for a home. These special properties may be unique because they are sold privately and may never be intended to be listed on the Multiple Listing Service (MLS). Oftentimes these are high profile homes, with perhaps high profile owners.
For sellers of Knoxville real estate, because of the highly reduced amount of exposure and marketing, they must decide if exclusion from the MLS is in their best interest. For a buyer searching Knoxville homes for sale, it is important to work with a local agent who has established relationships, and is in communication with other agents in the community. This way, you can be sure that you will be aware of all potential Knoxville homes for sale.
Using Video Previews of Knoxville Homes for Sale for Relocating Clients
Troy Stavros, lead buyer’s agent at the 865 Real Estate is using video technology to assist both local and relocating clients in searching Knoxville homes for sale. Stavros said, “As the leading listing team at Gables & Gates, REALTORS we were already utilizing live video and professional photography for our home sellers, but have recently found out what a time saver it can be for my clients searching through the Knoxville homes for sale to buy. I was working with a few different families doing a corporate relocation into the Knoxville area when the idea came to me.”
“We are always looking for ways to make the process of buying Knoxville real estate easier for our clients”, commented Stavros. “I witnessed these families on a time crunch, struggling to get into town to look at Knoxville homes for sale while their kids were still in school, or while they were trying to transition from their old corporate position to the new one here in Knoxville. It can be very stressful. My solution was first to get all of their search criteria: from their dream home, to the house with which they could still be happy, to what they absolutely did not want. Second, if they could be in town we would visit some homes so I could observe their responses to what they were seeing. Then if we were unable to find the home on that first trip out, after they left Knoxville, I decided that they could still view homes that fit their criteria through the lens of my video camera. Our Knoxville Home Preview videos were born out of trying to lessen the stress of our relocating clients.”
“I’ve had multiple out of town clients say that they would get the family together to huddle around the computer with popcorn to watch the preview videos, excited to see if it could be their next home. This excitement would oftentimes lessen the negative feelings that some of their children might have felt about relocating.”
The key according to Stavros is the buyer consultation completed with the clients prior to starting the home search. This would allow them to paint the picture of the house they were looking for. It was then just a matter of finding the homes that fit their criteria and eliminating those that did not. Stavros would choose the homes to video as well as take recommendations from the clients as they searched the 865 Real Estate website from their end.
“It’s been a very popular tool for our clients. We have even had clients buy a home, site unseen, because of the video and their trust in that we had a firm grasp on their wants and needs.”