The real estate roller coster leaves many questions

Let’s face it, times are tough and on any given day the mood is a different one than the day before.  The market’s up, then down, we’re in a recession, we’re recovering, it is hard to know what is really happening out there with so many mixed signals.  Real estate is difficult to figure out, and remains relative to where you are. Is real estate improving?  Sales are up, inventory is down but foreclosures are expected to keep coming, especially with unemployment figures on the rise.  To find out if real estate in your area is improving talk to a real estate agent and look at the statistics that they provide. Each market has it's experts and in Gatlinburg you can find yours at Century 21 Four Seasons Realty.  Have we hit bottom?  Parts of the country have hit bottom other parts still have a way to fall.  Home prices are apparently steady in parts of the country and climbing in others.  In Sevier county where you'll find Gatlinburg, Pigeon Forge and Sevierville, the fall of home prices has slowed and the number of sales has increased. This gives some professionals in our market the feeling that we are in for a persistent increase in the number of homes sold while the prices will start to increase modestly by the Summer and continue an incremental upward trend into next year.   It's not a return to the lofty prices of a few years ago but a steady rate of appreciation will be welcomed by everyone. In a nutshell, real estate is relative.  It is improving in many areas and as soon as our recovery includes job growth real estate is going to improve in many more areas. Click here for an article about real estate on Yahoo Finance.

Waiting for the bottom in real estate is similar to grabbing a yo-yo at the bottom, you are usually a little early or a little late

There are many people out there waiting for the bottom to hit in many facets of the economy, including real estate.  Perhaps there will be a big announcement one morning across newspaper headlines and across the internet “THE BOTTOM IS HERE: NOW IS THE EXACT MOMENT TO BUY”.  Of course by the time the announcement comes the bottom will have hit and the exact time to buy real estate will have come and gone. A great analogy to the bottom of the real estate market is a yo-yo.  Take a yo-yo in your hand and use it.  Can a person grab the yo-yo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after, rarely at the exact bottom.   Real estate is the same game, if it is indeed a game.  If people knew, absolutely knew, the exact time to buy stocks, real estate, or any other investment then no one would ever have a financial worry. For people who believe in investing in real estate now is a great time to buy.  Interest rates won’t be low forever, real estate has either already hit the bottom, is about to, or is already on its way up, we’ll know for certain sometime in the future.  If you want to buy at the bottom, buy now or wait until it’s too late, when you can look back and say, “If only I had bought then.”

There are a million ways to improve the look of your home, some are more expensive than others.  If you are thinking of selling your home or already have your home on the market here are some tried and true, inexpensive ways to improve your home and make it more appealing to a potential buyer.

• Paint.  Painting a home is something that anyone can do themselves, or hire a painter to do.  Fresh paint on the interior and exterior of a home makes it instantly appear clean and fresh.
• Clean & De-clutter.  Remove clutter, family photos and other personal items and clean and organize your home.  Clean your carpets.
• Repair & replace.  Have a broken window?  Fix it.  Does your screen door squeak, oil the hinges.  Look at your home with a fresh set of eyes and fix what looks broken or is broken.  Duct tape may be fine for you, but probably not a prospective buyer.

These are just a few things that you can do yourself.  It is a competitive real estate market out there and to sell your home quickly and for the most money it has to look its best. Here in the Smokies painting in natural, earthy tones instead of those more associated with beach colors adds more value. Also, in the mountains of Gatlinburg and Pigeon Forge the properties that blend with the surroundings get noticed first. 

Low interest rates have been gracing the real estate market with their presence for the past year but the word on the street is that they won’t be here much longer.  While mortgage rates aren’t going to skyrocket out of sight, it is doubtful that they will decrease and certain that they will steadily begin to rise.

For those wishing to lock in at below 5.5%, the time just might be now or never (or at least for a very long time).  This past week, the first week in April, the average 30 year fixed mortgage rate was 5.16%. Today, the rate is listed at 5.23%. The general sentiment among economists is that rates are not going anywhere but up from here.

The strengthening of the economy equals less chance for discounted rates.  If you want to refinance or purchase real estate, now might be the best time to do so.

For more information on mortgage rates click here to look at a recent article from CNNMoney.com.

When preparing to sell your home it is important to find a real estate professional that will best suit your needs.  A warm handshake and a friendly smile is all well and good but if you want to sell your home pick a broker that is experienced and knowledgeable, someone that will do the best job for you.  When selecting your real estate agent here are a few things to keep in mind:

Data.  Get a prospective Realtor to bring in a copy of what they have listed and closed.  They can present you with an MLS report that displays their inventory. In some markets, especially where secondary homes and investment properties are prevelant like Gatlinburg, email is how you’ll receive most documents and information so make sure your agent is proficient with technology.

Price.  Get an evaluation of your property.  A solid real estate professional will be able to detail what has been selling and for what price.  He will be able to evaluate your home and your location, giving you a value for your home that will help sell it not deter people from looking at it. The experienced agents at Century 21 Four Seasons can easily give you all the information you need to select the best price.

Plan.  What does your Realtor plan to do for you in terms of marketing, sales, listing, etc.  Make sure he has a plan for your house and find out what he is willing to do to get it sold for you. Each agent at our offices has a detailed market plan that they will present to you for your approval.

Real estate is often a person’s most valuable asset.  Do your legwork and choose the best broker for your home.  He or she should be a salesperson.  If they can sell themselves to you perhaps they are halfway to selling your home for you as well.

The government is putting pressure to decrease foreclosures

With unemployment figures on the rise, the number of foreclosures is expected to keep rising over the coming months and the federal government is trying to do something about it.  President Obama created legislation in February that was expected to help those facing foreclosure, yet the programs set in place are reported to have been enforced sluggishly by many of the lending institutions.  The pressure is starting this week. The Federal Government is saying “Help these people out!” to the 71 financing companies that are participating in the program.  Teams of three people are being sent  to monitor the eight largest companies, and these teams will be requested to submit reports twice a day on their progress. Another part of the problem has been incomplete paperwork on behalf of the borrowers.  Those that qualify for assistance need to complete their paperwork to move forward on getting assistance.  Under the mortgage assistance plan borrowers who qualify can get 2% rates for up to five years, quite a healthy boost for homeowners facing foreclosure.  Borrowers will be  communicated with to help them complete their part. We've seen a decrease in the number of foreclosures coming to the marketplace here in Sevier County and Gatlinburg which is creating a stabilization of pricing. If this trend continues, we have not reason to doubt it will, with foreclosures trickling on the market and not flooding it, prices may start to increase as early as Spring 2010. For more information on the government’s plan to enforce help for those facing foreclosure, click here.

Being a landlord can be easier that you think.  Many people are holding on to their real estate these days, some by choice, because they are waiting for a stronger market, and some by necessity, those that simply cannot sell their homes.  What this means is that there are many first time landlords out there, a job that can be a bit daunting, especially if you don’t live near your property.

If you are lucky being a landlord is easy and you get a monthly check with no real involvement.  Many landlords have a more difficult time however, chasing down rent, making repairs and having to constantly oversee their tenants and their properties.

Here in Sevier County, more specifically Gatlinburg & Pigeon Forge, being a landlord can be surprisingly easy. One of the many companies who manages the overnight rentals that dot the mountains in our area is Chalet Village Properties. Management companies like Chalet Village take care of everything from advertising, leasing, cleaning and general maintenance of the overnight rentals.

Another thing management companies do that makes our job selling real estate much easier is to document the rental incomes of the properties for sale. This documentation makes it much easier for a buyer to decide which rental property is the right choice for them.

Short sale & REO properties can make great investments

Short Sale and REO properties make great investments here in Gatlinburg but they are each unique and require some attention to get the deals completed.  Todays real estate market is full of bargains and whether the property is a fire sale on the owners behalf, a short sale or an REO there are plenty of properties out there which make sense for the buyer.  The complication is often getting the deal done.  Whether it is getting a contract accepted, attaining financing or following through until closing a lot of todays deals require the assistance of a real estate professional more than ever. What are the main differences between REO properties and Short Sale properties? REO properties are owned by the lending institution, typically a bank.  REO properties have been repossessed and the home owner is out of the picture.  REO properties are being sold by a broker division of the bank or by a Realtor hired by the bank.  The bank is in the drivers seat and rarely wants to make any improvements or deal with inspection items, preferring to sell a property “as-is”. A Short Sale is a pre-foreclosure sale when the home owner (borrower) is still in the picture but owes more than the house is worth  In this case the lender is involved because the lender has to agree to the sale rice and the loss that they are going to take.  There may be some room for inspections and contingencies in the short sale scenario but the bank still has the last word and to get a deal done a buyer must be willing to forgo certain issues. In either case, REO or Short Sale, a real estate professional who has experience or knowledge in distressed property can be incredibly useful.  These real estate deals are complicated and take knowledge to complete.  Contact an experienced real estate broker today to see what is going on in your local real estate market. For more information on REO and Short Sale properties check out Realty Times by clicking here.

Investing in REO/foreclosure properties may seem like the thing to do these days but just because a property is being sold at a bargain price doesn’t necessarily mean it is a bargain. The number of foreclosed properties has increased dramatically over the past year and the number of bank owned properties is not yet diminished. It is important to remember that the banks or lenders that have the property on their books want to unload it. What does this mean to you? Cash offer wins. If you need to get a loan to purchase the property then you could be waiting a few weeks to acquire financing. It's important to become pre-qualified prior to viewing homes for sale so that you may act quickly if the right one appears. If someone else has their eye on the property and walks in with cash you will be out of luck. No money, no property. The bank doesn’t care if you get the property or not, they just want the property off their hands. If you are looking to buy an REO property for an investment be aware of two factors: condition and location. Just because a property is inexpensive does not mean that it will make a good investment. Have your Century 21 Four Seasons agent provide a complete CMA prior to submitting an offer to purchase. Is it in a good location? Remember that location matters, whether you will be living in it or not. What is the condition of the house. When it comes to REO property many times you will not be allowed in for an inspection and buying sight unseen can be a real gamble. Do some research and find out what you can about the property before committing to buying it. Your Century 21 Four Seasons agent can help you select the right contractors and inspectors. Certainly buying REO property can be a good investment but it can also be a risky one. Do your homework and have the right real estate partner/agent to make your purchase a success.

There are many questions when it comes to investing in real estate today one of which is, is it a good time to invest in vacation real estate? Currently it is a buyer’s market almost anywhere in the Country, as well as many locations overseas. If you can acquire financing or have the extra cash to invest real estate has always been seen as a good investment because while it may take its dips, historically it has always rebounded. Many signs point to it being a great time to invest in vacation real estate. These signs include:

• Low interest rates

• A drop in home values

• Fewer buyers, therefore less competitive market place

• Lower property taxes due to drop in home values

• Higher inventory, therefore more homes to choose from

 

If you have been wanting to purchase or invest in a second home in Gatlinburg or Pigeon Forge there hasn’t been a more attractive time to purchase vacation real estate in quite some time.