Gatlinburg Real Estate Updates & Community News » gatlinburg cabins

Real Estate Market’s Ups & Downs Present Many Questions

lheraty — Tue, 10 Aug 2010 20:32:29 +0000

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

lheraty — Tue, 10 Aug 2010 16:59:24 +0000

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.”

The 1031 Exchange Simplified

lheraty — Tue, 10 Aug 2010 13:54:10 +0000

A 1031 Exchange can be a great way to invest in real estate and defer taxes

A 1031 Exchange is the process of buying and selling investment real estate, enabling a deferment of taxes at the same time. A 1031 exchange involves the selling of a qualified property and the buying of a qualified property yet the transactions are seen as an exchange instead of a traditional sale and purchase. What makes the 1031 exchange different, and often complicated, is that in order for properties to qualify they both need to be “Like Kind”. They need to be business or investment properties and the new property must be equal or greater than the property being exchanged in terms of debt. The process of selling and buying property during a 1031 exchange has requirements. When a property is being sold the owner has a 45 day period to identify a new property. The 45 day period cannot be extended and often more than one property is identified. The next time period is the “Exchange” time period. After the closing of the selling property the exchanger has 180 days to close on the new property. Again, according to IRS rules, the time period is firm and cannot be extended. The 1031 exchange can provide a great way for real estate investors to sell property and buy new property without having to immediately pay taxes on their capital gains. For more information on the rules of a 1031 exchange contact one of our Four Seasons agents for an attorney referral and to find your next property.

Make Your Home Eye-catching, Inexpensively

admin — Sat, 23 Jan 2010 03:07:28 +0000

There are many inexpensive ways to make your home more appealing

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.

Selling Your Home? An Inspection Can Make or Break Your Deal

broadway — Mon, 18 Jan 2010 16:21:44 +0000

Be prepared for what a home inspection might reveal when selling your home

Home inspections can often make or break a deal. If possible sellers should have one done ahead of time so repairs can be made and a home can be in its best possible condition. However, often a seller does not do a home inspection first and is caught off guard by a long list of repairs presented in the due diligence portion of the contract process. The most common home ailments that show up in the home inspection process are:

Faulty electrical wiring
Roof damage
Plumbing issues
Poor drainage
General lack of upkeep

These are issues that can add up to a potential home buyer walking away if a seller is unable to step up and make the repairs or commit the money to make the repairs. Examine these aspects of your home yourself, if you know everything is in good condition and the work that has been done to your home has been completed by professionals then you can rest easy, otherwise be prepared to make repairs in order to sell your home.

Be Careful What You Spend on Remodeling

broadway — Fri, 20 Nov 2009 22:57:47 +0000

Take a look at the cost vs. value when taking on a remodel project

Be careful what you spend these days when you are thinking about remodeling your house. Home values are down and so are the recovered costs of remodeling. In 2005, at the peak of the real estate market, approximately 87% of the cost of a remodel would be recouped in the sale of a home. Today’s real estate market is recovering approximately 64% of the remodel costs. Everybody is watching their wallets, so if you are considering a remodel think carefully. While remodel costs are down it is important to remember that home values are down too. Unless you want to stay in your home for a long time you cannot count on recovering costs of a major remodel. The most cost effective remodel items today are: Roofing, siding, windows, and doors. Similarly, redoing a basement or attic is recommended instead of adding an addition. These items are recommended because a seller will recoup a greater percentage of the cost when they sell their home. For more information on current cost versus value have one our of Four Seasons agents view your home.

Does It Really Matter if We’ve Hit Bottom?

lheraty — Thu, 29 Oct 2009 03:46:25 +0000

Whether real estate has hit bottom yet or not, there is no mistake that it is a buyer's market

The biggest question hovering around these days is, have we hit bottom? Whether this question be a general question regarding the recession or the real estate market, we have to ask does it matter? Whether we hit bottom a couple of months ago or are going to hit it a couple of months from now, we can all agree that we have had better times and better times are in our future. Whether we have hit bottom or not there is no mistake that it is a buyer’s market when it comes to real estate.

That being said, if we haven’t hit bottom then the bottom must be close. Wouldn’t it be better to buy near the bottom than miss it entirely? Across the Country there are markets that are on their way down, markets that have stabilized and markets that are on their way back up. Whether the market hit bottom a couple of months ago, is at the bottom now, or will hit the bottom in a couple of months, the top of the market is far away.

It is a buyer’s market out there. Whether you are looking for a primary residence or a second home it is a great time to invest in real estate. Property values are lower than they have been in years, interest rates are still hovering at 30 year lows and some tax incentives make buying real estate today more affordable than it has been in years. For all we know the real estate market might be more affordable today than it will be for many years to come.

To search for properties listed in the Great Smoky Mountains (and find that deal at or near the bottom of the market) click here.

The Rent to Own Scenario

admin — Thu, 15 Oct 2009 15:18:34 +0000

The rent-to-own scenario can work out for both the buyer and the seller

The real estate market has led to some creative financing techniques, one of which is a rent to own scenario. I've noticed that here in Sevier county we're seeing more retn-to-own scenarios proposed to sellers and to buyers who may have trouble getting a loan in todays' tough lender marekt. While rent-to-own has been around for a long time, today it is helping many nervous sellers get a deal done. In essence the rent-to-own scenario is seller financing. It is important to work the specifics out in a rent-to-own situation. Items that need to be addressed are:

The percentage of the rent that goes toward the down payment
Which party pays for major repairs to the home
Which party takes care of the basic upkeep of the property
What happens to the down payment money if the buyer changes his mind

A typical rent-to-own scenario takes a portion of each months rent to put toward a down payment on the home. As soon as the down payment money is collected and reached its goal then the potential buyer can qualify for a mortgage. The seller has to cover his bases so that he is not out if the buyer changes his mind while at the same time a buyer has to look out for his best interest as well. If planned accurately and followed through diligently the rent-to-own scenario can work out well for everyone.

Vacation Real Estate: Is it a Good Time to Invest?

admin — Fri, 18 Sep 2009 13:59:34 +0000

Now could be the perfect time to invest in vacation real estate

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.

Media and I Don’t Always Agree

broadway — Thu, 23 Oct 2008 18:24:31 +0000

I suppose I’m an eternal optimist. I do think the best of people more often than not. I have to admit I was really excited when one of my agents was asked to do an interview for the local ABC affiliate.

The story was supposed to be about how some absentee property owners here in the Gatlinburg and Pigeon Forge areas were taking the rental income from their overnight rental properties and using it to pay their mortgages on their primary residences (lots of them are in Florida). Thus, creating a situation where mortages on their second homes/investment properties here are going into foreclosure or short sale and creating opportunities for the savvy investor. A complicated story I suppose.

The report ended up highlighting the foreclosure/short sale portion of the story. Leaving out what I think most of the interview was about, the investor deals. I know editorial freedom is always going to be part of a news story (I’ve submitted my share of articles to the newspaper to barely recognize them when they were printed) but I had high hopes, perhaps too high, that this story would end on an uplifting note. Primarily, that our properties here have an inherent value that is not entirely determined by outside forces due to the rental income they produce.