Gatlinburg Real Estate Updates & Community News » pigeon forge cabin

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.

Selling Your Home? Choose the Right Realtor

lheraty — Thu, 07 Jan 2010 16:49:14 +0000

Take time to choose the right broker when selling your home

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.

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.

Being A Landlord Can Be Easier Than You Think

lheraty — Sat, 31 Oct 2009 15:37:24 +0000

Using the internet can make the job of being a landlord easier

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.

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.

It’s a Buyer’s Market, Especially For Luxury Real Estate

lheraty — Thu, 24 Sep 2009 19:29:59 +0000

It's a great time to invest in luxury real estate

The news is more and more positive across the Country, home prices have risen for three straight months and the number of sales have increased for four straight months. Great news? Any positive news is great after the real estate market our Nation has been weathering. However, real estate values are hardly skyrocketing and, while increasing, sales volume is hardly knocking homes off the shelf.

It is a buyers’ market, there is no doubt about it and the buyers getting the best deal are those buying luxury real estate. Luxury homes have had the biggest drops in pricing and for those with deep pockets the savings can be tremendous.

A recent article in the Wall Street Journal points out the significant drop in price among luxury real estate. Data is showing that while mainstream home prices are stabilizing, luxury real estate, homes selling for $2 million or more, are dropping their asking prices an average of 14%. The article states, “Bottom line: At the high end, it’s a good time to be shopping for that dream home.”

If you have been dreaming of luxury real estate and have the money, this could be the time to make your dream come true.
Click here to visit the our web site and view some luxury properties in the Smokies.

New Year, New Business

broadway — Tue, 06 Jan 2009 20:58:59 +0000

I have to admit that I’ve been aprehensive about 2009. It’s not as though 2008 gave me that much to look forward to in the way of business, the type of business you can count on, can budget with. 2009 is proving to be much more agreeable though. Beginning the last 3 weeks of December we started seeing marked improvements in our real estate business.

Short-sales, foreclosures and just great deals on some of our rental properties have inspired many buyers to act (along with almost comically low interest rates).

Someone once told me that ‘no one rings a bell when you reach the bottom, you only recognize it when it’s already past by at least 6 months’. I have the distinct feeling we could be hearing a bell soon and I couldn’t be happier.

Happy 2009!

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.

An Amazing Time

broadway — Wed, 15 Oct 2008 19:14:04 +0000

It’s an amazing time to be in the real estate business. I know everyone bemoans the fact that sales are down but I just can’t help but be in awe of the deals some of our investors are getting. One, who shall remain nameless, says ‘It’s like a garage sale for the wealthy.’ It may sound callous but that attitude is pervasive with many of our cash buyers right now and even though they’re getting deals they are also helping distressed sellers and our local economy.