Gatlinburg Real Estate Updates & Community News » pigeon forge homes

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? 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.

Low Mortgage Rates, Catch Them While You Can

lheraty — Sat, 09 Jan 2010 13:56:28 +0000

Now might be the best time to lock in a low mortgage rate

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.

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.

Government Pressure Expected to Help Reduce Foreclosures

lheraty — Tue, 01 Dec 2009 02:29:22 +0000

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.

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.

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.

Short Sale & REO Properties Make Great Real Estate Investments

admin — Thu, 24 Sep 2009 15:50:56 +0000

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.