Knoxville Tennessee Real Estate Blog

There is one very bright spot in this past week’s real estate transactions. A trio of very savvy local real estate developers bought a 355 acre tract of prime development property at auction with a reported 5 miles of Fort Loudon Lake frontage for the impressive price of 26.5 million dollars.

Known as the “Ingram Farm”,  it’s located just west of Riversound subdivision and about 3 miles from the Northshore Exit off Interstate 140, the Knoxville airport connector.

The old Ingram farm has a reputed 5 miles of Fort Loudon Lake frontage. Riversound S/D is in the upper right along Northshore Drive. The location and lake frontage should make this development a winner.

Unfortunately that was the lone bright spot as real estate sales continue to limp along in Knoxville as well as most of the rest of the country. The vast majority of local sales are in the lower price ranges and are being driven by the lowest interest rates in history combined with a new, $8,000 tax credit for most homebuyers that meet income guidelines and have not owned a home in the past 3 years.

Here’s the rest of the Knoxville and Knox County real estate picture for the past week.

Knox County real estate transfers

You’ll notice for the past week there were no sales over $1,000,000 (the Ingram Farm sale hasn’t closed yet), and no sale from the $500,000 to $1,000,000 range, and the majority of the rest were in the $100 to $300,000 range.

That brings the past week’s total sales to 142 which is down about 40 from the previous week.

If you’re in the market to buy there’s never been a better time and there’s never been a better place to look than www.KnoxvilleHomeCenter.com where you can see all of the Knoxville area Realtor listings with no registration required and get lots of buying and selling tips.

1st quarter 2009 area sales compared to previous years

This news is pretty ugly for the Knoxville area real estate market. This graph, comparing 1st quarter sales from 2002 until present looks like a skyrocket that reached it’s highest point in 2006 and is now plummeting back to earth.

From 2,739 in 2008 to 1,890 in 2009 is a 31% drop in sales volume in just one year and a 50.16% drop from the peak in 2006 !

For Knoxville area home sellers this is not good news; low volume indicates a lack of buyers and falling prices.

The chart below shows the average and median sale prices for a 3 bedroom home in the Knoxville area for the same time periods

This is the average (in red) and median (green) sales prices for 3 bedrooms homes in the greater Knoxville area.

So what’s the secret or what does it take to sell a house in a market like this?

I believe there are several things it takes.

1. Number one on my list would be a very aggressive list price. I’m seeing homes on the market now that are not selling for what the owners paid for them as long as 3 years ago. If you’re a seller you’re competing with both a lot of other houses and the continuing stream of bad economic news that your potential buyers are bombarded with day after day. “Layoffs, hundreds lost jobs, downturn, worst economy in (take you choice of numbers), recession, etc.” It’s no wonder buyers are scared to buy if they can’t have confidence they’re have a job next week or next month.
2. I also believe it’s equally important that you do whatever it takes to put your house in showroom condition. You have probably seen what auto dealers do with late model trade in cars. If you haven’t, they shampoo or replace the carpets in the car including the trunk, wax and buff the exterior until it shines, steam clean the engine, shine up the tires, and generally make it as appealing as possible and as close to new looking as they can get it. You have to do the same with your house. Stop thinking about it as the place you’ve had Christmas with your family, watched your kids take their first steps, and other emotional ties and start thinking of it as a piece of merchandise you’re trying to sell.
3. Offer some buyer incentives, especially important in the lower price ranges. With all the news about the mortgage market lenders are more strict than ever about buyer requirements. Whereas in the past they used to use a magnifying glass on buyers they’re now using microscopes and requiring more documentation. I recall a transaction I had that closed last week and I had to prove I was not the Jim Lee on the FHA mortgage fraud watch list and submit an affidavit that I had never lived in a certain city in Illinois. And I was not even a buyer or seller in this transaction; just the buyer’s agent.
4. Be prepared to accept an offer from a qualified buyer that may be below your list price by a large discount if you want to sell. Buyers read the news too and realize they are in the driver’s seat. Having your house in showroom condition, aggressively priced, and perhaps offering to throw in 3-4% of the sales price to help a buyer get in very often makes the difference between a buyer and a ‘just looking’ prospect.
5. Exposure to as many potential buyers as possible. Common sense says that the more people that are aware something is for sale and want that thing, the more it becomes worth to them. Right now over 80% of all buyers are looking on the Internet for houses for sale. If you’re house doesn’t have a good presence with lots of photos AND MOST IMPORTANT, isn’t easily findable by potential buyers, you’re not going to be able to create that demand that brings the best possible price no matter what the economic conditions and how much competition you may have.

Visit www.KnoxvilleHomeCenter to see what a great internet presence looks like in the “Featured Homes” section and read the seller tips section under “Selling” to see how to make your house stand out from the rest.

I’m almost always available to a complimentary consultation to show you how to get your house sold quickly for the best price.

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My wife and I are members of the Beaver Creek Cumberland Presbyterian Church (BCCPC) in Powell, Tennessee where I am currently serving a term as a Session Member (basically the Session is the Board of Directors of our church).

Our church, like other Cumberland Presbyterian churches, participates in sending our youth to a retreat at the church owned Camp Chilhowee, a 106 acre retreat in the foothills of the Great Smoky Mountains. There are several cabins, an amphitheater, mess hall, swimming pool, and lots of beautiful grounds to hike, play, worship, and enjoy.

We feel it’s important to provide this setting away from the distractions of modern life to allow the youth to bond together, to reflect, and to find their own, closer relationship to God.

I’m not sure when the buildings at Camp Chilhowee were built, but after many years of ‘enjoyment’ by rambunctious youth and the passage of time the individual cabins were getting pretty used up.

So in 2007 we formed a committee to rebuild one of Camp Chilhowee’s cabins. Most of these cabins accommodate 16 campers in bunk beds in a dormitory style and have one bathroom.

I’m happy to say the project is now completed and on Sunday afternoon, April 19th many church members made the trek to Camp Chilhowee to dedicate our new cabin.

Our church's contribution to Camp Chilhowee, a brand new cabin that will accomodate 16 campers.

BCCPC members gather on the new cabin's porch for the dedication ceremony.

8 bunk beds and 2 full bathrooms will serve new campers.

Another CP church is undertaking to build a new cabin in front of ours and have completed demo of the old cabin and poured the footers.

Prior to the dedication church members gather at the camp's outdoor amphitheater for a brief worship service.

BCCPC Senior Pastor Reverend Thomas Sweet leads the church in song.

athletic field at Camp Chilhowee. Although it was a rainy, foggy afternoon, spirits were bright and warm.

The Oak Ridge Farmer’s Market opened this morning at 8:00 am across from Jackson Square in Oak Ridge. My wife is a regular during the season so we were first in line this morning when the buying began promptly at 8:00. Nothing is allowed to be sold before then for some reason.

grand opening day at the Oak Ridge TN Farmer's Market.

The Oak Ridge market is open Saturdays at 8:00 am and Wednesday afternoons at 3:30 until they sell out which happens typically in a couple of hours.

Tuesdays and Fridays most of the same farmers move over to Knoxville for one or both of the Knoxville Farmer’s Market in the parking lot of the Laurel Avenue Church of Christ on Kingston Pike across from the main entrance to Sequoyah Hills.

This is Shirley, she was Tennessee Beekeeper of the year recently.

Shirley is one of my wife’s favorites; she always has a smile and a kind word not to mention some pretty awesome honey from her beehives. I love the Sourwood honey when it gets harvested in late spring.

In the early season there are lots of annuals, perennials, and herbs for sale.

Sheep's milk cheese is not only delicious but it's much easier to digest than cow milk cheeses.

Even though it’s early, local farms are producing green onions, spinach, lettuce, green garlic, red and white onions, turnips, radishes and asparagus along with potted herbs and flowers of all sorts.

This smiling farmer had lots of flowers for sale.

We also buy free range eggs here along with grass-fed meats including smoked sausage, bacon, free-range turkey and chicken. Unfortinately the baked goods lady wasn’t here today but she has delicious breads, muffins, and other home baked goodies.

And across the street in the Jackson Square parking lot there was some toe tapping music from this trio.

Musicians entertain the Farmer's Market crowd in the early morning hours.

Here's Shirley the beekeeper loading what looks like some fresh green onions into a customer's bag.

Now that the market is open we’ll be making the Saturday morning trek over to Oak Ridge to buy some delicious fresh produce, honey, and other locally produced goods. One of the requirements for selling at this farmer’s market is that you actually have to be the farmer that produced it in order to sell it. The farmer’s market association makes the rounds to ensure that only local farmers that produce what they sell are allowed to participate.

If you’re around Knoxvill or Oak Ridge during farmer’s market hours stop on by and pick up a few things to take home. Once you do you’ll be hooked on the quality and freshness of the goods plus you’re supporting local farmers; a good deal for all.

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Should I buy a home in Knoxville, Tennessee now? A question lots of potential buyers are asking themselves now.

So what’s the answer? The answer depends a lot on you and the reasons you’re thinking of buying.

Generally if you plan to live in any home you buy in Knoxville for at least the next 3 years now might be a good time for you to buy for the following three reasons:

1. You may be eligible for a new federal tax credit of up to $8,000 that is only available this year for home purchased and closed before December 1st. After that this credit goes away. You can also collect that credit this year even if you’ve already filed your 2008 return by filing an amended return (form 1040X) or you can wait until next year and collect it on your 2009 return.
   Here’s how that $8,000 tax credit works. First of all it’s a credit and not a deduction like mortgage interest is.

   A tax credit results in a full $8,000 deduction from your taxable income whereas an $8,000 tax deduction would only result in a percentage savings based on what tax bracket you happen to fall into. For example if you’re in the 25% bracket you would only be able to claim 25% of $8,000 or $2,000. And this tax credit is fully refundable which means if your tax liability is less than $8,000 the IRS will refund to you the difference in cash.

   Here’s some information from the IRS website that explains more.

2. Interest rates are at their lowest point ever; you should be able to get a fixed interest rate under 5%. Right now in Knoxville $729 dollars is the average rent for a 2 bedroom apartment. at 4.5% interest, $729 is the principal and interest payment on a $143,800 home mortgage.

1 Bedroom 2 Bedrooms Rental rates for 1 & 2 bedroom Apartments in Knoxville, Tennessee

If you buy a Knox County home for, let’s say $150,000 at 4.75% interest and pay the minimum 3 1/2% down that FHA financing requires, your principal interest payment on your $144,750 loan will be $755.08. If rates were 7% that payment would jump to $963.03 and at 9% be $1,164.69. Most Knoxville area renters now are paying at least $750 or more in monthly rent so why not be working towards owning your own home plus getting $8,000 from the IRS to help you buy it.

3.  There is a huge selection of homes for sale and sellers are motivated to either discount their price, help with your closing costs or in some cases do both. I’ve had buyer clients get some great deals this year and in fact have a closing today where a seller is paying $6,000 towards my buyer’s closing costs. Had a sale last month and a very motivated seller not only cut the sale price $7,000 and paid another $7,000 towards my buyer’s closing costs, they also threw in the very nice living room furniture. Today in Knox County alone there are 2,710 single family homes priced between $50,000 to a maximum of $300,000 and 982 condos that meet the same criteria. That’s over 3600 choices for you in those price ranges and all locations. That’s also a bunch of sellers that want to sell.

KnoxvilleHomeCenter.com is a great source that has all the Realtor listings in the greater Knoxville and surrounding areas.

Here’s just a few of the great buys you can get right now in the Knox County and Knoxville areas.

Affordable Farragut one level with large yard for only $149,900.

East Knox County home is brand spanking new and only $189,900

One of the nicest and most convenient areas of Farragut and only $239,900

Search all of Knoxville’s Realtor listing at KnoxvilleHomeCenter.com and let’s pick you out one soon.

A Happy Easter to all. This Easter Sunday is a bright sunshiny day with clear blue skies overhead although it’s still a bit chilly at 52 degrees outside.

This week’s property transfers from the Knox County Registrar of Deeds office brings the biggest numbers of the year with a total of 187 pieces of real estate finding a new owner.

As has been the trend all this year, most of the activity is in the low to lower middle price ranges, that is from $100,000 to $300,000. 22.8% of last week’s total were in the $100,000 to $150,000 range, 19.57% in the $200-300,000 range, and 14,67% from $150,000 to $200,000. The $50,000 to $100,000 range also had 16.3% of the total transfers.

Knox County Registrar of Deeds Property Transfers

Here’s another graph arranged by total units in each price range.

Total units sold arranged by price points

In all price ranges in Knox County the Knoxville Area Association of Realtor’s (KAAR) MLS currently has 672 listings in “Pending” status which means the seller has accepted an offer but the transaction has not yet closed.

Luckily for anyone still looking for a new home KAAR’s Realtors still have 3,633 active listings to choose from in all areas of Knox County and all price ranges from a staggering $4,375,000 price tag to a much more modest home offered at $9,900.

www.KnoxvilleHomeCenter.com is a great place to get a look at al the wonderful homes for sale.

First time buyers and those who have not owned a home in the past 3 years can likely qualify for the new, federal tax credit of up to $8,000 or 10% of the purchase price, whichever is less, to help you buy a home now. This credit must be used before December 1st of 2009 or it goes away.

This Fountain City home complete with rocking chair front porch is only $107,900

Additionally many part of Knox County qualify for home loans through the US Department of Agriculture (USDA). The USDA provides up to 100% financing to encourage homebuyers in the more rural areas to purchase a home.

This adorable Cape Cod is located in Halls and yours for only $129,900.

Also if you’re in the reserves, national guard, or are a veteran of any military service (Army, Navy, etc.) you probably would qualify for a Veteran’s Administration (VA) loan. You can get 100% financing with these and most motivated home sellers will pay some or all of your closing costs to entice you to buy their house.

Impressive west Knoxville home. Asking price $289,900

Coupled with all this, mortgage interest rates are at their lowest levels in history! That’s right, lower than Mom & Dad paid, lower than Grandpa & Grandma paid, so it’s a rare opportunity to own a home.

Family friendly home with great neighborhood, $289,000.

Give me a call or email with any questions and let’s get going finding you a new home.

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If you have ever had any aspirations to own your own home, NOW is the time. Economic factors have all came together to create the proverbial “perfect storm” in the home buying market.

1. First, the nation’s financial crisis has driven mortgage interest rates to their lowest levels ever; currently you get fixed rates below 5% all over Knoxville.
2. A glut of houses has increased inventories of both new and resale homes providing a huge selection to choose from. Currently just in Knox County there are almost 2,000 homes for sale priced under $200,000
3. The federal government, in an effort to stimulate the economy is providing up to $8,000 as a fully refundable tax credit to encourage you to buy a home.
4. The State of Tennessee‘s “Tennessee Housing Development Authority” (THDA for short) has a no interest loan program to give you up front to use for a down payment, up to 3 1/2% of the purchase price of your new home which coincidentally happens to be the minimum down payment required for FHA (Federal Housing Authority) financing. So you can borrow your 3 1/2 % down payment at 0% interest and repay it from your $8,000 tax credit.
5. Because of the number of houses for sale I’m usually able to negotiate with a seller to pay most or all of your closing costs to get you into a new home with no cash out of your pocket.

This informative local news story tells how the Knoxville area housing market is starting to heat up.

Here’s a few examples of what is on the market today. And like the story above says, they’re starting to move so now would be a great time to get in the home buying game or at least give me a call to find out what you can do.

This beautiful, 3 bedroom, 2 bath, 2 car garage home in north Knoxville is currently listed at $159,900.

And yes, you can still find houses in west Knoxville for under $200,000. Here’s just a couple

Nice looking one level home in Farragut and on the market with 3 bedrooms and two baths for only $154,900.

This west Knoxville home is 'move in' ready and offers 3 bedrooms and 2 baths for just $154,900.

This charming home, complete with red door, is located in Fountain City and can be yours for only $124,900.

So there you have it; world class interest rates, lots of credits and homes to choose from, time to get moving.

My number is (865) 693-3232, answered 24 hours a day (just not always me. ;-)) and my my email is [email protected]. Let’s get started today and have you in a new home with payments probably less than what you may be paying now for rent.

www.KnoxvilleHomeCenter.com is where you can see all of the greater Knoxville area’s homes for sale. Pick out a few and lets go look at them soon.

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