Knoxville Tennessee Real Estate Blog

The real estate market in Knox County, as in most of the rest of the country, continues to remain far below past sales. Here’s the results for the past week’s property transfers in Knox County as recorded in the Knox County Register of Deeds office.

Knox County real estate tranfers - total units

I count a total of 149 transfers for the week, about the same as previous weeks for the year.

I continue to hear antecdotal stories from my fellow Realtors about how they think the market is picking up and how busy they’re getting but so far very few of those stories have made it onto the closed sales scoreboard and that’s pretty much all that counts.

If anyone is thinking of buying this year and using the $8,000 tax credit you should know it expires on November 30th of this year.

And with all the new rules and guidelines making mortgages harder and lengthier to process you’re typically looking at 45 days processing time.

So unless you have a new house selected and under contract by around October 15th, which is only 2 1/2 months away, you could lose out on one of the best deals for first time time (and some repeat) buyers in a long time.

Visit www.KnoxvilleHomeCenter.com and see all of the Knoxville area listings for sale and then let’s get going picking one out for you.

Please call or email me with any questions or to schedule a time to look at some great Knoxville area homes.

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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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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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One of the innovative marketing techniques my company, Realty Executives Associates, offers to Knoxville area home sellers is our exclusive 10K marketing program.

This beautiful home in northwest Knoxville is offered at $379,000 and the selling agents get an entry into the 10K drawing.

It works like this.

Once 45 10K homes have been sold and closed, Realty Executives Associates hosts a luncheon and invites the selling agents for those homes to attend. Each agent is allowed to place one business card in a bowl for each successful 10K listing sold and closed.

The cards are then drawn out like a reverse raffle and the last card to be drawn wins a $10,000.00 cash price, the 10K.

As part of my marketing plan I pay the additional fee of $250.00 to have your home designated as a 10K listing.

"If you're thinking of selling your home we need to talk. I offer many benefits and advantages that most other Realtors in Knoxville do not such as Realty Executives Associate's exclusive 10-K marketing program." Jim

This 10K program has been a powerful incentive for not only Realty Executives but Realtors from other Knoxville firms such as Coldwell Banker, Re/Max, ERA, and others to show our 10K designated listings.

Recently our 42nd 10K luncheon was held and Frances Crawford of Town and Country Realtors of East Tennessee was the lucky $10,000 winner. Do you think Frances might have been a happy camper after enjoying a delicious lunch with 44 of her fellow Realtors at Cherokee Country Club and then walking out with a check for $10,000.00?

With the 42nd 10K drawing that bought the total money given away to Knoxville area Realtors to $420,000.00!

Thinking of selling your Knoxville home in today’s market? If so you need not only aggressive pricing and a “move in” condition home, you also need every marketing tool available to promote the sale.

Pretend for moment that you’re a Knoxville area Realtor in this market. Lots of homes to choose from to show your buyers, but not all offer you a 1 in 45 change to win an additional $10,000 plus the selling commission.

Visit www.KnoxvilleHomeCenter.com for lots of great tips on how to make your home stand out from the competition.

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My oldest daughter Gretchen and her family live in a small town in west Tennessee called Adamsville.

Movie buffs may remember Adamsville and McNary County as the home and setting for the movie “Walking Tall” about legendary Tennessee sheriff Bufford Pusser.

Gretchen has 3 children, Jordan age 16, Anderson 12, and Eli age 4. Husband and father Steven Lambert is a teacher at Adamsville High School and the school’s baseball coach.

With a father professionally involved in sports, family involvement runs high. Jordan and Anderson both play basketball and 4 year old Eli has taken up officiating. Yep, at age 4 Eli is a budding basketball referee, at least in his mind.

eli lambert adamsville high school tennessee, copyright, jacksonsun.com

Gretchen bought Eli an official referee shirt and one of her friends cut it down (a lot) to fit Eli. All the local referees have taken to Eli and gave him several whistles, an official TSSAA patch, and some other referee goodies.

Eli knows not to blow his whistle while the game is going on but he does get down on the sidelines and mimic the official calls. The big referees take him back into their locker room during halftime to have a chat. They are all very impressed with his knowledge of the game and all the calls he can make.

Eli Lambert runs the sidelines during a local basketball game, copyright, jacksonsun.com

Eli has been featured twice now in area newspapers.

Knox County has some great parks but only a couple of them offer real hiking opportunities. House Mountain State Natural Area is and Seven Islands Wildlife Refuge is the other.

I’ve done the House Mountain trails several times but I had never been to Seven Islands until today. It was a beautiful, sunny February day with temperatures in the 60s so my wife Charlotte and I headed out to east Knox County to check it out.

It turned out to be very easy to find and get to; it’s only about 3 miles off Interstate 40 at the Midway Road Exit.

When we arrived the parking lot was completely full; not a single space in sight. Fortunately I spotted another couple getting into their vehicle so we go their spot when they pulled out.

With that many cars in the parking area I was sure there was a mob out there walking about. We headed uphill out of the parking lot toward what’s called the Overlook Loop. It’s a pretty good pull out of the parking lot to the top of a ridge the trail follows; I’m guessing we gained about a thousand feet in elevation in a half mile or so of trail.

Once we got to the top there wasn’t another person in sight in any direction; a rate occurrence in today’s world. Ask yourself when the last time was you’ve been completely alone without another person in sight .

Beautiful views from the top; you can see the French Broad River which one end of the park borders and the Great Smoky Mountains in the background.

The trails at Seven Islands are marvelous. Dirt and about 1 car width wide so it’s very easy for people to walk 2 abreast and carry on a conversation.

I think dead trees make interesting silhouttes to add some visual interest to a photo, not that this beautiful view needs any help from me.

In the background past the tree you can see some of the pastoral river bottom land that is also part of this park; 360 acres in all with about 6 miles of trail plus a couple of mile stretch of paved road closed to traffic.

The river bottom land used to grow hay and tobacco but recently about 280 acres have been planted in warm season native grasses to maintain the pastoral setting.

I thought this was an interesting find. Over in the woods and a pretty good ways off the trail I noticed some cedar branches lying at the base of a stand of hardwood trees and obviously out of place.

Upon closer inspection I found this big green box about the size of a large, styrofoam ice chest, cable locked to the tree and with a blue seal on it.

I didn’t mess with it because I believe it’s some sort of wildlife survey or sampling tool.

But, memo to guys hiding stuff in the woods.  Don’t camouflage your stuff with a kind of tree not growing nearby; it really makes it stand out especially in the winter.

This park has about 4 miles of river frontage along the French Broad River. Some canoests and kayakers like to put in here at the boat launch and paddle or drift to downtown Knoxville about 19 miles away.

The French Broad joins the Holston River in east Knoxville to become the Tennessee River which flows through downtown Knoxville.

On the next pretty day when you have the urge to get into the great outdoors and don’t want to make that 40 mile drive to the Smoky Mountains; head on out to Seven Islands and get a dose of Mother Nature at her best, I don’t believe you will be disappointed.

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