Knoxville Tennessee Real Estate Blog

If your Knoxville or Farragut Tennessee home is on the market for sale and not selling here’s some things you can do to change that and help it to sell quickly.

• Check your home’s curb appeal. Go out your front door, walk across the street, and take a hard look at the view potential buyers see when they drive by. Are your lawn and shrubs neatly trimmed? A touch of seasonal flowers visible? Garage doors down and all bikes, big wheels, and toys put away? The first thing buyers have to do to buy your house is be attracted to it. Good curb appeal sets the stage for a positive visit. You might also check any online photos, especially the first one people see.
• Check your price. What have similar homes to yours sold for in the past few months? What price range are pending sales of homes similar to yours in? Hows your market absorption rate right now? This is a very strange market we’re in all across the country and you need to know what the situation is locally; in your town, in your area, in your neighborhood. Make sure your house is priced competitively.
• Have your home professionally “staged” inside. Staging is part art form, part science. Successful staging is much more than interior decorating; it’s literally setting a stage to make your home look like a model home. Declutter and put away personal “stuff” that detract buyers from looking at the actual house. Refresh tired and outdated paint colors. ‘Lean out’ over crowded rooms and consider renting a storage locker to store excess furniture and large possessions that take up floor space.
• Instead of dropping the price, consider offering some incentives for potential buyers. Paying some or all of their closing costs is a tried and true inducement. Try and think of some unusual incentives such as paying their moving expenses. What buyer wouldn’t be attracted to the notion of not having to lift a finger on moving in day but rather directing free movers where to locate their heavy furniture.
• Offer an incentive to local Realtors. Money works well. . Adding 1% to the fee a buyer’s agent can earn is a small portion of your sales price but it can attract more agents to push your house to their buyers. Let’s face it, money is a powerful motivator.

None, or even all, of these things are guaranteed to make your house sell but I think most would agree that the more you tilt the odds in your favor the better your chances of a sale become.

Visit Knoxville Home Center for 40 free tips to make your home sell faster and for more money. You can also request a free copy of my 52 page eBook titled “450 Ideas To Help Your Home Sell FASTER!”. Just click the “Free Stuff” link for this and more selling ideas.

The Knoxville & Farragut Tennessee sales figures for May of 2008 are now available to view here.

Days on the market (time from listing to contract) are almost unchanged from this past April; 101 days in May versus 100 days in April of 2008.

The median price of a 3 bedroom Knoxville area home was $184,700 this past May versus $163,600 in April 2008. The median is the middle price; half of all sales were above the median and half were below. With the big rise that means we sold more expensive houses in May than we did in April.

When you compare May of 2008 against May of 2007 there are some differences there as well.

• May 2007 the median price of a 3 bedroom home was $171,900
• May 2008 that median price was $184,700, a $12,800 increase.
• May 2007 days on market was 88 days
• May 2008 was 101 days so it’s taking an average of 13 days longer to sell a house.
• In May of 2007 we sold a total of 1,666 single family homes and condos in all price ranges.
• In May of 2008 we sold 1,213 so that’s 453 fewer units.

All in all, Knox County sales are still good, interest rates are still around the bottom of the 6% range but I tend to agree with the experts and predict they will start drifting upwards in the next few months.

If you’re in the market for a house or condo, www.KnoxvilleHomeCenter.com is a great place to start looking.

Please feel free to call or email me with any real estate questions you may have.

The Knoxville Realtors Association released their April 2008 home sales data yesterday.

April’s figures show a total of 1,144 closed sales in the Knoxville market versus 1,416 sales in April of 2007. That’s about a 20% drop in volume.

The median priced Knoxville home this past April was $149,000 vs. $152,000 for the same time period in 2007. That means we’re selling more of the less expensive homes.

The average sale price in April of 2007 was $163,600 and $152,000 this April which goes along with the drop in the median sale price.

It’s important to understand that both the drop in volume, median sale price, and average sale price DOES NOT translate to a drop in Knoxville home values although some of my buyers are getting some pretty awesome buys. For instance we just closed last week on a sale where the house was listed for $164,900, we bought it for $156,000 and it appraised for $165,000! Not surprisingly my buyer clients were very happy campers when they got that news.

Higher end homes continue to languish on the market. There are currently 1,137 single family homes priced at $500,000 and above in the Knoxville area market. 24 homes over $500,000 sold and closed this past April so there is still a very, very plentiful supply in that price range. At that absorption rate that translates into almost a 4 year supply of homes priced over $500,000!
On the average sale price end (160-165,000) however there are only 183 homes currently available. There were 78 closed sales this past April so that’s only a little over a 2 month supply. The average time on the market has dropped 4 days to an average time now of 100 days to sale.
Sales seem to still be pretty brisk in the Knoxville area which I believe is being driven by the time of year combined with the very low interest rates still available (5.75-6% fixed, 30 year).

Knoxville’s average days on the market (time to sell a house) is down 5 days, from 105 days in January of this year to 100 days this just past April.

www.KnoxvilleHomeCenter.com is still the place to visit to see all of Knoxville’s homes, condos, and land for sale. Please call to see any homes you find there or with any real estate questions.

I know foreclosure is an unpleasant topic but since Tennessee is number 11 nationwide in numbers of foreclosures, it certainly seems like a subject that merits some discussion.

If anyone is behind on their mortgage payments or have maybe received a foreclosure notice, you still have some legal options to solve, prolong, or even fix your financial difficulties.

Here are some ideas to consider:

1. Restructure your loan. With this option you try to negotiate with your lender to come up with a payment plan to get you caught up and possibly add any late fees and charges to your current loan to soften that burden for now.
2. Reinstatement. This is simply catching up all your late payments plus associated fees and charges. Since most people facing foreclosure in the first place are having financial problems this is not an option for most.
3. Refinance your existing loan. If you have a large amount of equity in your home it might be worthwhile to talk with your lender about refinancing your existing loan to get you caught up and hopefully make your payment a bit more bearable.
4. Sell your home. If your home is in salable condition, maybe selling now to avoid foreclosure and moving to something a bit more affordable until things get better could be a consideration.
5. Do a short sale. In a short sale your lender agrees to take less than the principal amount of your mortgage if you sell your house. Not surprisingly most lenders are not too excited about this option but since it costs them so much to foreclosure and they usually sell the homes at a loss, a sort sale would be something to run by them.
6. Give them the deed in lieu of foreclosure. This is actually a “friendly foreclosure” if there is such a thing. You simply sign the house over to the lender and give them the keys. The effect on your credit is the same a a bankruptcy but it could save you from bankruptcy which should always be the final option.
7. Bankruptcy. This is the most extreme solution and should only be undertaken with good legal guidance and under dire circumstances. This will not stop a foreclosure but merely slow it down for a few months. Trying to negotiate a short sale would be a better option than both this and giving a deed in lieu of foreclosure.

If you’re A Knoxville, Farragut, or Knox County resident and are having any difficulties making your mortgage payments or have maybe even received a notice of foreclosure I would be happy to sit down with you and go over all your options. No cost, no obligation.

If you’re selling or getting ready to sell your Knoxville area or Farragut home you probably need to “lighten up” the amount of stuff inside.

Living in a house for a number of years, one tends to accumulate lots of stuff. Usually we take far more in than we take out.

Leaning out your closets and garages as well as the rest of the house creates a more spacious appearance and makes it appear larger to your prospective buyers.

Here are a few simple suggestions that can create more space in your Knoxville home and make it more appealing to prospective buyers.

• Box up and pack anything you won’t be needing for the next 3 months. This is also a great time to get rid of things you rarely or never use anymore. Buyers understand stacks of boxes setting around, after all you’re moving. However they do not understand or like closets stuffed full and overflowing as well as garages that will not hold cars.
• If you have items you haven’t used in over a year consider selling them or giving them away. Selling your house is a great time for a garage sale. You also should consider looking into charitable donations for items you give to non-profits such as your church or local Goodwill type organizations.
• Consider renting a storage unit, either a PODS type that sets in your driveway until your move or a rental storage unit off your property.
• A side benefit to getting rid of ’stuff’ is that moving companies charge by weight and distance. If you have less stuff your move will weigh less and cost you less.

Find more great home selling and buying tips at www.KnoxvilleHomeCenter.com

Get a FREE copy of my new book, “450 Ideas to Help Your Home Sell FASTER!”

Dress your home for success and it will sell faster and for more money. This free book has 50 informative pages full of ideas, suggestions, and checklists to help you make sure your home is in showroom condition to appeal to the most buyers and cause them to BUY YOUR HOME instead of your competition.

Just send an email to: Ideas@JimLee.com and I’ll get your free copy of this valuable book to you right away.

And, believe it or not, the spring home selling season will be here before you know it.

Here are four things you absolutely have to do in order to ensure your Knoxville & Farragut home sells quickly for the best possible price.

1. Curb appeal is always important but with so many other homes on the market in Knoxville this year you have to have “BIG” curb appeal that will make passers by not only notice your home but want to come inside for a better look. Make sure your lawn is trimmed as well as possible, all bushes and shrubs standing tall with dead ones replaced, lawn debris cleared up, front entry clean and inviting with a freshly painted front door and new hardware including doorknobs, pulls, kickplates, and porch lights.

Nice clean look, fresh mulch, and a very appealing home.

2. FIX IT! That’s right folks, if it’s broken or worn you have to fix it. The majority of buyers not only don’t like “fix up” projects, they take unrealistic sums of money off their offers to cover unexpected problems they imagine they could run into fixing things.

3. Disclose. You must by Tennessee state law disclose any adverse facts about the home you’re selling. I know it sounds counter productive but it’s better to disclose issues up front than explain to a judge why you did not. It’s not just issues with your house but things like neighborhood noise problems, i.e. nearby airport or railroad, etc. Also be sure you disclose the good stuff to potential buyers. Write a short note to buyers about why you bought the house, it’s close to schools, close to a park, great views, etc. People who look at your house are usually people like you and are looking for the same things that attracted you; make sure they know about them.

4. PRICE IT RIGHT! This is most important. When you put your house on the market, you’re competing with lots of similar houses that have very similiar space and amenities so you have to be competative on price. That doesn’t mean ‘give away’ or fire sale pricing but a price that is realistic and cause buyers to become interested in your house over others.

If you’re selling or thinking of selling your Knoxville or Farragut home this spring please do yourself a huge favor and make certain you do the above 4 things before your house hits the market.

You’ll be rewarded by a faster sale for more money than if you try to sell “as is”.

Visit This Knoxville real estate resouce to see what your competition looks like.

Call or email me for more home selling tips or to schedule a ‘no obligation’ visit by me to point out some things you can do to make your Knoxville or Farragut home sell faster and put more money in your pocket.

These 9 “deadly sins” are the most common I see almost everyday in the Knoxville & Farragut Tennessee real estate market. If you truly want your house to sell in a reasonable amount of time and for a good price, DO NOT commit any of these 9 deadly sins.

1. First, and probably worst, is overpricing. I hear sellers and their agents all the time saying things like; “we’re just trying a higher price for a while.” and “make us an offer, we’re negotiable.” The sad fact of the matter is that overpricing not only drives away buyers, it often drives then to more reasonably priced Knoxville sellers who are also negotiable. Here’s a perfect case study.
2. Not listening to your Realtor. Selling houses is what we do for a living and most of us are pretty good at it. You need to listen to your Realtor if they are suggesting painting or improving something. Here are 40 tips to “Dress your Knoxville house for success” and help it sell faster.
3. Micromanage the marketing. Just because you had a Tennessee real estate license 20 years ago or sold Amway doesn’t qualify you to market real estate in today’s very competitive market. Here’s a valuable hint; lots of open houses wastes a lot of everyone’s time. The only people that come are noisy neighbors and potential crooks who want to check out what you have they might want.
4. Not “staging” your home to sell. Selling Knoxville area homes these days is as much about theater and presentation as it is about location and price. Statistics show that professionally staged homes sell for a 6.9% higher price and in much less time than non-staged homes.
5. Failing the “smell” test. That old saying about “you can’t see the forest for the trees” really applies here. Objectionable odors you don’t notice such as pet smells, cooking odors, tobacco smoke, and others are a huge turnoff for buyers. Get an “outside nose” to give your house the “smell test” and tell you honestly what it smells like.
6. Controlling your pets. Sure your love your “Fluffy” or little “Snookums” but not all buyers appreciate animals of any sort in the homes they’re looking to buy. The very best way to handle this is to send your pets on vacation with a friend or vet while your house is on the market. Second best solution is to keep them caged or penned up while the house is being shown. This also goes along with the smell test, number 5 above.
7. Ignore feedback from potential buyers. Sure, not every buyer is going to like everything about your house. But if 3 different buyers say they love your house but hate the red walls on the dining room that’s a good sign it’s time to get out the paintbrushes or call a professional to fix the issue.
8. Talking to potential buyers viewing your home. The best place for you to be when buyers are touring your home is someplace else. Go shopping, go for a drive but please go away. Buyers feel less inhibited about looking and asking questions if the homeowner is not following them around and hovering. Additionally lots of potential buyers won’t raise objections if the homeowner is nearby. Your Realtor needs to hear what buyers are saying and they talk much more freely if you’re not there.
9. Not putting your house in tip top shape to sell. This probably should have been number 1 or 2 but all the sins are important. Paint up, fix up, throw out, and do everything you can to put your home in showroom condition. You noticed how car dealer polish up and shine their used cars to make them more appealing and saleable; this technique works for Knoxville & Farragut houses as well.

There you have it, the 9 deadly sins I see Knoxville & Farragut area sellers commit on almost a daily basis. If you have a house to sell in the Knoxville or Farragut Tennessee area please do yourself and your sale a favor and don’t commit any of these “homeselling sins”.

For more tips on how to get your Knoxville area home sold quickly for a good price visit KnoxvilleMLS.com, there a wealth of home selling knowledge there for you.

Happy home selling.

Now through January 1st: Comcast Christmas at Chilhowee Park is the signature event of Christmas in the City.Chilhowee Park in East Knoxville is transformed into a Christmas wonderland with:

•  a forest of lighted Christmas trees floating on the lake
• Free pictures with Santa and cookie decorating with Mrs. Claus
• Carolers, carriage rides
• Marshmallow roasting, peppermint ice cream, egg nog, and hot chocolate
• and a holiday light display from 5 PM til 10 PM

Ice Skating on the artifical rink on Market Square Mall downtown. Admission and skate rentals are $7 for adults, $5 for children.

And lots of other, fun for all ages, Christmas related events. Read all about them at the City of Knoxville Christmas website.

And of course if you need to buy a new home to set up that Christmas tree; www.KnoxvilleMLS.com is always open.

One question that always comes up when I’m talking to potential sellers about marketing their house is; “Do you see anything we should do to the house?”

These sellers are usually referring to paint, carpet, landscaping, and other relatively minor fix up items.

The short answer to all these questions is: “Yes, you should, and as much as you can.”

A couple of years ago when the Knoxville area market was hot you could count on selling fairly quickly and often without doing very much if your house was in reasonably good condition to start with.

Not so in today’s Knoxville real estate market, you absolutely need to “Dress your home for success” on the sales market.

While Knoxville area homes are still selling well, there are lots more of them on the market, the time to sell has increased to 99 days as of October 2007, and buyers are taking longer to make a decision on which one to offer on.

No surprise there, buyers know with the current supply of homes, that the pressure to buy today is not as strong as it was in a hotter seller’s market.

With buyers more willing to wait for what they consider a deal, that means that sellers need to work harder and spend some time and money to make sure their house stands out from the crowd.

A surprising amount of things you can do to make sure your house shines like a new quarter can be done with very little or even no money. Here’s a short list from my website, http://www.knoxvillemls.com/selling.htm

“1. Be sure your lawn and shrubbery is kept trimmed at all times. Consider
removing overgrown trees and shrubs that  hide the house from the street.2. Keep the garage doors down at all times.
18. Wash all your windows and make sure window treatments are clean and in
good repair. Keep the window coverings open whenever possible to let in
more light.19. With a good degreaser, wipe down everything in the kitchen so it feels
clean to the touch. Clean your stove and oven; replace stove eye pans if needed.”

Visit www.KnoxvilleMLS.com to see the rest of the list of 40 free or inexpensive things to do to make your house sell faster and for more money.

You can also get a no cost, no obligation estimate of what your home could sell for at www.PropertyPricer.com

Here’s an advance tip. None of the 7 reasons your Knoxville home will not sell have anything to do with mortgages, the sub-prime market, or the false real estate crunch CNN keeps insisting we’re all in. Back in the early 1980s mortgage interest rates were in the 18-20% range; buyers bought lots of house then too.

Reason number 1.  Your home is simply priced too high. After nearly 39 years in the real estate business this is the number 1 reason I see that keeps homes for selling. When you go to sell your home it is worth what a buyer is willing to pay for it, period, end of story. Find our what your Knoxville, Tennessee home would most likely sell for here.

Homes that are priced correctly, in tip top shape, and show to best advantage always sell.

Reason number 2.  Your home has not been updated or is in poor condition. Avocado green and Harvest gold bathroom fixtures date a house as around 30-40 years old in the Knoxville area market. You need to update or reduce the price to compensate for needed updating. Poor condition? Reduce the price or do some fix up.

This is an actual living room of a Knoxville area home for sale. Clutter, pool table in the living room, and too much ’stuff’.

Reason number 3.  It is not being marketed effectively. Studies show that over 85% of today’s homebuyers look on the Internet to find a new home. If you’re not on the net or can’t be found online, your Knoxville home is invisible to these buyers.

A fresh, neutral paint job makes this living room appeal to all.

Reason number 4.  You’re in a poor location, i.e. near an interstate or busy road that generates excess noise and/or traffic. You can’t move the house so the only way to correct this problem is with pricing.

Reason number 5.  There is lots of competition in your price range. A new subdivision just down the road with similar homes to yours but brand new, a plant closing that has put lots of homes in your price range on the market, and other reasons can cause your home to linger on the market or not sell. A lowered price is the best antidote.

Unmade beds and general clutter create doubts in a buyer’s mind as to how well you’ve taken care of your house.

Reason number 6.  You may have a bad listing agent. Yep, they’re out there and they make the rest of us look bad. Before you sign a lengthy listing agreement ask about how you can cancel if you’re unhappy or not getting the results you want. Make sure your listing agent has the tools and skills to get your Knoxville home sold quickly and for top dollar

Even older homes can be made to appeal to most buyers with neutral decor, fresh paint, and some cleaning up.

Reason number 7.  Your home is not “staged” to show to its best advantage to potential buyers. Clutter, personal collections, too much ’stuff’ and other factors, both in and outside a home can cause potential buyers to not see why they should buy your Knoxville area home. Look at these “before & after” photos to see what I mean.

Visit my website for lots of tips on how to prepare your home to show to it’s best advantage. You will make more money on the sale and sell faster if your home is priced right and in showroom condition.