Sevierville Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Sept. 17, 2020

Investing in Secluded Mountain Cabins

Should You Invest in Secluded Mountain Cabins for Sale During a Recession?

 

Are you wondering how to turn a profit during these uncertain times? Research has shown that one of the best things to invest in right now is real estate. Rental properties can continue to provide you with a steady income, even during a recession. So, if you’re asking yourself if you should invest in secluded mountain cabins for sale, then the answer is yes! Here’s why: 

 

Great Investment for a Lower Cost

 

Now is the time to grow your investment portfolio. You can expand your wealth strategy by buying secluded mountain cabins for sale and renting them as a vacation property. During a recession, cabins on the market will have a lower cost. The demand for cabins in the Smokies will continue to remain high, so you’ll be able to charge more for rent. This will help you have a bigger return on investment if you choose to buy a cabin during a recession. 

 

The Smokies Are An Affordable Vacation Destination 

 

The great thing about the Smokies is that it is an ideal vacation destination for families. This area is way more affordable when compared to other places. That means that even during an economic downturn, families will be flocking to the area. During a recession, there aren’t a lot of things that can turn a profit, but a cabin in the Smokies certainly will. 

 

Secluded Mountain Cabins for Sale Will Grow in Value Over Time

 

Many people who invested in a property during the 2008 recession saw their properties grow in value by 30-35% on average when they sold it later on. If you invest in a rental property and go in at a lower cost, then there is a good chance your property will increase in value if you sell when the economy is growing again. This is a great way to invest your money in something that will grow in value over time. 

 

Ready to invest in secluded mountain cabins for sale in the Smokies? Now is a good time to add to your investment portfolio. Give the TN Smoky Mtn Realty team a call today at 865-280-2569 and we will help you get started! 





Sept. 2, 2020

EM - Earnest Money/Trust Money

So What is “Earnest Money,” Anyways?

 

So, you probably knew when you started this whole house-buying-process-thing that you wouldn’t be able to get out of it without putting at least SOME money in. We like to talk about no-down-payment and low-down-payment options, but the truth is you are going to have to have at least some funds on hand to get into that new-to-you-home. 

 

When you enter into a contract to buy a home, you will be required to put down what is known as “earnest money.” It’s easy to agree on a price and sign on the dotted line promising that you will buy something, but the seller wants to see you have a little skin in the game. A little bit of “good faith,” if you will. 

 

Earnest money amounts vary widely. You may only need to put down $500, or if you are paying cash you may need to put down 10% of the purchase price. Your agent will advise you here, but be prepared for at least $500. 

 

 

This money goes into what is known as an “escrow account.”  Don’t worry - you aren’t slipping it into the seller’s pocket. Your real estate agent’s firm or the title company will typically hold the funds (though other parties, such as the seller’s firm or an attorney, could hold it). The money will be held in this escrow account until the day you close on the property, at which time it is “credited” back to you at closing. 

 

A lot of people confuse earnest money with a down payment, as it is basically money you put down to hold the home. The difference - the earnest money holds the home, binds the contract, and placates the seller, while a down  payment is loan-related (i.e. if you are paying cash you won’t have a down payment but you will still have to put “down” earnest money).

 

If you were to change your mind and back out of the contract, this money would go to the seller as a remedy for your breaking the contract. As in, this would help soften the blow a bit. 

 

The caveat to that is if you have a home inspection completed (which you SHOULD) and something is discovered that causes you to need to end the contract. For example, you find that the house is sitting on a big sinkhole and will likely cave in in the next year. No one expects you to go through with that purchase - your earnest money is returned to you.

 

Confused yet? No worries! When we talk more I will answer all your questions. Call me any time!

 

June 29, 2020

2020 Real Estate Predictions

What Are Experts Saying About the Rest of 2020?

One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.
Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association
“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”
Home Sales: Lawrence Yun, Chief Economist, National Association of Realtors
“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point…Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”
“We can project that the next few months will see a slow-yet-steady improvement in new inventory…we projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame.”
Mortgage Rates: Freddie Mac
“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”
New Construction: Doug Duncan, Chief Economist, Fannie Mae
“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”
Bottom Line
The experts are optimistic about the second half of the year. If you paused your 2020 real estate plans this spring, let’s connect today to determine how you can re-engage in the process.

 

May 15, 2020

Now is the Best Time to Buy Log Cabins in Gatlinburg TN: Here's Why

Now is the Best Time to Buy Log Cabins in Gatlinburg TN: Here's Why

 

Ready to make an investment? Now is the perfect time to invest in log cabins in Gatlinburg, TN. If you have money saved up and a secure job, then you can increase your wealth by expanding your investment portfolio. Vacation rentals are great for first-time investors. They can provide a steady source of income each month. During a recession, you can get cabin rentals at a low cost and that’s just one reason why it’s the perfect time to buy:

 

Gatlinburg is a Growing Tourist Area

One of the best reasons to purchase log cabins in Gatlinburg, TN is because they are located in a booming tourist area. Each year, millions of people visit the Great Smoky Mountains National Park. They usually stay at cabins in the area during their trip to the Smokies. This makes your rental property in Gatlinburg a perfect place for tourists to stay. More and more attractions are being added to the area and that will attract more visitors. 

 

Anakeesta - Gatlinburg, TN

 

During a Recession, Vacation Properties Cost Less

When the economy is in a downturn, vacation property costs decrease. There are fewer people with the funds available to buy up property, so the prices go down. This makes it the perfect time for you to invest in log cabins. You can get the perfect property at a lower cost than what you would normally spend. However, you can still make the same profit from the cabin. Looking toward the future, the value of your property can increase over the years. So even though you purchased the log cabin at a low price, you can sell when the market is better and increase the value.

 

Negotiation Power is On Your Side 

In an economic downturn, negotiation power is on the buyer’s side. Sellers won’t be selling as many properties, so they’ll be willing to negotiate with you. You can usually get them to cover closing costs and have them throw in furnishings. Negotiation power is on your side, so don’t be afraid to use it! 

 

Are you ready to get started? The TN Smoky Mtn Realty team can help you find the perfect investment property. Take a look at these log cabins in Gatlinburg, TN, and contact us if you have any questions. 



March 27, 2020

Here’s What You Need to Know About Investing in Smoky Mountain Log Cabins

So you’ve found your dream Smoky Mountain cabin, now what? There are lots of facets to the investment process, so the TN Smoky Mtn Realty team put this guide together to help you navigate it. We know that real estate jargon can sometimes be confusing, but that’s why we’re here. Whether you’re a first-time investor, an experienced pro, or just curious how the process works, here are a few tips about investing in Smoky Mountain log cabins: 

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March 13, 2020

Everything You Need to Know About 1031 Exchange Investment Property Rules

Are you looking to exchange your investment property for another? The IRS Section 1031 has many moving parts, but, in general, it is designed to allow the swap of one investment property for another. Although most swaps are taxable as sales, if the exchange meets the requirements of 1031, you'll either have no tax or limited tax due during the process. Need some help with the ins and outs of the process? Here are some things to know about 1031 exchange investment property rules: 

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Feb. 27, 2020

Discover Why It’s Time to Sell Your Cabin Rentals in Pigeon Forge and Gatlinburg!

Are you ready to cash in on your cabin rental investment? Now is the perfect time to put your cabin on the market! This year, there has been a shortage of cabins for sale. Inventory is low, which means cabins for sale in the Smoky Mountains are in high demand. This could be your chance to get a return on your investment. Here’s how the TN Smoky Mtn Realty team can help sell your cabin rentals in Pigeon Forge and Gatlinburg

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Feb. 14, 2020

Top 4 Benefits of Buying Land for Sale in Sevierville, TN

Looking to finally invest in something? You should consider investing in vacant land. It is a hot commodity, especially in the Great Smoky Mountains. Building a wealth growing strategy is just one of the many benefits you could get from buying land for sale in Sevierville, TN

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Jan. 27, 2020

4 Ways You Can Avoid Real Estate Wire Fraud When Buying a Home

Cybercrimes in the U.S. are increasing at a rapid rate. One of the most common ways someone can steal money from you online is by committing real estate wire fraud. Hackers can steal your money by sending you fake wire instructions. Often, they’ll use a similar looking email address and logo to make it look like your real estate agent or title company. Don’t be fooled! Many people have wired these scammers money because they think it’s someone they trust. Take these steps to protect yourself and your hard-earned dollars: 

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Jan. 13, 2020

5 Reasons You Should Hire a Local Agent When Buying Smoky Mountain Homes for Sale

Who knows the real estate market in the Smokies better than a local agent? When looking at Smoky Mountain homes for sale, you’ll want to consult an expert. This is a big decision after all. When you work with a TN Smoky Mtn Realty agent, you can rest easy knowing you’re getting the best advice out there. Consulting an expert in the area is just one reason why you should hire a local agent when buying Smoky Mountain homes for sale:

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