Seller-paid points are one of the best things you can use as a seller to get your house off of the market and into someone else's hands. Your home may look amazing, but if the cost is too much for the current market to bear, you might get stuck with it on your hands for too long. Seller-paid points are one of the best ways to keep your profit in check while making the home sell quickly, so keep reading to learn more about seller-paid points, what they mean and how you can use them to your advantage. 

If you're looking to expand your investment property in Tennessee, you might be wondering if you can use a DSCR loan to do so. The answer is yes! A DSCR loan is the perfect type of loan for such a purpose.

If you're thinking about using a DSCR loan for investment properties in Tennessee, reach out to a few different lenders to compare rates and terms. 

When you apply for a DSCR loan, the lender will look at your debt-to-income ratio to determine whether or not you qualify. If you have a high debt-to-income ratio, you may still be able to qualify for a loan, but you may need to provide additional documentation. 

There are a few things to keep in mind when taking out a DSCR loan. Here are the top 5 things we think you should know about DSCR loans in Tennessee.

Real estate investing in Tennessee has plenty of perks if you’re on the hunt for your latest and greatest investment. Not only is TN a fantastic location to live in with the Great Smoky Mountain National Park, but it also has so much to offer. Accompanied by some incredible climate and cultural hubs like Memphis and Nashville, it’s also an ideal location for people of all lifestyles. 

The Smoky Mountains are a series of high, rugged peaks in the Southeastern United States, forming the border between Tennessee and North Carolina. 

Smoky Mountains National Park protects 83% of The Great Smoky Mountain Range and is part of the Appalachian Mountain range. The National Park was established on June 15, 1934. It is 5,22,000 acres and is a UNESCO World Heritage Site. 

It is a popular destination for hiking, backpacking, rock climbing, fishing, and camping. The Great Smoky Mountains National Park is one of America's most visited parks, with millions of visitors and more than 3 million acres of wilderness to explore each year.

The Smoky Mountains are also home to numerous towns — from Gatlinburg to Cherokee, North Carolina, to Pigeon Forge, Tennessee. 

Investing in short-term rentals is one of the best ways to make a great return without worrying about some of the issues that come along with long-term rentals. Short-term rentals require you to purchase and sometimes furnish the home and rent it out similar to a hotel. There are plenty of services that allow you to do this and you can make a great profit from purchasing a home at a low price and charging by the month, week, or even by the day to gain your money back.

Should You Manage Your Vacation Rental or Use a Property Management Company?

As there are more vacation sites that make it easier to market and rent vacation properties, many owners find themselves torn between managing their own vacation rental or using a property management company. 

While sites like VRBO, Airbnb, and HomeAway make it easier than ever to manage your property on your own, there are still a number of factors to consider. There are some distinct advantages and disadvantages to each option, and it really comes down to each owner’s preferences, situation, and goals. 

To help you make a decision about your rental property, here are a few pros and cons to consider. 

Working with a Property Management Company 

Using a property management company can be a good choice for owners that don’t live near their rental or that don’t have a flexible schedule. The key benefits to working with a property management company are that they:

• Provide quick service for guests needing help or maintenance 

• Offer extensive marketing and promotion of your rental property 

• Reduce risks for owners through well-written and tested rental agreements, security deposits, and damage policies. 

As you might imagine, one of the biggest disadvantages of working with a property management company is the expense. However, for owners with limited time or that want to take a hands-off approach, a property management company can be ideal. 

Managing a Vacation Rental on Your Own

In contrast, managing a property on your own makes a vacation rental a much more hands-on investment. Here are a few key benefits of going this route: 

• More control over how the property is maintained

• More control over when the property is rented and the guests that stay in the property

• An opportunity to build a rapport with guests that often leads to return guests and improved reviews

• Fewer monthly expenses, leading to increased annual revenue

However, the key disadvantage of managing your vacation property is the amount of time it takes. You’ll have to deal with maintenance, cleaning, paperwork, reservations, and marketing. Additionally, you serve as the point-of-contact for guests at check-in and check-out as well as being available for any needs they have during their stay. 

While there are pros and cons to each route, the good news is that owners have options and can decide what’s best for them. 

For questions about vacation rentals or for help finding the perfect Smoky Mountain Vacation home, contact our team of local real estate experts. 

Looking to Invest in Tennessee Cabins for Sale? Here’s How a Recession Factors In

When you’re coming up with a wealth building strategy, you’re going to look at the most profitable market to invest in. During a recession, it can be hard to pinpoint which market is best. However, most investors will tell you from experience that real estate is one of the most profitable markets during an economic downturn. Investing in rental property just might be the perfect opportunity for you. Want to start looking at Tennessee cabins for sale? Here’s how a recession factors into your investment decision: 

Choose a Dependable Real Estate Agent in the Smokies

One of the best things you can do when looking to invest in real estate is consult an expert of the area. The TN Smoky Mtn Realty team have experience in giving investors advice during an economic downturn. We’ve helped many clients navigate purchasing rental property when the market was in a slump. If you have an expert to guide you through investing in Tennessee cabins for sale, then you’ll be more likely to get the return on investment you’re looking for. 

Rental Property is a Safer Bet Than Stocks and Bonds

Stocks and bonds are a more volatile thing to invest in than rental property. They can make wide swings that directly affect how much return you’re going to get on your investment. Rental property is definitely a safer bet because you have the ability to make a steady income each month. Real estate isn’t necessarily directly impacted by stock market movements, so you won’t have to worry about seeing profits one day and losing money the next day. 

Tennessee Cabins For Sale Can Increase in Value Over Time

When supply is high and demand is low, you can purchase Tennessee cabins for sale at a low interest rate. This gives you the ability to increase your profit margin by purchasing the property at a low cost, and then selling it when the market is in better shape. People that purchased rental property after 2008 saw a significant increase in value when they sold their property later on. That’s a return on investment over time that you won’t see in any other market. 

Now is the perfect time to expand your investment portfolio! Reach out to the TN Smoky Mtn Realty team and we can help you find a profitable investment property. In the meantime, check out these Tennessee cabins for sale and give us a call at 865-280-2569 if you have any questions. 

What Buyers in Tennessee Need to Know about Working with Real Estate Agents

Whether you’re buying or selling a home, it’s important to work with a trusted real estate professional. Doing so ensures that you have an experienced advocate that can help navigate every phase of the process, understands the local market and will serve as your advocate through one of the largest purchases or sales of your life. 

When selling a property, the relationship between seller and agent is often pretty straight-forward. The seller selects an agent, and then the parties enter into a contractual relationship that outlines the terms of the relationship and gives the agent an obligation to work for the seller and the seller’s interests. 

For buyers, the relationship is sometimes less clear. Buyers often look at properties with agents or talk about buying a property without entering into a formal relationship. This can lead to some issues. Here are a few things that buyers need to know about the agency relationship in Tennessee to ensure that they’re adequately represented and that their interests are being protected. 

Agency Status in Tennessee

Informal relationships often develop between buyers and buyers’ agents. While this isn’t all bad, it’s important for buyers to understand that under Tennessee law there is no implied agency status. This means that to enter into an agency relationship, the buyer and agent must sign an agreement, usually known as a Buyer Representation Agreement. 

This agreement establishes the agency relationship and outlines the terms of the relationship. The signing of this agreement contractually binds the parties together and requires the agent to be the buyer’s advocate throughout all phases of the process, from looking at houses to making an offer, negotiating, and closing the deal. 

It’s key for buyers to understand the importance of entering into a Representation Agreement. Without it, there is no official relationship and an agent is simply showing the buyer houses or offering guidance as a courtesy. Or, they are showing a house and offering advice as a courtesy to a seller. 

The bottom line is that without a signed agreement, real estate agents have no obligation to represent a buyer’s interest or serve as their advocate. 

For more information about buying or selling homes in Tennessee, contact TN Smoky Mtn Realty. Our team of professionals understands the Pigeon Forge, Sevierville, and Gatlinburg markets and can help guide you through every phase of buying or selling a property in the area. 

How Zillow and Redfin Have Changed the Real Estate Industry 

The launch of real estate sites like Zillow and Redfin has changed the way that consumers get information about houses while also transforming the role of real estate agents. Understanding how the industry has changed can be helpful for anyone that is considering buying or selling a property. This is particularly important given some of the misinformation that is shared on these sites. 

What Services Do Zillow and Redfin Provide? 

Zillow was launched in 2006 and describes itself as a “real estate marketplace.” Beyond serving as a database with over 110 million US homes, the site also helps buyers and sellers connect with local real estate agents and mortgage providers. In addition, Zillow has a Zestimate feature, which is an algorithm to calculate home and rental prices. This feature is particularly controversial given some of its flaws that often leave buyers and sellers misinformed. 

Redfin launched in 2004 with the goal of providing sellers with a low-fee way to sell their homes. While the model has shifted some, the general idea is having fewer agents dealing with a higher volume of clients. While the goal of the site is to offer a discounted way to sell a home, the reality is that sellers are left paying a commission without getting many of the services that on-the-ground agents provide. 

The Changing Role of Real Estate Agents

The rise of Zillow, Redfin, and other major real estate sites has had some profound impacts on the real estate industry. Perhaps the biggest shift is the dramatic rise in the volume of information available to consumers.

The reality, however, is that while having access to lots of information is helpful, it can make it hard to know what information is relevant, accurate, and beneficial. Additionally, lots of information without context can leave buyers and sellers with very little guidance. 

Because of this, real estate agents have transitioned into being “curators” of information. Jonathan Miller of Miller Samuel describes this change well by observing, “The realtor’s role has morphed from ‘here’s the information’ to ‘here’s the right information.’” This is particularly true given some of the misleading information that is available from online sites. Algorithms and databases simply can’t give an accurate picture of local real estate markets. 

Why Buyers and Sellers Continue to Rely on Real Estate Agents 

Because of the shortcomings of these sites, around 90% of buyers and sellers continue to rely on real estate agents. When making the biggest and most complex purchase or sale of their lives, most people want a trusted professional to guide them through every step of the process. 

Additionally, while data and algorithms can provide some key information, they don’t replace the local knowledge and expertise that agents provide. Consumers need a trusted professional to help them sift through all of the information and focus on what’s accurate and relevant. 

As a result, the rise in online sites has not changed the demand for real estate agents. Instead,it’s simply changed the role of agents. For help learning how to navigate this changing industry in the Sevierville, Gatlinburg, or Pigeon Forge area, contact Smoky Mtn Realty. 

What Expenses Does a REALTOR Have? 

When considering selling a property, homeowners have to consider whether to work with a real estate agent or sell their property on their own. Some consider listing their home FSBO (For Sale By Owner) in order to try to save some money in the transaction. 

The reality, however, is that many of these homeowners end up being surprised about additional expenses they incur along the way. To make an informed decision about how to list your property, it’s helpful to first understand the primary expenses that REALTORs have. 

Basic Expenses of Real Estate Agents

In addition to the direct costs associated with listings, real estate agents have some basic startup and overhead costs. These costs include licensing and continuing education fees, association fees, operational costs, and advertising and marketing fees. 

While these costs might not be directly related to a particular listing, they’re still something that homeowners should keep in mind. These expenses help agents become more knowledgeable, expand their network, and stay connected in the local market, all of which are essential when it comes to helping buyers and sellers. 

Expenses Associated with Each Listing 

In addition to basic startup, overhead, and operational costs, REALTORS have substantial costs associated with each listing and client. Agents do not get paid until a deal closes. As a result, a primary expense on each listing is their time. 

When dealing with a seller, agents generally meet with clients before a property is ready for the market. They give advice about repairs, upgrades, and what should be done to best stage and prepare the home for the market. During these early meetings, they also provide advice about pricing. Once the house is listed, the agent hosts open houses, shows the property, and negotiates a deal. 

In addition to the time each listing requires, REALTORS have substantial marketing expenses. A comprehensive marketing campaign helps to ensure that homes sell quickly, and agents cover the costs of these campaigns. Effective marketing not only includes listing the property on the MLS and social media, but also things like professional photographs and videos, local ads, hosting events, and creating marketing materials. 

Conclusion

REALTORS bring a wealth of expertise, market knowledge, and marketing skills and strategies to sellers. That expertise, coupled with long hours devoted to getting each home sold, makes them a smart investment for sellers. 

Contact our team with any questions about the process. And, if you're looking to buy or sell a home in the Pigeon Forge, Sevierville, or Gatlinburg area, call TN Smoky Mtn Realty at (865)280-2569 to get started.