The Home-Seller Pyramid

Pricing your home under market value.

I know it sounds wacky (and it maybe it is) but sometimes you have to do crazy things in crazy times. When searching for homes, most buyers are looking for a deal or what they perceive to be a deal.  Have you noticed that most foreclosures and short sales don’t stay on the market for very long? If you observe the trends, you will find this to be true. Why??? Because they are deals.

In this market, if you are not priced correctly, your home will not get shown. If it doesn’t get shown, then it won’t sell.  I heard a great analogy recently about the real estate market and I have adopted it. I don’t remember who said it (sorry for not citing this): “We are currently in a price battle and a beauty contest.” This is so true. Buyers right now are looking for correctly priced homes in good condition.

When selling your home in this market you need to present your home in an attractive way and make sure you price it correctly and competitively. If you are in an area with high demand and low inventory, you may want to consider pricing your home under the market. For example: Homes in your neighborhood are selling at $100 per square foot. You may want to price your home at $90 per square foot. This may create a feeding frenzy over your home. When this occurs, because of the high demand, the multiple offer situation pushes the price up.  However, I do NOT suggest this if there isn’t demand in your neighborhood or area. This pricing is only to be used in high-demand/low inventory areas.

This could backfire if you are priced low and receive only one offer for the asking price or less. It’s difficult to negotiate buyers up on price when they’re not in competition with another buyer. Also be mindful that you should not price anything lower than what you are willing to take.

Keep in mind, this strategy is only for sellers wanting to get out of their homes and those who are very motivated. This trend is used widely in the short sale arena, as the sellers usually have to sell to avoid foreclosure – knowing that they are not making anything from the sale of their home anyway.

If pricing under the market doesn’t appeal to you, at least do yourself a favor and price your home correctly in the market. You are not doing yourself a favor by jacking the price up in hopes of eventually coming down. Your “hot” time on the market is the first 2 weeks to one month.  Price your home right and make it look nice and it WILL sell!

Friday, January 27^th

1. Loretta Lynn at the Tennessee Theatre at 8pm – http://www.TennesseeTheatre.com
2. “After the Fall” at the Knoxville Museum of Art – http://www.metropulse.com/events/2012/jan/26/37240/
3. Knox News Auto Show at the Knoxville Convention Center – http://knoxnews.com
4. Dom Irrera and Bobby Jewell at Sidesplitters Comedy Club – http://sidesplitterscomedy.com/
5. 60’s Soul Dance Party at Sassy Ann’s – http://www.sassyanns.com/
6. Dinner at Chez Liberty – Tell Chef Robert DeBinder hello for us -  http://chezliberty.com/
7. Drinks at the “Speak Easy”  – The Crown and Goose Underground – http://www.thecrownandgoose.com/underground.html

Man v. Food at Sweet P's BBQ and Soul House

Saturday, January 28^th

1. The Ijams Annual Seed Swap and Discussion at Ijams Nature Center – http://www.ijams.org/
2. Knox News Auto Show  at the Knoxville Convention Center – http://knoxnews.com
3. Urban Land Scout Workshop at Three Rivers Market – passage@urbanlandscouts.com.
4. Go to the Museum of Appalachia – http://www.museumofappalachia.com/
5. “Days of Wine and Roses” Art Show at Tomato Head – http://thetomatohead.com/
6. Taboo at Valarium (Not For Kids) – http://www.thevalarium.com/
7. Jamie Laval at Palace Theater in Maryville – http://www.metropulse.com/events/2012/jan/28/37826/
8. Get Barbeque at Sweet P’s Barbeque and Soul House – http://sweetpbbq.com
9. Drinks at the Cairo Café (Mirage of Knoxville) – http://www.metropulse.com/places/cairo-cafe-mirage/

As we near the 6-year mark of the downturn of the real estate market, people are wondering if we have hit the bottom and when we think the market is going to improve.  For our livelihood and prosperity, we hope soon! There is a lot of information out there to support that we may finally be getting close to stabilizing, which should later translate into improvement.

In areas of strong job growth, markets are beginning to show signs of stabilization. Home values are no longer decreasing at as high rate. Granted, not all markets are the same, but usually when one market improves, others are to follow. The factor that is negatively affecting our market and many others is the issue of supply. The pool of buyers is somewhat constant but the number of homes on the market is still increasing. This is the case with our Knoxville market as well. Basic supply and demand shows us that when supply is high and demand is low, prices decline. However, in our office at RE/MAX Preferred Properties, the number of transactions increased drastically in the last quarter of 2011.  If the number of transactions steadily increases throughout all offices and agents, this should attack the oversupply of homes and will hopefully stabilize, if not improve, our real estate market.

“We may indeed be seeing the beginning of at least a ‘soft landing’ in housing”, says Michael Feder, President and CEO of Radar Logic. “Activity is stable, price decreases have slowed and it is unlikely that many more borrowers will enter default or that many more homes will go ‘underwater’. While this may not be the beginning of a recovery, the data suggests it may well be the beginning of an equilibrium, which if the case, should probably boost buyer’s confidence. If it does, a recovery may not be far away.”(Radar Logic)

What does this mean to buyers and sellers in the Knoxville, TN market? Buy now before hindsight gets the best of you. Interest rates are at historically low rates, deals are still out there in the market, and signs of improvement are around the corner. Buy a home now, take advantage of low rates, and equity in your home may not be that far away.

Check out the story on local news – WATE Channel 6. Caroline made her first cameo on the news. One of many, we hope. http://bit.ly/yqWqwo

For those of you who follow this blog, you may know that Caroline and my interests are all over the place. However, we really pride ourselves in getting out into the community and taking advantage of what Knoxville has to offer. There are so many things to do here, even on weekends of cold and nasty weather. However, it looks like it is going to be a nice weekend, just a little cold. Caroline and I have to work on Sunday, so I think we will be doing the East Lakeshore Trail with Sawyer and Luna (our dogs) and then going to check out some great music at the Bijou Theatre at night. We have compiled a short list of local activities that you should check out:

Friday, January 13, 2012

1. Les Miserables  at the Tennessee Theatre – http://www.tennesseetheatre.com
2. The Black Lillies at the Bijou Theatre – http://www.knoxbijou.com/
3. 3.       Wallace Coleman at the Knoxville Museum of Art (harmonica) – www.knoxart.org/
4. The Freight Hoppers at the Laurel Theatre (bluegrass) – http://www.metropulse.com/events/2012/jan/13/37443/
5. The Owl Prowl at Ijams Nature Center – http://www.metropulse.com/events/2012/jan/13/15377/
6. Knoxville Food Tours – http://www.knoxvillefoodtours.com
7. The Boyd’s Jig and Reel – Half Off Depot – http://halfoffdepot.com/knoxville/catalog/product/view/id/8837/s/food-and-drinks-at-boyd-s-jig-and-reel/category/52/
8. Knoxville Ice Bears vs. Louisiana Ice Gators – http://knoxvilleicebears.com/

Saturday, January 14, 2012

1. YMCA Race Against Racism at the Phyllis Wheatley YMCA – http://www.YMCAknox.com
2. Urban Land Scout Workshop at the Beardsley Farm – http://www.metropulse.com/events/2012/jan/14/26816/
3. Mama’s Market at the Fourth and Gill Neighborhood Center – http://www.metropulse.com/events/2012/jan/14/33837/
4. Farragut Skate Date at Cool Sports – http://www.townoffarragut.org/
5. The American Spiritual Ensemble at the Clayton Center for the Arts – http://www.claytonartscenter.com/
6. Les Miserables  at the Tennessee Theatre – http://www.tennesseetheatre.com
7. The Black Cadillacs with American Aquarium and the Cadillac Saints – http://www.thevalarium.com
8. The Steep Canyon Rangers with Jill Andrews – http://www.knoxbijou.com

According to Freddie Mac, the 30-year fixed mortgage rate matched its all-time low during the first days of the new year, marking the fifth straight week that the benchmark has averaged under 4 percent. Freddie Mac reports that the rate settled at an average 3.91 percent for the week ended Jan. 5, down from 3.95 percent a week earlier and 4.77 percent a year earlier. The 15-year fixed rate averaged 3.23 percent, meanwhile, down from 3.24 percent a week earlier and 4.13 percent a year earlier.

It is a GREAT time to lock in an ALL-TIME LOW interest rate!

[SOURCES: Freddie Mac; Information, Inc.]

I just listed the most adorable bungalow!  This home features:

• 3 bedrooms, 1 fully renovated bathroom
• 1300 square feet
• gorgeous built-ins and china cabinet
• historic architecture
• updated kitchen with stainless steel appliances
• level backyard with detached garage or workshop

Check out the photos courtesty of Shannon Kelly Photography (http://www.shannon-kelley.com/):

The best part? It is on the market for $70,000! Call Caroline for more information or to schedule a time to see this home in person: 865.712.2776.

Welcome Home to 1001 Kevin Road

Anyone looking for an awesome house with a pool? If so, look no further. My team and I just recently listed 1001 Kevin Road, Knoxville TN 37923. This home features:

• 4 bedrooms and 3 full baths
• 2600 square feet
• large living room upstairs that flows into formal dining room
• kitchen with updated cabinets and tons of storage
• deck with gas grill overlooking the pool
• master suite with stand-up shower and walk-in closet
• huge family room downstairs with a wet bar (fridge negotiable)
• office/4th bedroom downstairs with own full bath with stand-up shower
• oversized 2-car garage with plenty of storage
• pool with slide and diving board – serviced by the Pool Place
• pool house/shed
• incredible yard with mature landscaping on a corner lot

Master Bedroom

Updated Kitchen

Deck and patio on rear of home

Can I fix you a drink?

Awesome pool with slide and diving board

View more pictures online at http://www.RyanLevenson.com/770760

Custom Home in Friendsville - Friendship Farm

Our team just listed an amazing piece of property. This great home has tons of outdoor amenities that will make you want to move today.  The home has 3 bedrooms and 3.5 baths with 2674 square feet. It features:

• A large island kitchen with 3 ovens – all updated appliances
• A formal dining room
• Huge sunroom overlooking the pool, pasture and horses
• Main-level office or bedroom
• Family room with wood-burning fireplace
• Master bedroom upstairs with a full bath
• 2 other bedrooms upstairs with one full bath
• 10 acres – fully fenced with Flex Fencing
• 6-stall barn, tack room, wash bay and plumbed for another bath
• potting shed/detached workshop

Check out this pool and poolhouse. The pool has been re-lined. Inside the poolhouse, you will find a 1/2 bathroom and the mechanical room.

This is the coolest detached workshop that you will ever find. It has stained-glass windows that open and built-in counters  so you can have a work area for tools, plants, etc.

Don’t forget about the barn.

Say HELLO to Flash!

This homestead is amazing. Take the full tour at www.ryanlevenson.com/770077 or http://www.visualtour.com/show.asp?t=2561038&prt=10003

We are asking $525,000 for the property.

My hubby, Ryan, is the world’s best mulcher. I’m not lying. I’ll let the pictures speak for themselves:

Didn’t I warn you? He’s pretty darn good!

It took a whole day, 4 trailer loads of mulch, but the exterior of our house looks soooo good! If you’re trying to sell your house, curb appeal does really count.

Awesome 2-Story w/ Lots of Upgrades

I just recently listed this home for one of my good friends. This place is awesome. It is a 3 Bedroom/2 1/2 Bath with tons of upgrades. The sellers take amazing care of this home and it shows. It features:

- Real Hardwood Floors

- Updated Kitchen and Baths

- Level Yard w/ Nice Landscaping

- Large Master Suite

- One-Car Garage

Don’t wait… This home is not going to be around for long.

Take a tour of the home online at:  http://www.visualtour.com/shownp.asp?t=2502136