The Devil's in the Details

If we keep our eyes open we can learn a lot from people we work with. This article I wrote for the Real Estate Section for our local newspaper is one such story:
http://www.knoxnews.com/news/2008/oct/27/devils-details/

Funny Stories In a Day's Work

Check out this article about an event that happened to me. It's entitled "What Not to Wear":
http://www.realtor.org/archives/trenches200603

Home Inspection Issues to Look Out for.

Many thanks to an excellent Home Inspector, Peter Waraksa, for agreeing to this "On Site" discussion of some items to look out for when you are having Home Inspection.

1. Grading: Ideally you should not have more than a six inch rise within ten feet of the home's outer wall. Water flowing into the home can cause significant problems. Make sure to get a good look in the crawl space to make sure there is no standing water or moisture problems.
2. Foundation: Small cracks in the wall are not a concern. However, any separation over 3/4" should be checked out by a structural engineer. Make sure the foundation vents are above ground or are protected by a well, to prevent water flow into the crawl space.
3. Soft or Rotten Wood: Usually siding or trim pieces that are not properly caulked allowing moisture in.
4. Roof: Look for loose ridge vents, missing or damaged shingles, and loose flashing around plumbing vents. Each of these lead to roof leaks and water spots on interior ceilings.
5. Electrical Outlets: Make sure the outlets are 3 prong instead of 2 prong which are common in older homes. Two prong outlets do not provide a ground and are not recommended for use with computers and other electronic devices. Insure that outlets are GFIC (Ground Fault Interrupted Circuit) around areas exposed to water. When an item plugged in to a GFIC is exposed to moisture, the power will immediately shut off to avoid electrical shock.
6. Damaged Window Seals: In a double pane window if the seal is breached, there will be moisture build up between the windows and give you a "foggy" effect when looking through the glass.

If you would like to contact Peter Waraksa to schedule a home inspection he can be reached at 865-694-6332.

Appraisals No Longer a "Slam Dunk"

In the "Old Days" we as Realtors never were too concerned about a sale falling through because of it not appraising for the purchase price. Times are different now with increase emphasis being place on the Appraisal. Click on this link for an interesting article I've written about Appraisals.
http://www.knoxnews.com/news/2008/mar/09/what-you-need-do-appraiser-arrives/

Knoxville Annual Appreciation Rates

The most common question as of late is, "I've heard about what's happening in Real Estate in the national news. What's happening in the Knoxville Market?" These are the statistics directly from the Knox Area Assoc. of Realtors for sales of three bedroom homes.
We have really done well for appreciation rates with a 5.59% average annual increase from 2000 to 2007. We have had somewhat of a "correction" this year with a 0.667% decrease in value as of the end of the Second Quarter 2008.

How to Succeed Buying a Short Sale

Tips for Buyers wanting to buy a home through a Short Sale (Pre Foreclosure):

• Most lenders are not going to allow a Home Inspection contingency. If you want an inspection, you may have one, but the purchase can't be contingent upon the results. I would suggest having an inspection prior to making your offer.
• Realize you're going to have to wait possibly 3o days before you know if you offer has been accepted by the lender.
• Also realize the lender is attempting to get as many offers as they can and yours may not be chosen.
• Be flexible on your closing date. If you need to be in a home on a certain date a short sale may not be for you.
• Definitely have your mortgage pre approval or bank letter to send in with your offer.
• My experience is that lenders are going to want to net at between 80-87% of appraised value. If I really liked the home, I would offer 75% of the market value. This will get your offer chosen over others and still be a good deal for you.

In the current market short sales are a fact of life. If you have the "nerve" for it, you can come away with a great bargain.