Chattanooga-Cleveland TN Real Estate and Community News

 

The Differences Between a Homeowner Sale and a Bank Foreclosure

 

Today I want to talk about the difference between a homeowner sale and a bank foreclosure.

There actually is not much difference. However, there is an emotional side to a homeowner sale, while banks have a strategy behind how they liquidate the property for foreclosures.

Banks work with appraisers and brokers for opinions on price before they put the home on the market. They also check for any condition issues to reflect that in the price just like a homeowner would.

The only big difference is that banks want to compete in the market, so they will have a strategy to do that. They also make price reductions on a more regular basis because they may have a bottom line that they have to meet to pay off a mortgage.

“Banks do price reductions on a more regular basis because they may have a bottom line that they have to meet to pay off a mortgage.”

Writing an offer on a bank foreclosure versus an offer for a homeowner sale is still the same. The offer will still have to be presented to the seller, whether that’s bank or the homeowner themselves, and then negotiated out like any other contract is.

Do not be afraid of bank foreclosures. There are a lot of stories about whether they are harder to deal with, easier to deal with, or if you can get a great deal on a property. That all depends on if the bank has rehabbed the property and got it ready to sell or if it has bigger issues like any home could.

All in all, bank foreclosures are still good properties to buy. You just have to make sure, as with any other property, that you get a home inspection completed first.

If you have any additional questions or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

 

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April 22, 2020

Coronavirus In The News This Week

 

Greetings, I hope you and your loved ones continue to stay safe and healthy. The coronavirus continues to dominate every aspect of our lives, both here in the United States and across the globe, and even though it can be hard to stay up to date with the latest changes, it is my goal to keep you informed.

Here are a few updates about how COVID-19 continues to impact the economy and the housing market:

  • According to MarketWatch, requests for mortgage forbearance increased 1,896% nationwide from March 16 to March 30. The CARES Act requires servicers to provide forbearance to homeowners with federally-backed mortgages, while all other homeowners may seek forbearance at the discretion of their servicer. Experts advise all homeowners to know the difference between deferment, forbearance, and forgiveness.
  • Millennials, the largest demographic of U.S. homebuyers, will have now faced back-to-back economic crises since their entry into the workforce; how will their response shape the housing market for years to come?
  • Though Realtor.com’s Director of Economic Research Javier Vivas cautioned it will take another month to truly understand the effects of COVID-19 on supply and demand, the site’s monthly list of top-performing markets for March highlights the potential for an increase in the popularity of less-dense cities like Colorado Springs, Fort Wayne, and Spokane as the result of the health crisis.
  • Federal Reserve Vice Chairman Richard Clarida offers assurance that the central bank “has the tools [it needs]” to keep the U.S. out of a deflationary trap. “We’re going to keep rates where they are, which is basically very close to zero, until the economy is on track to achieve maximum employment and price stability,” he said. Learn more about the indirect relationship between Fed funds rates and mortgage interest rates here.
  • CDC reports 70 coronavirus vaccinations are under development across the globe, and three have entered human trials.
  • Saudi Arabia and Russia struck a deal with other oil-producing countries to dramatically slash production in an effort to rectify the oil market, though analysts agree the impact of such agreements can only go so far in combating the global lack of demand.

As best it can, the real estate industry will continue to operate during these trying times. Agents the nation over are taking precautions to keep themselves and their clients safe as they navigate transactions, interacting with clients remotely when possible, limiting the number of people who come to a home’s showings, and/or leveraging virtual home tours to replace in-person contact as much as possible.

If you have questions for me or if I can assist you in any way, don’t hesitate to reach out via phone or email today. I’m here to help.

Sincerely,

Dustin Sherlin

423-896-6000

Sales@SherlinTeam.com

SherlinTeam.com

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Posted in Community News
March 17, 2020

The Coronavirus Impact on Real Estate

Friends and Clients —

As the world nervously watches the spread of COVID-19 (Coronavirus), the pandemic has begun prompting responses from every industry, and nearly every level of organization in the country. Perhaps a much anticipated social gathering or recreational league you or a family member enjoy has just been canceled or postponed indefinitely. Professional sporting events, concerts, and even political campaigning have been impacted. How then, has COVID-19 affected the real estate market, especially as we enter what was primed to be an especially hot spring?
Lawrence Yu, chief economist for the National Association of Realtors, had anticipated about 5.5 million sales of previously owned homes this year (an increase from 2019 and 2018).
That's because borrowing costs have plunged to lows never before seen (e.g., an average interest rate of 3.29% on a 30-year fixed-rate mortgage) and the job market is strong. Obviously, though, no one could have foreseen a virus disrupting market conditions at the start of 2020.
But just how disruptive is it? In the hardest-hit counties in the nation, such as King County, Washington, Realtors are reporting that homes are still being bought and sold like normal. Though there has been the occasional seller canceling an open house or removing a listing entirely, the fact remains that properties are still moving; buyers and sellers understand this market has something to offer for everyone.
Yes, experts are tampering their expectations for the spring market slightly. The most significant impact is the fact that sellers may be less likely to list their homes right now, which could dampen hopes that significantly more inventory would hit the market come spring and alleviate the supply stress. Conditions that make for a fantastic market for both buyers and sellers still exist—crazy low rates and rising home values.
Ultimately, you have to determine what’s right for you as a homebuyer or home seller. My job isn’t to push you into a decision you’re not comfortable with, but rather to provide hyperlocal context that may be lost in the national media coverage. Our market is still thriving.
Of course, the degree and nature of the COVID-19 outbreak may change, and that's why I will continue to provide you with the most up-to-date information possible. The simple fact is that I’m a Realtor, not an epidemiologist.
It's important that we listen to the medical professionals who are bearing the brunt of this, working hard to treat the infected, and developing a vaccine. We must all do our part to slow the progression. Hopefully, by now, you've heard these protocols, but it never hurts to reiterate them:
  • Wash your hands with soap for at least 20 seconds, especially after having been in a public space or after coughing, sneezing, or blowing your nose.
  • If COVID-19 is active in your area, put distance between yourself and other people. Avoid public areas unless absolutely necessary, especially if you are at a higher risk of getting sick.
  • Stay at home if you’re sick.
  • Wear a mask if you’re sick.
So what can you do if you have your good hygiene habits down but still aren’t sure if it’s right to begin the home selling or home buying process?
If you're practicing social distancing, I'd be happy to offer you a virtual consultation. There's no need to meet in person. We can discuss your specific needs in detail, and I can also provide you with a virtual tour of homes you may be interested in.
Sellers: Setting up a mandatory hand washing station at open houses may be a great call. It communicates to the buyers that you're on their page--doing your civic duty to take COVID-19 seriously, but also determined to take advantage of great spring conditions.
If you have any real estate-related questions or you want more specific stats on how our market is performing, please reach out to me anytime. For COVID-19-related questions, routinely check the Centers for Disease Control website or contact medical professionals.
Have a great day,

 

Dustin Sherlin
423-896-6000
Sales@SherlinTeam.com

SherlinTeam.com

Posted in Community News
Oct. 16, 2019

Fall 2019 Home Price Update

Check out my website!
Friends and Clients —

The real estate market is in an unusual position right now. Let me explain.

First off, mortgages are once again incredibly low.

After increasing for much of last year, mortgages started dropping last November. And they've kept dropping, up to and including the present. The current 30-year fixed-mortgage rate stands at 3.49%, just 0.18% over the all-time historic low.

Second, home prices are rising again. This July, home prices rose 3.6% over the previous year.

However, we are also seeing fewer bidding wars. Just 10% of listed homes wound up in a bidding war this August, compared with 42% last year.

Finally, existing home sales are barely holding steady. Home sales dropped in every month for the past year and a half, but were slightly higher this July.

So you can see why it's an unusual position right now. Mortgage rates are incredibly low, making homes more affordable. And yet homes sales aren't taking off. Prices are increasing, but this isn't being driven by heated bidding wars.

So what's going on?

Well, it’s partially due to overall economic uncertainty. The stock market recently experienced several big swings, and this has pushed mortgage rates down while keeping some buyers on the sidelines.

But a much more important cause is likely to be the severe shortage of homes on the market.

Last autumn, we finally saw an increase in the supply of homes for sale. However, with the ongoing drop in interest rates, more demand soon overwhelmed the increase in supply.

Housing inventory was near all-time record lows in early summer, and this explains the low number of home sales. 

So what does this all mean for you?

Well, if you've been considering selling your home, then I think right now is the moment to act, for two simple reasons.

First, the current low mortgage rates are making homes very affordable to buyers. But this could change at any time. The mortgage rate could start swinging upwards, just like it did last year.

Second, home prices are at very healthy levels right now. That's largely due to the lack of inventory. But if mortgage rates start increasing, this too could change quickly.

The upshot is that if you list your home now, chances are good that you can sell it quickly and for a top price. Wait a few months, and the situation might change dramatically.

In case you'd like to see what your home is currently worth, take a look at this home value calculator, which takes into account recent Cleveland sales: 

Enter your home address here to find out what your home is currently worth

And if you are thinking about selling, give me a call at 423-896-6000. I've been talking to a lot of buyers around Cleveland, and I can give you my advice on how to best position and price your home in the current unusual market.

Have a great day,

Dustin Sherlin
423-896-6000
Sales@SherlinTeam.com
SherlinTeam.com
   
 
Home Value Report
 
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Posted in Community News
Oct. 3, 2018

Home Sellers: Don’t Hire an Agent Before Asking Them These 5 Questions?

Home Sellers: Don’t Hire an Agent Before Asking Them These 5 Questions

 

If you’re selling your home and you need to hire an agent, here are five questions you should ask them in order to find out if they’ll be able to sell your home quickly and for top dollar:

1. “How long have you been selling homes?” This will give you an idea of their experience level.

2. “Do you have a written marketing plan?” Agents who have a more detailed marketing plan for their clients are typically more successful in selling homes consistently.

3. “Do you work with a team or as an individual?”

4. “What is your list-to-sale price ratio?” This number will tell you how good of a negotiator they are.

5. “Do you have a written marketing analysis?” Asking to see a written marketing analysis will allow you to actually see what the market is doing instead of listening to someone tell you where it’s at.

“Agents who have a more detailed marketing plan for their clients are typically more successful in selling homes consistently.”

If you have any other questions about what you should ask your agent before hiring them or you have any other real estate needs, don’t hesitate to call or email us anytime. We’d love to speak with you.

 

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Posted in Real Estate Videos
Oct. 3, 2018

3 Things That Can Kill Your Home Sale

3 Things That Can Kill Your Home Sale

 

You may think that your house is ready to go on the market as-is, but little things you would not expect can end up being big deal-breakers for buyers. This is why today I want to take a look at three silly things that could sabotage your home sale if you don’t fix them:

1. A messy lawn. Buyers likely won’t forgive a messy lawn. Your home may even stand out if a buyer sees you making an effort to clean it up while your neighbor’s yard is still 15 inches deep in leaves.

“A buyer is going to wonder why you did not take the extra steps to hide dangling TV cords.”

2. Animals. While buyers may not mind if animals live in the home that they are considering purchasing, they don’t want to see or smell any evidence of them.

3. Cords hanging from a mounted TV. Do not be surprised if a potential buyer’s eyes go straight to the dangling cords as they walk in. At that point, they’re going to wonder why you did not take the extra steps to hide those cords.

If you have any additional questions, please feel free to contact me. And, if you are thinking of selling your home, please call or email anytime. I would be happy to help.

 

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Posted in Real Estate Videos
Oct. 3, 2018

Cleveland Chattanooga Homes

The Differences Between a Homeowner Sale and a Bank Foreclosure

 

Today I want to talk about the difference between a homeowner sale and a bank foreclosure.

There actually is not much difference. However, there is an emotional side to a homeowner sale, while banks have a strategy behind how they liquidate the property for foreclosures.

Banks work with appraisers and brokers for opinions on price before they put the home on the market. They also check for any condition issues to reflect that in the price just like a homeowner would.

The only big difference is that banks want to compete in the market, so they will have a strategy to do that. They also make price reductions on a more regular basis because they may have a bottom line that they have to meet to pay off a mortgage.

“Banks do price reductions on a more regular basis because they may have a bottom line that they have to meet to pay off a mortgage.”

Writing an offer on a bank foreclosure versus an offer for a homeowner sale is still the same. The offer will still have to be presented to the seller, whether that’s bank or the homeowner themselves, and then negotiated out like any other contract is.

Do not be afraid of bank foreclosures. There are a lot of stories about whether they are harder to deal with, easier to deal with, or if you can get a great deal on a property. That all depends on if the bank has rehabbed the property and got it ready to sell or if it has bigger issues like any home could.

All in all, bank foreclosures are still good properties to buy. You just have to make sure, as with any other property, that you get a home inspection completed first.

If you have any additional questions or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

 

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Posted in Real Estate Videos
April 10, 2018

Home Warranty

Home Warranty

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