Bad time to buy a home in Knoxville? (White House: sales, foreclosures) - Tennessee (TN) - Page 2 - City-Data Forum

goodbyehollywood · 01-12-2008, 08:34 PM

I agree with SMG, JMT, mbmouse and the other posters. My motto is that I am always a buyer, because when a property meets my specific goals and I can afford it and obtain a sensible mortgage to pay for it, I buy, no matter what the market is doing.

That's because nobody-- NOBODY-- can predict what the market might do tomorrow. Every single day, the market has a 50/50 chance of going up or down and you have a 50/50 chance that a property you love might sell to someone else while you're trying to time the market. Nobody can successfully time the market and a lot of us have tried with about-- you guessed it-- 50/50 success.

My advice is to set a goal, set a price limit, find a part of town or a neighborhood you love and start browsing. When you find a house that meets your goals at a price you can afford (and that is in line with, or below, the comps), negotiate the best deal you can, then live in it happily ever after. That's the only way I know that you have better than 50/50 odds of getting it right.

Oh, and I don't agree that West Knoxville pricing is at the peak. Prices have fallen and seem to be stabilizing in many neighborhoods I know. Personally, I think they have a 50/50 shot of going down more or possibly even up come spring, largely because we have a 50/50 chance of a recession. (Actually, there is a 50/50 chance that we are in a stealth one now.) I wouldn't rush into anything or feel pressured to buy... but I wouldn't be afraid to negotiate a good deal on just the right property, either. Be picky, be prudent and be patient. And find a terrific buyer's agent who has his or her pulse on a changing market.

Just my .02-- offered for free. Good luck!

oldmanbob · 01-12-2008, 09:20 PM

Go for it smokymtn girl. Interest rates are at a record low, and if your credit score will allow, you can probably get around 5.5. Like many have said, good agents work mostly from referrals and we are happy to give out as many numbers as you want. A happy client is the best adverstisement we can ever hope for. What we provide, is a good ear, and provide you with what is in your price range, and there is no magic, you just find the perfect fit. I would give my commission away, rather than ruin the realationship with any client. So go find the right ear, and if it takes many showings, your heart and a good patient agent will get it done.

mbmouse · 01-12-2008, 09:32 PM

Quote:

Originally Posted by goodbyehollywood

I agree with SMG, JMT, mbmouse and the other posters. My motto is that I am always a buyer, because when a property meets my specific goals and I can afford it and obtain a sensible mortgage to pay for it, I buy, no matter what the market is doing.

That's because nobody-- NOBODY-- can predict what the market might do tomorrow. Every single day, the market has a 50/50 chance of going up or down and you have a 50/50 chance that a property you love might sell to someone else while you're trying to time the market. Nobody can successfully time the market and a lot of us have tried with about-- you guessed it-- 50/50 success.

My advice is to set a goal, set a price limit, find a part of town or a neighborhood you love and start browsing. When you find a house that meets your goals at a price you can afford (and that is in line with, or below, the comps), negotiate the best deal you can, then live in it happily ever after. That's the only way I know that you have better than 50/50 odds of getting it right.

Oh, and I don't agree that West Knoxville pricing is at the peak. Prices have fallen and seem to be stabilizing in many neighborhoods I know. Personally, I think they have a 50/50 shot of going down more or possibly even up come spring, largely because we have a 50/50 chance of a recession. (Actually, there is a 50/50 chance that we are in a stealth one now.) I wouldn't rush into anything or feel pressured to buy... but I wouldn't be afraid to negotiate a good deal on just the right property, either. Be picky, be prudent and be patient. And find a terrific buyer's agent who has his or her pulse on a changing market.

Just my .02-- offered for free. Good luck!

I agree 100%.
Nostradamus and most of the others who claim to predict the future have been wrong plenty of times. Only time will tell so it is always best to use your own sound judgment after looking at all your options. Do what is right for you and the family, not what some yahoo stranger on the boob tube says might happen. Not saying totally discount news reports about the economy, just weight it in it's proper proportion.

gemkeeper · 01-12-2008, 09:37 PM

Thanks to all of you for your advice. What you have said now that I see it in front of my eyes seems so obvious. It is great to have a couple of folks in the business offer their insight, also.

Buying a house or property to build can be such an emotional hotspot, especially knowing that it will be our last house - our forever house.

It makes perfect sense to have a sit down with our agent and let the agent know what our concerns are. I think we had a good feel about this RE agent from the beginning, but have not kept good lines of communication open.

This must be the key. And, thanks, GBH, for that sensible look at the housing market. It definitely is a 50-50 shot each and every day. We just have to go with our instincts and rely on our common sense.

We are in kind of a holding pattern right now for the next 6-8 weeks, but then want to get busy again. We won't have a mortgage, so the interest rates aren't an issue.

We are just anxious to be settled and secure at this point.

Thanks for all of your feedback.

Beretta · 01-12-2008, 09:42 PM

gem, many of the realtors here in town are folding tents and getting other jobs. The ones that are left are the most successful, generally speaking. Your particular realtor, I haven't seen her name around in quite some time. I can DM you the names of reputable agents in Maryville that are still going strong.

Beretta · 01-12-2008, 09:46 PM

Quote:

Originally Posted by oldmanbob

Go for it smokymtn girl.

Thanks, but I am not in the market for a new permanent residence. Although we are shopping some land. I am in the same house from almost 5 years ago with the same 5 and a quarter interest rate. We are thinking about refinancing though to pull some money out and do some improvements.

We hope to move in 1.5 - 2 years when the youngest graduates from high school.

gemkeeper · 01-12-2008, 09:47 PM

Thanks, SMG, I would appreciate that. That is something I had not considered. It could be desperation time for some.

Thanks for the help.

husbus · 01-13-2008, 12:17 AM

Thanks all for your input, exactly the kind of stuff I was looking for! And it was basically good news too! I feel better about it.

Quote:

Originally Posted by JMT

I'm not sure why it really matters what the Knoxville market will do AFTER you buy your house. I mean, I assume you're going to be in it for the long haul, right? If you find a home that you really like and is in your price range, and as long as you get a decent interest rate with monthly mortgage payments you can easily afford, who cares what happens to the local housing market a year from now?

I suppose those are rhetorical questions, but still... Yes, you make a very good point. We're in for the long haul. I suppose there's always some risk to be in a situation where you might end up owing more than the property is worth though, if something catastrophical should happen so that you cannot make the payments anymore. It depends on how paranoid you are, I guess.

Also, say that there is a significant drop in the next year... Any "extra" money you paid to to buy it earlier was wasted. It'd be easy to get rich if you could predict the future though.

hiknapster · 01-13-2008, 02:53 AM

If you have to move and buy a house, just make sure you get a very good deal. There are lots of people in the same boat, and NEED to sell. If you plan on selling in a short amount of time, after buying, then I would simply rent.

As far as the economy goes, I don't listen to talking heads; what I pay attention to is the hard numbers. What I see is catastrophic.

equescool · 01-13-2008, 07:58 PM

After 6 months on the market, my niece and her husband showed their west Knoxville house six times today and got two offers, selling it for the asking price of $300+ thousand. Go figure. It is in a great location off Northshore Dr. They had it sold a few months ago, but the poor folks who bought it lost their CA home to a fire, and the corporation who was moving them would not buy their CA home until it was rebuilt.... aaauuuuggghh for them, and they had to let the home in Knoxville go. I am delighted to hear it finally sold, and hopefully, the upswing is here~! EQ