Bad time to buy a home in Knoxville? (fit in, real estate)

[gemkeeper]

Remember Martha Stewart and all of that backlash.

Something big should start to happen with major investigations into many of these fiascos!

[Beretta]

And we thought the Knox County Mayor's Office was bad.........

[Whataride]

Just remember that when you analyze a company, such as Countrywide, they are truly not to blame in the current situation. Historicallly, when a loan was originated, it was put in to a bundle and sold through a Wall Street Conduit. If you could bundle the right type of loans and sell them at a profit to the street - wouldn't you? Everyone is playing the blame game to everywhere except for Wall Street. As a broker, wholesaler, or even a direct lender - we were told what Wall Street would buy and the type of loans to write, and we did it. Now Wall Street is pointing the finger everywhere except for themselves.

As far as the economy, listen to the national news media and then look at where you live and see how it compares. If you take out the top 5% of the market in terms of foreclosures, inventory, etc.....what do you have in the rest of the country?

If you look at the boom in CA, they are saying that there will be a 34% decrease in housing prices - If I bought 5 yrs ago I am happy. When I pay 100K for something and in 5 yrs it is worth roughly 250K (20% increase over 5 yrs) and you cut it by 34% and my value is 165k now - I am very happy 65K on 100k in 5 yrs is better than any compounded interest I have seen in the financial market.

Not trying to start anything, just putting in my dos pesos. Like everyone else has stated. If you are staying for 2 or 3 yrs - buy.

[Beretta]

Originally Posted by Whataride

Not trying to start anything, just putting in my dos pesos.

Did you mean dos centavos, especially in this economy!?

Hey, you did a dos postos! LOL (sorry, couldn't resist! it's been once of those days and the Berringer is so good)

[weisgarber1]

Originally Posted by Whataride

Just remember that when you analyze a company, such as Countrywide, they are truly not to blame in the current situation. Historicallly, when a loan was originated, it was put in to a bundle and sold through a Wall Street Conduit. If you could bundle the right type of loans and sell them at a profit to the street - wouldn't you? Everyone is playing the blame game to everywhere except for Wall Street. As a broker, wholesaler, or even a direct lender - we were told what Wall Street would buy and the type of loans to write, and we did it. Now Wall Street is pointing the finger everywhere except for themselves.

Wall Street is indeed to blame, plenty of blame there. But there is an equal amount to spread among those greedy CEO's, such as Mozillo, who arguably set the top-down policy. I don't think there is any ignorance to plead there for them.

[mbmouse]

pssstttt. I know I am partly to blame here to, but we do need to get back on the topic pertaining to Knoxville here.

[mjb62676]

I bought...knowing we would be here for at least 4 years.

I thought renting would be throwing away our money....and it's very difficult to find a place to rent with pets.

I will warn you...there isn't much out there, at least in the places I looked. No basements, etc...

The homes here are pretty overpriced, imo.

I just want my builder to get my subdivision built out in the next couple of years...so when we're ready to sell, it will be easier to do so.

I also wish we had looked within the city a little more, rather than sticking strictly to the county.

[weisgarber1]

Originally Posted by mjb62676

The homes here are pretty overpriced, imo.

Overpriced? I don't think that will fly in comparison to other areas. I think the stats will show that homes here, relatively speaking, are much more affordable that in most urban areas, considering all the factors.

[hiknapster]

I think the houses are slightly overpriced, given the area, economy and pay-scale. Yes, you can pay a lot more elsewhere but there are usually reasons for that.

[Whataride]

Overpriced will be directly related to where you are coming from. I have opened offices and lived in some of the most expensive places to live in the nation and also lived in some of the cheapest. The East TN area is not overpriced which is evident from the increase in median house price, even in the turmoil that has taken place over the past yr. There are some builders that are overpriced and sell a "location". I have a clint that was quoted $200 per sq ft to build a home in West Knoxville...I told him to keep looking. There are hundreds of homes on the market in any given area of Knoxville - ask any of the realtors on this thread, they are a wealth of information and will not pressure you.

Determine a budget by getting prequalified with a mortgage professional that will base your purchase price on what you feel comfortable in paying on a monthly basis, not what you can get qualified for in a monthly payment. Find a reputable buyers agent that has no ties to a particular builder, put in an offer...pretty simple.


Something to ponder - - - if Knoxville home prices continued to rise last year, how could this be a bad time to buy (in this area, we are not talking about the boom and bust areas of the country)