Bad time to buy a home in Knoxville?

[AdelinaRotar]

My husband and I have rented for the past 2 years while waiting for our income to stabilize and our credit to move the 700 range. I have spend $24,300 on rent in the last 2 years...with no tax benefits...I haven't been able to paint, put up a fence, and make anything "mine." I believe that I would buy a home just for the tax benefits and being able to call it mine...I want to belong somewhere...owning a home is still the American dream...and most people would rather own than rent if given a choice. We had no choice for 2 years, so we had to rent...but we are so ready to buy something of our own. Now, that doesn't mean we're going to overextend ourselves...what we can afford is what we can afford, period. I've sold several foreclosures in the last few months and about 80% of the people that were foreclosed on took out equity loans in addition to their original mortgage note... I think sometimes we dig our own holes, you know? I mean, you can't just keep on borrowing and make it...it just doesn't work like that. Now, there are a ton of people that have lost jobs or had hours cut...that's understandable...but, people in Knoxville haven't seen such a hit in equity over the past 2 years...it still makes sense to own rather than to rent...

Most agents strive to cultivate life-long relationships with their clients. My clients love me when I negotiate a deal for them...The difference between a $200K sales price and $225K sales price equals to virtually $200-$600 in extra commission...not really worth it to many people...I strive for repeat clients...and no one will come back to you if they feel they've overpaid. I don't know what a buyer can or can't afford...the lenders job is to determine that and ultimately the buyer signs the offer...so, ultimately, the buyer and lender is in the driver's seat more so than the real estate agent. My job as a realtor is to find the home my buyers are looking for and present them with the facts; ultimately, the buyer makes the decision.

Originally Posted by powet

There is an important fact that most people miss, probably due to constantly being bombarded by real estate agents about the need to own a home. Renting is the right thing for a lot folks to to, simply because you can be flexible and move to where the jobs are. Owning a home in tough economic times can be an albatross around your neck, not an asset like the realty companies tell you it is.

I own a nice home, but like owning anything else, it is not the end all and it is not the best thing for everyone. Another thing to keep in mind if looking for a home is that real estate agents work on commission. They will push you to the brink of what you can afford. Buy less than they tell you you can afford. They won't be around to make the payment when foreclosure is staring you in the face. One more thought, I have never seen a home make anyone happy, though many get caught up in the moment when looking and think it will solve everything from marriage problems on down. It won't. Only you can make you happy.

[Servpro Will]

Powet,

I must respectfully beg to differ on your opinions. Though I appreciate your insight and personal thoughts, I see more green grass in the field than most everyday. There are realtors in Knoxville, quite many, that have a great client/realtor relationship, and a friend/friend relationship with their clients. Homes truly can make people happy. Yes, a home is not the answer to a great life, successful marriage, or secret answer to personal problems. However, a home can provide residents with a needed sense of security, wonderful space or yard to enjoy their family and friend time, relief from a worse area, extra room to grow, less room to downsize, and great feeling of pride and ownership from hard work an determination from years of working to find that perfect fit in society for a place to reside that fits their needs, likes, and lifestyle. A home can people happy. And for devoted realtors, nothing makes us happier than to pair a family with the perfect match and see that first look of joy when they walk into the home they've been searching for. As realtors, we don't work for commission, we EARN commission. This means listening to their needs, deciding with them if now is the right time for them to buy. All realtors do not push buyers to a higher price point. Rather, we work to find the best and most compaatible home to fit within their budget. As a profession, most realtors know why the economy has struggled and what the root cause of this was. We understand that our market NEEDS homeowners that can stay within their budget and make responsible decisions to stabalize the housing industry. Blanketing all realtors as money hungry, commission counting, price gougers can really be a disservice to those out there that dedicate themselves to help course correct the economy by working in conjunction with a well informed client. We do recommend people wait to purchase if it doesn't seem economical, we do search for rental property for them, and we do advise when a client may be overextending their limits. So while I see your argument, and agree that purchasing is not for everyone, understand that there are many great realtors that start out as listeners first, and realtors second. My two cents...

[sandim123]

Originally Posted by mjb62676

You might also consider other areas to see where you can get the most bang for your buck....and get them on the upward swing, rather than buying at the peak (how I view W. Knox County right now).

Just my .02.

have u considered buying land and building to suit yr style?

[sandim123]

Originally Posted by mjb62676

You might also consider other areas to see where you can get the most bang for your buck....and get them on the upward swing, rather than buying at the peak (how I view W. Knox County right now).

Just my .02.

Originally Posted by husbus

My wife and I want to buy a house in West Knoxville and start a family, and we really want to do it now, even though it seems like scary times to do it (we're not getting any younger, for one thing).

We have stable economy and own a cheap, crappy house that we don't owe anything on (probably worth 60k or so). However, this is still a major thing for us as it'll be our first real "permanent" home, and we'll probably need to stretch our budget a bit to get everything we want.

The Knoxville market isn't in as bad a shape as the catastrophe areas where people are dumping their houses, obviously, but it also seems clear that it is slowing down. How likely is the Knoxville market to take a significant dip in the near future? Is this a stupid time to buy a major housing upgrade, or should we go for it?

have u considereded buying land and build to suit?