Knoxville Real Estate Bubble/Sellers Market (sales, to rent, jumbo loan)

[klw1016]

We are relocating from out of state and cannot believe the problems we're having finding homes in Knox county. We've called several realtors who don't return calls (we have pre-approval in hand) or have asked to see listings only to be told it's not convenient to show (with several days notice). I've also noticed after researching the public sales records for several properties that many properties are selling well above their purchase price-several purchased in the last 2-3 years are listing their properties 20-40% more than what they purchased them for 2-3 years ago... with NO updates! I thought this was supposed to be a buyer's market. I think we are giving up and going to rent, sad because we were looking to purchase in the 600-700K range.

[muochoir]

I would build if I were you. In fact, that's what we're doing. The cost is actually less than what current listing prices are, which I find really ridiculous. How could an old house be more expensive???

Edited to add: I'm surprised you had bad Realtor experience. I don't really have anyone to recommend. But most of the Realtors I've contacted have been very responsive and can show a house in a day's notice. Since we'll be selling our house in the area too, I've used this experience to weed out potential Realtors to sell our house.

[Beretta]

Originally Posted by klw1016

We are relocating from out of state and cannot believe the problems we're having finding homes in Knox county. We've called several realtors who don't return calls (we have pre-approval in hand) or have asked to see listings only to be told it's not convenient to show (with several days notice). I've also noticed after researching the public sales records for several properties that many properties are selling well above their purchase price-several purchased in the last 2-3 years are listing their properties 20-40% more than what they purchased them for 2-3 years ago... with NO updates! I thought this was supposed to be a buyer's market. I think we are giving up and going to rent, sad because we were looking to purchase in the 600-700K range.

Sounds like you are calling listing agents of properties instead of finding the one buyers agent that will do all of this legwork for you. Realtors are wary of buyers that call them about one single property. They think that either the people aren't serious or are working with a buyers agent and will find that later on. Also, realtors have ethics rules that they follow and they have to be careful representing both parties in a transaction; provide disclosures, and ask for both parties to sign paperwork. Buyers agents can tell you what might have been done or influences to justify any price increases or decreases.

Why is all of this sad since you are buying in the 600-700K range? Professional realtors are there to help ALL price ranges and not just yours. ALL buyers are important.

Interestingly I know several people looking at houses now that can afford well in excess of 1 Million but they aren't buying up to that amount. They are saying that they will definitely NOT purchase a house that would qualify for a jumbo loan if they were ever to turn around to sell to a traditional buyer (20/80).

[bbkaren]

This is just a layman's observation but coming from NJ, housing in TN has always been a bargain.

I may be wrong but it's my impression that the huge bubble (and ensuing market crash) we saw here didn't hit Tennessee as badly...so prices may not have changed in TN as much as those of us from higher-priced areas might expect.

[Beretta]

Originally Posted by bbkaren

This is just a layman's observation but coming from NJ, housing in TN has always been a bargain.

I may be wrong but it's my impression that the huge bubble (and ensuing market crash) we saw here didn't hit Tennessee as badly...so prices may not have changed in TN as much as those of us from higher-priced areas might expect.

You are correct. There have been articles on that topic in the newspapers.

[klw1016]

We initially tried three different buyer's agent who took days to return calls and seemed indifferent. Then, we're called the listing agents who seemed much more interested, however we would prefer our own agent, who hopefully would be in our court. We're tired and now thinking of building, as we see many prices as unreasonable when you see what they purchased them for just a few years ago, again with no or really bad updates.

[hiknapster]

Originally Posted by klw1016

We initially tried three different buyer's agent who took days to return calls and seemed indifferent. Then, we're called the listing agents who seemed much more interested, however we would prefer our own agent, who hopefully would be in our court. We're tired and now thinking of building, as we see many prices as unreasonable when you see what they purchased them for just a few years ago, again with no or really bad updates.

Your first reaction is incredibly smart. I don't know how many times I've argued with folks about getting a buyer's agent. A good one will fight for you.

I would strongly advise you to stay away from the listing agent. If you stick with them then they will become a "dual agent." It's legal in this state but illegal in many others. The reason I caution you is they legally will always put the seller's interest before yours. Once again, legally they are obligated to do so. They'll have you sign a form stating as such.

I was an agent for about a year in Knoxville. I dropped out for numerous reasons but I cannot in good conscience recommend an agent. I am quite sure there are good agents out there. I just haven't met them.

Sad to say but when I looked for a house myself I had a difficult time getting agents to return calls. I finally found one that at least was interested in us, but she didn't have the gumption that it takes, and the end I had squatters in my house and had to fight for myself at the closing table.

That's one of the reasons I became an agent. I met someone on this forum that was buying a house from someone that I worked for and he had a heck of a time getting his agent to return calls, too. He ultimately became an agent but does not care for the unprofessional atmosphere around here. He's going to move back to Atlanta and get into the profession there, where his family is in the business in a major way.

I worked with people that were terrible about returning calls so I don't doubt you for a second. I wish I could give you some words of wisdom. I do want you to know that you are going with your gut and it is correct.

[muochoir]

Originally Posted by klw1016

We initially tried three different buyer's agent who took days to return calls and seemed indifferent. Then, we're called the listing agents who seemed much more interested, however we would prefer our own agent, who hopefully would be in our court. We're tired and now thinking of building, as we see many prices as unreasonable when you see what they purchased them for just a few years ago, again with no or really bad updates.

Good luck with building! I'm really hoping we will break ground soon. We still need to work on our house plan. It feels like I've been tweaking it forever. lol.

[mjb62676]

Sorry. Not advertising.

Stating fact. I know of a house that's NOT listed above the original selling price. In fact, I don't know where the OP is getting the idea that this is actually occuring. The market here has been stagnant for 4 years. I know this from personal experience.



Buyers are literally stealing properties from people once you figure in the cost of the useless realtors.

[hiknapster]

Originally Posted by mjb62676

Sorry. Not advertising.

Stating fact. I know of a house that's NOT listed above the original selling price. In fact, I don't know where the OP is getting the idea that this is actually occuring. The market here has been stagnant for 4 years. I know this from personal experience.



Buyers are literally stealing properties from people once you figure in the cost of the useless realtors.

Whoa, whoa, whoa, whoa, whoa. Hold up.

First of all, no one is stealing homes from anyone. The market is what it is. In some parts of the country there are people that bought homes and paid far more than what they are worth now. If someone bought a home for $300,000 and it is now worth $110,000 and that's what a new buyer is going to pay for it then OH WELL. That's what the market will bear.

Your lucky our market is stagnant. Try living in parts of California, Nevada and Florida. I've seen many a person with a home just like the above scenario. If your home is worth less than what you paid for it, your fault.

And each case is different. Some homes are now worth more than what was paid, some much less. I guess it depends on how savvy the original buyer was.

I bought a home in 2008. The buyer originally wanted $170,000. I paid $119,000, minus concessions for a grand total of $113,000. The house is worth about $145,000. Why? Because I knew what I was doing.

Caveat emptor.