Chattanooga Real Estate Podcast with Dustin Sherlin

Sellers should feel confident about our spring and summer market. Would you believe that back in February there were more licensed Realtors across the nation than there were homes for sale? We only had two months of inventory and existing home sales fell 6.6% compared to January. We’re still feeling the effects of the harsh winter many people had to endure as inventory remains low nationwide. What does that mean now that spring is in full bloom? Here’s your seller’s guide to the 2021 spring and summer market and why sellers should feel confident about our spring and summer market.   “According to the mortgage bankers association, demand remains quite strong.” This low inventory is caused by the median home price increasing 16% over the past year to $313,000. At the same time, interest rates have slowly gone up. According to Freddie Mac, the average rate on a 30-year fixed fixed-rate mortgage was 3.17% near the end of March. That’s the highest level since June of 2020. Home sales usually dip in the winter before climbing in the spring as families try to settle in before starting a new school year, but some would-be sellers are still staying put because these increases have reduced their ability to buy their next homes. Since finding and buying a home is such a challenge, sales lagged a bit at the start of spring, but slow growth is possible in the coming months. However, according to the mortgage bankers association, demand remains quite strong. This is being driven by an improving job market as well as mortgage rates which remain historically quite low, even with the recent increases. What does this mean for you? You still have every right to feel confident in selling quickly and for top dollar this spring. Here are two more statistics from February: Asking prices of newly listed homes hit an all-time high of $347,475 and 55% of homes went under contract within the first two weeks of being on the market. If you’re thinking of selling your home this year and taking advantage of the wonderful opportunity, give us a call. You can reach us at 423-896-6000. We’ll be happy to give you a free home evaluation.

Here’s the latest news on the spring real estate market in our area. The spring real estate market is back with a vengeance. After a full year of dealing with COVID-19 here in the U.S., a vaccine surge is on the horizon and the economic outlook is positive. March, a historically active month for the market, is once again poised for strong performance.   Home prices continue to surge despite a slight dip in demand. The recently released S&P CoreLogic Case-Shiller 20-city price index shows that home prices have been increasing at the fastest pace since 2014. It was also reported at the end of February that total mortgage application volume fell by 11.4%. That’s largely due to interest rates climbing back up into the high 2s and low 3s.  While it’s clear that 2021 won’t be a second consecutive year of watching rates limbo to new lows on an almost monthly basis, the Fed still intends to keep rates artificially low. Furthermore, millennials—the largest generation in American history—will continue to pour into the market after helping Zillow’s traffic skyrocket to 9.6 billion visits last year. However, an uptick in inventory this spring may thaw our market. An intensified seller’s market emerged in the wake of the pandemic. It has led to homes in some markets fetching a jaw-dropping number of bids before going under contract for tens of thousands of dollars over list price.  At the same time, it also hampered sales a bit. Pending home sales fell in January because there are simply not enough homes to match the demand on the market. With more sellers primed to enter the market, weary homebuyers may find a smidgen of relief—but they still won’t be calling the shots. (Offers over list price will still be par for the course).  Would-be sellers who sidelined their plans last spring due to COVID-19 may feel more optimistic this time around. They’ve watched the 2020 housing market triumph in the face of adversity, and they’re seeing consumer confidence rise now. More inventory this spring could grease the wheels of the housing market and lead to huge increases in sales.  “Millennial homebuyers are continuing to pour into the market.” What does this mean for you? Though some buyers may be deterred by interest rates ratcheting up a bit, many more are rushing to lock in affordable monthly payments while they still can. For sellers, the competition will increase markedly over the next few months. Netting top dollar is still more than possible, but overpricing a home and failing to prepare it for the market is a losing strategy.  Buyers and sellers alike need to work with a skilled professional to navigate this market madness. If you’ve even been entertaining the idea of selling your home at all this year, I invite you to give me a call or send me an email today. I’d love to hear from you and answer any questions you may have. Teaser: As we head further into spring, I want to bring you a quick update of where our real estate market stands. After a full year of dealing with COVID-19, the outlook for this spring and summer are strong. Home prices continue to surge and although demand has dipped slightly, it’s still driving our market. Inventory remains extremely low and home sellers are reaping the benefits. At the same time, homebuyers are still able to lock in historically low interest rates. To learn more about what’s going on in the market, watch this short video.  

Here’s why I don’t foresee a housing crisis affecting buyers and sellers. You might be wondering whether our real estate market will turn around this year considering the state of the economy due to the pandemic. Clearly, the economy went on pause after the initial outbreak. I don’t think we’ve ever seen anything like this.  Major financial institutions like JP Morgan, Goldman Sachs, Morgan Stanley, and others predict a V-shaped recovery for the economy, where it bounces back just as quickly as it declined. Historical analysis shows that pandemics are usually V-shaped, and society typically recovers quickly enough from any damage to avoid affecting home prices in the long term.  Right now buyer demand is very strong; buyers are just waiting for more inventory to become available. Everyone keeps asking me whether we’re heading for a recession. My response is that we might be, but that doesn’t necessarily mean we’re heading for a housing crisis too. According to Fannie Mae and Freddie Mac’s home pricing indices, only two recessions have ever impacted the real estate market: the Gulf War recession and the Great Recession of 2008.  In the past five economic downturns, these two recessions marked the only times that home prices dropped. In 1991, they dropped 1.9%, and in 2008, there was a brief period of decline where the lowest drop was 19.7%. “Demand is very strong; they’re just waiting for more inventory to become available.” What does this mean you should do right now if you’re thinking of selling? First, consider getting a market analysis done for your home so you can stay updated with the latest information to make a wise decision. You should also prepare your home to get maximum exposure and attract buyers. It’s just as critical to work with a real estate team who can support you through all of that.  If you decide to work with Sherlin Realty, the process starts with scheduling a virtual consultation so we can meet with you, talk about your needs, and develop a customized market plan. Then we’ll set up a virtual staging appointment with our professional stager so they can give you any advice you need to prepare your home for sale. What’s more, we’ll provide a list of things you do (and do not) need to spend money on to get the most money for your home.  Technology has become a huge part of the process as well. We’ll leverage high-definition photography, virtual tours, and walk-throughs to put your home at the top of every real estate website out there. We’ll use all kinds of software to identify ideal buyers (and their Realtors) who are a good fit for your home.  The bottom line is that if you’re thinking of putting your house up for sale or want to be connected to what the market is doing, give me a call so we can schedule a consultation and start planning. If you have any other real estate questions, feel free to reach out to me as well. I’m happy to help.

Here are the latest numbers for our real estate market. What does this mean for you? Well, if you have been thinking of selling, now might be a golden moment. A severe lack of homes for sale means you could sell in record time, and since low mortgage rates are making homes more affordable, you could get top dollar for your home.  However, the dark clouds I mentioned above could change things quickly. We could see an influx of new homes for sale on the market, which would drive down prices and put us into a buyer’s market, with many homes sitting for months while buyers pick and choose among them. That’s why it makes sense to act now if you’ve been thinking of selling. If you’d like to get started, you can get an idea of what your home is currently worth with this home value calculator, which is based on recent Chattanooga / Cleveland sales: Enter your address here to find out what your home is currently worth. If you are ready to get the process rolling, give me a call at 423-896-6000. I’ve helped several sellers over the past month, and we’ve sold quickly and at top price.  “Act now if you’ve been thinking about selling.” If you have questions, give me a call and I will answer them, so you can make the best choice for your circumstances. I hope to hear from you soon. The real estate market is making up for lost time, but things might change soon. Here are a few reasons why: 1. A surge in sales and record prices. This spring, home sales slowed to a crawl due to the coronavirus pandemic. However, this summer, the market has come roaring back. Sales of existing homes surged 24.7% in July compared to June. That’s the biggest gain in sales since the National Association of Realtors started tracking these numbers in 1968.  Home prices are also rising. The median home price reached a record high this July, both in absolute terms and also when adjusted for inflation. When adjusted for inflation, current median home prices are 3.4% higher than the previous record set during the housing bubble in 2006. 2. Never-before-seen mortgage rates. One thing that’s contributing to both sales and price growth are record-low mortgage rates. The average 30-year mortgage rate dropped to 2.88% a few weeks ago. That’s a number that would have been unimaginable just a year ago, but these days, rates as low as 1.99% have been spotted in the wild. This is making homes more affordable to buyers, and it’s increasing demand even more than the lockdown may have. 3. Clouds on the horizon. This August, nearly a third of renters were unable to pay rent. Likewise, a growing number of homeowners are falling behind on mortgage payments. These are lingering effects of the economic lockdown surfacing now because unemployment benefits and various mortgage forbearance programs are coming to an end. That’s why experts predict a rise in defaults and evictions, which is likely to wash over the entire market in the coming weeks and months.

Buyers and sellers can win in our current market. It’s been a challenging time for many of us both professionally and personally. Markets have fluctuated due to uncertainty, and that includes our real estate market.  If you’re in the market to buy a home, there is a great opportunity to invest in a new property. However, fewer sellers are putting their homes on the market due to worries about the pandemic. This is creating a huge inventory shortage.  “These numbers show how strong of a seller’s market we have.” Our year-to-date sales are up a little over 19% from 2019. The average price per square foot is also up over 7% and our list-to-sale price ratio is up 12.3% as well. Days on market was down by 6.5% as well. Homes are selling faster and for more money. This shows how strong of a seller’s market we have. Inventory is down by 42% from last year, and there is a crunch in supply. You can really take advantage of this market whether you’re buying or selling a home.  We’ll keep you updated going forward, but if you have any questions about buying or selling now, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

These are the six buyer turnoffs every seller should know about and fix. Though your home may be beautiful, some things will immediately make a buyer dismiss it. I’m sharing six buyer turnoffs that sellers need to be aware of in today’s market: 1. Dampness or wet areas. Studies show that 70% of buyers are put off by these, so if there’s any dampness, whether in your basement or bathrooms, repair it right away. This could also be a health hazard to you while you live there.  2. Odors. 56% of buyers are turned off by any odor, whether it’s from pets, dampness, smoke, or something else.  3. Dull light or darkness. 54% of buyers polled said it’s difficult to view a house when it’s dark, so ensure all your fixtures have bright light bulbs, pull up the shades, and make every room bright before showings.  “Before you put your house on the market, walk through each room with a buyer’s eyes.” 4. Clutter. 15% of buyers say they are discouraged by any clutter in the home. Before you put your house on the market, walk through each room with a buyer’s eyes, and clean and declutter.  5. Outdated bathrooms. Bathrooms are some of the most important rooms in a home. Make any little updates or fixes wherever possible, whether that’s repairing the faucet, adding new light fixtures, etc. Do anything you can to make bathrooms feel brighter and updated.  6. Over-the-top decor. While home staging is crucial, don’t overdo it. When buyers are walking through the house, the more floor space and less clutter, the more appealing it is. Keep it simple and orderly.  If you have any questions about selling your property or know someone who may need our help, feel free to contact us via phone or email. We can set up a free consultation with no obligation. We look forward to hearing from you.

The real estate market is in a very unique position right now; social distancing restrictions are loosening, and we’re starting to see more open houses and home sales. Interest rates are at all-time lows, which gives buyers enormous purchasing power, but there are more buyers than there are homes for sale, causing demand to spike. However, the number of homes on the market is likely to increase soon. To learn more about the unique position our market is in right now, watch this short video above.

With the pandemic that has disrupted everything, there are now different options for selling your home. Buyers have the internet, more resources, and low interest rates, so they’re doing a ton of homework before buying a house. Home prices are increasing, and we don’t see that changing, despite the health crisis. One option you have is to sell to an iBuyer. To learn more about selling options amid COVID-19, watch the short video above.

How has the coronavirus pandemic affected our local real estate market? As everyone is adapting to this, the good news is that we are still able to do business virtually and safely. We can offer consultations, signings, and showings all over the internet. Sales are down about 19% from where they were last year, but inventory is down by almost that much as well. Home sales are only down 1.6% from last year, so that means people are still buying and selling homes right now. To learn more, watch this short video above.

Boosting curb appeal, repainting, and targeting the kitchen and bathrooms are the best things sellers can do to raise their home's value. Here’s why. Here are three things you can focus on to sell your home quicker and for more money:  1. Curb appeal. This can get you more money than just about anything else, because when buyers drive by the house, they’ll either be turned off, unimpressed, or enticed.  Exterior paint is relatively inexpensive, and adding a fresh coat of it is a great way to spruce things up. While you’re at it, add some fresh mulch to the lawn and garden and clear away dead, soggy leaves. Coming off the heels of winter, we may not have a lot of decent days to work with, but these outdoor projects are worth planning.  2. Fresh interior paint. Nothing impresses a buyer more than seeing a home’s interior coated in fresh paint. Again, it’s inexpensive, and eliminates the possibility of buyers getting hung up on marks or scratches.  “Inventory is low as we head into spring 2020, and we want to make sure you get top dollar for your home.” 3. Bathroom or kitchen renovations. Of course, these can be more expensive and extensive than an afternoon of painting, but these renovations are the ones that matter most to buyers.  You could start yourself by painting the cabinets, or you could hire a good local contractor. We have a list of trusted contractors we’d be happy to share with you if you reach out to us. Updating knobs on drawers and appliances and installing more modern light fixtures in both rooms can also go a long way.  Countertops are relatively inexpensive—you don’t always have to go with quartz or granite; laminate countertops can really freshen up a home and bring it out of the 1970s and ‘80s.  In our experience helping many sellers prepare for and complete a home sale, those three focus areas offer the best chances at raising your home’s value.   Inventory is low as we head into spring 2020, and we want to make sure you get top dollar for your home. If you have any questions on this topic or want to schedule a no-obligation walk-through of your home, reach out to us by phone or email. We look forward to hearing from you and helping you achieve your real estate goals.

There are plenty of loan programs available to homebuyers, even if their credit isn’t perfect. If you’re thinking of buying a home, there are several different loan programs available to homebuyers, depending on what you qualify for.  Conventional loans typically need more of a down payment, although there are some loan programs that offer 100% financing, such as the THDA, USDA, and VA loans. FHA loans, meanwhile, only require 3.5% down. If you have more cash to put down, there are conventional loan products you can opt for where you won’t have to pay private mortgage insurance.  A lot of people aren’t aware that you can also qualify for rehab loans, such as the FHA 203(k) rehab loan. These loans give you the money to fix up a house in the event that you want to buy a fixer-upper. You can qualify with a lower credit score, and they’ll give you the funds to repair the house. Afterward, you can convert your mortgage into a standard FHA loan.  “With all these programs available, your first step should be to get in touch with a local Realtor.” As far as credit score goes, some lenders are willing to go as low as 580, but you may pay a higher interest rate in that case. Speaking of lenders, it’s always a good idea to meet with a local mortgage broker. I know there are plenty of online brokers you can use, but sitting down with a local broker means they can physically show you what your payments will be.  Even if your credit isn’t where you want it to be, it doesn’t take a lot to get it restored. It all depends on what’s there and how long the process would take. We’ve never turned down anyone for a pre-approval, so if you contact us, we can outline a plan to repair your credit.  With all these programs available, your first step should be to get in touch with a local Realtor. They’ll point you in the direction of reputable lenders who’ll know what will suit your home buying needs.  If you have any questions about this topic, don’t hesitate to call or email Sherlin Realty. We’d love to help you.

As we enter the new year, I’ve got some numbers to show you and some predictions to make for our real estate market. Here’s what you need to know. I’ve got a quick real estate market update to share with you today, as well as some projections of what I believe we’ll see in 2020. Interest rates and inventory are still low, which is going to lead to another increase in home prices. We’re up a little over 5% from last year, which is a solid, healthy rate of appreciation. Overall, we expect our market to continue to be strong—maybe even a little stronger than 2019. A lot of people have been asking us about a potential recession or market correction. Since we finished with such a strong fourth quarter, however, most of the experts don’t think we’ll see any kind of recession this year. “Our market should be stronger than it was in 2019.” If you have any questions about the current state of our market, its future, or anything else related to real estate, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.

Here are five tips you must follow if you want to find and close on a great home for a great price in our tight market. Our market is tight right now for buyers, so if you’re considering buying a home soon, there are a few tips you need to remember to ensure you still get the best deal possible.  First, meet with your loan officer and discuss your budget. You don’t want to get caught out-bidding your own budget or buying something you’ll regret later on, so establish your budget and stick to it.  Second, distinguish between your “wants” and “needs” for both the home and the neighborhood. We all want to buy the perfect home that has everything we want and need, but remember that certain things (appliances, carpet, paint, etc.) can be changed, while other things—like which school district you live in—can’t.  “A good Realtor knows the home sale process in and out.” Next, always be ready. If you see something you like in a fast market, you know your budget, and you’ve separated your “wants” from your “needs,” have your agent ready to write an offer quickly. Buyers are moving quickly—I’ve seen houses go off the market a day after they’re listed. Also, make your offer contingent on doing a home inspection first so you can identify any issues you might’ve missed during your walk-through.  After that, make sure you bid competitively with fewer contingencies. Everyone wants to get a great deal, but making a lowball offer probably isn’t a good idea in our market. That being said, the bid with the highest dollar amount doesn’t always win. The contingencies included in your offer play a big role, too. There are different contingencies your agent can structure in your contract that can make it more attractive than offering a higher dollar amount. For example, you can waive your closing costs or lessen the days it will take you to perform your inspections.  Lastly, work with a good Realtor. This might seem obvious by now, but a good Realtor knows the home sale process in and out, and they’ll know how to make your offer look better than one written by someone who’s working by themselves or has a bad Realtor working for them. Make sure you interview and vet multiple Realtors before hiring one, and make sure the Realtor you do hire has extensive market knowledge. If you’d like to know more about buying in a tight market or you have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

How should buyers react to seeing “coming soon” listings? Today I’ll discuss. Advertising a home as “coming soon” is a great strategy that helps the seller get an early start on their marketing program. Most of the time, however, “coming soon” listings are not available for viewings until they’re fully active listings on the market. According to the National Association of Realtors, “coming soon” listings are not allowed to be shown by any agent, even the listing agent. Even still, a “coming soon” listing should have a date by which they’ll be open for showings and will usually have at least a few pictures of the home. So what should you do if you see a “coming soon” sign in front of your dream home? First, don’t get too excited and begin to mentally settle on that home in particular just yet. There will be an opportunity for you to view it eventually, and in the meantime, you can do research online. “Sellers often advertise their home as “coming soon” specifically to generate excitement for the property to enter the market.” If, while you’re waiting, you decide to pursue that home, know that you can make an early, sight-unseen offer on it. Confer with your Realtor about the best way to structure your offer so that you don’t get burned without any contingencies. If you’re serious about purchasing the home, you’ll definitely want to be able to view it and do a home inspection to make sure it fits your needs. In a fast market like this, we’re seeing more “coming soon” listings, but be careful not to jump the gun. Do all your due diligence before you make an offer, and be patient if the seller doesn’t respond to your offer right away. Often, sellers advertise their home as “coming soon” specifically to generate excitement for the property to enter the market; they’ll wait to see how the market reacts before they’ll accept an offer. If you’re in a buying mode and are ready to start looking at homes, visit our website to see a list of available properties, including “coming soon” properties and foreclosures. In the meantime, if you have any questions, don’t hesitate to reach out to me. I’d be happy to point you in the right direction.

We’re heading into fall, and whether you plan to buy or sell a home in our seasonal market, there are a few points you’ll want to know first. If you’re looking to sell this fall, you’ll be pleased to know that inventory is still low, but don’t let that keep you from staying on top of your home’s curb appeal. That means rounding up the leaves in your yard, maintaining your lawn’s appearance, and embracing the season by putting up your seasonal decor. Why not take advantage of all the pleasant aromas associated with fall? “All in all, a ton of homes are currently coming on the market and a ton of eager buyers are out searching for the one they want every day.” Conversely, if you’re looking to buy this season, you can benefit tremendously from our still-low interest rates and some newly introduced loan products. Make the most of our market by getting with your mortgage professional to explore your options.  All in all, a ton of homes are currently coming on the market and a ton of eager buyers are out searching for the one they want every day.  If you have any questions about the opportunities that await you in our fall market or about anything else real estate-related, please don’t hesitate to contact us. We’ll be happy to help!

Are you better off selling to an iBuyer or listing your home the traditional way? Let’s compare the pros and cons of each situation.  As a company or investor that buys a house sight unseen, iBuyers pay cash, don’t ask for any inspections, and offer a quick closing. Typically, they don’t pay the most amount of money for a house, but if you need fast cash or you need to sell a house quickly, they’re a viable option.  If you have more time to list your home the traditional way and target a higher sale price, you should consider listing with a broker (or trying the FSBO route). It may take longer due to all the potential showings, inspections, and other steps you have to go through, but the end goal is to gain more money. “Regardless of your situation, I always recommend contacting a local real estate professional to get a second opinion.” Regardless of your situation, I always recommend contacting a local real estate professional to get a second opinion on your best course of action. A simple sit-down won’t cost you anything and doesn’t require any obligations.  One last factor to consider is cost—always compare the cost of listing with a broker to selling to an iBuyer and make sure there are no hidden fees involved.  If you have any more questions about this topic or you’d like to list your home the traditional way and need a broker, don’t hesitate to give me a call. I’d love to help you. 

I’m here today to discuss closing costs and earnest money: What are they and how do they apply to you? These questions often come from new buyers in the market. Typically, the seller will pay the real estate commission for both agents. The closing costs for buyers include title fees, lender costs, escrow, insurance payments, and more.  “Earnest money can be used for your closing costs.” Earnest money is essentially good-faith money that shows the seller you are willing and ready to move forward with an offer. It’s a negotiable amount, but the more you put up, the better your offer looks. If you’re a first-time homebuyer and money is tight, know that your earnest money can be applied toward all of your other closing costs.  If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What is a contingent sale? Once a buyer makes an offer on a home, there are a few contingencies involved in the offer, including the home inspection, appraisal, and loan approval, among others. After the home inspection contingency is removed, you still have to wait for the appraisal to come back and be cleared for the final loan approval. While you’re waiting for these things to clear, the MLS (and other public real estate websites) will state that the home in question is contingent on the market, meaning the seller can’t take another offer in place of the contingent offer. If you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you. 

If you want to attract multiple offers to your property, there are a few simple tips you can employ. First, make sure your property looks great inside and out. Spruce up your curb appeal with strategic landscaping and by giving your home’s exterior a fresh coat of paint, and make sure your interior looks just as stunning by having your property professionally staged.  If you can’t afford professional staging or just aren’t interested in it, you should still declutter and depersonalize your home to the best of your ability. Your agent should be able to help offer tips on how to make your specific home look and feel its best before buyers step through the door.  “When buyers are excited about your property, they’ll be more keen to compete with one another to make sure they submit the winning offer.” Once your home looks up-to-par for the market, it’s time to get some professional photos. Most buyers begin their home search online, which means the photos you choose to represent your listing will be their first impression of your property. Make sure you make a good one.  Having a strong marketing plan in place will also play a major role in attracting multiple offers. You may even want to ask your agent about possibly advertising your home as a “coming soon” listing. By making buyers aware of your home before it hits the market, you’ll be able to generate interest ahead of time. When buyers are excited about your property, they’ll be more keen to compete with one another to make sure they submit the winning offer.  If you have any other questions or would like more information about making your home stand out in today’s market, feel free to give me or my team a call or send us an email. We look forward to hearing from you soon.

If you’re a buyer and you’re competing in a multiple-offer situation, here are four quick tips you need to remember if you want to write the strongest offer possible.  First, don’t ask for a lot of personal property or closing costs in the offer.  Next, try to get the best financing—make sure you have a pre-approval letter from a mortgage lender to go along with your offer.  After that, try minimizing your contingencies. If you need to sell your current home before you buy, structure your offer so that needing to wait for another house to sell sounds more appealing than it is.  Finally, have your agent put you in the best position possible! If you have any questions about multiple-offer situations or any other real estate-related topic, don’t hesitate to reach out to me. I’d love to help you.

What is happening in and around our local market?  As it stands, our current market is still leaning toward sellers, but we’re seeing a slight leveling off in favor of buyers. The average sale price for homes in our market is hovering in the mid-$200,000 range, but we’ve actually seen a 4.5% uptick in price year over year. “Depending on your price point and what your goals are, the time to make a move might be now.” While inventory has yet to come down for homes priced above $250,000, the amount of inventory we have below that $250,000 price range is pretty scarce and multiple-offer situations are increasingly the norm.  Additionally, with interest rates being so low, good deals are just waiting to be made. The bottom line is if you’re looking to buy, be careful not to assume that we’re in an all-around seller’s market. Depending on your price point and what your goals are, the time to make a move might be now.  If you have any questions related to real estate or you’d like to suggest a future video topic, please reach out to me. I look forward to hearing from you! 

While Zillow’s Zestimate tool can be a good starting place when it comes to determining home value, it’s important to realize that the figures you’ll find there tend to be massively skewed.  Zestimates use public information to assign properties with an approximate value, but this web-based value tool can’t account for certain key data, like whether any significant upgrades have been made.  It’s also worth noting that homeowners can adjust Zestimates themselves, so the information you see online may very well have been tampered with by the seller. “If you want to know your home’s true value, you must consult with an experienced, local real estate agent or appraiser.” Even in densely populated areas, where Zestimates tend to be most accurate, the values are still off by a wide margin. The CEO of Zillow himself had a Zestimate on his home that was 40% higher than what his property actually sold for.  Ultimately, the bottom line is this: If you want to know your home’s true value, you must consult with an experienced, local real estate agent or appraiser. If you have any other questions, would like more information, or want to discuss the true value of your home, feel free to give me a call or send me an email. I look forward to hearing from you soon.

It’s natural to for homebuyers to ask questions—a lot of questions, so today I’ll answer some of them to help you gain a little extra confidence as you move forward.  Q.     What is the difference between a bank and a mortgage broker?  A. Mortgage brokers might have loan programs that differ from those of a bank and some offer more attractive closing cost options than banks. Conversely, though, a bank might actually be more competitive than some mortgage brokers on both these fronts. It would be wise to check with your bank and any mortgage broker you’re thinking about dealing with for a free estimate of closing costs and interest rates. This way, you’ll be able to make an informed decision that’s best for you.  Q.     What do title companies do?  A. Your title company will cover all the paperwork from getting the deed transferred over to all the legal-related document prep to composing a settlement statement explaining the costs you’ll incur. On top of that, they’ll provide you with title insurance on the home; if the home was a foreclosure or estate, this shields the title and you, the homeowner, from any legal recourse if someone were to try to claim rights to the property. Title insurance protects your interests through the lifetime of your ownership of that property.  Q.         What types of loan programs are out there?      A. The core set of home loans consists of conventional, FHA, VA, THDA (specific to Tennessee), and a Rural Development program—all of which have varying requirements. For example, a conventional loan will require a larger down payment, whereas the VA, THDA, and the Rural Development are zero-down loan products. When you’re discussing this with your broker or bank, find out which you qualify for and which is most tailored to your situation.   “It would be wise to check with your bank and any mortgage broker you’re thinking about dealing with for a free estimate of closing costs and interest rates.” Q.     How do we know if the home we’re purchasing qualifies for the loan we’re approved for?  A. It’s important to be aware of the appraisal guidelines built into your loan. FHA and VA loan requirements tend to be a little more stringent with regard to what the home may need; you’ll be in the clear with smaller cosmetic fixes, but if the home is in need of major, structural repair, you won’t qualify for these 100% loan programs. In this event, your options will include a 20%-down conventional loan, a construction loan, or an FHA 203k loan.  Q.       Should I have an inspection done on the home?  A. As familiar as you may be with the electrical or plumbing makeup of a home, I always recommend that buyers have the property inspected. There’s only so much the naked eye will tell us about the functionality of a home. However, a home inspector will get down to the nitty gritty—they’ll crawl under the house, go into the attic, and check any and every plug. When it’s all said and done, the inspector’s report will be exhaustive, and they’ll make recommendations for findings that are outside their scope of expertise. In a few words, an inspection will be very worth it in the long run.  If you have questions about today’s topic or anything else real estate-related, please contact us by phone at 423-896-6000 or by email at Sales@SherlinTeam.com. We look forward to hearing from you!

If you want to maximize your home sale this spring, here are a few tips that will help you. First, boost your home’s curb appeal. When a potential buyer drives up to your home, you have only a matter of seconds to make a good first impression. If they don’t like what they see on the outside, they might not want to even step foot inside. This means you need to clean up the exterior, make sure the landscaping is in tip-top shape, and don’t be afraid to add a little color.  Second, do some painting. A little paint goes a long way in terms of making smaller spaces feel bigger. Think in terms of neutral colors—light grey, in particular, is very popular right now. Next, make any necessary renovations. Are your kitchen or bathrooms outdated? Is the floor covering worn out? You might need to make some renovations. In terms of the bigger projects, make sure you know what they’ll cost before diving right in. When it comes to the smaller upgrades, things like changing the hardware on the kitchen cabinets can make a big difference in making your home look newer.  “If they don’t like what they see on the outside, they might not want to even step foot inside.” After that, fix anything that’s broken. If a buyer walks through your house and sees something defective, they’ll be on the lookout for what else might be broken. These kinds of issues will show up during the home inspection anyway, so you might as well take care of them before the buyer asks you to repair them. You might even go so far as to order your own inspection, take care of any issues, and then advertise that your home is in as good of shape as it can be.  Also, make sure there aren’t any foul odors. A foul smell will definitely turn buyers off. However, don’t go overboard and set scented candles out everywhere—then buyers will think you have something to hide.  Lastly, open all the curtains and shades during showings and let in as much natural light as possible. During showings, you want your home to be bright and airy.  As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d be glad to help you.

One question that I get asked a lot is, “Should I use an online mortgage company or a local lender?” Today we’re going to look at the pros and cons of both options to give you a better idea. In today’s America, you can buy pretty much anything online. This applies to clothes, groceries, and even mortgages. It’s so easy to go online, put your information in, and have an online lender spit out a pre-approval. One distinct advantage of an online mortgage lender is that they tend to be much quicker and cheaper. They advertise low interest rates that are very appealing to buyers and they make the process very simple. However, not reading the fine print can be an issue. Another pro of an online lender is the ability to lend to buyers with lower credit scores. However, you should realize that a lower score usually comes with a higher rate. As far as the cons, there is a lot of fraud in online mortgage lending. Putting all of your personal financial information out there is risky, so be careful to read the fine print. “Local lenders operate a little differently.” Another con is that sometimes these lenders simply advertise low rates and low credit scores just to get your information and sell it back to someone else. Online mortgage brokers also sometimes ask you to pay a fee to pull credit upfront. Be wary of that, because most traditional mortgage brokers won’t ask for money up front. Local lenders operate a little differently. They might take a bit longer to get you pre-approved, but they will always be working to find the best solution for you. Instead of approving you with a low credit score, they might instead suggest some simple ways for you to raise your credit and get a better rate. A local lender, such as the ones we work with, is also great because they are constantly looking out for your best interest. They will make sure that you’re not making yourself vulnerable or paying any extra fees that you don’t have to. There’s much less risk involved, overall. Regardless of which you choose, there are pros and cons to using online and traditional mortgage brokers. The right decision really depends on your personal situation. If you have any questions, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

The 2018 market was full of ups and downs, and now that we’ve entered another new year, it’s time to review the current direction of real estate in our area. The year began with sky-high home prices, historically low mortgage rates, and a definitive upper hand for sellers. But, in recent months, things have changed. Home prices have faltered, rates are at the highest they’ve been in eight years, and the market has begun shifting in favor of buyers.  This doesn’t mean we’ll see a recession in 2019, but we are definitely in for a slowdown. Mortgage rates are projected to hit at least 5.5% by the end of this year. In other words, monthly mortgage payments for new buyers will be 8.8% higher this year than in 2018. Sellers, too, will be affected—the average appreciation rate is expected to slow to just 3%, despite increased inventory.  “2018 year began with sky-high home prices, historically low mortgage rates, and a definitive upper hand for sellers, but things have now changed.” But while the number of available new construction and resale homes will rise, especially in higher price points, the supply of foreclosure properties is set to diminish. The bottom line is that sellers will need an aggressive pricing and marketing strategy in order to succeed, while buyers will have greater leverage than in the recent past. In either case, having an experienced real estate team by your side will be key, and we would be happy to provide that service for you.   If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

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.

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.

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.

Today I want to talk about a few important things that new homeowners may not know they need to do. 1. Save for unexpected problems. You can’t stop the dishwasher from breaking, but you can set some cash aside to pay for unexpected replacements. 2. Form an inspection habit. Detecting problems early can be the difference between a simple fix and an unfortunate disaster. 3. Buy a bunch of furnace filters. Changing your furnace filter regularly is one of the easiest ways to save a bunch of money. You can order these in bulk on Amazon. “Fire and flood protection are usually not included in standard homeowners insurance policies.” 4. Get to know your appliances. Just like cars and TVs, the appliances in your home all have different life expectancies. For example, furnaces last 15 to 20 years. Knowing the age and condition of your appliances is important. 5. Take advantage of tax credits. Did you know that you can receive tax credits for things like solar panels and Energy Star appliances? Do some research early on and find the different tax credits that may apply to you. 6. Start keeping records of every improvement or repair you make. From adding caulk around the bathtub to installing a new roof, these updates will increase the resale value of your home. Make sure that your hard work pays off by keeping track of that from the start. 7. Beef up your insurance. Take a look at your homeowners insurance policy and look for relevant gaps. Two important areas of coverage to consider are flood protection and fire protection. Those are not usually included in standard policies. I hope you found this information helpful. If you have any other real estate questions, just give me a call or send me an email. I would be happy to help you!

Here are four home improvements that you need to consider making when it comes time to sell your home: 1. Ordinary updates. Things like replacing rotted wood, repairing leaks, and putting a fresh coat of paint on the house are cheap to do but will have a big impact. You can’t afford to overlook these things. 2. Remodeling your kitchen. Updating your kitchen is highly recommend for improving the value of your home. However, make sure you don’t go overboard and have enough money to finish the project. “More and more homebuyers are looking for energy efficiency.”  3. Improve your outdoor environment. A great outdoor space can make or break a sale. Consider updating your landscaping, building a nice sitting area, or even installing a deck. Each of these projects can make your yard more attractive to buyers and increase your home’s resale value.  4. Prioritize energy efficiency. More and more homebuyers today are looking for energy efficiency in your home. Consider making updates to your home that can lower energy costs. That includes adding insulation, purchasing replacement windows, or buying Energy Star appliances. These features not only appeal to prospective buyers, but they can also lower your utility bills while you’re in the home. If you have any questions for me about the topic we covered today or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What’s going on in the Chattanooga-Cleveland area real estate market?Currently, we are definitely in a seller’s market.That means if you’ve been thinking of selling your home, right now is the time to sell. The inventory of homes for sale is low, but a huge number of buyers are still looking to buy. Here at Sherlin Realty, we offer our sellers a 90-step guide to help you get your home ready to go on the market.We’ll also do a free walkthrough and give you tips on how to get top dollar for your home.What does being in a seller’s market mean for buyers? “If you’ve been thinking of selling your home, right now is the time to sell.” It means that you need to be prepared before you start your home search. How should buyers get prepared so they don’t miss out on that perfect home? Start by getting a good lender; we have a list of great lenders that can help you get to the closing table quickly. Being pre-approved is a must in today’s market, especially when submitting offers. Next, find an experienced agent who will help you negotiate to get the lowest price and the best terms on your home. If you have any questions, please feel free to reach out to me at any time. I hope to hear from you soon!