Many people these days are thinking about buying a home in Knoxville TN, and that’s great. Knoxville TN is a very attractive place to live, so it’s no wonder that people are considering buying a home here. However, purchasing a home sometimes isn’t the easiest of tasks. It’s certainly not at all like running to the corner store and picking up a gallon of milk.

Purchasing a home in Knoxville TN can sometimes take some preparation, and you may need to know a few things before purchasing a home. Here are some top tips for buying a home in Knoxville TN.

First, hire a professional. These days the Internet provides access to an almost unlimited number of home listings. However, it’s still better for many first time and even more experienced homebuyers to get the help of a professional when purchasing a home. You want to contact a real estate agent who is very knowledgeable about the Knoxville TN real estate market. Such an agent should work exclusively for you and have your best interests at heart. A professional and knowledgeable agent can help to answer all of your questions about the home buying process. An agent can also help you during the bidding process.

Another great tip for selecting a home in the Knoxville TN real estate market is to take your time and think carefully when thinking about the difference between points and interest rates. Oftentimes, a lender will give you the option to pay additional points in exchange for a lower interest rate. Usually the points are a part of the interest that is paid at closing. Paying points is a good idea if you plan to stay in the home for a long time, typically three to five years. That’s because over the long haul, a lower interest rate will save you a lot of money.

Furthermore, you may want to seriously consider getting pre-approved for a loan before you go house hunting. This can save you the frustration of looking at homes that you may not be able to afford. Also, when you finally find the right home, you will be in a much better position to make an offer to purchase a home in Knoxville TN.

One last big tip when shopping for a home in Knoxville TN is to make sure you begin your shopping by keeping in mind the type of home you really can afford. In general, it’s a good rule to purchase a home that is about two and a half times your annual salary.

5 Steps to Becoming a Homeowner

Out of all of these tips, one of the most important by far is to make sure you contact a real estate agent for all of your housing needs. You could try to search the web for listings yourself, but without the support of a licensed agent, you’ll be at a great disadvantage. Your perfect dream home in Knoxville TN is waiting for you. For more information about the Knoxville TN real estate market please visit the Knoxville TN real estate website at www.LivingInKnoxvilleTN.com. You can contact me with any of your real estate or mortgage related questions. Call me on my cell at 865-310-0636 or Toll-Free at the office 1-800-747-0713.

David Hamilton
FERGUSON REALTORS
865-690-1300 Office

A home inspection is one of the first investments a buyer makes in a property. The purpose of a home inspection is to check out the house for potential problems before the buyer purchases the home. Many Knoxville real estate purchase offers contain a home inspection contingency clause.

A typical home inspection can last up to three hours. The home inspector makes a thorough examination of the accessible areas and systems of the property. The fee for a home inspection in the Knoxville TN area covers a standard list of items. If additional tests are requested or required, an extra charge may apply. A radon test is an example of an additional test.

A home inspector will take you through the home step-by-step, pointing out potential and necessary repairs. This information can be invaluable when negotiating the purchase price of the home. The inspection also gives the buyer a fantastic opportunity to become familiar with the details of the systems of the home.

The standard systems of the home to be inspected include the structure, electric, heating/air conditioning, and plumbing systems.

The framing and foundation of the home is considered the structure. The heating and air conditioning system will be tested during the inspection. The vent systems will also be examined.

The plumbing system will be tested including all fixtures and faucets. Drains and plumbing vent systems will be inspected. If the home has a sump pump, it too will be tested.

In addition to the standard systems, the home inspector will inspect all accessible areas of the home including the exterior, interior and basement of the home.

The exterior inspection includes the roof, foundation, doors, decks, balconies, porches, and any walk-ways or driveways leading toward the entrance of the home.

The interior inspection includes walls, ceilings, floors, stairways and railings, basement, doors and windows. Additionally, the home inspector will test major kitchen appliances such as the oven, stove, and microwave oven.

After the inspection you will receive a comprehensive report and supplemental material. This educational material is often in the form of a book or electronic document. The report will list any issues uncovered during the inspection.

Ferguson Realtors recommends hiring a professional home inspector. Contact David Hamilton by email or cell at 865-310-0636 for a list of home inspection companies in Knoxville TN. This article is a brief overview of the benefits of a home inspection. For more information about what to expect during a home inspection please feel free to contact me.

Free information about buying, selling or investing in Knoxville real estate is available. Visit the most complete website online dedicated to everything Knoxville real estate at www.LivingInKnoxvilleTN.com. Complete information about the Knoxville real estate market including current homes for sale in Knoxville, property values and much more is just a click away. Please feel free to contact me with any of your real estate or mortgage related questions.

There are many different types of mortgage loans available to today’s Knoxville TN homes buyer. A buydown mortgage may be the key to affording your dream home.

Permanent and temporary buydown mortgages are financial tools used by lending institutions to reduce the interest rate on a mortgage loan. With this type of financing extra points (sometimes called discount points) are paid upfront at closing. In simple terms, a point is equal to one percent of the principal loan amount total. A buydown is an upfront payment. The purpose of this payment is to enable the financial institution to lower the monthly payments. A buydown is sometimes used as a tool to enable the buyer to qualify for a mortgage.

Buydown mortgages have many benefits.

Temporary buydown mortgages appeal to the home buyer who has prospects for a substantial income increase in the next few years. For example a spouse may currently be in school, but upon graduation will have excellent employment prospects. A temporary buydown mortgage allows the buyer to make lower monthly payments during the first few years of the loan. During these years the interest rate is lower than the actual mortgage loan rate. This results in lower monthly payments early on in the life of the loan. Buyers with lower monthly incomes can qualify for larger loans with this strategy. In general, a buydown mortgage allows the buyer to own more house for the money. In some cases it is the best way to qualify for any loan because of the lower interest rate.

A permanent buydown mortgage reduces the interest rate of the mortgage for the entire life of the loan. This reduction of the interest rate will cost the buyer several points at closing. More information about buydown mortgages is available at www.davidhamilton.com.

There are many financing options available to home buyers in the Knoxville TN Homes area. Contact David Hamilton to get advice for your specific mortgage needs.

Free information about buying, selling or investing in Knoxville real estate is available. Have questions? Feel free to call me with your real estate or mortgage related questions at 865-690-1300 or by cell at 865-310-0636. Complete information about the Knoxville real estate market including current Knoxville TN homes for sale, property values and more is available online at www.davidhamilton.com.

David Hamilton
Ferguson Realtors
865-690-1300 Office

Time is set to expire on the $8,000 first time home buyer tax credit soon. Find out more NOW at the Knoxville TN houses website.

David Hamilton
Ferguson Realtors
865-310-0636 Cell
865-690-1300 Office

If you’re considering purchasing a house in Knoxville TN, there are several home buying mistakes you should be aware of, so you can be sure you can avoid these mistakes. These mistakes are common and cost home buyers thousands upon thousands of dollars every year. These mistakes are buying too much house, not having padding for hidden costs and not getting the house inspected.

Mistake #1 – Buying Too Much House

This is by far the most common real estate buying mistake. Most people believe that lenders will only approve you for as much house as you can afford. For example, they may pre approve you for up to $2500,000. That does not mean you should buy a $250,000 house!

Instead, it’s important to calculate how much you can really afford. Make this calculation both based on the down payment and the monthly payments. Be conservative with these numbers.

Mistake #2 – Not Accounting for Hidden Costs

Closing costs, inspection costs, repairs and last minute costs tend to always surprise first-time buyers. Buyers who go into a real estate transaction with only enough money for a down payment often run into the problem of not having funds for last minute costs.

To save yourself the stress, put away a little extra cash and improve your home buying experience. It’s important to have some spare padding cash to help ensure the home buying process goes smoothly.

Mistake #3 – Not Having the Home Inspected

Having the home you’re buying inspected is absolutely crucial. Although this may seem like common sense, thousands of lawsuits are filed every year over property issues discovered after the purchase that could have been found if the buyer had just gotten an inspection.

The few hundred dollars an inspection costs are well worth the money. On top of the inspection report, you also get to ask the inspector any questions you need about the plumbing, electrical systems and foundations, so that you can really get peace of mind with your purchase.

There is a lot of free information available to first time home buyers about buying Knoxville Tn houses by visiting the Knoxville Homes website @ www.davidhamilton.com.

David Hamilton
Ferguson Realtors
865-310-0636 Cell
865-690-1300 Office

The closing process is the last step to purchasing or selling Knoxville real estate. The process can often be intimidating because of how much legal paperwork there is involved. In this article I’ll walk you through the process so that the closing process will go much smoother for you.

1. Homeowner’s Insurance
Insurance is always necessary to get the mortgage. Remember to get homeowner’s insurance and bring proof to the closing.

2. Gather All Your Paperwork
Make sure you have all your paperwork in place the day before closing. Review all your paperwork to make sure that everything is in order.

3. Have Your Inspections Completed
Have the property inspections completed when you come to escrow. If there are any repairs that are necessary, make sure they’re in writing.

4. Have Title Insurance
It’s important to get title insurance for your home purchase. Title insurance insures that the title on your property is clean.

5. Get Approval of Mortgage
At this point, your mortgage should be approved so that you can get your loan to pay for your new property.

6. Bring Your Cashier’s Check
The amount necessary for closing the on your new home should always be in the form of a cashier’s check.

7. Clear All Contingencies
At this point, all contingencies and clauses should be cleared so that you can go ahead with the transfer of the deed.

8. Understand Your Closing Costs
Before closing, it’s important to have a good idea of what your closing costs are. It’s also important to know who will pay the closing costs. Unless otherwise stated, usually the buyer pays the bulk of closing costs.

Following these tips should make the whole closing process go much smoother for you. Remember to talk to your real estate agent and your loan officer about the closing process, as they’ve both been through the process many times.

More information about the Knoxville home market is available by visiting the Knoxville Real Estate website.

David Hamilton
Ferguson Realtors
865-690-1300 Office
865-310-0636 Cellular

Buying a house in Knoxville TN for the first time can be very exciting. It can also be very tempting to want to jump right into looking at houses and making offers. However, it’s important that you do your homework first. When searching Knoxville TN houses for sale, there are several steps you should take before making an offer.

1. Improve Your Credit Rating. If you’re thinking about buying a house in Knoxville TN, now is the time to start working on your credit. There’s very little you can do a few weeks before closing. However, if you get started six months before you make an offer, you can very likely improve your credit and reduce your interest rate when it comes time to qualify for a loan.

2. Find a Good Buyers Agent. Working with a buyers agent generally doesn’t cost you anything, because the seller usually pays all the commissions when you purchase a home that is listed in the Knoxville MLS, however, there can be exceptions such as a FSBO seller.

Working with a real estate agent gives you a huge advantage. You get access to years of real estate knowledge and experience, plus you have a trained professional to negotiate on your behalf. You have someone with a wide variety of contacts, from lenders to property inspectors you can call on.

3. Get Pre-Approval for a Loan. By getting pre-approved for a loan you will know just how much of a house you can really afford. It’s important to figure out how much you can really afford and work from there. Once you have a pre-approval letter, sellers are much more likely to seriously consider your offer to purchase.

A buyer who’s worked on his credit, is working with a real estate professional and has a pre-approval letter has a far better start on buying a house than a buyer who doesn’t. Follow these three steps and you’ll be well on your way to living in a great new house in Knoxville TN!

The $8,000 first time home buyer tax credit posted in a previous article, is set to expire November 30th of this year. For more information about living in Knoxville TN including current houses for sale, visit the Knoxville TN houses website @ www.davidhamilton.com.

David Hamilton
Ferguson Realtors
865-310-0636 Cell
865-690-1300 Office

Once you’ve found a home in Knoxville you’re interested in purchasing, the next step is putting an offer on the table. How do you determine that right price for a home in Knoxville? In this article, I’ll show you what you should consider when you’re picking a number for your offer.

• Understand the Conditions in the Knoxville Home Market Area. The first step is to consider what the market conditions are. Real estate conditions in Knoxville have had both upswings and downswings in the last several years. Is it a buyer’s market right now, or a seller’s market? Is a house likely to sit on the market for weeks, or is it likely to receive multiple offers? Look into what other similar houses in the Knoxville TN area are selling for, both currently and in the last few months. This will give you a good baseline value to base your offer on.

• Understand Your Seller’s Mindset. The goal of making an offer isn’t to offer market price. The goal of your offer is to make an offer that’s as low as possible that will be accepted by the seller.In order to achieve this, it’s important to understand the mindset of the seller.
  One thing to look into might be how long the house has been listed on the market. If it’s been listed for several months already, the seller may be more likely to accept a lower price.Another thing to look into is how much the seller paid for the property. Although this doesn’t affect its current value, it has an impact on the seller’s mentality. If the seller is already making a profit no matter how much they sell it for, they’re likely to be more lenient. If they’re losing big money by selling right now, they may be more likely to pinch pennies.

• It’s Not Just the Numbers. Your offer must be considered in its entirety. The clauses and contingencies have a big impact on whether or not your offer will be accepted. Work with your real estate agent to craft the best offer possible.

More information about the Knoxville home market area is available by visiting the Knoxville homes website @ www.davidhamilton.com. Feel free to contact me with any of your real estate related questions and I will be more than glad to answer your questions.

David Hamilton
Ferguson Realtors
865-310-0636 Cell
865-690-1300 Office
800-747-0713 Toll-Free

How can you get the most out of your home inspection when shopping for Knoxville real estate? After reading this article, you’ll know how to make your home inspection an educational process.

The most important thing to do is to ask a lot of questions during the home inspection process. Remember that you’re working with a professional home inspection company who you’re paying. It’s both your right and your job as the client to get the most out of the experience by asking questions and learning as much as you can about the house.

Here are some of the key questions you should ask during a home inspection:

• Safety. Are there any safety concerns with the house you should know about?

• Plumbing. How long is the plumbing likely to last? Is there any evidence of previous plumbing problems?

• Code violations. Are there any code violations you should be aware of?

• Heating. How old is the heating system? Should you be concerned about having to replace the heating system in the next few years? If the system is old, are there any fire safety concerns you should be aware of with the system?

• Foundations. How does the foundation look? Are there any red flags you should be aware of? Keep in mind that although the inspector can give you an educated guess with the foundations, they usually can’t give definite answers about the foundations.

It goes without saying that if you’re putting in a purchase offer, it’s important that you either get the inspection done beforehand or that you include an inspection clause in your contract. The last thing you want is to make an offer only to find out later that there’s a problem.

There is a lot of free information available to you about buying, selling or investing in Knoxville real estate. David Hamilton may be reached by cell at 865-310-0636 or by visiting the Knoxville real estate website @ www.davidhamilton.com.

David Hamilton
Ferguson Realtors
865-690-1300 Office
800-747-0713 Toll-Free

Buying foreclosure properties is getting more popular and more profitable every day. There are dozens of foreclosed properties hitting the Knoxville market every week. The reality is, however, that foreclosure properties can be both gold mines and land mines. In this article, we’ll go over several simple tips to help ensure that your first foreclosure purchase is a successful one.

Search for Low-Repair houses for Your First Deal. We’ve all heard about people who make thousands of dollars buying foreclosures and fixing them up. Doing such a deal requires a high degree of expertise.

Do you know how to fix a worn-out roof? Can you estimate how much it would cost to replace the HVAC system? Can you estimate how much the repairs will cost and compare it to your selling price in the end?

Although you can make a lot of money doing fixer houses, you can also make a lot of money by buying foreclosed properties; making cosmetic repairs and selling them again. For your first foreclosure deal, try and look for houses in Knoxville that don’t require much work so you can get some experience under your belt.

Research the Knoxville Homes Market. There are generally three reasons to buy a foreclosure property:

1. To rent it out
2. To sell it
3. To live in it.

If you’re buying to repair and rent out or sell, then market research is absolutely essential.

If you’re buying to rent, it’s important to know what other properties in the area are renting for. It’s also important to know what the vacancy rates are. Based on these numbers, you can accurately predict what your cash flow will be like.

If you’re buying to sell, it’s important to know what you can expect to sell your property for once your repairs are completed.

You should know these numbers before you make your purchase. Remember, with real estate investments, the profit you expect to make on the deal is made on the buy end, not the sell end. You must know how much your property is worth or how much you can rent it out for before you can make a profitable investment decision.

These tips will help you avoid some of the biggest pitfalls beginning investors tend to fall into with their first investment properties. Foreclosures in Knoxville can be a very lucrative business, but it also has its dangers.

A complete list of Knoxville foreclosure homes is available to you by visiting the Knoxville Foreclosures website.

David Hamilton
Ferguson Realtors
8085 Kingston Pike
Knoxville TN 37919
865-310-0636 Cell
865-690-1300 Office
800-747-0713 Toll-Free