As we discussed last month, the market is shifting to a buyers market. While we are not completely there, you are going to see property for some time priced and presented all over the place! Keep a steady course, keep your head, and do your homework. Remember – write your top goals in purchasing real estate and stick to it!
Don’t be afraid to negotiate but also realize that sellers are not in a happy mood and may not respond very well. Low ball offers are not appropriate right now unless you “just know” that the issues with a property are large and looming and are going to be discovered. We are entering a season where if you are patient, you may be able to get a good buy. This is the first time in many months that is possible. We have just come out of a market where “getting a buy” was the win.
Do your due diligence with your lender. Lending is shifting. New products are being presented so make sure you shop around and consider loan options that might be creative. Particularly we have investors considering a loan program called ARMS that mature in 5 and 7 years. This will give you time enough to pay it down, pay it off, flip it or refinance. Don’t wait around for lending to “rebound.” It’s likely not going to go back down. Let your lender guide you. Seek their advice. Ask them, “What would you do if you were me?”
The big question many buyers are asking now is, “should I wait a year or two?” I don’t see the Smoky Mountain Market dropping in value quickly or drastically. The reason for that is we are in the top 5 places in the nation that you can invest in overnight rentals for the highest return. We have investors from all over the world looking to place their investment dollars. You and I are competing with them for property, so values are not going to plummet. The other reason for this strength is that the overnight rental revenues actually increased during Covid and we also never dropped off in overnight stays and rates during the last downturn! That is a combination that will keep us above national declines in value.
As far as relocation goes, the same holds true. We have a conservative, fairly inexpensive cost-of-living when compared to the US on the whole, and a sweet atmosphere that attracts retirement buyers when they consider relocating that makes Tennessee come up as a strong preference for them. Many retirees are buying with cash, and even before the housing surge were willing to pay more for the right property. So as a buyer don’t be waiting for a deep drop in values in order to buy. I don’t think that is coming anytime soon (with the exception of distressed and problematic properties).
However, if you are a “handyman or handygirl” that might just be your ticket to create value as these properties are going to struggle to sell in the environment coming. Don’t hesitate to put a low offer with explanation on one of these. Above all else, don’t lose hope! There is always a “win” in real estate and there is always a way to create value in your choice of home! Remember, we are here for you so don’t hesitate to call for counsel!
