Jennifer Halinkowski

THE PERFECT STORM

September 22, 2008

Right now and for the next 2 to 3 weeks we will be in THE MOST PERFECT BUYERS MARKET IN OVER 20 YEARS. Why?

1) Interest rates are at nearly an all time low with rates between 5.5 and 5.75%.

2) Inventory is high.

3) Uncertainty in the economy and the upcoming presidential election are influencing some sellers to make quick and irrational decisions.

4) Winter and the holidays are right around the corner and sellers want to sell before then.

5) Sellers are more motivated than ever to sell because frankly they are "scared" at what is going to happen in the next few months.

What do all these things add up to?

THE PERFECT STORM

If you are in a position to buy real estate right now, DO IT! The bottom is here and this window won't be open for long.

Visit www.KnoxvilleReal-Estate.com to get started

Today's real estate market has changed and the media does a wonderful job of telling us how awful it is. However, if you remove states like Nevada, California, and Florida, the current market is really not that bad. In fact overall, we are experiencing the 3^rd best real estate market in history.

In Knoxville, TN and surrounding areas, the market is strong and healthy. The market currently has a large inventory with 13,373 houses and condos active on the market.

So what exactly does this mean to you? Well if you are thinking about buying a house in the Knoxville or surrounding area, this is great news. Interest rates are still low and you have higher inventory, means that you have a large selection of houses to choose from. Additionally, because Knoxville has experienced a nice healthy appreciation rate of 4-6% per year over the past several years (and with no sign of this changing) real estate is a great way place to invest your money.

So are you saying this is a bad time to sell? Absolutely not, however, because there is a high inventory of houses, you need to have a Realtor® that can make your house stand out from the rest and will actively pursue buyers. Houses selling in the Knoxville area are currently averaging 93 days on the market and the average closing date after contract is 30 days. Additionally, last month 931 houses expired (meaning their Realtor® did not sell them during the contract time period) Realtor® to sell your house is of EXTREME importance.

The Real Estate Market has changed and many Realtors® have not. In today, market, you need, and deserve, Realtors(R) that are up-to-date with technology and are able to think outside of the box. With Christine McInerney and Jennifer Halinkowski of Team McIn-Kowski of Southland GMAC we do just that, we have a research based marketing plan that is highly effective. If you are selling your house in the greater Knoxville area, contact Team McIn-Kowski today so we can tell you how to give your house an almost unfair advantage over other houses in the market place. Watch for our future blogs on effective marketing.

Team McIn-Kowski
Christine McInerney & Jennifer Halinkowski
Southland GMAC Real Estate
(865) 693-6961

www.homesforsaleknoxville.com

www.knoxvillereal-estate.com

First off, this is not another article about how terrible the real estate market is. The truth is, Knoxville's housing market is still healthy and strong. However, many homeowners are in a world of trouble due to the type of loan they took out to buy their home. These types of loans are called ARMs, Adjustable Rate Mortgages. Homebuyers were tempted to take out these loans because of their low introductory interest rates knowing that they could increase in a few years. Lenders told buyers not to worry because they could just refinance when the low rate was to expire. What nobody predicted was the major shake up in the mortgage industry recently that is making refinancing difficult. When these homeowners try to refinance, many find out that they can't due because of new loan restrictions or their credit score has dropped. Regardless, when their rate rises this can cause a jump in their mortgage payment to increase by hundreds of dollars that they simply can't afford and they must foreclose on their property.

This unfortunate scenario is forcing banks to have to reclaim thousands of properties which they now must get rid of at a loss. This is where the investor comes in - their loss is your gain. So how do you go about finding these properties? You could call up every bank in the phone book and try to get a hold of the department in charge of these properties - good luck with that. You could drive around for hours looking for properties that look like they are foreclosed and try to find the owners through tax records - time consuming, but it works. You could waste hundreds of dollars paying for lists of foreclosed properties that are usually outdated. Or you could simply call us - We are licensed real estate agents who spend countless of hours researching these properties, comps and neighborhoods looking for good deals for our investors. You pay nothing for this service, we get a small commission from the sellers and you, the investor, get a big check when you flip your property. Do we invest in properties too? Of course, but believe me, there are plenty to go around! Right now there are over 400 bank owned properties up for sale in the MLS from all over the Knoxville area.

Now, there are a few things to keep in mind and you must be willing to be diligent and committed to this process. The most important thing to know is THE GOOD DEALS GO FAST. When we call you up and say, we need to see this property NOW, we mean it! You also must realize that you often will be up against other investors bidding on the same property. Utilizing your research you must have a limit on how much you feel a property is worth and not get caught up in the "Ebay syndrome". You also must not be greedy - a profit is a profit. Banks definitely want to get rid of their properties as quickly as possible, but they will not give them away. And always remember that just like all investments, there is always some risk as no one can predict exactly what the real estate market will do in the future. With the proper research and help, you can minimize this risk significantly.

Visit our websites and contact us as soon as you're ready to get started. We will set you up to receive a free daily email with all new foreclosed properties as soon as they come on the market. We love looking for good investment properties and love being a part of a success story! We look forward to helping you.

www.knoxvillereal-estate.com
www.homesforsaleknoxville.com

Team McIn-Kowski
Jennifer Halinkowski and Christine McInerney
Southland GMAC Real Estate
244 N. Peters Rd.
Knoxville, TN 37923
865-693-6961
jennifer@knoxvillereal-estate.com
christine@homesforsaleknoxville.com