Ouch, What a Week it Has Already Been...

During only 3 days so far this week, I have run the gamut of challenges. Starting with the foreclosure of a good friend's personal residence in Gatlinburg that I have been assigned to by the foreclosing bank to be the listing agent of. My friend is a fellow real estate agent in the Gatlinburg area and the foreclosure process has been working for some time. On Monday however, I received a call from my favorite Sevier County Sheriff's deputy telling me that he was going to have to evict this very kind person because the court delays were finished. Not a great way to start the week...

On Tuesday, I viewed a Gatlinburg condo which Fannie Mae has just completed a foreclosure on. Interestingly enough, the buyers had purchased two adjoining units separately, with different lenders, and then taken out a portion of the fireproof dividing wall combining the two units into one super condo unit, twice the size of anything else in the development. They then proceeded to completely gut the two units and redesign them to create one very large unit. All of this would have been fine (if a little mis-guided value-wise) if it weren't for the fact that there are still two unrelated loans with two banks and the foreclosure that has been completed is only for one of the loans. That's right, Fannie Mae has one half of a condo unit to sell and some other institution will no doubt at some point have the other half. Like conjoined twins, these units will have to be surgically separated and that will be a real challenge because they share some crucial "organs" such as the single electrical panel in "my" unit# 303 that serves all of the electrical circuits in both units. Additionally, while unit 303 does have the only kitchen between the two, it doesn't have a single bathtub or shower enclosure as that space was converted into a laundry area with washer/dryer connections. While washer/dryer connections are a good thing, gaining them at the expense of your only shower/bath space doesn't seem like a very wise proposition...

If the above two days weren't enough, yesterday a rotting deck board on a Pigeon Forge cabin gave way under me and I went crashing through toward the ground some 25 feet below! Fortunately, my knee stopped my fall (OUCH!!) as it is a little larger than the hole in the board that I was falling through. Not only did I escape with my life, but my new Apple MacBook Air laptop didn't even hit the ground so it too survived unscathed. I on the other hand am somewhat scathed but nothing that some bandages and a little disinfectant won't hopefully cure. There is a fantastic view from this upcoming listing and you will want to see it just as soon as we get those bad deck boards replaced...

Not sure what today in Gatlinburg area real estate holds but I guess we will just have to wait and see...

January 2012 Residential Sales Results

As many of you know, I was out of state last week attending a business conference in Fort Worth, Texas. Now that I'm back at work, it's time to report the tally for January's residential sales in our Gatlinburg area real estate market. During last month, local real estate agents combined for the sale of 109 homes, condos, and mobile homes. As usual, this tally does not include land or commercial sales nor are any lease type transactions included in this total.

The 109 transactions for January 2012 is slightly ahead of the 106 sales recorded last year and we probably will see a few more posted as everyone get's January's business finalized. Although the 109 sales is just ahead of last year's number, it is a positive comparison and tends to add to the argument that our market is improving, albeit slowly. For those of you who are visually oriented, you can view the table below or click on it to download a clearer version:

It's That Time of Year Again, Time with The Smartest People I Know!

Each year, I join a group of about 100 of the most tech savvy, top producing real estate agents in the entire world, the CyberStars. Allen Hainge created this group over 10 years ago to further the use of technology among real estate agents and the group has grown since then. At no other conference I attend will every participant have a laptop or tablet open and most of these people are top producers in the industry as well. Every year, we share ideas about how to serve our clients better and more efficiently. We discuss marketing, management, cost controls, legal and ethics issues and much more. My staff worries that I will come home to Gatlinburg and want to change everything that we are doing in our real estate practice because of what I have learned at this 3 day conference. Fortunately for them, I already like most of what we are doing so I don't anticipate many changes. With over 100 sales personally in 2011, we must be doing something right...

Options Are Only Optional the First Time You Choose Them

I recently purchased a truck to replace my trusty vehicle that I have enjoyed since buying it new 10 years ago. With VERY few problems and a lot of miles racked up, I decided it was time to trade. In sizing up my options, I ended up with a replacement that I am quite happy with. Funny thing is that I have become quite spoiled. I considered another version of the same vehicle but because that particular truck didn't have a leather interior or heated seats, I decided it just wouldn't work.

The fact is that once you have an option, it is very hard to purchase your next vehicle without the same option or accessory. My reason for writing this here is that the same thing is true for homes. Once you are used to certain features, it is VERY unusual to settle for a home without the same options/amenities. People who vacation here expect their getaway home to be at LEAST as nice as the home they live in when they aren't on vacation. For this reason, people considering the purchase of a vacation rental property here should carefully consider what the second home already has and what can with a reasonable expense be added. The following options are now pretty well requirements to have a successful Smoky Mountain vacation rental:

• Mountain view
• Hot tub on the deck
• Jetted tub indoors
• Pool table
• Video games
• Wi-Fi internet access

 While a Gatlinburg area rental property doesn't HAVE to have ALL of these amenities, it will rent best if it does. Failing to have any of these features will make the property a less attractive option and the rental market here is SO competitive. Let me know if I have missed any options that you look for when considering a vacation rental here in the Smokies...

December Gatlinburg Area Real Estate Sales are Lackluster

After a phenomenal November, December's residential real estate sales count as recorded by the Great Smoky Mountain Association of Realtors was a little disappointing. Although I was hoping for a second consecutive positive monthly unit sales tally, (and maybe the beginning of a trend), December just didn't meet my loft expectations. Here is the latest (but not as promptly created as usual) table:

Go figure! After the best month in more than 4 years we have the worst December since 2008. This business could make a fellow lose his hair...

Gatlinburg Area Real Estate Prices Continue to Trend Lower

Although our Smoky Mountain real estate market showed great volume in November, prices haven't yet risen. In fact, in November, we actually had the lowest average sales price in recent memory for our Gatlinburg area according to our Great Smoky Mountain Association of Realtors MLS database. The new low wasn't dramatic, as it was just below the average sales price that we saw in April of 2011. If December's sales volume is good, we will have four of the last six months showing positive comparisons to the values from a year ago. That is particularly noteworthy when you consider that during the first half of the year, five of the six months were in negative territory. Hopefully the improvement in volume will lead to higher prices but it hasn't started just yet. Here is a chart of the average sales prices for residential sales in our Gatlinburg area real estate market:

No bell will sound indicating that our Gatlinburg area real estate bear market has become more bullish. In fact, the only way you will recognize it is after the price rise has begun. If you want to capitalize on the excellent prices and loan rates that are currently available, please contact us!

Sometimes, Nature Strikes Back...

For many years here in the Gatlinburg and Pigeon Forge areas, as well as the rest of Sevier County, real estate developers have carved a tremendous number of cabins ever deeper into the forests around these communities. Recently, I have witnessed the revenge that the wild side of Sevier County has exacted upon some of these developments. Bears in downtown Sevierville, trees crashing through roofs, and then the more subtle but potentially even more destructive attack of the insects...

Boring bees, termites, and other insects are a part of God's recycling plan that takes dead trees and converts them into mulch for the forest. Unfortunately, the rather unintelligent insects sometimes confuse purpose built structures (made from dead trees) with every day ordinary dead trees and the results can be disastrous. Consider the foreclosure home in Wears Valley we were just assigned that I viewed for the first time today:

Sadly, the exterior of this Sevierville (actually Wears Valley) cabin is covered with this damage which is caused by a boring bee or a similar insect. After the bee bores a perfectly round hole about a half inch in diameter it lays its eggs deep within the tunnel it has chewed out. The larvae hatch and eat their way back out but woodpeckers and other birds find the bugs tasty so they peck the wood apart to find their lunch. When a house is this severely damaged, it can be very expensive to repair as the wood siding or logs will have to be patched or replaced. The key to preventing this sort of damage is to keep the exterior of a log or log look home stained. The stain, if it is a good grade, will discourage the boring insects from attacking the wood. Unfortunately, a house that has a lot of exposure to the sun or that stays damp due to surrounding tree coverage will need to be re-stained about every 3-5 years, even if you are using Sikkens or another top grade brand. If you are using a "bargain" stain, plan on re-staining more often.

And the Foreclosures & Short Sales Keep Rolling On...

Yesterday, I was asked by a reader of this Gatlinburg real estate blog how many of our Gatlinburg area's November residential sales were foreclosures or short sales. The answer is far, far too many, unfortunately. Out of 158 residential sales (the most in any single month since 2007!!) that were completed during the month by the members of our local board, the Great Smoky Mountain Association of Realtors, 60 were marked as foreclosures while another 15 sales were flagged as short sales.

On the other hand, we have to get these distressed properties sold before prices can make any real positive headway. Because banks are still adding a good number of new foreclosures to the market (we have been assigned several new properties this month), the supply tends to remain fairly constant. In fact, we have some very attractive properties coming to market soon, so watch this Gatlinburg real estate blog and our GatlinburgHomes.com website for all of the area's newest listings as they become available.

November Sales Best in over FOUR YEARS!!

November was an even better month than we thought! With all of the dust now settled, members of the Great Smoky Mountain Association of Realtors combined for a very impressive 158 residential unit sales during November. To provide a little perspective, you have to go all the way back to October 2007 to find any month in which more homes were sold here in the Gatlinburg area. Here is the chart that I have maintained since way back in 2005:

As I've said for a long time, you have to have an increase in volume before prices will improve. While one month does not a trend make, this is VERY encouraging for our Gatlinburg area real estate market!! There won't be a headline in the paper that says, the real estate market is currently bottoming and prices appear set to increase. Likewise, we won't know until after mortgage loan rates start back up that we missed the bottom. If you have been considering making a purchase of Sevier County real estate, it looks like we are approaching the best time to make that move... 

November Sales Are UP!!

With a lot going on in my personal life, it has been a challenge to keep this blog current. Sadly, this is a challenge that I have failed at - Actually, embarrassingly so. However, now that I have moved into my new residence and most of the boxes are unpacked, it's time to get back to normal...

November's residential sales for our Gatlinburg area market were significantly better than those from a year ago. While still preliminary, we are already 5% above the final total from November 2010 and that is good news. I expect that residential sales as reported by our Great Smoky Mountain Association of Realtors will eventually top out at around 150 but the flash value of 139 still shows promise.  For you who are graphically oriented, here is the latest table:

Look for more good news coming soon as the market does appear to be improving again. If you are looking for a great bargain on one of the Gatlinburg area homes that are being offered for sale, please contact us! If you have a home or other real estate to sell, we can probably help there too but it's still a very trying market for sellers.

Sorry, I've Been Away...

Something I've almost NEVER done before is go a full month without a single post to this blog. Unfortunately, that has happened and were it not for today's post I wouldn't have filed a single message in October which sadly is nearly over now. I do have some pretty good excuses that I won't go into but the good news is that the clouds are clearing and I expect to be living a more nearly normal life very soon.

Even though I didn't write about it at the time, lots of things have been happening with Gatlinburg area real estate. September turned out to be a very good month for the members of the Great Smoky Mountain Association of Realtors, far surpassing my expectations for the month.  In fact, 149 residential units were reported sold by the MLS, the best number by far for all of 2011. During September, the average sales price reported was $151,362 which did not set a new low. That statistic wasn't however much above the many year low average sale price which was set in the month of April 2011 at a paltry $150,779. The following chart may illustrate some insights I have regarding our Gatlinburg area real estate market:

Although October isn't quite over, it appears that the average sale price for the month will be in the $154,000 - $155,000 range so maybe prices are finally making a bottom. Stay tuned, I'm back at work!

"High Hopes" Really Satisfies!

Every once in a while we list a property that just "does it" and this Gatlinburg cabin we recently listed certainly qualifies! With a great (but quiet) Gatlinburg location just outside of the "Zoo" but only 5 minutes away from the center of town, "High Hopes 2" is an excellent getaway cabin for couples or small families. From the huge romantic jetted tub to the high ceilings, this vacation home will appeal to everyone. If the wonderfully convenient location isn't enough, the view will cause your jaw to drop and that's not all. Privacy is another feature this home provides and it still doesn't end there. This cabin has been perfectly maintained so the lucky new owner won't have to budget for postponed repairs or upgrades - It literally is perfect just like it stands. At only $185,000 you won't regret this purchase. If you want to see more pictures of "High Hopes 2", please follow this link.

The New, Must-Have Chalet/Cabin Feature

The history of the overnight vacation rental industry in the Gatlinburg area goes all the way back to shortly after the Great Smoky Mountain National Park was created in 19??.  Chalets came on in a big way beginning in the late 60's and early '70's and development of our area has continued exponentially ever since.  Along the way, the "bar" has been raised several times with regard to features that these chalets (and then cabins) have needed to have to rent well.

Several years ago, jetted bath tubs became popular and not much later, hot tubs were the standard.  Try renting a house today that doesn't have a hot tub and you will fully understand - In general, it can't be done. Pool tables came into vogue beginning a few years later, and once again, it is difficult to rent a home without a pool table.  More recently, arcade style games have become more commonplace and now to own a successful rental property, you will want a cabin or chalet that has all of these features.

The latest must-have feature however is wi-fi internet access which is kind of odd.  Although most of our guests come to the Smokies to get away from it all, Gatlinburg area vacationers now often require internet access.  Unwilling (or unable) to leave their communication lines at home, visitors now routinely ask for a property that has internet service available. Since many people now travel with their laptop or other portable computing device, wi-fi internet access is now becoming the standard.  It is my estimate that only about half of the cabins and chalets in the Gatlinburg/Pigeon Forge/Sevierville area have internet access but I expect this to change very quickly.  With the advent of the new cell phone mi-fi networks, I expect that most all Smoky Mountain vacation rental properties will be sporting wi-fi availability before long.

Sadly, We Don't Sell Every Listing...

It happened again this week, another seller whose Gatlinburg real estate didn't sell.  It is a very attractive home in a good location between Gatlinburg and Pigeon Forge.  The property has been meticulously maintained and showed very well.  To maintain the seller's privacy I won't display a photo but trust me, this is a very nice home.  Nobody in our Gatlinburg area real estate market sold more homes than I did last year (I personally had 143 sales in 2010) but still, this home didn't sell.  The reason is quite simple - It was all about the price which was seriously wrong.  Referred to me by a friend who is an officer at a local bank, I tried to explain to the clients that as attractive as their home was, it simply wouldn't sell for the price that they had in mind.  Unfortunately, they wouldn't listen to me and now are upset that we had very little activity and no offers.  When I first toured the property and told them what it was worth in our challenging Gatlinburg real estate market, they refused to believe me. As a courtesy, I agreed to list and market their home despite knowing that it was priced significantly too high.  For my effort and investment I now have an unhappy non-seller who still owns their over-priced home. I on the other hand am out marketing dollars, staff time, and personal effort.  As salt in the wound the sellers now have a very ungrateful attitude and have actually been more than a little rude.  That is what always happens with over-priced listings.  Everyone comes away disappointed and nobody is better off.  You would think I would eventually learn...

If on the other hand you are interested in selling your property at a reasonable price in this market, please contact us!!  We have had an excellent 2011 and look forward to hearing from you.