Banks as Gatlinburg Area Real Estate Principals

Each week, like many newspapers do, our local Mountain Press, provides a list of all of the previous week's real estate transfers.  In yesterday's edition, there were 36 transfers which made me long for the good old days of a few years ago when the weekly transaction count for Gatlinburg area real estate was much higher.  Speaking of the good old days, remember when banks generally were involved only as lenders in real estate transactions??

Although the newspaper's list of real estate transfers doesn't provide the lender's name, the interesting fact is that in this week's list bank names were all over the page, both as buyers (generally meaning new foreclosures that have been completed) and as sellers (almost always a reflection of the disposal of property that they had foreclosed upon previously).  If fact, out of the 36 real estate transfers Sevier County had last week, 17 had a bank as either the buyer or the seller.  Of those 17 transactions that involved a bank as principal, 11 were new foreclosures and 6 were sales by the bank to a non-bank buyer.  The market for Gatlinburg foreclosures continues to be strong and many properties that are owned by banks are priced to sell very quickly.  For a free complete (and current) list with photos and prices of all the foreclosures currently listed by any  member of our Great Smoky Mountain Association of Realtors, please click here but be patient, as it takes a while to load the complete list.  For assistance in determining which Gatlinburg, Pigeon Forge, Sevierville or other local area foreclosures are the best buys, please contact us!

Comments

Steve said…
Jeff isn't it a bit strange that out of approx. 340 foreclosure listings/short sales on your site there are only approx 50 over $300,000? My point is that the properties being defaulted on by the buyers are not in the upper range of quality ones? I don't want to suggest that they are not worthwhile, but many more of the less expensive ones are let go while the more expensive ones do not change hands. Common sense tells me it should be the other way around.
Excellent observation Steve. I believe that there are fewer higher priced properties for several reasons. One, people who own luxury properties generally have more resources and are less likely to fall into foreclosure even during a very difficult economic environment. Two, the banks are selling properties at significant discounts so everything sells for less. Three, there are generally approximately 5 times as many properties for sale in Sevier County at any one time under $100,000 as there are over $400,000.

While there have been some very nice foreclosure properties they are much more likely to be less valuable homes.

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