It’s a very strong seller’s market out there, and many properties are receiving multiple offers. When making an offer, you have two options to consider.

First, you can make your highest and best offer, and the seller can either accept it, reject it, or counter it. Your second option is to use an escalation clause. An escalation clause is a provision in the offer that increases your price based on the other offers the seller receives. There are three components to an escalation clause: your original offer price, the amount your offer will increase over a competitor’s, and the max amount your offer will increase.

As an example, a property is listed at $500,000 and is likely to receive multiple offers. My buyer could offer $500,000 with an escalation clause stating that they’ll pay $1,000 higher than any competing offers up to $510,000. So if another offer came in at $505,000, my buyer would pay $506,000, but if an offer comes in at $511,000, then our offer wouldn’t increase any further. Keep in mind that an escalation clause is an ‘all cards on the table’ option, so the seller could counter your offer at your maximum amount.

An escalation clause is a provision in the offer that increases your price based on the other offers the seller receives.

There are other ways to be competitive besides just raising the price, so ensure you’re offering a price that you’re comfortable paying. A cash purchase (no loan contingency), negotiating a convenient closing date for the seller, or cutting out some or all contingencies are also all great tactics to set your offer apart.

If you have any questions regarding escalation clauses or real estate in general, please feel free to reach out via phone, text, or email. We’d be happy to help.

The current real estate market is a seller’s market. There’s still low inventory and a lot of buyers anxious to purchase a home, so if you’re selling, you are likely going to receive multiple offers. Today we’re going to give you some suggestions on choosing the very best offer for you.

1. Price. This one’s pretty self-explanatory, but we will soon discuss escalation clauses. Escalation clauses are quite common in this current market.
2. Is the buyer asking you to cover any of their closing costs? It’s very common that a buyer increases the price in order to have you as the seller cover some of their closing costs. In this seller’s market, we’ve actually seen buyers offering to cover some of the seller’s closing costs.
3. Home warranties. It’s common for a buyer to ask the seller to pay for a home warranty or a home protection plan at closing. This could be a $500 to $600 expense for you. More often lately, buyers are either forgoing this request or paying for it themselves.
4. Inspection contingencies. This is common, and we advise every buyer to get a home inspection when purchasing a property. We’re more often seeing buyers keeping their right to have the inspection, but they’re getting it for informational purposes only. Those buyers are stating that they won’t ask the seller to complete any repairs. This could be of great interest to you as the seller.

“If you’ve considered selling your property, now is the time.”

5. Are the buyers paying cash or are they getting a loan? If they’re paying cash, there’s less risk involved with that transaction closing. If they’re getting a loan and the price is significantly higher, you may want to consider that being the best offer. Make sure they have a pre-approval letter from a good mortgage lender, or proof of funds if it is a cash purchase.
6. Other contingencies in that purchase offer. Although we’re in a strong market, you may be leary of a house sale contingency. If it’s contingent on the successful closing of their property, that means it’s already under contract and you may want to make sure that your agent asks more questions so that you know where they are in the process. If it is contingent on the sale of that property that means it is not yet under contract. Another contingency you want to consider is the appraisal. Most buyers will have an appraisal completed on the property, but they may offer some sort of clause that states that they can pay above that appraised value if it does not appraise for the contract price. If that clause is not part of the contract, you may still want to take your chances on a satisfactory appraisal.
7. Proposed closing and occupancy date. You want to make sure that you’re coordinating closing and occupancy dates that are convenient for you based on your needs.

If you’ve considered selling your property, now is definitely the time. The market is great for sellers. If you have any other questions about real estate, please feel free to call, text, or email us. We’ll be glad to help. Thank you and have a great day.

A lot of you have been asking me about the state of our real estate market and whether now is a good time to buy or sell. My answer is an absolute yes, and here’s why.

First of all, if you’re looking to purchase a home, you will have to compete. At the same time, interest rates remain low and have balanced out our rising prices.

If you’re looking to sell, it’s a fantastic opportunity to do so with such low inventory. Five years ago, the Knoxville MLS might have had 10,000 to 15,000 residential homes for sale. Today we’re down to just approximately 1,400. Less inventory means less competition and more money for your home.

If you’ve even considered selling your home, now is the perfect time. Many of our sellers are receiving multiple offers, offers above list price, and most are selling within days. Prices have increased 15% to 25% in this year alone.

If you have any questions about the Knoxville real estate market or anything else related to real estate, don’t hesitate to reach out via phone, text, or email. We look forward to hearing from you soon.

Not all upgrades add as much value to your home as you might think. Here are a few that you might want to avoid:

1. Remodeling upper levels. The buyer’s focus will primarily be on the main level rooms.
2. Adding wainscoting or crown molding. It’s simply not as popular as it once was, so you’re not adding the value that you think you are.

“Don’t make upgrades unless they’ll add value to your home.”

3. Building an accent wall. It might look nice, but it’s not going to add any value to your property, so it will be a sunken cost.
4. Making costly upgrades. This could mean replacing an A/C unit or water heater. As long as they are currently in good, working order, leave them as is. New ones won’t add value, but if your systems are older, you might want to consider offering a warranty.

Where should you focus your upgrade efforts? High-value areas such as the kitchen and main-level bathrooms. You may also want to consider a fresh coat of paint or some new flooring. These are more inexpensive ways to add value to your home.

If you have any questions about adding value to your home or concerning real estate in general, don’t hesitate to reach out via phone, text, or email. We look forward to hearing from you soon.

Even though we’re in the middle of an intense seller’s market, there are still a few homeowners asking me why their homes are failing to sell. If you can’t seem to find a buyer for your home in today’s market, there’s likely one or a combination of a couple of reasons:

1. Your house might be ugly. Well, ‘ugly’ might be a bit harsh. But it could be that your house is cluttered, outdated, or messy and in need of a good deep cleaning. The solution here is to take care of all those problems before you go on the market, but if you’re already on, then now’s the time to address them.
2. Your price might be unrealistic. We’re in a crazy-hot seller’s market, but you still need to pay attention to the comps that your agent has provided to you. If you’re getting feedback that your price is too high, you need to take that to heart.
3. Your house is too much of a ‘project house.’ By that, I mean if your home needs a lot of updates and repairs, buyers (even in this market) won’t likely want to take on such a project. Try to eliminate at least some of the high-dollar updates and repairs that you need.
4. Your house isn’t available to view. I know that it’s a hassle to have your property on the market with buyers clamoring to see it at various times, but it’s important to make your property as available as possible. Be ready for short notice before showings and have your property show-ready at all times.

If you have any further questions about making sure your home sells quickly and for the most money possible, don’t hesitate to reach out to me. I’d love to help you.

“Is now a good time to sell my home?” I frequently receive that question this time of year, and my answer is yes! Here are a few reasons why it’s a great time to sell in our current market:

1. Interest rates are incredibly low. That means there are many buyers eager to purchase a house, and they can now buy more house for less money.
2. Inventory is extremely low. Along with the high buyer demand, you’re not only able to sell your property quickly, but you’re also likely to obtain multiple offers, which may net you more than list price. You likely won’t be in competition with another similar home.

It’s a great time to sell in our current market.

3. Prices continue to rise. Along with the previous two points, this means you’ll probably get a higher return on your investment.
4. Fewer contingencies. Sellers are seeing cleaner offers with fewer contingencies, which often means less expense and hassle for sellers on closing costs, home warranties, and repairs.

If you have any questions about selling this spring or real estate in general, please feel free to call, text, or email us. We’d be happy to help.

Amidst the ongoing COVID-19 pandemic, our homes have become more than just living spaces—they’ve become offices, gyms, and classrooms. Many of us have hosted cocktail hours via Zoom and/or searched for additional spaces for our hobbies. How has this influenced what buyers look for in homes? Here are five “wants” that have become more popular:

1. Larger lot sizes. Since many of us work from home (or at least work from home more often and plan to do so post-COVID-19), people aren’t as concerned about commute times.
2. Smart bathrooms and bidets. They’re becoming less of a luxury and more of a practical necessity.

Our homes have become more than just living spaces—they’ve been offices, gyms, and classrooms.

3. A good place for package delivery. Packages left at our doorsteps are certainly attractive to thieves. Now that a lot of us are shopping online more and avoiding stores, builders are considering adding this as a new home feature.
4. Healthy homes. Experts predict that buyers will be in search of new features such as viral-resistant surfaces and air quality monitoring systems.
5. Home offices in creative spaces. Our kitchen tables have become workstations and school desks, so creating an office in an attic, garage, or basement may become an even more popular home renovation.

As always, if you have questions about this or any real estate topic, don’t hesitate to call, text, or email my team. We’re happy to help.

Happy holidays to you!

The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories.

We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us and supporting our business.

This may be a busy time of year, but we are always here to help you and answer any questions you may have. Give us a call or reply to this email and we’d love to help out.

In case we don’t hear from you until 2021, have a happy New Year!

If your home’s appraised value comes in low, it’s possible to get it adjusted. Just like the rest of us in this busy market, appraisers are also swamped. A low appraisal could simply be due to human error. If you don’t find any errors in the report but still disagree with the findings, your REALTOR® can prepare a rebuttal and potentially get an adjustment made to the value.

Getting your appraised value adjusted is certainly a challenge; however, it’s not impossible.

You’ll need your REALTOR® to prepare a list of comps that they feel are appropriate as well as all of the updates and upgrades your home has had and submit it to the lender for consideration. Getting your appraised value adjusted is certainly a challenge; however, it’s not impossible. But if you and your REALTOR® have exhausted all means of getting it adjusted and it’s just not working out, it’s time for you to go back to negotiations with your buyer.

If you have any questions about appraisals or real estate in general, please feel free to call, text, or email us. We would be glad to help.

Why should you buy or sell during the winter months? Wouldn’t it be more prudent to wait until spring? Actually, that’s not the case. The winter season can be a great time to buy or sell.

First of all, winter sellers may feel like they have to be more competitive price-wise in order to sell, or they may simply be more motivated if they’re on the market during the holidays. That means pricing could be better for buyers.

There’s also less competition in the market. Many people want to hold off buying and selling until the spring, which means more opportunities for you. Buyers and sellers are also more eager this time of year, giving you more negotiation power.

Additionally, the process will go faster during the winter. The inspectors, mortgage lenders, title companies, and the rest tend to be less busy in the winter months. You may also be able to move quickly and cheaply since moving companies are similarly slow on business.

If you have any questions about buying or selling a home in the winter, don’t hesitate to call, text, or email us. We would be glad to help you.