Smoky Mountains Real Estate and Community News

Are you wondering how to turn a profit during these uncertain times? Research has shown that one of the best things to invest in right now is real estate. Rental properties can continue to provide you with a steady income, even during a recession. So, if you’re asking yourself if you should invest in secluded mountain cabins for sale, then the answer is yes! Here’s why: 

So What is “Earnest Money,” Anyways?

So, you probably knew when you started this whole house-buying-process-thing that you wouldn’t be able to get out of it without putting at least SOME money in. We like to talk about no-down-payment and low-down-payment options, but the truth is you are going to have to have at least some funds on hand to get into that new-to-you-home. 

When you enter into a contract to buy a home, you will be required to put down what is known as “earnest money.” It’s easy to agree on a price and sign on the dotted line promising that you will buy something, but the seller wants to see you have a little skin in the game. A little bit of “good faith,” if you will. 

Earnest money amounts vary widely. You may only need to put down $500, or if you are paying cash you may need to put down 10% of the purchase price. Your agent will advise you here, but be prepared for at least $500. 

This money goes into what is known as an “escrow account.”  Don’t worry - you aren’t slipping it into the seller’s pocket. Your real estate agent’s firm or the title company will typically hold the funds (though other parties, such as the seller’s firm or an attorney, could hold it). The money will be held in this escrow account until the day you close on the property, at which time it is “credited” back to you at closing. 

What Are Experts Saying About the Rest of 2020?

One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.

Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association

“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”

Home Sales: Lawrence Yun, Chief Economist, National Association of Realtors

Ready to make an investment? Now is the perfect time to invest in log cabins in Gatlinburg, TN. If you have money saved up and a secure job, then you can increase your wealth by expanding your investment portfolio. Vacation rentals are great for first-time investors. They can provide a steady source of income each month. During a recession, you can get cabin rentals at a low cost and that’s just one reason why it’s the perfect time to buy:

So you’ve found your dream Smoky Mountain cabin, now what? There are lots of facets to the investment process, so the TN Smoky Mtn Realty team put this guide together to help you navigate it. We know that real estate jargon can sometimes be confusing, but that’s why we’re here. Whether you’re a first-time investor, an experienced pro, or just curious how the process works, here are a few tips about investing in Smoky Mountain log cabins: 

Are you looking to exchange your investment property for another? The IRS Section 1031 has many moving parts, but, in general, it is designed to allow the swap of one investment property for another. Although most swaps are taxable as sales, if the exchange meets the requirements of 1031, you'll either have no tax or limited tax due during the process. Need some help with the ins and outs of the process? Here are some things to know about 1031 exchange investment property rules: 

Are you ready to cash in on your cabin rental investment? Now is the perfect time to put your cabin on the market! This year, there has been a shortage of cabins for sale. Inventory is low, which means cabins for sale in the Smoky Mountains are in high demand. This could be your chance to get a return on your investment. Here’s how the TN Smoky Mtn Realty team can help sell your cabin rentals in Pigeon Forge and Gatlinburg: 

Looking to finally invest in something? You should consider investing in vacant land. It is a hot commodity, especially in the Great Smoky Mountains. Building a wealth growing strategy is just one of the many benefits you could get from buying land for sale in Sevierville, TN. 

Cybercrimes in the U.S. are increasing at a rapid rate. One of the most common ways someone can steal money from you online is by committing real estate wire fraud. Hackers can steal your money by sending you fake wire instructions. Often, they’ll use a similar looking email address and logo to make it look like your real estate agent or title company. Don’t be fooled! Many people have wired these scammers money because they think it’s someone they trust. Take these steps to protect yourself and your hard-earned dollars: 

Who knows the real estate market in the Smokies better than a local agent? When looking at Smoky Mountain homes for sale, you’ll want to consult an expert. This is a big decision after all. When you work with a TN Smoky Mtn Realty agent, you can rest easy knowing you’re getting the best advice out there. Consulting an expert in the area is just one reason why you should hire a local agent when buying Smoky Mountain homes for sale: