Lots of folks have heard that foreclosure rates in America are on the rise. The current increasing amount of foreclosures will most likely affect the Knoxville, TN real estate market in a few ways. The TN housing market historically has been volatile, with fluctuating prices, ever-changing government laws and regulations, and unforeseeable economic conditions, it can be challenging for home buyers and home sellers to navigate this market successfully. One of the most significant factors that impacts the TN housing market is foreclosure rates. When Knoxville foreclosure rates rise, it can have a significant impact on both buyers and sellers in the area. Are you thinking of buying or selling a house in Knoxville or somewhere else? Here’s what rising foreclosure rates may mean for your upcoming real estate transaction.
What is Foreclosure?
Foreclosure rates are a measure of the how many homes have been repossessed by lenders due to the homeowner’s inability to pay their mortgage note. When foreclosure rates rise, it can indicate larger economic difficulties, a rise in unemployment, or stark increases in interest rates. Regardless of the cause of rising foreclosure rates, it can lead to a drop in home prices, which can impact both home buyers and home sellers.
How Foreclosures Impact Home Buyers in Knoxville
For homebuyers, a wave of foreclosures is often viewed as both a blessing and a curse. On one hand, it means there could be more affordable homes coming on the market, and a larger than average inventory of home to choose from. After a home is foreclosed on, the property is often sold at a discount, making foreclosed homes a very attractive option for buyers on a budget. However, foreclosed homes can also come with a lot of unwanted baggage. Many homes that wind up in foreclosure are in disrepair, and the previous owners may have neglected to maintain the property and could have removed valuable fixtures and appliances before the lender repossessed property. Additionally, buying a foreclosed home can be a long, complicated, and difficult process, since the bank or lender that repossessed the property will need to approve your purchase.
How Foreclosures Impact Home Sellers in Knoxville
For home sellers, rising foreclosure rates can be a big cause for concern. As more homes in your neighborhood or city are foreclosed on, there may be an increase in the number of total distressed property sales. Distressed property sales occur when a seller is forced to sell their home fast, often at a monetary loss, due to a tough financial hardship, or the property being in violation of city codes or worse, condemned due to disrepair and neglect. These sales are likely to drive down other home prices in the area, making it difficult for other sellers in the neighborhood to get the price they want for their home. Additionally, if a home seller is facing foreclosure themselves, they may be forced to sell their home at a loss to avoid losing it to the bank and ruining their credit.
What You Can Do
Ultimately, rising foreclosure rates impact both home buyers and home sellers in different ways. However, there are steps that both parties can take to navigate market changes successfully during these challenging times.
Making an Offer on a Foreclosed Home
For homebuyers, it’s critical to do your own due diligence before making an offer on a foreclosed home. We recommend you work with a trusted, local real estate agent who has experience specifically in the foreclosure market, and be prepared for a potentially lengthy and complicated process. Make sure to get a thorough inspection of the property before making an offer, and be prepared to invest time and money into repairs and renovations if necessary. If you need help locating a local real estate agent foreclosure expert, Southern Sky Home Buyers can help! Contact us at (865) 410-8326 to discuss further.
How Sellers Can Stay Competitive
For home sellers in TN and other parts of the southeast, it’s essential to stay competitive in the market. This may mean pricing your home competitively or making necessary repairs and upgrades before you list, so your home will attract the most buyers. Additionally, if you’re facing foreclosure, it’s important to work with your mortgage lender to explore all of your options. This may include a short sale, where you sell your home for less than what you owe on the house, or a loan modification, where your lender adjusts the terms of your mortgage to make it more affordable.
How Southern Sky Home Buyers Can Help
Southern Sky Home Buyers is unique in that we work with both home buyers and sellers to facilitate deals in which everyone comes out a winner. We help local homeowners by offering a great price for their home, thus stopping the foreclosure process almost immediately! Instead of losing their homes to the bank and trashing their credit, homeowners are able to walk away from the frustrating property with a check in hand and their credit score saved.
Rising foreclosure rates should be a cause for concern for both home buyers and home sellers. However, with a bit of careful research, preparation, and strategic decision-making, it’s possible for you to navigate the market successfully during these challenging times. Whether you’re looking to buy or sell a home right now, it’s important to work with a trusted home buyer like Southern Sky Home Buyers, or a real estate agent who can guide you through the process and help you make informed decisions. With the right approach, you can achieve your homeownership goals, even in the face of rising foreclosures.
Foreclosure rates are up significantly since the pandemic, but Southern Sky Home Buyers is here to offer solutions. We help homeowners sell before the foreclosure process begins. We also help foreclosure buyers by finding properties and facilitating a great deal, or connecting you with an A+ rated local real estate agent to find on-market foreclosure properties. To learn more about us and how we help home buyers and sellers, don’t hesitate to reach out! We’re happy to answer any questions you have about foreclosure properties in Knoxville, Tennessee or other markets. Call us today at (865) 410-8326!