Brian R Kelly

Category: Real Estate

Real Estate

  • Working on About Me Brian R. Kelly

    Working on About Me Brian R. Kelly. My current About Me Page is like many. It expresses the victories and accomplishments of what is mostly a successful real estate career path. (can you say Resume?) But if you really want to know About Me, then I need to tell some additional stories.Brian

    A biography of my life would read like home town kid done good. At least up until 2007. The circumstance of the real estate market changed. My decisions became more challenging and I made multiple bad personal, money and real estate decisions. A stupid decision was to enter into credit card debt to pay bills in the short term. Instead of being realistic about my current situation I turned to my entrepreneur heart and started businesses outside my acquired skill sets. More poor decision making. That lead to $140,000 in un-secured debt.

    My best decision was re-dedicating my life to God and surrendering my prideful spirit. I left arrogance and my selfish spirit at the foot of the cross. God was able to start using me again to help others.  Real estate is a fairly deep skill set for me, so I  started Liberty Commercial Real Estate Company with a partner in 2008.  I started Liberty Homes Chattanooga in 2012.

    I have been able to serve home sellers and buyers recently. The unsecured debt of $140,000 is down to $80,000 and falling. God is very good!

    Why do I work? What am I passionate about?

    I love challenges. I am creative. I love thinking about the vision of a better future. I love encouraging people and families. Leaving good things behind for future generations gets me excited. I love research.  So helping people market their house to sell and helping folks dig to find their new home is something I enjoy.

    I believe that marketing and advertising is changing dramatically.  In order to best serve serve my clients and customers, I am creating massive content.  Exposure to smart phones is quickly becoming the “game” for maximum marketing punch.  Too often I am seeing owners really wondering “Why” are they spending so much money on real estate agents.  Realtors are comfortable in patterns.  We all are.  But let’s face it, the way we find information about homes is changing Quickly!

    I really believe God challenged me to write a blog post for 45 days straight. He built me, so He knows how to lead me where I can help others.

    A few childhood stories so you know my spirit.

    Failure event in life: I failed to make the second cut on my Junior High basketball team. Coach Hawkins, of the Signal Mountain Eagles, came back to me in science class two weeks later and offered me a spot on the team because some folks left team. I told him no. Basically, with the attitude you didn’t want me then, can’t have these mad basketball skills now. Bad decision – ruined a great NBA career.

    Success event in life: I made the cut for the Chattanooga Youth Symphony as a trumpet player. I remember the first time walking into the practice hall and hearing the strings play Christmas music. I thought I was in a living recording (a record – for the older than iTunes generation).

    Failure event in life: First day on the job clearing trees with a Stihl chain saw. I failed to understand that standing 4 feet in the air on a partially felled tree while cutting a tree above my head was a bad idea. (Visions of Wiley Coyote are appropriate here) I wondered why Hercules (honest – his Mama named him, and trust me he was most likely a very large child) stopped work to watch me cut a simple tree. A few seconds later I realized he was watching mostly for entertainment value. Fortunately for me I still have all my appendages and all that I lost that day was the wind in my lungs and my pride. (Wish pride had stayed there…reference story above).

    Success event in life: Senior class beauty of Red Bank High School 1981, Mary Dee, asked yours truly to the Sadie Hawkins Dance. Saying “Yes” changed my life forever for the better.

    I am approaching 5 decades of life. Failures and successes are behind me. I will wake up Lord willing tomorrow. I am excited about the possibilities and so hopeful about the younger generation coming up. I will surrender my will and report for duty and my orders. I will still be working on About Me Brian R. Kelly.

  • LegalShield Small Business Plan Protects Real Estate Brokerage

    LegalShield Small Business Plan Protects real estate brokerageLegalShield Small Business Plan protects real estate brokerage. Broker/owners have a lot of risks. We are dealing with the public and emotional property and transaction issues. Many problems are covered after the fact of lawsuit. Legal problems are prevented with my Legal Shield small business coverage plan.

    The greatest value of LegalShield’s Small Business Plan is the ability to pick up the phone and ask questions regarding hiring and firing, worker’s compensation, contract review, joint ventures, city zoning, vendor issues, etc. I do not have to worry about choosing the correct attorney for the question and then dealing with the aggravation of paying an unknown amount for the advice. I know what the bill will be each month and I know if the lawyer does not know the answer they will research the issue and get back with me. I was amazed at the research completed by the Tennessee law firm for an issue related to an unlicensed investor purchasing an option. The law firm did a great deal of research on Tennessee law as it related to previous court cases and specific language in the state real estate code.

    My real estate company has general liability and errors and omissions insurance. The Legal Shield policy accomplishes a few things for me as a business owner, which are as follows:

    1. Valuable research and answers to unlimited questions during business hours. Prevention of future problems.
    2. Review of agreements and signed contracts.
    3. Legal correspondence. Writing letters to get things accomplished.
    4. 75 Hours of Pre-Trial and Trial Defense if company is named defendant in civil action.
    5. 25% discount on any additional legal fees if needed.

    One of my agents and my company was sued by an investor purchaser this year. My E&O company and Legal Shield worked together to help me defend the suit. The suit was dismissed and I was a relieved broker.

    I grew up around the real estate business since the 70s. I have been serving in the real estate brokerage business since 1991. The family real estate business has seen thousands of property transfers. In 2006 the company had 14 office locations and over 400 agents and over $20 Million in commissions collected. I am not saying this in a boastful way, I am saying I know what it is like to see 5 figure legal bills on your Profit and Loss statement. In have been in court representing a seller defendant and I have had to go to court to sue a developer/builder to collect earned commissions not paid. Hind sight 20/20, I could have saved much money using the Small Business Plan of LegalShield.

    But, no time like the present. I started a small real estate brokerage firm and now I do use the Small Business of Legal Shield plan to protect it. I found out about the plan from an investor attorney who has the plan for his property management business. I purchased a family plan to protect my son going away to college. I liked it so much, I bought the small business plan and then decided to sell it to others as an extra income. LegalShield does not solve all your business problems, but used well, they can save you lots of time and money in legal fees. Check out my website to find out more about the plan. Call me if you want to find out why I choose LegalShield Small Business Plan to protect my real estate brokerage.

  • How To Sell Your House Yourself

    How To Save Money and DIY
    How To Save Money and DIY
    How do you sell your house on your own?

    Confession (1) I can only guess, because I have never done it. I am a real estate agent, a Realtor. I have owned 4 homes. I hired someone else to sell 3 of them.

    Confession (2) I have not slept in a Holiday Inn Express lately.

    Confession (3) I have been in the real estate industry full time over 22 years helping sellers and their agents get properties sold. (So I do have a few thoughts on the subject).

    So… why would I help someone who is bent on not hiring me?

    (1) I respect the effort. I like saving money like anyone. I recently purchased a bunch of parts for my toilet at Home Depot. Perhaps there is a little bit of pride involved. I can show my wife that I am man enough to fix a small plumbing repair and save a house call. But based on the time and money I spent on this simple project, I am not throwing away my plumbers business card yet.

    (2) I believe in giving value. When you give and give, the universe retaliates. I believe you receive more in return.

    (3) I hope that you will respect the true professionals in the real estate industry after your effort. We tend to paint an industry with a broad brush when someone has a negative experience. I have met many property owners who choose to stay away from real estate agents because “all” of “them” must be not trustworthy based on a past experience.

    (4) Home Depot and Lowe’s have not put builders out of business. For Sale By Owners (FSBOs) and smart phone apps will not do away with professional real estate agents. (They will affect our business, but that is another story)

    Let’s get started. Take some notes. I like bullet points.

    The most impressive For Sale By Owner I met lately did many of the following:

    1.) Study the market to understand value. Ask Realtors and perhaps pay for an appraisal. Take a look at houses you are competing against. Find out how many homes like yours sell each month and how many are on the market. Months of inventory is important.
    2.) Pay for a home inspection. Your buyer will get one anyway. Know your issues up front. I made $10,000 as an investor from a botched for sale by owner transaction over an inspection issue that blew up a sale.
    3.) Fill out a disclosure about all that is wrong with the property. (In Tennessee it is a state law)
    4.) Place good simple signage on property with clear numbers. (You would be surprised at what is really out there),
    5.) Advertise. Zillow “make me move” is the most effective at the moment. Zillow is the most downloaded app for buyers driving around. Craigslist. Next best thing: put flyers in a box outside and keep it stocked daily.
    6.) Set a deadline to break down and pay for a Flat Fee Listing Service. This accomplishes a contractual agreement with other agents that you will agree to pay them if they bring a buyer, and grants you more internet exposure through Multiple Listing Service and Realtor.com.
    7.) Hold Open Houses. Wait for real estate agents who are holding an Open House down the road and put out signs that direct traffic to your house with helium balloons. The people who come to your Open House may not purchase but someone who looked at the house last week may take action because of your activity and “fear of loss”.
    8.) Put a combination lockbox on your house. They are about $35.00 at Lowes. Allow “known” real estate agents to show your house without you being there. Turn on all the lights inside before you leave.
    9.) Stage well. Clean, clean, clean some more. Remove clutter and take away personal pictures. (Huge Tip: Buyers need to be able to “imagine” themselves living there. Not being reminded that you are there….) which leads me to
    10.) Be quiet… listen. If you must be present for a showing realize the goal is for the buyer to emotionally see themselves living there. Their reasons for choosing this house may be very different from yours. Explaining “why” you painted the spare bedroom pink will not help the buyer. Real estate agents ask the sellers to leave during showings. Do not leave your home if you do not know the buyer. Security is a real issue when dealing with the public. Oh, almost forgot… buyers may tell you one thing and do another… “they do not want to hurt your feelings” (especially in the South)
    11.) Find out your local closing practice by talking with a title attorney. Some states require an attorney be present. Your best protection is to have the buyer place earnest money with the title agency’s escrow account. Have the closing agent or attorney draft a proposed HUD-1 closing statement. This way you will know your fees to close.
    12.) Have an attorney review any agreement you make.

    You can sell your house yourself. These 12 tips are a decent start on how to do that. Let me know of your successes and things I should add to the list. Godspeed!

  • Hixson TN 37343 Homes are Selling So Commercial Will Follow

    Hixson TN 37343 Homes are Selling so Commercial Will Follow
    Reception Waiting Area

    New Homes are Selling in Hixson, TN 37343

    Hixson TN 37343 Homes are selling.  78 Homes sold with a price greater than $200,000 (so far in 2013). The same time period in 2012 had only 54 homes sales that were greater than $200,000. 44% increase is double the area Hamilton County average. The average home in this price range in Hixson sales for $97 a square foot.  The average year built is 1994.

    The challenge for Hixson is available land for new growth. New construction is always a great indicator of the economic strength of an area.  Since January 0f 2012, Hixson home shoppers bought over 2 new homes a month over $200,000. There are 11 newer homes for sale. (late August 2013).  There are only 5+ months of inventory of New Homes.  Popular new home neighborhoods are as follows:

    Amber Brook,
    Creeks Bend Village,
    Bent Creek,
    DreamCatcher,
    Eagles Landing.

    The only neighborhoods with any new homes for sale are Amber Brook and Dreamcatcher.

    Amber Brook is a town home community that features one level homes. The “Walden” floor plan features 3 bedrooms, 2 baths, a front loading 2 car garage with 2,063 square feet for $247,900. James Pratt is the home builder. Amber Brook is located near the intersection of Hixson Pike and Cassandra Smith Road.

    Dream Catcher is a more “traditional” single family neighborhood. GT Isaa is building a 2,650 square foot home with 4 bedrooms and 2.5 bathrooms for $289,900. GT Issa’s home is represented by Remax and features a master suite on main level with 2 bedrooms, bonus and bathroom upstairs.

    Hixson, TN is located in the city limits of Chattanooga. It is located just North of Chattanooga. Commuters from downtown come into Hixson by Hixson Pike, Dupont Parkway and Access Road, Highway 127 and Highway 153. Retail anchors include Northgate Mall, Wal-Mart at Oak Park Town Center, Target on 153, Highland Plaza on Hixson Pike and Ashland Terrace.

     

    New Home Sales Drive Commercial and Retail Growth

    Office space for businesses is being created just off Hamill Road at Oasis Park, and behind Northgate Mall. Established office space is available in Hixson Commons. I am representing a seller in a professional office complex named Hixson Commons. The space for sale was a former Beltone hearing aid center and an Acupuncture clinic. It features 2 large exam rooms or offices, a third office in rear adjacent to a full bath and rear entrance. The space also features a kitchen area, soundproof test room and receptionist area with waiting room and another patient half bath. That space is listed at $149,000. Hixson Commons is located at 4513 Hixson Pike, Hixson, TN 37343. Other tenants in the this brick office complex include medical, law and financial services.

    CBL purchased Northgate Mall in the fall of 2011 for $11.5 Million Dollars. Northgate was built in 1972 and is just over 800,000 square feet. CBL owns Hamilton Place and it marks a sound investment as a company that has stewarded retail establishments across the country.

    Liberty Commercial Real Estate is representing a one acre parcel of level ground on Access Road. Currently the use is Ramsey’s Produce, a plant, fruit and vegetable market. The ground and building are for sale for $304,000. The former Smokin Ed’s BBQ building located at 3874 Hixson Pike. The building is priced to sell at $168,000.

    Hixson property is being sold and re-purposed as the needs of the home owners change. Hixson is between a growing Soddy Daisy in North Hamilton County and downtown Chattanooga. As builders find land and take the risk to build the homes sell. The area has solid retail hubs and is growing up more professional spaces for offices and medical use. Hixson Tennessee homes are selling so commercial will be right behind that growth.

  • New Homes at Brock Pointe and Windstone at Whisper Creek

    Windstone Whisper Creek Home - front elevation
    Windstone Whisper Creek Home – front elevation

    New homes at Brock Pointe and Windstone at Whisper Creek are selling. The neighborhoods are 7 miles and 15 minutes apart, but very similar in price. So what are you really buying at either place?

    The sales price range (in 2013, as of August 26) for the 6 Realtor assisted sales of new homes in Whisper Creek was $235,472 to $355,770. The price per square foot was $141.

    The sales price range for the 5 Brock Pointe Realtor sales (in 2013 as August 26) of new homes was $262,500 to $341,900. The price per square foot was $115.

    What about taxes? Brock Pointe is in the City limits of Chattanooga, so you will pay both Hamilton County as well as City of Chattanooga property taxes. Whisper Creek is in Hamilton County only.

    School comparison? Brock Pointe is in the Wolftever Elementary area, and Ooltewah Middle and Ooltewah High School zone. Whisper Creek is zoned for Apison Elementary, and East Hamilton Middle and High School.

    Amenities? Brock Pointe is a more traditional rolling hill neighborhood on a hill with sidewalks and some lots have views looking West back over Hickory Valley. There are various builders in Brock Pointe as lots are available. Brock Pointe started selling lots in 1991. Whisper Creek is the last phase of Windstone. Windstone is a gated golf course community. Windstone is a community both in Georgia and Tennessee that started in the mid 80s. The community now has over 600 homes. Ival Goldstein is the developer and builder of Whisper Creek homes. Whisper Creek is a planned community with clubhouse, pool, sidewalks, and packaged golf memberships available.

    Location? Brock Pointe is a subdivision that is perched on a hilltop near the corner of Jenkins Road and Standifer Gap. It is very convenient to I-75 and Jenkins Road between the Hamilton Place Shallowford Road exit and Bonny Oaks Drive exit. Whisper Creek is another 10-15 minutes drive toward the Georgia state line Standifer Gap Road to Ooltewah Ringgold Road.

    Summary: This is brief overview of two very different communities. Whisper Creek is a neo-traditonal cottage or craftsman style neighborhood. It has a very different feel with community features such as rear loading alleys. The irony is Brock Pointe is located in the city limits of Chattanooga, but feels more like a suburbia subdivision. It has standard sidewalks, but has front and side loading garages and larger homes. So if you need more elbow room (both inside and yard outside) and convenience for commute, then Brock Pointe may be the place for you. If you like security, amenities, and golf then check out the well designed community of Whisper Creek. It may well be worth a few extra minutes of drive time. (Plus what you save in having no city taxes you can give to your golf game!)

    There are still homes for sale in both communities, if you want information emailed to you about available homes please send a request for Brock Pointe and Whisper Creek New Homes to Brian@LibertyHomesChattanooga.com

  • 2013 Top Home Selling Neighborhoods on Signal Mountain TN 37377

    The 2013 top home selling neighborhoods on Signal Mountain TN 37377 so far in mid August are as follows:

    37377 TN
    Welcome to Signal Mountain, Tennessee 37377

    1.) Hidden Brook (13)
    2.) Birnam Woods (9)
    3.) Old Town (7)
    4.) Boulder Point (5)
    5. Fox Run (5)
    6.) Carriage Hill (3)
    7.) Holly Meadows (3)
    8.) Holly Springs (3)
    9.) Westfield (3)

    **Note: these are the ones with at least 3 sales.

    So far 165 homes have sold on Signal Mountain, TN. That is up from 135 same period in 2012. The low price so far this year is $38,699 on Oak Street. The high was $943,500 on East Brow Road. The average $/sqft overall is $108. The days on market is 122 for the ones that sold. Something that is fairly meaningless but interesting is the average age home was built in 1978 and is 2,800 sqft. That is interesting to me because I was built in 1963 and spent most of my childhood on Signal Mountain, and almost another decade in the 90s there. The dynamic of development on Signal Mountain has been interesting to observe.

    Signal Mountain is a wonderful community. Check out the basic facts at this wikipedia site. There are about 3,000 households and 7,600 people living there.

    I grew up at 1615 James Blvd. It was close enough to walk or bike to Thrasher Elementary school. I remember always wanting to get a head start before Mrs. Keith (second grade teacher) left the parking lot in her Dodge Charger. She was fairly small in stature and I could just she the top of her head behind the steering wheel.

    I grew up on the corner of James Blvd and Skyline Drive. We enjoyed a few great sled runs down two hills at Skyline Drive subdivision. Especially when conditions got icy on top of snow.

    When I was 6 years old we had a large snow on Christmas day. This is a video (on location) about the day.

    Signal Mountain, TN 37377 Home Sales
    37377 TN – Neighborhood Home Sales

  • Cummings Cove Fountain becomes Black Creek Mountain

    Former Cummings Cove fountain now Black Creek Mountain
    Former Cummings Cove fountain now Black Creek Mountain
    Cummings Cove fountain becomes Black Creek Mountain. Black Creek Mountain is the name chosen for the entire development that includes the former Cummings Cove neighborhood and Black Creek Golf Club. The new developers purchased a majority interest in the project which includes brow property on Mount Aetna overlooking Chattanooga, TN. Downtown Chattanooga is less than 10 minutes away around the Moccasin Bend of the Tennessee River. Cummings Cove is the original neighborhood marketed along side Black Creek Golf Club. Cummings Cove is not the only name change in the immediate area. Ask a local what the name of 37419 really is, you will get three answers 1.) Tiftonia, 2.) Wauhatchie, 3.) Lookout Valley. A decent history of the area name changes is at this website.

    The name change for Black Creek Mountain is very smart for marketing purposes. The only confusing part is explaining to someone I live in the valley of a neighborhood called Black Creek Mountain. The glorious part is that Mount Aetna stands tall and apparent waiting to be scaled. (That is another story or two that is still being written). Back to my story.

    In 1999, Sue Shaw and Greg Shaw introduced my parents to Cummings Cove. Jim Chapin, the developer, was looking for marketing and sales support. Support in the way of commitment. My parents, Ben and Karen Kelly, asked me to go to a meeting off Cummings Road to meet with Jim Chapin. Jim explained his vision and I saw the potential success of the project immediately because of the the age old axiom of real estate, Location, Location, Location. Development in Hamilton County, TN was primarily North towards Soddy Daisy, and East, towards East Brainerd and Ooltewah. Commute times to these corners of Hamilton County, TN were approaching 30-55 minutes in rush hour. This neighborhood was less than 10 minutes from downtown and had an interstate (I-24) and U.S. Highway 41 to get you there. The challenge was to educate folks about the driving time and that Lookout Valley was not only a fun place to play, but a wonderful place to call home.

    Jim Chapin, Cummings Cove developer, is a gifted man. He has a great vision for what a neighborhood space will become, a razor sharp numbers brain and he wisely listened to other developers who had pulled off other successful projects. I had cut my teeth on retail home sales, but had to quickly learn how to focus only on new construction. I traveled to Raleigh, NC, and Orlando, FL, with others to meet with New Home Marketing and Sales organizations. I joined the Builder Marketing Society and read the bible for new home sales “New Home Marketing” by Dave Stone. Building a team that could market and sell this golf course community was truly intense and fun.

    I truly think that one aspect of the neighborhood’s success was Jim Chapin’s core understanding of marketing. He grew up in the family that built and stewarded Rock City Gardens. Rock City is an icon of the community that had a history along side Judge Will Cummings and the building of Highway 41 (If you are a child of the 70s and know Rambling Man lyrics) or Cumming’s Highway (as locals know it). Judge Will Cummings was a colorful man that literally helped pave the way for traveller’s to visit Famous Rock City. I met Jim on the porch where (it is speculated that the concept of TVA was born on the same porch) Franklin Roosevelt visited with Will Cummings.

    This was the start of my journey selling Cummings Cove, “Chattanooga’s Premier Golf Course Community”. The first sales office was the old Will Cummings home place. My family got involved as Mary Dee, my wife, helped decorate the Cummings home place for Christmas, and cooked for the builder team.

    1999, the year of Y2K and the dawn of a new century. A dawn of a new neighborhood that did change Lookout Valley and provided a home for my family for the last 12 years.

    Cummings Cove fountain becomes Black Creek Mountain, and for the story to continue, I am glad it did. For a brief view of what the neighborhood is like, check out this short 2 minute video.

  • I am Surrendering To Balance In My Life

    Brian R Kelly
    Brian R Kelly
    I am surrendering to balance in my life. I fought it well. I argued about the lack of balance even from a Biblical perspective with my entrepreneur friends. To be fair let me help put this in perspective. I love work. I am passionate about business. I enjoy challenges. This blog run is a challenge from God to be diligent to write for 45 days straight. (Doing something daily that is this unnatural is unnerving for me) I have an addictive and caffeinated spirit. When your spirit is dry and starts to focus on self instead of finding life pleasing God and others, then you can be on a path for death.

    I was on that path 7 years ago. Pride and arrogance were wrapped in a thin t-shirt of false humility. In the fifth row of observers of life’s grandstand, Brian “looked” pretty good. Achievements in business seemed fairly easy. Circumstances around me changed in 2007 in the real estate market. I made stupid decisions mostly because my imbalance in life. What do I mean by that?

    Well,… what is “balance”? I am not talking about Karate Kid on one leg in a stork position balance. Zig Ziglar called it the wheel of life. I understand the metaphor, but I see my balance more like a gyroscope. The gyroscope is me. Outside forces from life can poke it and rock it. Regardless of the disruption, I can stay balanced because at the center axis is God. Inside the gyroscope outer ring of protection is my wife and children. My responsibility as a husband and father is to provide and protect. Outside the gyroscope lies my work and others.

    Frank Ramseur, (Pastor at Calvary Chapel Chattanooga) taught a good and Godly life is a filtered life. God comes through first, then Family, then Work, then Ministry. What does it mean to focus on God first? He gave the example of William Whiting Borden’s life. A remarkable man, Bill graduated Yale and Princeton Seminary. He died in Egypt at age 25 studying Arabic because he had a passion for Muslims. He gave up his Father’s fortune and work, lucrative job offers, etc. He wrote in his Bible, No Reserves, No Retreats, No Regrets. Read his story here.

    My filter a mere 7 years ago was broken. Work was my focus and first priority. Because of that and my pride, I did not listen to others around me. I was not doing well with any areas much less the area I loved, work. Football coaches call it “reading their own press clippings”. Regardless of what you call it, my pride lead me easily to make decisions that cost me my integrity with God, my family, work and my ability to give or minister.

    So, what is my response today? Work diligently to keep God my focus. Keeping fixed to a task is difficult for my personality, but I do respond to challenges. Pastor Frank challenged the congregation to read every day to keep the filter clean. That simple discipline helps. A teacher and mentor of mine encouraged me to keep a prayer journal. To make that unique, I bought a Go Dog Go spiral homemade notebook from a local craft store in Chattanooga. Reading, engaging, praying, listening with the Maker of the universe is an honor and privilege. Not to mention the only way to understand my direction.

    So again, 45 days of consecutive blog posts is what I believe God asked me to do. My filter in life dictates that I am immediately obedient to His call. As I follow His lead He empowers me to serve my wife, and adult children, others in my work and others in ministry. My Maker is balance, peace, and life. He gives me the energy to “spin” as I am surrendering to balance in my life.

    Yesterday, I wrote about the real estate market and Realtors enjoyed it. John Wilkinson, a real estate professional, asked me to write about the how interest rates are affecting investors as well as the apartment construction and rental rates. Are there topics that you are interested in me researching or sharing? If so, please respond and ask.

    Thanks for reading!

  • How is the Home Sales Market in Chattanooga TN for 2013?

    Home For SaleHow is the Home Sales Market in Chattanooga TN for 2013? How is the Chattanooga, TN housing market? Are homes selling? These are questions that a Realtor gets frequently. The answer is homes are selling in Hamilton County, TN. Especially homes selling for more than $200,000. The number of homes selling above $200,000 is up 24% over the 2012. The number of homes under $100,000 are selling less. This reflects a national trend. Another trend is that the re-finance market for home mortgages is slowing.

    It appears this is simply the wash of all the foreclosure activity of the last several years. The unwounded that have good credit have re-financed and/or making purchases. The wounded are renting and sitting on the sidelines.

    Let’s look at home sales above $200,000. The two areas that experienced the greatest increases (and that have decent numbers) are (Area 2 – Downtown, St. Elmo), and (Area 18 – Colledgedale). They combined brought 62 additional home sales (when comparing year to date January 1 – August 15, 2012 versus 2013). Popular neighborhoods in Area 2 include Missionary Ridge (8), Museum Bluffs (7), Jefferson Heights (6), and Waterhaven (7). The more popular spots in Colledgedale are a new subdivision Prairie Pass (14) and established Bentwood Cove (11).

    Soddy Daisy has been a popular area for years. Neighborhoods like Stonewall Farms have newer inventory and year to date has 21 sales in the neighborhood. Soddy Daisy is experiencing the overall market 22% increase. Other popular neighborhoods include Sedman Hills had 10 sales, Hidden Harbor had 7, The Canyons had 5.

    Ooltewah/Snow Hill area or MLS Area 17 reflected a stout 31% increase with the most popular subdivisions being McKenzie Farms (15 sales), Belleau Ridge (12), Meadow Stream (12), Seven Lakes (11), Hamilton on Hunter North (10), Hampton Cove (8), Hampton Creek (7).

    North Chattanooga and Mountain Creek (MLS area 6) continues to be strong but lags the average with 15% growth. The flagship of this area was One North Shore selling 22 homes above $200,000 so far this year. Other popular spots include Heritage Landing (10), The Enclave (9), Horse Creek Farms (9).

    Signal Mountain, North Chattanooga, Hixson, Catoosa County, Walker County, Bradley County, Brainerd, experienced decent growth in home sales above $200,000 in 2013. Lookout Valley, or (Tiftonia to many older locals) saw a dramatic percentage growth of 65% which reflects the marketing and new home construction of Black Creek Mountain. Black Creek Mountain, (plus former Cummings Cove) saw 20 home sales greater than $200,000.

    An area with large numbers of sales but no increase is East Brainerd County or MLS Area 16. There were 134 sales which is off pace from last year. The popular neighborhoods in this area include: Mountain Shadows (17 sales), Windstone Whisper Creek (10), Greenbriar Cove (9), Hidden Lakes (9), The Lakes At Standifer (7).

    The other variables such as time on the market varies from 127 days on Signal Mountain to 330 days Downtown. The average price per foot of the sales above $200,000 was $91 in Catoosa County, GA and $158 in North Chattanooga (Mostly condo sales).

    New construction seems to be selling from $100 to $155 per foot depending on amenities and price range.

    Overall, the home market above $200,000 in the region seems to favor three things. The 3 are younger age homes (rebirth of new construction), close to downtown Chattanooga, and close to job growth. The job growth is Volkswagen, and Amazon affecting Ooltewah and Colledgedale and Wacker in Bradley county.

    How is the Chattanooga, TN real estate market? Are homes selling? Yes, they are. Especially if you want to buy or sell a home valued above $200,000!

  • Who will bust the fat greedy real estate brokers 6% Commission

    Real Estate Agent Worth 6%?
    Real Estate Agent Worth 6%?
    Who will bust the fat greedy real estate brokers 6% commission? The commission is not set by law. All commission is negotiable. Individual real estate firms set their rate and establish the rate they will share with a co-operating brokerage. Real estate agents compete daily with DIY or For-Sale-By-Owners (FSBOs). So, it does amuse me to read articles from people outside the “industry” who see unfairness in the charges. Tech savvy authors like Frederic Lardinois, who wrote a thoughtful article pondering who will “disrupt” the real estate industry? He points to the travel industry, and taxi cabs as changed models. Cindy Zetts, wrote an article in 2008 titled: The 6% commission: Is it the best way to pay agents? Both articles make great points and ask good questions. Here are a few observations from a second generation middle America Realtor.

    1. Sellers who are successful at selling pay for the other half of sellers who abuse the “industry”. Roughly half of all listings ever sell. The sellers who never sell costs agents and brokers time and money. Cindy Zetts correctly identifies the seller as a greedy culprit. Of course the culprit could also be a mis-informed victim of a green and unknowledgeable agent. Bottom line: … The “industry” does not require an upfront contribution from a seller who is only “testing” the market.

    2. Current tax law allows real estate brokers to pay licensees via contract or 1099. Essentially, it costs brokers very little to “hire” real estate agents because they guarantee them no pay until closing. (cue: coffee is for closers , Glengarry Glen Ross movie scene). Companies like Redfin and Zip are challenging this model.

    3. Regardless of how you get paid, being successful in real estate is demanding because “time is of the essence”, and you are serving people evenings and weekends and then working during the day to get ready to work in the evenings and weekends. Even if the model is W2, this is called overtime or time and a half.

    4. Large cities, coastal areas with higher dollar housing do attract franchises (buying brokerage firms), and agents seeking greater commission dollars because of the percentage of sales price brings more dollars.

    5. Buyers and sellers will always be at a disadvantage because they have limited transaction experience. Agents simply “see” more homes, and negotiate many “deals” over time.

    6. Real estate is a personal referral, relationship business. We are in the business of trust. That is why eBay, and Airbnb are successful. They have established a model with “acceptable risks exposure” (Airbnb has insurance in case rock band goes ape on your home bedroom).

    7. Deferred maintenance, subjective cosmetic features, fixture updates (lighting, plumbing, trim), functional floor plan differences, landscaping…. the lists goes on and on of variables that affect value. Your latest guess of value from an app will never be able to monitor the “feeling” you get when you smell your mom’s apple pie in the kitchen of your dreams. Perhaps a mood ring app will be able to transfer feelings to an emotional response database. (hey,,,not a bad idea!)

    8. Making the real estate industry a more efficient lean machine is a wonderful challenge. Finding ways to serve people’s real estate problems has provided well for my family for the last 23 years.

    9. My observation is that landlords, and lenders have more power to “abuse” the consumer (buyer, seller, renter) than the broker in a real estate transaction. Banks own larger buildings, and have more attorneys. Real estate agents drive Lincoln Town Cars, bankers drive armored trucks!