What Are Closing Costs Exactly In Knoxville

You might have heard about closing costs, but do you know exactly what they include? Check out my closing cost guide to learn what costs you might not be accounting for.

What Are Closing Costs Exactly In Nashville, Tennessee?

Closing costs refer to the fees that must be paid at the closing table of a real estate transaction. These costs can vary greatly depending on where you are located, but we are going to focus on Nashville, Tennessee. Closing costs can include, but are not limited to:

• Transfer taxes
• Notary fees
• Inspection fees
• Origination fees
• Recordings fees
• Title insurance 
• Underwriting fees
• Courier fees
• Bank fees
• Wire transfer fees
• Prior liens against the property (must be paid at closing)
• Credit report fees
• Attorney fees, if necessary
• Administrative fees
• Mortgage balance or other loans against the home such as a HELOC
• Pest control treatment and report
• Mold treatment and report
• Possible repairs
• COMMISSIONS!

Who Pays?

The buyer usually picks up a majority of these fees, however it should be noted that the seller is responsible for ALL of the commissions. This is usually 6% of the total sales price. Other than paying off existing loans, such as mortgages, this is usually the biggest expense for the seller. In order to attract more buyers, some sellers are willing to cover some of the expenses that buyers typically pay for. 

As a seller, you are also responsible for the property taxes up until the day of closing. HOA fees are also due at this time. To learn more, visit http://tnrealestate.weebly.com/blog/4-tips-on-selling-your-home-when-you-need-to-relocate-in-nashville

What Are Seller Contributions?

This is an amount usually discussed prior to closing between the buyer and seller, in which the seller agrees to pay an amount of closing costs. An example would be that the seller agrees to put $2,500 toward the total closing costs to help the buyer. This shows that you are willing to work with buyers, and can go a long way in negotiations. 

Can Closing Costs Be Avoided?

Yes! If you choose a cash homebuyer or "cash buyer" that will cover all closing costs. A cash homebuyer will not charge you a commission since they are not a real estate agent; saving you thousands. Many times cash buyers will even cover all of the closing costs, which saves you time and hassles. 

Are repairs included?

This is something that needs to be negotiated between buyer and seller. Some houses do need significant repairs, and if the buyer is not willing to buy the home "as-is", you may be responsible for paying for them. You can always work this out prior to closing. 

4 Ways To Market Your Home To Cash Buyers In Knoxville

Cash buyers speed up the real estate process. There aren't pending home loan contingencies or potential qualification  issues. Cash buyers are experienced purchasers who don't get scared at each and every inspection turn. 

While a cash buyer may stumble upon the "for sale sign" or Multiple Listing Service (MLS) posting, marketing directly to cash buyers takes some targeted marketing. 

Be prepared; cash buyers are usually investors. They want a deal to fix and flip or rent. They need to make a profit. As such, investors seek properties at discount prices: 20-40% or more below market value. If you aren’t prepared to drop the price, you’ll push away cash buyers. Don’t be a pushover, but be flexible in price and terms when marketing to cash buyers and investors.

4 Ways To Market Your Home To Cash Buyers In Knoxville

1. Advertising to International Markets

Investors are in all parts of the world. Chinese, Russians and Middle Eastern investors like to buy houses in this country too. Most investors make cash purchases and many properties are purchased without the buyer ever visiting the location prior to closing.

Find a brokerage with an international division. International investors often look at high-end real estate markets such as New York, Florida, Hawaii or California. That being said, if your property in Knoxville has the right mix of desirability, you may find the right international investor ready to buy.

International investors often pay market or near-market value rather than discounted prices. Obviously, this is good for your bottom line. To learn more visit http://tnrealestate.weebly.com/blog/the-world-of-real-estate .

2. County Court House Auction

The county assessor’s office has a list of foreclosed properties delinquent on property taxes. When the county holds its auctions, cash investors buy fixers to flip. This can be a great place to market your property to cash buyers.

The auction tactic requires an outgoing personality and you have to be willing to approach strangers. Foreclosure auctions are intimidating for any newbie. People are there for business: to win the property on their list. But if you can make a few friends and capture contact information along the way, then you can build a list of buyers accustomed to paying cash and moving fast. They obviously aren’t intimidated by problem properties either, so that can be a plus.

3. Real Estate Clubs

Find a local real estate club. These are groups of people who network, educate and invest together. They are always looking for good investments, especially close to home. Send an email to the director, asking if you can attend the next event.

Meet as many people as possible and let them know about your property. Invite everyone to an open house or private showing. Even if members at the meeting aren’t looking for a property at that moment, they most likely have a few colleagues in other real estate clubs to happily share new opportunities with.

4. Contact A Local Cash Homebuyer Company

Finding a local we buy houses Knoxville company may not be as hard as you think. If you type in companies that buy houses in Knoxville, you might be surprised to find a few investors that actually buy houses with cash. You will need to do some due diligence to find out which of these companies are legitimate, but chances are a few of them will be. 

Find out how long they have been in business, how many homes they have purchased, and if they have any reviews. Interview each company to make sure you feel comfortable with them before you have them make an offer on your home. 

Final Thoughts

While any marketing may generate interest from cash buyers under the right circumstances, these 4 ways to market your property to cash buyers in Knoxville can probably do it faster. Target international real estate brokerages, real estate clubs, local cash homebuyer companies, and auction sales to locate buyers. Then list the property at the right price investors can’t resist. With enough cash buyers, you may get a few offers higher than the traditional wholesale price.

The Three Ways To Sell Your Home In Knoxville

The Three Ways To Sell Your House In Knoxville

When most homeowners decide to sell their home, they think about listing it with a real estate agent. However, there is more than one way to sell your Knoxville home. There are actually three ways.

#1 Sell Through A Real Estate Agent

Listing your Knoxville home.

Selling through a real estate agent is the traditional way most homeowners sell their home in Knoxville. The homeowner chooses the real estate agent that will list the home.

The agent will act as the "middle man" by showing potential buyers through your home until one of those buyers decides to purchase your home. The potential buyer will make an offer and the agent will negotiate on your behalf. 

The timeline for listing your home can take a long time, on average 3-6 months. Homeowners that choose this route, typically do less work and gamble that their home will sell at the price the agent suggests. In order to go this route, you will need money to repair your home, and you will also spend money at closing on agent fees. 

#2 Sell Your Home On Your Own

Selling your Knoxville home as a FSBO

Selling your home on your own has grown in popularity as of late, as homeowners try to save money on agent commissions. Selling your home on your own, or FSBO (For Sale By Owner), is very similar to selling through an agent. The main difference is that the homeowner is responsible for taking pictures, negotiating with potential buyers, filling out the necessary documents, and promoting their own home. 

The homeowner is also responsible for finding a reputable title company and coordinating the transaction. 

There are many similarities to listing your home with an agent, and listing your home on your own: the timeline for selling your home is usually the same and the homeowner is still responsible for paying for the repairs upfront to make the home sell faster. Most homeowners who choose this method don't mind the extra work involved, and they would rather save money on commissions. 

#3 Sell Direct To A Knoxville Cash Homebuyer

Selling to a Knoxville cash homebuyer

Selling to a cash homebuyer in Knoxville is gaining popularity as homeowners look to other methods to sell their Knoxville home. The process of selling to a cash homebuyer is very different - it's faster, easier, and doesn't cost the homeowner anything. 

Rather than listing, repairing, and showing the home, they sell directly to the professional home buyer who has cash and is ready to buy the home as-is.

Professional homebuyers have the funds to close quickly and offer the homeowner a much easier process. The seller doesn't have to pay for repairs and can simply walk away from the property. Professional homebuyers will usually pay closing costs and fees.

In short, there are multiple ways to sell your home in Knoxville, Tennessee. Hopefully you now have the tools to make the decision that is best for you and your family. 

Welcome To My Real Estate Blog

Welcome To My Real Estate Blog

Welcome to my Knoxville Real Estate Blog! Here you will find my posts to share with you my love of real estate. My main focus is residential real estate, however I also have an interest in land and development. I hope that you can find some useful tips and information here to help you learn about the Knoxville, Tennessee real estate market. I am looking forward to sharing all that I have learned and am still learning. Please do not hesitate to send me an email if you have any questions or concerns. I can't wait to share this blog with you all!

-Katie