Home Buying in Knoxville>Question Details

Jack, Home Buyer in Knoxville, TN

What is a good price range for a home to live for only 4 years?

Asked by Jack, Knoxville, TN Thu Feb 14, 2013

i am a first time home buyer.. I am moving to knoxville but expect to live there for only 4 years and then possibly move on.. I could live in an apt but i have a big family so i want to buy a home..

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Shannon Foster-Boline’s answer
Hey Jack,

That is an excellent question. There's a few ways to slice that pie (so to speak).

1. In purchasing a home think about prices like a pyramid. At the top of the pyramid is the high range homes, for example a million dollar property. At that level there is very little room in the upper section of the pyramid, which represents available buyers. As you move down the pyramid, the prices of homes become less and the number of buyers become more. In Knoxville, the median home sales price is around $143,000 give or take. So, if you are looking for the largest quantity of buyers, then I would consider staying closer to the median value for the area.

2. The next thing to consider is location. The number one factor that drives a sale is location (hence the old adage location, location, location). It would be crucial to look at the recent sales in an area to determine how quickly homes sell. If you are looking to sell in four years, then you want to make sure the area has stable values, and is in a high demand or at least solid demand purchase area. It is less about "just by in X part of town" and more specific to a given neighborhood and the absorption rate in that area.

Of course, your price will also be dictated by your families needs for space and specific amenities. I think you will find there is a wide variety of properties in Knoxville to meet your needs. I have taken a lot of time to write articles about neighborhoods, give market updates, provide tips for buyers and sellers and I also have a Home Buyer's Guide e-book I created that you can instantly download. If you have a minute to check all of those out my website is: http://www.FosterTheAmericanDream.com. You can also search properties directly from my site (there's no forced registration and I do not spam).

I would say more than half of my business is with relocation clients. If you would like to talk further feel free to give me a call or email. My contact information is below.

Best wishes,

SF

Shannon Foster
e: Shannon@FosterTheAmericanDream.com
c: 865-617-8287
1 vote Thank Flag Link Thu Feb 14, 2013
The important statement is "big family". I would research the schools of choice then begin the process. Note, that school zones do change. Knoxville pricing has changed little last few years and value can be found. We specialize in lease purchase,foreclosure, and buyer's.
0 votes Thank Flag Link Thu Feb 14, 2013
We would recommend your first step, before even looking at homes, would be to get in touch with a mortgage professional to discuss your situation and obtain a pre-approval. This will give you your parameters as far as the price range for which you can qualify (unless you are paying cash). If you are planning on being in the home 4 years, that is a significant amount of time, so you need to find a place you are going to be happy with. Base your search on your wants/needs as the main criteria. Although you are looking for a good investment, you are the first person that has to be happy with it. What location is convenient for you? What amenities would you like. Get with a professional that knows the area who can assist you in finding a home that fits YOUR wants/needs. Then, allow them to assist you in negotiating a good deal. If you buy at the right price, in any neighborhood, you should be in good shape when you have to turn around and sell it in 4 years. Good luck and happy house hunting!
0 votes Thank Flag Link Thu Feb 14, 2013
My advice would be to find a home that meets your family's needs first & foremost. Regarding the timeframe, I would look at homes that are either (a) foreclosures or (b) fixer - uppers. With a little bit of sweat equity, you will ensure not loosing money on your home. The final choice would be to choose a house that is the smallest house in the development. By doing this, you can do cosmetic work to the house (I call it lipstick) and you will have a better chance of getting more money in comparison to the other homes in the neighborhood.

I hope this helps...being a life-long Knoxvillian, I know where many of these areas are. I would be honored to assist you in your home search or to give you further adivse.

Please don't hesitate to contact me at your convenience.

Best regards,

Chip Dykeman
Coldwell Banker Wallace & Wallace
865.604.5083 - mobile
0 votes Thank Flag Link Thu Feb 14, 2013
One piece of advice I can give you is to not buy a home where other new homes are being built in the same area. The builders give incentives to new buyers and create competition for when you are trying to sell. Remember that prices rise more for homes that are on the lower end if they are located in the best areas faster than higher end homes.
0 votes Thank Flag Link Thu Feb 14, 2013
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