Benefits of Buying a Preconstruction Condo: A Guide to Making a Smart Investment

Posted by Jason White on

Are you a property investor who has considered purchasing a preconstruction condo? 

While buying a preconstruction condo may seem like a risky investment, it can offer many advantages for property investors who are looking for a high return on investment. In this blog post, we’ll explore the benefits and drawbacks of buying a preconstruction condo as a short-term rental investment property, as well as the steps involved in the buying process. Whether you’re a seasoned investor or new to the game, read on to learn more about this exciting investment opportunity.

 

What exactly does it mean to purchase a preconstruction condo? 

Essentially, a preconstruction condo purchase is when you buy a property that has yet to be built. This means that you’re purchasing a promise of a future property, with the expectation that it will be completed within a certain timeframe. 

Preconstruction condos are often sold at a lower price point than completed properties, and they offer the potential for appreciation in value before move-in. 

However, there are also risks involved, such as uncertainty of completion date and the potential for project cancellation or changes to plans. 

In this blog post, we’ll explore the pros and cons of buying a preconstruction condo as a short-term rental investment property, as well as the steps involved in the buying process. Whether you’re a seasoned investor or new to the game, read on to learn more about this exciting investment opportunity! 

 

What are the benefits of buying a condo preconstruction?

As a short-term investor, buying a preconstruction condo can offer several benefits. 

Firstly, the lower initial costs and deposit structure can be more manageable for investors, allowing them to save up for the remaining balance over time. 

Secondly, the ability to customize and choose finishes can be attractive, as it allows investors to create a space that will appeal to potential short-term renters. 

Finally, there is the potential for appreciation in value before move-in, which can be a significant advantage for investors looking to make a profit. 

If the real estate market is strong and demand for properties is high, the value of the preconstruction condo may increase before it is even completed, making it a smart investment choice for short-term investors.

 

Buying a preconstruction condo doesn’t come without risks to consider. 

Firstly, there is the uncertainty of completion date and potential delays resulting from unexpected delays due to factors such as weather, labor shortages, or supply chain disruptions.

Secondly, there is the risk of project cancellation or changes to plans. While rare, it is possible for a developer to cancel a project due to financial or legal issues, or for changes to plans to occur due to factors such as zoning regulations or changes in market demand. 

It is crucial to thoroughly research the development company that is managing the pre construction condo project you are interested in. 

This can include researching the developer’s track record of completing projects on time and within budget, as well as their financial stability and ability to secure funding for the project. 

Investors should also inquire about any potential legal or zoning issues that could impact the project’s completion. 

Lastly, there is the lack of physical viewing and inspection of the property. While developers will often provide detailed floor plans and virtual tours, it can be sometimes be difficult to fully visualize the space and get a sense of the layout and flow.

 

What are the Steps to Buying a Preconstruction Condo

If you’ve decided that buying a preconstruction condo is the right choice for you, there are several steps involved in the buying process. Let’s take a closer look at each.

The first step in the preconstruction condo buying process is to research and select a development. Take the time to research different developers and projects, and consider factors such as location, amenities, and price. Not sure where to start?  Researching the developer’s track record of completing projects on time and within budget, as well as their financial stability and ability to secure funding is a great place to start. 

Once you’ve selected a development, it’s important to understand the deposit structure and payment schedule. Make sure you have a clear understanding of how much you will need to put down as a deposit, and when the remaining balance will be due.

Next, review the condo floor plans and amenities. Make sure the layout and size of the unit are suitable for your needs, and consider the amenities that are included, such as a gym, pool, or rooftop terrace. 

Finally, sign the purchase agreement and contract. Make sure you have a clear understanding of the terms and conditions outlined in the contract, and have considered seeking legal advice if necessary.

 

In conclusion, buying a preconstruction condo can offer many advantages, such as lower initial costs and potential for appreciation. However, there are also risks to consider, such as uncertainty of completion date and lack of physical viewing. If you’re interested in buying a preconstruction condo, take the time to research different developments and understand the deposit structure and payment schedule. And as always, consider seeking the advice of licensed professionals while making your long term investing decisions. 

 

Interested in preconstruction condos in Gatlinburg, TN?

Life at Highlands of the Smokies picks right up where one of the most cherished resorts left off – and then some.

‍Every unit boasts amazing mountain views and an open floor plan. With 10’ ceilings and full glass living room and master bedroom walls, the overall grand feel of the Great Smoky Mountains will also live inside your home. 

Click here to learn more about the development.



There is no national housing market. What’s that mean?

Posted by Jason White on

 

Realtor.com reports that “There is no national housing market” What does this mean for you? Let’s dive in.

 

The old adage, “location, location, location,” has never been more accurate. While the national housing market was thriving during the pandemic, things have changed since then. Rising interest rates and inflation have led to localized housing markets that vary from city to city.

 

The good news is that a great home is still a great home, no matter where it’s located. Move-in ready homes are still in high demand, and buyers are willing to pay a premium for them. However, the shortage of these properties means that competition is fierce.

 

According to Selma Hepp, chief economist of the real estate data firm CoreLogic, real estate markets in the Northeast, Midwest, and Southeast are holding up the best.

 

It’s essential to be aware of national trends, but they may not match the homes you’re looking for in the neighborhoods you’re searching in. That’s why we encourage you to stay informed by reading our monthly blogs that discuss market statistics for the Great Smoky Mountains. Our blogs are a great resource for both buyers and sellers in the area!

 

In conclusion, while the national housing market may have been thriving during the pandemic, things have changed. The housing market is becoming increasingly localized, so it’s important to research your specific area of interest thoroughly. Stay informed by checking out our monthly blogs, and happy house hunting!

 

April 2023 Sevier County Real Estate Market Statistics

Posted by Jason White on

Average price saw a decrease to $653,686 from $698,263 in March.Average price has stayed between $641,572 to $753,033 this year. 

Time on market saw a bit of an increase to 73 days for homes that sold during April. Days on the market has been between 60 and 77 days on the market this year. 

Price per square foot saw a decrease to $358 per square foot. Price per square foot has been between $358 and $401 this year. 

 

 

LAND:

The average price for land/lots saw a decrease in price to $95,263 from March’s price at $161,225.

Lots that sold in April spent an average of 144 days on market, which is very similar to March 2022 where lots spent an average of 141 days on the market. 

 

2022 Awards

Posted by Jason White on

We are pleased to announce that we recently won several prestigious awards for production in 2022!

The awards include the Grand Centurion award, the #8 Century 21 Team in the World, and #1 in Century 21 Team in Tennessee.

“We take great pride in providing outstanding service to our clients, along with unique market insight and analysis.  In return, we get to meet some very successful and intelligent people, from whom we also learn a great deal. Working with the excellent human beings on our team is a great pleasure. Sometimes it doesn’t even feel like work.  We are very lucky to have found this career and each other.”

– Jason White

Winning these awards is a significant accomplishment and a testament to our ongoing commitment to providing exceptional service to our clients!

Short Term Rental Property Tax Increases in Sevier County, Tennessee

Posted by Jason White on

If you own a short-term rental property in Sevier County, Tennessee, you should be aware of a recent decision by the county board of commissioners that will increase the property tax rate on these rentals. The decision affirms a 2021 state law that changes the property tax assessment rate for all short-term rentals from a 25% residential classification to a 40% commercial classification. 

 

This will impact over 10,000 short-term rental properties in Sevier County, including those listed on platforms like Airbnb and Vrbo.

 

The county spokesperson has confirmed that this decision affirms a state law that went into effect in 2021 and subsequent guidance from the state Comptroller’s office. The law stipulates that properties used as short-term rentals are classified as commercial properties unless certain exemptions are met. Essentially, properties with a business license that are a short-term rental and not the owner’s principal residence will be subject to the change in classification.

 

Out of approximately 13,000 identified overnight rentals in Sevier County, 2,500 were already being assessed at the 40% rate prior to the resolution. A rental cabin with an appraised value of $500,000 would go from paying $1,850 in annual property county tax to $2,960. The increase is approximately $222 per $100,000 of appraised value on short-term rentals. This increase will generate an estimated $8 million of new revenue for the county.

 

With a county property tax rate of $1.48 per $100 of assessed value, Sevier County maintains one of the lowest property tax rates in Tennessee. 

 

Despite this increase in property tax for short-term rentals, on average, short-term rentals across Sevier County are undervalued by over 53% since the last reappraisal in 2021, according to Sevier County Director of Public Affairs Tyler Basler.

 

The changes will be reflected on tax bills scheduled to go out in October 2023. The image below is the assessment change notice you should receive, If you own a short-term rental in Sevier County, Tennessee.

 

It is important to be aware of these changes and budget accordingly to avoid any unexpected costs.

This information was provided by WATE. You can read the news article here.

Interested to learn more about Sevier County and the surrounding areas property tax rates, click here to do so!




The Lifespan of Appliances for Rental Properties: What to Expect and How to Plan Ahead

Posted by Jason White on

As a short-term rental property owner, it’s essential to understand the lifespan of the rental property appliances.

 

 Knowing how long these items typically last can help you plan for repairs and replacements, ensuring your guests have a comfortable and safe stay. In this blog, we’ll provide an overview of the major appliances found in short-term rentals, their typical lifespan, factors that can affect their lifespan, and signs that you may need to begin buying appliances for your rental property. 

 

HVAC System

The HVAC system is responsible for heating, ventilation, and air conditioning in your rental property. HVAC systems can last anywhere from 10 to 25 years, depending on factors such as proper maintenance, frequency of use, and the type of system. Signs that your HVAC system may need repair or replacement include unusual sounds, strange smells, and inconsistent temperatures throughout the rental.

 

  • Lifespan: 10-25 years 
  • Factors that affect lifespan: maintenance, frequency of use, and type of system
  • Signs you may need to replace the HVAC for your rental property: strange smells and inconsistent temperatures 

 

Water Heater

The water heater provides hot water to your guests for their daily needs, such as showering and washing dishes. The typical lifespan of a water heater is 8 to 12 years, although proper maintenance can extend its life. Signs that your water heater may need repair or replacement include a lack of hot water, unusual sounds, and water leaks.

 

  • Lifespan: 8 – 12 years 
  • Factors that affect lifespan: maintenance 
  • Signs you may need to replace the water heater  for your rental property: leaks or lack of hot water 

 

Refrigerator 

The typical lifespan of a refrigerator is 10 to 18 years. Many things can impact the lifespan of your refrigerator, such as quality of the appliance, frequency of use, maintenance, and power surges. Signs that your refrigerator may need repair or replacement include unusual sounds, difficulty starting, and inconsistent temperature or water flow.

 

  • Lifespan: 10-18 years 
  • Factors that affect lifespan: quality of appliance, frequency of use, maintenance 
  • Signs you may need to replace the water heater  for your rental property: unusual sounds, difficulty starting, and inconsistent temperatures or water flows. 

 

Stove 

 

The typical lifespan of a stove can vary depending on the type of stove, the frequency of use, and how well it is maintained. However, on average, a gas or electric stove can last anywhere from 10-15 years with proper maintenance and care.

 

If your stove is not heating properly, doesn’t light well, you notice rust or corrosion or worn out parts – these may all be signs you may need to begin thinking about buying a new stove for your investment property.

 

  • Lifespan: 10 – 15 years 
  • Factors that affect lifespan: frequency of use and how well its maintained 
  • Signs you may need to replace the water heater  for your rental property: uneven heating, difficulty lighting, rust, broken or worn out parts. 

 

Dishwasher

 

The lifespan of a dishwasher can vary depending on the type, brand, and model of the appliance, as well as how well it is maintained. On average, a dishwasher can last anywhere from 7 to 12 years with proper care and maintenance. Signs that you may need to replace your dishwasher are leaks, strange noises, and poor cleaning performance. 

 

  • Lifespan: 7 to 12 years 
  • Factors that affect lifespan: care and maintenance 
  • Signs you may need to replace the water heater  for your rental property: leaks, noise, and poor cleaning performance 

 

Washer and Dryer

Providing a washer and dryer for your guests is a convenient amenity that can help increase bookings. The typical lifespan of a washer and dryer is 10 to 14 years, but proper maintenance can extend their life. Signs that your washer and dryer may need repair or replacement include unusual sounds, a lack of function, and leaks.

  • Lifespan: 10 to 14 years 
  • Factors that affect lifespan: property maintenance 
  • Signs you may need to replace the water heater  for your rental property: lack of function and leaks 

 

Other Systems and Appliances

Other systems and appliances found in short-term rentals, such as smoke detectors and air purifiers, can vary in lifespan. Smoke detectors should be replaced every ten years, while air purifiers can last up to five years. Proper maintenance and regular testing can help ensure these items are functioning correctly.

 

Understanding the lifespan of the various systems and appliances in your short-term rental property is crucial for maintaining the comfort and safety of your guests. 

Regular maintenance and replacement of these items can help prevent unexpected breakdowns and keep your rental property in top condition, renting consistently with no unexpected downtime.

 We recommend consulting with professionals for maintenance and repairs to ensure the longevity of your property’s systems and appliances. Read more about how to keep your investment property in tip top shape here! 

March 2023 Sevier County, TN Real Estate Statistics

Posted by Jason White on

Average price saw an increase to $698,263, down from $713,446 in March of 2022.

  • February 2023 – $641,572
  • January 2023 – $735,033
  • December 2022 – $829,234

Properties spent an average of 60 days on the market, down from 70 in March of 2022.

  • February 2023 – 77
  • January 2023 – 68

Price per square foot saw another slight increase to $401 per square foot, which is higher this year, than in March of 2022 where it sat at $390.

  • February 2023 – $395
  • January 2023 – $373
  • December 2022 – $369

 

Sevier County Market Statistics for Land

The average price for land/lots saw an increase to $161,225, up from $118.394 in February, and 56% higher than last March’s average price, which was $103,213.

The average days on market saw a decrease to 175, up on 4% to last March at 168 days on the market.

Annual Police Department Reports: Sevierville & Pigeon Forge

Posted by Jason White on

 

If you’re considering investing in a short term rental property in these areas, you may be wondering about the safety and security of the neighborhoods and the involvement of the police force inside the communities. 

Fortunately, both the CIty of Sevierville and the City of Pigeon Forge release an Annual Report which give us details about crime trends, community involvement, organizational charts, expenditure, and other updates.

 

Below are crime statistics for 2022 and beyond for both the City of Pigeon Forge and the City of Sevierville 

 

Pigeon Forge 

City of Sevierville

 

Police community engagement is a proactive approach to policing that emphasizes collaboration and partnership-building between law enforcement officers and the communities they serve. This can help to improve communication and reduce crime 

Here’s what both departments had to say about community involvement. 

 

Pigeon Forge

“In 2022 we continued to maintain a slim but healthy community outreach. We participated in just under 50 events. It was important to us that our community see us as active and willing to engage. We used every opportunity to meet new people, strengthen existing relationships, educate the public on safety and listen to our community members.”

 

City of Sevierville

“The Community Resource Unit is composed of one Lieutenant, one Sergeant, one bomb detection K9 team, two officers, and six reserve officers. There was a vacant officer position which was filled in December. This unit is responsible for special events, problem areas, senior housing complexes, government housing complexes, public education, as well as all safety and prevention programs.

 

City of Sevierville Special Event Hours:

Special Event Hours 2,185
Security Detail Hours 440
Meeting Hours 101.5
School Resource Hours 204
Patrol Hours 192
Training Probationary Officer Hours 88
Number of Government Housing Background Checks 288

 

You can read the City of Sevierville Police Department Annual Report here.

You can read the City of Pigeon Forge  Police Department Annual Report here. 

 

3 Common Pests Found in East Tennessee Short Term Rentals and How to Prevent Them

Posted by Jason White on

As a short-term rental property owner in East Tennessee, it is important to prevent pest infestations. Pests not only damage your property, but they can also negatively impact your guests’ experience. In this blog post, we will explore how to prevent their infestations in short-term rental properties.

East Tennessee’s warm and humid climate provides an ideal environment for various pests to thrive, including flying insects. Some common insects found in short-term rentals in East Tennessee are:

  • Carpenter bees are a common pest found in East Tennessee homes. They look similar to bumblebees but can cause significant damage to wooden structures, including decks, fences, and outdoor furniture. 
  • Carpenter ants are another common pest found in East Tennessee homes. They can cause significant damage to wooden structures, including walls, floors, and furniture. 
  • Eastern subterranean termites are a common pest found in East Tennessee homes. They can cause significant damage to wooden structures, including walls, floors, and foundations. These termites live in the soil and feed on wood, so it’s important to maintain proper moisture control to prevent infestations. 

It’s important to address any pest infestations in your home promptly to prevent damage and avoid further costly repairs.

Regular cleaning, maintenance, and inspection practices are essential to prevent pest infestations in short-term rentals. 

Below are some tips to help keep insects away:

  • Seal entry points and install screens on doors and windows. Gaps and cracks in walls and doors allow insects to enter.
  • Close doors and windows when not in use to prevent insects from entering.

In addition to regular cleaning, maintenance, and inspection hiring a professional pest control service can help eliminate pests and prevent future infestations. 

Benefits of hiring professional pest control services are:

  • Experienced technicians who can identify and eliminate pests effectively.
  • Customized treatment plans to address your property’s specific pest problems.
  • Regular inspections to prevent future pest infestations.
  • Pest control companies may set up pest monitoring stations to detect any signs of pest activity before a full infestation occurs.

Pest control companies can help prevent future infestations and keep your property pest-free. It’s important to work with a reputable and experienced pest control company to ensure that they use safe and effective methods to prevent pest activity.

Preventing pest infestations in short-term rentals in East Tennessee is crucial to ensure the comfort and safety of your guests. By following the preventative measures discussed in this blog post and utilizing professional pest control services, you can keep your property pest-free. 



Property Owners: How to Keep Your Short-Term Rental Property in Great Condition

Posted by Jason White on

Owning a short-term rental property can be a great investment, but it comes with its own set of challenges.

One of the most important aspects of owning a short-term rental property is maintaining it properly.

A well-maintained property can provide a positive experience for guests and increase the property’s value. 

In this blog post, we will discuss some tips for keeping your short-term rental property in tip-top shape!

 

Maintenance

Creating a maintenance plan is an essential step in keeping your short-term rental property in great condition.

As a short-term rental property owner, it is essential to regularly inspect your property to ensure that it is in good condition for guests. By addressing issues promptly, you can minimize the impact they have on your guests and prevent them from becoming larger, more expensive problems. Here is a list of inspections that you should complete on your short-term rental property:

 

  1. Electrical system inspection: The electrical system should be inspected at least once a year to ensure that it is in good working order. This inspection should include checking outlets, light fixtures, and the circuit breaker box.
  2. HVAC system inspection: The HVAC system, including air conditioners and heaters, should be inspected and serviced at least twice a year to ensure that they are working efficiently .
  3. Roof inspection: The roof should be inspected at least once a year to ensure that there are no leaks or other issues that could cause damage to the property.
  4. Exterior inspection: The exterior of the property should be inspected regularly to ensure that there are no issues such as cracks, leaks, or other damage.
  5. Interior inspection: The interior of the property should be inspected regularly to ensure that there are no issues such as leaks, cracks, or other damage. This inspection should include checking for water damage, mold, and pest infestations.
  6. Smoke detector and carbon monoxide detector inspection: Smoke detectors and carbon monoxide detectors should be inspected at least twice a year to ensure that they are in good working order.
  7. Fire extinguisher inspection: Fire extinguishers should be inspected at least once a year to ensure that they are in good working order.

If you are an out of state owner your property management company will likely help you complete any inspections necessary to maintain the integrity of your home.  

 

Cleaning

Cleaning is an essential part of maintaining a short-term rental property. A clean property can make guests feel comfortable and help them enjoy their stay!

Regular cleaning between guests is essential to maintain a short-term rental property’s condition and ensure that it is safe and hygienic for guests. It is also important to clean and sanitize high-touch areas such as door handles, light switches, and remote controls.

Deep cleaning should also be done regularly to prevent future issues and maintain the property’s overall condition. 

 

Repairs 

It is important to address any repairs or maintenance issues promptly to prevent them from turning into larger problems. Be sure to keep a list of reliable contractors on hand for any necessary repairs that require a professional.

  1. Plumbing issues: Plumbing issues such as clogged drains, leaking pipes, and broken toilets are common in rental properties. These issues should be addressed as soon as possible to prevent further damage to the property.
  2. Electrical issues: Electrical issues such as faulty outlets, broken light fixtures, and malfunctioning appliances can be dangerous if left unaddressed. These issues should be fixed as soon as possible to ensure guest safety. HVAC system issues:
  3. HVAC systems such as air conditioners and heaters may need repairs if they are not functioning properly. Appliance repairs: Appliances such as refrigerators, ovens, and dishwashers may need repairs from time to time. These repairs should be addressed promptly to prevent further damage to the appliance and ensure guest satisfaction.
  4. Roof repairs: Roof leaks and other roofing issues can be expensive to repair if left unaddressed.
  5. Flooring repairs: Flooring issues such as torn carpeting or cracked tiles can make the property appear unkempt and may be a safety hazard. These issues should be addressed as soon as possible to ensure guest safety and maintain the property’s appearance.
  6. Painting and drywall repairs: Paint chips and drywall damage can make the property look shabby and worn. These repairs should be addressed as soon as possible to maintain the property’s appearance.

 

Landscaping

Maintaining the outdoor space of a short-term rental property is just as important as the inside. A well-maintained outdoor area can create a positive first impression for guests. 

Keep the lawn trimmed, bushes trimmed, and remove any debris or garbage. 

Regularly check outdoor lighting to ensure that the space is well-lit and safe for guests.

 

Maintaining a short-term rental property is essential for both the guest’s experience and the property’s value. By creating a maintenance plan, cleaning regularly, addressing repairs and maintenance issues promptly, and maintaining the outdoor space you can keep your property in great condition.