FAQ


Q. How does Chattanooga’s real estate market compare to the real estate market in the rest of the country?

A. All real estate is local. And the local market is healthy and strong. Prices remain some of the most affordable in the South, interest rates are near historic lows and with a larger number of homes on the market, providing more choices for prospective buyers.

To see up-to-date information about the state of our real estate market and how it compares, click here . Back to Top

Q. Is it a buyer’s market or a seller’s market?

A. It’s a great market all around! Now is the perfect time to buy because there is a great inventory of homes to choose from, but it’s also a good time to sell as real estate prices are showing signs of appreciation.

Market conditions are highly localized. The key is to work with a REALTOR® and see why this is the Right Time, Right Market for you! Back to Top

Q. What’s the long-term forecast for the local market?

A. Of course nobody has a crystal ball but market fundamentals tell us that this is the right time to realize the American Dream of homeownership. Plus, nobody knows how long this ideal market will last.

Homeownership has historically been proven to be an excellent long-term investment, providing both equity and tax benefits over time. Given the leverage you get in purchasing a home, the average return on a five-percent-down payment over 10 years is usually three to five times greater than stock market returns. Back to Top

Q. If you’re looking to sell your home, what should you do to get it real for sale and place it on the market?

A. The first thing you should do is consult with a REALTOR®. They will know how to price your home and how to make it appealing to buyers. Statistics show that homes sold using a REALTOR® sell for 17% more than homes sold without. Back to Top

Q. If you’re looking to buy a home, what are some of the important factors you should consider?

A. Location, price and your own personal financial and family situation all play an important role when considering a purchase. A REALTOR® can provide you with information about neighborhoods, school districts and realistic pricing because of their vast knowledge of the local community. Back to Top

Q. Hasn’t the subprime mortgage mess made it hard for people to get loans now?

A. That’s a common misconception. Lenders are being more diligent about making sure the terms of a mortgage fit a buyer’s financial situation – and that’s a good thing for everyone – but they are still eager to finance home purchases. People are still able to obtain sound financing at rates near historic lows. Back to Top

Q. What type of loan is best for me?

A. Home buyers need to understand their financial wherewithal and shop for the mortgage that bet suits their needs and circumstances. It is very important for buyers to avoid predatory, toxic loans that can trap unsuspecting borrowers into years of financial hardship. Your REALTOR® is uniquely positioned to inform and guide you through the maze of financing alternatives and help you identify lenders of good standing. Back to Top

Q. What are FHA loans?

A. The Federal Housing Administration (FHA) loans are administered by HUD to make homeownership a possibility for more Americans. With the FHA, you don’t need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by allowing for smaller down payments than conventional loans. Anyone who meets the credit requirements, can afford mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan. Back to Top

Q. What are VA Loans?

A. VA mortgages are government-insured loans available to veterans of the armed services, those currently on active duty or in the reserves, and widows or widowers of veterans. Like FHA loans, VA loans have guidelines that allow more people to qualify. Back to Top

Q. What is the difference between the market value and assessed value of a home?

A. Assessed value represents the valuation placed on any property by a county property assessor office for the basis for determining the amount of real property taxes. The market value is how much a property would sell for under normal circumstances. Ultimately, the fair market value is the price agreed upon by a buyer and seller of the property. Also, it is not at all unlikely that there would be a difference between the two values. Back to Top

Q. How can the assessed value change over time?

A. There are all kinds of reasons why the assessed value of a property can change, whether it is because of improvements made to a home or the real estate values have modified. County property assessor offices also assess property on a regularly scheduled timetable. If a property owner disagrees with the county assessed value, he or she can appeal the assessment and should contact the office of their county property assessor. Back to Top

Q. How does the current state of our real estate market affect my assessment?

A. Contrary to negative headlines, the local real estate market is healthy and sound. Our market never experienced the dramatic highs and lows seen in e values remain secure and appreciation levels have steadily ticked along. Back to Top

Q. What is a real estate appraisal?

A. An appraisal is a professional appraiser’s objective opinion of value, but it’s not an exact science so appraisals may differ. For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes. Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer. Back to Top

Q. How has foreclosure affected the local real estate market?

A. Foreclosures are not only a disaster for families but also for communities. REALTORS® are committed to helping people buy – and keep – the home of their dreams and work to ensure that homebuyers have access to the proper information so they can fulfill their homeownership goals.

Our region was insulated from the worst of the mortgage mess because we never experienced runaway appreciation and real estate development. And that speaks to the health and sustainability of the local real estate market.

Buyers really need to understand their own financial wherewithal and the terms before agreeing to any loan. Back to Top

Q. What do I do if am facing foreclosure?

A. You’re not alone if you’re having trouble paying your mortgage. You should work with experts and your lender to find a solution now. If you fall behind and don’t take action, the lender will foreclose on your home. If that happens, you may lose your home and all of the money you’ve already invested in it. The sooner you act, the better chance you’ll have in avoiding foreclosure.

Download this brochure to understand your options and give you tips on how to avoid losing your home. Back to Top

Q. Do I need a REALTOR® to buy foreclosure properties?

A. Buying foreclosed properties can lead to great investment opportunities. However, there are snares that could have you winding up on the wrong side of the law. Contact a REALTOR® experienced in the process for the best results. Back to Top

Q. What is a HUD home?

A. A HUD home is a residential property acquired by the U.S. Department of Housing and Urban Development (HUD). When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. HUD then sells the home as quickly as they can and buyers can often times find some very good deals. If you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. Contact a REALTOR® about HUD homes in the region. Back to Top

Q. What does a home inspector do, and how does an inspection figure in the purchasing of a home?

A. An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house and will make you aware of only repairs that are needed.

The Inspector does not evaluate whether or not you're getting good value for your money. Generally, an inspector checks (and gives prices for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced. It's a good idea to have an inspection before you sign a written offer since, once the deal is closed, you've bought the house as is." Or, you may want to include an inspection clause in the offer when negotiating for a home. An inspection clause gives you an "out" on buying the house if serious problems are found, or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house. Back to Top

Q.What is the new first-time homebuyer tax credit?

A.Learn about the first-time homebuyer tax credit here.

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Have a question you don’t see here? Feel free to contact us.