July featured ‘Cabin of the Month’ in Sherwood Forest

Sherwood Forest’s “Splash Lodge” is our featured “Cabin of the Month” for July!

Splash Lodge is one-of-a-kind spacious 11-bedroom luxury cabin with all the amenities you could ask for or think of – a fantastic investment, and the cornerstone of the Sherwood Forest Resort! It is positioned right beside the resort pool for flat huge parking of buses and lots of guests! The drive to the resort offers easy access and no winding roads. With the most dramatic grand floor plan of the large cabins, it is open and airy. You have a large over-sized kitchen and a dining area that can accommodate up to 44 guests. The cabin also comes equipped with a game loft, a game room, and a theater that is second to none offering a 60′ TV- luxurious tiered seating! Hot tubs are located on the outside decks, but the best of all: a huge indoor pool anchors the fun! It absolutely doesn’t get any better than this!

Over 8,000 square feet of the most upscale design and appointments possible. This cabin is sold fully furnished. The owner’s expectation is this cabin will bring in gross rental of $300,000 by the end of the year. (The owner has another large cabin that generates this level of revenue and this cabin has just been switched to that same program.)

To schedule a showing at this cabin, call my team line at 865-654-2111. To learn more about the cabin, click or tap here.

Introducing Lake Haven Resort at Douglas Lake

As we work our way through the challenges with the coronavirus, one question we are frequently asked is how the real estate market here is doing. Before this happened, we were in a sellers’ market due to a low number of properties for sale and a high demand among buyers. The result of that sellers’ market has been a strong focus on new construction with many new construction projects planned for this year.

That hasn’t changed. The need for new residential and vacation cabins is still there, and the good news is that there are developers and builders working to meet that demand. One of the areas we have been working with developers is a new resort at Douglas Lake. We are very excited to announce Lake Haven Resort as our most recent construction development project!

Work has already begun to create this gated community. Several of the cabins planned for the resort in the first phase of construction will have lake views in a high-ridge pristine park-like setting. These cabins will be built as one and two bedroom homes that can be placed on an overnight rental program with gross rental income projections of up to $40,000 depending on how much you use the cabin for yourself. As we move into the second phase, owners of cabins built in the current first phase will have the first option on owning in the second phase.

The purchase price for these cabins starts at $199,000 and we have several lenders who will finance the construction project. Contact us to find out more about this project and see if it is right for you!

Vacation rental cabins provide great investment opportunity

Our real estate market in the Great Smoky Mountains is known among investors as one of the top 10 places to invest for overnight rentals. Vacation cabins are incredibly popular, and we attract millions of visitors every year. What makes this region such a draw for so many is the variety of offerings. We have the Great Smoky Mountains National Park at our doorstep. Pigeon Forge and Gatlinburg work to be the absolute best at hosting festivals, parties, and other events. Outside of the holiday festivities which always leave our rental market “sold out,” our local communities play host to car shows, concerts, and all sorts of other activities throughout most of the year. On top of that, our local attractions – Dollywood is well known, but also the museums, go-cart and miniature golf, and many other family-themed local businesses that cater primarily to our visitors – provide plenty of fun and entertainment.

So over the years, the vacation rental cabins have added to the experience of being in the mountains. Our rental companies have worked hard to continually develop the cabin model so that it best accommodates guests’ needs, from everything to including game rooms with pool tables to the eventual construction of indoor swimming pool areas within cabins. The goal has always been to make the cabin as appealing as possible to guests so that it stays booked as many nights of the year as possible.

If you’ve been seriously thinking about buying a vacation rental cabin and have been watching our market these last few months, I’m sure you have noticed the trend of our region as a sellers’ market hasn’t slowed down from a year ago. In an article I wrote a year ago, I shared with you that the number of available cabins on the market had begun to slow. Since then, we’ve seen that number continue to decline while the prices have continued to climb. As the prices have reached a point that is almost in line with the price to build a new cabin, we have seen building begin to make a comeback this year.

The good news in this is that even as the prices rise, the number of tourists visiting our region has risen with it. What’s more, we’ve seen the number of people staying a little further outside Pigeon Forge rise with it. In March, local media were reporting record numbers of visitors in places like Wears Valley, as there are ways into the National Park from that side of the county that have begun to be discovered.

For sellers, the important thing to remember is that as construction continues to ramp up, the window of opportunity to sell your cabin will begin to close. Eventually new construction will be as appealing as buying something existing, so we expect to see prices level off – not drop, but stop climbing as buyers shift to a building focus. For buyers, the important thing to remember is that even though the deals of yesterday are gone, cabins are still a very strong investment option thanks to our thriving tourist industry.

If you are planning to buy or sell a cabin, or build a cabin and would like to more about the current market, my team and I are always here to help! Call or text us at 865-654-2111 and we will be glad to answer any questions you have!

Large acreage site could be perfect development opportunity!

This incredible large tract of property located adjacent to The Great Smoky Mountains National Park could be the perfect development opportunity, if you’re looking for a unique investment. The tract is very close to the Greenbrier entrance of the Great Smoky Mountain National Park, Gatlinburg, the Rocky Top Sports Center and other major attractions in our region. This nearly 38 acre tract with incredible Mountain views, contains approximately eight acres of pasture, a mountain stream, and some basic road ways already cut in. This tract is ideal for private development, potential cabin development , campground site, equestrian activities. Contact us by phone or text at 865-765-6157, 865-680-5850, or 865-654-2111 to request to see conceptual plans for other developmental ideas. These engineered conceptual drawings offer insight for possible development.

To learn more about this property, tap or click here.

Building is making a comeback

As we reach a point where listings are scarce, we are entering a new season where building is making a comeback! It is an exciting time, as we have not had much new construction since the downturn more than 10 years ago. Since that time, it’s been cheaper to buy than it has been to build, but these past few months we have seen that trend began to shift. The number of residential properties for sale in our market is the lowest it’s been in quite some time. This has resulted in prices – especially for vacation rental cabins – increasing significantly, finally reaching a point where they are selling for amounts during the peak times in the early 2000s.

The top 3 reasons to choose building over buying

Over the last year, we’ve seen many buyers become discouraged with the market prices, which is understandable. But if owning a vacation cabin is something you’d like to pursue, there are a lot of great reasons to consider building. The best reason to pick building over buying is that you can create your cabin to meet the current trends that make it as profitable as possible. For example, a cabin with an indoor pool will gross significantly more than a cabin without one, and there are options for building a cabin with an indoor pool at a price that makes sense. It doesn’t even have to be a big cabin like it once did as the price for building a 1-2 bedroom cabin is much more in line with where the prices for buying an existing cabin are now. Indoor pools pay for themselves.

Secondly, you can pick your location. That doesn’t sound like a big deal until you consider the fact that with so few cabins, the ones in the best locations that are priced correctly will have offers on them even before they are listed due to the high demand, or multiple offers on them within a day or 2 of being listed. But there is an abundance of lots in a variety of places and many of these have fantastic views. So with the number of lots so high, you can almost assuredly find a place that will have the surroundings you want, whether that be a wooded area or one up on top of a mountain where your guests can admire the view.

Third, lenders are providing competitive options for building as it becomes more popular. We’ve had several lenders reach out to us about their construction loan options in the last few months, some of whom have revamped what they’re doing to keep up with the changing market.

If you haven’t found the vacation cabin you are looking for, building may be the best option for you. We’d love to talk with you about how we approach new construction and help you find the perfect lot for your goals!

(Or if you just want to know more about the pros and cons of building, we are here to help with that, too!)

Selling in a sellers’ market can mean increasing your rental income

Many of you who have been keeping up with my monthly articles know that our market here in the Great Smoky Mountains is a sellers’ market, particularly in the area of vacation cabins that provide rental income. A good cabin with strong rental income potential – even when it isn’t already performing at the level that it can be producing – are under contract with a buyer in about a week. In some cases, real estate agents in the Smokies have buyers who are waiting for a cabin that fits their goals even before we get the listing, and so it’s not uncommon these days for a rental vacation cabin to be sold before it’s listed. It’s also not uncommon for a cabin to get multiple offers within a day or two of being listed and then being sold for the “highest and best” offer shortly after.

For those of you who own a cabin and are thinking about selling, this is awesome news! It means you can probably sell the cabin for quite a bit more than what you paid for it if you bought it after the housing market crash nearly 10 years ago. And if you bought it before the crash, I have great news for you, too: our market is reaching the price levels of that time, so you can sell it for what you paid. Just recently, our MLS saw a 2-bedroom cabin listing in Starr Crest for a little over $400,000. I haven’t seen a 2-bedroom cabin of that size around here go for that much since before the market crash in 2008!

Increasing your rental income

If you love your cabin and are blessed by the value its rental income is adding to your budget, maybe it’s time to start thinking about how you can turn that cabin into an even bigger profit. Many of our clients who worked with us during the downturn are now reinvesting their profits from the sale of their cabin into a bigger cabin, or one with better amenities such as an indoor swimming pool, that is opening up the opportunity for them to earn more rental income.

My staff and I would enjoy the opportunity to talk with you about how this works and determine if selling your cabin to buy a newer one is something that would be a great fit for your financial goals.

Call me at 865-765-6157 or Greg at 865-643-2103 and we will be glad to show you how you can increase your rental income.

Mountain home can be the perfect rental investment!

Our featured “Cabin of the Month” for February is this beautiful private mountain homemountain home situated in the heart of Wears Valley! Its gorgeous mountain views from the double back deck and an open spacious floor plan are perfect for entertaining a large group. With its 4 bedrooms each set up as master suites and large game room, this mountain home makes for the perfect overnight rental!
Conveniently located just 15 minutes from Pigeon Forge, this mountain home provides instant access to the newly opened Foothills Parkway addition! Located on easy to drive roads, plenty of privacy, and a mountain view all make this home a dream getaway for you and your guests!
If you’d like to know more about this property, click here.

If you’d like to schedule a showing at this mountain home, call or text me at 865-765-6157 or call or text my support line at 865-654-2111.

Custom built lodge offers investment potential

custom built lodge

This featured “Cabin of the Month,” a custom built lodge in Wears Valley, can easily be converted into an investment.

You’ll admire the stunning long range mountain views from this custom built lodge retreat located just 15 minutes from the Pigeon Forge Parkway and only 5 minutes from the “back door” entrance to the Great Smoky Mountains National Park.
Situated in the heart of Wears Valley, this 3-bedroom, 3-bath custom built lodge is built with soaring cathedral ceilings and walls of glass that give dramatic effect to the great room. Anchored by a handsome mountain stone fireplace, the custom built lodge’s spacious open kitchen flows through to the dining area with plenty of seating and space to entertain large groups. Views can be had from every room and every angle of the interior. This custom built lodge’s generous floor plan offers a private lofted master suite with a walk-in closet, bidet, dry cedar sauna, and attached office. The home’s 3 bonus rooms, recreation room, and wet bar are offered in the fully finished basement.
Outside, enjoy the landscaped yard and hundreds of feet of the spacious airy decks with multiple covered porches. This custom built lodge was built by the developer of Dogwood Farms for his own personal get-away- which means the attention to detail and quality will not disappoint. The unique and extremely rare pecky cypress tongue-and-groove gives this cabin the a rustic feel that provides Smoky Mountain living at its best! Gently rolling and level lot for a house seat, gives you room to romp with over 8 acres of your very own National Park-esque setting and is 100 percent private accompanied by an outdoor custom fire pit. The lot’s extra acreage offers actual build-able lots for additional cabins that would enjoy this same fantastic view.
Lastly, the cabin has recently received some updates, including a new roof, new stain, re-surfaced driveway, recently upgraded HVAC with 3 separate units (one for each floor), on demand gas hot water heaters, new main level carpet and porcelain tile, and updated bath plumbing, and lighting fixtures. This custom built lodge is move in-ready or just a few steps away from becoming a cash flowing second home!
To learn more about this property, click here.

If you’d like to schedule a visit to see the custom built lodge, please call me at 865-765-6157 or my support line at 865-654-2111.

Sherwood Forest resort investment cabin offers amazing opportunity

Our featured “Cabin of the Month” is this amazing investment cabin located in Sherwood Forest resort!

Sherwood Forest resort in Pigeon Forge is one of the top rental vacation investment cabinresorts in the Great Smoky Mountains! This 4 bedroom investment cabin comes with its own indoor pool and full theater setup, providing your guests with the very best of amenities needed to make an outstanding rental experience. Indoor pools in rental cabins generally pay for themselves, and cabins that have them can produce significantly more than those that don’t because they continue to attract guests in the cold winter months at the beginning of the year.
This fantastic investment property is only 5 years old and has a low HOA fee.
To learn more about this investment cabin, click here.

To schedule a showing at this investment cabin, call our office at 865-429-2121 or my support line at 865-654-2111.

Solving the appraisal challenge in an increasing market

When buying a home or vacation cabin, one of the most crucial steps in the process if you’re working with a lender is the appraisal. Appraising the value of a property can be one of the most challenging, and probably the most stressful, aspects of the process for buyers. This can be especially true in a market where appraisal values don’t reflect where the market is at in terms of purchase value. As I discussed in last month’s article, this is mostly because lender appraisers are looking at the value of the property in a different way than everyone else, and with a different purpose. The purpose of a lender appraisal is to determine how much the lender can sell the property for in the event of a foreclosure. So even though the buyer is paying for the appraisal, the appraiser making the determination is actually working for the lender.

In our market, as we continue to work with a low number of properties for sale, the sales price of cabins has continued to rapidly increase over the last 12 months. We’ve seen a slower pace on our local residential market, but home values are also increasing. If you as a buyer have an appraisal that comes in under the offer price, that doesn’t mean you won’t be able to buy the home. You and your agent have a few different options to help you work out a solution with the seller.

Ways to address the appraisal

The first thing I tell my buyers when the appraisal comes in lower than the purchase price is, “Don’t panic.” We look over the appraisal report and re-evaluate our own comparable group of sold listings to see if we’ve missed something about the property. An appraiser can go back as far as 12 months, and is required to first use anything that’s sold within the same subdivision or resort community. The appraiser is limited on what he or she can do to review those sold properties. They rely heavily on MLS and tax records, so when those documents aren’t completely up to date, it can skew the data in a way that might hurt your appraisal.

Once we are certain our offer was appropriate for the market, if we’re comfortable with it we will ask the seller to agree to reduce the price to match the appraisal value. Remember, the lender won’t borrow on more than what the home is determined by the appraiser to be worth, so if the seller won’t lower the price then the next choice will be to see if we can split the difference with the seller or simply agree to pay more out of pocket. So for example, if the purchase price is $200,000 but the appraiser determines the value of the property to be $190,000, then you would have to either get the seller to agree to reduce the price by up to $10,000 or work out how to pay that amount out of your own pocket.

As a last resort, we can try to work with the lender to resolve it, but the truth is it is very hard to get an appraisal value overturned once it has been determined. We absolutely cannot pressure appraisers to price the appraisal value of the property at the amount a buyer offers a seller.

Next month, I’ll share some ways I help sellers to price their property correctly so that the appraisal value meets the expectations correctly. In the meantime, if you have questions about appraisals or anything else regarding the local real estate market, I and my staff are always available!