new construction costs (Knoxville: home, neighborhoods, contractors)

[Mytown]

Not sure if it's happening in the bigger cities or not but be careful you don't get over charged because your moving in to the state from say, Florida. We recently were a victim of price gouging in East TN because we were from Florida and that was just on the excavation part not building. I was told that some contractors are charging double for out of staters. Just be aware and get more than 1 estimate to get a ball park figure of what it should be, not what they think we can afford. Not all of us are cashing in when we make a move to TN who have all this extra money to carry over with us.

I have never encountered this and I work with a lot of builders in the area.

[hiknapster]

Are you from here? My town?

[john t]

Yes of course people price gouge. It's happened to several people I know. One couple from DC were really #@#*!% by a realtor/builder. They got a stucco mcmansion-box full of problems in a very less than desired area. I feel for them because its so difficult to learn the insiders point of view without actually living somewhere for quite awhile. I always tell people to rent for a year to get a feel for a city, you have nothing to loose that way. If you end up liking the city you can then buy the best home for you, if you hate the city, along you go. In this flat r/e market there will always be plenty of choices once you get the feel of a city

[daniellefort]

well i'm not so much talking about paying for something and getting bad results, i'm simply talking about the price increase even before anything is started when i was first told one price and all of a sudden the price increased with no explanation for it. In my case, i simply wanted some rock crushed that's all.

Real estate is a whole different situation where i wouldn't call it price gouging. Price gouging usually means the price goes up simply because of the limited supply or choices available.

That's the problem when you buy something that people build again and again having the same style for the entire neighborhood. It's just a fast way to get them built with no thought or care in the world how it turns out.

[Mytown]

Are you from here? My town?

From here and been selling Real Estate for 17 years here. I have not encountered this with any of the houses I have sold or with builders I work with over the years - shoddy workmanship - buyers picking less than desirable areas - yes, that I have seen, but not out an out price gouging because a builder knows the buyer doesn't know better. Why would a builder sink all that money into something that might not appraise? If this has happened then it should be reported to the Knoxville Board of Realtors, the Home Builder's Association, and the Department of Home Appraisers. I not saying it hasn't, I just don't think it is the norm. This would not be good business practice for anyone because this sort of thing comes back to bite you and any professional realtor or builder would know better.

[gemkeeper]

It seems to me that Mytown has made a good point. If a builder tries to take advantage of a relocating out-of-state client, word will get around and it is bound to hurt his reputation. I would think that most R/E agents would want to stay clear of any builder of that ilk. Always pays to shop around, ask lots of questions of natives AND newbies, and voice your concerns and plans on the forum. Experience of others will help one to make an informed decision.

[john t]

The people I know didn't need loans so there were no appraisals. There are some who just don't care about their reputation and they seem to stay in business for a long long time. Some realtors pitch their own pet projects, if a person is an outsider how would they know whether the project is junk?

Do your research but rent till you get to know a place. You have nothing to loose that way.

[Mytown]

It is true, if you do not get a loan you do not HAVE to get an appraisal but is that really smart? It amazes me that a mortgage company requires an appraisal and title insurance to protect their interests, but buyers will often waive these for themselves. I don't know about you folks, but I am going to be hurting a lot more than most mortgage companies if I purchased a home that isn't worth what I am paying or if I encountered a title problem down the road and lost all my equity plus had to pay attorney fees. Another thing that is going by the wayside is surveys. I have encountered many properties over the years where homes have been built over the property line of a neighbors... not good. All these things are insurance on the front end. You would not think of buying a $30,000 automobile and not having it insured would you? As someone who has seen what can happen I would personally never buy a home without an appraisal, title insurance or a survey. Just my two cents worth... maybe it will save you more.

[hiknapster]

Thanks mytown. I have never owned a home and never realized I should do those things. I bet it will save folks a lot of money in the long run.

[daniellefort]

Here's what happened to my inlaws recently. They recently bought a small mobile home just for a vacation home in TN. The man who lived there had passed away and his daughter who lived in another state just wanted to sell it as there was nobody around to care for the place. when my in laws went to register it, the title was still in the mans name who is now no longer living. Father in law was unable to register it. Now the daughter will have to register it in her name first before my inlaws can and she lives in the Northeast. Now this transaction was done through an attorneys office and realtor so you'd think it would have been noticed about the title problem especially when they all knew the man had passed away. My inlaws do have the bill of sale and all the paperwork to show his ownership of the place so the attorney basically just told him "not to worry about." Well, they are worried about it. they want it to be done right so if they ever want to sell it they can.