Fannie Mae First Look Initiative Program and its Negative Effects on our Real Estate Market

I primarily deal with buyers and my main objective is to locate the best deals I can find for those buyers that still meet their list of stated criteria. Naturally, a majority of these are foreclosures and short sales. I have represented buyers in the purchase of several Fannie Mae owned properties in the past. Generally speaking, I have no major compaints about how those were handled in the past. The local real estate brokers handling the Fannie Mae owned properties (primarily Re/Max All Pro in Gatlinburg) are very competant and do a very good job on their end marketing the properties, paying attention to the details, and overall doing things in an ethical and professional manner. Now, they along with local real estate agents representing buyers are faced with what I consider an absolute terrible policy - “The Fannie Mae First Look Initiative”.

Determining the Different Classification of Buyers Under the Fannie Mae First Look Policy

The Fannie Mae First Look program was implemented beginning around March 2010 in our area and has just now become prevalent in our market where all Fannie Mae properties are subject to the First Look Initiative. Essentially, this program creates a series of time limits/deadlines for various types/segments of buyers to purchase properties:

• Owner Occupants and people using the property as their primary residence OR entities using public funds (non-profits, local housing and community development agencies) must wait until the property has been officially listed for sale for 5 days before offers are considered.
• People or entities purchasing the property as an investor or second home must wait 15 days before their offers will be considered.

This policy, while it may have some merits in certain locations, neighborhoods, or developments, is an absolute nightmare for the overnight rental market in Sevier County - including the areas of Pigeon Forge, Gatlinburg, Sevierville, etc. In my opinion, there are several major flaws with the policy and how it is implemented. First, the policy no matter where it is implemented goes against my free market ideals and logic.

Lacking Free Market Principles and Discriminating Against Investors and Second Home Buyers

A property, in my opinion, should be able to be sold under the same conditions and terms to anyone who has the ability to purchase the property. No matter their race, age, background, sexual preference, or their purpose for buying the property (owner occupant, investor, or second home). There should be absolutely no discrimination and the seller should look at an offer essentially blind of who the buyer is other than the terms of the offer and their capability to perform under those terms. Fannie Mae’s First Look Initiative obviously violates these free market principles that I believe are essential to our country.

The Sevier County Cabin Market Adversely Effected by Policy & Incentive for Fraud or Deception

Second, our market area is comprised of an overwhelming number of foreclosure cabins utilized as overnight rental properties (investment properties) or second homes. This includes a VERY substantial portion of our market. By implementing the Fannie Mae First Look Program for these properties it creates situations where fraud is actually more prevalent. The likelihood of a buyer saying they are using the property as a permanent residence/owner occupied) is surely compounded so they can “jump the deadline” in front of the “investors” waiting to make an offer. Fannie Mae has tried to limit this by requiring buyers to sign a form that states in part:

“In the event the I falsely represent any statement in this certification, I shall pay Five Thousand Dollars ($5,000) to Seller as liquidated damages, which amount shall be in addition to Sellers right to retain any earnest money deposit and any liquidated damages held or covered by the Seller pursuant to Section 19 of the Real Estate Purchase Addendum or any other remedy available to Seller at law or equity.”

Not only do the buyers have to sign a document stating the above, but the listing agent and the selling agent is also required to sign documentation stating things such as:

“Listing broker/agent is hereby notified that if, for any reason, you have concern that the Owner Occupant Certification made by the PURCHASER(S) or SELLING AGENT is false, misleading or a misrepresentation of the truth that you should report this concern to your Fannie Mae sales representative or Asset Management Provider.”

This sounds like they are requiring the listing agent to be a snitch if they “for any reason” doubt the legitimacy of the buyer(s) claim to be purchasing the property as an owner occupant. The listing agent is required to report any concerns to the proper entity. Luckily, I am not a listing agent of Fannie Mae properties. How am I to get in the head of a buyer and know their intentions on a property?

Additionally, if a listing agent raises concern and that concern is unfounded, one would think the buyer would not be too pleased if the sale would fall apart and there could be additional repercussions to the listing agent. Also, while representing a buyer, an agent must sign a document stating in part they have “not knowingly submitted to Seller the sales contract and Real Estate Purchase Addendum for the above referenced property on behalf of an investor purchaser.” I typically take the word of my client as long as I find it to be reasonable and what I consider truthful, but I certainly don’t want to be negatively effected if I am not able to understand the exact intention of the buyer(s).

There is no doubt people will claim to use the property as their primary residence when in reality they will not. I have already heard of instances exactly described as above regarding the Fannie Mae First Look Initiative policy. It is a terrible and unfair practice to implement in the first place and then the fines ($5,000+) to enforce their already unfair policy is a disgrace in my opinion.

Disadvantages to Investors - the Primary Buyers of Cabins in the Smoky Mountains

The other major factor is the 15 day “waiting period” for investors. I consider one of my best market advantages as a Realtor here is knowing the market well and quickly recognizing the properties that fit my clients’ needs and investment objectives. With this 15 day waiting period, it not only practically eliminates my market advantage to quickly notify clients and distribute information and analysis quickly, but it also creates a situation where Fannie Mae will likely “stack offers” and create multiple offer situations. Admittedly, part of my concern of this is because it will adversely effect my business, but it also makes it more difficult for my clients to get their offer(s) accepted.

Essentially, by establishing the 15 day “waiting period” it creates an auction like environment where there are multiple bids and everyone is required to present their “highest and best offer”. Statistically, of my clients, they are MUCH less likely to obtain a property in this type of scenario and the more offers the lower their chances. I sincerely try to obtain the best possible price and terms for my client and when it becomes a situation where there are 5+ offers this is nearly impossible to achieve. There seems to always be an agent out there looking to “just make a sale” and do whatever it takes for the buyer to get the property - no matter if it is higher than past comparable sales.

Being of the free market belief I can’t really complain that Fannie Mae “stacks offers” in some scenarios - as they should try to obtain the highest possible price. One must remember Fannie Mae is a Government Sponsored Entity (GSE) - not a private corporation. The major issue I have is distinguishing two different classes - investor/second home buyers and owner occupied. If a bank stated that they will consider all offers (no matter who they are from) once the property has been on the market for a set number of days (for instance five days) I wouldn’t have nearly as much of an issue. I understand they are trying to obtain the best possible price as the seller and that is their right. However, in my opinion, it is NOT their right to distinguish WHO should be able to submit offers and when - especially being a government sponsored entity.

Government & GSE’s Favor Owner Occupants over Investors

The legislation and policy enacted by our government and GSE’s seem to definitely favor owner occupants. In reality, the way to truly clean up the foreclosure crisis is to open up the same opportunities for investors and second home owners. For instance, the tax credit that just recently expired wasn’t offered to investors or second home owners. Not that I advocate the distribution of tax payer dollars to credit home buyers, but opening it up to investors/second home owners would have been a more effective way of reducing the inventory of foreclosures and giving incentives for more investors to purchase property. The Fannie Mae First Look Policy is following the same path of failed logic.

Initial Confusion Over Deadline Dates & When Offers Could Be Submitted

Among the other problems associated with the policy is when the deadlines/waiting period started and ended. At first it was extremely unclear - some places indicating it was when it was officially listed in the MLS and others when a listing agreement was signed, or when it was posted on the Homesteps.com (Fannie Mae owned properties) website. Finally, and to the credit of Fannie Mae/Homesteps they did clear this up and have made it uniform by posting the days on their website and that is the “official” source.

What will be a result of this however, will hurt the buyer agent industry. Buyers instead of going to their Realtor to find information will go directly to the Fannie Mae website. I’m not necessarily saying that Fannie Mae is trying to eliminate or reduce the use of buyer representation, but it certainly will have an adverse effect. Buyers are unquestionably (in my opinion) better represented by a party looking out for their best interests. A buyer is more likely now to call up the listing agent directly and likely be represented in a facilitator/transaction broker capacity at best. This puts the listing agent in a difficult situation if they have multiple offers from clients not represented by a buyers agent as far as offering price.

I could go on for several more paragraphs or even pages about the flaws I see with the government mandated policies regarding housing and Fannie Mae. One such example is Fannie Mae href=”http://www.politicsdaily.com/2010/05/11/fannie-mae-bailout-mortgage-giant-wants-more-taxpayer-billions/”
target=_blank
mce_href=”http://www.politicsdaily.com/2010/05/11/fannie-mae-bailout-mortgage-giant-wants-more-taxpayer-billions/”>requesting another $8.4 billion in bailout money from the taxpayers after reporting a loss of $11.5 billion in the first quarter of 2010. Continuing on would likely bore my readers into dozing off at their computers, so I will hold back and save that for another blog!

To read the form required (and referenced above) to be signed by buyers claiming to be using a Fannie Mae owned property as their primary residence please click here: http://www.wearsvalleyhomes.com/FannieMae-OwnerOccupantCertification.pdf

My wife, Brooke, and I absolutely love going into Cades Cove within the Great Smoky Mountains National Park. It is hands down our favorite place within the Smokies - so much so that we got married there in the Missionary Baptist Church.

It had been a while since we traveled into Cades Cove, so we decided to go for a trip and take advantage of the fall colors. Brooke is also training for a half marathon and she figured there couldn’t possibly be a more scenic training run than the eleven mile Cades Cove Loop! As we drove into Cades Cove we passed through a section of heavily wooded hardwood trees that were some of the most spectacular shades of yellow I have ever seen. I remarked to Brooke that we have to stop by on the way back to get some pictures. Our plan was for me to drop her off right at the gate so she could start her run and have a good indication of the distance she had ran. She told me to set the odometer and drive exactly 10 miles so she could time herself on her run. With this setup it was assumed that I could drive the eleven mile loop faster than she could run it….We were wrong!

With traffic in Cades Cove heavy due to the peak leaf season, I drove around and stopped several places to take photos and enjoy the scenery. I couldn’t pull off and travel on Sparks Lane or Hyatt Lane (which we usually do) because it would have made the mileage wrong for her run. I just couldn’t resist though, so I pulled off on Sparks Lane briefly and saw some horses in the pasture that I thought would make a good photo. It made me sit back and think what it was like for the early pioneers in Cades Cove and how they tilled the land and the livestock they raised. I have read several books on Cades Cove and each one makes me more and more fascinated with the area. After calculating the short detour into my odometer calculation I headed back on the main Loop. I was thinking that at some point either Brooke would pass me or I would pass Brooke. Apparently, my 10 minute or so stop on Sparks Lane was all the headstart Brooke needed to pass me up and never look back!

I stopped at several other spots on the road that had particularly good views or wildlife. Being in late October, there weren’t any bears to be seen during our visit like there usually are during the summer months. According to a park ranger they hadn’t seen any in a few weeks. The turkey were plentiful and I also saw about a dozen deer during the drive.

Overall, it was a good trip to just get away from work for a minute (and to celebrate my birthday which had occurred the day before but I was working) and reflect back on what it was like in our area over a hundred years ago. We probably missed the absolute peak leaf viewing by about a week, but the colors were still gorgeous. While showing property in Wears Valley, Norton Creek, and Cobbly Nob area this week there have been several places that were absolutely breathtaking. The wide variety of colors made it quite the sight to behold.

If you are curious to view the pictures of the trip (there are well over 100) please click the link below:

Cades Cove Fall Colors October 25, 2009

Day Three – Oconaluftee River and Bradley Fork

The day started out on a rough note.  We had to stop by several different locations before finding a shop that could sell a one day non-resident licenses in a timely fashion.   Our last hope was to find a fly fishing shop and head there. We ended up going to the Smoky Mountain Angler in downtown Gatlinburg where they got their licenses, some flies, and John got a sticker for his fly rod case and a t-shirt/hat combo. After getting a bit of a late start we made our way over Newfound Gap and into North Carolina to fish the Oconaluftee River (the Smoky Mountains National Park portion). We parked on the Southern portion of the Smokemont Campground and began fishing. After a brief introduction, Mike, Cole, Jason, and Brian caught on very quickly to fly fishing in the Smokies and adapted to their surroundings well.

I was using a dry fly, as was Cole. Everyone else was using nymphs. There were several sections that looked to be ideal for a dry fly, but we couldn’t get anything to rise. John caught two nice sized Brook Trout (called spec, specs, or speckled by locals).

John slipped on a rock and got the tip of his fly rod caught between two rocks, snapping the end of it off. Needless to say, John was discouraged, as it was a Scott fly rod (which definitely isn’t cheap) and he had planned to use it on his upcoming trip to Montana.  Fishing was a little slow on this narrower portion of the Oconaluftee so we decided to go into Cherokee so that everyone could (hopefully) catch a fish in the stocked waters.

 After paying our $7 each license to fish in the Cherokee Indian Reservation, we got out and explored the wide Oconaluftee. The fishing was decent, as all of us caught at least one fish except John (who was a little down after breaking his rod and acted as more of a “guide” spotting out the best waters and helping all of us). There was one deep hole we found and fished for a long time, with Cole pulling out a nice sized rainbow as did Jason. We fished to some stocked golden trout for a while, but couldn’t get them to take anything.

The river was full of tubers. It seemed like every 3 to 4 minutes we would have to stop fishing and wait for the tubers to make their way through. Probably not making for the best fishing conditions! Mike and the gang had decided they would call it a day and left Cherokee to head back to their cabin. John and I decided since we were already there, we should drive back up to the Smokemont Campground and fish Bradley Fork.

Neither of us had ever fished the stream before, so we just went by the book written by Don Kirk named Smoky Mountains Trout Fishing Guide. We fished a couple spots fairly close to the campground, but didn’t catch anything although it is some beautiful scenery. We decided to hike upstream a while to get away from where the campers may have been tromping around recently. We hiked upstream about 1.2 miles to where Chasteen Creek flows into Bradley Fork. From there we took several pictures and fished a couple places here and there. I caught a small rainbow trout on a prince nymph and then we headed back downstream some more to where we met another fly fisherman. He had been fishing upstream and said he caught three rainbows; one a pretty decent sized one he showed us in his creel. After we saw him we got back on the trail and headed back to our vehicle, calling it a day.

After that, John had wanted to see Clingman’s Dome (the tallest point in Tennessee). When we reached the top the views were decent, but not perfectly clear (which it very rarely is on top).  Being near Newfound Gap and heading back to Tennessee, we decided to stop at a pull off and get some photos of Walker Camp Prong – a gorgeous stream that has large boulders and dramatic plunge pools. This is a “hidden treasure” if you ask me – many people driving up to Newfound Gap don’t even realize it is there. Most places, it is steep getting down to the river, but it is well worth the short walk. It was getting near dark, and the light was perfect for some photos. We left our fishing poles (and waders) in the vehicle as we went down to the stream. John got some great photos of the boulders and cascading water. Just as he was finishing up and getting ready to rock hop from one boulder to the next, he slipped on the wet rock and went sliding off the boulder into the rushing water. In desperation he reached up with his camera and tripod to give it to me before it got soaked. I jumped from a rock and snatched up the camera. John had managed to wedge himself between the boulders and get his footing, keeping him from being rushed away by the water. Luckily, there weren’t any casualties – other than the brand spanking new hat that John had bought earlier in the day from Smoky Mountain Angler and he banged his hip on the rock. John quickly shook it off and we went back to the vehicle to head home for the night.

Overall, it was a great trip. It wasn’t the most productive in terms of fishing, but the scenery was amazing and it was great to go fishing with everyone! I think our next trip will be to the famous “horseshoe” on Abrams Creek.

Please click the link below for more photos of Bradley Fork, Clingman’s Dome, and Walker Camp Prong:

Fly fishing on Bradley Fork in the Smoky Mountains, views from Clingman’s Dome, and scenery on Walker Camp Prong

Day Two – Little River

My wife Brooke joined John and I for our fishing expedition on the Little River. She accompanied us the last time we went fishing in the Smokies a couple years ago.  On our last expedition, we fished Porter’s Creek (in the Greenbrier area), the Little River, Jake’s Creek, Cataloochee Creek, and Abrams Creek. She is a trooper when it comes to outdoors type of things. She hikes along with us with her backpack with all sorts of snacks, drinks, camera, and of course her many books to keep her occupied while we are fishing. I was surprised she decided to make the trip again considering she got chiggers in the Elkmont area around the time the fireflies were in their prime.

We got to Little River Outfitters before they opened their doors. Once they opened up, several fishermen including us quickly entered and we began selecting some of the best flies to match the hatches during this time of year. We stopped to chat with one of the employees for a while who had some experience fly fishing in Montana where John is going in a couple weeks - around the Cooke City area.

The fishing of the Little River was decent. John had caught three fish within the first 20 minutes or so - all rainbows. As we drove along Little River Road we tried to cherry pick the best spots. Surprisingly we fared better closer toward Townsend rather than the section between Metcalf Bottoms and Elkmont with the higher elevations and cooler water temperatures. We ventured into Elkmont and went to check out Jake’s Creek again, but decided to just go ahead and fish the East Prong of the Little River instead as we were more familiar with this portion of the river. We got some excellent photos of the beautiful scenery along the Little River and John again caught a couple rainbows.

After fishing the Little River we got a bite to eat at a local Italian restaurant in Boyd’s Creek and then headed to Bass Pro Shops - John needed a new leader and I needed some new tippet. The next day was the fishing trip planned with my client, his son, and two of his friends/employees. We had decided the best thing to do was to fish a relatively wide and easy access river such as the Oconaluftee since they weren’t used to fly fishing in the Mountains. They have plenty of experience fly fishing in Louisiana for redfish and several other species, but it is a totally different style here in the Smokies!

For more photos of our fishing trip on the Little River in the Great Smoky Mountains please click the links below:

Fly fishing the Little River in the Great Smoky Mountains National Park (John’s camera)

Fly fishing the Little River in the Smoky Mountains (Jay’s camera)

Lately it has been difficult for me to break away and devote some time to go trout fishing here in our beautiful Smoky Mountains. One of my clients had expressed an interest in going and my cousin, John, from West Virginia hadn’t been down in a while to go fishing, so I figured now would be as good of time as any.

My cousin, John, is quite the outdoorsman. He comes from a family where his dad brought him deer hunting in the woods of West Virginia before he could walk. He carried him in his Carhartt’s as he sat out in the silence of the woods bow hunting. Apparently, my cousin was quite well behaved and quiet for his age - either that or he must have slept the whole time!

 John and his brother Ian have been hunting and fishing avidly for at least 20 years now - basically since they were old enough to carry a gun or pick up a pole! More recently, John has got into trout fishing and fly fishing. John got introduced into trout fishing in the mountains of West Virginia, more specifically the Williams River, Cranberry River, Gauley, and Elk River.

My Uncle John and my cousins would frequently go up to the rivers and streams in the mountains and catch their limit of stocked trout within an hour frequently. They are quite the fisherman, able to read the water and have perfect presentation to the trout. I had joined them several times and was amazed at the ease they would catch fish.

 One of my earliest childhood memories was to my Papa’s cabin near the George Washington National Forest in West Virginia, fairly close to Washington D.C. Surprisingly, my cousin John is the only one who really took a liking to fly fishing. Once he got hooked, there was no turning back. John now ties all of his own flies, made a custom handmade bamboo rod for himself, and he frequently bushwhacks through the remote West Virginia wilderness in search for native brook trout.

Day One – South Holston River

John was coming into town from West Virginia, so it only made sense to fish the South Holston River on his way into Sevier County - as he had to pass by it anyway. The South Holston River is known for its tremendous fishing opportunities for large brown trout and its perfect conditions for holding trout including its oxygen level. We had a lot of rain in the area the past week, so we were somewhat skeptical of the fishing conditions. Since we were going to be wading the river instead of floating, the Holston Dam generation schedule was also an issue. Unfortunately, we had bad luck on both accounts.

They were generating when we were fishing and the waters were very high, making it extremely difficult to wade and fish. Fishing from the banks and being able to wade only about 20 feet into the wide river made it difficult to get the best angles to present our flies to the waiting trout. There were several hatches coming off that evening, so the potential was there.

My brother in-law, Paul, who is from Bristol, TN met us at the Weir Dam at about 4:00 so we could do some fishing until dark. Both John and I looked at Paul in his neoprene waders and thought he would burn up with the weather being as hot as it was. We were certainly in for a surprise though as we entered the water, the South Holston was frigid, or so it seemed. The water temperatures were good for trout fishing - in the mid to upper 50’s while we were there.

 John managed to pull in two brown trout off the South Holston, while the rest of us came up empty - unless you count the small shiner/chub that I caught! The fog on the river made it somewhat difficult to see our flies, but made for some interesting pictures. After we got done fishing, we loaded up, got some grub, and then headed back to our house in Sevierville. We arrived just before midnight and had to get up early the next morning to fish. John had wanted to visit Little River Outfitters in Townsend, so we decided to fish the Little River that day due to its close proximity.

For several pictures of our trip to the South Holston River please click the links below:

South Holston River Fly Fishing - taken with Jay’s Camera

South Holston River Fly Fishing - taken with John’s Camera

Once again, Brooke, my wife wrote a blog that is appearing on my website! One of these days I will get around to writing a real estate related blog. Brooke is a better writer anyway, so I hope you enjoy her stories of our trips to the National Park!

Over the holiday weekend Jay and I met my parents at Cades Cove. On Saturday mornings the 11 mile loop is closed to motor vechiles, and makes a great bike ride. Jay and I got there a little early, so we headed to the campground for a bathroom break and a photo-op.

Jay and I were trying to keep an eye out for my parents, since the parking lot we were supposed to meet at was full. Jay got distracted taking pictures, and wanted to get the perfect shot of the sun coming through the clouds, and asked me to be in the foreground.

Just as he was taking the picture, I noticed an old man on a bike up above us.

Jay chastised me for moving and ruining the photo, but I wanted to get to my dad before he passed us. I look huge in the picture, so I’m thankful that my dad ruined it! Jay did however, get another shot of us that we didn’t know about.

And he was finally able to get the shot of the rays of sun that he was looking for.

While Jay & I biked the 11 mile loop, my parents chilled out in the campground. My dad had to work the Gatlinburg midnight 4th of July parade, so he pulled out a lawn chair to sleep while my mother read a book.

After we got back from our bike ride, we hung out for a while and had a picnic. By then the loop was open to cars, so we loaded up and took a ride. My mom, Jay and I all sat in the back with my dad driving.

Whenever we go around the loop, Jay and I always stop at the church we got married in for a quick kiss. The bike ride earlier and this trip with my parents were no exception.

Just up the road, there were a lot of cars stopped and people crowded around a wooded area. Once we got close we saw that there was a bear in the creek, shaded by some trees.

Once I saw the picture, I made Jay promise that he didn’t get that close - he has an excellent zoom on his camera. There were people that weren’t all that brilliant and got into the creek with the cub. I guess they forgot that where Baby Bear is, Mama Bear isn’t too far behind.

Even though the bear moved on, the people didn’t.

The Mama Bear had made her appearance and the Park visitors didn’t want to miss a minute.

I thought that black bears were herbivores (except when humans get too close) but Jay said that he saw her catch a rabbit. The fence post is blocking it, but in the picture above she has the rabbit in her mouth eating it.

My mom went up to the people in the front of the bear jam and asked them to either move on or pull off the road. By this point, the cars were backed up beyond what we could see. People were honking and yelling “we wanna see it too!”

My mother’s attempts failed, as did the honks and yells. The lead car finally moved on when a Park Ranger arrived.

After that, the drive was pretty tranquil.

On a normal visit to the park, Jay & I typically see more deer than bears. This, was definitely not a normal visit - although we did see one buck on the loop out.

Below is an entry from my wife, Brooke, and our most recent trip to Cades Cove - we saw seven bears!!!

My father, a man not known for being cool under pressure, yelled at the tourist traffic that was a head of us causing a “bear jam” on the way to my wedding last November. “If you wanna see a bear go to the d*mn zoo!”

It was embarrassing, then, when we reached the bears and my mother made him slow down to get a picture. Then again, I had to have proof that I was late because of nature, rather than cold feet!

This summer bears are out and about more than ever. The national park has closed trails due to numerous bear sitings. Black bears aren’t normally aggressive, the deer aren’t scared of the bears at all. Typically its stupid humans - getting too close and making the bears nervous.

Since Jay got finished working early than expected on Saturday, we decided to head into the Cove to go bear hunting. Rest assured that the only shooting allowed is with a camera, and we got some great shots.

(Click to enlarge pictures.)

At the entrance of the 13 mile loop, an old timer was riding a horse drawn wagon of some sort. The entrance is where all the horse are (there is a nearby riding stable) and it appeared that he was fertilizing the area.

Jay had said we were a bit too early for the bears (it was 6:30PM) so we headed down one of the side roads to take it all in. About half way down the lane, there were several cars stopped in the road pointing at something.

We had the top down on the Jeep, so I stood up in my seat to get a better view. I wish I could take credit for this one, but Jay pulled off the road and stood up to take this shot.

As we headed around the loop, we saw 3 more bears - a mama and her cubs. Since traffic was at a bear jam stand still, I hopped out of the Jeep to take a few pictures.

I had the camera zoomed in, because I know better than to get to close to a Mama Bear & her cubs, so the pictures of the cubs turned out blurry.

As we circled around the loop, there was no shortage of deer either.

I’m a firm follower of the park service’s “take nothing, leave nothing” philosophy. Even to the point of packing out a tampon in a powerade bottle once during a hike. So I was upset to see what looked like a balloon in the middle of the field. Zooming in with the camera, our suspicions were confirmed.

Jay and I decided to swing back through the loop, since we still had a couple hours until dark. We made a great choice because shortly into our 2nd loop, we saw another bear. I stood up in the Jeep and rested my elbows on the roll bar to get this one.

Half way through our 2nd loop, it started to get dark.

While it made for some great scenery, I was in a tank top and shorts and the top was down off the Jeep. I got really cold really quickly.

Next time I’ll be sure to bring a sweatshirt because in a Jeep with the top down is definitely the way to take it all in!

It has been a while since I’ve blogged and for this post I’ve turned the writing over to my wife, Brooke. She has a blog where she writes on a regular basis and I’ve taken the post from her page. 

On Saturday, Jay and I went on our first hike as a married couple. He had to meet clients earlier in the day, so we got a late start.

As previously established, even though he never works out (and I do all the time) Jay is in better shape than I am. For most of the hike up, my pace wasn’t fast enough to suit him. I threatened to bring my MP3 player on the next hike which made him slow down for a little bit then he was right back like Speedy Gonzales.

The hike up was pretty boring. Except for a few flowers near the beginning of the trail, the scenery was pretty bland. We could hear a creek, but couldn’t see it. Closer to the top we heard a rustling sound, and Jay swore he saw a bear running away. I didn’t catch a glimpse, but I wasn’t sticking around to find out either!

About 0.5 miles from the top, we came across our first trail marker letting us know how far to the top. It was also a camp site and Jay asked if I would be willing to go camping there with him. I said only for his birthday, and thankfully October is too cold for camping!

I’d never been to a bald before. Jay had read in his trail research that before the park took over the land, settlers would drive their cattle up to the top of the bald to graze on the grass. Since grass doesn’t typically grow on the tops of mountains around here I was amazed at the view.

When we got to the top, we saw the elevation marker. According to Jay, it was a 3,000 foot elevation change from the trail head to the top. No wonder I was struggling on the way up!

He stacked up our backpacks and set the timer on his camera (and the camera on the backpacks) to get these shots.

I respect the art of photography and what he was going for in this one. That’s the only reason I’m posting it. Please ignore my large behind. Thanks in advance.

The hike down was easy breezy so Jay didn’t run off and leave me…too much.

By the time we got back to the trail head I was exhausted, but had the energy for one final picture.

On the drive out, there were 20-30 places that the creek crossed the road and several gorgeous waterfalls. I think Jay had found his new favorite place to go out riding in his Jeep.

I love using Excel for things, so I decided to create a spreadsheet of all residential sales in Sevier County from month to month since January 2006 (the earliest reliable data our local Board Of Realtors has online). After pulling up all of the volume, number of sales, and averages each month and entering it into the Spreadsheet, I created a graph to give a visualization of the data. The trend is quite apparent as you can see below:

I think the pictures/graphs pretty much tell the story, so I will make this blog very short.

And now for the required disclaimer: Based on information from the Great Smoky Mountains Association of Realtors (GSMAR) or its Multiple Listing Service from the period of January 2006 through January 2009. Data obtained, retrieved, and compiled by Jay Fradd from the GSMAR member website. The information should be deemed reliable, but not guaranteed.

I like to fish and hike in the Smokies, although unfortunately I haven’t had enough time to enjoy these leisurely activities, I still have come across some wildlife in the Smokies. Whether it be a stroll around Cades Cove to find fields full of deer, bears roaming in the fields or perched in the trees, or even a peacock sitting on a log railing of a cabin while showing property….You might not believe me, because I could hardly believe my own eyes wondering what in the world was it doing there. But I have the unedited photograph to prove it!

While that was quite the sight, I definitely prefer to see other animals out in their natural habitat. I have come across more bear than I could count while visiting Cades Cove, especially during the summer months. I have sit in many “bear jams” waiting for the tourists to move out of the road when viewing a bear.

On our wedding day in Cades Cove at the Missionary Baptist Church, my wife was traveling with her parents to get to the church for our wedding. I had explicit instructions on the time I was to arrive for pictures. I had to arrive before Brooke and her family for photos so I couldn’t see Brooke before our wedding. I was on time and all of the pictures were completed, but still no sign of Brooke. I wasn’t getting worried that she was getting cold feet, but was worried something may have happened. There are absolutely no cell phone signals in that area of the park, so I could not reach them on the phone either. About 20 minutes later I had notice of their arrival. They got stuck in a “bear jam”.  According to Brooke’s parents, her dad (who was driving) said “If you wanna see a bear go to the darn zoo!!! We are going to be late”. As Sam was finally driving by, Kay (Brooke’s mom) hollered at Sam to “slow down I want to get a picture!” Well, she got the picture and I got lots of laughs out of their story. I guess it isnt the tourists alone that create a “bear jam” - nearly everyone would enjoy the sight of a bear. Continue reading this post…

You’ve heard of Bernie Madoff, former chairman of the NASDAQ stock exchange and his cheating billions from investors. He is sitting on house arrest in his luxury estate. You may have heard of the most recent “scandal” involving Texas billionaire Sir Allen Stanford and his multi-billion dollar investment scheme. He was stopped trying to flee the United States when using his credit card.

 Apparently there are similar scandals across the nation, but at a substantially smaller scale. Even the small town my mom grew up in (New Haven, WV population 1,559) had its encounter with a ponzi scheme involving currency trading on the FOREX. As you can imagine, the $21 million invested with Mr. Gibbs was the talk of the town for quite some time - although the amount was just a drop in the bucket compared to the billions stolen from investors with Madoff & Stanford. He was sentenced to 63 months in prison.

Well, Gatlinburg officially has its own investment fraud and unlike the cases mentioned above authorities have no idea of his whereabouts. Dennis Bolze was living the life of luxury in Gatlinburg off Campbell Lead road in his 16,512 square foot mansion on 8.5 acres. The land was supposed to be a development, but Mr. Bolze just decided to buy the entire tract of land and make it his personal retreat and place for social gatherings and to wine and dine business contacts. The home had at least $5.1 Million in mortgages against the home - including Regions Bank. The enormous home is set to be auctioned off at the Sevier County Courthouse steps on February 26th at Noon. I suspect the Courthouse will have a rush of activity around lunch time to see the results and what happens with the auction. Continue reading this post…

February 14th marked the 8th annual Cure Finders Valentine’s Dinner and Dance to help fund research for Cystic Fibrosis. The past few years, Brooke and I have been volunteers to the dance and charity event located at the Convention Center next to the Music Road Hotel in Pigeon Forge. Each year it has been a positive experience seeing our local community get together and help donate funds for the research of Cystic Fibrosis. It is dear to our hearts as Brooke’s boss at the City of Sevierville, Jim Deanda, has two kids (Callie and Cale) with Cystic Fibrosis.

 This year, I had two clients to work with on Valentine’s Day and the day of the event, so I was a bit worried how I was going to fit it all into my schedule. I met with one client at 8:00 am which is pretty early to show property around here - the rental office at Sherwood Forest Resort where I was to show him a couple cabins was closed, but luckily there was someone there early that gave us access to the gated community. Once I had finished with the first client at around 11:00 I had another couple to show cabins. After looking at several cabins in various communities I was then able to head over and change into my suit to attend the dinner/dance. Brooke had been there since noon help setting up for the event, so I felt bad not being able to assist with setup, but glad to make it nonetheless.

The event was attended by several groups, businesses, and individuals in our area - including our local US Congressman, Phil Roe as well as local Senators. I distinctly remember meeting Congressman David Davis in previous years of the event, so apparently it has become a tradition of our representatives to attend the function. Continue reading this post…

A lot of my clients are not initially aware of the differences and advantages/disadvantages when comparing short sales versus foreclosures. This blog will be an attempt to explain in detail how the process works and the benefits and hassles associated with each. First I will describe and somewhat define both a short sale and then I will go in-depth about the disadvantages and advantages of each when purchasing a property.

Foreclosures

A foreclosure is a property that is already owned by a bank. Typically a foreclosure is obtained by the bank when the past owner is in default and has not been making their payments. The bank files a “Notice of Default” and an auction date is set for the property to be auctioned off (in our case at the Sevier County Courthouse steps). In most cases the lending institution (holder of the mortgage note) ends up bidding and winning the property at the auction for the amount of the existing mortgage or close to the amount. There are exceptions to this scenario such as when the original owner in default had a large down payment or a substantial equity position in the property. In this scenario other bidders may take interest and bid against the bank. Once a property is acquired by a bank they typically hire an “asset manager” to deal with the sale of the property and obtaining a “Broker Price Opinion” or BPO which is basically an appraisal of the property value. The asset manager then selects a Realtor to market the property and offer it up for sale in the MLS. Large banks typically handle foreclosures in this manner. Most of the smaller, local banks skip the process of hiring an asset manager and list the property with a Realtor direct.

Short Sales Continue reading this post…