Buying Real Estate in Sevier County: Five Questions Worth Asking

Answers by Will Cupp, Sevierville real estate broker with Realty Executives Associates, serving Sevierville, Pigeon Forge, Gatlinburg, Sevier County, and all East Tennessee.

After publishing several real estate articles last week, it’s time to get down to the questions behind the stories. A beautiful picture can get your attention. A good answer can help you decide what to do with it.

Here are five questions worth asking before your excitement gets ahead of your homework.

1. What should buyers check before purchasing a home or cabin in Sevierville?

If rental income is part of the plan, start with the exact location and the numbers. There are areas around Sevierville that consistently attract rental guests. Talk with established rental companies about where their comparable cabins perform well and why.

Of course, ask your real estate agent. But remember the point from my earlier article: all that glitters is not gold. Get more than one informed opinion.

Compare similar cabins in those locations. Look at their size, amenities, condition, and rental history. Set aside the highest and lowest performers, look at the average of the rest, and ask whether the whole picture makes sense. One exceptional cabin does not tell you what every cabin nearby will earn.

Don’t buy on a gut feeling alone. It could just be indigestion. Rolaids usually takes care of that.

2. How can you tell whether a Pigeon Forge cabin’s rental income projection is realistic?

Projections are a dime a dozen. We need real numbers and the whole story.

Start with locations that have produced rental income year after year. Then look for documented rental history from the cabin itself and comparable properties. Find out what came in, what went out, and what was left. A big rental number can look a whole lot smaller after the bills get paid.

Most buyers do not have enough experience in this market to recognize the hidden gem. Hate to say it, but 90 percent of the realtors do not either. What looks like a discovery can turn out to be fool’s gold.

My father used to say, “It’s not that I have trust issues. It’s that a lot of people in this world cannot be trusted.” Not bad advice when someone is asking you to trust a projection with your money.

Every home has a story. Good counsel and diligence help you put that story together. If it smells like a rotten egg, it’s probably a rotten egg. Hey if it looks like a diamond and smells like a rotten egg, well, you get the picture.

3. What should buyers know about steep driveways, private roads, and access when buying in Gatlinburg?

It always amazes me how carefully buyers listen when we discuss the things to avoid, then how quickly those things disappear from their minds when a mountain view hypnotizes them. The driveway did not get any flatter. They just stopped looking at it.

I have some firm rules. One is to steer buyers away from steep access that could create problems for them or their rental guests.

Another is to investigate private roads. Find out whether recorded documents clearly establish access, who maintains the road, and who pays when it needs repair. Have those documents reviewed before you buy. “Everybody pitches in” is an explanation. It is not the same as a documented agreement.

Good counsel should help you recognize the problems coming while you still have time to make a decision. This advice applies throughout Sevier County and East Tennessee, not just Gatlinburg.

4. Why would a cabin in Sevier County get plenty of attention but still not sell?

Start with location and price. But after more than 30 years in this market, I know there are other creatures lurking in the shadows. Don’t ignore them.

Interest rates can change what buyers can afford. If rental income declines or vacation spending slows, investors may reconsider what they are willing to pay. Even the perception of a bad economy can affect this market, whether that perception tells the whole story or not. The media can put the brakes on before a buyer ever calls an agent.

A cabin can attract plenty of attention because people love the picture. Buying it requires them to be comfortable with the price, the property, and the numbers.

I have had many real estate agents come to me with this question. There is a bigger picture, and good counsel can help you see it clearly.

5. What should you ask a real estate agent before trusting them with an East Tennessee home purchase or sale?

I wish there were one question that told you everything. There isn’t. But I would start with how long they have worked in this market and how many homes they have sold.

There are exceptions. Experience alone does not make someone diligent. But if I were buying or selling in a market I did not know, I would play the odds. Look at reviews, look into their background, and listen to how they explain their work.

Are they hands on? Or do you mostly know them for their social media presence, political opinions, and commentary about everything except the transaction? Substance matters.

Ask how they communicate. Do they call, text, or email? How often will you hear from them? And when a problem comes up, what do they do?

Here is what I would want to hear: “Most of the problems I encounter in this area are problems I have seen before. I know how to work through them, and I stay involved until they are resolved.”

That is how I approach my work. I call people daily and stay on top of my contracts and the third party vendors involved. I close 99 percent of the contracts we sign. I work through repair issues and inspections, make expectations clear to vendors and the other agents, and keep everyone working toward the deadlines.

A diligent real estate agent goes a long way. You want to know what they do after the contract is signed, when the work gets harder and you need them most.