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.

Being Valentine's Day, Brooke and I had decided our exchange of gifts this year would be to bid on a silent auction item that we thought each other would like. We ended up winning a couple auction items that went to help fund additional research to Cystic Fibrosis. She ended up getting a pair of sterling silver black onyx earrings and she won a Robert Tino painting of Lady Vols coach Pat Summitt autographed by both for me! I tried to make up for me arriving late by helping disassemble things for the event - we ended up leaving at about 1:30 am!

Gary Woods Photography is a regular at the event and is kind enough to donate his time and skill to taking photos of people at the event and mailing them to the attendees. Last year the photo of Brooke and I turned out great and we look forward to ours again this year!

It was great to see even in these difficult economic times people extending a hand to help such an important cause! We will definitely be back next year for the 9th annual event and I encourage anyone else able to make it to attend as well! The Cure Finders Cystic Fibrosis Foundation also holds a sporting clays tournament along with a motorcycle ride sponsored by Harley-Davidson  each year as well, so make sure not to miss those events either!
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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

Short sales are more difficult to explain in a clear cohesive manner. A short sale occurs when the property owner is facing difficulties making their payments on the property. This could be due to a variety of reasons. The cabin may not be generating enough rental income, they could be facing financial difficulties, lost their job, facing health concerns, or any other reason they are not capable of continuing payments of their mortgage. A short sale boils down to the current owner is having difficulty making their payments, the price they could obtain for the property is less than the existing mortgage, and they are not capable of making up the difference (bringing money to closing). An owner of a home then consults with their lender, provides them detailed documents about their financial situation and the lender then decides if the property is eligible for a short sale. Sometimes, a lender will reject a short sale opportunity if an owner cannot show "financial hardship". If an owner has substantial assets and can afford to either make payments on the loan or has the funds to make up the difference between the estimated selling price and the existing mortgage the lender will usually not accept the short sale scenario. Most often in this area with overnight cabin rentals this is not the case as many cabins have been going into a "short sale status" or deed in lieu of foreclosure.

A short sale can get very tricky when there is more than one mortgage on the property (by different lenders). The reason is that a short sale requires the cooperation of all lenders involved with the property. The first or senior lender has little reason to offer any of the proceeds to a junior lender (the second mortage holder), since all junior liens will be cleared if the senior lender forecloses. Therefore, the senior lender typically requires that it receive all of the net proceeds of sale or that the junior lienholder be paid only a token amount. If the senior loan has been securitized, the loan securitization agreement can prohibit the loan servicer from negotiating in this situation. However, if the junior lienholder will receive nothing from a short sale, it has no incentive to cooperate.

A short sale is advantageous to an owner because it would not have a foreclosure on their credit, but their credit is usually damaged substantially (80 to 100 points off the FICO score approximately for a short sale vs. 200+ for a foreclosure) by this point anyway. From a bank's perspective it has a couple advantages. The cost associated with processing and going through a foreclosure is quite high for a bank with legal fees, filing, and things of that nature. Also, when the lender is in possession of the property they are responsible for its upkeep, taxes, HOA fees, and utilities (if they are turned on). So, a short sale has certain advantages to each side of the equation when considering the current owner and the lender.  A seller especially as a vacation home or investment property must be careful about the tax ramifications with a short sale based on the "cancellation of debt income" (COD). Depending upon several different circumstances such as if the loan is a recourse or non-recourse loan the owner may take on tax liability for the "capital gain" of the cancellation of debt. The 2007 Mortgage Forgiveness Debt Relief Act of 2007 removed all liability on any debt forgiven on a personal residence, but not a vacation property/investment property.

A short sale is usually, but not always, listed within the MLS. Frequently the listing agents of these properties are random in nature - as they are decided by the seller/owner of the property, not an asset management company that deals with foreclosures and has a few selected Realtors to market the property. Sometimes a property can be a normal listing and then change to a short sale status if an owner's financial position deteriorates. It is possible for an owner to list a property originally and have it classified as a short sale, but it is less common in our market. Usually an owner will "test the waters' for a while to see if they can obtain a higher price for their property and after learning they cannot, go into a short sale status and begin lowering the price.

Now to the advantages and disadvantages to each from a buyer's perspective. This information is based on experience and my perception of how each works. Each individual may perceive certain things to their advantage while others may see it as a disadvantage.

Foreclosures - Advantages

With a foreclosure you can receive a fairly quick response on your offer. While it may take a little longer than a normal real estate transaction to get a response, it is within a short manageable time. Usually two or three days is the time it takes for a bank to respond to an offer - whether it be to counter the offer, accept the offer, or reject it without a response. I have had situations where my clients have made offers and it only took one day to get a response, but two days is most common from my experience.

Prices on foreclosures are without a doubt lower than the average property on the market. Sometimes they are aggressively priced from the start, while at times they are somewhat competitively priced and come down in price once the market establishes the price is too high. This is dependent most on the BPO the asset management company receives and the recommendations from the listing agent. Some tend to list the property very competitively at the beginning while others hold out for a higher price and lower it over time. It is very important to look at other foreclosures in the development or comparable foreclosure properties (whether they be sold or currently on the market) and determine if the price has some room to decline in price further or if it is competitively priced currently. Foreclosures can be purchased at higher or lower prices that short sales, it just depends on the particular cabin.

Some foreclosures may help with closing costs. This is typical only of a couple companies such as "Homesteps" and other government agencies such as Fannie Mae and Freddie Mac.

Foreclosures - Disadvantages

There are a few disadvantages to purchasing a property as a foreclosure compared to a short sale. Usually a cabin is not furnished if it is a foreclosure. There are exceptions to this though and it varies on a case by case basis. Rental history of the particular cabin is not available on a foreclosure cabin through the owner (lender) so it is more difficult to analyze the rental potential and do a financial analysis of the property. There are other means to obtain this information and while it may not be exact and as detailed as the information you can obtain in a short sale it is still valuable nonetheless. You can contact the past rental management company and they MAY provide you with an indication of how the property has performed on their rental program. If it has fared well, they will usually be happy to give you an idea that it did well because they want you to place the cabin back under their management so it can generate income. Also, I have access to the past listings in the MLS if it has sold recently or been on the market and expired. Sometimes the listing agent will provide the rental information on the MLS sheet and I can retrieve the information.

The bank/lender of a foreclosed property will make no repairs and it is sold "as-is". This does not keep you from getting a home inspection to determine a home's faults and things needing to be repaired. But once you have a home inspection do not expect the bank to remedy any of the problems. The home inspection in a foreclosure is just a discovery process where you find the faults with the home and if they are not substantial then you move forward and if they are difficult to overcome or substantial problems then you have the option of getting out of the contract and having your earnest money deposit returned.

Short Sale Advantages

Short sales, like foreclosures can be obtained for some incredibly good values - at times 60% to 70% of the existing mortgage or what the current owner paid or less. A short sale will typicallly have its furniture until the near end and they are very close to facing foreclosure. In a short sale furniture is typically included or at least negotiable in a contract. Short sales, since they are still owned by someone usually renting out the property will be able to give a past rental history for the property so you can get the past performance of the cabin and an indication of the type of income it will generate in the future. Also, sometimes on a short sale property the owner will agree to make some repairs in order to "save" the sale after a home inspection. This is not always the case, and they will usually not pay for big ticket items, but something is better than nothing which is what you nearly always get as far as remedies by the banks with foreclosures. Sometimes, in both foreclosures and short sales prices can be lowered after finding something substantially wrong in a home inspection, but the owner typically will not take on the responsibility for doing substantial repairs themselves.

Short Sale Disadvantages

The disadvantages of a short sale is probably the most prominent of all the differences between a short sale and foreclosure. In a short sale you will normally end up waiting a VERY long time before getting third party approval from the lender. The current owner may sign the contract in short order, but it will be contingent upon the lender approving the conditions of the sale (whether it be price, contingencies, etc.). I have had my clients have to wait anywhere from 45 days to over 3 months to obtain a final third party (lender) approval of a short sale. The problems associated with this are while the bank has your offer in hand they are slowly processing things such as obtaining an appraisal, receiving financial documents from the owner, and various other things. During this time of waiting, the bank likes to have other offers presented so they can decide which offer is in their best interests. It is not uncommon for a short sale to have several offers and you will not know if yours has been accepted for months. This is a very frustrating process for a buyer. While not knowing if your offer has been officially accepted is frustrating and takes patience, it is normally not as vital in the cabin investment market than if you were purchasing a property as your permanent residence and had to schedule moving, furniture, etc.

It is not only frustrating from a buyer's perspective, but mine as well. Once a seller signs the contract it is out of my hands. I can do very little if anything to speed up the process when representing a buyer or make the other side work faster. Patience is vitally important when dealing with a short sale, but usually pays off with an exceptional deal if the bank accepts your offer.

Sometimes you will not know if the deal is finalized until a couple days to closing - and the closing date is a moving target. In my opinion, the best way to approach a short sale is to assume there will be no other offers and make your highest and best offer at the start. In a short sale situation they will very rarely if ever present a counter offer. It is also important to not let your emotions take control and offer too much. Make a decision based on what the value of the property is after doing research, not what you think other people may be offering on the property (if there is substantial activity and other offers). Sometimes it can almost get into a situation like a bidding war if the cabin is in an ideal location and priced very competitively - this is not an ideal situation to be in usually as emotions get involved.

In a short sale situation the negotiator and bank will be working on one side with the offers presented, but commonly they are not working in cohesion and having contact with the side of the lender dealing with the potential foreclosure proceedings. It is not uncommon to have a property have foreclosure proceeding processed and have a date for an auction at the courthouse steps, while at the same time an offer may be existing as a short sale property. Frequently, it seems, one side of the bank is not aware of what the other side is doing. So you may have an offer existing, only to find the lender has ended up foreclosing on the property and it being auctioned off at that courthouse.

To summarize, patience is the most important thing when dealing with a short sale because it can take a few months to close on the property. I have seen some incredible deals on short sales and obtained some excellent bargains for my clients, so it can be well worth the wait. If I had my choice and was buying a property though, I would be more apt to purchase a foreclosure rather than a short sale, which I personally have.

Short Sale Versus Foreclosure Summary

• Offer Acceptance Time - Advantage: Foreclosures
• Best Bargain/Deal - Advantage: Tie (Depends on the individual property circumstances)
• Cabin Furnishings - Advantage: Short Sale (slight advantage depending on circumstances)
• Rental History For Financial Data - Advantage: Short Sale (slight advantage)
• Overall Ease of Transaction - Advantage: Foreclosures
• Chances of Getting an Offer Accepted - Advantage: Large advantage for Foreclosures

The real estate market in Sevier County has unquestionably been impacted by foreclosures and short sales of cabins. A large portion of the cabin sales, approximately 40%, have been either foreclosures or short sales. Among these foreclosures many were purchased at what I would consider bargains and some others were more along the lines of a typical selling price. It is vitally important to ensure the cabin is appropriately priced for a foreclosure before making an offer. I have seen some foreclosure cabins that are priced no more competitive than regular sales, yet have sold quickly on the market. I think part of this is attributed to when someone sees "foreclosure" they automatically assume it is a good deal. While this is often the case, it is not necessarily always true.

The majority of foreclosures are centered in a few developments. Notably, those that were developed in the 2005 to 2007 time frame when the "building boom" was happening in Sevier County. Prior to 2005 the number of cabins in the area was not sufficient to accomodate the numbers of visitors to the area and people looking to rent a cabin. When 2005 rolled around and several large developments were created the supply versus demand changed and did a 180 degree turn. Each of these developments had somewhere between 100 and 400 cabins and these cabins ended up stealing away much of the market share of visitors. They were after all, new and had the amenities and lavish furnishings that visitors desire. This caused the older cabins to see a dramatic drop in their rental revenues. While many of the owners of the new cabins did in fact see good rental histories, they also paid outrageously high prices for the cabins and made it difficult to sustain a positive cash flow. Especially considering the utility costs, taxes, home owners insurance, and HOA fees within the development.

The developments with the largest number of foreclosures and short sales are listed below. Most of these all have a common denominator of being developed in the 2005 to 2007 time frame and are PUD's (Planned Unit Developments) with the cabins "stacked on top of each other". The exceptions to this rule are Sky Harbor and Chalet Village. Both of these developments are experiencing a high rate of foreclosure. This can be attributed to them both being older developments with some properties that are dated and not producing the same level of income they once generated. Also, they are both massive in size with over 1,000 lots each, so there are going to be foreclosures in the developments even in good times. For the most part, both developments feature entry level cabins where some smaller investors/owners "dipped their toes in the water" and ended up finding the water was much deeper than they thought and could handle.

Developments in the Smoky Mountains with the most Foreclosures

• Alpine Mountain Village - Pigeon Forge
• Bear Creek Crossing - Pigeon Forge/Sevierville Area
• Black Bear Ridge Resort - Pigeon Forge
• Brothers Cove - Waldens Creek area
• Chalet Village - Gatlinburg
• Covered Bridge Resort - Pigeon Forge/Waldens Creek area
• Hidden Springs Resort - Pigeon Forge
• Mountain Shadows Resort - Gatlinburg
• Settlers Ridge - Gatlinburg
• Sherwood Forest Resort - Pigeon Forge
• Sky Harbor - Gatlinburg/Pigeon Forge Area

While there are several other developments that have foreclosures, they are more of a case by case basis. The most difficult type of foreclosure to find is a cabin located on acreage that has been foreclosed. They are in high demand and there is very little selection of quality cabins on acreage within our MLS, let alone foreclosure cabins.Prices of foreclosures are typically around 60% to 70% of the original selling price of a cabin. This can vary dramatically depending on the development and how hard it has been hit by foreclosures and how much the owners "overpaid" for the cabins in the first place. For example, I just sold to one of my clients a 6 bedroom, 6.5 bath foreclosure cabin in Black Bear Ridge Resort for $295,000 that originally sold for $760,000. The original selling price included furniture, while the $295,000 did not, but still it was purchased at 38.8% of the original selling price and approximately $63 per square foot! With these numbers there is no doubt in my mind they will be receiving a good positive cash flow.

Other properties have come up in the market that are unquestionably good deals. For instance, there was a cabin in Sherwood Forest Resort that originally sold for $370,000 (furnished) that had a listing price of $129,900. This cabin was originally listed at $189,900 and once the listing agent had the large $60,000 price drop it immediately received a lot of activity and multiple offers. The cabin is 1,560 square feet with 2 bedrooms and 2 baths with a spectacular view of the Smoky Mountains. Comparable properties in the development have gross rental incomes of between $35,000 and $40,000 conservatively. The amenities of the development are attractive to visitors - with the gated entry, community swimming pool, large conference center/lodge, and absolutely stunning mountain views.

It is a good opportunity now for investors to purchase certain foreclosed cabins in the area. I feel most of the cabin prices still have some adjustment downward because they do not create a positive cash flow. There are definitely properties out there though that perform well and I do my very best to locate those properties. My website has a foreclosure page that I update daily with all of the new foreclosures on the market and price changes of the properties. It is a good resource to use to help identify some of the better priced cabins available. While not all of the cabins listed as foreclosures and short sales are great deals, several are.

Recent land sales in Sevier County have been sluggish to say the least. No matter the area - Gatlinburg, Pigeon Forge, Wears Valley, Sevierville, or any other area of Sevier County sales have been few and far between. There is an abundance of land on the market, but very few buyers willing to pony up the cash to invest in land. Normally this would create a situation where there is a buyers market and driving down prices. Although prices of land within the MLS have lowered, they are nowhere near in proportion to cabin and residential homes.

My speculation for the reasoning behind this stems from cabins becoming low enough priced now to become a wise investment with several cabins offering positive cash flow opportunities with 20% down. With the residential properties there is a need - people have to live somewhere and buyers are bargain shopping. Also, the price of residential homes lowering has made them more lucrative as long-term rentals. Land, on the other hand, offers no monthly income in most cases, so it can be a substantial drain on an individual's cash position as reserves.

At this time, a lot of people are holding cash as the stock markets are faced with turmoil - along with the strengthening of the dollar recently. Although, I do feel the value of the dollar will be decreasing in the future as the Federal Reserve has been utilizing quite a bit of "quantitative easing" and increasing the monetary base. Once the banks utilize (either invest or lend) the money they received from the bailout packages, that money gets turned into the money supply as it gets put into circulation. I believe the long term result from this will be inflation - caused by the over compensation and manipulation of the markets in the current asset and commodity deflation.

So why are the number of land sales so low and why haven't prices of land dropped substantially in the area? That is a difficult question to answer. Without a doubt, those who are actually purchasing land (which is a relatively few number) are searching for bargains from distressed sellers or properties at absolute auctions. For example, I just purchased 5.55 acres of rolling pasture land in New Center for $40,000 at absolute auction. The property was part of the Denison Farm, a 130 acre tract subdivided into 25 parcels. I would estimate if the auction occurred two years ago, the land would have sold for double the price I paid. So, it is not necessarily that prices are not decreasing, however the number of buyers has dropped off the map, and those willing to buy are only purchasing when they are able to find a real bargain.

I do believe that land soared to some overvalued prices in the 2005 to 2007 time frame, so a correction is necessary. The problem currently is that sellers seem to be holding strong on their prices and have not lowered them enough to entice the buyers searching for property. Many owners of land are able to do this as they "wait out the storm", but I would think some people would be forced to lower their prices to free up cash for other ventures, especially those who have substantial equity in the land or have it paid for.

To give you an idea of the market for land I researched the land sales in Sevier County through our GSMAR (Great Smoky Mountains Association of Realtors) over the past 30 days (covering the time frame of November 5th to December 5th. There were a whopping 10 total land sales in Sevier County during this time. Of these sales, nine out of ten were priced at $69,900 or less. There were:

• Two sales in the Boyds Creek Area (side by side lots selling for $36,250 each)
• One sale in Gatlinburg for $19,850
• Three sales in Pigeon Forge (two of them on Bales Way for $20,000 each and a 6 acre tract on McCarter Hollow, next to Dollywood, selling for $137,000)
• Two sales in Seymour - one 13+ acre foreclosure tract selling for $32,000 and a lot in Majestic Meadows selling for $59,900.
• Two sales in Wears Valley - for $69,900 and $38,200 respectively.

 The thing I noticed is the vast majority of these lots are residential building lots instead of land being bought for cabins. Perhaps two of the ten sales were for overnight rental cabins (one in Wears Valley and the lot in Gatlinburg) . In the past, this segment of the market was a much greater proportion. The purchasing of land to build a cabin has lowered dramatically as new cabin builds have been extremely sluggish - and justifiably so.

To give you a point of reference, there are currently 2,186 (Two thousand one hundred and eighty six!) parcels of land within Sevier County currently for sale within the GSMAR. At the rate of 10 sales per month (equating to 120 sales per year) it would take over 18 years to cleanse the market - and that is assuming that no other properties come up for sale which is obviously not going to happen. There has been an over abundance of land for sale compared to the number of sales for a while in Sevier County, but nothing approaching the 18 year figure.

I do find it odd that prices have not been lowered significantly by sellers yet, but I would think it is on the way. Land selling at absolute auction have been going for much less than in the past and developments such as The Summit On Bluff Mountain ran an extraordinary amount of advertising when they slashed their prices substantially (in some cases up to 50% off their original price) at the end of October. I believe it is just a matter of time before many more sellers begin to lower their listing prices to meet the demands of buyers. There are always owners that have their land listed that do not NEED to sell, so they just may sit tight until the market recovers, but not everyone has the luxury of being in that position.

So to summarize, it is a buyers market, but the vast majority of prices of listed properties are still high. While there can be bargains found, many people seem to be waiting for prices to lower and indicators of the economy recovering in order to purchase land for the building of new homes. If you are looking to buy land I would be happy to search out the current bargains or locate distressed sellers who need to sell and have the ability to accept an offer substantially less than their asking price. And there is always the option of just waiting until the land prices lower as I would predict in a lot of circumstances. Property on a creek or river is still in high demand and with so little waterfront property available, I think those properties will hold their value well.

I have been trying to keep as informed as possible regarding the recent economic crisis including the Federal Reserve's monetary policy actions. At times it can be quite confusing. To me it is even more difficult to comprehend the data in a manner to analzye the implications and potential repercussions of their actions. That is until I came across the post of Brian Benton, who summarizes the Federal Reserve's recent actions in a concise and understandable manner. Please take a few minutes to read his post below: 

"I have mentioned several times in past weeks that the monetary base is now increasing. You can consider the monetary base to be the bottom most layer of the money supply (the core). It is the base from which banks lend in our fractional reserve system. The monetary base consists of currency in circulation (which is M0), cash held in bank vaults, and cash on deposit with the Federal Reserve as reserves. The Fed obviously has direct power over the monetary base, but only has indirect influence on fractional reserve lending by the banks (and thus the other monetary aggregates). This is why the Fed can "print"/"create" all of the money it wants (assuming that it has an adequate supply of treasuries in the secondary market to buy) and it will not have an impact on inflation if the banks do not put it to use and instead hoard as reserves. Well, this is the problem that the Fed and Treasury are having with the banks. The Fed has funneled all of this new money to the banks (through both lending programs and bailout/injection programs), but the banks are not lending it out as demanded by the Fed and Treasury. They are sitting on it in anticipation of rough times ahead. See http://news.yahoo.com/s/ap/20081028/...ncial_meltdown.

How will we know that the banks have begun lending? We should look at the broader money aggregates, namely M1 and to some extent M2. M1 is M0 (currency in circulation) plus mostly demand deposits and other checkable deposits. Since reserves are not part of the circulating money supply, they are not included in M1. M1 will begin increasing when the banks begin lending in aggregate their now plentiful reserves ... albeit, these are reserves net loaned from the Fed as non-borrowed bank reserves are nearly -$364 billion as of Wednesday 10/24. In last week's Fed H.3 report, the monetary base (not seasonally adjusted) grew to nearly $1.149 trillion, up nearly 14% in just two weeks (see Note: below). This is up 26% since 9/10, approximately when the Fed began its program of quantitative easing. The following chart from the St. Louis Federal Reserve Bank depicts the dramatic rise in the Adjusted Monetary Base (similar to the monetary base cited above, with seasonality factored in) ... http://research.stlouisfed.org/fred2/series/BASE. However, M1 has declined a bit in recent weeks ($1.412 trillion on 10/13 vs. $1.532 trillion on 9/29) and is up only about 3% from 9/8 ($1.368 trillion). Year-over-year, M1 has increased only about 3.5% (using the latest 10/13 figures). The banks are obviously not putting this new money to use in creating new loans and expanding the money supply. The Fed and Treasury are getting desperate as they know that the refusal of banks to lend in aggregate will result in more asset deflation and potentially a deflationary spiral.

How far will the Treasury, Fed, and Executive branch go in encouraging (with force) the banks to lend such that our ever increasing economic problems can be kicked down the road a bit? There are various forms of pressure the Fed can apply to persuade the banks to lend. This could include the Fed/Treasury making an example of a few banks that are not cooperating. This could come in the form of banks being shutout from the bailout funds and/or enhancing rival/competitor banks resulting in takeovers. The Fed could also enact broad measures by draining a specific amount of reserves from the system (while propping up the cooperating banks with targeted funding). These broader measures could be implemented by reversing the quantitative easing program currently being conducted by the Fed. They could also be implemented by the cessation of loan rollovers from the staple Fed lending programs (TAF, TSLF, etc.). This would be yet another example of the Fed/Treasury picking the winners and losers, something that has been a focal point of policy to date.

If the lenders do begin lending again in aggregate off of this vastly expanded monetary base, I think we will likely see serious inflation (monetary and price inflation) and a massive bubble in something (all other things remaining equal, such as the derivatives time bomb). Such a bubble will make the housing bubble seem like child's play. However, if the current deflationary forces win (and bank lending will be a primary indicator), we can fall into a major deflationary spiral. You simply cannot call it at this point and should prepare for both possibilities. I simply keep looking at the numbers for evidence.

As for the Fed cutting the target for the federal funds rate today from 1.5% to 1.0%, this is mostly a non-event. All this did was signal to the market that the Fed will continue the injections of liquidity at the present rate for the intermediate term. The federal funds rate has been trading under 1% for the last two weeks (due to the Fed injecting massive amounts of reserves into the system). So, you will not see any additional liquidity in the system due to a target rate cut today (the target was already being implemented). In fact, the fed funds rate has been effectively trading at the floor set by the rate now paid on excess reserves by the Fed. The rate paid on excess reserves is now 35 basis points (down from 75 basis points) under the target rate for federal funds (this was also a signal that a rate cut was coming). Thus, with a 1.0% target for federal funds, the Fed is now paying banks 0.65% interest on excess reserves on deposit with the Fed. Thus, banks are not going to lend money in the federal funds market for less than they can receive by leaving those reserves on deposit with the Fed. This allows the Fed to engage in quantitative easing (injecting new reserves into the system - expanding the monetary base) without driving interest rates to zero. Allowing the overnight lending rate to fall to 0% did not work out well for Japan.

Note: Bank reserves, averaged throughout last week, increased $20.2 billion to $301.27 billion (this is the number used in the calculation of the monetary base). However, the amount of reserve balances on deposit with the Fed at COB Wednesday 10/22 fell substantially to $220.762 billion (see H.4.1 report). Since the H.3 report calculates the monetary base using an average for reserves, the monetary base number published this week may be a bit inflated when compared to an actual calculation of the monetary base on 10/22."

-Posted by Brian Benton

We shall soon find out if the banks are going to end up lending the cash they are hoarding. Then we will be able to determine the direction our country is headed.

I am a frequent traveler to various areas in the Smoky Mountains National Park and the surrounding areas, but there are few places that capture my interest with awe inspiring views such as the Foothills Parkway. The completed portion between Walland and Fontana Dam has some of the most spectacular views in the area. The popular ride features most of your time spent following the top of a ridge where you can overlook one side and view the lower laying areas such as Maryville where you can see well into Kentucky. There are several pull-offs on the road capturing a totally different view from the other side - one of unspoiled wilderness and the Great Smoky Mountains National Park.

When I learned the new section of the Foothills Parkway was going to be open for visitors to travel over the weekend, I thought it would be a great opportunity to go out and get some fresh air and take in the scenery - especially with the fall leaves changing color. We had decided to head up to the Parkway on Sunday after church to get a preview of the views from the new section and take some photos. When we arrived, the traffic was not as bad as we had anticipated and we stopped by the Park Ranger to get a brochure. It read:

"The staff at Great Smoky Mountains National Park and volunteers from Experience Your Smokies - Blount County are pleased to offer you the opportunity to travel this scenic roadway in the autumn when fall leaf color is at its best. This 9.5-mile partially completed section is part of a 72-mile Foothills Parkway right-of-way which parallels the northern boundary of the national park. This route has spectacular views along the way that can be seen from several vantage points. We ask that if you stop, you do so only at the well defined pullouts. Near the road's end, you will be turned around to continue the drive back. At this point you will not be allowed to stop or park in order to keep traffic moving. We offered this drive last spring for the first time in 10 years and it was so popular that over 8,000 people came over a two-day period. We expect even more people this fall so we are not allowing visitors to get out of their cars at the route's end because parking is so limited that gridlock would be unavoidable.

Completion Plans for the "Missing Link"

Through the support of Senator Lamar Alexander and Representative John Duncan, $17.7 million was appropriated under the SAFETEA-LU (Safe, Accountable, Flexible, and Efficient Transportation Equrty Act: A Legacy of Users) for the "Missing Link", a 1.5-mile long uncompleted section of the Parkway right of way. After Congressional reductions , a total of $15.2 million was left available. With this funding, the National Park Service and Federal Highway Administration awarded a contract in September 2008 to a Kentucky contractor to construct 1,200 feet of new roadway extending westward from the end of the partly-finished Parkway at U.S. 321 in Wears Valley. This work is scheduled to take 8 months. The Park plans to utilize another portion of the $15.2 million to award a contract in the fall of 2009 to build another 1,800 feet of Parkway extending east from this Walland segment. Full completion of the "Missing Link" is expected to cost an estimated $138 million (including the funding now available) and Park officials are hopeful that the "Missing Link" will be completed by the National Park Service's Centennial in 2016.

Completing the Remainder of the Foothills Parkway

A map on the reverse shows the entire 72-miles of the Parkway from I-40 in Cocke County to Chilhowee Lake in Blount County. Of that 72-mile distance, two segments at the ends, totaling 22.5 miIes, are completed and open to traffic. The top priority of the NPS is finishing the "Missing Link" so that another 16.1 miles can be opened from Walland to Wear Valley. Once that is complete, 33 miles will remain to be constructed. Environmental planning has been partially completed on portions of that route, but no construction has taken place."

The views from the new section are certainly beautiful, but in my opinion are not quite as spectacular as the section completed between Walland and Fontana Dam. The trip along the new section was comprised of about six pull-offs, each having a substantial view and different vantage point from the next. The first stop had a view of the Little River as it meandered along in the valley between the mountains.

Along our trip, at the very last pulloff, Brooke and I ran into one of her relatives who were enjoying a picnic taking in the views. We had no clue they were headed out there, so it was funny running into them. We saw them from behind and kind of quietly said to each other "that looks like Randy". Well, sure enough, Randy must have overheard us because he turned around and saw us! We chatted with them for a while and headed on to the end of the Parkway where they made us turn around and head back the same direction we came. Click the link below for a photo gallery of the trip to the new section of the Foothills Parkway!

Foothills Parkway Opening of new section from Walland to Carr's Creek Area

I have received several questions from clients regarding the current state of the real estate and rental market here in the Smokies. I thought I would post my analysis for all to see regarding the Sevier County area real estate market, foreclosures, and the impact of the "real estate/mortgage bubble" on the local rental management companies. Below is my sometimes critical and as straight forward as possible analysis of the market.

The overnight cabin rental business realized a decrease in business during the early summer months (compared to the same time frame in previous years) when gas prices spiked to around the $4 mark. I think it discouraged some visitors from traveling here and some from making plans to travel during the later months or at least waiting to book their vacations. The good cabin management companies adapted quickly once they came to the realization their occupancy was not as high as it was in the past by offering incentives. The rental management companies typically offer some sort of "incentive" such as stay 5 nights get the 6th night free or something along those lines. But a few management companies were smart and tied their discounts directly in to what the consumer was seeing as the reason for them not making the trip - gas prices. So, they advertised on their websites things such as Summer Gas Incentives - 10% off cabin rentals and things of that nature. For instance, a cabin that would typically rent for $200 per night would be a savings of $20 per night and the typical summer stay is at least 3 or 4 days, so it was enough of an incentive to entice the visitors to book the cabins. The average visitor to the Smokies is not extremely affluent, they are your normal average Joe for the most part. This ultimately resulted in slightly less rental income for cabin owners, but far outweighed the alternative of having no rentals at all!

Some management companies did not adapt as quickly and I believe they are suffering because of it. The vast majority of people who rent cabins do two things: drive to the destination and find the cabin they end up staying in on the Internet. The management companies who capitalized on both of these by placing in the top in Google Searches, use pay-per-click advertising and adapted quickly to the gas increases seem to be doing fine and actually are on par with past years.

In talking with several different rental management companies, they are seeing a few differences from the past. First, people are not booking rooms as far in advance. I have seen the rentals for several cabins seem empty for August when I looked at them in May & June and then all of a sudden it was booked for virtually the entire month. I am not sure the reasoning behind this, but I would think with the economy facing its struggles and gas prices fluctuating people are waiting to know their financial condition closer to the date of their vacation. They also have told me the cabins renting the most (at least with these specific companies) are the smaller cabins or the very large cabins where groups/families come to meet. So the 1 BR cabins along with the 4+ bedroom cabins tend to be the ones with the best rental histories as of now. The mid-range sized cabins such as 3-4 BR cabins are not performing as well as they had in the past. For instance, a small family coming on vacation with a couple kids can stay in a 1 BR cabin and it still works for them because the cabin may sleep 4. So, the need for the cabins in the 2-4 BR range is less than that of a 1 BR cabin. Although, I must also say there have been quite a few one bedroom cabins built!

Cabin rentals seemed to peak in the period prior to 2005 when there was a great demand for cabins and the supply was still not up to the demand. In and around the time of 2005 there were many large developments and PUD's with cabin upon cabin built in a short amount of time. The demand did not increase, but the supply of cabins increased dramatically, causing the overall gross rental income for many cabins to go down. The cabins that were built in the 1990's and dated as far as the amenities a visitor is looking for saw the largest decline. These cabins now are sort of phasing themselves out as rental properties as they become older and not performing as well as they had in the past. The one exception is a cabin with a tremendous view or on a river - these cabins continue to do well even if they are older and dated. Thankfully, with the downward trend of the real estate market, new cabin builds have slowed dramatically, allowing the supply vs. demand find a better position than the quick growth period of 2005-early/mid 2007.

As far as the real estate market is concerned, in my opinion, I have no indications of prices recovering right now. I dont think they have a lot of room to go lower, but also do not think we have hit bottom yet. In March, I believe it was, I showed a 6 bedroom, 6.5 bath in Black Bear Ridge with a fairly good view. It was on the market for $399,000 and I thought this was a decent deal due to the rental income potential I was aware of and had looked at for comparable cabins in the development. When it dropped to $375,000 I thought it was a good deal and my family and I considered purchasing it ourselves for investment. We ended up not buying it and it sold for $375,000 not too long afterward. Just recently the same model of cabin in Black Bear Ridge came on the market completely furnished as a foreclosure with a much better view and now it is in contract for $369,000. So prices have without question seen declines (particularly in certain developments facing a lot of foreclosures) from the beginning of the year to now. The reason I believe there is still room for the prices of cabins to go down is because even at current foreclosure prices, most cabins do not cash flow with 20% down after paying 40% to a rental management company and all the utility expenses, taxes, homeowners insurance,etc. There are a few cabins here and there that will cash flow, but the vast majority still do not. When a large portion of the cabins hit the point where they cash flow I believe that will be the turning point as investors see the cabins as a wise investment and while there is a lot of inventory of good deals they will begin buying again. As they begin buying at the point where quite a few cabins cash flow, the inventory will go back down and I think there will be a recovery. I cant predict when that point will be, but I do try to have as much data as possible and analyze the market very carefully.

Currently, the developments with the most foreclosures are Black Bear Ridge, Hidden Springs Resort, and Covered Bridge Resort. This can be attributed to buyers paying outrageously high amounts for cabins at the peak of the market and the cabins never realizing the gross rental income they were "projected" to have. Most other foreclosures are scattered here and there, other than the three I mentioned above and Sky Harbor (just due to its sheer size and large number of cabins). A lot of the good deals in Black Bear Ridge have already been picked over, but there are sure to be more foreclosures upcoming. Hidden Springs Resort has experienced the most recent influx of foreclosures, which was predictable as I had viewed many of them in a "short sale" status.

To summarize, my opinion of the market is that it has some room to go down in prices still with the rental investment cabins. Many of the foreclosed cabins even at drastically reduced prices do not necessarily make a good investment in terms of cash flow. There are typically a few reasons a cabin does enter into foreclosure - either the owner paid too much for the property, the cabin was not suitable for a well performing rental cabin, or the owner simply is facing troubles economically. Unfortunately, many cabin owners are faced with all three situations at once which usually leads to a position difficult to recover. A lot of the cabins going into foreclosures do not have good views or other attributes and amenities necessary for a well performing rental cabin.

I believe my useful skill is to sort through these properties and determine which are the most appealing as investments by analyzing the potential rental income a cabin should generate. For example, if there is a foreclosed cabin with a good view, all the modern amenities, and in a well established and proven development it will typically be a good cabin to consider because it should perform well as a rental. Situations where an owner who foreclosed and paid too much for the property or faced other economic difficulties are the type of cabins to focus the searches. Buying a cabin that foreclosed due to the flaws of the cabin itself usually leads to just more troubles unless the cabin is purchased at an extremely low price. Purchasing a cabin that does not have a good view, does not have an open floor plan or large windows, and does not have the amenities visitors desire still leaves you with a cabin that lacks what it takes to be an excellent performing rental - even if you did purchase it at what is perceived as a "good deal".

I hope this blog was helpful in answering a couple questions I know several of my clients have. If anyone has any other questions they would like my opinion on, please feel free to e-mail me and I will give my best response. Thank you!

About one month ago I blogged about the number of new listings on the market in comparison to sold properties. The statistics from March 6th to the previous 30 days indicated there were 902 new listings and 152 properties sold. A month later, the numbers show a similar trend with slightly fewer new listings on the market, but less real estate sold as well.

The ratio of new listings to sold one month ago was about 5.67. This month the ratio takes a slight turn for the worse at 6.58. This creates a very attractive market for buyers with the surplus of inventory on the market. With the increased number of foreclosures and short sales within Sevier County, some non-foreclosed owners are drastically dropping prices in order to compete with the bank owned properties. On the other hand, many overnight cabin rental owners are fairly affluent and can weather the storm by maintaining more stable prices. The largest market effected with foreclosures has been Planned Unit Developments (PUD's).

They were developed at the very height of the real estate boom in order to create inventory for the high level of demand. Builders and developers simply could not build enough cabins. With all of the hoopla of buying investment cabins during the 2004 to 2006 period, buyers were drastically overpaying for properties in relation to the rental income a property could produce. Buyers were not looking at cabins as an investment with respect to rental revenues, but with the hope of appreciation. Several of the PUD's offered 0% down financing and quoted high projected rental incomes. Some of these developments like Black Bear Ridge and Hidden Springs are now flooded with "For Sale" signs - many being bank owned cabins.

The owners with zero money down and no equity in the property simply walked away and let the properties go into foreclosure. This is very unfortunate for those who did put down a substantial amount of money and now see the values on the decline. One particular case is a 6 bedroom, 6.5 bath cabin in Black Bear Ridge selling furnished and new for $770,000 in 2006. This cabin recently sold for $365,000 as a bank foreclosure. Well less than $85 per square foot. The market has went from one extreme to another. Some properties I feel are undervalued now in the PUD's based on their potential rental income. Still, I am hesitant because there are other foreclosures sure to come on the market in these developments and one must wonder where is the absolute rock bottom?

I am a frequent visitor of local auctions - partially looking for a bargain on some real estate and in some ways for curiousity, entertainment, and getting a better feel for the real estate market.

Recently, I have attended auctions by various companies including Furrow Auction Company for some beautiful commercial land in Wears Valley - where my family ended up purchasing 2.6 acres for what we feel was a good bargain (approximately $85,000 less than the current tax appraised value of the land).

Other auctions included some large land parcels for sale by Thompson Carr (180+ acres off Henrytown Rd.) and McCarter Auction (70 acres off Thomas Cross Rd. in New Center). In both of these auctions the large parcels of land sold for shockingly low figures in comparison to what most people are used to seeing for acreage in Sevier County. I even attended an auction for a lot where nobody showed up. We had our eye on Lot 32 E. Harvest Moon Rd. in The Homestead for a while and noticed it was to be auctioned off by Jax Auctions. Much to our surprise my dad and I were the only people to show up - including the auctioneer! As soon as we arrived and saw nobody else was on-site we quickly called the auction company and were told Mr. Jax (the auctioneer) had become sick and was unable to conduct the auction. We also attended the auction of the James Lee Fox farm with prime frontage on Veterans Parkway (by Marty Loveday) and the large Commercial Motorcycle shop with living quarters above off Wears Valley Rd. (auctioned by Kennedy Auction). Needless to say, I enjoy going to auctions!

I had learned about the auction of the 3 bank owned cabins in Lones Branch Resort by driving by the development on Jayell Road. Personally, I am not a big fan of the development because the area is primarily a permanent resident neighborhood and to me the cabins stacked on top of each other in the PUD sticks out like a sore thumb. But, I wasnt ready to write the properties off just yet. I did my research of the past selling prices of all the cabins and the current cabins on the market. The development only had 3 different models built in the community, so finding comparable properties was very easy. The lowest priced sold cabin with the same floor plan (1,008 square feet) was $130,000, but this cabin was unfurnished. Current similar properties were listed in the $170,000 range with one pending contract at $154,900.

After more research, I learned of the horrible mess the development encountered in its past. The developer, Dan Stetson of Stetson & Associates out of Florida, created Deer Path Vacations. The development company solicited money from ministers and other religious leaders across the nation for investment cabins promised to perform well and be excellent investments. Title deeds were never recorded, the developer placed cabins over the lot lines, and in the case of Douglas Lake Resort managed to place septic, water lines, and cabins on the wrong property. Banks had to end up buying all the properties at auction in the developments. The situation had become such a disaster the Douglas Lake Resort development's owners are now forced to pay a $50,000 special assessment for the roads, water, and sewer lines to be brought onto site. The develpoments facing the problems are Douglas Lake Resort and to a lesser extent Lones Branch Resort. This dropped my enthusiasm even more for attending the auction, but I thought with a non-local auction company, Cole Auctions is out of Morristown and operate in 4 different states, there might be a chance not many people would show up. I had not seen any other form of advertisement for the absolute auction.

 Doing my due dilligence, I called the owner of Cole Auctions, David Cole, submitted by Broker Participation form (to get my 2% Commission if I were to buy a property as a Realtor - which was another interesting ordeal in itself from Mr. Cole) and asked him if he had the financials of the Home Owner's Association. He told me over the phone that he did not have them, but could contact the bank (who owned the cabins) and have them look into it and he would "let me know if there was anything adverse in the HOA financials".

By the time Saturday had rolled around, I had to juggle two different clients over the weekend and attend the auction, so I knew I would be busy fitting the auction into my schedules. I arrived at the auction site just in time and registered. I was bidder #20 and I would estimate I was one of the last 2 people registering. So, I was thinking, this was a little more of a turnout than I had expected, but there is still a chance for a deal depending on who shows up.

Of the three cabins the one I had the most interest in was located on Lones Branch Creek. The auction company had binders of information in the cabin prior to the auction for inspection. When I viewed the survey for the cabin, I noticed a large portion of the cabin sat over the lot line and actually into the road. I asked an assistant of the auctioneer about this and he assured me they filed a variance and got it approved by the proper authorities.

The auction was about to begin and the auctioneer, opened up by answering any questions by the bidders. There was an attorney on-site and he provided an answer about the cabin encroaching over the lot line and into the road. Mr. Cole, the auctioneer, then asked for other questions. I spoke up and asked if he had ever obtained the financial of the HOA. He looked at me puzzled and asked me to ask the question again. So, I said "about 3 days ago I called you and asked about the financials of the HOA". He then sharply replied "I never talked to anybody about that". Which was absolutely 100% untrue and really upset me because not only was he not being honest, but it made me look like a fool in front of all of the other people. At this time, I wondered why he would say such a thing about the financials of the HOA. The attorney then stepped in and said the HOA was scheduled for their meeting next week. Something seemed fishy to me, so at this point, I had decided I would not bid no matter how low the property was going to end up going for.

I wanted to get up in front of everyone and tell them of the past issues with the develpment because very few of the people attending seemed aware of the past situations. To make a long story even longer, the cabins began being auctioned as buyers choice (the winning bidder could choose the cabin they wanted at that price or a combination of cabins at the final bid price). The cabin on the creek sold first for $140,00 (with a 10% buyers premium for a total of $154,000). The lady who won the bid was not even sure which cabin she was going to decide upon after winning the bid - she finally selected the cabin on the creek after hesitation.

The rest of the auction was conducted in a more normal manner, with the other identical cabins selling for $135,000 (+ 10% buyers premium for a total of $148,500) and $122,500 (+ 10% buyers premium for a total of $134,750). The last buyer received a pretty decent deal considering the lowest price a cabin has sold in the development was $130,000 and that was unfurnished. The other bidders paid close to market value in my opinion.

The auction ended up being a total waste of my time (as some are, you never know going in) and quite frustrating to have an auctioneer flat out make false statements regarding our previous conversation in front of the crowd. It will be interesting to see what happens in that HOA meeting in the next week. I know there was a special assessment of $50,000 per property owner in the Douglas Lake Resort community for the mess the developer created. I hope for the sake of the people who won the property in the auction, this is not the case for Lones Branch Resort.

I have had relatively positive experiences with McCarter Auction, Furrow Auction Company, Marty Loveday, and Thompson Carr, but my experiences with Cole Auctions is what gives the auction industry a bad name in certain circles.

Wilderness at the Smokies is a new upscale waterpark resort including condos, hotels, and nearby event center and golf course. The indoor waterpark is the first of its kind in the East TN area and provides year round entertainment and fun. The owner of Wilderness at the Smokies is waterpark industry leader Wilderness Development Corporation - the owner of the popular Wisconsin Dells, WI waterpark resort named Wilderness Hotel & Golf Resort which includes one of the nation’s largest indoor waterpark.

Wilderness at the Smokies is located in the new Bridgemont Development Project in Sevierville, TN. Wilderness at the Smokies is part of the 1,000 acre development that includes the new Sevierville Events Center, Eagles Landing Golf Course, resort housing, cabin rentals, and various shopping opportunities.

The success of the Wilderness Hotel & Golf Resort combined with the approximate 12 million visitors to the Smoky Mountains are likely to make Wilderness at the Smokies one of the Smoky Mountains top attractions, if not one of the top attractions in the Southeast! Condos are available for this project and can be placed on the overnight rental program to create income from your investment. The Sevierville Events Center is already 50%+ booked through the year 2010, creating a need for many condos/hotel rooms nearby. The 1,000 acre Bridgemont Development is a large enough project it could be a destination itself. The full sustaining development will consist of everything one could need, luxury and affordable condo, hotel, and cabin accomodations, shopping, several restaurants, golf course, outdoor and indoor waterpark, and much more! All of this located within minutes of Pigeon Forge & Gatlinburg with a view of the Smoky Mountains.

The condos offered for sale feature uspcale furnishings, access to the indoor waterpark, and luxury amenities. The “River Lodge” is the first phase of the condos. River Lodge consists of four stories of condominium homes, many of which overlook the amazing indoor waterpark and playful outdoor water features. A variety of balcony views range from that of the waterpark, events center, golf course and Bridgemont retail locations. The condos within the lodge offer 2 bedroom plus, 1 bedroom plus, and studio condos. Please click for a sample floor plan of the condos.

Contact me at 1-800-832-1115 for more information about the Wilderness At The Smokies Waterpark Condos! Or e-mail me at jay@wearsvalleyhomes.com

Golfing At Bridgemont - Eagle’s Landing Golf Course (18 Holes) & Championship Course

The golf courses located in the Bridgemont development are the already existing 18 Hole Eagle’s Landing course owned by the City of Sevierville as well as a new 18 hole course to in conjunction with the Wilderness at the Smokies waterpark resort and condos. The golf courses have earned top recognition by Golf Inc. Magazine. One course will have a designation as resort course, while the other will be the Championship Course.

Shopping At Bridgemont - “The Shops At Bridgemont” and “Bridgemont Commons

”The Goodman Company of West Palm Beach, FL will be developing the Bridgemont Shopping Center area called the “Shops At Bridgemont” which is located in the Bridgemont Development Project just South of the Wilderness at the Smokies. The Shops at Bridgemont includes 531,000 square feet of shopping, dining, and entertainment.

In addition, the Goodman Company will be developing “Bridgemont Commons” located on the other side of the Parkway at the proposed (2010) bypass location which connects to Dollywood.

"Bridgemont Commons is a proposed 200,000+- square foot power center located on the east side of Hwy 66 at the intersection of the new Hwy 66 Bypass that is expected to be completed in late 2010. This location will be an extension of The Shops of Bridgemont, a 531,000 square foot lifestyle center, directly across Hwy 66. It is projected that this new intersection of the Hwy 66 Bypass and Hwy 66 will be the preeminent intersection within Sevierville, TN. With over 12 million yearly visitors to Sevierville, almost all of them exit off I-40 six miles to the north and drive south along Hwy 66. It is expected that the new Bypass will divert almost 40% of that southerly traffic which creates a highly synergistic intersection when including the Shops at Bridgemont and the 1000 acre Residential/Hotel /Events Center development across the street.” - The Goodman Company

Sevierville Events Center at Bridgemont

The Sevierville Events Center had its grand opening September 18, 2007 and is already over 50% booked through the year 2010. With the 12 million+ visitors to the Smokies, there is a high demand for large groups and meeting facilities. The Sevierville Events Center is planned to host several major events such as Car & Auto Shows, boat shows, indoor trade shows, indoor/outdoor trade shows, entertainment balls, sports & religious events, association events, wedding receptions, and other specialized events such as the Log & Timber Frame Home Show.

“Looking for a facility that can handle trade shows, conventions, competitions, and special events with ease and skill? Our state-of-the-art Events Center offers 108,000 square foot Exhibit Hall, 19,000 square foot Ball Room, pre-function space and show office, plus expansive outdoor areas for boat, car, RV, and equipment shows. Seeking to streamline logistics for event participants? We have you covered, with 10 spacious and convenient loading berths, nearly two acres of dedicated bus, trailer, and truck parking space, and the ability to drive vehicles onto the exhibit hall floor. More than 1600 parking spaces will be available for event participants and attendees. How about a mind-boggling array of lodging options and activities in a beautiful mountain setting with incredible views, modern comfort and value pricing? Your attendees and their families will marvel at the choices.

Every aspect of the Sevierville Events Center was designed with you, the event planner, in mind. Throughout the facility, you will recognize a dedication to excellence and attention to detail unlike anything you have experienced. Our function space is accessible and accommodating, inside and out. Every member of our convention planning team has a warm welcome for all who visit—and a commitment to uncompromising service.

From indoor trade shows to outdoor vehicle and equipment displays, your special events will be creative, compelling, and orchestrated to perfection. Attendee and guest meals, from banquets to the Exhibit Hall Food Court, will be managed by Centerplate, Inc., award-winning caterers and concessionaires at nine Super Bowls, 25 World Series and nine Presidential Inaugural Balls. As a result, each meal will become a gourmet treat. Your attendees will feast on the fruits of our labors — while you relax and savor the sweet taste of success.

Sitting at the doorstep of America’s family vacation playground, The BRIDGEMONT entertainment and event destination offers you and your attendees an abundance of lodging, leisure and recreational options. Onsite hotels (one of which is connected to the Events Center) will feature comfortable, generously proportioned guestrooms, excellent amenities, and refreshing indoor and outdoor water activities.

Golfers of all ages and skill levels will be challenged by our resort course, and 18 hold championship course, directly adjacent to the Sevierville Events Center. Beautifully landscaped grounds and majestic mountain vistas will offer an inviting setting for daytime and evening activities. Furthermore, guests will enjoy excellent shopping, dining, and family entertainment without ever leaving the grounds.

Attendees wishing to explore the surrounding areas will appreciate our trolley service. From historic downtown Sevierville, with its all-American Main Street charm, to Pigeon Forge and Gatlinburg, with their shows, theme parks, museums, and shopping, the opportunities are boundless.

For nature lovers, the incomparable beauty of the Great Smoky Mountains National Park, with its hiking trails, pristine rivers, and historic exhibits, is minutes away.

Special Event and Exhibit Services

A dedicated and professional events staff will satisfy attendees’ every request. Nationally known Centerplate, Inc., caterer to presidents, celebrities, and business executives, will bring its distinctive gourmet touch to banquets, luncheons, and other dining events

Lodging and Amenities

Several hundred comfortably equipped resort rooms will be located in our four distinctive, onsite lodging facilities. A 284 room with 16 suites convention hotel will connect to the Convention Center. Onsite hotels will offer their guests both indoor and outdoor water features.

Recreation and Leisure

Within the complex will be a specialty entertainment zone with an assortment of family fun options. Two 18- hole golf courses (one championship) will challenge players at all skill levels. Attractions and ShoppingThe incredible diversity of the area provides a wide array of options, including great shopping, family sports, museums, and live performances. A trolley will run from the center to historic Sevierville and action-packed Pigeon Forge.

Dining

A Centerplate-run Food Court next to the exhibit hall will bring quality and variety to every event. Restaurants in the entertainment zone afford even more dining choices

.Accessibility

Easily accessible within a days drive of 75 percent of the country’s population. Those traveling on corporate and charter planes are just minutes away from Pigeon Forge / Gatlinburg Airport.” - City Of Sevierville Events Center Website

Visit My Website at http://www.wearsvalleyhomes.com/ for more information about Smoky Mountain Real Estate and for more specific information including photos, floor plans, and more about the Wilderness at the Smokies go to www.WearsValleyHomes.com/wilderness-at-the-smokies.php.