Log Cabin Blog

Summer season is winding down with kids returning to school. Thus far this year has been strong on the rental side and the sales market is starting to recover.

Cabin and land prices have adjusted to reflect the slower sales environment and appear to be as low as they are likely to go. The opportunities for buyers are as advantageous as I’ve seen them in about seven years.

It appears that people of each political persuasion as satisfied with their candidate and are optimistic about the upcoming election. Inquiries to my website over the last 2 months have significantly increased from the last 18 months and sales are following suit.

If an investment/second home purchase in the Smokies is on your wish list, the next 6 to 9 months should offer the best opportunities you will see with price increases appearing by next summer.

You make your money in real estate when you buy it. If you are planning a visit to the Pigeon Forge/Gatlinburg area this fall, it would be an ideal time to spend some of that trip investigating cabin opportunities.

A little over a year ago, there was a major buzz over the movie “The Secret”. Oprah had a show about it and virtually every talk show had a segment featuring it. “The Secret” was an explanation of the metaphysical “Law of Attraction” and how to use it to achieve what you want out of life.

I am a pretty metaphysical guy, but I’m not going to wade into those waters here. I am, however, going to relate to you the secret of how to attract the largest possible number of guests to your investment cabin. You can sum this secret up in six words: Give the people what they want!

Sounds like a no brainer but I have experienced potential buyers who are incensed at the idea of providing luxury furnishings, multiple games, large screen TVs and internet access in a mountain cabin. One gentleman informed me in no uncertain terms, “Anyone

who comes to the mountains to play pool and watch TV is nuts! They should be coming here to enjoy nature and hike in the park like I do!”

The long and the short of it is that people come to the Smokies for fun. So, give them all the toys they want and they will stay with you.

When you own a nightly rental cabin in the Smokies, you have a lot of people, in effect, working for you. There are the reservationists who spend most of their time on the phone booking your cabin. There are the receptionists at the front desk who greet the guests and take care of their check in and check out and are likely the ones who will help the guests if there is a problem. And of course there are the housekeeping and maintenance people who do a lot of dirty work so that your cabin isn’t.

The quality of the job they do is critical to your success and they are very often unrecognized and unappreciated. So, I recommend recognizing them! Once in a while when you are staying at your cabin order pizzas delivered to the management office. When you are leaving, leave a decent tip for the house keepers and be sure to leave a note letting them know, as owners, how much you appreciate their efforts.

It’s not that you are bribing them to do their jobs, they are paid for that. It’s really a matter of human nature. Everyone likes to be appreciated. When a reservationist is helping someone select a cabin and she finds two that fit their request, without really thinking about, she/he is likely to suggest the cabin owned by the really nice people who sent in lunch rather than the cabin owned by the snarly jerk who hassles them every time he talks to them. The housekeeper who is jammed for time on a Friday in July will take the few extra minutes to be sure your cabin is just right.

Once you have your cabin in top condition and it goes on line, your cabin investment is relatively passive. It’s the management company’s job from there. A little consideration can help make your cabin ownership as worry free and profitable as possible.  

In the last month, I have been getting significantly more inquiries than I have for the last year. There seems to be a pent up demand for Smoky Mountain Cabins and people are wondering when is the right time to buy?

Historically, when there has been a down turn in the real estate market, Sevier County, Tennessee has been one of the last areas affected and one of the first to recover. The increase in my activity indicates to me that we are seeing the first indications of an impending recovery. 

Another indicator of the underlying strength of this market is the fact that rental incomes for quality cabins in 2008 are holding their own relative to 2007 incomes. Even with higher gas prices, better cabins are booking strongly.  Ultimately, a cabin’s selling price is related to its income. So, what’s happening to prices in light of this?

Through the 2nd quarter of 2006 we maintained a brisk sales market. Then it seemed to drop like a stone. Consequently, over the last two years, over all prices have lowered, but not unrealistically. It’s a fact of human nature that the longer a strong sales period goes, the more sellers push the envelope to see just how much they can get for their cabin. So, while there has been a realistic adjustment in prices, they haven’t crashed and appear to have bottomed.

Another interesting wrinkle in the market is that some sellers of top of the line cabins are not offering wholesale price drops but are offering buyer incentives that are more beneficial to the buyer than lowering the price.

So, the market is now ripe for savvy buyers and it appears unlikely that it will get much better. How long will this go? My hunch is that as long as 51% or more of the people come out of the November elections more optimistic than they are now, the Smokey Mountain cabin market will begin its next cyclical up turn.

For your Free guide to buying a Smoky Mountain cabin go to: www.willquinn.com .    

Now that you know why so many people regularly vacation in the Tennessee Smokies, who are these people?

Our guests are Middle Class America. They run the gamut from hourly employees to doctors, lawyers and Indian chiefs. They relish every moment of vacation they can grab and want the most out of it.

Therefore, their accommodations are a top priority. Until the early 1990’s, motels were the major choice of vacationers because that was what was available. Cabins were available in limited numbers but in the 90’s the cabin development boom began in earnest and once motel frequenters experienced a cabin vacation they were hooked.

It’s easy to understand why. While everyone looks forward to their vacation, it’s still a stressful time. Here’s dad (frequently mom too- I’m not being sexist here) who have family contact a few hours a day during the week and a few more on weekends. On vacation, they’re together nearly 24 hours a day and a motel room doesn’t allow for much personal space while a cabin gives everyone some breathing room.

Through the 90’s, the demand was so high that virtually any decent cabin performed well. But as supply caught up with demand the cabin market became very competitive and remains so.

Next time we will start investigating what separates the top producing cabins from the marginal ones.

For your Free guide to buying a Smoky Mountain cabin go to: www.willquinn.com .

Since the visitors to the Smoky Mountains drive this economy this seems a good place to start. Why do people come to the Smokies and who are they?

Due to our central location, the Smokies are within a day’s drive of over 75% of the U.S. population. Look at a map you will see I-75 running north/south and I-40 going east/west. These are the corridors that bring tourists to the Smokies primarily from the eastern half of the U.S.. From Minnesota to Florida and west through Texas is our primary market area though at one time or another you’ll see license plates from every state.  

The Great Smoky Mountains National park is the most visited park in the country and 40 years ago it was the primary draw to this area. It’s still a major feature but as this area has developed, major attractions have added to the drawing power of the Smokies.

Aside from hiking, etc. in the Park, outdoor activities such as golf, horse back riding, skiing and tennis occupy much of our guests time. For years the Gatlinburg Country club (interestingly located in the heart of Pigeon Forge) was the only golf course in the area. Now, five courses provide golfers with a variety of challenges.

Dollywood rivals the Park in its drawing power. Currently open from April through December, Dollywood, along with its water park Splash Country, hosts millions of guests each year.

Shopping also ranks high on tourists’ “to do” list. Five Oaks Mall is touted as one of the largest outlet malls in the country with many high end stores. With at least five other outlet complexes, Sevier County has become a bargain shopper’s paradise. On the other end of the scale from national brand outlets, the Glades Road Craft Tour in Gatlinburg hosts numerous artist’s galleries, craft shops and unique “crafty” specialty shops and has a devoted clientele.

Add to this all of the race tracks, bungee jumping, mini golf courses, music theaters and other shows, the Smokies offer plenty to keep the tourists busy during their stay.

All of this having been said, it’s the beauty and magic of the Smoky Mountains that bring people here and keep them coming back. You can put an amusement park anywhere but you can’t reproduce the natural majesty of the Smokies.

That’s the “why” of the popularity of the Smokies. Next time I’ll discuss who our clientele is.

For your Free guide to buying a Smoky Mountain cabin go to: www.willquinn.com .