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The days of the oversized home seems to be over. Smaller homes are the new trend. With the economic downturn that the country has been experiencing over the last few years, especially in the housing market, many people are trying to find ways to save money.
The National Association of Home Builders conducted a survey to see what housing trends are on the horizon. They found that today’s Anchorage home buyer is looking for a smaller, “greener” home to occupy. Their study concluded that, by 2015, homes will be approximately 10% smaller on average with more technology than today’s homes.
Smaller Alaska homes are less expensive to heat, cool and maintain than their larger counterparts. Since more than half of the nation’s households contain only one or two inhabitants, a downsized home can still have plenty of space.
Other changes the NAHB study found were that the traditional living room seems to be over. In future building, it will either be merged with the kitchen (like many family rooms are today) or will be a much smaller parlor area that would function more as a study or retreat than a large family gathering area. “Extras”, like a fourth bedroom, third bathroom, media room, second master suite or that third car garage are on their way out in new Alaska home construction as well. Green is in with energy efficient appliances, “low-E” windows (using glass coated with a thin film to keep your Anchorage home cooler in the summer and warmer in the winter), engineered building materials and more water efficient features.
If you’re interested in purchasing a smaller home in the Anchorage area, let me know. I’ll help you see why smaller homes are the new trend, especially here in Alaska.
Pauline Hofseth, your Anchorage real estate specialist
The days of the oversized home seems to be over. Smaller homes are the new trend. With the economic downturn that the country has been experiencing over the last few years, especially in the housing market, many people are trying to find ways to save money.
The National Association of Home Builders conducted a survey to see what housing trends are on the horizon. They found that today’s Anchorage home buyer is looking for a smaller, “greener” home to occupy. Their study concluded that, by 2015, homes will be approximately 10% smaller on average with more technology than today’s homes.
Smaller Alaska homes are less expensive to heat, cool and maintain than their larger counterparts. Since more than half of the nation’s households contain only one or two inhabitants, a downsized home can still have plenty of space.
Other changes the NAHB study found were that the traditional living room seems to be over. In future building, it will either be merged with the kitchen (like many family rooms are today) or will be a much smaller parlor area that would function more as a study or retreat than a large family gathering area. “Extras”, like a fourth bedroom, third bathroom, media room, second master suite or that third car garage are on their way out in new Alaska home construction as well. Green is in with energy efficient appliances, “low-E” windows (using glass coated with a thin film to keep your Anchorage home cooler in the summer and warmer in the winter), engineered building materials and more water efficient features.
If you’re interested in purchasing a smaller home in the Anchorage area, let me know. I’ll help you see why smaller homes are the new trend, especially here in Alaska.
You have a new baby on the way and the Anchorage house you thought was big when you bought it suddenly doesn’t seem so large. Or, you are beginning to work from home and find that the kitchen isn’t really conducive to good business. You may find yourself wondering whether the home you currently live in will hold the changes your family is going through or whether you should just start looking for a new place to live. To move or improve…now that is the question!
To decide whether making a few improvements makes sense or if you should move into another home, you should really ask yourself the following questions:
How long do I plan to live in my current home?
If your home is just a stepping stone to getting another Anchorage home in the next couple of years, investing alot of money into home improvements may not make much financial sense. Also, living in a construction zone can be stressful. So, make sure that the improvements you plan on making will be ones that are worth the stress and sawdust.
When I do sell the home, can I recoup the cost of my improvements?
Not all improvements are alike. Ask your Anchorage real estate agent for your neighborhood comps for Anchorage homes recently sold in your neighborhood to see if your planned improvements are worth the cost. If the cost of improvements prices your home outside the local real estate market, you may want to reconsider whether to continue with the remodeling effort or not. If you still do make improvements, be prepared to absorb some of the cost to do so because you will not be able to recoup the full cost when you sell your Anchorage home.
Do my improvements make sense?
In other words, if you live in an older home and wish to completely tear out the kitchen to install a brand new, $75,000 one, is that really the smart thing to do? Many appraisers believe that making improvements that don’t fit the original design or time period of the home’s construction can be too costly to recoup when it comes time to sell. Also, before you construct that additional room on your home, make sure to check the setback requirements to make sure the addition follows zoning laws and doesn’t actually partially sit on your neighbor’s property.
Is is possible to “over” improve my home?
The simple answer to this question is yes. If you make improvements that put your home’s price point out of touch with the rest of what the neighborhood has to offer, it may take you much longer to sell. The improvements you make to fit your needs may limit who you sell to in the future. If you plan on selling your Anchorage home in the next few years, this is something you should consider before you remodel.
There are many things to consider when you wish to remodel your Anchorage home. Consider and weigh the options before deciding whether to move or improve…that really is the question. If you do decide to sell your Anchorage home, please contact me. I’m here when you need me!
Did you think that the “no money down” days of home buying were over? Not according to the National Association of REALTORS®. The NAR conducted a study of homebuyers and sellers from 2009 that showed that 20% of all first-time home buyers and 10% of repeat home buyers bought their homes with absolutely no money down (100% financing). Typically, however, buyers are required to come up with around 8% of the sale price to purchase a home in today’s market. Last year, the historically low interest rates and tax credit incentives helped to sell 5.2 million existing homes. With rates remaining low and down payments remaining small, it looks like there may be another 5+ million homes sold this year as well.
What do you need to get a “no money down” loan? Active members of the military as well as veterans are able to qualify for home loans with no money down much more easily than the rest of the homebuyers out there. With programs like the Veteran’s Affairs Home Loan Guarantee Program, active and retired military members can also purchase a home with very little money up front. Additionally, a homeowner that used a VA loan to purchase their home and ends up in foreclosure means that the homeownership reverts back to the VA. Since the VA is not interested in managing homes, they want to sell foreclosed homes as quickly as possible. Usually, the only way to do this is to sell it with no money down.
If you’re interested in finding out how you can buy an Anchorage home with no money down, I’d be happy to talk to you about your options. Just contact me today. While they are definitely not the “norm”, the “no money down” days of home buyer are no over!
If you are like many people over the last couple of years, you may have found yourself in dire financial straits and unable to keep your home. But now you have picked yourself up, dusted yourself off and thought about diving into the Anchorage real estate pool again. But, are you wondering how long after a foreclosure do you have to wait before you will be able to finance another home? I’ve got the answers for you right here.
Typically, if you have your home foreclosured on or handed over to the lender under deed-in-lieu of foreclosure, you won’t be eligible for FHA financing for three years after your previous home was foreclosed on. If you filed for Chapter 7 Bankruptcy (where you may keep some property but are liquidating your debts), you won’t be eligible to apply for a new FHA loan for two years. However, if you filed for Chapter 13 Bankruptcy (the reorganization of debt), you may only have to wait as little as 12 months.
It’s important to remember, however, that these rules are not written in stone. Some lenders may allow you to apply for an FHA loan less than three years after a foreclosure if the previous home was lost due to extenuating circumstances, such as an extended illness or even death of a spouse. On the other hand, some lenders may follow even stricter guidelines and refuse a loan even after three years have passed since the foreclosure. That is why it is important to speak with your local lenders before you apply for an FHA loan to see what their stance is on previous foreclosures and financing your next Anchorage home. Of course, you can always contact me and I’ll be happy to help you find the answers you need!
If you are looking to refinance or purchase an Anchorage home, you may want to find out what your credit score is about 3-6 months before you plan on applying for a loan. Why should you check your credit score before you buy? Lenders use your credit score to determine 1) whether or not to approve you and 2) what your interest rate is going to be once you are approved for a loan. When your loan is going through the approval process, lenders will look at all three credit reporting agencies: Experian, Equifax and TransUnion. They then use the middle score from all three agencies as your final credit score to determine your creditworthiness and your interest rate.
You are allowed one free credit report per agency per year. You can request all three at one time or you can spread them out every few months. There are several places online where you can request a free credit report. But speaking directly to a lender may be the best way to get this done.
Why should you speak to a lender so early in your Anchorage home buying process? This will give you enough time to find and fix any errors that may come up on any of your credit reports. The better your credit looks at the time you apply for a loan, the better chances you have of getting a home loan at a decent interest rate. Even a 1% difference in interest rates can save or cost you thousands of dollars over the life of a loan.
So, to make sure you get the best home loan at the best rates, even when you’re refinancing your current Anchorage home, make sure to check your credit score before you buy. If you are unsure how to do this, please contact me.
The age old question of “Should it stay or should it go?” comes up time and time again in most real estate transactions. If you are selling an Anchorage home, is it customary to leave the washer and dryer with the home or does it go with you? If you are buying an Anchorage property, are you expecting to bring your own refrigerator with you when you move in or do you think the refrigerator should be left by the previous owner as part of the purchase price of the property? However, just because a refrigerator may traditionally be left with the home and considered part of the purchased property, that doesn’t mean that this always happens. That is why you need to be very specific about your expectations when filling our your purhase offer. For buyers, this means specifying exactly what you expect to be included in the purchase price: washer, dryer, refrigerator, light fixtures, microwave, portable hot tub, even the stove. If you are selling your home, go over the purchase agreement to make sure something isn’t being included that you expect to take with you. By clearly stating what is to be included in your Anchorage real estate purchase, both buyers and sellers will be happy with the transaction and not run into unexpected “surprises” at closing. Make sure to talk to your real estate agent about what should stay and what should go with your Anchorage real estate transaction.
The 2009 Anchorage International Film Festival takes place from December 4-17 this year at Bear Tooth (1230 W 27th Avenue), 4th Avenue Marketplace (333 W 4th Avenue), Anchorage Museum (121 W 7th Avenue) and Out North (3800 DeBarr Road) around Anchorage. Independent films will be showcased at this festival. The great outdoors seems to be a huge focus of the films this year, with movies like “Mount St. Elias”, a film about three climbers that ski their way down Alaska’s second tallest mountain. “Mount St. Elias” is only one of seven Alaska films that center on Alaska’s great outdoors. The opening night film will be “Hipsters“. The screening starts at 7pm, with the gala party to follow at 9:30pm). Tickets are now on sale at the Bear Tooth (1230 W 27th Avenue). An All Films Pass ($75) will allow entry to all screenings except for the opening night film. If you want to include the opening night film, gala parties and workshops, you can purchase an All Films & Events Pass for $95. For more info about tickets, please call 907-276-4200.
For a rundown of the movies, times and venues, please visit the Anchorage International Film Festival website. I hope you are able to get out to the 2009 Anchorage International Film Festival during the next couple of weeks. It’s a great event that shines a nice spotlight on Anchorage.
A public workshop discussing midtown Anchorage growth will be held in the conference room of the Loussac Public Library from 6-8:30pm on Thursday, November 19, 2009. A special presentation is scheduled for 7pm, with a discussion following. The Midtown District Plan has gone through several incarnations over the last couple of years. The Municipality of Anchorage (MOA) wants to hear any public comments, criticisms or ideas. They are happy to implement anything that makes the Midtown District Plan stronger. The deadline for all Anchorage residents to make public comment on the Public Review Draft are due by December 15, 2009. The final review will be submitted at that time. You can download a copy of the Public Review Draft here. All public comments can be made in person at the public workshop on Thursday, November 19th, via email to Tana Klunder at klundertg@ci.anchorage.ak.us or via snail mail to:
ATTN: Midtown District Plan
4700 Elmore Rd, 2nd Floor
Anchorage, AK 99507
All snail mail must be received well in advance of the December 15, 2009 to be considered to be included in the final review. Please make plans to come to the public workshop for Midtown Anchorage Growth on Thursday, November 19th to make sure to get your thoughts and opinions considered for this important project for the Anchorage economy.
Our new Mayor, Daniel Sullivan, is asking you to participate in a survey on how to best balance the Anchorage budget. Mayor Sullivan is taking the time to step back to look at the city services for cost-effectiveness before making decisions on how to spend your tax dollar.
I know that we all have opinions about making Anchorage a better place to live, how the municipality can serve us better and how money should be spent. Many states and cities have found themselves out of money because they have tried to spend their way to prosperity. The only way to prosperity is through common sense budgeting and spending within that budget. Living through overspending and borrowing is an inevitable road to disaster.
Each and every one of us must prioritize the way we spend money, especially if you want to save for the future. Mayor Sullivan seems to recognize the fact that the municipality must do the same.
Please take the time to send your ideas for improvements and budget cuts. Let the Mayor and his administrators know what they can do to serve you better.
Anchorage Survey – if this link does not open the survey page, please go to the municipality website at: http://socsurvey.muni.org/.
Today, I thought I would update sellers on the Anchorage market conditions and share a few tips for sellers and for those thinking of placing their home on the market.
Market Conditions
* There are fewer homes on the market this year compared to 2008 (about 4.8%).
* Competition is still stiff with over 1,200 single-family homes (new construction and resale) and over 500 townhomes/condos for sale.
* Best selling price range is between $225,000 and $350,000 for single-family homes.
* Best selling price range is between $100,000 and $130,000 for townhomes/condos.
* Average days on market vary according to sales price.
Single-Family Residences:
o Under $180,000 – 120 days
o $180,000 – $200,000 – over 90 days but less than 120 days
o $200,000 to $225,000 – about 25 days on market
o $225,000 to $250,000 – near the 45 day mark
o $275,000 to $300,000 – near the 90 day mark
o $300,000 to $350,000 – about 135 day
o $400,000 to $750,000 – 180 – 210 days or more
o $750,000 and over – 365 days and as long as 2+ years
Townhomes/Condos
o $100,000 to $130,000 – 90 days
o $200,000 and $225,000 – 270 days (due to excess supply)
o $300,000 and over – 365 days and as long as 20 months
Seller Tips
* Price it right. If you want your property to sell within the average days on market timeline, you must price competitively.
* Price it right. Homes which are priced at true market value normally sell first.
* Homes which are in good condition and reasonably priced will sell before properties in poorer condition.
* Homes which show well inside and out,and are reasonably priced sell before competing properties in the same price range.
* Multiple offers are still a possiblity when the home is priced well.
* Expect buyers to ask for concessions.
* Be prepared to negotiate on pricing and/or terms when the offer is presented.
* If you are having a good number of showings but no offers, the home is most likely considered overpriced by buyers, who will continue to shop for a better value.
* If your home is not receiving any showings, then something is unappealing to buyers, whether it is price, condition or location.
* You cannot change your location. You may or may not be able to change the condition. However, you can definitely change your asking price to attract buyers.
* If your home is not selling, talk to your licensee about what corrections need to be made to draw more attention to your home.
* If you are placing your home on the market, look at the comparative sales in your neighborhood to determine competitive pricing.
* If you do not want to sell your home in a reasonable amount of time, test the market. However, statistically speaking, testing the market will not only lead to frustration. But, many times, testing the market will result in a selling price less than if the home had been competitively priced when first placed on the market.
* 95% of buyers begin their property search on the internet.
* Buyers who research properties on the internet are more informed regarding what they want from a home and what they are willing to pay.
* More buyers are researching homes on the internet. So, open houses are less effective than in past years.
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