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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!
If you are interested in buying an Anchorage home, there are a few common mistakes that buyers can avoid if they know what to look for. You definitely want to keep a list of your questions handy at all times and always hire the right team of professionals for your needs to make sure your Anchorage real estate purchase goes smoothly and effectively.
Choosing the right agent for you - Since both personalities and experience can vary greatly from agent to agent, you should interview several local REALTORS® before deciding which one you want to represent you. Before you interview an agent, get a list of your most important questions together and use them to help you find out their qualifications and if they are a good “fit” for you.
Research lenders – Again, gathering a list of your most important questions will help get the interview process moving along. Ask anything and everything you want to have answers for. With the predatory lending practices of mortgage companies in the past, you want to make sure you understand every aspect of what goes into your mortgage.
No window shopping – If you are looking in an area that is considered to be highly desirable, there will be a ton of competition. A home for sale in a desirable area doesn’t have the same issues as one that isn’t. This means that if you’re not ready to buy at that time, it may not be there when you are ready. So, only look for a home when you are absolutely ready to purchase one.
Think about the future – While you may be fine with the small bedrooms, no master bathroom and a laundry room in the garage, will another buyer feel the same? If you are purchasing an Anchorage home now with the thought of selling it in a few years, you need to consider the home’s resale value. You also want to check out the neighborhood to see if the homes are appreciating in value or if they are on a losing streak. If they are still tumbling in value, that could mean that you may find yourself losing money when it comes time to sell it.
By keeping these common mistakes buyers can avoid in mind when looking for your Anchorage home, you are sure to come out ahead in any real estate transaction. If you are considering purchasing any Anchorage real estate, make sure to contact me today!
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!
With the economy taking such a hard hit in the last few years, several people find themselves in the unhappy position of needing to modify their loan terms in order to avoid a possible foreclosure. Unfortunately, with the recent loan modification programs that have been put in place, there have also been an onslaught of loan modification scams.
Freddie Mac, Fannie Mae, the Lawyers Committee for Civil Rights Under Law, Neighbor Works America and other agencies have banded together to create their own Loan Modification and Scam Prevention Network to help warn people of loan modification scam artists and help point people in the right direction to get in contact with a legitimate loan modification company.
PreventLoanScams.org was designed as an online resource to act as a national clearinghouse for loan modification scam information in support of national, state and local law enforcement efforts. Scam loan modification companies usually demand money up front to help homeowners in distress with their mortgage loans and the homeowners never actually receive any help. Without any help and even less money, the homeowners have no choice but to watch as their homes get foreclosed on.
The PreventLoanScams.org website offers electronic filing of complaints, press releases of the lastest information about loan modification fruad, information on how to report a scam, real stories from people who have been the victims of fraudulent loan modification activity and a state by state breakdown of resources to help you file complaints against specific loan modification companies in your area. They also provide names of organizations and individuals who have been identified by law enforcement agencies as alleged scammers to help curb loan modification fraud.
In addition to the website, homeowners can contact the Homeowners’ HOPE Hotline at 888-995-HOPE to lodge a complaint and receive free information about legitimate loan modification services.
It’s difficult enough to be worried about keeping your Anchorage home. You don’t want to be a victim of loan modification scams as well. This online resource is a great place to do your homework before you apply for your loan modification.
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 First Time Homebuyer Tax Credit deadline is fast approaching. In order to take advantage of up to $8000 in tax credits, you must have an Anchorage home in a binding contract by the end of business on April 30, 2010. That’s just about a week and a half away. That doesn’t leave much time to find your Anchorage dream home and get it under contract. If you’re a current homeowner looking to buy a new Anchorage home, you only have a week and a half to take advantage of the $6500 tax credit available. A first time homebuyer is someone who has not owned a home in the last three years. If you owned one previous to that, you are still considered a first time homebuyer.
Who qualifies for the tax credits:
1. Married couples who file jointly and make no more than $225,000 or single/married filing head of household families who make no more than $125,000.
2. Homebuyers looking to purchase a home for their primary residence. This means no vacation homes, income property, vacant land or commercial buildings.
3. Homebuyers purchasing a home for no more than $800,000.
If you make more than $125,000 for single/married filing head of household or $225,000 for married couples, you may be eligible for part of the tax credit. Contact your Anchorage real estate professional to find out what this might be. As long as you live in your newly purchased Anchorage home for three years, you can keep the entire tax credit you receive. If you decide to sell the home purchased under these guidelines or stop using it as your primary residence within three years, you will have to pay back the tax credit.
Let me know if you’re a first time homebuyer looking to take advantage of the tax credit before the deadline comes. I’d love to assist you in finding your Anchorage home and help you get a little money back in the process. But hurry because time is running out quickly.
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.
I was looking over my recent blogs and found that not even a month ago I asked “Is it Time for You to Refinance?”. When I posted that blog on May 19th, the interest rate was 4.75%. So, homeowners who did not refinance at that time may have missed the boat.
Interest rates have been rising rapidly for the past three weeks. Many states in the lower 48 have already experienced interest rates of 6% and above. Just yesterday, RealtyTimes.com reported that interest rates were going up and no one was predicting how high they will go. Bernard Baumohl of the Economic Outlook Group says that interest rates could go as high as 6.5% in the near future.
After a sudden and rapid rise in interest rates, the interest rates will sometimes fall back temporarily. That must be where we are today because interest rates fell back. Today’s Anchorage Alaska mortgage interest rate is: 5.625%.
Are interest rates headed back up or will they continue to go down? It seems even the experts don’t know for sure. For the past three weeks. all the mortgage alerts have reported that interest rates were going up and IF they fell back, it would only be slightly. All agree that the days of historically low interest rates (4.5%) are gone, most likely forever.
I am not a mortgage lender nor am I an economist but this is what I would have the Anchorage home buyer remember:
* Interest rates affect your buying power to purchase a home at the same payment.
- The move from 4.75% to the current 5.625% has diminished what you can buy by about $15,000.
* Interest rates affect the income required to qualify for the same loan amount.
- The move from 4.75% to the current 5.625% has increased the required income by over $4,000 (gross annual income).
Now is the time to buy:
* Now is the time to buy to take advantage of the buyer’s market in Anchorage.
* Now is the time to buy to take advantage of today’s interest rates.
* Now is the time to buy to take advantage of the first-time home buyer tax credit (escrow must close by Nov 30).
Interest rates were 6.5% a year ago. For eight years before that, they were at the 7% mark. Before that, interest rates were 9% and, at times, in the double digits. Some economic analysts are predicting an inflationary period on the horizon due to the stimulus spending. If that materializes, not only will interest rates soar, but housing prices will increase as well.
Thinking of buying? Now is the time.
In the past two weeks, interest rates began to inch up slightly. This week, RealtyTimes.com reports that today’s interest rate fell back. The current interest rate is 4.75% for a 30-year mortgage and 4.5% for a 15-year fixed rate. That report led to today’s blog. Depending on your current interest rate, it just may be time for you to consider a refinance. If your loan’s interest rate is around 6.5%, a refinance is definitely something you should check into.
* A reduction from a 6.5% to the current 4.75% interest rate would result in a savings of over $200 a month.
If that statement made you perk up your virtual ears, then I would like to remind you about the Making Home Affordable Refinance program sponsored as part of the recovery plan.
* You do not have to be in a distressed situation to take advantage of the program.
Anchorage is one of the places in the nation that the Making Home Affordable program can be of real benefit since our housing has not suffered the steep decline in values that other areas in the lower 48 have experienced. Both Making Home Affordable program and FHA will refinance the loan balance for homeowners who owe more than the property’s current value.
* The Making Home Affordable program will refinance your loan balance if it is no more than 105% of the value of the home.
* FHA will refinance your loan balance if the first mortgage is less than 97% of the homes current value.
If you have equity in your home and pay PMI (Private Mortgage Insurance – insurance lenders require if the home was financed with less than 20% down), the savings could be even greater.
* PMI may no longer be required.
Most homeowners can take advantage of the government refinance loan programs.
* Making Home Affordable Program applies to Fannie Mae and Freddie Mac loans.
* FHA also offers a refinance program.
If you have a first and second mortgage, a refinance could eliminate your second mortgage.
* Make only one mortgage payment and save thousands of dollars in interest.
Check out all your options on the type of refinance which will best meet your circumstances and goals before you make a decision.
* Making Home Affordable Program
* FHA Refinance (even if your current loan is financed through FHA)
* An FHA Streamline (current loan must be FHA loan)
* Conventional refinancing through a mortgage lender
Taking advantage of today’s refinancing opportunities may be a wise decision, but it does depend on your personal circumstance, finances and goals. I do think it is to the Anchorage homeowner’s advantage to check out the possibility of a refinance. When considering a refinance you need to look at your long time goals.
* A refinance is not free. There are fees and points to consider.
According to the various economists and mortgage lenders, interest rates are not expected to decline any lower than 4.5%. However, they are expected to increase as the housing market improves, loan applications increase and the economy recovers.
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