WolfTeam News

August 30, 2009

“Just Right” Condominium Opportunity-Eastridge Anchorage Alaska

I don’t very often pitch individual listings on my blog, but I’m making an exception here.  This condo is so-o-o attractive and so well taken care of, it is just begging for a professional person who has sold the big house and wants to say “good-bye” to all exterior home maintenance such as mowing yards, shoveling snow and exterior home painting. 

Convenient to Downtown Anchorage!

Convenient to Downtown Anchorage!

The owner is a meticulous professional who likes to lock the door and travel and have the peace of mind that everything is going to be secure when she returns.  There isn’t a speck of dust anywhere!

Pretty clean, huh?  The condo is three bedroom, single bath and a tad over 1,000 square feet.  The building is secure, meaning people can’t knock on your door, they buzz you from an exterior entry way and you answer (if you want to).  Oh, it’s only $152,000 which is a great price!
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August 27, 2009

Concerns Over Real Estate Market

Let’s face it, nearly every day we hear bad news about real estate somewhere. 

Here are a couple things to remember.  First, real estate markets are “local”, not national.  The media finds a story in one market, and prints it like everywhere is same.  It’s just not that way, but it sells newspapers.  The Anchorage market is the Anchorage market, not the Vegas market, or the Florida market.

Geese flying over a marshy pond in Anchorage

Geese flying over a marshy pond in Anchorage

More economists are forecasting a healthier housing market in the near future.  Recently Yale University economist Robert Shiller, who tracks housing prices nationally, said that property values may have reached a bottom.

A survey from the National Association of Realtors (NAR) shows that 80 percent of second home purchasers say now is a good time to buy real estate.  That’s even higher than the percentage who see growing opportunities in the market for primary residences.  Many vacation property buyers say they’d rather put their money in real estate now than in the stock market.

The public is increasingly optimistic that the nation’s economy will improve in the next year.

And here’s my second thing to remember;  Home ownership still works!  The most important investment you can make in your lifetime is real estate.  Yes, I’ll agree we’ve had a couple years of off market or real estate declines, but prior to that, we had 24 consecutive good years! 

 Our government believes it is good for people to own their own homes.  That is why we can deduct mortgage interest from our taxes, and get other favorable tax breaks for buying investment property.  Home ownership is a foundation of a family’s long term stability and their wealth over time.  This is one of the reasons for the $8,000 housing stimulus bill that we have in effect until December 1, 2009.

And at the end of the day, you have to live somewhere.  There are certainly more options available when you own your home!

August 24, 2009

12 Hour Adventure-Alaska Style

This blog post has absolutly nothing to do with real estate, but was a fun August evening for me.  My nine year old son, Cody, has been after me to go camping and sleep overnight in a tent.  I have been agreeing to do it, but sort of “shining” him on as far when we would do it.  Well, finally I ran out of excuses and we decided to do it on Friday night. 

A sad ending for a moose

A sad ending for a moose

We hauled our sleeping bags, tent and camp chairs to a  undisclosed “secret” location, roughly in south Anchorage, in a heavily wooded section off the coastal trail;  That’s the coastal trail the moose and bears use, not the paved one made famous by ex-mayor Tony Knowles.

We set up our tent and spread out our sleeping bags and went for a walk.  We tried to sneak up on some Sandhill

Sand Hill Cranes take flight

Sand Hill Cranes take flight

Cranes, but that didn’t work out so well.  It seems the huge Sandhill Cranes are very wary and next to impossible to sneak up on.  After we sent the cranes to flight, we stumbled upon a moose carcuss.  The poor moose must have fallen through the ice this past winter and died there, or some other similar sad fate.  Cody thought it stunk, but was very cool to see it.

On the way home, we walked past a hornets nest on the ground that was as big as an adult persons head.  We took a couple photo’s of the hornets coming and going, seriously preparing for the coming cold weather.  Bee nests must have some magnetic attraction to little boys, because the nest kept drawing Cody back in it’s direction. 

A large hornets nest

A large hornets nest

 Cody kept coming up with ideas to get rid of the nest and kill the hornets.  I reminded Cody that bees have a mom, and we should “live and let live” and we managed to leave the hornets alone and not get stung.

We came back to our campsite and built a fire.  I was in the middle of eating a hotdog I had cooked in the campfire on a stick.  Cody had walked back to get something out of the tent.  He backed out of the tent, and stood up.  I looked at him, just as a black bear walked up the trail and stopped right behind Cody at the tent.  Ten minutes ago, I had just put my camera in the tent, so I couldn’t take a photo, but a single frame could have showed Cody, the black bear and the tent all in the same frame.

I called out “Bear!” to Cody.  I said “Cody, come here!” several times, but Cody seemed frozen looking at the bear.  Finally he came to me, while the bear stood and looked at us.  Then Cody and I started waving our arms in the air and

Father and Son camping trip

Father and Son camping trip

saying “Go Away, bear!”  The bear took a few more steps our direction, to my concern, and then turned and ambled into the woods.  We could hear the bear in the forest as he carved out a new path around our campsite. 

At first I thought the bear must have smelled my hot-dog, but the more I thought about it, I think the bear was just taking a walk down the path and was surprised to see us camping so close to his path.  I pondered the risk, and decided we shouldn’t call mom because she would have insisted we come home.  We ate our food by the fire late into the night, without further incident.

That evening in our sleeping bags inside the tent we kept hearing sounds in the night, but still managed a good nights sleep.  I thought that was a fair amount of interesting things for one “dad and son” evening!  I’m sure Cody and I will remember and re-live that evening for a long, long time!

August 21, 2009

Mortgage Crisis Comes Closer to Home

The mortgage crises might not only be something you see on the evening news;  Mortgage financing changes might affect you and I right here at home.  Many people like the condominium lifestyle.  Younger people like the fact they don’t have to be responsible for the yard and grounds.  Empty-nesters like them because they can lock the door and travel, while the association handles exterior maintenance.

If you own a condominium and want to sell it, or want to buy one you may learn more about current financing than you wanted to know.  There have been major changes to underwriting criteria for condominiums over the past year.

Private Mortgage  insurers are the folks that make 5% and 10% down-payments possible. 

Condo Financing will be difficult for a while

Condo Financing will be difficult for a while

For a fee, they insure the loan to 20% of the sale price.  Due to high losses in many area’s of the country, mortgage insurance can be very difficult to get.  If you can put 20% or more down, this won’t be your problem.  One mortgage insurance company recently notified some regions that they wouldn’t do business in many states and individual zip codes.

The largest two sources of money for condominium loans are Fannie Mae (FNMA) and Freddie Mac (FHLMC);  Both have made sweeping changes to underwriting.  They have become much more critical of the homeowner associations, the properties they make loans on and, of course, the buyers.  One change is they want the Owner Occupancy Rate to exceed 75% home owners.  That means if more than 25% of the units in the project are rented, financing may not be available.

FHA is very popular financing in Alaska.  The down-payments are under 5% and they are more flexible on buyer debt ratios.  Condominiums have had to be built under FHA inspections and to their specifications, or in some cases individual units could become “spot” approved.  FHA announced recently they are pulling all approvals from existing projects on October 1, 2009.  Each project will have to resubmit for FHA approval. Unfortunately, the location that will approve the new submissions believes that with the new work-load, they anticipate as much as an 18 month backlog for approvals.

Unfortunately, restricting financing will only increase the problem buyers and sellers have.  If financing isn’t available, prices will have to come down.  If sellers can’t sell they may try to rent, which decreases the owner occupancy rate in the building, which further affects the ability to sell.  Worst case, more sellers will choose to walk away from their condo when they can’t sell either because buyers can’t get financing or they can’t lower their price to the market.

August 18, 2009

Retiring Your Mortgage

When you look at your bank statement at the end of each month, does it seem like 90% of your payment goes to interest?  Well, for the first five years of the loan, it does.  Only about 10% of your payment actually goes to reducing

Dramatically reduce the interest you pay!

Dramatically reduce the interest you pay!

the loan amount during those early years.

It’s good news that you still can deduct the interest that you pay on the loan on your taxes.  Still, you can accelerate the pay off of your property substantially by either sending an extra hundred dollars in with your monthly payment, or just make an extra payment each year. 

You can decrease a 30 year mortgage to approximately 21 years, simply by making one extra payment each year!  You’ll save thousands of dollars in the interest you pay on the loan.

Try it, you’ll see your personal net worth start to increase steadily.  Some people even think it’s fun watching their loan balance decrease each month!

August 14, 2009

Newspaper Classified Advertising

I am one of those people who really likes to spend a slow morning over the newspaper, cup of coffee in hand.  It’s entertaining to me to see who’s advertising what and how much things cost.  However, the number of folks who like to mill over the paper, like me, are dwindling!  Have you noticed how newspapers have shrunk in size dramatically over the past few years?  Newspaper readership is in a decline and print advertising has fallen like a rock!  The slower real estate market is undoubtedly partly to blame for less dollars going to advertising, but client habits are shifting.

According to reports I’ve read, total newspaper advertising fell last year 9.4%, but real estate specific advertising fell

The "old-fashioned" way to find real estate

The "old-fashioned" way to find real estate

22.6%!  It seems the real estate audience is no longer reading newspapers and have shited their attention to the Internet, which is now the primary research tool for real estate research.  The National Association of Realtors (NAR) says when buyers were asked “How did you search for your home?”,  84% of respondents used the Internet to some degree to view property and learn neighborhoods and pricing before they actually bought.

We have entered into the age where consumers are bombarded with information from all directions; fast moving movies, television, YouTube video and sounds bites have given today’s consumers very short attention spans.  If someone wants a specific type of property in a specific area, they don’t want to spill through the newspaper hunting for something that sounds interesting, only to find out the property has the wrong location.  Unlike the “baby boomer” generation, Gen “X” or the newer Millennial Generation much prefer to have a search engine narrow property prospects.

Unfortunately for the print media, this trend will only perpetuate as the older generation passes on.

August 10, 2009

Time Running short for $8,000 tax credit!

It’s formally called the American Recovery and Reinvestment Act of 2009;  you an I know it as the $8,000 first-time home-buyer tax credit.  It is designed to get first time home-buyers off the fence and make a decision to purchase a home.

The Tax Credit is *Real Money*!

The Tax Credit is *Real Money*!

Time is running out!  You only have until December 1 of this year to take advantage of the sweetest deal-ever- for first-time homebuyers. 

I hear some confusion on the details of the program; Here is my understanding of the details in a nutshell:

The program is for first-time home buyers only;

It’s not a loan;  it doesn’t have to be repaid;

It’s equal to 10 percent of the purchase price of the house-up to $8,000;

Income affects how much of the tax credit you quality for;

and it’s only available for houses purchased through Dec 1;

First Time Buyers;  A first time home-buyer is a person who has not owned a primary residence in the past 3 years.  In the case of married couples, if one spouse has owned a primary residence within the three years it disqualifies the other from the credit.

The $8,000 tax credit has to be claimed on an individuals income tax return, but this is called a “refundable” credit, meaning it translates into real dollars that the IRS will either accept as payment for taxes owed or refund to you in real dollars if the IRS owes you.  In other words, every dollar of this tax credit reduces income taxes by a dollar.  For example:

If, after figuring out your income taxes, you owe Uncle Sam nothing, the IRS will cut you a check for $8,000.

If you owe $8,000 in Federal taxes, you will break even after receiving your credit.

If you owe $10,000 in Federal taxes, you cut the IRS a check for $2,000 after the credit.

There is one rule;  You have to maintain the house as your primary residence for three full years as your primary residence for three full years.  If you sell, move or leave within the first three years for any reason you may have to pay a prorated amount back.

To be eligible for the full amount, the income limit for single taxpayers, or head of household,  is $75,000.  It is $150,000 for for those married, filing jointly.

How to Beat the Clock.  You have to close and transfer the title from the seller to the buyer on or before Dec. 1.  A closing on Dec 2 is a day too late.

Inspiring Verse to Share

I just finished reading a book unlike any I’ve read before.  It was recommended to me by another real estate agent, but wasn’t specifically about real estate, but had a lot cool antidotes and the authors personal musings in it.  It is called “Magical Worlds of the Wizard of Ads” by Ray Bard. 

The book is chock-full of inspiring short stories.  In some

Alaska berries after a rain shower

Alaska berries after a rain shower

ways, many of the chapters reminded me of the old Paul Harvey radio show where a interesting story is told and at the end of the radio segment, Paul Harvey tells who who the person was. 

Many times you had no idea that person did the thing the story was about.  Anyway, read this slowly:

That man is a success who has lived well,

Laughed often and loved much;

Who has gained the respect of intelligent men and the love of children;

Who has filled his niche and accomplished his task;

Who leaves the world better than he found it,

Whether by a perfect poem or a rescued soul;

Who never lacked appreciation of the earth’s beauty or failed to express it;

Who looked for the best in others and gave the best he had.

Robert Louis Stevenson (author of Treasure Island)

This has little to do with real estate ;-)     But a lot to do with living a better quality life for all of us!

August 6, 2009

An Experts Choice of Service Providers

A benefit of  working with your real estate professional that is easy to overlooked is that an active real estate agent  frequently run into homes with certain home-related problems; and a big part of the job is solving those problems.  That’s why you want to work with someone who has “been there – done that” when it comes to buying or selling real estate.

Need a contractor?  Try a referral from your Real Estate agent!

Need a contractor? Try a referral from your Real Estate agent!

As agents, we’ve probably seen electrical problems and solved them, same with window problems, roof problems and plumbing issues.  Oh yeah, we get homes painted and carpet cleaned and replaced when it’s needed! 

So when you are buying or selling a home, remember experience counts in many avenues.  Your agent probably is well connected with names of handymen and contractors who can get your job done right!

August 4, 2009

Real Estate Transactions Require Trust

Any transaction between two parties requires a certain amount of trust between parties.  One thing I have learned over my 20-some years as real estate agent is that if a buyer or seller decide they want out of a transaction, there isn’t a lot that can be done by the other party, or the agents, regardless what the contract says.

For the most part, if a buyer makes an offer and puts up a “earnest money” deposit, you have to assume they are serious about buying.  In fact, this money is put in a trust account out of the control of the buyer.  There are at least a dozen pages in the offer they have to sign and, presumably, agree to in writing.  There are points along the transaction where the buyer can get their money back, such as failure to negotiate certain repairs, or seeing future disclosures, such as the survey, title report or things of this nature.  If a buyer backs out of a transaction, he can certainly lose his earnest money unless there is a clear reason to the contrary.

If a seller decides they don’t want to continue with the transaction, short of legal action, there doesn’t seem to be much recourse.  It is rare, but I have seen sellers quit right in the middle of a transaction after they have signed the purchase agreement and accepted the offer.  Buyers always feel snubbed and they should!

Purchase agreement and earnest money check

Purchase agreement and earnest money check

There is a law called “specific performance” which means that one party has indicated they don’t want to keep up their side of the written agreement, but it would take attorneys, money and much duress if parties went that way.  If the buyer backs out, the law is clear that all the seller can get is the earnest money, but when I seller backs out of the agreement after they have signed the transaction, what would be fair?

When I see this happen, I am reminded that no matter how iron-clad the agreement appears to be written, at the end of the day, a transaction between parties requires trust in other people to do what they say they will do.

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