WolfTeam News

November 29, 2009

Buyers Pre-Closing Final Walk-Through

When you first made the decision to buy your home, you looked at the house a couple of times.  Then you probably spent a couple hours in the home with the home inspector.  Finallly, your closing is tomorrow and you are all packed up and ready to move as soon as you close your loan.

At this point in the purchase real estate agents recommend buyers do a walk-through one more time just prior to closing.  This is commonly called the “final walk-through.”  This is the last opportunity to ensure that everything in the home is in working condition and the home was left in clean.  If the seller was making any repairs from your home inspection or at the request of the lender or appraiser, this is a good time to see that repair, if you haven’t seen it already.

I’ve heard stories of last day accidents that caused damage to the walls or floors when the seller was moving out, and I heard the occasional (rare) story about appliances being swapped out, such as, the original oven for an inferior oven.  This last walk-through would catch those things if the seller hadn’t informed you yet.

Cook Inlet Ice Flow

Winter Sunset on Turnagain Arm

At this walk-through each room should be examined from ceiling to floor for any new problems since you first inspected the property.  This is not your home inspection.  A formal inspection should have occurred in the first 10 days after your offer to purchase was agreed upon.  This is just a last look for a new problem or a move-out related problem.

Once you have closed and the seller has received his money, it can be difficult to go back to the seller to make any requests.  Outgoing sellers tend to lose motivation once the sale is concluded and money has changed hands.

Real Estate agents are valuable in cases where a problem is located in the final days of a transaction.  In most cases, everyone is still eager for the sale to proceed.  A problem at the end is generally an annoyance for the seller, but this is the perfect time to have the problem dealt with.

November 23, 2009

Perspectives in Real Estate

Is the glass half-full or half empty?  I hear several common themes regarding real estate when I am visiting with people who are considering buying real estate or visiting with someone who wants to sell a property, .  I’ll share a couple of the thoughts I commonly hear and you’ll see where I am coming from:

Buyer beliefs:

Property values will continue to decline.

It is a good time to buy, but we have lots of time.  There will be more properties on the market next year.

Buyers can offer anything they want because sellers will accept anything in order to sell.

It’s nearly impossible to get a mortgage.

Contrast the above buyer thoughts with these Seller Beliefs or common expectations:

A Bull Moose eating Ornamental Trees in Mid-Town

A Bull Moose eating Ornamental Trees in Mid-Town

My property is better than the others on the street and other properties with similar “specs” as mine.

My property will sell fast but  I’m not going to give it away.  I need to get this amount of money out of this house.  Buyers just need to understand why I didn’t paint or carpet.

My house will sell “as-is”.  Those code things were that way when we bought the property and we haven’ t had a problem with it.

You should price high so you have room left to negotiate. 

I think part of the reason buyers and sellers get these ideas in their head is because the major media is working overtime to provide interesting headlines that will sell newspapers or keep you reading or listening to their story.  Look at these recent headlines:  “U.S. Home Prices Fall Again!”, “Home Sales Sink 8%“  “Mortgage Meltdown” and ”Hard Times Costing Many People Their Homes.“  The story is written to a national audience, but read in a very local market.

An advantage with working with an active real estate professional for the objectivity and prospective they can bring to the situation.  For instance, a buyer might hear a story of someone who made an outrageous offer, say $100,000 under the  asking price, and the seller accepted the offer, so buyer think that is the norm.  What they might fail to hear is that the house was a million dollars and they offered $100,000 less, so 10 percent less.  Also, the house had been on the market for two years.  The buyer is prequalified to $400,000, so his reality is going to be different at various market price points. 

 A professional can show the buyer how the market at $400,000 differs from the $1,000,000 home market in terms of amount of inventory competing for a buyer, average market time and average sales prices.

The same thing happens to sellers.  They hear a story from a relative or someone at work about someone who casually ran an ad in Craigslist or in the newspaper and sold their property to the first person who called on it.  Of course, that might set an expectation for someone else who wanted to sell.  It’s not impossible, but it is certainly not probable and there is undoubtedly more to the story.

Buyers and sellers who are well informed and working with an objective real estate professional can save themselves much anxiety and have a much faster learning curve and better overall experiance.

November 18, 2009

Reason’s to List and Sell Property Over Holidays

I’ve heard sellers list reasons why not to list their property and deal with a sale over the holiday period;  Sellers wonder if it’s worth their time when it’s cold, the days short and dark and there is snow to shovel!  Is is worth it?  Absolutely!

Here are the best reasons TO LIST your property during the holiday period.

1.  Other sellers decided not to mess with it, so there is less property inventory available in the market, meaning less competition for you! 

Winter in Anchorage

Winter in Anchorage

2. The buyers looking at this time of year tend to be more serious than some lookers you get in summer months.  If a buyer is looking now, they probably have a good reason to buy now.

3. Interest rates are usually even more attractive in the winter months, due to lower demand on money at this time of year.

4. Your home is already clean and decorated for the holidays- what a perfect time to show it while it’s decorated in the holiday spirit which makes the house look more homey and cozy.

5. Houses become Homes during the holidays.  Christmas baking smells bring back fond childhood memories and make your home even more appealing.

6. Even if you don’t want to move over the holidays, you can negotiate the actual move out.  You can also restrict showings on the six or seven days immediately during the holiday.

7. Many professional job transfers are effective in January.  These buyers cannot wait until spring to buy.  If you aren’t on the market, your home won’t be a consideration.

8. Some buyers have to purchase by the end of the calendar year.

Don’t let the Holidays slow your plans.  Life continues forward!

November 15, 2009

Weekend Warriors

Filed under: Just for fun,Life in Anchorage — Tags: , , , — Dan @ 4:34 pm

This post has nothing to do with real estate.  I’m sharing about a hobby that I enjoy.  I shoot skeet on a team.  If you don’t know about skeet, it’s a fun sport that involves teams of 5 people, shotguns and 6″ clay discs.  There are several

Skeet shooter acquiring his target

Skeet shooter acquiring his target

variations of the sport such as trap and sporting clays and more.  Skeet is a sport that isn’t very expensive to get involved with and you are likely to see all ages of participants.  There are good shooters that are 15 years old and many senior shooters that are in their late 60′s and 70′s.  There are some very good woman shooters and teams.  

In skeet, there are two “houses” that contain a machine that throws the clay pigeons very fast from the house.  The range consists of an arc where you shoot about 40 feet to the path of the clay targets.  One side has a building that contains the mechanism that throws the skeet, called the “high house”, and on the other side of the field is another structure, called the “low house.”  There are eight fixed stations that each shooter shoots both a high house and a low house target which is flying on an arc at about 6o miles any hour.

Most people use a 12 gauge shotgun, but some shooters shot 20 gauge or even smaller shotguns such as a 410.  The smaller the gauge, the better the shooter needs to be.  Each round is one box of shells which is 25 shots.  You shoot two rounds for a total of 50 shots and each shot counts toward your score.   You keep both individual score and team scores.

You would think that you shouldn’t be able to miss given it’s a 12 gauge shotgun, right?  The sport actually is challenging and requires much more skill than you would think.  First, the clay “birds” are fast!  Most of the time, you don’t shoot directly at the clay, you “lead” the target.  If you shoot directly at it, by the time your shot-stream gets there, the bird is past the shot.  Each station has a little different “lead” that you need to shoot ahead of the target if you want to hit it.  For the most part, all you need is have a consistent proper stance, some consentration and good control and swing with your shotgun.

Shotgun shells ejecting from the gun

Shotgun shells ejecting from the gun

The other thing is that since you are outside, you have to deal with the weather.  Wind and snow make the skeet’s move slower or faster or fly erratically, adding to the challenge to the shooter.

There are a hand-full of locations where shooters can practise or teams can shoot against themselves and other teams.  The spots I am aware of are the Birchwood Range (formal Issac Walton), the Rabbit Creek Range and the Fort Richardson Skeet and Trap Range.

In Anchorage there are two seasons, fall league which runs from September through December and has 14 weeks of competition and what is called the “spring” league.  Spring League is a real misnomer, because it is the coldest time of the year.  If you are on a team you shoot the same hour of the same day every week.  There are days in Anchorage where it’s perfectly calm and clear and 20 below zero!  You don’t spend a lot of time visiting when it’s that cold!

November 12, 2009

What is a No Cost Loan Refinance?

No cost refinance loans are advertised as “no fee refinances” and “no cost” mortgage refinances; all these names refer to the same thing – a mortgage refinance that has minimal closing costs. To close a traditional refinance mortgage,

Evening in Down-town Anchorage

Evening in Down-town Anchorage

you’d have to pay for things like title insurance, flood certification fees, recording fees, and attorney document fees.  You may or may not need a new appraisal which can cost between $600 and $750 in Alaska.

On a loan refinance, the closing costs and settlement costs can easily add up to more than two thousand dollars, depending on the size of the loan being refinanced.

On a no cost mortgage refinance, the lender foots the bill for these expenses without increasing your loan balance.  The reason the lender can make these type of loans is that they charge a slightly higher interest rate that will reimburse the lender for the upfront closing costs.  The higher rate averages a half percentage point, again depending on the amount of the loan.

There will be some costs, however, that the lender cannot cover. Typically, a no cost refinance lender won’t pay amounts associated with homeowners’ insurance, property taxes or monthly interest proration.  Prepaid interest arises when the old mortgage is paid off other than the last day of the new month; you’ll have to pay for the interest that will accrue since the last payment.

Most people refinance to decrease their monthly mortgage payment or to pay the loan off quicker.  For example, if you have a loan balance of $250,000 at 9% interest for 30 years, your monthly “P & I” or principal and interest payment would be about $1,835.  If rates fell to 5% interest, your choice would be to lower your payment by $500 per month with a new 30 year loan, or to shorten the loan term to 15 years to pay the loan off sooner and with a similar payment as you already have, or actually $1,757 in this example.

Basically, if the lender pays the closing costs, they may charge you 5.5% and you only have to pay for proration’s to interest, taxes and insurance to close the deal.

Some lenders may offer the option for the buyer to get the lower interest rate and add the costs back on top of the existing loan amount as an option for the buyer.

November 11, 2009

Winter Comes to Anchorage

Filed under: Alaska,Life in Anchorage — Tags: , , , , , — Dan @ 12:17 pm

Every year, like clockwork, snow begins to work its way down the mountains surrounding Anchorage.  One day usually around October 20th, it appears on the ground in the city.  More often than not, that snow melts, only to be replaced with another snow that doesn’t melt.

Fresh snow on Mt. Ash berries

Fresh snow on Mt. Ash berries

This year, we didn’t receive our first snow in the Anchorage bowl until November 9th.  This was particularly nice because it gave everyone extra time to prepare for the inevitable.  And kids were able to trick-or-treat without parkas and snow boots!

Along with the snow comes winter sports like cross-country skiing, downhill skiing, ice skating and snow machine riding.

November 9, 2009

Home-Buyer Tax Credit Extended – and Expanded!

The U.S. Senate unanimously passed an extension, and expansion, of the home-buyer tax credit and President Obama has signed it.

Moon-rise over Downtown Anchorage

Moon-rise over Downtown Anchorage

The new law will extend the $8,000 credit for first-time home buyers for contracts entered into by April 30, 2010 and closed by June 30, 2010.  

Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight years.

Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for married couples.

If you or anyone you know are looking to buy their first home while prices are good and interest rates are still good, the time may never be better! 

If you already own a home and have lived in it for at least five years, you may qualify for a $6,500 tax credit if you sell your existing home and buy a new one before May 1, 2010!

November 4, 2009

Do Real Estate Agents Earn Their Money?

I was on a listing appointment talking to a seller who had sold a few homes in his life.  The seller made an unusual comment during my presentation to the effect of  “all agents do to sell a home is to list the property in the MLS (Multiple Listing Service ).”  I was a bit taken back because I haven’t had someone actually say something like that out loud!

A dandelion just before the wind blows!

A dandelion just before the wind blows!

I spent the next hour detailing what we do to find a buyer and get the sale closed.  The list goes something like this:

We do a detailed market study paying attention to active home competition, recent similar “pending” properties, as well as sales on the street and neighborhood.  How long do properties like the subject take to sell on the average?  What is the most likely financing?  On the average, how close is offered price to the list price?  We would make a non-emotional and objective recommendation to the seller as how to price his home.

We would make recommendations on both curb appeal and home staging or cleanliness items to get the properties “best-foot forward”.

We council our sellers on how to show their home to it’s best potential.

Of course, we immediately place the property in the Multiple Listing Service, but NOT before we are ready to show the home and have everything we need including professional quality photographs, virtual tours and all disclosures, surveys and other items so we immediatelyhit the ground running.  When the property hits the MLS “hot-sheet” as a new listing, we want any agents or buyers to have access to everything including photographs and virtual tours!

Modern technology makes it easy to make any seller documents, surveys and disclosures available immediately online.  Good real estate licensee’s put those online right away so any interested party can have fast access to them.

In our market it is customary to put a lock-box on the door, a sign in the yard and good quality color flyers on the sign as well as property “hand-outs” inside the home.

We email our client everything and ask if they feel we missed any selling point on their home, we make the seller an active participant in the marketing, if they want to be.

We begin to upload the property details to a multitude of real estate websites so that the property is really marketed nationally via the Internet, hopefully to the major real estate sites someone may be watching.

Our own websites such as www.AlaskanHome.com gives us plenty of room to showcase property details and photographs.

Nothing takes the place of quickly responding to both phone calls and email inquiries! The real estate market can be 24/7 and the Dan Wolf Team make every attempt to answer our phones and respond quickly to email. 

And the marketing is just the tip of the iceberg.  You won’t have a sale if you don’t negotiate effectively and “bullet-proof” your transactions!  An agent should be able to provide a “seller net sheet” on an offer to closely estimate what a buyer’s net will be at closing after the house is paid off and all bills are paid.

Your offers have to be properly documented.  I could write another entire post about making sure you are ready to close when the buyer and seller have agreed to close.  Don’t forget that title report, resale certificate or to order that appraisal!  If repairs come up on the home inspection, do you have contractors to make those repairs correctly, quickly and not charge too much.

I didn’t even mention all the emotions and personalities an agent can become involved with when selling homes for divorced people, stressed people, first time home buyers and myriad of other circumstances!

November 2, 2009

Reasons We Buy Real Estate

Our government knows how ownership is good for the economy and good for families.  There are several good reason’s why we like to own our homes.  Let’s see how many we can name here.

Appreciation.  The foundation of many wealthy people is based in real estate.  Over the long term, real estate goes

Sand Lake in South Anchorage

Sand Lake in South Anchorage

up in value.  A recent study conducted by the National Association of Realtors found the median equity of homeowners was $50,000.

Leverage.  We can control a property with relatively low amount of money down.  You can buy your primary residence with as little as 5% cash down!  You can buy a non-owner occupied property with 20 or 25% cash down.

Debt Reduction.  Every time you make a payment, you pay off a little bit of the principal and retire your debt and build your equity, unlike rent which only pays for the month you pay for.

Tax Advantages.  You can write off your interest on your loan and, in the case of an investment property, all the expenses of maintenance and repairs.

Income.  You can rent your home and tenants will make your payment!  If your loan paid off or paid low, and rents increase you can have positive cash flow, and all the while enjoy tax benefits of ownership!

Predictability.  The payment on a 30 year mortgage doesn’t change.  You may see increases in taxes and insurance.  The most stable way to live is with a long term mortgage.

Pride of Ownership.  It just feels good to be in your own home sitting on your own deck, tending your own barbecue grill – and as long as you don’t bother anyone else, no one can tell you what you can do with your home!  You make every decision yourself to paint if you want to paint, improve your property - or not.

What do you think?  Did I miss anything?

Copyright 2010 Dan Wolf, Realtor
All rights reserved.

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