Homes for Sale in Anchorage Alaska: What Can You Afford?
by Dan Wolf
on Friday, September 11th, 2015 at 11:36am.
What you like and what you can afford in terms of homes for sale in Anchorage Alaska are often to different things. Fortunately, a good Anchorage Realtor can help you find the hidden gem of a home that is within your budget. Shopping for homes during warmer weather is exhilarating, especially for those relocating to Alaska and anticipating the outdoor adventures, beautiful nature scenery and interactions with wildlife and friendly people. More people tend to list their homes during the warmer months, which could likely give you more room to negotiate. Also, low-interest rates translate into being able to afford “more house.” According to a piece by credit.com, it’s best to spend only 30 percent of your income on a mortgage. Some experts suggest not spending more than 36 percent of your income toward any debt at all including credit card debt and car loans. Check with your lender to see how much money you can borrow, but keep in mind other factors.
The closing costs
Closing costs are typically 2 to 5 percent of the home’s value. Some lenders will let you roll the closing costs into the mortgage. Your Anchorage Realtor can use closing costs as a negotiation point, seeing whether the buyer will pay for all or at least half of closing costs. Your closing costs include the appraisal fees, title searches and fees as well as the initial money for property insurance and taxes placed in escrow.
The property taxes
When buying a new construction home, it’s more difficult to judge how much you’ll have to pay for property taxes because the home hasn’t yet been appraised. Property changes tend to fluctuate from year to year so it’s important to put aside money in an emergency fund to cover any unexpected increases. Your Realtor can research the history of property taxes for your favorite homes for sale in Anchorage Alaska.
The cost of living
Cost of living expenses in Anchorage are no different from any other part of the country. You can save money on gasoline and transportation costs by choosing a shorter commute to work, school or social events. Depending if you are relocating from a small inexpensive town or a big city such as New York, your cost of living expenses could go up or down. In general, it’s good to have a home improvement and repair fund set aside for home maintenance costs.
Other affordability factors when buying an Anchorage home are not as obvious. An appraiser will let you know if a particular home is in good condition or will need costly repairs in the future. Ask your Realtor whether you’ll have to pay home owner association fees or any special taxes. Look into home owner’s insurance as well.
At Wolf Real Estate, we want our clients to find their dream homes on a realistic budget. Our goal is to match you with a home in a great neighborhood where you can raise a family, retire or start a new chapter of life. For more information on Anchorage homes for sale, please contact us at 907-248-9653 or visit us online at www.anchoragehomesearch.com.