Mat Su Real Estate

Want to Buy a Foreclosure?

2010-10-08T12:48:00.000-07:00

How do you know if a Foreclosure the right property for you? There are things you need to know before you start looking at the lists of available properties. Bank Owned Properties or REO's may be a bargain, but you will need some cash, and patience to be successful in getting your big "deal".

You may be asked to qualify with the lending institution who owns the property, even if you have your own mortgage company. Do not be offended, it is not personal, this is just one of the things that may not make sense, but is required to play the game. The required earest money deposit is also set by the the bank. In some cases it can be 2-3% of the purchase price.

When a bank owns property, they do several things to minimize their costs. They "Winterize". This means draining the plumbing so that there is no need to heat. In some cases the power is turned off. When going to view a foreclosed property you may be asked to sign a release. Ask if there is a reason for this. Sometimes it is a standard form, for liability reasons, in some properties there is a known problem that you will need to look out for. In any case you should always prepare for surprises; bring gloves, a flashlight, dress warmly, and wear sturdy flat shoes. Be prepared to take your time going through the property.

The bank will list the property for sale "As-is". This is exactly what it looks like. You need to know what you are getting into before you agree to purchase the property. If the property needs repairs, you will be the one doing them in most cases. There are some exceptions to this, but those exceptions are rare. I always suggest getting a home inspection done, by a professional. There may problems that you cannot see during a brief walk through. A good inspector will not only allow you to attend his inspection, but encourage you to ask questions. The cost is minimal when you consider the size of your investment into the property.

Closing costs are going to be paid mostly or wholly by you. You need to know that the banks have their own rules about what they will pay for. The normal split of costs between buyers and sellers will probably not apply here. Ask what you will be expected to pay for up front. Have you real estate professional or mortgage professional work up a cost estimate for you before you sign up to buy. What the bank will or will not pay for and the condition of the property can and will affect what type of loan that you can get on the property. Make sure the loan program you want to use will allow you to work with a foreclosure property.

If you have questions, shoot me an email, or give me a call.

FYI: Alaska's Foreclosure rate is much lower than most other parts of the country, but things are starting to slip a little. Nationwide the foreclosure rate was up 4% in August. Realty Trac says the hot spot for foreclosures in Alaska is in the Mat Su., with 1 in every 273 homes now in or facing foreclosure.

Hot Summer Market

2010-06-14T18:01:00.001-07:00

It may be just a Summer phenomena, but the Alaska real estate market has taken a turn for the better. Indications that things are improving:

the number of listings is up
the average asking price is up
average days on the market is down
difference between asking price and selling price is less this year than it was last

These are good signs for both sellers and for buyers. For the buyers life is very good. Lots of inventory to choose from and yet still great interest rates. For sellers, more value for their home, plus a shorter marketing time.

Summer in Alaska has traditionally been the time to market a home, and indications are that this year the market is better than it has been for years.

Keeping up with Change

2010-06-06T10:49:00.000-07:00

Continuing Education is important to success in any business, and in the current real estate market it is critical. Both Debbie, and Suellen attended a class on Lease Purchase, and Options in May. Suellen recently completed the National Association of Realtors ePro® designation course.

The internet has drastically changed the business of real estate in the past few years. The ePro® course teaches effective use the resources that are currently available to better serve our clients as they purchase or sell a home.For information on what the ePro® designation means to you, click here.

Summer Time ... and the Living is Busy!

2010-05-17T18:07:00.000-07:00

Summer is just around the corner and, the leaves are finally turning green. It was a little frosty this morning so be careful putting out your annuals. It is never really safe until after Memorial Day.

After the Summer flowers are planted, it is time for the annual migration of all of those families moving "before school starts" to begin. Now is the time to start looking. Time flies when you are trying to get a home purchased, and if you plan to be in before Labor Day, think of buying before the end of June.
Interest rates are still very good.

To make your purchase go smoothly, talk to a mortgage company about pre-qualifying for a mortgage loan. It will help you, and your real estate professional to narrow down your options for financing, and the make sure that the properties that you visit will work for the financing options that work for you.

New Rules for Short Sales-HAFA

2010-04-12T14:26:00.000-07:00

Anyone who has tried to do a real estate "short sale" in the past year knows that the process can be long, uncertain, and frustrating.
The Federal government has come up with new rules to help expidate the process. The HAFA(Home Affordable Foreclosure Alternatives Program) went into effect on April 5, 2010. For those who are not being helped by the loan modifications of HAMP, this offers additional options that might work.
For more information got to

Home Buyers Seminar

2010-02-26T13:05:00.000-08:00

There is such a thing as a free lunch!

Home Buyers Seminar
Saturday March 13, 2010 from 10:00 am to 4:00 pm.

Find out what you need to know before you buy a new home. The real estate market has changed in the past 2 years, and so have most of the rules for purchasing and financing property. Whether you are buying your first home or just changing locations, you need this information.

Bring your questions! There will be over a dozen experts on hand to give the information that you need on the following subjects:

Mortgage Loans & Prequalifying
Direct loans
Taxes and Home Buyer Credit
New Construction
Energy Efficient Homes
Home Values
Title Insurance
Cabins & Land
Condominiums
Homeowners Insurance
Investments
Home Warranty
Home Inspections
Water Tests and Quality
Septic Systems & Wells

Lunch is free! There will be door prizes for everyone, and Additional Gifts for the first 50 who sign up.

Seating is limited, so register today! Call 631-5100.

Seminar is being provided by and will be held at:

Dynamic Properties
892 E USA Cir, Suite 100
Wasilla, AK 99654

New Website for Home Owners

2009-11-19T12:26:00.000-08:00

The National Association of Realtors has come up with a new website fro homeowners. Designed to be a one stop shop for answers to all of the many question that come with home ownershop.

The site is still in Beta testing, but it is open for business. Check it out, they are looking for consumers to test out the site and give them feedback.

http://www.houselogic.com/

Let me know what you think.

Mixed Blessings

2009-07-29T11:14:00.000-07:00

The news is mixed in real estate. Sales are up, but prices are down. First Time home buyers are settling in and move-down buyers are taking advantage of the bargains. Alaska Markets rarely follow outside trends, but in this case they are following on a slower track. Prices have not dropped as much in Alaska as they have outside, but they are down.

The Alaska real estate market is still correcting itself. The number of homes sold since the beginning of the year is down 17% from last year at this time. There are still many distressed properties on the market, complicating things even further. If you want more specific information, please contact me.

The 7th Inning Stretch

2009-07-05T10:19:00.001-07:00

Historically the real estate market drops off in midsummer as buyers settle in for the school year. Due to uncertain economic conditions , the selling season started a little later this year. Interest rates are still lower than in the past few years, and it is still a good time to buy.

Homes in the Lower price ranges are still getting the most movement. According to the Alaska MLS website statistics, of homes that do sell, the "average price change"(read price drop) has been decreasing for the past few months. Buyers are still looking for those price reductions though and many who are looking to "down-size" or get a second home are making their move now while conditions are favorable.

It is also a great time to look for land for your cabin or retirement home. You can see what the ground really looks like, and get a good idea of what is under all of that snow we see so much of the year. It is much easier to find those property markers this time of year.

Summer Activity has Arrived

2009-06-25T15:05:00.001-07:00

June 22, 09
June has been a very active month for real estate in the Mt Su Valley. The news that the Alaskan economy is still in relatively good shape has encouraged individuals and business to invest in our area. May and June are historically active months as families want to get moved before the school year starts.

In June, according to the Anchorage Daily News, (June 19th, 2009) Alaska posted “a year over year employment loss for the first time since the recession in the early 80’s”. While this is certainly not good news, it seems we still have it better than most other states. Even MSN.com say that “healthiest states include Alaska…”

The activity that we have been seeing in our office has been in lower price ranges as buyers are uncertain about big payments and the numbers of first time home buyers are feeding this entry level market. There is also great interest in anything which has the owner finance option available.

If you have questions about what this means to your property or situation, please contact me.

First Time Home BuyersTax Credit

2009-05-11T14:53:00.000-07:00

By now I am sure you have heard of the tax credit for “First Time Home Buyers”. There is a great deal of information out there, some of which is even correct. Information is everywhere in advertising and the news, and all over the Internet and in email. But what exactly does it mean? Do you qualify?

First of all you may not have owned a home in 3 years. Then, the property has to be the house you will live in, or in other words “owner occupied” or your “primary residence”. One very good reference put out by the National Association of Realtors, it can be found at http://www.realtor.org/wps/wcm/connect/f6ee3f004d2465a491f6f526a9949436/government_affairs_homeb_tax_credit_new.pdf?MOD=AJPERES.

If you are thinking that is pretty easy… well you are right. To be sure about your qualifications, talk to your mortgage banker and your tax professional.

Spring for Good News

2009-04-15T10:56:00.000-07:00

Recent statistics from the Alaska Multiple Listing Service show several encouraging trends. The good news is that sales numbers are up since January and the inventory is starting to drop. The not so good news is that listings are up, which means home sellers face more competition. It is more important than ever to have your home spiffed up and properly priced in order to lure a buyer.

Spring is historically the time when Alaskans shop for new homes, so most of this information is not surprising. Still, it is hard not to be optimistic when so many other parts of the country are not experiencing similar good signs in the market.

Now is a good time to buy and a good time to build. Interest rates are still low and some builders still have openings for this building season. If you missed the Spring Homes Shows, you can find a builder through your local Home Builders Association.

If you are considering buying a home, don’t forget the first time home buyers $8000 tax credit. Check with your lender for details on financing programs, as the rules are still changing almost daily. It is important to understand how the financing process works, so make an appointment to find out what you should do and when. Some mistakes in timing can be costly so ask to be sure.
Seek advice from professionals and continue to ask questions until you have an answer that makes sense to you. Members of professional organizations such as the Home Builders Associations, Realtors Associations and Associations of Mortgage Professional work hard to maintain high standards of service to you, the consumer.

Good News in Real Estate

2009-03-27T13:19:00.001-07:00

The good news this week came in the form of statistics released by the National Association of Realtors stating that they have made corrections to previously released numbers from . It seems things in the housing market were never quite as bad as we were told.

Revisions will be done for the last 3 years worth of data and that should change the picture for the better. However, financial and business decisions were made based on those incorrect figures; the question is how much damage was caused by the mistake. The report of sliding home sales created a drop in confidence that made the statistics a self fulfilling prophecy for the real estate industry.

The numbers for January were dismal, with NAR reporting that 40% or more of the sales were distressed or repossessed properties with bargain hunters dragging the prices down over 15%. February figures may tell if we have reached the bottom, but we can only hope. With inventory still high, chances are that the road will remain rocky for some time.

Market Update

2009-03-05T12:22:00.000-08:00

The Alaska home sale statistics for February are out, and the trends are clear; average days on the market are up, inventory is up (currently there is 18 months of inventory in the MLS database) and home values are holding steady. Another thing that the statistics show is that the properties that are selling, are selling in about 55 days, which means that a properly priced property will sell quickly.
The good news is that the changes in activity, both listing and sales, from last year to this year are marginal. There are minor changes in all categories, but not the catastrophic drops that are being reported in the National news. The exception to that last statement is that average sales price of homes sold in the month of January dropped by $35,000. That could be a positive; if it is a result of the sale lower priced, or distressed properties are being purchased and cleared out of the inventory. Or, it could be a result of buyers shopping for lower price homes for financial reasons.
On that note, things have changed drastically in the home finance department. Prospective buyers should keep in close contact with their lenders. Financing policies and programs are changing daily. What you were qualified to buy last summer may be far out of reach in today’s financial market.

Springtime in Alaska

2009-03-02T13:24:00.001-08:00

After a long and quiet winter, everyone seems to be waking up with the sun. Activity in our real estate office has been picking up since mid February. We are seeing more inquiry calls and new listings. So if you are considering selling this spring, it is time to get serious.

For sellers, now is the time to get ready for the spring selling season. Although homes sell year round, historically in this area, there really is a seasonal spike in activity in the spring and early summer. Now is a good time to interview Realtors®, and find someone that will meet your needs. Make sure you are comfortable with the communication methods and style of the Realtor®. Selling a home can be a long process and you want to be working with someone that you are comfortable with and with whom you can communicate. Now is also the time to do small repairs and "touch ups". Small things like loose knobs or missing latches may not add to the value of your home, but those small things can affect how long it takes to sell. If there is a wild purple wall in your home, you may want to paint it a neutral color, so that the dislike of one particular feature is a road block for a prospective buyer.

For prospective buyers; the mortgage situation is still very fluid, with changes coming in weekly and in some cases daily. If you are considering purchasing property (or even refinancing) anytime in the next few months, be sure to develop a relationship with your mortgage broker. They will be on top of the changes and can keep you informed of changes that will affect you and your financing options. Credit ratings have always been important for purchasing a home, but now they are even more critical. Your credit rating will determine not only if you will get the loan but also what the interest rate will be and how much you will have to pay in closing costs.

Questions can be emailed to suellen@debbieerickson.com