Homes in Wasilla and almost everywhere else in the Matanuska-Susitna Borough did not receive building inspections until 1992 when the Alaska Housing Finance Corporation required them for financing. Since that date, most homes are inspected during construction. The city of Palmer required building inspections and permits previous to 1992.

During the real estate boom of the early 1980’s , Wasilla was one of the fastest growing cities in the country.  Builders were selling houses as fast as they could put them up. As a result, they tried to to find ways to build homes faster.  One bottle-neck in the process was the lack of concrete workers to put in the foundations. Contractors found a way around this  by building wood foundations.  About 1/3 of the homes built between 1980–1985 had wood foundations. 

These foundations generally have a concrete footer on the very bottom.  Almost any experienced construction worker can build a concrete footer, but a concrete block foundation wall requires special skills.  These wood foundations used treated wood so that it doesn’t rot.  I suppose it may eventually disintegrate but I have never witnessed this. 

It is completely legal to use this type of foundation and it can also be structurally sound as long as the work is done correctly.  However, most of the foundations erected during the early 1980s have since been modified to make them more structurally sound.  Hardly any new homes are built this way today and there is a reason for that.

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I work with several small builders that build just a few homes a year in the Wasilla and Palmer areas.  These builders take pride in their work and spend a lot of their own time, sweat, and even blood on these homes. 

Often, a buyer will ask who is the best home builder in the Mat-Su Valley.  They are expecting the answer to be one of the big builders in the area.  They are surprised to find that the best builders are people whose names they have never heard.  There are many small builders in the area.  In fact, last fall I counted over 138 different builders that had homes for sale in the Mat-Su Valley. 

I recently worked with three different builders who build one home at a time and do it all with cash.  They spend their own money without resorting to banks.  Because of that, they are not under a time crunch and can spend the time to get the trim right, and fix little things that would normally be covered up.  They can also pass savings on to the buyer because they did not have to pay for loan closing costs and interest rates.  However, some small builders are under-capitalized and hanging on by a thread.  Those are not the ones you want to choose to build your new home. 

When one builder asked where he should build his next home and what he should build, I told him that he should build a home under $300,000 or even preferably under $250,000 in an area not already saturated with new homes.  Most people want to buy in the core area, this is between Church Road and Palmer and south of the Little Susitna River. 

The map above, (click to enlarge), shows that most of the new homes under $250,000 are outside of the core area. All the little blue dots are new homes under $250,000.  One savvy local builder, Jess Hall, pretty much sticks to this core area.  He knows the three laws of real estate.  Many others build outside the core because they found less expensive land.  That will work as long as they pass that savings on, but often, it will take longer to sell the home. 

Interested in new construction?  Give me a call, 907 232–7900.  I can put you in touch with a builder you will really enjoy.  We work with all the big builders, and a whole bunch of smaller builders.

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This will be a regular feature on the Wasilla Real Estate News so check back every Tuesday. If you don’t check on Tuesday just click on the link to the right labeled “deals of the week.

These are all new listings within the past 14 days. Real deals usually don’t stay on the market very long. The screaming deals are usually gone within a few days.

I have not personally inspected all of these properties, but if I were in the market for a real estate deal, I would definitely check them out. It’s important to realize that some properties are deals because of the price per square foot, some because of the land, and some are deals because of their location. Every deal is a little different.

$39,000 Cabin on 0.68 acres listed with RE/MAX of Wasilla

$225,000 3,000 sq ft hanger on 2600 foot runway. RE/MAX of Wasilla

$232,900 1500 sq ft NEW ranch on 0.9 acre. quality home, Prudential Jack White Vista

$255,000 2000 sq ft 4 bed, 3 ba, 2 car, only 3 years old. RE/MAX of Wasilla

$155,000 3 bed, 1 ba, 1 car, only 4 years old on one acre, Prudential Jack White Vista

$229,900 3 bed, 2 ba, 1 car, views in Palmer area. IEC Realty

$195,000 3/2/2 in Palmer, only 5 years old. RE/MAX of Wasilla

$194,900 3/2 /2 in Wasilla, 7 years old. FORECLOSURE. RE/MAX of Wasilla

$145,000 Log Cabin on 5 acres in Wasilla, RE/MAX of Wasilla

Just drop me an email for more info.  Or you can call my cell at (907) 232–7900  

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I don?t know what this has to do with real estate, but it has a lot to do with Alaska.? It?s part of what makes the state and the people different.? The land, the people, and the events are taken to the extreme.? But you have to love it.

The Iron Dog Race started yesterday, take a look at the short video of the starting line?describing the GPS system allowing us to monitor every team.? How many states have a ?first dude? that? has won a race like this.? Governor Sarah?Palin started the racers, including her husband.?

I just checked Todd Palins place on the official website and his gps says they are doing their layover in Galena, on the Yukon River.?

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Monday Mornings Market Memo for the week of 2/05/07–2/12/07. 

The graph to the left is a thumbnail, click on it to enlarge. It has a one month delay to allow all the data to come in before displaying.  It is from the Alaska MLS System and has this disclaimer regarding the statistics. Note the sharp increase in inventory.

 “This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market. “

The graph below is for all the residential realestate on the Multiple Listing Service for the Matanuska Susitna Borough for just this past week.

There are currently 721 houses on the market, considerably more than last week.   We would expect the total amount of listings to grow and the pending sales to grow as well. There are 44 new listings compared to 41 last week. 

There were only 16 closed residential sales in the whole Mat-Su Valley.  This does not count lot sales.  Let’s think about that a little bit.  There are more than 400 real estate licensees in the Valley and more than 2000 in Anchorage.  Three of those closings were with Anchorage licensees so that only leaves 13 to split among the valley Realtors.  If all of the 13 were cooperative transactions, (and you can assume that isn’t true), then only 26 licensees had paydays last week  The reality is that only about 20 Realtors were paid last week  Wanna get your real estate license?

It appears that the days on the market (DOM) is growing in every category except closings.  Closed homes have shorter days on the market for two reasons  A few of those are pre sold homes so they were already sold before they were built, they closed as soon as they were finished.  They are the ones that were priced right and sold quickly. 

We pended 23 homes and closed 15. We actually pended a few less than the week before  However I have received offers on two of our listings last week and have good activity on two more, I expect them both to pend this week  So I still feel that the market is picking up, or perhaps it’s just picking up for us.

With absolutely no data to back me up, it seems that the market is accelerating into our normal spring rush.  See my Thursday post about the sun rising on real estate.

Check out the other articles in the “Monday Morning Market Memo” category to the right for comparisons.

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Have you dreamed of owning a piece of the real Alaska? I mean the kind of property where your nearest neighbours are moose and other wildlife, rather than smelly cars and trucks?

Have you dreamed of building your own log cabin from logs gathered from your own land?

?Here is your opportunity, for only $15,000.

About 20 miles due West of Willow and separated from civilisation by both the Susitna and the Yentna Rivers is this 4.7 acre parcel. It sits on a quiet unnamed lake about one mile West of the Yentna River. Zoom in and out from this goggle map to get your bearings.

This parcel map from the Matanuska-Susitna Borough helps to find the shape of the lot on the lake.? You can expand both the parcel map and the aerial photo by clicking on the image.

Access to this parcel is either by air to a lake about 1/4 mile away or by boat up the Yentna and then up a little side stream off the Yentna.? You will need to hike a little both ways.

Needless to say, this parcel is off the grid.

Feel free to call for more info on this property. 907.232.7900

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Photo Courtesy of VPA

Valley Performing Arts, in Wasilla, continues to amaze the citizens of the Mat-Su Valley with its recent production of Beauty and the Beast. I heard about it through my music teacher at the beginning of the 2006 school year. Sadly, I couldn’t audition because of its running time: six weeks of performances.

The cast is made up of people from all parts of the Valley; many have to drive 45 minutes just to get to the theater. Beauty is played by Laura Arnold, a local voice and piano teacher. Her husband, Andy, plays opposite her as the Beast. These two are an amazing duo; Belle’s beauty combines with Beast’s ferocious looks to give the audience a thrilling night. The other characters have a range of ages, the youngest at six years old, the oldest at 62. Several cast members, returning actors and those brand new to the stage, doubled as townspeople and enchanted objects. Simple bakers and tavern-goers morphed into napkins, plates, spoons and even an oven mitt.

While the acting was good, the music was better.  Jennifer Dalby, a retired music teacher, was the music director of the production. The night was filled with beautiful harmony, marvelous solos and several full cast pieces. The costumes were similar to those in the Disney movie. Belle had a beautiful blue dress, and a lovely golden ball gown, Cogsworth, the talking clock, had a framed pendulum attached to his chest and Lumiere, the candlestick, was required to keep his arms in bent up L-shaped positions while holding lit candles the entire show. People from opposite ends of the Valley got together to design and sew these costumes, some on Lazy Mountain and others on the far end of Wasilla.

Though the Broadway-style musical was excellent, it’s not the only play/musical that VPA has performed impressively. Past performances include: Man of La Mancha, Gypsy, Annie, Fiddler on the Roof, The Sound of Music, and You’re a Good Man, Charlie Brown. Into its 31st season, VPA has spellbound audiences since 1976.

Plays in the Valley are very popular, family events; Beauty and the Beast was almost entirely sold out two weeks before the performances started. People enjoy them and they are good for dates, family nights or just to get out.

Tamara Van Diest, (17), is a student at Palmer High School.

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I am often asked about police protection in the area by new residents in the Mat-Su Valley.  They are wondering how often their neighborhood is patrolled.  Many people are used to larger cities with a large police department.

Some of the cities in area do have their own police force.  But these cities are small compared to the total size of the borough.  Look at the city limits of Palmer, Wasilla, and Houston.  Palmer and Wasilla both have a police force. Houston is the largest city in size with 24 square miles…it has one policeman.  The borough is about 24,000 square miles and it does not have a police force. 

The only police force in the rest of the borough is the Alaska State Troopers.  The “B” Detachment of the Alaska StateTroopers has a force of 48 commissioned troopers that actually cover an area much larger than the borough.  According to retired trooper Rick Roberts the detachment covers an area of more than 55,000 square miles which is more than twice the size of the borough.

The amazing thing about this is that much of the area cannot be reached by a patrol car.  So these troopers also have to access areas by snow mobile, four wheelers, boats, and helicopters.  In addition, people expect them to come running every time a car drives a little fast down their subdivision street.

What I generally tell people who wonder about this is that you need to look out for yourself in this area.  The troopers have a good page called residential target hardening.  I would add that a locked door doesn’t necessarily keep out a determined burglar.  How hard is it to kick in a door or break a window if a thief thinks you aren’t home?  A locked door with a big dog barking inside will stop a lot more burglars.  That is the main reason I have a dog at my house. 

Don’t get one of these dogs for home defense, (I mean the pug, not the wolf),…they’re cute but really can’t fend for themselves, let alone defend your home. You want one with a deep bark. 

Some outside lighting goes a long way to keep thieves away during the many hours of winter darkness.  Getting to know your neighbors and agreeing to watch one another’s homes is likely on of the best options you can have.  Of course, you have a right to responsibly arm yourself for self-defense.  But all the guns in the world won’t keep your home from being robbed when you aren’t there.  In fact guns are a favorite target of burglars.

After all that, I have never had a problem with crime in area.  I don’t go overboard in personal protection.  There is someone home most days so we don’t have to worry much about it. 

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I did some research last August to see how many unsold new homes were on the market. At that time there were 254 new homes in the Mat-Su area that at least had a foundation in the ground and were waiting for a buyer.

That was a lot of homes. Just a year before it was very difficult to find a new home for a buyer. They always had to wait for one to be built. It was obvious that the builders had gotten a little ahead of the buyers.

Just yesterday I attended a closing on a new home built by Ron Kuzina. What a fantastic home! The price was $242,000 for a 1,550 square foot ranch on a 1 1/2 acre lot and it had upgrades and quality galore. To find this home, the buyers and I looked at between 25-30, (I lost track), brand new homes in this price range. These homes were all finished or close to finished and most of them were one story ranches. That really drove home the point that there were a lot of new homes on the market. It also really drove home the value of the one the buyers chose. It was obvious when we walked in. That’s the house still under construction in the upper left…click on it to expand.

So, what’s it like today? As of today there are 154 new homes on the market. We have bitten off a 100 home chunk. That’s better, and going into spring I expect we will erase most of the remaining unsold inventory. But it does point out a quandary for builders and home sellers alike. You have to compete with those unsold homes already on the market. I’ve looked at a lot of them and there are some real nice homes for real nice prices on the market.

If a builder does not currently have a model he is competing with all the unsold brand new homes already on the market with “pie in the sky”.  It’s still possible to sell that way, but much more difficult.  Buyers have a hard enough time looking past the bare studs of an unfinished home, let alone one that is only builder’s mind.  It’s really hard to sell a home with only photos and plans.

And home sellers also have to compete with those new homes.  Even though buyers realize they will have to plant a lawn, pave the driveway etc., the allure of a new home is tough competition.  Existing homes need to be priced significantly under the new home market in order to complete. 

Drop me a line for more info.

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I drove by a little yellow house off of Lucile Street in Wasilla today.  I took a good look as I went by.  Kids toys were outside in the fenced yard.  The driveway was plowed, the owners were obviously living there.  It made my day!  I thought back to last winter when that family first contacted us.

They were being evicted from their rental in Palmer because they had taken in a friends dog while he was on vacation. Pets violated the lease and of course, the landlord stopped by while the dog was outside doing it’s business.   It was the middle of winter and they had 55 days to get out of the home.  This was a good sized family, Dad and Mom and four kids.  They did not have a huge income but qualified for a VA loan.  They had always rented but were pretty disgusted at the lack of freedom.

They called us and asked if there was any way we could help them find a home.  We told them that it would be a real challenge but we would give it our best shot. Here was the situation.

• Qualify for $170,000
• Almost no cash in the bank
• Needed housing within 55 days and 45 days was a normal escrow period
• We needed to find a seller willing to do a “triple 0 down VA loan”
• It was the middle of winter

Jay and I both began looking in earnest for something that would work.  After about a week of searching we located a newer ranch style home that was vacant.  Vacant in Alaska in the winter means…MOTIVATED SELLER.   After viewing the home and deciding it would work we went back to the office to write the offer.  I knew we were going to have to ask the seller to pay all the closing costs but wasn’t prepared for the buyers answer when I asked how much earnest money he was prepared to deposit.  He asked if we could just do it without earnest money because he had almost no money at the time.  After some discussion he decided he could come up with $100.

I had never written an offer on a house with only $100 earnest money.  That just doesn’t give the seller a lot of confidence in the buyers desire and ability to buy.  It’s called “earnest money” for a reason.  It means this is an earnest offer.  But we really didn’t have much of a choice so we went for it. 

After presenting to offer to the seller’s representative, and explaining the details of the buyers situation, he decided that the buyers were earnest even if they only had $100, and he presented it to the seller that way.  The rest of the deal was relatively smooth and we moved the buyers in a day before their eviction.  After the recording of the transaction…they got their $100 back.

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