Houses?have become an investment these days instead of a home.? Many years ago your house was home.? It wasn?t purchased primarily as an investment.

Today, most people still purchase their house because they want a home of their own.? However, because mortgage interest is tax deductible, and because newer mortgages have allowed people to buy more expensive homes for less money down, and because real estate?appreciation has out paced inflation, houses have become an investment as well as a home.

Before you begin your home shopping spend sometime talking to yourself. I know others will?wonder about your sanity but do it anyway.??

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I have two tickets to a hockey game between the NHL Alumni All-Stars and Mat-Su All-Stars.  This game is a fund raiser for the Mat-Su Boys and Girls Club.  It will be held April 7 at 7:30 PM at the Wasilla Sports Complex.  The tickets are good for one adult each or two children, 12 and under, each.

I’m going to give these tickets away free to the person who gives the most suggestions for the Wasilla Real Estate News.  These can be suggestions on topics you want to see discussed, changes in the design of the site, or what ever your creative minds can imagine. 

Remember, this is a website for real estate in the Mat-Su Valley.  Anything that is not somehow remotely related to real estate, or the Mat-Su Valley will not count.  This can be stretched quite a bit but still needs to tie in somehow.

Feel free to email the suggestions by clicking the contact link above right, or click on the comment link below.

This contest will end next week, March 21, 2007.

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Well, both deals for last week really were good ones.  The lot had multiple offers and I think the builder sold 5 of those houses.  We wrote four of them ourself.

Those are such good deals for new construction that they make the list this week as well. 

He has three bedroom ranch with a one car garage for $157,000.  That includes a $35,000 lot, a 100 foot well and a septic.  You could move in by August.

The next deal for this week is this log home for only $115,000.  Click on the photo to enlarge.  It is over 1,700 square feet on almost one acre in the Lazy Mountain Area and out of the wind.  It needs some repair to finance.  But this is a rare opportunity. Call for details.

My cell phone is 907 232–7900 or you can email by clicking the contact link just under my name above right.

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Things are still cooking along at just about a normal pace. There are a few more new listings this week and that is to be expected as we move into the spring market.  I talked about the market with Larry Ficek at RE/MAX last week and he said the next two months will tell the story for the rest of the year…and of course, he is right.  The spring months tell us what our market will be like.

Continuing a trend that has been with us for awhile is the difference between the average sales price of the homes on the market and the homes that are selling. 

Notice that the average price of the pending sales this week is less than $200,000.  This week was influenced by five pendings from one builder with some great prices.  These were mentioned in last weeks deals of the week.   Jay noticed those prices and after checking them out we wrote four offers on them last week.  The houses should be finished in mid-summer.  Give me a call at 907 232–7900 if you would like to find out more about those new construction homes.

If you like hard numbers, here is a good comparison chart of residential property sales comparing this year to last year.

There are some interesting things to look at if you like the numbers.  On is the fact that prices are still going up…and another is the days on the market is growing.  The growing days on the market coupled with the fact that units sold are actually increasing is very interesting.  That shows that the supply is increasing faster than the demand, but that both supply and demand are growing….RIGHT?

Sometimes when I look at numbers for a long time my brain starts to fog up.  Comment below if you read these stats differently than I do.

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Way back in January I wrote about the five steps to buying the right house in Palmer or Wasilla, and I said I would follow up on each of the five steps.? The first was to pre-qualify and then I dropped it?so I?m following up with the second step.

You have already pre-qualified for a loan since that is the first step.? You know about what the payment will be and should have decided your top dollar that you will pay for a house.

Now you need?to decide what you really need.? What is it that you really want in house?? Do you have a growing family?? Do you need a newer home with fewer allergens?? Are you tired of walking up and down stairs and want a single story home?? There are all kinds of possibilities and you need to sort them out.

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I asked John Hill of Lynne Lake Home Inspections to contribute an article on radon and he was kind enough to oblige. John has first-hand experience with radon in Wasilla and the Mat-Su Valley. This article is the second in the “healthy home” series. The first was about fragrances. 

RADON

Another thing to worry about!

By

John C. Hill

 Lynne Lake Home Inspections

Did you know radon is the second largest cause of lung cancer?  The Surgeon General and the EPA recommend all homes be tested for radon and reducing radon in homes that have elevated levels.  Radon is a naturally occurring radioactive gas produced by the breakdown of uranium in soil, rock, and water.  It cannot be seen, smelt, or tasted.  The only way to know if you are at risk of exposure is to have it tested.  For more specific information concerning about radon refer to the EPA website document entitled “A Citizen’s Guide to Radon” .

All of us that have been involved in real estate transactions have heard people say we do not have radon in Alaska, therefore we do not need to test for it.  Radon is everywhere and there are recorded tests in the Matanuska/Susitna Borough that show this to be false.  I have tested my past home in Willow and found elevated levels requiring a mitigation system to be installed.  Moving to a new home in Wasilla, this past year found elevated levels of radon in the home.

Once discovered to be above the recommended level, radon presence can be greatly reduced to safe levels by mitigation.  Cost can vary by the system used but an average is around $1,000.  Further information can be obtained from EPA publication entitled “Consumer’s Guide to Radon Reduction” .

The home in Willow had the radon reduced by the installation of a sub-slab suction device which consisted of an access being made in the slab.  It was then sealed to a 4 inch vent that connected to a special radon fan in the attic.  The fan was then vented through the roof.  This system reduced my radon level well below the recommended level and cost about $850.  My new home will be mitigated soon and will be very easy to do.  My contractor installed a vent through the center of the home in the walls as the home was being built.  This vent will be sealed to my crawl space vapor barrier and connected to an exterior vented fan in the attic.  My contractor also installed an electrical outlet in the attic for the future fan if needed.  This simple addition to my home will cut my cost to about $300 to complete the system.  The cost for the contractor to do at time of construction was very minimal.

Radon exposure in the home can be deadly but does not have to be ignored due to cost.  The amount of money I spent to make our home safe was small in comparison to possible life threatening exposure.  To find out if you have risk of radon in your home you can contact a radon measurement professional or you can self test with a purchased test kit.  I encourage all of you that read this article to take some action toward discovering if you are at risk.

For those of you who are buying, selling, or having a home built, take some time to read the EPA brochure entitled “Home Buyer’s and Seller’s Guide To Radon” for more information.   

If you have further questions or you would like to schedule a test, please give me a call at 907-232-5675 or email lynnelake(at sign)att.net

Thank you John, I really appreciate you taking the time.

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These real estate deals are usually brand new listings. I haven?t seen most of these properties because they just came on the market.? I am making a judgement call based on what I know about the area and about real estate.? I have to look at the photos and judge whether the price seems good based on the market.

It?s important to remember that the really good deals usually are sold within a week or two.? Sometimes, when the market is slower they will take a month to sell.? I have had sellers tell me that they want their home sold within a week.? Well, that?s easy, price it to sell.? It has to be significantly below the competition, perhaps by as much as 10%.??

In the past?articles I?have listed?property that?is fairly priced but not necessarily significantly below the competition.? I am going to try to pare it down only to properties?that seem to be priced to sell very quickly.

So here are the?two deals for this week:

• A one acre lot with a very small cabin, view, power, and phone.? $27,500?RE/MAX of Wasilla
• Brand New 3 bed, 2 bath, 2 car garage in Palmer? $156,000.? 468 sq ft unfinished, RE/MAX of Wasilla.? This is a ?to be built?

Although these are both RE/MAX listings, I don?t represent either seller.? I would love to represent you on a purchase of these deals.

By the way, a previous deal of the week, this cute cabin, now has 3 offers on it.?

Call me at 907 232?7900 or click the contract button above and send me a message.

If you want to get these messages in your email as soon as they come out click the subscribe button above.?

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Well, I expected to see a continued upward trend in pending sales and new listings this week, but it didn’t happen.  The reason I expected it is that we have seen increased activity on our own listings with more showings and three offers over the weekend.

The only thing that went up was total listings

There were two closing over $300,000 this week but the bulk of the activity is still on the lower end.  Notice that the average price for closed sales this week was under $200,000.  That is because there were two very low priced FORECLOSURE that sold this week bringing the average down.

Check back on this post tonight, I will have a chart up…it’s not quite ready yet.

  OK…it’s still today and I promised I’d get a chart up.  This isn’t the one I was working on but it’s probably better.  It’s from the Alaska  MLS so that means I need to use their disclaimer at the bottom of this post.

Notice what we have been saying all along.  Total sales are just about the same as they have been in past years.  So demand has not dropped.  But supply has risen so that now there is a higher supply than in 2005.  But the supply in February of 2007 is almost identical to that of 2006.  So far, it looks like Ted Jones is right…there is no bubble here.

“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. “

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My two brothers and their families as well as my son Gerrit and I spent the afternoon on Vera Lake in Willow watching the start of the Iditarod Sled Dog Race. It was a beautiful sunny afternoon with the temperatures around 15 degrees.

Festive crowds were spread out along the trail as it wound down the lake. The mushers took about 20 minutes to get to our location from the starting line on their way to Nome more than 1000 miles away. The dogs were running strong and eager. All of them looking like they wanted to be the first to the finish line.

We relaxed in the sun, roasted hot dogs and marshmallows and cheered each musher as they went by. It was a nice relaxing afternoon for us, but the beginning of 9?15 days of hard racing for the mushers and their teams.

Growing up on the Innoko River in the village of Holikachuk gives me a special affinity to this race since it is named for a town fairly close to ours. I remember the adults talking about going upriver as far as the Iditarod. They were talking about the river, not the gold rush town. I always wanted to explore that river, and still do.

My Dad, Gale Van Diest, had a dog team since it was the only way to get around in the winter. He hauled all our firewood with it and travelled to Shageluk and Anvik. I was allowed to drive them occasionally but usually spent my time inside the sled.

But our dogs were completely different than these racers. They were a lot bigger and slower. I think our dogs probably ran about 6 miles an hour or so on a longer trip, while these Iditarod race teams often average close to 15 miles an hour between checkpoints. Thats like running a 4 minute mile for hours on end.

Our teams were smaller, usually just 5?7 dogs. These teams are 16 dogs strong. I can?t imagine handling 16 dogs at full speed on some of the trails they are running. These teams are very well trained and in great condition.

Their sleds are nicer too. I don?t think they could haul much wood in them, but they look mighty comfortable. What with the new sit-down sleds and modern materials they are a far cry from the ones we used. Some of them almost look like they had lazy boy recliners on them.

There?s Rick Swenson, on his way to Nome.

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Homeowners Associations in the Mat-Su Borough are one of the few governing bodies that actually care about covenants.  People love to complain about homeowners associations.  You tend to only hear about them when someone is in trouble because they painted their house pink instead of purple…or something like that.

Generally if you live in a development with covenants but break a minor one, while still keeping your neighbors happy no one will care.  You might even get away with a fairly large breach of the covenants with no repercussions. 

But if you upset your neighbors in some way, like say…allowing your dog to bark incessantly until 3 AM every morning, they will start reading the fine print in the covenants.  Then they will start complaining to the homeowners association about the color of your shed, or the fencing that comes past the front of your house by 3 feet, or the fact that you have a dog and two cats instead of two dogs and a cat.

After you get the nasty-gram from the Homeowners Association you will start to gripe about the $100 per year dues you pay to that group.  What do they do anyway with all that money?

First, the association has to account for the money.  They need to have a budget, regular meetings and minutes of those meetings.  The budget and the minutes are presented to new buyers with a resale certificate which usually includes a large binder showing the covenants, the minutes, and budget of the association. 

It does much more than just police the covenants. 

• 1.Many associations provide street lights at school bus stops within the subdivision
• 2.They communicate with officials about community concerns.
• 3. It manages community held property like parks, water systems, etc.
• 4. They may organize community events, like a community spring cleaning.

For more on homeowners associations see: Homeowners Association News, and  Primer on Homeowners Associations

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