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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I am working with someone looking for land on Lazy Mountain.?I have a beautiful log home listed there, but no land. ?Land is always hard to come by in that area.? Most of the folks who live there know a good thing and hold it tight.? I was searching last night on the Valley MLS system in the PA06 area and found only two active listings in the area.? These two parcels were?listed by Cindy Ziegler, found here and here.

You will notice that she has a nice view photo and that there is some good detail on the listing about how to find the parcels.? I knew exactly where these parcels were from her description.

Since those were the only two active listings and my party was looking for?a larger parcel I searched for expired and cancelled listings on the hopes that these owners may still want to sell.? There were a few listings there but the most recently expired listing caught my eye.? This was a 20 acre parcel listed for $890,000.? That is a pretty phenomenal price and I wondered which parcel it might be so I clicked on the detail.? The detail says that this 20 acre parcel is in Palmer, on map PA06 in fact, which puts it on Lazy Mountain.? It goes on to say that the high school area is Colony High and the elementary school is Fire Lake.? There?were no detailed remarks at all about the parcel except that it said there were no utilities and no road access.? The tax number was listed, however, so I looked it up.? Turns out, this is a prime commercial property only a stone?s throw from the Cottonwood Creek Mall in Wasilla and it actually sold and closed in April of 2006.? Apparently the licensee already had a buyer before the parcel was put into the MLS system so?he didn?t care about the details.??He further didn?t close out the listing and let it run until it expired in Jan of 2007.

So, back to square one. ?I got on the phone to some people I knew on Lazy Mountain.? They in turn gave me other numbers and I finally?did turn up a 2 acre parcel that the out-of-state owners may sell, but it?s not much different than the?land Cindy Ziegler has listed.? I?m still on the hunt.? So far I think I have spent at least 10 hours looking for land for this couple I have only met on the internet. I really have no idea if I can find a suitable parcel, and if I do, whether the couple will even move here.?

Like I have told many prospective clients in the past when they ask me what I charge.? I don?t charge anything, I work for free.? I only get paid if I help the client meet their real estate goal.?

If you know of anything on Lazy Mountain, help me out!? Drop me a note, or give me a call, (907) 232?7900.?

?

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I took this photo just this morning from my house. Pioneer Peak stands out from Palmer to Wasilla and is a premier landmark for the Valley. This view is worth something to me, and it would be worth something to a buyer of my home.  But exactly how much is it worth?

When you price your home there are so many different and sometimes opposing values to add and subtract from the price it can be confusing.  So which ones are important enough to take into account?  Curb appeal is important, light is important, cleanliness and maintenance are important.  All those will help a home sell faster than it’s competition.  But you can actually add some value for a view. 

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Moving to the Matanuska Valley brings with it beautiful mountain vistas, large lots covered in birch and spruce, quiet neighborhoods and pristine wilderness settings.  Often, we neglect to mention the dreaded MATANUSKA WIND! The photo is of Engstom Road just yesterday taken from my junker Toyota truck as I was on my way to a 1PM appointment.  Click on it to see the wind blowing over the snowberm.

This wind starts at the headwaters of the Matanuska Valley right at the Matanuska Glacier and gradually picks up speed as the Chugach and Talkeetna Mountains funnel it right into Palmer and Wasilla.  After hitting the main part of the valley it spreads and diminishes. 

This isn’t a constant wind, it usually lasts a few days and and then calms down again.  I’m sure this isn’t scientific, but I have become accustomed to expecting the wind within a day or two of a fresh snowfall.  However, we have had so many snowfalls this winter that I haven’t been able to keep track of this rule.

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Wells in the Mat-Su Valley run the gamut from artesian water that is so pure it should be bottled and sold,?to?mucky stink holes that a dog won?t drink.? Many new-comers to the valley assume that since the water in their home comes out of a tap, it must be good.? This article will be the first in a series of articles discussing how to find out more about the water you drink.

The cities of?Palmer and Wasilla each have their own water systems, but these only serve people inside the city limits of each.? In fact, the Wasilla system only serves some of the city residents.? In addition, many of the?developments in the Mat-Su Valley have their own community water systems.? These city and community systems are regulated and required to test the water on a regular basis.

Most homes in the valley are served by private wells that serve only one house.? There are no regulations requiring these wells to be monitored.? The only time any testing is done is when the home changes hands, and that is usually a minimal test looking for bacteria contamination.?? There are many other contaminants that can be in your water that could affect your health.? Arsenic and other metals can be?found in valley wells. Nitrates and nitrites are sometimes there as well.

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You have made the decision to buy a house, it’s time to ACT! Let’s go look at houses!  Whoa!  Let’s put the snow hook in and stop this runaway team before we get all tangled up. 

Look at the reasons to talk to a lender before looking at a home.

• You will receive a good faith estimate.  This is a piece of paper that itemizes all your costs of purchasing the home.  It also states your interest rate and the monthly payment.  Most lenders will be willing to give you several good faith estimates based on different loan amounts and different types of loans. 
• You will get a head start on paperwork.  Your lender will always need some extra documents that will require some time to track down.  You will need bank recent account statements. You may need tax forms. A letter from your employer will be required stating that you actually work where you said you did.  Many times these documents take some time to track down and you can get them done early.
• Your offer to purchase will be stronger.  When you write your offer on your home the amount that you offer is only part of the equation.  The seller wants assurance that you can actually complete the purchase.  If you have pre-qualified, the lender will write a 90% letter to include with your offer that will  make the seller more comfortable even if your offered price is lower than the asking price.
• You won’t waste time and effort. If you fall in love with a home only to find that you can’t qualify to purchase it you will be disappointed.  Not only that, all the other homes you look at will seem dingy and small compared to the one you can’t have.  Save yourself the drama, put first things first.

Wasilla and Palmer have many qualified lenders that can help smooth out the bumps in the purchase process.  If you are buying a home in the Valley, I recommend using a valley lender.  There are many intricacies of valley real estate that they will know.  An out of state lender, or even an Anchorage lender may cause your loan to take longer to close just because they are not as familiar with the Mat-Su Valley. 

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It’s 17 degrees below zero at my house right now, and I’m in Palmer, the banana belt of Alaska.  I just checked  weather underground and the forecast for Fairbanks is a low of -40 tomorrow.  This is coming off about 2 weeks of snow every day.  I think Anchorage currently is ahead of their record snowfall.  At least the sky is clear and the mountains are pretty

At this temperature you don’t need an infrared camera to tell where your house is losing heat.  Just go outside and take a good look.  Do you see collections of frost in different areas?  Those are causes by either air leakage from inside your house, or by warmth leaking out of the house because of insufficient insulation.  Either way you are contributing to global warming by warming the outside rather than the inside of your home. 

Take a good look at those frosty spots.  If they are just under an eave of a cathedral ceiling, or just around the outside of a door or window that means air is leaking at those spots.  You need to seal those areas with insulation, foam, or caulk.  If you use foam around a door or a window make sure it’s not expandable foam or it could cause the frame to deform.  All that warmth going to the outside can be quantified in dollars spent on your heating bills.  Air leakage can also cause moisture to collect inside your walls since it usually starts condensing before actually hitting the cold outside air. 

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