Anchorage, Alaska Real Estate

In the municipality of anchorage, if you have a well or septic, the municipality requires a certificate of on site services (COSA) be issued when the property title is transfered.

I am often aslked the difference between a standard water test and Private Individual Water Analysis (PIWA).

The basic water test tests for arsenic, nitrate and chloriform, and costs approximatley $200.

The PIWA test includes all of the following: Total Coliform, Nitrate, Nitrite, Chloride, Sulfate, Fluoride, Aluminum, Antimony, Arsenic, Barium, Cadmium, Calcium, Chromium, Copper, Iron, Lead, Magnesium, Manganese, Nickel, Phosphorus, Potassium, Selenium, Silicon, Silver, Sodium, Thallium, Zinc, Conductivity, Total Dissolved Solids, Hardness, Alkalinity and pH. Price to pull sample and submit to lab is $530.00

Zillow,

I often get asked how accurate is Zillow? I say in Alaska it is not very accurate. Alaska is a non disclosure state. The sale price of real property does not have to be disclosed to any municipal or state taxing authority. In disclosure states, the sale price of a home is public record. The deed in Alaska says "for the sum of $10.00 or other valuable consideration" and the true sale price is not disclosed.

I have spoke with realtors in states that require disclosure of sale prices of homes and have been told they find Zillow quite accurate in those areas.

Buyers have fewer homes to choose from, going into winter. The inventory of homes for sale in Anchorage is generally highest  during June, July or August, this year buyers in the Anchorage Bowl had 1,170 homes to choose from at the peak of Anchorages inventory. Today there are 989 homes to choose form. December and January, the number of homes are expected drop to 600 to 700.

Likewise the number of home  sales drop during the winter months, At the peak of the summer MLS reported 265 home sales in August. Last year in January 2010,  Anchorage had the lowest reported sales ever at 93, this was the lowest in decades. The number of sold homes during the slower winter months tends to be between 100 & 150.

Is now a good time to sell? Yes. The number of sales is down during the winter, so there is less competition out there, this means there are less homes for a buyer to choose from. The number of homes that sell any given month seem to stay  between 18% and 21%. The buyers that are out shopping in the winter tend to be more serious. As always the best priced homes in the best condition are the ones that sell.

Is now a good time to Buy? Yes. Interest rates continue to remain at historic lows. Although inventory is down. The sellers that keep their homes on the market past the peak selling season tend to be more serious, they are not "just testing the waters". They have a need to sell.

Alaska Housing

Home Energy Rebate Program

The Home Energy Rebate Program for existing homes will rebate up to $10,000 to a homeowner, who improves the energy efficiency of his or her home. A qualified homeowner must improve the energy efficiency of the home at least 1 step using the energy rating system described below in Energy Rating and Rating Points.

The homeowner must be the year-round occupant of the upgraded home and submit the rebate application and required documents within eighteen months of the date on the As-Is rating. Each family and property is eligible for one rebate only. The person to whom the rebate is paid will be required to submit a Social Security number, and the amount of the rebate will be reported to the United States Internal Revenue Service. An IRS Form 1099 will be mailed to the homeowner at the end of the year in which the homeowner received the rebate.

For more information: http://www.ahfc.state.ak.us/iceimages/energy/her_program_guidelines.pdf 

It is finally official.  The homebuyers' tax credit has been extended to April 30, 2010.

President Barack Obama approved the extension as part of a $24 billion economic stimulus bill signed Friday.  The bill also includes an extension of unemployment benefits to the longtime jobless and tax credits for some businesses.

The housing tax credit portion of the bill extends the $8,000 tax credit for home buyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to other homeowners who have lived in their current home for at least five years and are seeking to relocate. 

Another modification to the original legislation raises the income limits for program participation from $75,000 for a single purchaser to $125,000 and from $125,000 to $225,000 for a couple.  There are also credits available on a diminishing basis above those income limits.

The bill was passed by the Senate on Wednesday evening and by the House on Thursday.  Both bodies acted in a bipartisan manner which has seldom been seen this year.  The Senate passage was unanimous; the House voted 403 to 12 for the bill.

Spring home buyers can claim a special tax credit worth up to $8,000. The American Recovery and Reinvestment Act offers qualifying homebuyers a tax credit equal to 10 percent of a home's purchase price, up to a maximum of $8,000. The tax credit is offered to first time homebuyers, and those who have not owned a principle residence in the past three years. To be eligible for the tax credit, the home purchase must be recorded between January 1 through December 1, 2009.

The full tax credit is offered to buyers with reported income up to $75,000, or $150,000 for married couples filing a joint return. Partial tax credits are available to for those with income levels up to $95,000, or $170,000 for those filing jointly. Contact us today for more details on this exciting program

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.