Anchorage Real Estate BlogRecently posted or modified blog posts in the category - Home Buying Blogs – Anchoragehttps://www.akhomeshow.com/blog/Copyright AKHomeShow.com2021-07-06T14:31:28-07:00tag:akhomeshow.com,2012-09-20:5804Best Anchorage Neighborhoods to Live Near Ted Stevens Anchorage International Airport<img src="/userFiles/1715/image/anchorage-neighborhoods-near-airport.jpg" style="display: block; margin: 20px auto;" alt="Best Anchorage Neighborhoods Near Ted Stevens Anchorage International Airport" />
Anchorage, Alaska, is an exciting city to live in. <a href="https://www.akhomeshow.com/blog/anchorage-history/">Founded in 1914</a>, it's a vibrant, culturally rich city with a <a href="https://www.akhomeshow.com/blog/anchorage-things-to-do/">wide variety of things to do</a>. Yet, it's also near some of the most beautiful nature in the world.
The international airport in Anchorage is equidistant between New York and Tokyo, which puts it less than 10 hours from almost all industrialized nations. As a result, Anchorage residents who live in neighborhoods near the airport can have the best the <a href="https://www.akhomeshow.com/anchorage-real-estate/">Anchorage community</a> offers while also being close to the whole world. Those planning to rack up frequent flyer miles should read on to discover the Anchorage neighborhoods closest to Ted Stevens Anchorage International Airport.
Turnagain
Turnagain Amenities
Lake Hood, a floatplane base
Access to the Tony Knowles Coastal Trail and 10 parks
Annual Halloween event on Fish Creek Trail
Two art galleries
Access to Cook Inlet and Fish Creek
Turnagain is located between Cook Inlet to the north and west, Lake Hood and Fish Creek to the south, and Minnesota Drive to the east. It's primarily a residential area, with some commercial and retail. The population is around 14,300, and the home values range from the $300s to the $400s.
While residents can walk to restaurants and bike on trails, most daily errands require a car. Local hotspots include the <a href="https://rusticgoatak.com/" target="_blank">Rustic Goat</a>, one of the <a href="https://www.akhomeshow.com/blog/best-restaurants-anchorage/">most popular restaurants in Anchorage</a>; a performing arts studio, <a href="https://frozenmusic.com/" target="_blank">Frozen Music Productions</a>, which also offers lessons for all ages; and the <a href="https://anchoragecommunityhousetoollibrary.myturn.com/library/" target="_blank">Anchorage Community House and Tool Library</a>, which allows members to check out items ranging from hammers and canning pots and circular saws and vehicle ramps.
Turnagain is 1.4 miles from Ted Stevens Anchorage International Airport.
Sand Lake
Sand Lake Amenities
Access to several trails and parks, including waterfront Kincaid and Jewel Lake parks
Popular fishing spot at Sand Lake
Shopping, including several grocery stores
An array of restaurants
Sand Lake, also known as Jewel Lake, is in Southwest Anchorage and is the neighborhood that surrounds Sand Lake. Its boundaries are International Airport Road to the north, Campbell Lake to the south, Cook Inlet to the west, and Walter J. Hickel Parkway to the east.
Its population is around 25,200, and the typical home value is in the mid-$300s. It's known for plentiful green space and an abundance of restaurants. Most errands require a car. While the <a href="https://www.akhomeshow.com/blog/driving-anchorage/">commute to downtown</a> requires about 20 minutes on good roads, Sand Lake provides easy access to parks and <a href="https://www.akhomeshow.com/blog/best-lakes-anchorage/">other Anchorage lakes</a>.
The neighborhood has several local eateries, including <a href="http://kincaidgrill.com/" target="_blank">Kincaid Grill</a>, <a href="https://www.siamcuisineak.com/" target="_blank">Siam Cuisine</a>, and <a href="https://shanghaiteagardenak.com/" target="_blank">Shanghai Tea Garden</a> and bars such as the <a href="https://www.facebook.com/AKHideawayClub/" target="_blank">Hideaway Club</a> and <a href="http://www.humpys.com/" target="_blank">Humpy's Ale House</a>. Residents can grab a morning pick-me-up at <a href="https://www.facebook.com/AWholeLatteLove/" target="_blank">A Whole Latte' Love</a>, <a href="https://www.facebook.com/Java-The-Hut-190885417594342/" target="_blank">Java the Hut</a>, <a href="https://www.yelp.com/biz/boba-tree-cafe-anchorage" target="_blank">Boba Tree Cafe</a>, and <a href="https://kaladi.com/locations/jewel-lake" target="_blank">Kaladi Brothers Coffee</a>. The neighborhood also includes Connors Lake Park, one of <a href="https://www.akhomeshow.com/blog/best-dog-parks-anchorage/">Anchorage's most popular dog parks</a>.
The Sand Lake neighborhood is 4 miles from Ted Stevens Anchorage International Airport.
Spenard
Spenard Amenities
Adjacent to Lake Spenard and Lake Hood
Northern Lights Shopping Mall and unique local shops
Annual Spenardi Gras festival
<a href="https://www.facebook.com/spenardjazzfest" target="_blank">Spenard Jazz Fest</a>
The Alaska Aviation Museum is located here on the world's largest seaplane base
<a href="https://www.facebook.com/SpenardFoodTruckCarnival" target="_blank">Spenard Food Truck Carnival</a>
Spenard was once a separate city from Anchorage and still maintains a distinctive flavor. It's known for poetry jams and bicycle parties and is often viewed as a hub for artists and musicians. Spenard is located between Northern Lights Boulevard to the north, International Airport Road to the south, Fish Creek to the west, and Arctic Boulevard to the east.
Residents have several potential gathering places. One is the<a href="https://beartooththeatre.net/" target="_blank"> Bear Tooth Theater Pub</a>, which features food, craft beers, movies, and live events. Another is the windmill, which houses a seasonal farmers market and other events. Popular local restaurants include the <a href="https://spenardroadhouse.com" target="_blank">Spenard Roadhouse</a> and <a href="http://gwenniesrestaurant.com/" target="_blank">Gwennie's Old Alaska Restaurant</a>. An independent bookstore, the <a href="http://writersblockak.com/" target="_blank">Writer's Block Bookstore and Café</a> feeds appetites for knowledge.
Spenard has a population of almost 13,000, and home values are typically in the mid-$200s. Residents can accomplish some of their daily errands on foot but will still need a car for some activities.
Spenard is 1.9 miles from Ted Stevens Anchorage International Airport.
Bayshore/Klatt
Bayshore/Klatt Amenities
<a href="https://bayshoreclub.org/" target="_blank">Bayshore Clubhouse</a>, which features tennis courts, event space, a swimming pool, sauna, and whirlpool
Excellent retailers and cafés
<a href="https://www.facebook.com/southanchoragefarmersmarket/" target="_blank">South Anchorage Farmers' Market</a>
Access to natural beauty through <a href="https://www.akhomeshow.com/blog/best-parks-anchorage/">Anchorage parks</a>, trails, and lakes
The <a href="https://www.akhomeshow.com/anchorage-real-estate/bayshore/">Bayshore/Klatt neighborhood</a> is one of the oldest in Anchorage. Its boundaries are Campbell Lake to the north, Johns Park and East Klatt Road to the south, Cook Inlet to the west, and the New Seward Highway to the east. Real estate consists primarily of single-family homes in various styles, with a few of <a href="https://www.akhomeshow.com/anchorage-real-estate/anchorage-townhomes/">Anchorage's townhouses</a>.
The average home price ranges from the mid-$300s to the $400s, and the population is around 14,800. Most activities require a car. The commute to downtown is also convenient.
The neighborhood offers access to natural beauty, including the coastline. Popular parks include Chugach State Park and Carr-Gottstein Park. Local bars and cafés include the <a href="https://bluelinepubak.com/" target="_blank">Blue Line Pub and Café</a>, <a href="http://firetapalehouse.com/" target="_blank">Firetap Ale House,</a> <a href="http://alaskabradleyhouse.com/" target="_blank">Bradley House Food and Spirits</a>, and <a href="https://www.facebook.com/ruggedbrews/" target="_blank">Rugged Brews</a>. The <a href="https://www.omalleysports.com/" target="_blank">O'Malley Sports Complex</a> provides a track, ice skating rink, open gym, and hockey.
Bayshore/Klatt is 5 miles from Ted Stevens Anchorage International Airport.
Taku/Campbell
Taku/Campbell Amenities
Indoor and <a href="https://www.akhomeshow.com/blog/best-outdoor-activities-anchorage/">outdoor recreational opportunities</a>
Active performing arts community with several theaters, including Wild Berry Theater and <a href="https://www.actalaska.org/" target="_blank">Anchorage Community Theater</a>
Bustling retail, including both national chains and local shops
A plethora of nightlife options, including various bars and a casino
A wide variety of restaurants
Taku/Campbell is bordered by International Airport Road to the north and 92nd Avenue to the south. Its western boundary is the Walter J. Hickel Parkway, and the eastern is the New Seward Highway. It has about 16,000 residents and is the home of the Dimond Mall Shopping District and other shops and entertainment. The <a href="https://dimondcenter.com/" target="_blank">Dimond Center</a>, within that district, is the state's largest enclosed shopping mall and features a movie theater, bowling alley, food court, arcades, and ice skating rinks.
The neighborhood also has several recreational opportunities. For example, the<a href="https://thedome.us/sports/" target="_blank"> Dome Arena</a> provides space for several sports and exercise options, such as a pickleball court, track, batting cages, free weights, and more, and <a href="https://putterswild.com/" target="_blank">Putter's Wild</a> features indoor blacklight mini-golf and virtual reality booths.
Another gathering spot is the Anchorage Market on the weekends in May through September. The neighborhood also has plenty of trails and green space; in fact, the Campbell Creek Green Belt runs through its center.
Home values in Taku/Campbell generally hover in the mid-$200s. Residents can walk to many shops and restaurants, although they'll still need a car.
Taku/Campbell is 4.5 miles from Ted Stevens Anchorage International Airport.
North Star
North Star Amenities
Access to trails and parks, including the Westchester Lagoon Park area and the Valley of the Moon Park
Convenient retail zones within the neighborhood and access to nearby Sears Mall and <a href="https://www.simon.com/mall/anchorage-5th-avenue-mall/stores" target="_blank">Downtown 5th Avenue Mall </a>
Lots of cafés and restaurants, many within walking distance for most residents
The neighborhood of North Star is bounded by Minnesota Drive on the west, New Seward Highway to the east, Chester Creek Greenbelt to the north, and Fireweed Lane to the south. The Chester Creek Greenbelt links into the city's trail system so that residents can access several trails and parks. The neighborhood also is convenient to nearby retail.
A hotspot for nightlife is <a href="https://www.facebook.com/reillysirishpub/" target="_blank">Reilly's Irish Pub</a>. Locals also gather at the <a href="https://quantumlaundry.com/" target="_blank">Quantum Laundry Lounge</a>, which is a coin laundromat with an espresso bar.
The neighborhood has a population of around 3,500, and home prices are generally around the high $200s and low $300s. While ample opportunities exist for <a href="https://www.akhomeshow.com/blog/best-walking-trails-anchorage/">walking on the trails</a> and dining at nearby restaurants, residents will need a car to complete most errands.
North Star is 3.8 miles from Ted Stevens Anchorage International Airport.
Midtown
Midtown Amenities
The Campbell Creek Greenbelt, which runs through a corner of Midtown
<a href="http://www.anchoragelibrary.org/" target="_blank">Anchorage Public Library</a>
Parks, including Cuddy Family Midtown Park and Arctic Benson Park, which has a no-leash dog park area
A variety of restaurants and nightlife options
Midtown is located south of Fireweed Lane and north of International Airport Road. It's bounded on the west by Arctic Boulevard and New Seward Highway to the east. The area has a significant amount of retail within it, as well as several parks.
<a href="http://thecentermarket.com/" target="_blank">The Center Market</a>, the state's only year-round market, is located in Midtown. It's popular on Wednesdays and Saturdays for fresh produce and vegetables. Midtown also has several dance schools and venues, such as the <a href="https://www.alaskadancetheatre.org/" target="_blank">Alaska Dance Theater</a> and the <a href="https://www.anchorageballet.org/" target="_blank">Anchorage Classical Ballet Academy</a>.
The population is about 4,150, and the median home price is typically in the lower $200s. The neighborhood features various home types, including townhomes, <a href="https://www.akhomeshow.com/anchorage-real-estate/anchorage-condominiums/">Anchorage condos</a>, single-family homes, and lots.
Midtown is 3.7 miles from Ted Stevens Anchorage International Airport.
Abbott Loop
Abbott Loop Amenities
Parks, including Abbott Loop Community Park
Easy access to shopping, restaurants, and cafés
Large selection of grocery stores and markets
Easy commute to downtown jobs
Abbott Loop is in south Anchorage and is bounded by New Seward Highway to the west, Elmore Road to the east, Dowling Road to the north, and Abbott Road to the south. Several small parks are within its borders, and residents also have easy access to larger parks. The neighborhood features a variety of housing types, including single-family homes, townhomes, and condos.
Abbott Loop has a population of almost 38,000, and the homes are typically priced in the low $300s. Commuting downtown is short and easy.
The neighborhood also has several restaurants. A popular one is <a href="https://www.sewardsfollybarandgrill.com/" target="_blank">Seward's Folly Bar and Grill</a>, which advertises the best burgers in Alaska. Also popular is <a href="https://cups-pups.business.site/" target="_blank">Cups & Pups</a>, which offers beverages, food, dog gear, and nearby pet boarding and daycare.
Residents need a car for most errands, although cafés and restaurants will often be within walking distance.
Abbott Loop is 6.7 miles from Ted Stevens Anchorage International Airport.
Discover Home in Anchorage
The neighborhoods close to Ted Stevens Anchorage Airport offer a range of architectural styles, housing options, and community ambiances. Residents can choose to live in smaller communities, such as Turnagain or North Star, or larger ones, such as Abbott Loop. While all the neighborhoods include some retail, nightlife, restaurants, and natural beauty, each neighborhood is unique in how it blends these. Residents seeking to relocate to these neighborhoods have many options.
2021-06-23T12:25:00-07:002021-07-06T14:31:28-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:5594Most Popular Home Builders in Anchorage<img src="/userFiles/1715/image/anchorage-home-builders.jpg" style="display: block; margin: 20px auto;" alt="Popular Home Builders in Anchorage" />
Home Builders in Anchorage, AK: Anchorage's Most Popular Home Builders Guide
For many people, building a home is one of the greatest achievements in life. There are many benefits to new production homes. Homebuilders can customize layout, colors, and other features to provide exactly what the homeowner wants. Building new also means not worrying about outdated technology and inefficient energy designs. <a href="https://www.akhomeshow.com/anchorage-real-estate/anchorage-new-construction-homes/">New construction homes</a> are much less likely to contain hidden costs such as rotten wood or additions that are no longer up to building codes. When the unit is tailor-made, even modest houses can feel like <a href="https://www.akhomeshow.com/anchorage-real-estate/anchorage-luxury-homes/">luxury homes</a>.
For residents of <a href="https://www.akhomeshow.com/anchorage-real-estate/">Anchorage</a>, Alaska, many successful home builders can create a dream home. Here are a few things to know about the most popular builders in Anchorage.
WillowRidge Construction
<a href="https://willowridgedraft1.squarespace.com/" target="_blank">WillowRidge Construction</a> prides itself on using values like creativity, devotion, and skill to build inspirational, finely crafted homes. In business for more than 15 years, they have a legacy of award-winning service. Founder Josh Sundstrom is part of a family of construction experts, beginning with his great-great-grandfather being a shipbuilder.
The company can build homes in several styles from the ground up and offers a <a href="http://willowridgedraft1.squarespace.com/portfolio" target="_blank">portfolio including dozens of successful builds</a>. Each home can be designed and built to the individual specifications of the new homeowner.
WillowRidge also offers many services for those with existing homes, such as remodeling and additions. They can take on projects as small as adding a suite of cabinets, including bespoke woodworking and wrought-iron structures.
WillowRidge Construction Additional Information
Year Established: 2007
Price Range: $150,000–$5,000,000
Areas Served: Anchorage, Elmendorf Air Force Base, Fort Richardson, and Girdwood
Spinell Homes
Boasting the title of the largest homebuilder in the state, <a href="https://spinellhomes.com/" target="_blank">Spinell Homes</a> has been operating for more than three decades. Founded by Chuck and Jackie Spinell, the company operates as a family business. Over the years, they have successfully built more than 3,200 homes in Alaska. Each domicile is designed and created with a focus on safety and security. They were one of the first companies in the industry to offer a ten-year structural warranty.
In recent years, the business has renewed its focus on providing structures that are energy efficient. They are dedicated to remaining current on the latest green technologies, so each home is long-term viable and cost-efficient for the foreseeable future. Certified in green construction, the company is centered on building healthy communities for the environment and the residents.
Over the years, Spinell has been recognized for its customer relationships by the Better Business Bureau. Both the Matsu and Anchorage Home Builders associations have awarded them for years of excellent construction.
Spinell Homes Additional Information
Year Established: 1987
Price Range: $230,000–$950,000
Areas Served: Anchorage, Eagle River, Wasilla, and Palmer
Hultquist Homes
<a href="https://www.hultquisthomes.com/" target="_blank">Hultquist Homes</a> was created in 1980 by founder Dave Hultquist. Originally a resident of Washington State, Dave moved to Alaska in 1979 with the singular focus on building homes. In the last 40 years, the company he started has constructed more than 2,500 homes in the Anchorage area and hundreds of other homes in the Seattle, Washington, community. Along the way, the enterprise has collected numerous awards and established a reputation for building quality houses focusing on value.
As a responsible builder, Hultquist takes a green approach to building wherever available, including energy- and water-efficient designs. The company has a focus on using sustainably harvested wood, low-flow water fixtures, and energy-saving windows.
Using the philosophy of maximizing square footage for the customer, Hultquist has created various communities for condominiums and houses.
Hultquist Homes Additional Information
Year Established: 1980
Price Range: $400,000–$700,000
Areas Served: Anchorage
Watermark
Recognized as one of the <a href="http://www.homebuilderdigest.com/the-best-ranch-home-builders-in-the-us" target="_blank">best builders of ranch homes in the U.S.</a> by Home Builder Digest, <a href="https://watermarkalaska.com" target="_blank">Watermark</a> is focused on bringing a modern design to construction. The company has a proven track record of working with the buyer and architect to provide the future homeowner with the domicile they desire. Since 2002, owner Josh Gifford has been providing custom homes, renovations, additions, and remodeling to the Anchorage community.
Business owners and investors may also want to take advantage of Watermark's services for multifamily housing units for rentals or commercial building projects. In 2015, the company completed the <a href="https://anthc.org/news/koyukuk-celebrates-newly-constructed-community-clinic/" target="_blank">Koyukuk Health Clinic</a>, which provides a medical lab, pharmacy, telemedicine station, and trauma treatment center for the Koyukuk community.
Watermark Additional Information
Year Established: 2002
Price Range: $500,000–$750,000
Areas Served: Anchorage
Architecture Styles: Traditional, Stuckagain Modern, Rustic Modern, Ranch, Craftsman, and Modern Multi-Family
MGJ Building Group
<a href="http://mgjbuilders.com/" target="_blank">MGJ Building Group</a> was created in 2012 by Moises Gutierrez Jr. following comprehensive experience working at other firms. In less than a decade, the company has crafted an excellent reputation for quality renovations and custom homes. Less than three years after opening, the company earned more than $20 million in sales. By June 2018, the organization completed its 50th custom-built home.
Along the way, MGJ won several awards, including the People's Choice Award from the Anchorage Home Builders Association and Anchorage Builder of the Year. They can help with land selection and acquisition, investment property development, bespoke homes, and commercial properties.
MGJ Building Group Additional Information
Year Established: 2012
Price Range: $565,000–$1,200,000
Areas Served: Anchorage Metro
Build Your Perfect Home in Anchorage
Custom-made homes provide the homeowner with exactly the details and amenities most important to them. In Anchorage, these home builders are among the first choices for potential owners wanting to build their dream homes in <a href="https://www.akhomeshow.com/blog/best-places-to-live-near-anchorage/">places near Anchorage</a>. To learn more about where in Anchorage might be the <a href="https://www.akhomeshow.com/blog/best-neighborhoods-anchorage/">best neighborhood</a> to consider calling home, <a href="https://www.akhomeshow.com/contact/">contact Unity Home Group</a> of eXp Realty with AK Home Show at (907) 885-3300 to get in touch with local real estate agents who can help make your dreams of a home in Anchorage a reality.
2021-05-07T16:55:00-07:002021-05-17T10:29:02-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:3791Where Can You Go to Get a Home Inspector in Alaska?<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/1715/image/home-inspections-in-alaska.jpg" alt="Everything You Need to Know About Alaskan Home Inspections" />The home inspection is an important part of the home buying process. Without a home inspection, it can be difficult or impossible to tell whether the house home buyers are trying to purchase is a good investment. If you are a home buyer trying to buy a home in <a href="https://www.akhomeshow.com/communities/">Alaska</a>, then it is important to know where to look for a home inspector. These tips can help <a href="https://crosscountrymovers.com/house-hunting-tips/" target="_blank">home buyers find the right home</a> inspector to look at the home they would like to buy.
How to Find a Home Inspector in Alaska
Home inspectors in Alaska have specific requirements in order to practice their trade, including to pass their examination and obtain a $10,000 surety bond, liability insurance and a registered business license in the state. The bond and insurance help protect home buyers against damages if something goes wrong with their home inspection, so it's important to ensure the home inspector is properly credentialed.
Check State Listings American Society of Home Inspectors
The American Society of Home Inspectors publishes lists of home inspectors who have achieved a certain level of experience and credential. The <a href="https://www.homeinspector.org/" target="_blank">ASHI website</a> lists home inspectors by their location, so people seeking a home inspector within a certain area can do so.
Talk to Your Real Estate Professional
Another way a home buyer can find a reputable home inspector is to <a href="https://www.akhomeshow.com/blog/picking-a-real-estate-agent-what-to-look-for/">check with their real estate professional</a>. Real estate agents keep lists of home inspectors who work in their area, so even if the home buyer can't find someone on the ASHI website, they can still get a home inspector to come to the property they would like to purchase.
What Does a Home Inspector Do?
It is helpful, when hiring a home inspector, to know what the home inspector can be expected to do. Home inspectors perform an in-depth visual inspection of the various systems in the house, including the plumbing, electrical system, roof, and more. Home inspectors only perform visual inspections, so if the problems in the home are buried in the walls, the home inspector may never find out.
Home inspectors may run the bathtub, check drainage in sinks and in showers, and may walk throughout the home, from the basement to the attic. When they are done with the inspection, home inspectors write a report for the home buyer to read and study.
What Does a Home Inspector Not Do?
Home inspectors do not usually inspect chimneys, sewers, <a href="https://www.akhomeshow.com/blog/buying-a-home-with-a-septic-system/">septic tanks</a> or anything in the walls or on the roof. While the home inspector may find some problems in the house by turning on and off devices, and by poking their heads in some unusual spots, home inspectors do not do anything invasive.
Work with Your Real Estate Professional
If you are a home buyer who would like to purchase a home in Alaska, work with a real estate professional. Working with a capable real estate professional can help ensure that your home buying experience will go well. Your real estate agent can give you information about which home inspectors are best, and what other steps need to be taken through the escrow process.2020-05-06T12:57:00-07:002021-06-28T07:02:10-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:3792Best Appraisers for Your Home Sale in Alaska<img style="display: block; float: right; margin-bottom: 30px; margin-left: 15px; width: 475px;" src="https://assets.site-static.com/userfiles/1715/image/appraisers-in-alaska.jpg" alt="Best Real Estate Appraisers in Alaska" />Anyone who is purchasing or selling a home knows their entire deal will hinge on the home appraisal. In Alaska, the best home appraisers in the state will evaluate every aspect of the home before determining its property value.
These are the best appraisers for your home sale in <a href="https://www.akhomeshow.com/communities/">Alaska</a>:
Appraisal Co of Alaska LLC
Address: <a href="https://www.google.com/maps/place/Appraisal+Co+of+Alaska+LLC/@61.1815618,-149.8921197,17z/data=!3m1!4b1!4m5!3m4!1s0x56c897e9f1ba87f3:0xa80fbd753dc194ce!8m2!3d61.1815592!4d-149.889931" target="_blank">Appraisal Co of Alaska LLC, 341 W Tudor Rd, Anchorage, AK 99503</a>
<a href="https://www.appraisalcompanyofalaska.com/" target="_blank">Appraisal Co of Alaska LLC</a> is a real estate appraisal firm that is based out of <a href="https://www.akhomeshow.com/anchorage-homes-for-sale/">Anchorage</a>, Alaska. The qualified team of real estate appraisers who work at this company have many years of combined professional experience, and they are known for providing accurate real estate valuations in a short amount of time. They specialize in providing appraisals for a variety of real estate transactions, including primary and secondary mortgages, refinances and private mortgage insurance removal. Real estate agents and their clients appreciate working with this company because they offer online status reports as well as electronic delivery of appraisals.
Appraisal Associates of Alaska
Address: <a href="https://www.google.com/maps/place/Appraisal+Associates+of+Alaska/@61.1975978,-149.8717474,17z/data=!3m1!4b1!4m5!3m4!1s0x56c897c9f52ec373:0x91ebcbd26f380194!8m2!3d61.1975952!4d-149.8695587" target="_blank">Appraisal Associates of Alaska, 750 E Fireweed Ln #101, Anchorage, AK 99503</a>
<a href="http://www.aaofalaska.com/" target="_blank">Appraisal Associates of Alaska</a> is another Anchorage appraisal company that specializes in providing real estate valuations for both commercial and residential transactions throughout various regions in the state. They have a team of appraisers that will travel throughout Anchorage as well as to the Matanuska Susitna Borough, the Valdez-Cordova Borough and the <a href="https://www.akhomeshow.com/kenai-homes-for-sale/">Kenai</a> Peninsula Borough. The company has been serving the community for more than 35 years and offers a variety of products and services. Its fees vary based on the type of form needed and the complexity of the property being appraised.
Alaska Appraisal & Consulting Group
Address: <a href="https://www.google.com/maps/place/Alaska+Appraisal+%26+Consltng/@61.2080366,-149.8882492,17z/data=!3m1!4b1!4m5!3m4!1s0x56c897d32a50c8b9:0xc0ebf9a3cbba78b!8m2!3d61.208034!4d-149.8860604" target="_blank">Alaska Appraisal & Consulting Group, 203 W 15th Ave #206, Anchorage, AK 99501</a>
<a href="https://www.akacg.com/" target="_blank">Alaska Appraisal & Consulting Group</a> is a locally owned firm that has two offices in Anchorage, and both serve the entire state of Alaska. Alaska Appraisal & Consulting Group offers a wide range of appraisal and consulting services, including commercial appraisals, residential appraisals, appraisals for rural property in Alaska and property consulting services. People appreciate working with this company because of its intimate team of qualified professionals who are known for providing their clients with personalized services throughout the appraisal process. The company is passionate about creating and maintaining sustainability throughout the state of Alaska.
Affiliated Appraisers of Alaska
Address: <a href="https://www.google.com/maps/place/Affiliated+Appraisers+of+AK/@61.1956153,-149.8765924,17z/data=!3m1!4b1!4m5!3m4!1s0x56c897c56c0392cd:0x74afe473044d32c9!8m2!3d61.1956127!4d-149.8744037" target="_blank">Affiliated Appraisers of Alaska, 501 W E Northern Lights Blvd Suite 201, Anchorage, AK 99503</a>
<a href="https://www.affiliatedappraisersak.com/" target="_blank">Affiliated Appraisers of Alaska</a> is a full-service appraisal firm located in Anchorage serving the community since 1974. This firm specializes in providing full-service property valuations for commercial and residential real estate transactions. While it is based in the city of Anchorage, the firm will provide property valuations for those located in the city as well as in Matanuska Susitna Borough, Bethel and other communities in the surrounding region. The small team of professional appraisers who work at this firm have the experience needed to provide reliable appraisals to their clients.
Alaska Real Estate Appraisal
Address: <a href="https://www.google.com/maps/place/Alaska+Real+Estate+Appraisal/@61.6029175,-149.2368921,17z/data=!3m1!4b1!4m5!3m4!1s0x56c8e1cdee6bf827:0xcbd589dbe3380f53!8m2!3d61.602915!4d-149.2347034" target="_blank">Alaska Real Estate Appraisal, 8481 E Queensboro Ave, Palmer, AK 99645</a>
<a href="https://www.alaskarealestateappraisal.com/" target="_blank">Alaska Real Estate Appraisal</a> is a company based out of <a href="https://www.akhomeshow.com/palmer-real-estate/">Palmer</a> that features a team of qualified professional appraisers who can provide property valuations for residential transactions in the surrounding region. This company offers free quotes that will provide more insight into what the appraisal will cost and how long the turnaround will be. Additionally, this company features convenient online ordering, which makes it easy for real estate agents and their clients to schedule the appraisal they need for their transaction. This company services all of Matanuska Susitna County.
Alaska residents who are interested in buying or selling a home will find that their real estate agent can tell them more about the best appraiser for their home sale. To learn more about buying or selling a home in Alaska, contact an experienced local real estate agent today.2020-05-05T13:00:00-07:002020-06-15T11:25:34-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2788What to Know About Living in Age-Restricted Housing
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-to-know-about-age-restricted-communities.jpg" alt="Important Things to Remember About Age-Restricted Communities" />As life progresses, homeowners may realize their current <a href="https://www.akhomeshow.com/big-lake-homes-for-sale.php" target="_blank">Big Lake AK home</a> isn't meeting their current needs, especially as they age. One of the solutions homeowners can turn to as they get older is to move into an age-restricted community where the housing is made with their needs in mind and they can be around other residents who are their age. Here are some things all home buyers need to know before moving into an age-restricted community.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Age-Restricted Communities May Have Child-Free Policies
For most senior home buyers looking for an age-restricted community, the lack of residents in a younger age demographic than theirs is a draw. However, if there are younger members in your household, or if you want to have children or grandchildren visit frequently, it's important to read up on the by-laws of the community before making a purchase. Some age-restricted communities have tight regulations on how long someone who doesn't meet the age criteria can stay, which can make the rules an important factor when planning visits or if there's a major disruption in your family.
For some home buyers, one of the selling features of an age-restricted community is how no one under a certain age is permitted to live there. However, it's important to remember that many of the community's members may be parents and grandparents, so visits from families are to be expected. While children and younger adults may not be allowed to live there, they will still be there on occasion in order to visit their loved ones.
Communities in Warm Areas Have Seasonal Residents
If an age-restricted community is located in a warm area, there's a very good chance that a portion of the residents will be gone for part of the year. <a href="https://www.kiplinger.com/slideshow/retirement/T037-S003-retirement-tips-for-snowbirds/index.html" target="_blank">"Snowbirds," as they're often referred to</a>, will have two homes: one where they'll spend the warmer months of the year, and one where they spend the cold months. When visiting an age-restricted community, be sure to ask what portion of residents are seasonal to get a better idea of how busy the community is when everyone is there.
Communities with More Amenities Have Higher HOA Fees
Another reason people love age-restricted communities is because they usually offer a variety of different amenities to the residents. From pools to exercise equipment to tennis courts to walking trails, the amenities a community provides will differ from location to location. It's important to note that communities with more amenities will often require higher <a href="https://www.akhomeshow.com/blog/home-buyers-guide-to-hoas/" target="_blank">Homeowners Association</a> fees to fund the cost of operating those amenities. Prospective residents need to ask about how much the HOA fees are and how often they're due at every community they visit. HOA fees can often make or break if someone can afford to live in a community, but if access to amenities is important, the cost may be worth it.
All Age-Restricted Communities are Different
Some people are drawn to age-restricted communities because they can offer a more targeted experience for senior residents, such as a community for golf enthusiasts primarily offering a golf course as their star amenity. If a buyer is looking for a specific type of community, there may be one out there that meets their needs. But if a buyer is looking for a more general community, they need to look to make sure it offers the sort of amenities they're looking for so they don't accidentally end up in a community that it trying to cater to a specific demographic that they aren't part of.
An age-restricted community can be a great place to live for interested buyers who are ready for that sort of lifestyle shift. Before fully committing to moving into one of these communities, buyers need to be sure to read all the information pamphlets and fine print to ensure that they're moving into a community that truly fits them.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2019-08-28T08:04:00-07:002020-06-08T11:51:07-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2783The Importance of Home Appraisals
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-is-a-home-appraisal.jpg" alt="Home Appraisal Basics" />What is the value of a home? Buyers and sellers may find that a home is worth significantly less than what was expected based on a new home appraisal. While a few intrepid buyers may choose not to get a home appraisal, it is generally useful for all parties involved in the <a href="https://www.akhomeshow.com/first-time-home-buying.php" target="_blank">home buying process</a>.
Home appraisals are a critical service often performed during the home buying process. It can help a potential buyer know of major issues of a home or be used to assess its value. What should a homebuyer realize about a home appraisal?
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
What Is a Home Appraisal?
A home appraisal serves an objective opinion of the value of a home and is often a contingency when closing on a home. It comes into play with purchase-and-sale transactions and refinance transactions. Used to determine that a contract price for a home is appropriate, it helps homeowners not borrow more than they should for a property. The home is assessed considering factors such as the condition and features of a home, as well as its location.
Those who will be financing the purchase of a home with a lender are generally required to have a home appraisal performed on a property. The home appraisal protects lenders when it comes to recouping money lent to a borrower should a borrower default. Cash buyers may be able to buy a home without a home appraisal, although it is a risky move.
As an initial step in the <a href="https://www.frameworkhomeownership.org/blog/the-home-closing-process-in-10-steps" target="_blank">closing process</a>, an appraisal is also a tool for potential buyers. A low appraisal can give a buyer the means to ask for a lower price from the seller. However, a seller may also want to get another appraisal performed when they feel that the first was inaccurate.
Who Pays for an Appraisal?
Although a home appraisal benefits lenders and buyers, the borrower will be responsible for paying for the appraisal. This is not an inexpensive service and may run several hundred dollars. An appraisal that comes in significantly below the contract price may cause delays in the closing process. The majority of appraisals do come in at or around the contract price, allowing the closing process to proceed. Some may seek a second appraisal to get the value needed to proceed with a home purchase or sale.
How Is Value Determined?
Real estate appraisers are licensed or certified to assess the value of a <a href="https://www.akhomeshow.com/wasilla_real_estate.php" target="_blank">Wasilla home</a>. There are multiple factors which need to be considered. They include recent comps, current market trends, amenities, square footage, number of bathrooms and bedrooms, and the condition of the interior and exterior of the home. Needed repairs can decrease the value of a home. An appraisal is a visual inspection and while thorough, may not uncover every defect. The appraiser uses a report, offers their analysis and makes a conclusion based on observations.
There are some factors that a seller has little power to influence. The local market and recent comps can influence the assessed evaluation and an owner of a well-maintained home can see its perceived value fluctuate in a changing market. A home's value may also be negatively impacted by numerous short sales and foreclosures in the area. One approach to combat a low appraisal is to provide evidence that a home is in better condition than the distressed homes. A seller may also choose to put off selling their home until the market improves in the hope of getting higher offer prices from potential buyers.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2019-07-10T08:00:00-07:002020-06-08T11:56:24-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2782All About Adjustable vs Fixed-Rate Mortgages
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/the-difference-between-adjustable-and-fixed-rate-mortgages.jpg" alt="A Look at Adjustable vs. Fixed Rate Mortgages" />Adjustable rate mortgages (ARM) used to be all the rage during the housing boom. As times changed, favor went to fixed rate mortgages with their steady interest rates across the life of the loan. Despite the drop in popularity, homebuyers can still acquire an adjustable rate mortgage from their lender. They must go into this process well-informed about their options to make the best financing decision for their needs. To help them get started, here's what homebuyers need to know about adjustable versus fixed rate mortgages.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
Adjustable Rate Mortgages Start with a Low Interest Rate
The most attractive thing about adjustable rate mortgages is that they start with a low <a href="https://www.akhomeshow.com/blog/all-about-mortgage-interest-rates/" target="_blank">interest rate</a>. The initial interest rate usually falls far below the market rate to entice homebuyers to choose this option over a fixed rate mortgage. The low interest rate gives homebuyers an opportunity to pay down their principle before it increases. Until this brief period ends, the mortgage payment remains low as well.
After a Set Amount of Time, the Interest Rate Increases
Adjustable rate mortgages only remain at the same interest rate and payment amount for a predetermined amount of time. After that period ends, the lender can make adjustments that affect what homeowners pay each month – and how much goes to the principle.
Lenders offer many different adjustable mortgage products that allow for a certain number of years before changes, then so many changes per year. The most popular products are 3/1, 5/1 and 7/1 ARM loans. With these loans, homeowners can expect to keep their initial rate for three, five and seven years, respectively. After that, the interest rate and other terms can change once per year.
When the interest rate changes, payments tend to increase, often substantially. Homeowners can prepare for these changing rates by watching for an estimate card in the mail. This card will come from the lender and indicates what the new rate and payment amounts will be.
Even If the Interest Rate Stays the Same, Payments May Increase
Even when interest rates do not dramatically increase, homeowners may still receive notice of an increase to their mortgage payments if they have an interest-only ARM instead of a hybrid loan. With interest-only adjustable rate mortgages, homeowners only make payments toward the interest during the initial period. As homeowners start to pay off the principle in addition to the interest, these loans see an increase to the monthly mortgage payment to cover that amount.
Decreases in Interest Rates Do Not Always Result in Lower Payments
With adjustable rate mortgages, borrowers can potentially experience a decrease in interest rates applied to their loan. Although this decrease will help homeowners pay less over the life of their loan, it does not guarantee a drop in monthly payment amounts. In fact, payments almost never return to their pre-adjustment range, leaving homeowners to budget in steadily-rising mortgage costs.
To avoid these fluctuations, homebuyers can elect to go with a fixed rate mortgage instead of an adjustable loan. Mortgage lenders to gauge the market to set a fair and competitive interest rate for their borrowers. They also use <a href="https://www.investopedia.com/terms/r/riskbased-pricing.asp" target="_blank">risk-based pricing models</a> to personalize the rate to each borrower. They use a number of factors, such as the credit score and income-to-debt ratios, to dial in the ideal interest rate.
Once they identify the custom interest rate, homebuyers have a chance to review it and compare with the rate offered by other lenders. Upon taking the loan, borrowers can expect to see that same interest rate as long as they have that mortgage.
This Does Not Mean Mortgage Payments Will Not Change
More than just the interest rate affects the total monthly payments owed on the mortgage. Even with a fixed rate mortgage, borrowers can expect to see their payments change from year to year. In most cases, these payment adjustments result from a change in property taxes and homeowner's insurance.
Lenders do not usually provide a significant amount of warning before these changes. Borrowers need to stay on top of their budget and allow for last minute changes to manage the fluctuations without strife.
There are Benefits to Going with an Adjustable Rate Mortgage
Although a bit more risky than fixed rate loans, adjustable rate mortgages offer benefits to savvy borrowers. Since <a href="https://www.akhomeshow.com/palmer-real-estate.php" target="_blank">Palmer new home</a> borrowers take on the risk of interest rates changing over time, lenders tend to give them a much lower rate than the market value. This gives them a head start in paying down the total amount owed on the mortgage.
If they play their cards right, they can pay down an enormous portion of the principle before the rate changes. When the interest rate increases, it will only act on the remaining mortgage balance, potentially keeping costs low over the life of the loan.
In the end, however, it is the fixed rate mortgage that offers the most stability. Since people cannot tell what the future will bring, fixed rate loans remain the top choice for homebuyers in need of a mortgage.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2019-07-03T15:50:00-07:002020-06-08T11:56:50-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:277815- or 30-Year Mortgage: Which One Is Right for You?
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-are-the-different-term-lengths-of-mortgages.jpg" alt="30 and 15 Year Mortgages: What You Need to Know" />Home buyers have many decisions to make, and among those decisions is which mortgage is right for them. <a href="https://www.akhomeshow.com/blog/a-home-buyerx27s-definitive-guide-to-traditional-mortgages/" target="_blank">Traditional mortgages </a>come in different types and have different repayment schedules. Understanding the different repayment schedules and how they affect the buyer can help the buyer decide which type of mortgage is right for them.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
How Standard Mortgages Work
A mortgage is a home loan with a fixed repayment schedule. If the mortgage has a fixed rate, all payments are equal over the life of the loan. The loan is finished when the principal and interest equals zero.
Difference Between a 15- and 30-Year Mortgage
The primary difference between a 15- and 30- year mortgage is the rate at which the mortgage is paid off. A 30-year mortgage is divided into 360 payments of equal amounts. A 15-year mortgage is 180 payments of equal amounts.
Because the 15-year mortgage is paid off in half the time, the payments are significantly higher. The interest rate, however, is lower for a 15-year mortgage. Home buyers who are able to afford a 15-year mortgage pay less money for their home over the life of the loan.
Why It's Harder to Get a 15-Year Mortgage
One of the things that affects what kind of mortgage a buyer can get is the <a href="https://www.investopedia.com/terms/d/dti.asp" target="_blank">debt-to-income ratio</a> (DTI). Debt-to-income ratio is the buyer's monthly debt payments divided by their gross monthly income. Most lenders will not approve any loan that pushes the buyer's DTI above 43%.
Since a 15-year mortgage has significantly higher monthly payments, not all home buyers can qualify this type of repayment schedule. The buyer must have a low DTI and a high monthly income in order afford this type of loan.
How to Choose the Right Mortgage for You
15-year mortgages save home buyers money. Over many years, home buyers who have 15-year mortgages can save thousands of dollars. However, 15-year mortgages are not right for everyone. Even if they can qualify for this type of loan, sometimes the higher monthly payment requirements can cause financial strain for the buyer.
A buyer who would like to find out whether a 15-year mortgage is right for them can do so by talking to a lender. A good lender can tell the home buyer how much they would be expected to pay each month if they had a 15-year mortgage, and whether they would even qualify for this type of mortgage. Buyers who are concerned about their ability to pay back a 15-year mortgage can create a budget to help them decide. If the buyer is unable to realistically fit payments for a 15-year mortgage into their budget, then a 30-year mortgage is likely more appropriate.
Work with a Reputable Lender and Real Estate Professional
If you're a <a href="https://www.akhomeshow.com/north-pole-homes-for-sale.php" target="_blank">North Pole home buyer</a>, work with a reputable lender and real estate professional. By aligning yourself with a team of experienced professionals, you can make better decisions during the home buying process. Your lender can help you decide if a 15-year mortgage is affordable for you, while a real estate professional can help you find a home that will fit in your budget.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2019-06-05T07:55:00-07:002020-06-08T11:58:44-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2777All About Mortgage Interest Rates
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/all-about-mortgage-interest-rates.jpg" alt="Mortgage Interest Rates" />The average homebuyer will finance their purchase with a <a href="https://www.akhomeshow.com/blog/a-home-buyerx27s-definitive-guide-to-traditional-mortgages/" target="_blank">home mortgage loan</a>. While such a loan can make homeownership possible, some loans obligate borrowers to high interest rates. This can mean that a homeowner will need to pay back significantly more to the cooperating lender over the life of a loan.
As a homeowner will need to make monthly payments that include the principal and interest on a loan, it is helpful to know how to get the most affordable mortgage interest rates available. Many looking to take out a conventional home loan from a lender will find it beneficial to get clarity on mortgage interest rates in general and the factors that can influence them.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
What Is a Mortgage Interest Rate?
The amount of interest to be paid on a mortgage loan is the mortgage rate or Annual Percentage Rate (APR). Rates can depend on the length of time one has decided to pay back the loan, such as 3.91 percent for a 15-year fixed loan or 4.39 percent for a 30-year fixed loan. This is not the only factor to issue a mortgage interest rate. The type of loan matters as well. Mortgage rates can be fixed, staying the same for the life of the loan, or may vary, as with an adjustable-rate mortgage loan.
Potential borrowers should feel empowered to shop around. Mortgage rates can differ by lender and a borrower who can get approved for the lowest comparable mortgage rate can pocket thousands of dollars while still paying back their entire mortgage loan. A percentage point or two can make a big difference for the average borrower. The mortgage interest rate should be one of the most important considerations for those financing a home purchase with a mortgage loan.
How Is Mortgage Interest Rate Determined?
There are factors that a borrower has control over that will serve to influence a lender's decision. Mortgage rates will be assessed based on the size of the loan and the credit score of the applicant. Those with high credit scores are believed to be more inclined to repay the mortgage loan. In response, the lender will offer a lower mortgage rate. It is possible for potential borrowers to get a free copy of their credit report. Addressing inaccuracies and paying down debt can make for a higher credit score and better mortgage loan terms.
Borrowers may default on a loan, creating risk for a lender. Borrowers who appear to fall into a high risk category are often offered higher mortgage rates. In this way a lender can quickly recoup the initial amount of a loan, creating more security for the lender and protecting their investment.
When Is a Good Time to Apply for a Mortgage Loan?
There are indicators that can make it more challenging for an applicant to find and be approved for a mortgage loan with a low <a href="https://www.bankrate.com/finance/mortgages/current-interest-rates.aspx" target="_blank">mortgage interest rate</a>. Individuals can observe how the prime rate changes. This rate shows the lowest average rate banks are willing to offer for credit. This prime rate may also be used as the prime rate for those borrowers with the best credit scores.
The 10-year Treasury bond yield is another way to know more about the market. Expect mortgage rates to increase when the bond yield rises. Potential borrowers may want to follow the changes in the prime rate and bond yield to decide when to apply for a mortgage loan for better rates.
Is It Possible to Benefit from a Tax Deduction?
Once closing on a <a href="https://www.akhomeshow.com/soldotna-homes-for-sale.php" target="_blank">new Soldotna home</a>, new homeowners have come to appreciate that mortgage interest is tax-deductible. Laws may have changed and certain caps may now be applied, however mortgage interest has long been one of the itemized deductions allowed for taxpayers. Deductions from mortgage interest have been taken on first or second home purchases, as well as rental or investment properties. A homeowner may be able to deduct the entire amount of mortgage interest paid when meeting specific criteria.
What Happens When Stretching Out Mortgage Payments?
Those interested in paying less every month toward their mortgage may want to lengthen the life of a loan. This can potentially reduce the amount of each payment but a borrower would generally be paying back more in interest to the lender. Approved borrowers may want to learn more about terms for refinancing a mortgage loan from their lender.
More to Learn
Potential borrowers may want to explore various loan options, as well as offers from multiple lenders. Banks and lenders may approve an applicant for a fixed rate or an adjustable rate loan. Having a predetermined mortgage interest rate for the life of the loan in a fixed rate loan may help those budgeting their finances. Individuals who do not qualify for a conventional loan may want to explore the terms, rates and conditions of FHA loans and VA loans.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2019-05-15T10:57:00-07:002020-06-08T11:59:24-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2776Understanding Debt-to-Income Ratio When Buying a Home
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-is-the-debt-to-income-ratio.jpg" alt="How to Calculate Debt-to-Income When Buying a Home" />When getting a mortgage to <a href="https://www.akhomeshow.com/blog/how-to-buy-a-home/" target="_blank">buy a new home</a>, banks and lenders look at many things. One of the items they look at is a borrowers debt-to-income ratio. The debt-to-income ratio (DTI) in home buying doesn't solely refer to the purchase price of the home compared to the buyer's monthly income. It's a way for lenders to quickly assess someone's entire financial history in one ratio. See how DTI can affect a home buyer's chances of being approved for a loan, and what buyers can do if they want to be a more competitive candidate.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
How It's Calculated
A DTI calculates total debt based on the following expenses:
Mortgage
<a href="https://www.investopedia.com/terms/p/propertytax.asp" target="_blank">Property taxes</a>
HOA fees
Student loans
Alimony/child support
Credit card bills
Car loans
After all official debt has been calculated, lenders will then compare that number to the total income of the buyer. Total income takes into account all sources of funds (e.g., monthly wages, real estate earnings, inheritance funds, etc.). DTI does not include the cost of home utilities, health insurance, or cell phone bills, but buyers should perform their own calculations before determining the price bracket for their housing search and their cap for interest rates.
What Lenders Look For
Lenders are ultimately attempting to safeguard themselves against default, so they're hoping to see as low a percentage as possible. The sweet spot is 36% (or lower). A buyer who unexpectedly loses their job may not be able to meet their mortgage payments and student loan obligations in the same month. Lenders aren't allowed to consider DTI when it comes to the terms (e.g., interest rates, etc.) of the loan, but they are allowed to consider it before approving or denying the loan. Whether income is coming from a trust or from a spouse's real estate investment, the ideal candidates will have several lucrative sources of income that they can rely on in case one disappears.
How to Manage a High DTI
DTI is an important number when it comes to loan approval, but it's certainly not the only factor. Lenders look at everything from the buyer's credit score to their overall financial history before making a final decision. In fact, buyers with a DTI of 43% or higher may be able to secure a competitive rate if they understand the rules of lending.
One solution may be to seek out small creditors for a Qualified Mortgage, or to apply for a government-sponsored program (e.g., FHA, USDA, etc.). These mortgages give lenders legal protections in case a home buyer can't repay the loan. Lenders may allow for a DTI of 50% or even more if the buyer meets specific criteria. For example, a USDA loan is typically only available if the buyer wishes to purchase property in a more rural location, but the low rates and forgiving down payment rules may be enough to make the purchase worth it.
How to Improve a DTI
Avoiding new debt and paring down old debt will always be the most direct course to improve a DTI score. Paying debt will not only improve a DTI, but it can also boost a buyer's credit score into a different bracket. A buyer's credit score will have a lot to do with the interest rates a buyer is offered, so this is a smart approach that can improve the chances of getting the loan at the right terms.
When a <a href="https://www.akhomeshow.com/sitka-homes-for-sale.php" target="_blank">Sitka new home buyer</a> understands their DTI, they have a better chance of navigating a home purchase without a lot of surprises along the way. Eliminating debt before even applying for the loan can be the way for a buyer to secure the home of their dreams.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2019-05-08T09:29:00-07:002020-06-08T11:59:51-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:27746 Reasons To Buy Your Next Home In Anchorage, Alaska
<img src="https://assets.site-static.com/userfiles/1715/image/moving-to-alaska.jpg" width="950" height="577" />To truly understand what it's like to live in Anchorage, Alaska, you have to experience it. But there are many reasons to choose to settle down Anchorage, and we have laid out 6 top reasons to buy your next home in this gorgeous city.
Beautiful Landscapes.
Nature in Anchorage is like nothing you've seen before. With endless tree lines, mountain peaks that peak over 8,000 feet high, and bald eagles that are as common as a crow, you might think that you are in a national geographic documentary. If you are not spending your free time hiking and mountain biking through Kenai Fjords, the 3rd largest national park in the U.S, or taking a "flightseeing" trip over Alaska, you might want to just sit back and relax to watch the northern lights in your very own backyard. No matter what the time of year, there is always plenty to see and do in Anchorage.
Laidback Lifestyle
With nature at all sides, those in Anchorage enjoy a truly laidback lifestyle day to day. The people are chill and friendly, always willing to help their neighbors out. You may find that people just have more time to talk and connect with their neighbors, strengthening those bonds across the board. In fact, people do not rush from place to place, as they do in bigger cities. The wheels keep moving forward, of course, but without pushing people past their comfort zone. The results are staggering, with <a href="https://realestate.usnews.com/places/alaska/anchorage" target="_blank">above average quality of life</a> and desirability ratings, as reported by U.S. News.
The beautiful natural environment encourages people to step away from it all and recharge at their leisure. The ability to take nature retreats at your leisure gives ample opportunities to unwind and release stress. Even during the long winters, it is possible to take excursions outdoors to break free from the stressors of daily life. Many residents even ride their bikes to and from work year-round to experience the beauty of nature and use physical activity to maintain low stress levels. With this winning combination of friendly people and stress-busting environments, it is much easier to remain low-key and serene while navigating the challenges of daily life.
Adventure, Adventure & more Adventure!
Some people might prefer to visit a wildlife preserve and view animals in their natural habitat, while others may choose to hop in their car and drive through endless scenery with no destination in mind. If that doesn't sound like something you want to do, you can always catch the water taxi and spend a few days hiking on the glaciers of Alaska. When spring and summer roll around, Anchorage boasts some of the nicest golf courses in Alaska. Living here will certainly give you a chance to expand your collection of <a href="https://www.lastmingear.com/gear-guides/" target="_blank">hiking gear</a> and whether it's hiking on glaciers or playing sports, Anchorage is sure to keep your adventurous side satisfied.
Affordable Living
Anchorage real estate is in great shape these days. Most big cities have a high cost of living with the demand of people trying to find a home, but in Anchorage, you can find great family homes starting in the $200K - $300K range. With the cost of living being very affordable these days, Anchorage is one of the most desired places in Alaska to raise a family.
Family Oriented City
With an average age of the population around 30, it's easy to see why Anchorage is attracting so many industrial investments. Anchorage is full of prosperity and stability, making it an easy choice to raise a family in this beautiful city. In addition, there are numerous family-friendly things to do in Anchorage. Visit the shopping malls, explore environmental trails or maybe take in a hockey game. If you're feeling particularly adventurous, you could take the family to see the Iditarod, an annual long-distance dog sled race that races from Anchorage to Nome. Anchorage, Alaska offers many amenities and events all year round that will entertain the entire family!
Growing Economy
Anchorage young and growing, offering a home for all ages where you can live close to work, make a competitive salary, and have a wide variety of entertainment options. With an unemployment rate of only 5.3% in 2014, Anchorage is a land of employment opportunity. Jobs continue to be created each year in the retail and service industries, and the trend for economic growth is expected to maintain momentum. The time to invest in Anchorage is now!
2019-04-22T11:33:00-07:002020-06-08T12:03:41-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2773Red Flags to Look For When Buying a Home
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-to-watch-for-when-home-buying.jpg" alt="3 Red Flags Buyers Need to Know When Buying a New Home" /><a href="https://www.akhomeshow.com/blog/homeowner-tools/" target="_blank">Buying a new home</a> is a big decision for anyone, and all buyers want to be confident that they’re getting a good home and aren’t being taken advantage of. It’s good for all buyers to know the different red flags that may occur when looking for a home to buy so they can avoid bad deals before they occur. There are many little things that all add up and can potentially mean a home isn’t as it appears to be. Here are some of the different red flags home buyers need to be on the lookout for to protect themselves from a bad investment.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
1. There are Strong Artificial Smells in the Home
Air quality is something that homeowners worry about when preparing to show a home because no one wants to live in <a href="https://www.realtor.com/advice/home-improvement/odor-removal-home-buyers/" target="_blank">a home that smells bad</a>. However, if a home smells very strongly of artificial perfumes and air fresheners, this could be a red flag. For example, the smell of cigarette smoke can be very difficult to remove from a home, and if a homeowner is unable to remove it before selling, they may instead just try to hide it with stronger, more pleasant fragrances. For the buyer, this means having to deal with the smell on their own, which can be time consuming, expensive, and something they didn’t know they were getting with the home.
2. The Price is Unusually Low
The saying goes that if something is too good to be true, it is, and this extends to homes as well. When a homeowner reduces the price of their home drastically, it can be a big red flag. Drastic price changes can mean that the homeowner is desperate to sell the home, and if it’s been on the market for a long time before the change, that can be a sign that there is something wrong with the home that prevented it from being purchased already. If a homeowner finds a home that is a fantastic deal and wants to purchase it, they need to be aware of the risk involved and ensure that they have it thoroughly inspected before committing to it.
3. The Current Homeowners Won’t Show Permits
When making additions to a home or doing large remodeling projects, homeowners need to get a permit in order for it to be done legally. However, permits can be expensive, and some homeowners choose to go forward without them. Buyers should always ask to see the permits for any sort of remodel or addition made to the home, and if the owner doesn’t can’t show them, it means a lot of problems for the next owner of the home.
Not only is the <a href="https://www.akhomeshow.com/kenai-homes-for-sale.php" target="_blank">Kenai new home buyer</a> responsible for getting the permits should they choose to purchase the home, which can be expensive, but they’ll have to face other consequences that can potentially be drastic. For instance, the city can order that the addition needs to be torn down completely, or the homeowner may be ordered to re-remodel in order to fix mistakes and ensure that everything is up to code. Plus, if something happens to the home because of the addition and the homeowner can’t produce a permit, insurance will often use that as a way to refuse service.
There are many red flags to consider when looking for a new home to buy. These are just some of the different examples, but be sure to talk to a real estate agent when looking at homes and ask them for advice, because no one wants to be stuck with a home that wasn’t as advertised.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2019-04-17T09:43:00-07:002020-06-08T12:04:24-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2662Multiple Offers: How to Sweeten the Deal
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/candy_sugar_sweet.jpg" alt="How to Sweeten a Multiple Offer Situation When Buying a Home" />This time of year, the snow starts to thaw and the real estate market in Alaska gets into high gear. Many times buyers find themselves competing with others who want to buy the same home. If this is your first time to be in a multiple offer situation, it can be a little unnerving. So let's take a little bit of creativity and see if we can make your offer more appealing.
These days, buyers are choosing their new homes from a much smaller inventory. And demand is strong. The net effect for homes that are in great condition and in desirable areas is that sellers will be often considering several offers at once. If you are a potential buyer trying to get your offer considered ahead of others, here are some tips:
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
It's Not Only About The Price
This is often key to winning against other offers. Often times potential buyers will get into a "bidding war" on the property. Find holistic ways to make your offer more attractive and you may even be able to buy a home at a more reasonable price.
Flexible Inspections And Shorter Deadlines
Oftentimes you can get inspections done more timely than other buyers put into their offers. 30 days sounds a lot less serious than 14 days. This sends an important signal to sellers. It says "I am serious." "Let" Sometimes a larger deposit or earnest money is another way to communicate your seriousness to a seller. Both of these techniques are simple. They do not cost anything. And yet they help sellers evaluate your offer more clearly and in a better light.
There Is NO Substitute For Experience
It comes into play with this. We know the Alaska real estate market and what sellers are typically being offered and we can help position your offer in the best light possible. This means that we can get creative in an effort to make your offer stand out without having to resort to price.
Get Pre Approved
This is almost an absolute. It is almost like being a cash buyer and it separates you from other offers. It plays on the seller's desire to have a bird in the hand versus two birds in the bush. Without it, it is likely that you will pay more.
Writing A Sweeter Offer
This is where our teams experience can help you. We have the experience in helping you write an offer that protects you adequately but does not add a bunch of unneeded language that lengthens the offer and may in some cases feel threatening to the seller. You can say things in a way that spells out the terms of the deal without undue complication and that allows the seller to sense your sincerity.
Your Contingencies Can Affect The Appeal Of Your Purchase Offer
The contingencies are the buyer's opportunities to back out of the purchase contract. Buyers insert the contingencies into the purchase contract because they want to protect themselves. However, not all contingencies are necessary. Removing some contingencies from your purchase offer can make your offer stand out among the competition. Below are some examples of <a href="https://www.investopedia.com/articles/personal-finance/111513/home-sale-contingencies-what-buyers-and-sellers-need-know.asp" target="_blank">common home buying contingencies</a>:
Financing contingency. This contingency allows the home buyer to cancel the purchase if their loan does not fund.
Appraisal contingency. If the home does not appraise for a price that is at or above the purchase offer, the appraisal contingency allows the home buyer to renegotiate or cancel the deal.
Home inspection contingency. This contingency allows the buyer to renegotiate or cancel the home purchase offer if the home inspection reveals serious problems with the home.
Are you paying in cash? If so, you can waive the financing contingency. Waiving the appraisal contingency may also be a smart plan. Are you confident in the home's structural integrity? Then you may also be able to waive the home inspection contingency.
Be cautious when waiving contingencies. For example, if you're not paying in cash, waiving the financing contingency could result in a loss of your earnest money, if your loan does not fund.
Talk to your real estate professional to decide which contingencies you need in place to protect you during the home purchase process. Your real estate professional can provide advice that can help you avoid a problem while you're in escrow.
Want help with more ways to avoid to a bidding war? That is what we do. Let us represent you and help you get that perfect home at a price you can live with. Give us a call today. We provide this to Alaska home buyers each and every day.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2019-03-25T14:29:00-07:002020-06-15T09:17:05-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2769What First-Time Homebuyers Need to Know About Property Taxes
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/all-about-alaska-property-taxes.jpg" alt="An Introduction to Property Taxes for New Homebuyers" />Buying a home is an exciting experience, one that is new to many home buyers. One important item home buyers should be aware of when <a href="https://www.akhomeshow.com/blog/how-to-buy-a-home/" target="_blank">buying a new home</a> are property taxes.Owning a home means that you will be paying an annual property tax, whether or not there is a mortgage on the home or not.
The amount of property taxes assessed on a home depend on the area where the home is located. Some <a href="https://www.thebalance.com/best-and-worst-states-for-property-taxes-3193328" target="_blank">states and location have lower property taxes than others</a>, while homeowners in other areas will need to pay much more to live in a comparable home. Homeowners throughout the country have no way to avoid property taxes, although in certain situations, they may defer or reduce them. What do new homeowners need to realize about property taxes before starting on their home search?
For informational purposes only. Always consult with a certified tax expert, attorney or real estate professional before proceeding with any real estate transaction.
Property Taxes and Assessment
The municipal or local government of the area will generally perform the assessment and determine the tax amount that is tied to the perceived value of the property. Throughout the country, the formula is not the same with different variations depending upon the state or locality.
Potential buyers may want a better idea of how much they may need to pay in property taxes. They may want to ask current owners for a recent tax bill - though in many cases, your real estate agent will either know this information or can obtain it for you. However, the current owners may have been taking advantage of lower property taxes through one or more programs or exemptions. It is entirely possible that a buyer purchases a home and after the home is reassessed, be subject to higher property taxes. Another way to research the property tax on a specific property is to find useful details through the local assessor's office or go to their website when applicable.
Property Taxes Can Increase or Decrease
A new homeowner should be aware that significant upgrades to a home may increase the value of a home and result in higher property taxes. Homes that have received one or more home improvements prior to listing may not have been reassessed yet. Home improvements that could improve the value and increase property taxes for years to come include the addition of a bathroom or other home addition increasing the size of the home.
Property taxes may be reassessed when a <a href="https://www.akhomeshow.com/fairbanks-homes-for-sale.php" target="_blank">Fairbanks home is sold</a>, in addition to after the completion of home improvements or on a set schedule. Some homeowners find it useful to request a reassessment and may see their property taxes decrease. This route may also be helpful if a homeowner does not believe that the value of their property as provided to them is accurate. Keep in mind that homeowners always have the option of an appeal.
Property Taxes and Assistance
Senior citizens, veterans, disabled person and those who may be low-income may be able to benefit from some measure of property tax relief. Common forms of relief available to homeowners include:
Deferrals;
Credits or rebates;
Caps; and/or
A Homestead Exemption.
The amount of tax relief can vary. Those looking into a homestead exemption should be aware that it is offered in nearly every state. A tax credit or rebate has become more popular as home values have gone up. Financial circumstances may change for homeowners and it may become difficult to make property tax payments in full and on time. Deferrals may be useful as those who may not be able to make their full payments may be able to pay the remaining amount at a later period. These types of assistance may make it easier to make necessary property tax payments.
Property taxes are a part of owning a home. New home buyers should investigate property taxes on a potential home or seek the expertise of a qualified real estate agent for more information regarding real estate property taxes.
For informational purposes only. Always consult with a certified tax expert before proceeding with any real estate transaction.
2019-03-13T09:53:00-07:002020-06-15T09:22:50-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2739What You Need To Know About Buying and Selling Land
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/buy-sell-land.jpg" alt="Everything You Need to Know About Buying and Selling Land" />If you're new to the real estate business, buying and selling land can be mystifying. Knowing what to look for and how to get a good deal is important. It's also important to understand how buying and selling land is different from buying and selling a house. The following information can help.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
All About Buying Land
Whether <a href="https://www.thebalance.com/land-buying-tips-1798965" target="_blank">buying land</a> to build a house or a building, it's important to understand the basics. Knowing what to look for on the plot of land before getting started can help buyers get the right plot of land for their needs.
Have a Pre-Determined Want List
Buyers who know what they want in advance can more easily identify a good property for them. Factors to consider include:
Proximity to the road
Busyness of the street
Proximity to neighbors
Lot size
Number of mature trees
Soil quality
Proximity to water features
Proximity to the nearest town or city
Scenic qualities or views
Home buyers who know what they're looking for can avoid visiting plots of land that will be a waste of their time.
Ensure Land Is Zoned for the Development You Want to Pursue
Land zoning and usage restrictions can put a wrench in the works if they do not align with your plans for the property. You will need to explore the exact zoning regulations for the property parcel to ensure it allows for your development plans. The baseline zoning regulations should reflect whether the property was intended for residential, commercial, <a href="http://sanlive.com/little-farm-adventures/" target="_blank">farming</a> or rural use. Specialty designations exist, as well, for historical, environmental and aesthetic areas. In certain areas, the residential and commercial zoning may also have subtypes that limit the type of structure you can build on the land.
You must verify that all your development plans align with the zoning and usage restrictions to move forward with your project. If your structure does not comply with the zoning laws, you could end up with hefty fines and orders to meet regulations. Therefore, confirm that the property meets all your development needs before buying to save yourself time and money.
You can also <a href="https://realestate.findlaw.com/land-use-laws/zoning-changes-variances-and-more.html">request zoning changes</a> before you start working, but they are not guaranteed to be granted, especially if your project experiences much pushback from the public. If you want to pursue this matter before purchasing the property, you can place a clause in the purchase contract noting the approved waivers as a condition of the purchase. Make sure to include a cancel date within the contract verbiage to give yourself time to back out if zoning changes are not approved.
Plan to Get Tests Done
When buying a plot of land, it's important to <a href="https://www.nolo.com/legal-encyclopedia/before-buying-vacant-land-getting-environmental-assessment.html" target="_blank">perform environmental tests</a>. In addition, a survey can ensure that the boundaries of the land have been properly marked. Getting both inspections done before purchasing the land will help ensure that the purchase is right for the buyer.
Pay In Cash
Getting a loan for land can be difficult because banks don't generally loan money for land without a house. The house or building on a plot of land is the leverage that the bank needs to ensure that the buyer will keep repaying the loan. Often, this means that land buyers must pay for their home in cash. Some buyers are able to find a lender who will finance land, but this is less common.
All About Selling Land
Selling land can be a challenge because interested buyers can be hard to find. The process of selling land can be time consuming, especially if the plot of land is not close to a populated area.
Pick the Right Price
It's important to pick the right price when selling land. Many land owners find picking the right price to be a challenge, because it's hard to find comparable properties. Working with a real estate agent can help.
Stage the Land
For many landowners, staging is a matter of <a href="https://www.akhomeshow.com/blog/home-improvement-landscaping-to-sell/" target="_blank">keeping the property well trimmed and clean</a>. Land owners who want to sell their land must visit regularly in order to keep the property in tip-top shape for buyers.
Take Professional Photographs
Working with a professional photographer can help ensure that there are good pictures of the land for the real estate listing. Pictures of the property should show it in the property's best light.
Offer Financing
Landowners who finance the sale of the land may find it easier to find a buyer. It's helpful to work with a real estate professional and a lawyer to ensure that the paperwork for the financing is drawn up properly.
Work With A Real Estate Agent
If you're a <a href="https://www.akhomeshow.com/sitka-homes-for-sale.php" target="_blank">Sitka landowner</a> who would like to sell, or if you're a buyer who is looking for a plot of land, working with a reputable real estate agent is important. To get started, contact and interview reputable real estate professionals in your area.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2019-03-11T10:21:00-07:002020-06-15T09:23:36-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2727Tips for Buying Off-Grid Land
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/off-grid-land.jpg" alt="What Do Buyers Need to Know About Purchasing Off-Grid Land?" />As of 2018, a <a href="https://www.statista.com/statistics/535180/forecast-for-offgrid-solar-household-users-worldwide/" target="_blank">projected total of 62 million people</a> will live off the grid. Reasons for moving off-grid include wanting to be in touch with nature, increasing self-reliance and independence, reducing dependence on fossil fuels, enjoying greater freedom, and saving money. After making the decision to move off the grid, the first step is finding the right land for a container cabin or <a href="https://www.thormotorcoach.com" target="_blank">luxury motorhome</a>.
What Makes A Home An Off-Grid Home?
In the most literal sense, "<a href="https://www.greenbuildingadvisor.com/article/how-to-design-an-off-grid-house" target="_blank">off-grid</a>" refers to a home that is not connected to public utility infrastructures such as an electrical grid. For homesteaders living the lifestyle, the term means more than just finding alternate ways to power your home.
For most people, living in a self-sufficient way that is not dependent on any municipal services is what living off the grid is all about. With no municipal water, sewer, gas, electricity, or other utility services, homeowners are responsible for providing all of these things themselves.
As buyers search for the right plot of land for their homesteads, it's not a requirement that the land is completely disconnected from all utility services and be truly off the grid, only that the site be suitable for creating your own alternate, self-managed supply so as not to be dependent on the public system.
Check Local Laws and Property Taxes
Local laws and ordinances spell out what types and sizes of structures can be built in a given community. In many communities, ordinances actually specify a minimum size for dwellings; hence, a small cabin may be too small for the town. If this is the case, it's better to find out before buyers have purchased the land than once they have invested their savings.
Additionally, failure to start by checking the local laws could spell trouble partway through the project if the town refuses to issue a building permit because the proposed home violates a local ordinance.
Different communities have different tax rates, including <a href="https://www.strawhomes.com/learn-5-things-to-consider-when-buying-a-new-home/" target="_blank">property taxes</a> and school taxes. Many homesteaders overlook tax rates in the excitement of shopping for off-grid land. This is a big mistake since higher tax rates mean more money out of pocket every year. Buyers should investigate tax rates in communities where they are thinking of living, and find out whether those communities offer farm exemptions, which can reduce tax liability if they farm their new land.
Once buyers understand the laws, they can determine the type of home they want and obtain plans. A mortgage lender may refuse to offer a loan without reviewing the building plans, so it is essential to start here.
If Needed, Find a Mortgage Lender That Specializes in Land Loans
Unless buyers have enough cash on hand to purchase land and make property improvements they will need a mortgage. Shopping for a land mortgage differs somewhat from <a href="https://www.akhomeshow.com/blog/a-home-buyerx27s-definitive-guide-to-traditional-mortgages/" target="_blank">shopping for a conventional one</a>.
When a mortgage lender extends a loan, they typically use the home as collateral. If the buyer walks away from the home, the bank will be able to sell the property to recoup their losses. There's no such guarantee with a land purchase, which means some banks are <a href="https://www.bankrate.com/finance/mortgages/what-you-should-know-about-land-loans.aspx#testid=9572220397_control" target="_blank">reluctant to do land loans</a>.
Compare Sites
After getting approved for a mortgage comes the fun part: <a href="https://www.akhomeshow.com/homestead-land-analysis.php">Finding a right land for the actual purchase</a>. The perfect site is different for everyone. Many homesteaders want to raise chickens or grow vegetables, which makes agricultural zoning essential.
Solar is a popular option for electricity. Southern exposure maximizes both solar power generation and passive solar heat gain, so it's a good asset.
If the grade is not level onsite, it will be much more expensive to level the land for a home. For this reason, it's more cost-effective to find a plot with level grade.
Some homesteaders want the option of using grid utilities while others prefer total self-sufficiency. Determine what's important before beginning to compare available sites, since some may tie back to the grid while others may be remote. Both approaches have their pros and cons, so <a href="https://www.akhomeshow.com/sitka-homes-for-sale.php" target="_blank">Sitka</a> buyers should consider what's right for them.
No matter how attractive, no plot of land is worth it if there are no legal access rights or if access is restricted seasonally. For instance, if seasonal roads close in the winter due to heavy snows, then the location isn't going to work for a full-time off-grid home.
So-called <a href="http://www.howtolaw.co/deal-with-landlocked-land-392263" target="_blank">landlocked plots</a> have no legal access and are only viable with a court-granted easement or purchase of an easement from a neighbor. While it is possible to unlock these plots, it's expensive, inconvenient, and time-consuming to do so.
Be patient when looking for the ideal plot of land, and don't settle on something that is not feasible in the long-term. When something ticks all the boxes and simply feels right, proceed with confidence.
2019-02-14T10:30:00-07:002021-06-22T12:35:45-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2740Trends in Home Building Technology
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/building-technology.jpg" alt="New Home Building Technology in Construction Today" />Following the trends in construction technology is a smart way to make educated decisions in the future. When buyers know what's available, they can ask better questions so they end up with the home they want. <a href="https://www.akhomeshow.com/blog/when-and-how-to-buy-a-new-construction-home/" target="_blank">New construction</a> hasn't embraced technology as much as other industries have, but they're catching up in some very notable ways. Learn more about how different technology is being used to benefit both the builders and the owners of the property.
Scouting Technology
Scouting technology today saves developers time when they need to choose suitable locations for their new structures. In the past, scouts may have needed to visit multiple sites, spending days measuring potential impediments on the land. Now, developers can use advanced devices to find a space that fits their needs:
Drones: This invention is extremely popular in real estate today because drones can accurately show the scope and conditions of potential building sites. If a large plot of land has been overrun with massive tree roots or was illegally used as a dumping ground, developers and investors can decide its viability without ever having to visit the site.
3D Scanners: 3D scanners show builders the exact measurements of potential obstructions on the property within an error rate of just 2 mm. If a drone shows there are bushes or stockpiles on the property, the 3D scanner will relay the dimensions back to the developer so they can plan ahead.
VR/AR to the Rescue
Some construction companies are now using virtual and augmented reality programs to help train their workers. With a focus on both safety and accuracy, workers can learn and make mistakes while wearing a headset rather than on top of the scaffolding. Working on a job site comes with its own inherent set of risks, but VR and AR give workers the opportunity to learn the specific layout and dangers of each job site in hopes of cutting down on the number of accidents a job site may have. It gives workers advance notice about the potential perils and allows them to build their confidence before stepping on the site.
New Building Materials
Most homeowners will perform a certain amount of maintenance on their home in order to keep the structure up to code, but manufacturers of building materials are looking to reduce the efforts of the average homeowner. For example, self-healing concrete is a revolutionary product that can help foundations stand the test of time. The concrete can actually revert to its original shape in the case of general shifting or trauma. Builders may opt for nanoparticle paint because it's engineered to resist both stains and water damage. By experimenting with new elements, such as titanium dioxide and shape-memory polymers, manufacturers are trying to give people quality materials that will last longer than the length of the mortgage.
Robotics in Construction
Robots brick-layers can lay bricks about <a href="https://www.cnbc.com/2018/02/17/construction-robotics-bricklaying-robot-five-times-faster-than-human.html" target="_blank">five times faster</a> than that of a construction worker, making them a potential solution for developers who are struggling to find labor. Not only can robots help investors hit project deadlines faster, they can also work on a variety of different layouts. Robot manufacturers are currently hard at work finding ways to improve the robots' flexibility when met with anomalies on the job. From complex blueprints to unexpected holes in the ground, robots may be able to work on complex custom homes in the near future. As the shortage of workers in the construction industry continues, this trend could potentially push costs down for homeowners without compromising durability or quality.
3D Printing
A 3D printer for most people is nothing more than a strange phenomenon. Most people don't own one or even need to own one. However, many companies are making the most of 3D technology by experimenting with different designs and capabilities—including 3D homes. Companies such as Apis Cor are already 'printing' <a href="https://techcrunch.com/2018/05/08/how-3d-printing-is-revolutionizing-the-housing-industry/" target="_blank">fully habitable homes in mere hours</a>. The best part is that these homes only cost a few thousand dollars to make, which could provide a solution to many of the country's affordable housing questions. This technology may not be quite ready for a mainstream audience, especially when the machines themselves cost so much to produce, but it may only be a matter of time before we see 3D printers take center stage.
How New Building Technology Counteracts The Construction Labor Shortage In America
The 2008 recession caused the U.S. construction industry to shrink significantly, resulting in many skilled workers switching to other careers. Now that the economy's recovered and home building is at previous levels, there's a serious labor shortage that is driving up both construction costs and delays. However, new technology is helping the industry build houses quickly and affordably despite the labor shortage. Some of these helpful tools include:
Pre-fabricated building components that allow for entire rooms or structures to be set up rapidly so the crew can move on to the finishing steps
Automated construction equipment for handling everything from clearing the site to hanging drywall
Advanced tracking software to make the most of every worker on the job site for faster construction without any quality loss
Online recruitment and training programs to help attract new laborers that would have never otherwise considered a job in construction
New design techniques that minimize unnecessary framing work, resulting in a stronger structure that takes less time to build
Faster <a href="https://www.probuilder.com/blog/can-technology-solve-labor-shortage">spray-on application methods</a> for time-consuming processes like applying house wrap or covering a roof deck.
Learn More About How New Building Technology Can be Utilized
<a href="https://sloboda-studio.com/blog/real-estate-trends/" target="_blank">Real estate technology trends</a> can take a variety of different forms, but it's clear that <a href="https://www.akhomeshow.com/sitka-homes-for-sale.php" target="_blank">Sitka builders</a>, investors, and workers are beginning to see the practical benefits of technology rather than just the complex instruction manual and hefty price tag. Future buyers may or may not see these methods employed in their dream homes, but it helps to have an idea before searching.
2019-02-11T10:12:00-07:002021-04-19T08:59:32-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2765Home Buyer's Guide to HOAs
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/know-the-facts-before-buying-a-home-in-an-hoa.jpg" alt="Everything You Need to Know About HOAs" />One of the many factors to consider when trying to <a href="https://www.akhomeshow.com/blog/home-buying-red-flags/" target="_blank">buy a home</a> in a condo or development is the homeowners association. HOA's have a big impact on the life of people who live in these areas. Understanding how HOA's operate and how they affect life in a development can help a you decide whether or not you want to purchase a home with an HOA.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
What is an HOA?
An <a href="https://www.hgtv.com/design/real-estate/what-you-need-to-know-about-hoas" target="_blank">HOA is an entity</a> that manages common areas and enforces rules for planned housing developments and condos. The people in the HOA are homeowners in the development. All homeowners in the HOA must pay monthly dues to the association.
These dues are used to maintain the grounds and make improvements. Repairs to the roof and sewer are usually covered by HOA dues. The HOA must maintain a savings in order to make large repairs as they become necessary.
If the HOA does not have enough money for large repairs, this could lead to an special assessment, or an increase in the monthly dues. HOA dues can be anywhere from around $50 to over $1,000 per month, depending on where the HOA is located, maintenance costs and other factors.
What are CC&Rs?
CC&R stands for <a href="https://www.nolo.com/legal-encyclopedia/what-are-convenants-conditions-restrictions-ccrs-hoas.html" target="_blank">covenants, conditions and restrictions</a>. CC&Rs are the rules that every homeowner must abide by when living in their home. CC&Rs can place many restrictions on homeowners. Everything from exterior decorations, number and type of pets allowed and type of exterior alterations a homeowner can make may be covered by CC&Rs.
Once a buyer purchases a home with an HOA, they're bound to follow the CC&Rs. For this reason, it's very important to know in advance what the CC&R document states. Home buyers can request a copy of this document either before making an offer or during the escrow process. <a href="https://www.akhomeshow.com/wasilla_real_estate.php" target="_blank">Wasilla home buyers</a> are given a specific period of time to review CC&Rs during the escrow process. During this review period, the buyer can back out of the contract without losing their deposit. Once the review period has passed, the buyer is locked into the contract or faces a financial penalty for canceling the purchase.
What Else Should Buyers Watch Out For?
HOA's have to manage their money responsibly or the homeowners in the association could suffer the consequences. This means that the dues should be enough to cover realistic expenses for the foreseeable future. Buyers who are concerned can ask to review recent financial reports and minutes from the most recent homeowners association meetings. This is a good way to get a feel for how functional the HOA is and whether or not the HOA is properly managing the property.
All of this should be done within the review period. If you're a home buyer who is not sure what red flags to watch out for and how to decide whether or not an HOA is right for you, work with a real estate professional. Your real estate professional can help you go over the CC&Rs, answer any questions that you might have about the role of HOA's and so on. To find out more, contact a reputable real estate agent today.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2019-01-31T15:07:00-07:002020-06-15T09:33:58-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2700Tips for Buying a Fixer-Upper Without Regrets
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/fixer-upper-buying-tips.jpg" alt="Tips for Buying a Home that Needs Renovations" />Buying a fixer-upper can be a great way to get into a home "on the cheap," but too often what seems a sure thing can turn into a disaster. <a href="https://www.thebalance.com/fixer-upper-homes-1798315" target="_blank">Repainting interior walls</a> may be easy, but foundation repairs, structural alterations, adding square footage, or alleviating a mold problem can be costly.
Depending on what "fixes" are required, even a low asking price may be way too high in terms of time and effort required to make a house desirable. Here are some tips to assure that your dream house doesn't become the money pit you'll regret ever considering.
Know the Neighborhood
There's no substitute for local knowledge. Remember that there's always a reason when a home is underpriced for its area, be it in <a href="https://www.akhomeshow.com/eagle-river-homes-for-sale.php" target="_blank">Eagle River</a> or elsewhere. If it's simply that it hasn't been updated in decades, it might be a good deal. But weigh the pros and cons carefully, and consider local zoning and development trends, in addition to structural condition. Exercise caution and do your due diligence.
Overestimate the Costs of Repairing the Property
If there's anything sure about renovation, it's that the work will take twice as long as you expect and will cost more than you think. That, in itself, is not a good reason not to proceed; just be sure to give yourself a cushion both in terms of time and dollars. Whether you hire a contractor or plan to complete the bulk of the work yourself, be sure you understand the scope and the time frame. If you need plans and permits, know what's involved before you proceed.
Be Conservative With Your Renovations
You've probably heard the phrase "Don't overbuild for the neighborhood." That's good advice. Whether you're doing simple cosmetic updates or extensive exterior alteration, let the area's <a href="https://www.deseretnews.com/article/700063192/Avoid-pitfalls-of-overbuilding-for-your-neighborhood.html" target="_blank">comparable homes</a> be your guide. Add features that will keep its value in line with other similarly updated and maintained homes. Never be tempted to become the biggest, boldest or most expensive house on the block.
Don't Take Shortcuts
Resolve that any changes you make -- from replacing windows to adding a new roof, from smart home technology to new appliances, and from picking new light fixtures to installing granite countertops, will be done properly, professionally, and in compliance with existing codes. Always use the best quality materials that your budget will allow, and lean towards green and sustainable as you make your selections.
Underestimate the Return
Don't let the prospect of selling at a profit cloud your judgment about the choices you make. It's better to underestimate the remodeled value rather than to feel trapped in a home that will take time to appreciate, even if you have no intention of selling it anytime soon.
How to Qualify For a Mortgage for a Fixer-Upper Home
Some folks just have better long-term vision than others. These are the homebuyers who can walk into what would appear to others to be a disaster and fall in love with the house. They see the “bones” of the home, the possibilities and the low price of most fixers makes these homes all the more attractive to those with vision.
The problem for those seeking a conventional home loan to purchase fixers in Alaska is that lenders see these homes as lacking in sufficient security. They’ll want repairs made before they’ll approve a loan. But don’t let that stop you.
The Department of Housing and Urban Development (HUD), has a program for home buyers in your situation. It’s called the Section 203k loan and it covers not only the mortgage, but provides the funds needed to repair the home. Best of all, it’s all wrapped up in one loan, with one payment.
To use this program to purchase an uninhabitable home in Alaska, take the following steps:
Ensure the Home Meets the Qualifications for a 203k Loan
To be eligible for the 203k program the home must be at least 1 year old and a one- to four-unit home. It’s ok if it needs to be completely demolished, but you must retain the original foundation. So, step 1 is to determine if the home you want to buy fits this description.
Calculate the Current and Estimated Future Value of the Home
Get a ballpark figure on how much the home will be worth after it is repaired. Do this by getting estimates from the professionals you’ll need to hire should you decide to move forward. Your real estate agent can give you a rough estimate of what the repaired home will be worth on the current market. Then, compare the cost of making the repairs with the home’s eventual value. If it makes financial sense, make an offer to purchase the home with the caveat that it and you qualify for the FHA 203k program.
Find a Lender Who Authorizes 203k Home Loans
Choose an FHA-approved lender from the list on HUD's website. Call the lender and set an appointment to visit and learn more about the program and get pre-approved for the loan.
Contact a Licensed Real Estate Agent Today
Buying a fixer-upper home can be even more challenging than buying a turn-key resale home. Ensure you stay on top of the fixer-upper buying process by working with a licensed real estate expert who can help meet your home-buying needs.
2019-01-24T17:52:00-07:002020-10-07T11:42:20-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2709Mistakes People Make When Deciding Whether to Rent or Buy A Home
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-86/buy-vs-rent.jpg" alt="Buying vs Renting a Home" />Should I rent or buy a house? Sooner or later, every renter asks this question. Do they keep paying monthly rent, or secure a mortgage and buy a place. Many consumers are taking the home-ownership plunge this year. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends" target="_blank">National Association of Realtors</a>, 35 percent of this year's home buyers are first time buyers.
Some people should absolutely buy a home. Others should rent for a little bit longer. Deciding whether to rent or buy a home is difficult, and there are costly mistakes consumers make along the way, such as:
Not Having a Sizable Down Payment
When asking yourself "should I rent or buy", think about a down payment. It's smart planning to put as much down on a home as possible. This lowers your payments and may get you out of paying expensive mortgage insurance (PMI). Plus, many mortgage options require a good chunk of the home's cost down. If you don't have at least 5 percent saved as a down payment, and this doesn't include your emergency fund, tighten up your spending and sock some more money away while continuing to rent.
Ignoring Credit Score
Not checking your credit scores when deciding whether to rent or buy a home sets you up for misery. Poor credit can derail your chances of getting a mortgage at all, or getting one that has higher interest. Check your credit and make sure everything on your report is accurate. If you have late payments, get and stay current. If your credit needs a bit of work, rent a few more months until you improve it.
Failing to Consider Current Employment
Potential home buyers should feel confident they can keep their job at their present rate of pay. If there's whispering of layoffs, it's smart to continue to rent. In addition, consumers sometimes purchase a home without considering the possibility of moving to another city with their jobs, and end up frantically trying to unload their house a few months down the road. Think about your employment security and the likelihood of you living in the area for at least a few years for it to be worth it to buy.
Buying For The Wrong Reasons
Many buyers jump into home ownership because their friends buy a house or because of pressure from their parents. These aren't good reasons. Deciding whether to rent or buy <a href="https://www.akhomeshow.com/eagle-river-homes-for-sale.php" target="_blank">an Eagle Ridge home</a> means getting real with yourself. Are you mature enough to make a mortgage payment every month? Can you handle the insurance, taxes, repairs, and other responsibilities a home demands? Will you be able to give up that life dream of biking across the country or teaching English in Africa?
Believing Renting And Buying Cost The Same
"My mortgage payment will be the same as the rent I'm paying now, so I'll be fine," is a common mentality but one that can cause prospective home buyers to struggle with mortgage payments in the future. In addition to the payment, home owners are on the hook for taxes, insurance, and repairs. These add up! According to <a href="https://www.thebalance.com/home-maintenance-budget-453820" target="_blank">The Balance</a>, would-be buyers should adhere to the 1 percent rule, which is that annual home maintenance will cost 1 percent of the home price. So, if the home is $200,000, expect to pay $2000 every year in repairs.
Failing to Hire a Real Estate Agent
Real estate professionals make a big difference in the sale of a home. A <a href="https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/10/what-a-real-estate-agent-really-does-and-how-to-find-the-right-one-for-you/#782a70616797">good real estate</a> professional can help a homeowner negotiate a fair price for their home. Many homeowners are not as comfortable negotiating with others, and may not get as much for their house as an experienced real estate agent.
Even just <a href="https://www.thebalance.com/pricing-houses-to-sell-1798968">setting the price</a> to sell a home can be very difficult for many homeowners. Often homeowners are inclined to base the price of their home on their own sentimental feelings, or on homes in the neighborhood that are not as comparable as they appear. The best way to ensure that a home is properly priced is to work with a real estate professional who knows how to price the home based on comparable properties in the neighborhood.
It pays to be cautious when deciding whether to rent or buy a home. While home ownership is often a good investment, it's not always for everyone. Think it through, examine your finances, and make sure you're ready.
2019-01-14T16:40:00-07:002020-10-07T11:51:20-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2714When (and How) to Buy a New Construction Home
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/shared/images/new-construction-home.jpg" alt="When to Buy a New Construction Home" />Sometimes buyers and sellers forget just how emotional it can be to either let go of a home or to buy a new one. It's why some buyers find it easier to wipe the slate entirely and buy a home with no history attached to it. Not only are all the fixtures new, but so are all the memories. Learn more about when it's right to buy a new construction home, and how to go about getting your hands on the property.
The Benefits of New Construction Homes
There are many <a href="https://www.moving.com/tips/pros-cons-buying-new-construction/">benefits of new construction homes</a>. New construction homes are built to the specification of the home buyer, so they're basically a dream home for the person who moves in. <a href="https://www.thebalance.com/buying-newer-or-older-home-1798298">New construction homes</a> also have all new fixtures, so they're unlikely to experience major maintenance problems in the first years that they're occupied.
Homeowners often like the feeling if newness that comes from living in new construction homes. In these homes, floors don't creak, and all of the parts still function as they should.
Older homes often have problems like lack of storage. In modern homes, homeowners are able to choose the perfect amount of storage for their needs. Often, this includes walk-in closets and extra rooms for storage. Finally, new construction homes are often made out of sustainable, green materials to reduce the home's carbon footprint.
Schedule Flexibility
<a href="https://www.akhomeshow.com/blog/buying-a-home-this-spring-tips-to-get-started/" target="_blank">Buying a new home</a> that isn't quite complete will require some flexibility on the buyer's part. Builders can be delayed by anything from a major blizzard to new zoning regulations put forth by neighborhood officials. Most delays are legitimate, and it may take a while to get back on track. If a buyer has a strict deadline when it comes to leaving their old home, they may want to consider a traditional home sale. Remember that staying in a temporary place for an extra three months may not be nearly as bearable as it sounds.
Seller Negotiations
Negotiating on a newly constructed <a href="https://www.akhomeshow.com/soldotna-homes-for-sale.php" target="_blank">Soldotna home</a> plays by different rules than a traditional home, so buyers may need to get a little creative to get the deal they want. A seller on a new project isn't going to want to drop their prices after they've gone public. If a buyer wants to negotiate the actual purchase price down, they'll need to commit before the home is even built.
The other option is to think outside the box, so the builder doesn't get a reputation for dropping their prices. The way sellers choose to negotiate with buyers typically has more to do with 'hidden' fees that won't be recorded in the public register. They may put in granite countertops at no extra charge or cover some (or all) of the closing costs.
Best Time to Buy
A typical home seller may be willing to live in their home until they meet the perfect buyer, but a newly constructed home builder doesn't have that kind of luxury. The seller has no emotional attachment to the home, so they're generally only factoring in <a href="http://dreamcasa.org/real-estate-101/house-hunting/things-consider-buying-new-constructions/" target="_blank">cost-benefit analysis</a> when it comes to interest in the home. Letting the house sit on the market is the equivalent to throwing money down the drain.
If a home buyer can find a home that's been sitting for over a month, they'll be in a better position to make additional contingency demands to settle the sale. Or as mentioned, buyers can commit to buying the home prior to the start of construction to raise their chances of getting a better deal.
Contracts and Forecasting
Inspections, contracts, and research should all be priorities when it comes to buying a newly constructed home. Everything has to be written down and formalized for it to hold up in court, so <a href="https://www.thebalance.com/buying-new-home-construction-from-builders-1798334" target="_blank">spell out expectations</a> after the seller has explained their side. Be wary of a representative who's trying to pressure you into signing the contract or into using their lender.
Make sure the home has been checked by an objective inspector as well. Just because a home is brand new, doesn't mean it's well-built. Buyers should also be doing additional research into the neighborhood. Buyers should know if the city is planning to build a new ramp near the home in five years.
2019-01-08T09:38:00-07:002020-06-15T09:48:03-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2692A Guide to USDA Home Financing
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/sell-vacation-home.jpg" alt="How to Make the Taxes On Your Vacation Home Sale" />Whether it's due to a market drop or a change in lifestyle, selling a vacation home comes with a different set of rules than a primary residence. There aren't nearly as many tax breaks from the government because vacation homes are considered a luxury asset. It helps to know ahead of time how the taxes work before <a href="https://www.akhomeshow.com/blog/a-basic-guide-to-home-selling/" target="_blank">putting the house up on the market</a>.
Capital Gains
When it comes to a primary residence, the government gives people a fairly generous benefit for pocketing the appreciation value of their home. However, a second or a vacation home is treated the same as a traditional asset such as a stock. This means that if the home has increased in value, the seller will be taxed <a href="https://www.taxpolicycenter.org/briefing-book/how-are-capital-gains-taxed" target="_blank">based on the appreciation amount</a>.
While the seller is allowed to deduct everything from closing costs to major home improvements, they may be taxed at a full 20 percent of the gain. This means that if the home jumps from $500,000 to $1 million in just a year, the owner would likely have a full $100,000 taken out in taxes. The percentage of capital gains works on a progressive scale based on the income of the owner, with the standard amount being 15 percent.
Rules for Depreciation
For those who rent out their home for part of the year, depreciation can have an impact on the final total for capital gains—even if the home has steadily increased in value over time. A person is allowed to claim depreciation based on wear and tear from rental guests while they own the home to avoid higher income taxes. However, the depreciation will also make capital gains more severe because the starting amount is based on the final claimed depreciation value.
So for owners who spend $150,000 on a property and claim $30,000 in depreciation, their starting point for capital gains will be $120,000, as opposed to $150,000. If the property sells for $200,000, that's $80,000 worth of capital gains instead of $50,000. Homeowners are also allowed to use capital losses to offset their capital gains. So if the seller's primary residence is worth less than what they paid, but their vacation home has appreciated, they could sell both homes to <a href="https://www.realtor.com/advice/sell/selling-vacation-home-taxes/" target="_blank">balance out their total taxes</a>.
Location of Properties Eligible for USDA Financing
Since USDA available financing is for rural properties, this generally means that the homes and properties are away from cities and metropolitan areas. In many cases, USDA financing is not available unless the home is many miles (in some cases, hundreds of miles) from any city center. This means that a buyer using USDA financing would need to consider commute times or have the ability t work from home.
Also being far from a city or metro area means being further away from grocery shopping and hospitals. In addition, other facilities such as daycares, doctors, dentists and schools may be much further away as well.
Further Options
Sellers who don't want to pay capital gains on a home that's drastically appreciated may want to make the home their primary residence, swap it out for another investment property, or leave it as a legacy for any descendants. Those who make their vacation home their residence can qualify for a $250,000 ($500,000 for joint owners) capital gain deduction if they live in the home for at least two out of five years of ownership. Alternatively, they can use a 1031 exchange, where they purchase a similar property of equivalent value.
This doesn't eliminate the need for capital gains entirely, but it does delay it until the final sale of a property. If leaving it to descendants, the children will get a new base amount of the home according to the market value at the time of inheritance.
Talking to a professional is often the best way to navigate taxes at the time of a sale. A 1031 exchange, for example, is fraught with complications and rules. However, the more aware sellers are of the many rules and options available to them, the more likely it is they can maximize the returns on their <a href="https://www.akhomeshow.com/kenai-homes-for-sale.php" target="_blank">Kenai</a> home investment.
2019-01-04T15:46:00-07:002020-06-15T09:48:40-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2724What to Know About Taxes and Paperwork When Buying a Vacation Home
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/buying-vacation-home.jpg" alt="How to Handle Paperwork and Taxes of a Vacation Home" />Whether a vacation home is traditionally luxurious or <a href="https://www.akhomeshow.com/blog/tips-for-buying-a-fixer-upper-without-regrets/" target="_blank">purchased as a fixer upper</a>, it's always going to be an extravagant purchase for any owner. From the most rustic cabin in the woods to a beach property complete with infinity pool, a second home is a chance to escape from the everyday grind without having to research places to stay, where to go, and how to get there. But as most owners might imagine, the tax situation and legality of a second home isn't the same as a primary residence. It helps to know what everyone's getting into before going any further down this road.
Personal Residences
For people who plan to make their vacation home their personal residence, they can expect a few standard deductions such as mortgage interest and property taxes. However, there is a cap on the amount of interest that can be deducted and that cap was recently changed in the new tax bill. The interest can be deducted based on the amount of debt an owner has between their two homes up to $750,000. So if an owner owes $750,000 on their primary residence and $500,000 on their vacation home, they won't be able to deduct any of the interest for the vacation home.
Over-Under
For those who want to rent out their property, they'll need to calculate their taxes based on the amount of time that they plan to stay there. Homeowners are allowed to rent out their property for up to 14 days out of the year <a href="https://www.investopedia.com/articles/personal-finance/013014/tax-breaks-secondhome-owners.asp" target="_blank">without reporting that income</a> to the IRS. The amount of money generated is irrelevant, as long as the amount of days doesn't exceed 14. For those who will plan to rent out the property for more than 14 days, they must report that income to the IRS so it can be taxed according to the owner's standard income bracket.
Losses and Deductions
For those who plan to use the home for only 14 days out of the year or 10% of the number of days the home was rented, they can technically classify their rental home as a business enterprise. Owners are allowed to use whichever number is greater, meaning if they choose to rent out the home for only 30 days out of the year, then they're still allowed to stay at the home for 14 days as opposed to three. In this case, owners are allowed to deduct all business-related expenses at this point, including half the depreciation of the vacation home and rental income losses up to a certain amount.
Staying and Selling
Owners who stay in the home for more than two weeks (or 10% of the days rented) are not allowed to deduct rental losses. Contacting a tax attorney is usually the best way to handle a <a href="https://www.akhomeshow.com/homer-homes-for-sale.php" target="_blank">Homer vacation home</a> that is occasionally rented out, especially considering that keeping expenses straight can become rather complicated. When it comes to selling a property, owners will typically have to pay full capital gains on any appreciation of the rental home.
Additional Paperwork Needed for Vacation Home Mortgage
Most mortgage companies will require additional paperwork from a buyer of a vacation home. Since the vacation home is not assumed to be the primary residence of the buyer, mortgage companies are more cautious in lending money. Additional paperwork requested from a vacation home buyer could include more information about current and past employment, debt or future intentions for the property. Since the buyer does not intend to occupy the property, a mortgage lender may feel less obligated to grant a mortgage to the buyer.
Having a second home may seem like a way to unburden yourself from the hassle of vacation planning, but it also comes with more than a few legal questions for the owner—especially considering the updated tax codes. Choosing to rent it out can be an excellent way to pay for (or even profit from) a second home, but the current legal structure can make it harder to achieve that dream.
2019-01-02T15:45:00-07:002020-06-15T09:50:10-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2699Building a Custom Home or Buying an Existing One
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/custom-vs-existing-home.jpg" alt="Deciding Whether to Buy or Build a Home" />Becoming a homeowner is one of the largest steps that many people will take in their lifetime. Not only is it exciting to have control over your dwelling and design it to look any way you choose, but it also brings about a sort of rite of passage into adulthood.
Many people don’t take the time to consider that there are actually multiple ways of buying a home. While most go down the traditional path of hiring a <a href="https://www.akhomeshow.com/agents.php" target="_blank">real estate agent</a> and buying something for sale, others take a more unique approach and decide to custom build a home. Which is the better option and why? It depends on your priorities.
The Difference Between Custom Houses And Production Homes
One of the choices that home buyers will have to make when buying new homes is custom home versus production home. Each of these has their advantages and drawbacks and will have different appeals to different buyers.
What is a Custom Home?
Custom homes are those that are built to suit the buyer. The buyer will get the chance to weigh in on factors that range from the foundation through flooring choices and window styles. This sort of flexibility can allow buyers to get as close to their personal dream home as possible. However, this comes with a hefty price tag. On average, a buyer will <a href="https://blog.lotnetwork.com/production-homes-versus-custom-homes/" target="_blank">pay about twice</a> as much for a custom home.
What is a Production Home?
There are a number of factors that can make production homes, which are constructed together with other homes, a more appealing option for some buyers. First, production homes go up far faster than custom homes. Buyers who are need an earlier move-in date can find this a strong advantage. However, some buyers dislike the similarity between a block of production homes, which can lead to a "cookie cutter" look.
Which choice is superior will depend on individual buyers. When considering, they should always keep factors that range from personal appeal to total costs in mind.
Going With An Existing Home
While it’s definitely the more popular way to go, choosing to purchase an existing home oftentimes gives buyers less options but also provides less stress. In this scenario, individuals usually hire a real estate agent and spend their weekends walking through open houses and scouring the internet for listings.
If this sounds like it’s your cup of tea, there are <a href="https://www.thebalance.com/tips-for-buying-your-first-home-1798337" target="_blank">a few key things to remember</a> when purchasing an existing home, <a href="https://www.akhomeshow.com/eagle-river-homes-for-sale.php" target="_blank">be it in Anchorage</a> or elsewhere. First, it’s important to keep expectations at an appropriate level. Many people don’t find their dream home within their budget on the first time around. Most, if not all, of the homes for sale will have something that you don’t particularly love about it, but remember that it is changeable. <a href="https://www.akhomeshow.com/blog/buying-a-home-this-spring-tips-to-get-started/" target="_blank">Buying the property</a> means getting to put your own individual touch on it.
Before closing the sale, it’s also crucial to get the home inspected for any potential issues. Again, it would be uncommon to find a home that passes every area of this detailed look through with flying colors, yet making sure to document the state of the home can save money and time in the long run.
Deciding To Build A Custom Home
Many potential buyers have a vision from the start to build their dream house, and by going custom you can achieve every single thing you want. Others just get too frustrated with what’s on the market and decide to take things into their own hands. No matter the incentive, <a href="https://www.horizoncontracting.ca/2013/11/6-traps-you-must-avoid-when-building-your-custom-home/" target="_blank">building a custom home</a> includes a lot of elements and extra work that isn’t always apparent at first glance.
While it sounds obvious, one of the most important aspects of building a home is partnering with a reputable builder who has experience in the type of home you’re looking for. Just like a rock band wouldn’t be hired for a children’s birthday party, different builders cater to different styles of architecture. Aside from creating a good match aesthetically, make sure the individual hired has a solid reputation within the community.
Since <a href="https://www.akhomeshow.com/anchorage-new-construction.php" target="_blank">building a custom home</a> is naturally more complex than other projects, take some time to talk with your builder and others who have gone through the process. It’s not uncommon for this type of construction to include fees that you didn’t know about, and getting surprised with a huge bill will dampen the experience for anyone. By laying out a plan upfront, the spending can be kept in check.
Either Way Is Right
Both home options are fantastic ways to go, depending on what level of time, money, and stress you’re able to handle. Sometimes it’s helpful to buy an existing home as one’s first house, and then move toward <a href="https://www.akhomeshow.com/anchorage-luxury.php" target="_blank">custom building</a> later on. Each person’s priorities will be different and requires careful planning, but no matter which method is chosen, in the end you’ll be happy to be a homeowner!
2018-12-14T09:15:00-07:002020-06-15T09:52:53-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2759What Home Architectural Style Is Right For You?
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/home-styles.jpg" alt="Which Style of Home Should You Buy?" />Home architectural styles have varied a lot over the years. Home buyers who want a historical property or who are seeking a home that fits their personality should be aware of the different styles. Knowing what's out there and how the styles differ can make it easier for the home buyer to find or <a href="https://www.akhomeshow.com/blog/when-and-how-to-buy-a-new-construction-home/" target="_blank">construct the type of home</a> that matches their personality.
Colonial Style Home
<a href="https://www.bhg.com/home-improvement/exteriors/curb-appeal/house-styles/?slideId=slide_ee683d96-038d-4fc9-947a-c5c8445c8054#slide_ee683d96-038d-4fc9-947a-c5c8445c8054" target="_blank">Colonial style homes</a> date back to the 1700's. These houses are typically three story homes, with a stair case in the middle of the house connecting all three floors. Colonial homes are very formal, with handmade millwork, brass fittings and mirrors placed around the house for decoration. Living spaces are found on the first floor and bedrooms are found on the upper floors.
These homes can incur high maintenance costs, especially in heating and cooling, but for the right homeowner, the expense is worth it. Colonial homes tend to be historic and grand, and are especially impressive for home buyers who like to entertain large parties.
Victorian Home
<a href="https://freshome.com/house-style-victorian-home/" target="_blank">Victorian architecture</a> is the style that was popular during Queen Victoria's reign from the early to mid 1800's through the end of the 19th century. Victorian homes can be divided into different sub-styles like Gothic Revival and Queen Anne style. Victorian homes are large, multi-story properties with sharply pitched roofs, rounded gables, pointed windows and large asymmetrical porches.
Victorian homes are often very ornate. Some resemble castles or cathedrals, others look almost like wedding cakes. Like Colonial style homes, Victorian homes can be expensive to heat and cool. Repairs can also get expensive in Victorian homes, because old fixtures break easily and need to be replaced. However, for a person who appreciates history and needs space to spread out, a Victorian home is an excellent option.
Mid-Century Modern
<a href="https://www.hgtv.com/design/home-styles/all-about-mid-century-modern-architecture" target="_blank">Mid-Century Modern homes</a> rose in popularity in 1945 and continued to be built through the 1980's. These homes can be recognized by their shallow roofs, large glass windows and open spaces. These homes were designed to integrate the inside and outside, so that the inside of the home had a substantial view of the yard and the great outdoors.
Mid-Century Modern homes are often split-level, so the homeowner may walk up and down slightly from one side of the home to the other. This creates a sense of space and depth within the home.
Mediterranean
<a href="https://www.hgtv.com/design/home-styles/mediterranean-architecture-" target="_blank">Mediterranean style homes</a> are a mixture of different styles found in Spain, Portugal, Italy and Greece. These homes tend to be large and sprawling, with stucco walls, porticos, heavy wooden doors, arches, plaster and Spanish tile rooftops. This style of architecture was popular in the early part of the 20th century up to the beginning of World War II. Homeowners continue to build this style of home today, in certain parts of the country.
Mediterranean style homes are often found in the desert southwest, where the clay tile roofs are resistant to flame and fair well under the sun. Homeowners who like Mediterranean style often appreciate the small ornamental touches found on these homes, mixed with the practical use of materials.
Work With a Real Estate Professional
If you're a home buyer who would like to purchase a specific style of home, work with a real estate professional to find the <a href="https://www.akhomeshow.com/kenai-homes-for-sale.php" target="_blank">Kenai home that's right for you</a>. Your real estate professional can help you identify homes in the area that meet your criteria, and can also help you negotiate a fair price for the property.
2018-12-13T09:37:00-07:002020-06-15T09:53:12-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2733What You Need To Know About Real Estate Investment
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/real-estate-investment-guide.jpg" alt="Everything You Need to Know About Real Estate Investment" />For the right person, real estate investment can be very exciting as well as lucrative. However, starting in real estate investment can be challenging. Knowing the different types of real estate investment and what kind of issues are relevant in this type of activity can help. This guide will go over some of the information that is essential to investors.
For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.
Pick the Right Type of Investment
There are <a href="http://www.thebalance.com/different-types-of-real-estate-investments-you-can-make-357986" target="_blank">multiple types of real estate investment</a>. Knowing about the different types can help investors pick the right type for them. Below are some of the most common types of real estate investment.
Rental Properties
Rental properties are single family or apartment-style homes. Single family rental properties are a very common starting point for investors, because single family homes are abundant and relatively affordable. Apartment complexes are typically more expensive and require more upkeep, but they also generate a more reliable income than single family rental properties. This is because a single family rental property makes no money when the resident moves out, but apartments with multiple units can generate income as long as at least one unit is occupied.
Fix and Flip
A fix and flip property is a property that can be bought at a discounted rate, renovated and then sold for a higher price. For real estate investors who like DIY projects or who have a creative streak, fix and flip properties can be fun to remake and remodel. Licensed contractors are also good candidates for fix and flip properties because they have the skills and tools to make repairs on their own. Fix and flip investment is a slower type of investment that requires time and money up front.
Retail Spaces
A retail space like a restaurant or store can be a very wise investment in a good economy. When the economy is poor, profitability can wane. Real estate investors who do research and who choose a smart location for their retail space may be able to weather a poor economy better than investors who do not.
As in the case of apartment complexes, retail spaces that have multiple units may continue to make money even if one or two businesses vacate the space. Investors who maintain their retail space will find it easier to attract high-end businesses that can pay well.
Industrial Real Estate
Industrial real estate is often very specialized, with tenants requiring special accommodations for their industrial activities. Investors who accommodate these needs can often charge more. Like other types of commercial real estate, industrial real estate is affected by the economy. Some types of industrial real estate are more resilient to economic downturns than others, so the investor must decide which type is right for them.
Office Space
Office space is often divided into units similar to apartment complexes. Typically, these units are leased to small and medium sized businesses. This is a very stable type of real estate investment, because businesses tend to need office space, even when the economy is slow. A typical lease for an office space will last for multiple years, so these commercial spaces tend to generate constant income.
Gather a Down Payment
Investors who want to <a href="https://www.bankrate.com/finance/real-estate/5-tips-for-financing-investment-property-1.aspx" target="_blank">get started in real estate investment</a> must first get together the money. Often, investors must get a loan just like a home buyer. Typically, loans require a down payment.
Different types of loans require down payments of different amounts, so to find out how much is needed in order to buy a property, the investor must talk to a lender. The lender can evaluate the investor's loan needs and determine what kind of loan is necessary to get the investor started.
Do Research on the Real Estate Market
Before an investor can decide which property to purchase, that investor must investigate the area and determine which properties will be the most profitable. This process usually involves asking a lot of questions and exploring the economic viability of the area. Which areas are up and coming? Where is real estate most expensive and where is it cheapest? Are people moving to the area, or moving away? What are the common industries in the area, and how stable are those industries? What's the average income? Answering these questions and more can all help real estate investors determine which communities and what kind of real estate investment is best fro them.
How Real Estate Can Diversify An Investment Portfolio
One of the most important advantages real estate investing offers is a more diversified portfolio. While many investors rely solely on stocks and bonds, adding real estate to the mix offers advantages that can't be found with either of those vehicles.
First, real estate is what is known as a non-correlated investment. Investment vehicles tend to correlate to one another; that means, when one is doing well, it will affect another's performance. In the end, correlated investments can often cancel out one another's gains. Real estate is not correlated to the stock or bond markets, however, which means that performance is not dependent on the Fortune 500.
Real estate also allows investors to improve their yields through tax advantages. For instance, improvements to a property can make a tax bill lower, which can offset tax gains in other areas. Additionally, when funds are invested in new property, an investor may avoid capital gains altogether.
Work With an Experienced Real Estate Agent
For someone just getting their start in real estate investment, working with an experienced <a href="https://www.akhomeshow.com/girdwood_real_estate.php" target="_blank">Girdwood real estate</a> agent is important. For more information about how you can start in real estate investment, talk to your real estate agent today.
For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.
2018-12-12T15:47:00-07:002020-10-07T11:47:59-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2718The Fundamentals of PMI Every Homebuyer Should Know
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-86/home-pmi-guide.jpg" alt="PMI Fundamentals of Home Loans" />Homeowners in <a href="https://www.akhomeshow.com/chugiak_real_estate.php" target="_blank">Chugiak</a> may be required to take out and make payments on Private Mortgage Insurance or PMI. This is an additional expense for those who cannot afford to create substantial equity in a home at the time of a purchase. As part of a specific mortgage product, PMI may be required until a specific percentage of equity is reached or for the life of the mortgage product. Therefore, it is important to know more about PMI and related stipulations as it pertains to a mortgage product before taking out a home mortgage loan.
Understand more about PMI and when it is necessary today.
What Is PMI?
PMI is a type of insurance that protects lenders when there is <a href="https://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx" target="_blank">insufficient equity on a home</a>. This often comes into play when homebuyers cannot afford to make a 20 percent down payment. Buyers should know that PMI payments do not go toward building home equity.
All PMI fees are not the same. Variants, such as an applicant's credit score, may be used to determine interest rates on PMI. In addition, tax benefits, such as tax deductions on the PMI premium, have changed in the past. PMI can be applied on a conventional loan and will no longer be required once a certain amount of equity has been established.
This is not the case for PMI on other mortgage products, <a href="https://www.akhomeshow.com/blog/your-fha-loan-guide/" target="_blank">such as an FHA loan</a>. Therefore, those who are looking to make a small down payment and explore a range of mortgage products should understand the additional PMI payments that may be required for products that are not related to the conventional mortgage loan.
What Does PMI Do for Borrowers?
There is little benefit for borrowers. Borrowers do get approved for a loan when they accept to pay PMI. Rather, this insurance benefits lenders. PMI gives lenders additional security from applicants who are, in general, less invested in a property and may walk away and default on a loan without a significant personal investment. PMI protects lenders from foreclosures or defaults as borrowers are deemed as higher risk than those who make larger down payments.
When Do Borrowers Stop Paying PMI Payments?
Homeowners will come to a point at which they no longer have to pay PMI. This occurs when the balance of a loan amounts to only 78 percent. The lender will then cancel payment. Borrowers can have it canceled earlier when providing proof of an equity position that the loan-to-value ratio is at 80 percent. Borrowers must pay for an independent appraisal and cost up to $500 as part of this process. Homes that have appreciated in value and remodeling that may serve to increase market value may work to help those looking to <a href="https://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx#slide=1" target="_blank">eliminate their PMI sooner</a>. Refinancing is also an option after two years.
PMI Requirements for Non-Conventional Loans
With non-conventional loans, homebuyers do not have to put 20 percent down nor pay private mortgage insurance. Since these loans are typically secured by the government, the mortgage company does not require that the buyers hold additional coverage in case of default. Non-conventional loans include ones offered by the Federal Housing Administration (FHA), US Department of Veteran’s Affairs (VA) and other government entities. These loans are typically offered through first-time homebuyer programs as well.
With these non-conventional loans, homebuyers pay a set down payment that has no PMI restrictions attached. This allows homebuyers to minimize their monthly mortgage payment without risk to the lender. The lack of PMI requirements directly reflects the loan backing provided by the government.
For FHA loans, homebuyers only need to pay a 3.5 percent down payment on a residence. There are no set income limits, but the buyer must meet the other eligibility restrictions to qualify for this type of loan. Closing costs and interest rates are also reduced to make the homebuying process much more affordable and accessible to those who qualify. The elimination of PMI and decrease in other expenses does come at a cost in the form of additional service fees.
Loans from the VA also allow homeowners to avoid paying a high down payment and PMI. Eligibility requirements apply for this loan as well, including proof of residual income. Low down payment VA loans have additional funding fees to consider when weighing the home loan options.
When choosing between home loan options with or without PMI, buyers must determine which one offers the biggest financial benefits in the long run. Otherwise, the additional costs and fees can quickly add up to more than the potential PMI payment.
Ways to Avoid PMI
Prospective homebuyers can save up to make a 20 percent down payment. Some may qualify for a VA loan, make a 10 percent down payment and take out a combination loan, or look into a HomePath mortgage as possible alternatives to taking out a conventional loan. Physician loans and loans through a credit union may also serve as options for those making smaller down payments. Not all mortgage products require PMI payments and it may pay to investigate all relevant home mortgage products available. Take the time to read the fine print and know how long borrowers are locked into making PMI payments.
2018-12-07T14:45:00-07:002020-06-15T09:55:21-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2695What to Know When Purchasing Rural Property
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/rural-properties.jpg" alt="Tips for Buying a Rural Home Property" />People have varying dreams of homeownership. You may imagine living in a cottage <a href="https://www.akhomeshow.com/alaska-waterfront.php" target="_blank">on the beach</a> or in a log cabin house by the mountains or a lake. If you've lived in the city or suburbs, your dream home may dwell in the country as you have always wanted to own a farm, grow vegetables or raise livestock. In time, you may have the opportunity to seek out your country home.
<a href="https://www.landhub.com" target="_blank">Buying land</a> or a rural home is sometimes not very different from looking for a home or lot in the city. You want a house that fits your current and future needs as well as preferences. Searching the real estate listings will allow buyers to pull up prices in a specific location and learn about all the amenities that are located close by. There are a few differences to be aware of when you are purchasing property in the country, <a href="https://www.akhomeshow.com/blog/a-guide-to-usda-home-financing/" target="_blank">including what home loans you qualify for</a>. Here are a few tips on what you should know about when house hunting in a rural location.
Utilities Vary in the Country
Depending on how rural the location is, there may not be municipal water servicing the property. You may have to <a href="https://www.offthegridnews.com/how-to-2/what-every-well-water-user-should-know/" target="_blank">rely on well water</a> to cook, bathe in, and to water the plants and animals. It is ideal to have the water tested for contaminants such as radon, arsenic and other chemicals that could make it unsafe for drinking.
Getting a Septic Inspection
Another thing to consider is that there may not be municipal waste lines. The property could have a septic system consisting of a septic tank that will need to be pumped out and serviced periodically, as well as a leach field. Checking on the condition of the septic tank can help you avoid costly repairs for a replacement system.
A septic tank is an underground vessel that holds all the wastewater from the home. Liquids and fats are found at the top of the tank, solids settle to the bottom. Over time, sludge builds up in the bottom of the tank. <a href="https://inspectapedia.com/septic/Septic_Tank_Pumping_Schedule.php">Septic tanks must be pumped</a> periodically, or the sludge builds up in the tank and causes a clog.
It's important to get an <a href="https://www.nachi.org/inspecting-septic-systems.htm">inspection of the septic tank</a> before buying the home because there's no way to know if the previous owners maintained the tank. If they did not have the tank pumped periodically, it could be clogged. Fixing a clogged tank can cost thousands of dollars if it needs to be replaced.
Zoning and Deed Ordinances
What do you plan to do with the rural property? Do you want to build a large pool, grow crops, raise livestock or hunt? There may be deed ordinances and zoning restrictions associated with the land that can dictate on what you can do with it. You may be able to build the pool, but not the shooting range you wanted to be based on these regulations. <a href="https://realestate.findlaw.com/land-use-laws/land-use-and-zoning-basics.html" target="_blank">Find out before you buy</a> to avoid any disappointment.
Mineral Rights
You may be looking at a <a href="https://www.akhomeshow.com/alaska-log-home.php" target="_blank">log home property</a> that has some type of resources available, such as natural gas or oil, in order to make a deal with a company that may want to tap this resource. Understanding your mineral rights to these resources on the property can stave off disputes of ownership. It can also help you figure out whether you want to sell, lease or gift these rights to someone else.
Property Accessibility
Well, if you purchase the house, then you own the road to it, right? Unfortunately, you may not actually own the road that leads to the property. Some roads are privately owned by other neighbors. This circumstance may mean that you have to share the costs of maintaining the road, having it plowed or fixing the potholes. Take these extra costs into consideration when debating about purchasing the property.
Find Out the Boundaries
The boundary lines can be a bit muddled in the countryside if the house sits on <a href="https://www.akhomeshow.com/alaska-acreage.php" target="_blank">several acres of land</a>. While you think that you can put up the livestock fence all the way back to the stream, the neighbor may say that this section is in fact part of their property. To stave off boundary disputes, <a href="https://www.angieslist.com/articles/surveying-your-property-worth-cost.htm" target="_blank">have a survey done</a> so you have a better idea of what part of the rural landscape is actually yours before building anything on it.
Living in the country can be what you always wanted. Make sure you understand everything about the property, as well as any additional costs or restrictions there may be before purchasing it.
2018-11-30T15:38:00-07:002021-05-13T08:08:22-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2756Why You Need A Real Estate Agent With Good Customer Service
<img class=" img_box_right" src="/uploads/agent-1/customer-service-real-estate.jpg" alt="Why You Need A Real Estate Professional Who Provides Good Customer Service" />A buyer's real estate agent is their best friend during the purchase of a home. Buyers who haven't yet selected the professional to represent them must look for an <a href="https://www.thebalancesmb.com/real-estate-agent-skills-and-qualities-2866859" target="_blank">agent who prioritizes customer service</a>. Here's why.
It's Important For You (And Your Agent) To Act Fast In a Home Search
When you find a home that you might want, it's important to act quickly. You'll need to see the house fast and get the offer in as quickly as possible in order to be competitive. This becomes hard to do if your real estate agent is hard to mobilize or is distracted by other <a href="https://www.akhomeshow.com/girdwood_real_estate.php" target="_blank">Girdwood</a> customers.
<a href="https://www.akhomeshow.com/blog/how-to-buy-a-home/" target="_blank">Home buyers who want good results</a> must work with a real estate agent who responds to phone calls in a timely manner. It's also important to work with an agent who takes on a limited number of clients at one time. This helps ensure that the buyer will have the undivided attention of the agent when the time comes to negotiate a price for a home.
You'll Need An Agent Who Listens To Your Needs
<a href="https://www.nnbusinessview.com/news/real-estate/communication-and-navigating-the-real-estate-transaction/" target="_blank">Communication is important</a> when working with a real estate agent. Buyers must be able to tell their agent what they want, what their priorities are and how much they can pay. The agent must be tuned in to the needs of the buyer, or they will have a hard time negotiating on behalf of the buyer.
Buyers who are looking for a real estate agent should start by having a serious talk about their needs and budget. Buyers who feel that their agent is not understanding or listening should talk to other agents until they find an agent who is clearly engaged and who prioritizes the needs of their customers.
Buying A Home is Stressful, Having a Good Agent Makes It Less Stressful
The home buying process is a stressful one. Home buyers spend thousands of dollars and deal with a lot of uncertainty when purchasing a property. One of the only ways to fight the uncertainty and stress is to work with a real estate agent who is comfortable with the process and who provides <a href="https://www.liveagent.com/customer-service-software/" target="_blank">good customer service and software</a>. A good real estate agent can help home buyers feel good about the home purchasing process.
2018-11-29T09:01:00-07:002020-10-06T12:36:32-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2729Home Buyer's Guide to Closing Costs
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/closing-costs.jpg" alt="All About Closing Costs" />Between the cost of a home and the cost of saving up for a down payment, individuals have a lot to save up for and plan for when looking to buy a home. However, there's another element in the home-buying process that represents an expense to the buyer: Closing costs. Closing costs are the administrative and legal fees associated with purchasing a home. There are many different fees that are paid when a house closes, and these fees are so numerous that they're lumped together in one large group, all to be paid together at once.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
Who Pays Closing Costs?
Typically, the buyer pays the closing costs. Sometimes, buyers are able to negotiate with sellers to have them pay closing costs. First-time buyers often struggle to put down money for a down payment, moving expenses and closing costs, so in some markets, <a href="https://www.washingtonpost.com/news/where-we-live/wp/2016/03/28/why-home-sellers-should-pay-their-buyers-closing-costs/?noredirect=on&utm_term=.f3b4ec9c68ac" target="_blank">home sellers can be persuaded to pay</a>. This may be more common in areas that attracts a lot of first-time home buyers.
Home buyers who want the seller to pay their closing costs must work closely with their real estate professional to get this negotiated. Some sellers are open to paying closing costs, others aren't.
When Are Closing Costs Paid?
Closing costs are paid when escrow closes and the house is ready to be bought. This usually happens <a href="https://www.thebalance.com/the-home-closing-process-1798319" target="_blank">about 30 days after the offer is accepted</a>. If the buyer or seller has negotiated a longer escrow period, then closing costs are paid whenever escrow finally ends.
How Much Are Closing Costs?
Typical closing costs range from <a href="https://smartasset.com/mortgage/closing-costs" target="_blank">2 to 5% of the value of the home</a>. It's hard to anticipate in advance of making an offer exactly how much closing costs will be, so home buyers should plan to have at least 2 or 3% of the home's value on hand to pay at closing. The nationwide average closing costs are about 2.1%.
What Fees Are Paid With Closing Costs?
The fees that are paid at close of escrow depends on many factors including the state where the home is being sold, the practices of the lender and the circumstances of the home sale. Some of the most common fees that are paid include:
Homeowners insurance. Typically, home buyers pay their first year of homeowners insurance at the time of closing.
Escrow fee. This is a fee paid to the escrow company for their services.
Appraisal. The appraisal is the fee that goes to the company that appraises the home.
Credit report. The credit report is run by the lender when trying to determine the interest rate of the loan.
Origination fee. This is a fee paid to the lender for their administrative costs.
Recording fee. This is a fee paid to the local recording office for making the official record of the transaction.
Underwriting fee. This is a fee paid to the lender for doing the research that determines whether the loan should be granted.
Application fee. This fee is also paid to the lender to process the application for the loan.
These are just some of the most common fees. Other fees, like the attorneys fees and the Up Front Mortgage Insurance Premium (UPMIP) will vary depending on the state where the home is being purchased (not all states require attorneys to be involved) and the type of loan being taken out (not all loans require the lender to get UPMIP).
Can Closing Costs Be Negotiated, and When?
Many people do not realize that the <a href="https://www.bankrate.com/finance/mortgages/negotiate-your-mortgage-closing-costs.aspx">costs and fees associated with a mortgage</a> can be negotiated while shopping for a loan. Careful attention to these costs can save hundreds or even thousands of dollars at closing and throughout the life of the loan. The key is knowing what fees will be due and which ones can be negotiated.
Since 2015, borrowers have been able to receive a Loan Estimate that helps buyers better understand the mortgage process. This sheet includes the costs associated with the loan, which include lender fees, title insurance and other costs.
While some, like flood certification or the appraisal cannot be negotiated, others, like title insurance, can. Ask you lender if there is a chance that they will waive specific fees, such as the application fee. You can also look at offers from a range of lenders to see who offers the best price.
Contact a Lender to Learn More
Home buyers who want to know more about the closing costs that they can anticipate paying when the mortgage closes can work with an <a href="https://www.akhomeshow.com/anchorage-homes-for-sale.php" target="_blank">Anchorage lender</a> to find out more. A knowledgeable lender can answer questions about closing costs and can also estimate the amount that the home buyer is likely to pay at closing.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2018-11-27T08:28:00-07:002020-10-07T11:51:02-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2707A Home Buyer's Definitive Guide to Traditional Mortgages
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/traditional-mortgages.jpg" alt="Guide to Traditional Mortgage Types" />Shoppers have dozens of decisions to make during the home buying process. Which neighborhoods do they like? How much are they willing to pay? Buy new or choose a fixer-upper?
One of the decisions that has the most impact on a home buyer's financial future is the type of mortgage. Picking the right mortgage when buying a <a href="https://www.akhomeshow.com/north-pole-homes-for-sale.php" target="_blank">North Pole home</a> is an individual decision, and a mistake can end up costing a future homeowner big. Education is key in reaching the mortgage decision that is best for you and your family. Here is the home buyer's definitive guide to traditional mortgages.
Fixed Rate Conventional Mortgage
Many people choose a <a href="https://www.bankrate.com/finance/mortgages/arm-vs-fixed-rate-mortgage-1.aspx" target="_blank">fixed rate mortgage</a> because there are no surprises. The mortgage offers buyers a rate of interest that stays the same throughout the life of the loan. This is good news for buyers who don't want to deal with potential increases in their monthly payment. Fixed rate mortgages are available in a variety of term times. The most popular choices are 15 and 30 year loans.
While a 15-year loan is ideal for those who can afford higher monthly mortgage payments to minimize total borrowing costs and eradicate the debt quickly, a 30-year loan is a top choice for today’s home buyers. An additional benefit to those taking out 30-year mortgages is that lower payments leaves owners a bit of ‘cushioning’ in the bank to allow for long-term goals, unexpected expenses and an occasional splurge.
Adjustable Rate Mortgage
This mortgage interest rate can change depending on the market. During the home buying process you may choose an adjustable rate mortgage over a fixed rate mortgage because it may be a less expensive monthly payment than a fixed rate mortgage. Buyers who don't plan to stay in a home more than five years may find this type of mortgage to be the best choice for them and their budgets.
However, it’s important to note a few key numbers when considering an ARM. For example, the standard 5/1 ARM provides a fixed, unchanged interest rate for five years. After this period, the loan will begin adjusting annually as the 5/1 indicates. It is because of these changes that ARMs are referred to as hybrid loans, and ultimately future interests rates will determine whether this is the better deal or not.
FHA Mortgage
The <a href="https://www.akhomeshow.com/blog/your-fha-loan-guide/" target="_blank">FHA mortgage loan</a> is a government-backed loan. It offers broader qualifiers than fixed or adjustable rate mortgages. This makes owning a home reachable for people who don't have a big down payment or who have lower-than-preferred credit scores. FHA mortgages also have lower fees than other traditional mortgages, making them attractive to many first-time home buyers.
Loans from the Federal Housing Administration’s mortgage insurance program are managed through HUD—the Department of Housing Urban Development. One of the greatest perks beyond having a down payment as low as 3.5 percent is the fact that the government insures these loans, making borrowers safe against default settlements. On the downside, buyers will need to carry additional coverage for mortgage insurance.
VA Mortgage
Veterans, and in some cases spouses of veterans, who meet certain conditions can qualify for this type of loan from the Veteran's Affairs Office. They typically offer good terms and can cost less than other types of loans. Another plus is that they can be obtained without any down payment, and they don't require the borrower to get mortgage insurance. Veterans can access this mortgage at their lending institution.
Military service members and their families will typically need to already be qualified for or receiving VA benefits before applying for a mortgage under the VA mortgage program. It’s advised to get in touch with the local Veteran’s Affairs office to begin paperwork and ensure qualification prior to looking for homes. As with FHA loans, VA mortgages are government insured, so lenders consider these loans low-risk and offer lower interest rates.
Jumbo Loan
This type of mortgage covers pricing that is <a href="https://www.loandepot.com/knowledge-cafe/mortgage-411/jumbo-mortgages-explained" target="_blank">higher than the normal home price</a>. Buyers would choose this option if they are buying a large home, or if they are looking to buy in an area where real estate is unusually high. Getting a jumbo loan is a bit more difficult than other mortgages. It requires a larger-than-average down payment, and the home must have two appraisals instead of one.
Jumbo loans are often confused with conforming loans, but conforming loans meet specific underwriting guidelines of Freddie Mac or Fannie Mae—especially where sizing is concerned. These two government-controlled organizations buy loans from original lenders and sell them to investors on the stock market. Essentially, conforming loans conform to maximum size limits and pre-established criteria as set forth by the underwriting guidelines.
Being educated on the type of mortgages that are available to you and what each of them offer is essential. Measuring the pros and cons of each against your long-term plans and budgets will help you make the best decision.
2018-11-19T11:25:00-07:002020-06-15T10:16:47-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2754Red Flags Home Buyers Need to Watch Out For
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/home_buying_red_flags.jpg" alt="Home Buying Red Flags to Watch Out For" />Have you ever met someone that appeared to be just about perfect only to find out later that he or she was riddled with flaws? The same thing can happen with houses—I see it every day in my real estate practice. Sure, it's hard to put the brakes on your attraction when the living room you're standing in is perfect for your family and your furniture, but brake you must ? especially if you notice any of the following warning signs.
Poor Maintenance
There is no excuse for evidence of poor maintenance when a home is on the market. Gutters full of leaves and other debris, torn window screens and overgrown landscaping are all signs that the homeowner is either too lazy or too broke to maintain the home. You should definitely wonder what else was ignored over the years.
Additional signs of deferred maintenance include:
Peeling or chipped paint
Cracks in the walls
Peeling paint and cracks in plaster
Cracked glass in the windows
Stains on the ceilings
While you should never skip the home inspection, it's especially critical if you see any of the signs of poor home maintenance.
Home Red Flags Buyers Should Watch Out For
There are many small things that home buyers must be aware of when they're looking at potential houses to buy. Small maintenance problems are only the tip of the iceberg. Here are some other issues that home buyers must watch for when they're viewing a house for the first time:
A dank or musty smell. This can be an indication that a home has a <a href="http://abcnews.go.com/WNT/story?id=131638&page=1">mold problem</a>.
Appliances that no longer work. If the homeowner has not been keeping up with appliance maintenance, there may be many other maintenance issues they're not addressing.
Stains on the carpeting. Stains on the carpeting are not that surprising, but they can be an indication that a home has not been cleaned or well maintained by the homeowner.
Cracks in the driveway. A cracked driveway can be difficult to fix and replacing asphalt can be very expensive.
Curling or missing roofing shingles. This is an indication that the home's roof is nearing the end of its service life, which can be a very expensive repair indeed.
Poor drainage in the yard. Big puddles after rain storms, sunken areas on the grass and marshy muddy areas on the lawn are all an indication that a property has poor drainage.
Signs of rodents. These signs include rodent droppings under the sink and holes in the walls.
Homebuyers who want to protect themselves from a bad investment must look for all these details and more. It helps to get a home inspection before purchasing a house, as a home inspector will catch problems that home buyers may not notice.
How's That Foundation Looking
A negative soil grade, where the soil in the back or front yard (or both) slopes toward the house instead of away from it is a signal to you to check the home's foundation. This is because during heavy rains the water will flow toward the foundation and may intrude.
Look for cracks that are larger than 1/3 inch, cracks that run diagonally or bulges in the foundation.
HomeAdvisor estimates that the bill to repair a foundation may cost between $500 and $10,536, although the average spent nationwide is $3,838.
The State Of The Neighborhood
There is an old real estate saying that when one home in a neighborhood is put up for sale, two others will follow. We think that if there are more than three homes for sale in a neighborhood you should do some sleuthing to make sure that the neighborhood isn't in decline. Reasons a neighborhood may be going downhill include:
A sex offender moved in
Crime is increasing
A lousy neighbor
The rerouting of traffic
Businesses nearby closing up shop
While the three warning signs mentioned above won't necessarily kill your purchase, they should raise a red flag and require further inspection.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2018-11-14T11:15:00-07:002020-06-15T10:18:25-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2693Buying a Second Home? What You Need to Know About Mortgage Rates
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/second-homes.jpg" alt="All About Mortgage Rates for Second Homes" /> Owning an <a href="https://www.akhomeshow.com/anchorage-homes-for-sale.php" target="_blank">Anchorage AK home</a> can be a great feeling, but for people who travel frequently to a certain location or who often take vacations in a favorite spot, some individuals may consider owning a second home, as well. If paying cash for that second home is not an option, then it's time to get a mortgage to make the dreams of owning a second home come true. But before a buyer heads out to the bank or starts applying for a loan online, there are important things to understand about taking out a mortgage on a home that isn't a primary residence. One of the most important considerations is the mortgage rate.
How Much is the Second Home Mortgage Rate?
Rates for mortgages on second homes vary. When rates are low overall these rates may be <a href="https://www.bankrate.com/finance/mortgages/how-to-buy-a-second-home-1.aspx" target="_blank">close to the rates for first homes</a>. As interest rates rise, though, the discrepancy between rates for first and second homes can sometimes grow larger. That is important to be aware of, since it's better to buy any home where a mortgage is needed when the interest rates are as low as possible. That reduces the possibility that you will end up paying too much in interest simply because of the time the home was purchased. Waiting and tracking interest rates can help.
Why Are Mortgage Rates Different for Second Homes?
Mortgage rates for second homes are different primarily because of risk. If you have a mortgage on a first home and get another one on a second home or <a href="https://www.akhomeshow.com/anchorage_condos.php" target="_blank">condominium in Anchorage</a>, your debt-to-income ratio is higher and there is a greater likelihood of default. Banks help reduce that risk to themselves by raising the interest rate slightly so they bring in a better return on their investment in helping consumers purchase homes. Another risk for the bank is that the buyer isn't living in the home all the time, which puts the property at greater risk for fire, vandalism, and other problems when it's unattended.
What to Know About Making a Down Payment on a Second Home
The down payment on a second home is usually expected to be much larger than the down payment on a primary residence. Whereas the down payment on a primary residence can be as low as 3.5%, the down payment with an FHA loan, the down payment on a second home is usually required to be <a href="https://www.bankrate.com/finance/real-estate/use-home-equity-or-cash-to-make-down-payment-on-2nd-home.aspx">at least 10% or 20%</a>.
In addition, the bigger the down payment, the lower the mortgage interest rates. Second home buyers who want to make their purchase as affordable as possible can make this happen by making a large down payment up front.
While second home buyers have the option of making their down payment with cash on hand, some find that it is wiser to take out a home equity line of credit (HELOC) to make their down payment. Provided that they have equity in their home, this is an excellent way for the home buyer to keep cash on hand for the remodeling, moving and home maintenance.
What Can You Do to Get a Lower Rate?
Getting a rate that's the same as the rate for a first home probably isn't possible, but there are still things that can be done in order to get a lower rate on your <a href="https://www.akhomeshow.com/alaska-log-home.php" target="_blank">Alaska log home for sale</a>. One of those is to watch the rates carefully and buy when interest rates have dipped as low as experts believe they will go. Another way to <a href="https://smartasset.com/mortgage/weighing-the-options-on-second-home-mortgages" target="_blank">get a good rate</a> is to have excellent credit and a good down payment. The more risk a bank takes to give out a loan, the higher they are going to want the interest rate to be to compensate for some of that risk. Buyers with great credit and plenty of money down involve less risk, and that translates to lower interest rates.
Is Paying Cash a Better Choice?
Not everyone can pay cash for a second home, but it can be a better choice for some people. If the cash is available and won't cause a hardship, a mortgage and its resulting interest rate can be avoided. If that money has to be pulled from investments, though, be sure to compare the interest it's earning against the interest that will be saved by not having a mortgage. Paying cash isn't always the right way to <a href="https://themortgagereports.com/21116/second-home-mortgage-qualify-for-vacation-residence" target="_blank">buy a second home</a> even if that money can be pulled together. In some cases, it's best to have a mortgage and pay the interest, so money earning interest in investments can remain where it is.
2018-11-08T09:34:00-07:002020-10-07T11:51:51-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2752Escrow Period: What You Need to Know
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/what-is-an-escrow-period.jpg" alt="Everything You Need to Know About the Escrow Period" />Buying a home can be a long and somewhat complicated process. The period between when the purchase contract is signed and closing is often called the "escrow period". The escrow period is a big part of the home buying process, but not all home buyers know what the escrow period is and what happens while it's happening. <a href="https://www.akhomeshow.com/chugiak_real_estate.php" target="_blank">Chugiak new home buyers</a> who understand the escrow period are more prepared for the home buying process. This FAQ can help home buyers who are not sure what happens during escrow.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
When Does the Escrow Period Begin and End?
The <a href="https://www.lawyers.com/legal-info/real-estate/residential-real-estate/escrow-and-closing-in-buying-or-selling-a-home.html" target="_blank">escrow period</a> begins when a home buyer makes an offer on a home and the seller accepts the offer. The escrow period ends when the buyer's loan has funded. If the buyer is paying for the house in cash, the escrow period ends when the money has transferred from the buyer to the seller. At the end of the escrow period, the buyer gets keys to the house.
What Are the Responsibilities of the Home Buyer During the Escrow Period?
The responsibilities of the home buyer during the escrow period vary from one home sale to the next - or from one state to the next. The real estate professional can help the buyer determine what their responsibilities are based on the details of the home sale.
Appraisal
If the buyer is paying for the home with a mortgage loan, the lender will usually require an <a href="https://www.thebalance.com/appraisal-process-when-buying-a-home-2395235" target="_blank">appraisal of the home</a> being purchased. Often the lender makes the arrangements for the appraiser to come to the home, but, in most cases. the buyer will pay the appraiser's fees. This payment is often a part of the closing costs at the end of the escrow period.
Home Inspection
Home inspections are not usually required, but they are a useful tool for home buyers who want to ensure that the house they're buying is in good condition. Most buyers get the inspection during the escrow period, although some buyers will get an inspection before the escrow period begins. After the home inspection, and according to the terms of the purchase agreement, the buyer can negotiate repairs or credits for repairs. In some cases, the buyer may seek no repairs but an adjustment of the price of the home. This negotiation process must be finished and the home inspection contingency must be lifted in order for the purchase of the home to proceed.
Home Insurance
If the buyer is getting a loan, the home buyer will be asked to get a <a href="https://www.akhomeshow.com/blog/homeowners-insurance-what-home-buyers-need-to-know/" target="_blank">homeowners insurance policy</a> that can be in place when escrow ends. If the home buyer does not get an insurance policy by the time escrow closes, the loan will not fund. Usually the cost of the homeowners insurance is covered in the closing costs.
Down Payment and Earnest Money
The home buyer usually makes an earnest money payment at the start of the escrow period. Usually the earnest money payment is a small percentage of the purchase price of the home. When escrow closes, the earnest money is rolled over into the down payment, which also must be paid at the close of escrow. Altogether, the home buyer may need to pay as little as 3.5% for the down payment, and as much as 20% or more. Whether or not there is a down payment and how much the down payment amounts to depends on the type of mortgage loan the buyer has agreed to.
What Are the Responsibilities of the Seller During the Escrow Period?
During the escrow period, the home usually agrees to give access to the various professionals who come to the house on behalf of the buyer, such as the appraiser and the home inspector. The seller must also pack their personal items and prepare to vacate the home. If the buyer and seller negotiate repairs, those repairs must be made before escrow closes.
How Long Does the Escrow Period Last?
The escrow period usually lasts about 30 to 60 days. The actual length of time may depend on many factors. Sometimes sellers or buyers will negotiate a longer period of time, if it is needed for moving or other logistics.
Contact a Real Estate Professional for More Help
If you're a home buyer who needs more help with the escrow period, contact a real estate professional. Your real estate professional can answer any questions you might have about escrow, and can also help you make smart decisions throughout the home buying process.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2018-11-02T08:43:00-07:002020-06-15T10:24:54-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2706203k Home Loans: Are They Right for Your Home Buying Situation?
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/203k-home-loans.jpg" alt="203k Renovation Loans and How They Can Help Buyers Remodel Homes" />Many home buyers are not familiar with the 203k home loan, but perhaps they should be. Like the more popular standard FHA home loan, 203k home loans are guaranteed by the Federal Housing Administration and share some of the same requirements. A key difference, however, is that the standard FHA home loan requires the home to be in good condition at the time of purchase. Buyers who opt for a 203k home loan, however, are able to <a href="https://www.akhomeshow.com/blog/tips-for-buying-a-fixer-upper-without-regrets/" target="_blank">choose homes in need of updating, repairs, or renovations</a> that they might not otherwise be able to afford to purchase and address. Because the funds for this work can be included in the mortgage, buyers have far more flexibility when choosing the home they will ultimately decide to purchase.
203k Home Loans are Available in Two Options
The first thing prospective buyers should know about the 203k home loan is that it comes in two options. The first option allows buyers to purchase a home that requires major changes or renovations and have the work done after closing on the home. In fact, these loans can even be used when demolishing all or part of the existing home and adding new construction in its place, as long as certain guidelines are followed.
The second 203k home loan option is known as <a href="https://www.thebalance.com/how-to-get-an-fha-streamlined-203k-loan-for-fixers-1798428" target="_blank">the streamlined version</a> and is utilized when buying homes need only minor repairs or cosmetic updates, such as new flooring or interior finishes. As the name implies, the streamlined version of the 203k home loan typically takes less time to process and close than the other 203k home loan option.
Requirements of a Streamlined 203K Loan
The <a href="https://themortgagereports.com/18228/which-fha-203k-loan-home-construction-standard-streamline">streamlined 203K loan</a>, also known as the limited 203K loan, is intended to help buyers who need to make a minor remodel or repair for the home that they want to buy. These repairs or changes have a monetary limit of $35,000, with half of the money payable to the contractor up front. In addition to the monetary limit, home buyers are also limited in the types of repairs that they can make to their home.
For example, home buyers are not allowed to use their 203K loan to make structural repairs or build an addition. If the buyer needs to make a major home remodel costing more than $35,000, the standard 203K loan is more appropriate.
Although the monetary cap is fairly low on the 203K streamlined loan, the loan has the benefit of requiring less paperwork from the home buyer and the contractor. All work done on the home must be completed within 6 months of purchase.
Requirements of a Standard 203K Loan
The standard 203K loan does not have a specific monetary limit. Instead, the limit on the loan is based on the specific property and buyer's ability to qualify for the loan. Compared to the streamlined 203K loans, standard 203K loans require the home buyer and contractor to complete a lot more paperwork. Similar to the limited 203K loan, standard 203K loan requires all work on the home to be done within 6 months of purchase.
<a href="https://www.homebridge.com/renovation-lending/fha-203k-loan/streamline-vs-standard/">Standard 203K loans</a> can be used to make repairs like major remodels, structural alterations, an addition of a garage and structural repairs. This robust loan type is an excellent option for home buyers who want to purchase a home that needs major repair or expensive changes in order to meet the home buyer's requirements.
Other types of repairs that the home buyer can make include:
Major landscaping changes
Full kitchen remodel
Full bathroom remodel
Flooring changes
Installation of appliances
Swimming pool repair
Home buyers can work with their lender to find out whether or not the changes they want to make are allowed under the 203K standard loan.
The 203k Home Loan Makes Purchasing Distressed Properties Easier
A key benefit of the 203k home loan, especially with the current <a href="https://www.usatoday.com/story/money/2017/08/10/sale-home-inventory-20-year-low-baby-boomers-stay-put/555127001/" target="_blank">constricted inventory</a> of available homes, is the ability for buyers to more easily purchase a distressed or damaged property. Buyers can finance up to 110 percent of the projected value of the renovated home, while still taking advantage of the 3.5 percent down payment that has made regular FHA home loans so popular.
It is important that prospective buyers understand, however, that 203k home loans are not designed to be used in DIY home repair situations or by investor-buyers. Only owner-occupants and some types of non-profits are eligible for these loans. Additionally, all work needed on these homes must be bid and completed by approved contractors who are properly certified to perform the work.
Since all renovations and repairs are done after the home purchase has officially closed, this home loan also offers applicants the opportunity to include up to six months of existing mortgage or rent payments in the loan amount. This allows buyers to more smoothly transition into their new home without having to attempt to live in it while the construction work is ongoing.
Understanding Potential Downsides of the 203k Home Loan
While there are many benefits to be had in using the FHA 203k home loan options, prospective applicants should also understand the possible downsides. These can include:
longer processing times because all documents, including contractor bids and inspections, must be approved by both the local lender and the FHA
all work must be able to be completed within a six month time frame from the date of the closing of the loan
interest rates are typically about <a href="https://www.thebalance.com/fha-203k-loan-costs-and-pitfalls-315411" target="_blank">one percentage point</a> higher than some other mortgage options
additional fees, such as a mortgage insurance premiums (MIPs) or supplemental originations fees may apply
all work must satisfy existing building codes and correct any existing health and safety issues
Prospective buyers who are interested in finding out more about the FHA 203k home loan should make an appointment to speak with an approved bank, mortgage lender, or real estate professional in their area.
2018-11-01T08:31:00-07:002020-06-15T10:25:26-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2688Condo, Townhome, Duplex, Twin Home: What's the Difference?
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/home-search-options.jpg" alt="Homes Other Than a Traditional Single-Family" />If you are not buying a single-family home, you might face a dizzying variety of terms for homes that have several units in a building, or just one or two.
Buying a home in a community is often less expensive, with more amenities than you could get with a single-family property. Understanding the differences between condominiums, <a href="https://www.akhomeshow.com/anchorage-townhomes.php" target="_blank">townhomes</a>, duplexes and twin homes helps you to determine which type is ideal for your search.
1. Condominium
The conventional concept of a <a href="https://www.akhomeshow.com/anchorage_condos.php" target="_blank">condominium</a> is simply an apartment that you own. While this is a common arrangement for condos, it is not the only one. Condos can be located in a multi-unit building or be detached from one another. Some condos are structured vertically so that they look somewhat like townhomes.
The defining feature of condos is that they allow you to own the actual living space, and a portion of the property and amenities on the larger lot. Condo owners <a href="https://www.investopedia.com/university/condo-buyers-guide/condo-buyers-guide6.asp" target="_blank">usually pay a fee</a>, not unlike homeowner's association dues, for the upkeep on the buildings and landscaping on the community property.
2. Townhome
Although townhomes are often located in communities just like condos, they are not the same thing. When you <a href="https://smartasset.com/mortgage/advantages-disadvantages-of-buying-a-townhouse" target="_blank">buy a townhome</a>, you own the structure of the building where the home is located and the property underneath it.
Townhomes may have small yards delineated by fencing to separate them. You typically have a lot of freedom to control what you do inside the home. However, you must get agreement from other owners in the building (or the community, if it is a series of buildings) if you want to change anything on the exterior structure of the building.
3. Duplex
Like condominiums, a duplex is considered a multi-family property. There may be two separate buyers, or there could be one buyer who <a href="https://www.bankrate.com/finance/real-estate/owning-a-duplex-can-save-and-make-money-1.aspx#slide=1" target="_blank">purchases the entire property</a> and rents out the other home as an investment. A duplex has two homes located in one structure, with one lot underneath.
The owners usually share control of the property and the exterior structure, much like a condo in a very small community. The co-owners must agree on exterior upgrades and improvements, such as paint colors, before the work can be performed.
4. Twin Home
<a href="https://www.realtor.com/advice/buy/twin-home-different-duplex/" target="_blank">Twin homes</a> are perhaps the most independent of attached housing units. Like a duplex, a twin home is two homes in one structure. They may be mirror-image or not. Each owner owns their portion of the house and the lot underneath it. Unlike a duplex, twin homes have two separate lots. Unless you live in an area with community requirements, you are allowed to paint the structure and design the yard however you like.
You do not need the other owners' approval to make changes. Of course, since you still share an interior wall and close proximity, it makes sense to select improvements that are likely to increase the value of the home as a whole.
5. Co-Op Housing
When it comes to the actual dwellings, there are typically few differences between condos and co-ops. How a co-op home is purchased and owned, however, distinguishes it from other home types.
Unlike a condominium, a co-op is not considered rel property, as owners do not actually own the structure or the land. Instead, they purchase a share in the corporation that owns the property. When the buyer becomes a shareholder, they gain exclusive rights to use the housing unit in the property.
Because co-ops are not real property, the loans used to buy them are different from traditional mortgages, as well. Instead of a mortgage, the co-op buyer will take out what is known as a share loan. A co-op owner will make payments on the loan each month just like they would pay a mortgage. However, they will also pay their share of building maintenance costs, known as pro rata payments.
Despite these additional costs, co-ops can actually be more affordable than other property types. This is because co-op shares are sold at cost, instead of at a premium like condo units.
If a single-family home is not right for you, there are plenty of different options to consider. Buying an attached home could give you the ability to pay a lower price for a home in a nicer area. You might like the simplicity of a condominium, or the relative freedom of a twin home. Knowing the distinction allows you to more clearly express your preferences to your <a href="https://www.akhomeshow.com/agents.php" target="_blank">real estate agent</a> before you go shopping.
2018-10-29T08:11:00-07:002020-06-15T10:35:43-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2749What Do You Need to Do Before You're Ready to Buy a Home?
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/home-buying-guide.jpg" alt="How to Helpfully Buy a Home" />Buying a home can be a delicate process, but if done right it will be highly rewarding in the end. Purchasing a home will likely be the largest investment one will make in their lifetime, so here are some tips to make sure you get the best deal possible:
Tidy up your Credit Score
Finding out your credit score before applying for a home loan will give you the chance to improve wherever needed, getting you a better interest rate and making sure you are even eligible for financing. There are numerous free sites online that you can get a report from, or pick out a good home loan company and lender and they will be able to pull your report for you, usually for free. A good lender will be able to walk through your report with you and point out what needs to be fixed; usually paying off old debt and paying down credit cards will improve your score fairly quickly. Taking care of these items ahead of time will make it easier and quicker to buy a home when you are ready.
Your credit rating matters when trying to finance a home. In most cases, the higher the score and the lower the number of negative items on the report, the better. <a href="https://www.annualcreditreport.com/index.action" target="_blank">Checking your credit report</a> before trying to buy a home is a good idea, because many problems can be caught and fixed before applying for a mortgage. Credit reporting agencies sometimes make mistakes, so keep an eye out for anything that may not seem accurate.
Select a Real Estate Agent
Your real estate agent will be your guide through the home buying process and can fill you in on things to know before buying a house. Because of this, it's important that the real estate agent you choose is reputable. It's also important to choose a real estate agent that you can work with closely.
Ask friends and relatives for references as you choose a real estate agent in your area, then interview each candidate to choose the best real estate agent for your needs. If you're wondering how to purchase a home under special circumstances (for example, you want to buy a home in <a href="https://www.realtor.com/advice/buy/what-is-the-difference-between-short-sale-pre-foreclosure-and-foreclosure-2" target="_blank">foreclosure or a short sale</a>), look for agents who have experience with this type of purchase.
Get Pre-Approved
Contact a loan officer or mortgage broker to find out how much money you can borrow when making a home purchase. Your broker can give you <a href="http://www.homebuyinginstitute.com/homebuyingtips/2009/06/documents-needed-for-mortgage-pre.html" target="_blank">an estimate based on information</a> like your annual income, debt-to-income ratio and other factors. Once you have an estimate, get pre-approved so you can start making offers on your first house in confidence.Start Looking at Listings
The first thing you'll do once you've decided to buy a home is look at the listings in the area where you want to buy. This is a good way to get a sense of prices and types of homes (a <a href="https://www.akhomeshow.com/alaska-log-home.php" target="_blank">log home</a>, perhaps?) available. Looking at pictures can give you a sense of each home's quality, but listings can't compare to seeing homes in person. Make a list of homes that you're interested in buying to give yourself a starting point as you begin your search.
Make a List of Must-Haves
Making a list of must-haves and would-like-to-haves will help focus your search and keep you productive. After looking at a few open <a href="https://www.akhomeshow.com/anchorage-homes-for-sale.php" target="_blank">houses in the Anchorage area</a>, you should start developing a stronger sense of what you do and don't want in a property. A large kitchen, master bedroom and multiple bathrooms are all common amenities that people often prioritize as they look at properties.
Visit Different Neighborhoods
If you have the addresses of the properties that you identified in the listings, drive through neighborhoods to see where each home is located. Make a note of <a href="https://www.hgtv.com/design/real-estate/how-to-choose-a-neighborhood" target="_blank">the pros and cons of each neighborhood</a>, what you like and don't like, and the condition of the homes that you see. Driving through neighborhoods in the area may help you cross some properties off your list or may open up possibilities you hadn't previously considered.
Check Out Open Houses
Open houses are important events for homebuyers. Make a point to see as many open houses as you can to get a sense of what you can expect from homes in your price range.
You don't necessarily have to have a real estate agent to attend open houses, although bringing your real estate agent along will give them a sense of what you like and don't like in a home. Bringing your agent along will also give you an expert eye to point out any <a href="https://www.akhomeshow.com/blog/permit-problems-selling-a-home-with-unpermitted-repairs-or-improvements/" target="_blank">potential issues or benefits</a> they may spot.
Start Visiting Houses Privately
Once you're pre-approved, you've found a real estate agent and you've been to a few open houses, you're ready to start looking at homes privately with your agent. Look at the listings and give your real estate agent a few places that you'd like to see in person. Your real estate agent can take you to as few or as many properties as you'd like.
Once you find your dream home (maybe with some <a href="https://www.akhomeshow.com/alaska-acreage.php" target="_blank">acreage</a>?), your real estate agent can help you put down an offer for a home. If you have more questions about the home buying process, talk to your real estate agent. He or she can also answer your questions and give you guidance that can make the home buying process easier.
What did the Home Inspection Show?
A home inspector can provide a lot of insight into buying a home, and even with a tight budget the inspection process is still important. While homes should pass the initial eye-test, an home inspection can help any buyer determine if there are big issues with the home and may provide some negotiating room to get those problems fixed or have the seller reduce the price.
Of course, all financial situations are unique, so speaking with a financial professional or lender about the pros and cons can be very beneficial when making decisions.
How Much Repair and Remodel Work Does it Need?
Most houses, other than new construction, probably need some kind of repair or remodel work to make them feel like home. And for buyers with a limited budget, that may be even more true. Even so, the home should be solid and safe to live in. So remember that cosmetic upgrades, such as paint, carpet and flooring can be done over time, but the house has to be generally in a livable condition and not in need of major repairs that may eat into your savings.
Is Saving up and Paying Cash Really Better?
In a sense, offering all cash for a home may mean getting more for your money. Additionally, most sellers like all cash offers. However, having the cash to buy a home, doesn't mean you necessarily should. Most homes today are still financed with a mortgage. And with low interest rates, this certainly may be a better route than paying all cash for a home. Should you be buying a home with a mortgage, and on a limited budget, make sure you have a down payment, good work history, and other things that mortgage companies may look for. Also, consider getting prequalified for a mortgage, as this will make an offer all that much stronger.
Purchase at a Realistic Price
This mistake is apparent currently with all the foreclosures and short sales going on in the United States; too many people in the early-to-mid 2000’s bought more home than they could really afford, and consequently are unable to keep up on their mortgage payments. When applying for financing, lenders will review a buyer’s debt to income ratio, and along with other eligibility requirements and will base their approval amount on how much they feel a consumer can afford, usually based solely on gross income and only rent and vehicle payments and credit cards.
Items not taken into account are utilities, food and other day-to-day expenses, so generally an approval amount will be higher than a buyer may have originally thought they could afford. Carefully plan a realistic monthly budget and decide what you can really afford, and what you really need. There is no sense paying too much for a home that you don’t use every inch of; just because your lender approves you for a home purchase up to $400,000 doesn’t necessarily mean you need to be shopping for homes at the top of that price range.
Keep your purchase price at a comfortable level so you don’t run into problems down the road; as a general rule of thumb, individuals and families are recommended to keep housing costs less than 30% of their take-home income each month.
Don’t Pay Too Much
Many buyers are enjoying the current market with lower interest rates and lower home prices than we have seen in years, but some jump the gun and purchase a home for more than it is worth with the mentality that they need to snag that home before someone else gets to it.
Working with an experienced real estate professional will be advantageous in this aspect, as they will be able to research comparable properties and give you a precise range of what a particular property is really worth, regardless of what the list price may be. Purchasing a home should not turn into an auction where the highest bidder takes home the prize. Let your Realtor do their research and keep in touch with them, and be patient. There is no sense in overpaying for a home, especially if you do not have plans to stay there for more than a few years.
While trends can change, with current market statistics and trends the appreciation process will be fairly slow and just because you paid too much for a home when you bought it will not mean you can sell it down the road for more than it is worth.
What are the Monthly Utilities?
Utilities are a part of life—especially when you own a home. But keeping utilities as low as possible is important. Generally, the larger the house the larger the utility bills, so consider the size of the home if the budget is tight.
Are the Taxes and Insurance Premiums High?
High insurance premiums and high taxes are things you definitely want to avoid when buying on a budget. Determining what monthly payments you are willing to make in advance can help make your search more efficient. Consider the locations where there are homes you like, and compare the insurance costs and tax rates to help make the best, most informed choice.
Get a Home Inspection & Appraisal
Unless you are purchasing a home with cash, your purchase will require financing of some sort, and most loan programs will require an appraisal. This goes back to not paying too much; an appraisal will be a detailed report of comparable properties and features that have sold recently, and will reveal what a home’s true value is.
An appraisal is important because it will be the golden number that you should not go above when purchasing that particular home, unless you are asking for repairs or closing costs or some other form of seller paid compensation, in which case the final sale price may be adjusted. A home inspection is vital especially for a resale property because it will point out any problems that the home may have that may not be obvious to the untrained eye.
Having a home inspection performed can potentially save a buyer thousands of dollars in repairs and remodeling down the road, or can even give them the means to back out of a transaction if the damage is so extensive as to leave a home unsafe and otherwise uninhabitable.
Be Patient
This can’t be said enough. Too many buyers make the mistake of buying the first home they like, then come to find out after closing that 4 more just hit the market that are cheaper, larger, or newer.
If you find something you absolutely love, view it a couple times, make sure it fits your needs, and have your Realtor keep an eye on it. Depending on the pricing and amenities, chances are it will sit on the market for a bit. In the Anchorage, Alaska and surrounding areas, the average time a home spent on the active market in 2010 was 82 days, almost 3 entire months.
So think things over before writing an offer, with the volume of homes available for purchase, chances are there will be a few during your searching time that will fit your needs just fine.
2018-10-16T13:18:00-07:002020-10-07T11:56:44-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2748Millennial Home Buyers: What's True and What's Myth
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/millennials-can-buy-homes.jpg" alt="Millennial Home Buying Information" />Millennials are the new up and coming generation of home buyers, so there's a lot of speculation about what Millennials want and how that will affect the real estate market. Millennials have gotten a reputation for being disinterested in home buying for a variety of reasons. These myths are often not true. The truth is that Millennial home buyers are very present on the market and have, in fact, <a href="https://www.mba.org/mba-newslinks/2018/april/mba-newslink-monday-4-16-18/residential/challenging-the-myth-of-millennial-homeownership" target="_blank">contributed to real estate market growth in recent years</a>.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
Myth: Millennials Are Too In Debt to Buy a Home
Student debt is a problem with which Millennials struggle, but this does not prevent many of them from buying homes. Millennials who want to buy a home must be savvy with their money to ensure they have the resources to take them from the earnest money check to the payment for movers at the end. To keep their expectations realistic, many Millennial home buyers <a href="https://www.rejournals.com/millennials-are-driving-up-home-sales,-but-opting-for-the-suburbs-20180622" target="_blank">turn to homes in the suburbs</a>, where prices are affordable and quality of life is good.
Myth: Millennials Can't Afford the Down Payment
Some Millennials believe they can't afford the down payment, without realizing that there are many affordable mortgage options. Some mortgages require only a small down payment, like the FHA loan which requires a down payment of 3.5 percent. Some other mortgage options require no down payment at all, such as the <a href="https://www.akhomeshow.com/blog/a-guide-to-usda-home-financing/" target="_blank">USDA loan</a> and the <a href="https://www.veteransunited.com/realestate/why-va-loans-dont-require-a-down-payment/" target="_blank">VA loan</a>. Home buyers who want to know more about these loans can contact a reputable lender for information.
Myth: Millennials Don't Want to Buy
The myth for many years was that Millennials had been scarred by the housing bubble and recession, and wanted to remain renters as a result. As the housing market has continued to rebound, Millennials have become the <a href="https://www.housingwire.com/articles/42748-millennials-lead-all-other-generations-in-buying-homes" target="_blank">biggest generation of home buyers</a> on the market. The group is also growing! Perhaps Millennials got their reputation for being renters because so many were at the age when renting is common, but that has changed and many are turning to homeownership as the next phase in their life.
Contact A Real Estate Agent for Information
Millennials who are ready to <a href="https://www.akhomeshow.com/anchorage-homes-for-sale.php" target="_blank">buy an Anchorage home</a> can get started by contacting a real estate professional in their area. With help from a real estate agent, many Millennial home buyers are finding it is possible to purchase an affordable home in a safe neighborhood.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2018-10-12T07:50:00-07:002020-06-15T10:42:53-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2745Tips and Tricks for Winning a Bidding War
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/home-buying-bidding-wars.jpg" alt="How to Win a Bidding War Without Upping Your Offer" />A bidding war for a home buyer may be exhilarating during the time of negotiations, but the struggle can quickly spin out of control for buyers who aren't careful. But winning a bidding war isn't always about driving the price up far outside a home buyer's original budget. For a better chance of truly winning a bidding war without going overboard, keep the following tips in mind long before the first offer is ever put on the table.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
Bring Your Preapproval Letter
Prequalified mortgage approval statements and mortgage preapproval letters are very different things to a home seller. Sellers want to know that the buyer is serious about their purchase and that their loan is likely to go through without a hitch. So unless the buyer is prepared with an all-cash offer, their pre-approval letter is the next best thing. This letter shows that an underwriter has already been through the buyer's financial information, as opposed to a prequalified statement which only takes into account the buyer's income as compared to their budget. While pre-approved loans may still fall through for any number of reasons, it's still a good place for buyers to start.
Consider an Escalation Clause
Many states allow clauses or amendments in purchase and sale contracts called, "escalation clauses". An escalation clauses <a href="https://www.thebalance.com/should-you-use-an-escalation-clause-1798833" target="_blank">state how much a buyer will pay for the home</a> in the case of multiple bids. For example, they may state that the buyer is willing to pay up to $200,000 on a home that's priced at $198,000 in the case of multiple offers. They're typically submitted by the real estate agent as part of a purchase offer, and they're designed to protect both the buyer and the seller. They both ensure to a seller that the buyer really does want the home, and they put a hard cap on the buyer so their emotions can't drive the sale.
Experts recommend staying within a reasonable amount of the total cost of the home should buyers choose to include an escalation clause. These clauses can be valid for up to 20 days in the case of another buyer being chosen who ultimately fails to come through with the promised funds. When using an escalation clause or simply bidding up the costs of a home, remember that if the home is being mortgaged financed, there is a possibility it will not appraise if the selling price becomes too high.
Offer Additional Perks
Buyers who know what a seller is looking for can sometimes win bidding wars without ever upping their offer. Is the seller in a hurry to leave their home and start their new job across the country? Buyers can promise an expedited escrow and pushed-up moving dates. Does the seller look exhausted by the mere mention of contingency clauses? Ask the real estate agent to <a href="http://www.homebuyinginstitute.com/purchase-contract-contingencies.php" target="_blank">streamline the paperwork</a> by reducing the demands so there's less effort on the seller's end.
The more a <a href="https://www.akhomeshow.com/wasilla_real_estate.php" target="_blank">Wasilla home buyer</a> stresses to the seller how easy they can complete the sale, the more likely it is that sellers will start to see the value of trading a few extra dollars for a lot less hassle. For example, if one bidder is offering more for the home but needs the seller to first make several repairs to the home as the result of a home inspection (including rewiring the entire kitchen), the seller could very easily trade the higher bidder for a more flexible buyer.
Bidding wars are an opportunity for buyers to use their street smarts to come out on top. And while every situation is different, it all comes down to finding different ways to work within the home buying framework. Seeking the advice of a real estate expert can also help buyers come out on top.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
2018-10-04T06:42:00-07:002020-10-07T11:46:18-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2726Homeowners Insurance: What Home Buyers Need To Know
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/home-insurance-guide.jpg" alt="How to Insure Your Home" />
Homeowners insurance helps protect homeowners from financial liability in the event of an accident or disaster in their home. Homebuyers just purchasing a home often start looking into homeowners insurance as soon as they enter into the escrow period. Those buyers who know a little bit about homeowners insurance when they start to investigate it may be able to decide more quickly and definitively what type of homeowners insurance policy for them.
Lenders Require Homeowners Insurance
A home buyer paying in cash does not need to get homeowners insurance if they don't want to. However, a home buyer who is borrowing money to pay for their home will often be <a href="https://www.simplyinsurance.com/when-does-the-lender-require-you-to-purchase-the-homeowners-insurance-policy/" target="_blank">required to get homeowners insurance</a>, regardless of whether or not it is desired. Mortgage lenders require homeowners to have insurance as part of the <a href="https://www.akhomeshow.com/blog/a-home-buyerx27s-definitive-guide-to-traditional-mortgages/" target="_blank">mortgage lending process</a> in order to protect the bank's investment. This proof of insurance will be required upon the close of escrow, or the bank will not fund the loan.
Once the home has been purchased, the buyer must maintain his or her <a href="https://www.insurancedodo.com/homeowners-insurance/" target="_blank">homeowner's insurance</a> policy. If the buyer allows homeowners insurance to lapse, the mortgage lender will require the homeowner to pay for insurance through the monthly mortgage payments. These policies are usually far more expensive than standard homeowners insurance policies.
Most Homeowners Insurance Policies Cover the Same Disasters
A typical homeowners insurance policy will <a href="https://www.iii.org/article/what-covered-standard-homeowners-policy" target="_blank">cover a variety of disasters</a> and accidents that can cost homeowners money. Many policies cover incidents like theft, wind, lightning strike, damage from hail, and other weather events. Many policies also come with coverage that can pay medical bills if someone is injured on the property. This coverage only kicks in after the homeowner pays the deductible. Homeowners should always keep on hand money for a deductible to ensure that the home will be protected if damage occurs.
Homeowners Insurance Doesn't Cover Everything
Some homeowners are surprised to learn what their insurance policy does not cover. For example, most homeowners insurance policies will not cover earthquakes or floods. <a href="https://www.akhomeshow.com/palmer-real-estate.php" target="_blank">Palmer homeowners</a> who want protection from these common disasters must pay for separate coverage. In low-risk areas, these types of coverage are often relatively inexpensive, but in high-risk areas, this type of insurance can be very expensive.
Premiums Are Paid Annually
Typically, homeowners pay their homeowners insurance once per year. Some types of homeowners insurance will allow their customers to pay on a semi-annual or even monthly basis, but often homeowners must pay extra money for this luxury.
Ways to Save Money on Your Home Insurance
<img src="https://www.akhomeshow.com/images/couple_in_house_money_dollars_home_sale_123rf_opt_500.jpg" alt="" class="img_box_left" />
Homeowners insurance <a href="https://www.valuepenguin.com/average-cost-of-homeowners-insurance" target="_blank">costs about $1,100 per year</a>, although this amount varies from one state to the next. Bigger, more expensive homes cost more to insure than smaller, more modest properties. There are many ways that homeowners can save on their homeowner's insurance.
Buying a newly constructed home in Alaska will automatically lower your premium. Insurers like the fact that new homes have new wiring, plumbing, and HVAC systems. If the home is constructed of materials that resist fire, such as concrete, brick, or stone, you’ll save even more money on your homeowner’s insurance premium.
Let’s take a look at three other ways you can save on your homeowner’s insurance when you <a href="https://www.akhomeshow.com/alaska_new_homes.php" target="_blank">buy a new house in Alaska</a>.
Smaller Homes Are Cheaper to Insure
This only makes sense when you understand that your premium is based not on the value of the home, but the cost to rebuild it. Since it costs less to rebuild a smaller home than a large one, you’ll save money on insurance if you keep your square footage to a minimum. Sure, you need enough room to accommodate your family and your lifestyle, but ask yourself whether or not you really need 5,000 square feet of living space.
Add Some Money-Saving Extras
Ask your insurance agent if you’ll save if you have the builder add storm shutters or a reinforced roof. Anything that you add to fortify the structure of the home may help lower your premium.
Add Safety Features
Smoke detectors are a given in newly constructed homes and, yes, they’ll save you a small pile of change on your insurance. But ask your insurance agent how much you can save if you go beyond the basics, such as beefing up the home’s security with a high-end security system and a more sophisticated home sprinkler system.
Your insurance agent has a wealth of information on what you can do to save money on homeowner’s insurance so meet with him or her at the beginning of the construction process.
Many homeowners can also save money on their insurance by purchasing homeowners insurance from the same company that they pay for car insurance. Many insurance companies will offer a discount to customers who bundle their insurances into one.
When choosing a policy, it's important for homebuyers to remember that the lowest-cost insurances may not offer all the coverage that homeowners need in the event of a disaster. Spending a little extra money on insurance can help save a lot of money in the event of a disaster.
Contact Your Insurance Company
If you're a home buyer seeking homeowners insurance, contact your insurance company today. Getting quotes during the escrow process can help make it easier to decide which type of insurance to buy.
2018-10-02T11:04:00-07:002021-05-12T11:03:06-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2742Saving For a Home Down Payment
<img class=" img_box_right" src="https://assets.site-static.com/userfiles/1715/image/down-payment-saving.jpg" alt="How to Realistically Save for a Down Payment" />Down payments can be scary, especially for first time home buyers. 20 percent of the home’s total value is the standard for a down payment, with some variations, but even on a $200,000 home, that still comes to a $40,000 down payment. A down payment can seem like a lofty goal, but here are some <a href="https://www.akhomeshow.com/blog/how-to-save-money-buying-your-home/" target="_blank">strategies for buyers to start saving</a> that don’t involve giving up coffee and avocado toast.
Buy Generic and Store Brands
Many large chain stores offer their own <a href="https://www.threethriftyguys.com/2016/06/brand-name-vs-no-name-brand-a-price-comparison/" target="_blank">store brands</a> as alternatives to name brands. These store brand products are often very similar to their name-brand counterparts, and they’re often far less expensive.
This doesn’t just apply to cookies and paper towels, though. Many over-the-counter medicines, like pain killers and eyedrops, also have store brand <a href="https://www.webmd.com/healthy-aging/generic-drugs-answers-to-common-questions#1" target="_blank">alternatives that are just as effective</a> but cost a fraction of what the name brand drugs do.
Use Public Transportation
Not everyone can live in New York City and have access to subways, but most cities have buses where people can buy monthly or yearly passes to save on the fare cost. Taking the bus to work and school can reduce money spent on gas.
But while public transportation can be convenient, it isn’t suited for everything. Keep the car for errands that require transporting a lot of things, such as grocery shopping, and enjoy the feeling of not having to fill the gas tank nearly as often.
Plan Meals Weekly
Taking some time to sit down and plan meals will help reduce the money spent at the grocery store because it cuts out unnecessary buying. Likewise, it also helps reduce waste from food going bad before it can be used, and on top of that, eating at home is often <a href="https://blog.cheapism.com/eating-at-home-vs-eating-out/" target="_blank">cheaper than eating out</a>.
Additionally, buying soft drinks or alcohol while eating out can easily boost the meal’s bill. Depending on the restaurant, <a href="https://www.aol.com/2010/09/08/top-5-food-mark-ups-where-restaurants-make-huge-profits/" target="_blank">one soft drink can cost up to $3</a>, while one glass of wine can cost half of what an entire bottle would be from a grocery store. Ordering water is free, and those saved dollars can add up quickly.
Check Out the Local Library
Contrary to popular belief, <a href="http://publiclibrariesonline.org/2013/04/community-centered-23-reasons-why-your-library-is-the-most-important-place-in-town/" target="_blank">libraries aren’t just for checking out books</a>. These days, libraries have everything from music to video games, all available to borrow for free. Why spend $26 on a hardcover novel when it’s sitting on the shelf at the library at a 100% discount?
Cancel What Isn’t Being Used
Nowadays, there are so many different options for watching television that many people have subscriptions to services like Netflix and Hulu on top their normal cable. If this sounds familiar, think about canceling the ones that don’t get used very often. For internet streaming, this can save around $12 per month, and even more for cutting cable.
Shop Around
Finding deals is easy thanks to the internet. Whether shopping for clothes, a new phone, or anything, it’s easy to find online coupons and sales to get the best deal.
Pay With Cash
It can be difficult to have an accurate idea of what’s in a bank account after a long day of running errands, but buyers will always know how much money is in their wallet. Paying with cash can give buyers a better idea of exactly how much they spend that just <a href="https://www.investopedia.com/articles/pf/08/pay-in-cash.asp" target="_blank">isn’t possible with a credit card</a>.
Other Down Payment Options for Homeowners
Even after saving, sometimes it can be impossible to save a full 20 percent for a down payment. Consider some of the following loan options for a lower down payment on an Alaska home.
No-Down-Payment Loans
If you are a current or former member of the United States military or the spouse of a deceased member, you may qualify for what is one of the best loan programs in the country, offered by the United States Department of Veterans Affairs. The VA doesn’t grant the loan, a conventional lender will do that. Instead, the VA offers a guaranty making the lender far more likely to trust borrowers with less-than-perfect credit and no down payment.
If you qualify, you also won’t have private mortgage insurance (PMI) tacked onto the loan, saving you a significant chunk of money every month. There is a VA funding fee that you’ll need to pay and that amount varies, according to certain conditions.
We’re happy to refer you to one of our lending partners who can fill you in on the details about the VA home loan. There is also no mortgage insurance requirement, which saves you money on your monthly payment.
The U.S. Department of Agriculture (USDA) also provides home loan programs, one that is similar to the VA loan in that it offers a guaranty to the lender and another that is a direct loan from the USDA. Both loans have no down payment requirement. The catch is that you must buy a home in an area that the USDA considers rural and the home must be “modest,” meaning it contains no extra bells and whistles, such as a swimming pool.
Down payment assistance programs offered by various government agencies can go a long way toward helping you buy a house in Alaska. Here in Southcentral you may qualify for help from <a href="https://www.ahfc.us/buy/resources/down-payment-assistance/" target="_blank">Alaska Housing Finance Corporation</a>. Several organizations offer help with closing costs as well.
Low Down Payment Loans
Most homebuyers are familiar with the home loan program offered by the Federal Housing Administration, or FHA for short. It is, in fact, the most widely used loan program by first-time homebuyers. Down payment requirements range from 3.5 percent to 10 percent, depending on how your finances look and the lender’s requirements. You will be required to purchase PMI and, unlike a conventional loan, you must continue paying the premium for the life of the loan.
If your credit score is at least 620, you agree to take homeowner classes, completely document your assets, income and debt and you can pay for PMI, you may qualify for a <a href="https://www.fanniemae.com/singlefamily/mortgage-products" target="_blank">Fannie Mae</a> or <a href="http://www.freddiemac.com/singlefamily/mortgages/" target="_blank">Freddy Mac</a> home loan. These have a 3 percent down payment requirement
Saving for a down payment may seem daunting, but it doesn’t have to be difficult. On top of regular saving by putting aside money from paychecks, a few simple lifestyle changes can go a long way when it comes to watching those savings grow.
2018-09-24T08:11:00-07:002020-06-15T11:53:24-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2719Picking a Real Estate Agent: What to Look For
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-86/choosing-best-agent.jpg" alt="How to Choose a Good Real Estate Agent" />Whether buying or <a href="https://www.akhomeshow.com/blog/a-basic-guide-to-home-selling/" target="_blank">selling a home</a>, everyone should worth with a real estate agent. An agent is an invaluable asset that absolutely cannot be skipped. But what should buyers and sellers look for when hiring a good agent? Here are several different agent traits to keep an eye out for so all home buyers and sellers can find the best agent for their needs.
An Agent With Experience
Experience is key when it comes to being an agent because it takes time to build knowledge and make connections in the industry. Many agents recommend to work with an agent who has <a href="https://www.thebalance.com/experienced-real-estate-agents-1798883" target="_blank">at least five years of experience</a>. Any less means they’re still learning the ropes, and while this may not be a bad thing, they can be more prone to errors.
Real estate agents don't become expert negotiators by doing only a few deals a year. They immerse themselves in the local housing industry; understand the current economy and how it affects their clients and the sale of their largest investment, their home.
A full-time agent isn't necessarily a better agent, but they are a must if you'll be doing a short sale, selling a <a href="https://www.akhomeshow.com/anchorage-luxury.php" target="_blank">luxury home</a> or undertaking any other type of complicated transaction. Don't be afraid to ask the agent how many hours a week he devotes to real estate and how many transactions he's performed over the past 6 months.
An Agent With the Right Knowledge
Many agents like to work in just one particular part of the real estate market. Whether it’s selling single family homes or buying condominiums, it’s important for buyers and sellers to look for an agent who works with the same type of property. It’s common for agents to keep public record of the homes they’ve helped buy and sell, so buyers and sellers can get a feel for the agent’s niche by looking through them. Going to an agent who exclusively deals in single family homes to buy a condominium may end in rejection, so it’s best to be familiar with an agent’s work before approaching them.
An Agent With Happy Clients
<a href="http://jensenandcompany.com/top-10-reasons-to-hire-a-real-estate-agent/" target="_blank">Hard-working, successful real estate agents</a> have testimonials from their clients that they'll be happy to show you. They'll also be happy to supply you with the names and phone numbers of past clients. What you want, however, are not hand-picked references; you want the names and numbers of the agent's last three clients. Then, do your due diligence and call each one.
All agents should have reviews of their services easily accessible—after all, word of mouth is the best form of advertisement. Read reviews in order to get an idea of how the agent works, and if there are complaints or compliments that come up regularly, it can be expected that they will likely come up while working with them, and the buyer or seller should act accordingly. Recommendations from friends or family can also go a long way, and agents love to see that past clients liked them enough to recommend them in the future.
An Agent Who is Realistic
Sometimes, in an attempt to gain more clients, agents will give buyers and sellers interested in their services unrealistic estimates for how quickly they can sell a home or how much they can get for one. When interviewing agents to hire, if three agents say they can sell a <a href="https://www.akhomeshow.com/chugiak_real_estate.php" target="_blank">Chugiak home</a> for $200,000, but the fourth agent says they can sell it for $220,000, this should set off a red flag.
An Agent With a Marketing Plan
The agent that lists your home has many jobs, but the most important is marketing your home, especially in a slow market. Ask for a copy of his or her marketing plan and, although it may be uncomfortable, ask how much money the agent spends to market each listing. A robust marketing plan requires a hefty budget to put into motion. This is where you'll weed out the amateurs from the pros.
Ask for printouts of the <a href="https://www.akhomeshow.com/agents.php" target="_blank">real estate agent's</a> last three listing. Check the photos ? there should be lots of them and they should be professional-looking. If there are photos of an open toilet, dark rooms or blurry photos, find another agent. Read the agent's remarks section to ensure that he or she used all of the space provided to entice buyers to visit the home.
While there are many agents who will try to sell you on the fact that they are the "neighborhood expert," the best agent is the one you feel comfortable with, the one that takes the time to communicate with you and the one that is a marketing genius. Since you're paying for his or her services, demand the best.
What Questions Should You Ask a Real Estate Agent?
When you hire a real estate agent to help you buy or sell real estate there are several questions you can ask to better help you determine whether you are working with the right person or not. Choosing the wrong real estate agent the first time can not only cost you money but could potentially leave you with many problems.
In this report you will find a list of several questions that are crucial to ask but most people never think to. Before you work with another real estate agent be informed whether they are the right person for the job or not.
Question #1: Do You Practice Real Estate Full or Part Time?
You might think that real estate can be a part time job. In most cases that is far from the truth. real estate agents can work many hours a week and need to be available at the drop of a hat or somebody else will beat them to the sale. It is important to have a full time represent you for this very reason. You also need to make sure you can contact them anytime day or night and get a prompt response.
Question #2: What Education Have You Completed?
In the state of Alaska there is currently only 20 hours of education required to obtain a real estate license. There are many classes outside of this that can be taken to increase a real estate agent's knowledge. The mandatory 20 hours just covers the basics but definitely does not prepare a new real estate agent well for real life experiences. Make sure you not only find an experienced real estate agent but one who knows and practices the law!
Question #3: What Designations Have You Earned?
Designations show the accomplishment of certain sales and real estate classes as well as past performance in the industry. real estate agents with designations have generally been in the business long enough to gain the experience you are looking for. Some of the possibilities for designations are, CRS, GRI and E-Pro Certified.
Question #4: What Do You Do Each Month For Marketing?
Whether you are buying or selling it is important to work with a real estate agent who has a presence. This not only helps bring buyer to your home or find you properties before they are listed but can help with negotiating.
Question #5: Have You Received Any Awards In Real Estate?
An established real estate agent should have a list of awards they have received throughout their career which can help solidify they are what they say. Whether it is a Top Producer award from their company, provided they are not the only employee, or national recognition from their broker's franchise it is a good idea to check and make sure you are working with the best professional possible.
Finding the right agent may leave some buyers and sellers overwhelmed, but finding someone reputable isn’t impossible. Using these suggestions can help narrow down the list and help anyone find the right agent for their needs.
2018-09-18T13:50:00-07:002020-06-15T11:54:34-07:00Ryan Tollefsentag:akhomeshow.com,2012-09-20:2730How Credit Scores Affect the Home Buying Process
<img class=" img_box_right" src="https://www.akhomeshow.com/uploads/agent-1/credit-score-home-buying.jpg" alt="5 Things to Know About Credit Scores Before Home Buying" />When beginning the <a href="https://www.akhomeshow.com/blog/buying-a-home-this-spring-tips-to-get-started/" target="_blank">home buying process</a>, prospective owners will undoubtedly have several financial considerations to ponder. One very common consideration homeowners may come across is applying for a home mortgage. Buying a home calls for attention to an applicant's credit score. With this information, home buyers will understand how their credit score is used throughout the home buying process.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
How Many Credit Scores Can People Have?
Although many people are familiar with the idea of a credit score, they may not know precisely how many credit scores are available. There are three reporting bureaus: Experian, Equifax, and TransUnion. Each of these bureaus generate a score ranging from 300-850 based on their own records, which is called a Vantage Score. Fair Isaac Corporation is an entity independent of the reporting bureaus that builds credit scores, also set from 300-850, known as FICO scores. FICO scores are typically used by lenders to approve an application for a mortgage. Since the company regularly releases new scoring models based on updates or industry-specific conditions, one person may have dozens of FICO credit scores.
Do Lenders Use Different Scores for Approving Mortgages?
Since there are different <a href="https://www.myfico.com/credit-education/credit-score-versions/" target="_blank">scoring models</a>, it is not surprising that mortgage lenders might use another score than one designed for credit card or automobile purchases. FICO is currently on a scoring model known commonly as FICO 9. However, most banks, credit unions, and other lending institutions have yet to adopt the model to approve a variety of loans. Scoring models may emphasize different aspects of a person's credit report, such as history, total debt, or timely repayment. As such, the scores may vary significantly from one model to the next, even if the scores come from information on the same credit bureau.
Fair Isaac claims that the scoring model preferred for mortgages depends on the reporting bureau. However, it says that lenders most often use FICO 2, 4, or 5 to determine this aspect of an applicant's creditworthiness. In an application, the lender may choose to average the three scores, take the middle score, or accept the lowest score when determining mortgage loan options.
What Is the Minimum Score Needed for a Mortgage?
The credit score only tells the lender a few things about the potential borrower's interest and ability to repay their debts. Lenders have some leeway in setting the limits of the credit scores they prefer or require from mortgage applicants. Most conventional loans conform to the requirements set by Freddie Mac and Fannie Mae, government-run organizations that buy qualified mortgage debt. Lenders offering conforming loans usually require buyers to have a credit score of at least 620 in order to have a successful application. Loans backed by the FHA may be approved with credit scores as low as 500. However, applicants with credit scores in the 500s could be required to make a larger down payment or shoulder other fees.
Which Factors Determine Who Gets the Best Loan Terms?
Having a credit score that is good enough to get a mortgage is only the first step. Once people have the minimum score needed for basic approval, the lender will analyze the level of their score to determine the kinds of loan terms they can qualify for. Many aspects of the loan are dependent on the applicant's credit score, such as:
required assets in reserve
minimum down payment
<a href="https://www.bankrate.com/finance/mortgages/how-credit-scores-impact-your-mortgage-rate-1.aspx">mortgage interest rates</a>
how much to pay in mortgage insurance, if required
maximum debt-to-income ratio
Those who have higher credit scores will gain access to more loans offered by the lender. For example, someone with a credit score in the 600s might be able to qualify for a loan, but have to make a larger down payment and pay a higher interest rate.
What Can Home Buyers Do to Increase Their Credit Scores?
When people are preparing to buy a home, they should be careful about any decision they make that could <a href="https://www.creditcards.com/credit-card-news/5-credit-donts-homebuyer-applying-mortgage-1586.php" target="_blank">affect their credit</a>. The best thing they can do is to obtain a copy of their credit reports and dispute any inaccuracies, with time for mistakes to be wiped off the report before the application.
No Late Payments
You’ll need to be extra careful that you pay all of your bills on time because late payments and non-payments are two of the biggest credit score wreckers. Try to keep your credit card balances to within one-third of your limit. If you have some extra cash, put it toward paying down some of the highest balances.
Resist the Temptation to Get New Credit
There are probably lots of things you’d like to purchase for the new home and it seems logical to get a credit card to take care of those purchases. Resist the temptation until after you close on the house because any inquiry will ding your credit score. Lenders are put off by borrowers who are taking on more debt while asking for money.
Decrease Your Debt, Raise Your Income, or Both
The lender’s underwriter will look at your income compared to your debt by using a calculation known as your debt-to-income ratio (DTI). If it’s too high you may not get the loan. The best way to prevent this is by paying down debt, making more money, or both.
Having the right credit score to get a good mortgage can be a difficult thing for <a href="https://www.akhomeshow.com/big-lake-homes-for-sale.php" target="_blank">Big Lake home buyers</a> to determine, especially once they understand how many scores they truly have. By answering these questions, people will know how their credit score may be used, and what kind of score they need to succeed.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
2018-09-17T13:57:00-07:002020-06-15T11:54:49-07:00Ryan Tollefsen