Real Estate Information Archive

 Eighteen percent of FSBO sellers indicated that preparing the home for sale was the most difficult task when selling without the assistance of an agent, followed closely by understanding and performing paperwork (16 percent) and selling within their desired time frame (15 percent).

As for profit — after all is said and done, FSBOs don’t always come out with fatter wallets. Again, the numbers tell the truth.

Homes sold with the help of a real estate professional in 2006 sold on average for 32 percent more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions.

If you are considering building a new home in the Anchorage or Mat-Su Valley, it's a good time to start.  Les Bailey and Associates is well versed in the new construction process and will help you get into the home of your dreams within your budget. 

If you currently have a home you need to sell before you can build your new home, don't worry, Les Bailey and Associates has a "Guaranteed Purchase Program" to ensure you get into your new construction home.  If you are interested in this program, you can contact Les Bailey and Associates on the web at www.LesBaileyandAssociates.com or www.RealEstateInAk.com. 

From the time you decide to start a new construction home and enter into a Purchase and Sale Agreement, you can expect approximately 140 to 180 days for completion of your new home.  During this time, you won't make a single mortgage payment on your new home because the Builder assumes all interest in your lot and construction loan during the construction process.  That essentially buys you approximately 6 months to get your current home sold if you need to do so.  Keep in mind, it takes more than only placing a For Sale sign in your yard to get your home sold now.  It is crucial you list your home with a top producing realtor with an agressive marketing system.  Don't just list with any realtor because most realtors can't afford to agressively market your home.  Make sure you do your homework and list with a realtor with a proven marketing system. 

If you need to buy or sell a home, why would you use a realtor without a proven track record or one that is not successful?  It makes no sense to me.  The average realtor sells only between 8 to 12 homes a year, that's not very many.  Choose a realtor, preferably a real estate team, that sells between 80 to 100 homes a year at least. 

You might think a top producing realtors are too busy to deal with you on an individual basis.  That is why a proven realtor implements a team approach to the real estate industry.  If you need attention, there is always someone available to tend to your individual needs. 

Plus, top producing realtors have the income to agressively market your property.  Realtors that do a lot of business year in and year out, breed activity.  The more they can market, the more activity naturally comes.  You don't want to choose a realtor that can't afford to maintain a heavy web presence and other marketing avenues and you certainly don't want a realtor that can only afford to submit a line ad in the local newspaper. 

Please be "wise" when interviewing your next realtor.  If you want success and knowledge, choose a top producer in the industry.

With all the "doom and gloom" portrayed in the media regarding the real estate market in the nation, it is no wonder why people are weary and skeptic about buying or selling a home at the moment. The widespread "doom and gloom" is over exagerrated and certainly does not affect the Alaskan real estate market like other markets in the Lower 48. The doom and gloom is a reality however in some markets that enjoyed super high appreciation rates, forcing first-time homebuyers into "creative" financing such as Adjustable Rate Mortgages, etc.  The reality is there really isn't a "doom and gloom" real estate market.  The market hasn't crashed, it's just corrected itself.  Property values are still appreciating, just not at extreme highs.  In Alaska, we have enjoyed continued, steady appreciation on real estate and our economy remains strong and is projected to grow over the next decade. With such a strong economy and healthy appreciation on real estate, why wouldn't you buy a home in Alaska?

In past times, prospective buyers were loyal to their realtors, but that is not the case so much anymore.  Nowadays, with the advent of the internet, buyers start their home search on the internet and when they want to see a property, they call up the listing realtor and have them show the property.  They do this for each and every property they want to see.  This is not a wise and productive use of your time when searching for a home.  It is better to choose one realtor you feel comfortable with and stick with him or her.  If you are loyal to one realtor, that realtor will get to know your needs and wants more intimately and will work hard to get you into the home you desire at the best price available.

Better decisions are made when they are based on good financial information. Knowing there are alternatives helps to determine the right choices.

Estimated Purchase Costs – It is important to know how much you’ll need to buy a home not only for the down payment but for all of the fees that are charged in connection with getting the loan and conveying title.

Mortgage Qualification –Discover what size mortgage you can qualify for using the same guidelines that a mortgage company uses.

80-10-10 – This report will show you the savings achieved by eliminating Private Mortgage Insurance.  Not only will you save money in the initial purchase costs but also in the monthly payment.

Alternate Financing Plans – Choices will help you to make a better decision as to how to finance your new home.  You deserve to know what options are available and that is exactly what you’ll get.

Mortgage Accelerator – Discover the advantage of adding an additional amount of principal to your fixed rate mortgage on a regular basis to shorten the term and save tens of thousands of dollars in interest.

* Less than one percent

While the most frequently stated reason for selling their home by themselves is to save the commission, in many instances, it isn’t possible to do that.  In every home sale, someone earns the commission.  It is usually the real estate sales person who brings experience and expertise to the transaction.  The seller might “earn” the commission but will do so at the expense of other business or personal activities assuming they know what to do.

If a Realtor is not involved, the buyer might “earn” the commission because they take on the responsibilities of locating an acceptable home, securing the most advantageous financing, negotiating an agreement, arranging inspections, and becoming familiar with all of the necessary steps.

Obviously, it is impossible for both parties to “save” the commission.  Since there is usually a surplus of homes on the market at any one time, the buyer is encouraged to continue his property search until he finds a seller that will sell the property for a reduced amount.

Selling a home to a friend or relative can actually have its own challenges because the buyer again is hoping to get a better “deal” due to the personal nature of the relationship with the seller.  Unless the seller has a benevolent intention, the commission that is trying to be “saved” is given to the buyer.

It can be difficult for a homeowner to deal with friends or relatives with the objective of maximizing their potential equity.  The benefit of a third party negotiator can be very helpful.

1.      Pride of ownership is a key reason for wanting your own home.  Decorate it to your own taste and enjoy all of the benefits while making a great investment.

2.      Real estate over time has been considered a good investment because most of it has appreciated.  The effects of leverage can multiply the increase when borrowed funds are used to purchase the home.

Many times, the largest investment a person owns is their home.  Homes have been a good hedge against inflation. Homeowners build equity and can borrow against that equity for a variety of reasons that could include college, medical, or to start a business.

3.      Qualified mortgage interest and home equity loans are deductible for Income Tax purposes.

4.      Property taxes on a first or second home are deductible on for Income Tax purposes.

5.      A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years.  There is no age requirement for taking the capital gains exclusion like the “over 55” rule in the past. 
It is not necessary to purchase a replacement home more expensive than the one sold.  Homeowners can buy a more or less expensive home with no tax consequences assuming their gain is less than the allowable amounts.

6.      Preferential tax treatment on gains that have been made from capital assets held more than one year is permitted by IRS.  This is especially important for homeowners with gains in excess of the allowable exclusion.

7.      Mortgage payments include the interest for the time that the money has been used and principal to retire the debt over a period of time.  Each month part of the payment is for principal accumulation.