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June 25, 2018

Anchorage Weekly Residential Market Report Update #19

Anchorage Real Estate Market Report Statistics For June 23 2018

Below are some of my notes from the dialogue of the video to outline the impact interest rates play:

 

I just wanted to take a second to talk about interest rates

Year over year we are up by 0.71%

 

Compared to 2016, we are up just over 1 full percent.


Doesn’t sound like a lot, but lets break it down.

 

If you bought a house and financed:

$300,000 @ 3.6% interest

Monthly payments are around $1,364

Total interest paid over the life of a 30 year loan is $191,016.14

 

If you bought the same house right now

$300,000 financed at 4.62% interest

Monthly payments are $1,541 – that is $176 per month more NOW

Total interest paid over the life of a 30 year loan is $254,947.76

That is $63,931.62 higher than in 2016

 

Let’s say the interest rates jump to 7%

Same house

$300,000 @ 7%

Monthly payments of $1,996

Total interest of $419k

 

So, you’re payments on the financed portion would be 30% higher

And you’d pay 64% more interest

 

May 26, 2018

Anchorage Weekly Residential Market Report Update #16

Anchorage Weekly Residential Market Report Update #16 May 26th, 2018

Anchorage Real Estate Market Report Update HERO Realty Group

 

Everything is looking pretty good! Interest rates are staying stable, price of oil is up, and the spring / summer rush for real estate is here! Let us know if you have any questions and enjoy your Memorial Day Weekend!

Posted in Education
May 13, 2018

Anchorage Weekly and Monthly Residential Market Report Update #14

Anchorage Market Report #14 - HERO Realty Group

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update May 12th 2018 - Have a great weekend! The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't hire a zero, hire a HERO! =-) Advice for Buyers: https://youtu.be/vBJ2VaKN7-o?t=3m22s (advice starts at 3 minutes 22 seconds) Advice for Sellers: https://youtu.be/vBJ2VaKN7-o?t=8m21s (Advice starts at 8 minutes 21 seconds) Look at homes for sale: http://www.propertiesofalaska.com/anc... OR http://www.herorealtygroup.com Get a value on your home: http://www.propertiesofalaska.com/cma... What do we do to sell your home? Visit: http://www.propertiesofalaska.com/sel... https://www.instagram.com/herorealtyg... https://www.facebook.com/herorealtygroup E-mail questions, or to get reports, James @: james@herorealtygroup.com

 

May 5, 2018

Anchorage Residential Real Estate Market Weekly and Monthly Update #13

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update May 5th 2018 - Happy Cinco De Mayo! The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't be a zero, hire a HERO! =-)

Advice for Buyers: https://youtu.be/vBJ2VaKN7-o?t=3m22s (advice starts at 3 minutes 22 seconds)

Advice for Sellers: https://youtu.be/vBJ2VaKN7-o?t=8m21s (Advice starts at 8 minutes 21 seconds)

Look at homes for sale: http://www.propertiesofalaska.com/anchorage OR http://www.herorealtygroup.com

Get a value on your home: http://www.propertiesofalaska.com/cma/property-valuation/

What do we do to sell your home? Visit: http://www.propertiesofalaska.com/selling

https://www.instagram.com/herorealtygroup

https://www.facebook.com/herorealtygroup

E-mail questions, or to get reports, James @: james@herorealtygroup.com Thank you!

May 4, 2018

What is a Home Inspection and Why Should You Get One?

What is a Home Inspection and Why Should You Get One?

 

            Has the thought ever crossed your mind as to why we pay for a home inspection? Some people may see it as a waste of money but TRUST ME it is worth every penny. A typical home inspection usually cost homebuyers a few hundred dollars. Would you buy a used car without taking it to a mechanic first? The answer for most people would be no! Buying a home is one of the most expensive purchases one will make in their life so why take the risk of not knowing what your getting yourself into.

 

A home inspection is simply the process of having a licensed inspector check all aspects of your home to see if any repairs should be made. Once the inspector has thoroughly checked out your home you will receive a report on recommendation of what should be fixed.  The report will include items such as Health and Life Safety, Significant Home Repairs and Recommended Repair Items. Sometimes it may be a simple fix such as changing out the smoke detectors or replacing the outlets with ones that are up to code. In other cases the repairs could be major such as a new roof or cracks in the foundation.  This job should be left to the professionals; most real estate transactions require a home inspection these days.

 

By declining a home inspection you are buying a home blindly.  Unforeseen repairs could cost you tens of thousands of dollars, not exactly the type of surprise you want to receive.  By investing a few hundred dollars into an inspection you can rest your head at night in the comfort of your new home knowing you made the right choice.  Keep in mind no home is perfect and it is common to have multiple repairs. A home warranty is completely separate from a home inspection, the inspection is a good indicator of current issues but unfortunately there is no way to predict future maintenance. If you need recommendations for a trusty home inspector here in town or better yet are in the market to buy/sell a home you should reach out to us.

 

Posted in Education
April 25, 2018

Closing Costs For Home Loans In Anchorage

 

Closing Costs – What are they, and who pays for them?

Anchorage Homes - What Are Buyer Closing Costs Hero Realty Group

 

 

            In short, there are two bigger categories of closing costs – Buyer related, and Seller related. These are the costs associated with the purchasing, lending, and/or selling of a home. Depending on the lender, title company, and financing type, these costs may vary.

 

Buyer Closing Costs

            Before we tackle what these are, let’s first look at it from a Seller’s perspective.

            Not all Buyers can afford their own closing costs. In fact, this is pretty common. It is, however, person-to-person dependent, and is less common in a price range of over $450,000. The reason for this is because individuals who qualify for a larger home loan typically make and/or have more money in general.

            A buyer can ask a seller to pay a portion, or all of their closing costs. The amount a Seller can legally pay towards a Buyer’s closing costs will vary depending on loan type. For example, with an investment property or vacation home (non-owner occupy / not a Buyer’s primary residence), a seller can only pay up to 2% of the buyer’s closing costs. Contrastingly, on something like a FHA or VA Loan, a Seller can pay up to 6% and 4% respectively (there are some caveats to this, too long to list). This is because lenders know that compared to investors or second-home buyers, first time homebuyers typically have less money lying around and may need a little extra help.

            So, what do a Buyer’s closing cost consist of? Great question, here are some of the fees a Buyer will incur when purchasing their first, or next home:

·      Loan origination fees (the fee the lender charges for loan)

·      Discount Points (if buying down the rate for a lower interest rate)

·      Title Insurance

·      Pre-paids / Reserves: Interest, Hazard Insurance, Other Insurance, Mortgage Insurance, Hazard Reserves, Tax Reserves, Home Owners Dues / Transfer Fees

·      Miscellaneous Fees – Escrow fee, Attorney Doc Prep Fee, Surveys, Recording Fees, Title Transfer Fees, Tax Registration Fee, Appraisal Fee.

The financial bulk of these fees will be the Origination Fee (if the lender still has one), and pre-paids (insurance, taxes, etc.)

 

Seller’s Closing Costs

            What is the seller paying for on their end of the deal? The actual fees for the Seller to close a on a home are much less in contrast. This is because they are not using a loan or financing any portion. Also, this is one of the main reason cash deals are so enticing – there are far less costs associated with them.

            The Seller’s Closing Costs can include:

·      Miscellaneous Fees – Escrow fee, Attorney Doc Prep Fee, Surveys, Recording Fees, Title Transfer Fees, Tax Registration Fee, Appraisal Fee.

·      Owner’s Title Insurance Fees

·      Past due Home Owner’s Association Fees / Condo Dues

 

Typically, the Seller’s biggest fees will come from the Owner’s Title Insurance Policy, and the Appraisal (though sometimes the Buyer may pay it – more prevalent in a multiple-offer situation where the Buyer wants to sweeten the deal)

 

In closing (see what I did there?), I’ll leave a quick note to Mr. & Mrs. Seller – if you’re selling a home under about $450,000, the buyer may or may not have funds for their closing costs in addition to their down payment. It may be wise to consider this fact before listing, and not feel blind sided if you get an offer with 3% of the prospective buyer’s closing costs tacked on at the end.

 

There you go! Those are the basics of closing costs!

 

Have questions? We’d love to answer them.

 

E-mail James Cash at james@herorealtygroup.com, OR, call or text us at 907-726-HERO.

 

 

April 21, 2018

Anchorage Residential Real Estate Market Weekly and Monthly Update #11

HERO Realty Group Anchorage Real Estate Weekly and Monthly Residential Update April 21st 2018. The latest information on the Anchorage, Alaska Real Estate Economy with MLS backed statistics. Don't be hire a zero, hire a HERO! =-)

 

Look at homes for sale:

http://www.propertiesofalaska.com/anchorage

 

Get a value on your home:

http://www.propertiesofalaska.com/cma/property-valuation/

 

What do we do to sell your home? Visit:

http://www.propertiesofalaska.com/selling

 

E-mail questions, or to get reports, James @:

james@herorealtygroup.com

 

Thank you!

Posted in Education
April 17, 2018

Why Using A Listing Agent To Buy Might Not Be The Best Idea

Why Using A Listing Agent To Buy Might Not Be The Best Idea

 

            If you’re thinking about buying a home, but want to work with the “listing agent,” or licensee as we are called here in Alaska, you might want to reconsider.

 

            Zillow has taught me an important lesson through advertising with them – people think that using the listing agent might somehow benefit them.

 

I am about to dive into all the reasons why this will more than likely NOT work in your favor.

 

How The Listing Process Works & Commission

            When I work with a seller, we have a contract in place for our relationship. It covers various elements such as: my relationship to Mr. or Ms. Seller, what my duties are, how long I get to market the home, what the list price is, and yes, the commission. The commission when a home is marketed in the MLS is ALREADY DECIDED before anyone ever sees it.

            So if you think you’re going to work with the listing agent and reduce your purchase price by cutting out another agent, think again! The listing agent will receive the full commission as agreed in the original listing agreement. The only way to combat this is to write a purchase contract and write in that “The listing licensee to only receive the commission as designated in the ‘Exclusive Right to Sell’ for the listing licensee side.”

My main take away here is, you’re not saving yourself any commission monies by using the listing agent.

            If you do decide to go this route and include a purchase contract with that specific verbiage, you better know your way around a contract, because you are only getting specific assistance!

           

 

Real Estate Licensee (Agent) Relationships

           

            As standard for all MLS Purchase and Sales Agreements (purchase contracts), there are really only three designations for a licensee’s relationship and duties to the respective buying and/or selling parties (talking specifically about the listing agent here):

·      Licensee to represent Selling party only

·      Licensee to ASSIST both parties as a neutral licensee

·      Licensee to ASSIST Selling party without representation

 

Here’s the catch, if things were to come up in the court of law (and as good real estate professionals, we prepare for the worst by doing our best), as a listing licensee who was working for the Seller first, we are representing the Seller only, while giving the buyer specific assistance.

This means when you work with the listing licensee, you are waiving your right of representation. This literally means, that licensee’s duties to serve their client with the best of their abilities only lay in that of the Seller’s. You are literally waiving your right for representation. Not the best idea as it pertains to perhaps the LARGEST financial decision and investment of your life.

 

Inside Knowledge

            Here’s another common reason prospective home buyers want to use the listing agent – “They know more about the house.”

            While this certainly could be true if they’ve used that agent to buy the house, in most cases, it just isn’t true.

            I can tell you that I’ve sold homes for clients before that I’ve never stepped a foot into. Three things sell a house: price, condition and marketing. None of which does a licensee technically have to be present to ensure. As a listing licensee for my seller, I can long-gun the whole transaction with a team of people. That doesn’t mean I won’t do a tremendous job representing them and their interests, but it does mean that I might not know a whole lot about that house.

            I’ve had numerous phone calls to other agents asking if they know the configuration of the bedrooms (are the upstairs or downstairs), and they have no idea. No biggie in my opinion, I can go preview the house, but it does show what I’m talking about. Just because you listed the home or investment property, doesn’t mean you know a whole lot about it.

            A lot of times when we get a listing, we do an initial walk through, valuation based on current condition or work to be done, and then we hire out signs, photos and fliers. We even hire out open houses.

            Again, this doesn’t mean we don’t do a devastatingly great job, but it means our knowledge of the house isn’t by any means “inside information.”

 

real estate brokers of Alaska, Alaska real estate professionals, homes for sale in Anchorage, HERO realty group, top real estate agents in Anchorage, Alaska real estate

March 12, 2018

2018 Residential Tax Exemption Form

If you're living in your home, this is the form you need to file for your residential tax exemption.

Make sure it is in by March 15th, 2018 if you want to get the exemption on your taxes!

All information about qualification and what to do is on the form.

 

2018 residential tax form for anchorage alaska

Posted in Education
Sept. 23, 2016

Home Buying Process: Pre-Qualification

This blog series will be an 8 part discussion that will explain the basic steps to purchase a home here in Alaska.

After reading this series, you should have the basic understanding of what it takes, what is required from you, and all parties involved in the home purchasing process.

The first step to buying a house is to get pre-approved, or pre-qualified with a lender or banking company.

Why is this important? Looking for a house without pre-approval is like hunting without a working rifle. You don’t know how big you can go (purchase price), if you need to work on anything (credit, job length, etc.), or a slew of other factors that could prevent you from buying a house.

There are many different lenders who basically do that for you. My recommendation is typically to go with a local lender or a lender that offers a specific program that fits your needs and desires. For instance, if you’re going to use an FHA loan, most lenders can typically do the same interest rate, however, some may be able to offer you no origination fee, saving you thousands of dollars. If you want to purchase a foreclosure, you may need to get an FHA 203K loan, or use Alaska Housing Finance Corporation (AHFC) for their renovation loan.

If you don’t know what type of loan program you should use, consult a knowledgable licensed Real Estate agent to help you make an informed decision. Without knowing what you want to do, there is no clear path.

Four basic premises of pre-qualifcation are:

  1. satisfactory job history or length of employment
  2. verifiable income
  3. suitable DTI (debt-to-income ratio), and
  4. satisfactory credit score.

If you have had a job for the last two years, or have just gotten out of college and into a career position, 580 credit score or higher, you should be on your way to buying a home.

For more information, please contact our local Alaskan Realtor James Cash at 907-360-7448 or e-mail jamesfcash@gmail.com for more information.

Posted in Lending