Anchorage FSBO Market: Part 2

 

Anchorage FSBO Market

          The For-Sale-By-Owner (FSBO) Market often presents a tempting picture to buyers. They may choose to search these homes believing it will save them the commission fee or will garner them a great deal. Others may simply be searching to see what inventory is available. Whatever your reason for searching through these listings may be, we urge you to educate yourself as much as possible on the home buying process. Learn where an agent’s commission comes from, and understand the time commitment and risks involved in going through the process unrepresented. While we believe choosing an agent to represent you is a wise move, we are more concerned with providing buyers with resources so they can make the best decision for their family and particular needs. Below is a short discussion on a few common reasons buyers choose to search the FSBO market alone.

One of the most common reasons unrepresented buyers scour the FSBO market is because many are confused over where the commission for their agent’s services comes from. Buyers, your agent’s commission comes from the seller. Please don’t think you will have to pay their commission on top of your closing costs. The seller will be paying their commission. An agent can help you find the right home, negotiate the price for you, and handle all the paperwork in addition to showing you information on comparable homes and helping you determine how much you really can afford. So the question remains: why would you not want to take advantage of an agent’s services when you get this wealth of knowledge at no additional expense to you?

Secondly, buyers may search the FSBO market hoping to negotiate with the seller for a better deal on a home. Usually these buyers have bought and sold homes previously with or without the assistance of an agent. Occasionally, this might work in a buyer’s favor. However, it is likely unintentional on the seller’s part. I have to ask: why would a seller who doesn’t know the buyer want to give them a great deal on their house? Most sellers would instead be happy to pocket the additional savings rather than sharing those savings with the buyer. Sellers on the FSBO market are most likely hoping to recognize a substantial savings. This being the case, a buyer may find himself or herself struggling to negotiate a “fair” price for a home. If you do find your dream home on the FSBO market, consider the time and effort involved in purchasing that home. Are you prepared to present an offer, negotiate the price, work through the home inspection and appraisal process, and keep in contact with your lender?  

The Anchorage FSBO market has only a handful of houses currently listed. If you are a buyer only looking at FSBOs, you are limiting yourself. The traditional market is picking up and more people are beginning to list their homes with an agent’s help. These homes are listed on the Alaska MLS and can be viewed through our website. We want you to know you can visit our website to find homes in Anchorage today with no pressure attached.

 And buyers, whether or not you choose to enlist the services of an agent, please, please, please go get yourself prequalified through a lender before you begin searching for your next house. You will have greater bargaining power if you are prequalified before you ever step foot into that dream home.

Happy House Hunting!

Anchorage FSBO Market: Part 1

 

Anchorage FSBO Market: Part 1

The For Sale By Owner (FSBO) Market is a popular option for sellers looking to save money on the sale of their home. The common thought is that without the agent’s fee, a seller could save thousands of dollars. Given data from the National Association of Realtors, the following discussion sets out to debunk this belief.

Selling a home is a lot of work- even if you have chosen to use an agent’s services. Getting your house in tip top condition (and keeping it that way) can sometimes be next to impossible. Sellers will have an edge up on the competition if they fix all those “little” things around the house. However, more goes into selling a house than simply its condition. A competitive market price must be set, marketing must be conducted (again and again and again), lenders’ requirements must be met, home inspections, repairs, and appraisals each must occur, and title must be researched. In fact, there are potentially many more steps depending upon the complexity of the sale. As a seller in the FSBO market, you must be able to maintain your day job, keep your house in showroom condition, show your house, and if you get a buyer, you must be able to handle all those steps.  Sounds daunting, right? A REALTOR© is familiar with each and every step as well as the timeline for getting each step completed. He or she is able to effectively market your home and balance all the various parties involved in the transaction, allowing you to focus on living life and maybe spending time keeping your house in showroom condition.

Let’s take a look at some statistics:

·        Did you know 9 out of 10 buyers begin their home search online? Most use sites such as Realtor.com, Zillow, or Trulia, not to mention the many agent websites linking buyers to a local MLS. Homes listed FSBO often have no access to these websites.  Although several sites do exist for FSBO listings (forsalebyowner.com, etc.), you will not receive the exposure you would on traditional sites. Research shows that of the nearly 90% of buyers searching online, only 14% ever search on for sale by owner sites. Compare this to the 45% of these buyers who use realtor.com to search for homes. Listing your home with an agent ensures you get the exposure you need to sell your home with the best possible outcomes.

·        The national average selling price of a home on the FSBO market is $140,300. Compare this to the national average selling price of a home sold with the assistance of an agent which is $215,000. These numbers indicate FBSO sellers do not save money by selling on their own. Even with the cost of commission, sellers listing with an agent saw a higher sales price than those who chose the FSBO route. One of the primary reasons for this is that agents are experts at pricing houses and understanding the market. Many FSBO listings are either significantly overvalued or undervalued. Both scenarios result in the same thing: the seller did not receive the market price for their home.

·       The National Association of Realtors conducted a study in which they asked sellers who listed their home in the FSBO market what their biggest problems were while trying to sell their home on their own. Attracting potential buyers was the most difficult task for 14% of these sellers. Other problems included getting the price right (12%), understanding and completing all paperwork (11%), having enough time to give to this home selling process (6%), getting the house in showroom condition (5%), and selling within the desired timeframe (5%).

So what does all this mean for the Anchorage FSBO market? Sellers can and do list their homes without the aid of a REALTOR©. However, the national statistics hold true in our city as well. Buyers are online searching for homes. They land on websites that offer a large selection of homes. Paperwork is confusing, and the process that must be followed can be even more so. Choosing to list your home with a REALTOR© will afford you many advantages. First, you’ll give buyers instant 24 hour access to view your home online. Second, an agent will prescreen buyers before showing your home. You can feel secure knowing that all buyers who visit your home have qualified through their lender. Third, REALTORs© are experts at negotiating. They will work to get you the best deal on your home. Finally, agents understand the complexities of the escrow process and understand the time table in which various steps must be completed.

Want to learn more about the Anchorage FSBO market? Contact us today!


 

People Are Moving to Alaska



Turnagain Arm, Alaska

 

People are moving to Alaska in droves.

According to results of a recent study on the migration habits of Americans, Alaska is considered an inbound state; one which is friendly to business. This very simply means people are moving to Alaska. If you’re an Alaskan, this is probably confirmation that indeed there do seem to be more vehicles on the roads now than there were ten years ago. Alaska’s economy, while hit, was not hit to the extent in which many other states were. Laws and regulations are business-friendly, encouraging companies to remain in Alaska or relocate to Alaska.

With more and more people moving to Alaska, and more specifically the largest city, Anchorage, we are seeing an increased demand in housing. More people are looking to buy homes in Alaska, and this means greater competition for the homes on the market.  

If you are one of the many people moving to Alaska, we want to welcome you to our beautiful state! There is a wide array of activities to do both outside of the city as well as within the city. Our main website is full of information about the different communities in and around Anchorage as well as market insider information at your fingertips.

If you are looking to sell your home, this is a prime opportunity to do so. Homes are moving fast and garnering excellent purchase prices. If you would like more information on selling your home, visit our website.

 

5 Signs the Real Estate Market is Recovering

5 Signs the Real Estate Market is Recovering

…and what that means for you if you are considering buying or selling a home.

We recently came across a great article and wanted to share the main points. New data shows the real estate market is in recovery compared with the past few years. The numbers are based on national data; however, we are already seeing the 5 signs the market is recovering in Anchorage, Alaska.

1.      Asking Price and Rent increased by 5% over this time last year. For sellers, this means you’ll be getting more for your house than you would have last year. For buyers, this indicates an urgency to purchase a home as rent is increasing and it won’t be long until it is more cost effective to buy versus renting. Already, in the Anchorage market, we are seeing instances where renting is more expensive than buying a home.

2.      The Consumer Financial Protection Bureau released new mortgage rules this month. For buyers, especially those who have been hesitant to trust lenders, these rules require all the information you need to be provided up front. The rules are designed to protect you as you purchase a home. For sellers, this is good news because there are a great number of people wanting to buy but hesitating for this very reason. Given these new rules, we expect to see an increased number of buyers enter the market searching for homes.

3.      Delinquencies and foreclosures are both decreasing. In fact, the foreclosure rate is at its lowest in 4 years. For the economy as a whole, this is good news. It means people are able to pay their mortgages rather than losing their homes.  For buyers who have been watching this number and lacking the confidence to take on a mortgage, you can be confident with the new rules previously mentioned and the data indicating more people are able to afford home ownership. Sellers, with fewer foreclosures on the market, you will most likely see an increase in purchase price.

4.      93% of millennial renters are now planning to buy a home. For sellers, this is good news as once again, this group of buyers will enter the market searching for a home. Competition will increase for each home listed on the market.

5.      Investors are beginning to buy up real estate again before the prices really jump. For buyers, this means you will be facing competition for the homes you find on the market. Be ready to make an offer. Get pre-qualified from a credible lender before starting your home search. For sellers, this means more potential buyers coming through your door to view your home. And the more showings you have the quicker you’ll likely have a great offer to work with.

If you are a buyer or seller looking to take advantage of the current market conditions, please visit our website and contact us today!

This Month in Real Estate (US): January 2013

 

For Buyers: Common Questions to Ask

For Buyers: Common Questions to Ask Your Realtor©

 

Property Specific:

Question: How long has the property been on the market?

Why: The answer to this question may indicate a seller’s willingness to negotiate if the property has been on the market for a while.

Question: Have there been any other offers on the property?

Why: If so, you may get a feel for what the sellers are willing to accept for the property by seeing what offers were rejected.

Question: What is the seller’s motivation?

Why: If the seller has already put an offer on another property, they are likely going to be motivated to close this property quickly.

Question: Are any personal items included in the sale of the property?

Why: Any item left behind represents one less item you have to purchase when you move in. Consider these items as having real value and account for them in your offer. Items include but are not limited to: Washer, Dryer, Refrigerator, Shed, and Workbench.

Neighborhood Specific:

Question: What is the price range of sold properties in the area?

Why: This range will give you an idea of the top and bottom price in the area in order to understand where the potential property falls.

Question: What is the average time on the market for properties in the area?

Why: If market times are short, this indicates a sellers’ market. You will likely face stiff competition when making an offer on a property. Conversely, longer market times are supremely beneficial for the buyer as sellers are often more than willing to negotiate when their property has been on the market for quite some time.

Final Recommendations:

Our market is currently a seller’s market, with properties only spending a short time on the market before going under contract. This being said, buyers can and do benefit from this as well. The available homes are desirable, and sellers are motivated to sell. A word to the wise: Have your ducks in a row. Get pre-qualified before looking at houses. And when you find your perfect home, jump in with your best offer before other buyers have that chance. If you would like more information on current market conditions please visit our website today!

Searching for homes for sale in Anchorage?

 

Neighborhood Garage Sale

Not only do garage sales provide the perfect opportunity to clean out our closets and cupboards; they also present the chance to get to know our neighbors. The 2013 Neighborhood Garage Sale needs YOU and your stuff! Be one of the first to register and receive a free garage sale kit full of helpful items including pricing guidelines, pricing stickers, pens, paper, flyer, a bag to put the garage sale money in, and other helpful garage sale tips to make your garage sale a complete success.