Anchorage, AK

Anchorage has one of the best economies in the nation. The State of Alaska announced this week that the Alaskan job rate was up both in terms of new jobs and in the jobless rate. However, no matter how strong the economy may be in Anchorage, Alaska or the nation, if you find yourself on the downside of the economy, you need to take action.

Last week, the Obama administration unveiled the Homeowner Affordability and Stability Plan. The plan is two fold, offering both refinance and loan modification options. The purpose of the plan is to help homeowners prevent foreclosure. You do not have to be behind in payments in order to qualify. HUD's Hope For Homeowners program was also revised to give more options to homeowners.

If you see yourself on the downside of the economy, please contact your lender immediately. Here are links that may help you as an Anchorage homeowner:

Homeowner Affordability and Stability Plan: FinancialStability.gov (http://financialstability.gov)
HUD Hope For Homeowners: Basic Consumer Facts (http://www.hud.gov/hopeforhomeowners/consumerfactsheet.cfm)

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Just a brief update on the Anchorage economy. Anchorage and Alaska are still in a better economic place than most of the lower 48, but no state will escape its repercussions altogether.

* The Alaska legislature is currently considering raising the minimum wage from $7.15 per hour to $8.75. There is also a bill under consideration that would keep Alaska's minimum wage at least a $1.00 more per hour than what is federally mandated.

* The budget shortfall for the State of Alaska is much more than what was reported two months ago. The estimate now stands at $1.65 billion. Lower gas and oil prices are the culprits for the increase in the estimated deficit. Governor Palin has put forward a proposal to tap into the state's savings account as well as implementing budget cuts.

* Acting Mayor Claman has begun his reductions in spending, which is estimated to save Anchorage $7.3 million. There is an estimated shortfall of $17 million in the city's budget.

* The Assembly has approved $100 million in bonds for Anchorage residents to vote on in the April ballot. The bonds would affect schools, infrastructure and public safety.

* As California, Nevada and Florida have learned, double-digit increases in value may be "heaven" for awhile. But, it does not take long for those inflationary prices to go south, bringing all kinds of problems along with it. Slow and stead wins the race.

The word foreclosure is one of the most popular words buzzing around the Real Estate industry in the current market. Whether we like it or not, foreclosures are all around us, especially in areas such as Southwest Florida, Nevada and California. These are all areas that got hit excruciatingly hard when the real estate bubble burst. Although there are many contributing factors and each has its own story on why, the fact remains; the market is overwhelmed with these properties and in turn, presents nice opportunity for investors.

It is known that the foreclosure market is sometimes a lucrative venture. On the other side of the spectrum, it is also known for being very risky and many people have lost their shirts trying to nail good deals. The difference between those who have succeeded and those who have failed ties directly into their knowledge of what they were facing. One person took the time to really understand the process and the other jumped right in, head first.

Below are the 101 basics of the foreclosure process:

1. Pre-foreclosure: This is the first step in the foreclosure process. This is where the homeowner has defaulted on their loan and the bank is looking to collect what is due. If the homeowner does not come up with the funds, it will move into the next stage. This process can take up to 6 months. In the current market, however, there have been instances where it has taken a year or more.

2. Auction/Sale: This is actually the process of selling the home at an auction. The bank or lender is making its final move to collect money for the home. Most times, this home will go back to the bank and proceed to the next stage. Once an auction date is set, it only takes one day to complete and the foreclosure on the homeowner is final.

3. REO: Meaning, real estate owned, this property is now the property of the bank. The bank will put this property on the market through a realtor or property management company.

So what is the best step to buy a foreclosure home in the process? It all depends on the investor status you are in. For example, each step has its pros and each has its cons.

A pre foreclosure home is very rich in pros. Not only can you make a decent buy at significant discounts in market value, but you can help the homeowners in trouble make a sale. This creates the infamous win -win situation. A downfall is the fact that sometimes it is hard to contact the owner to make this happen.

During an auction you can receive huge discounts on properties and get a great return on investment. However, this is a very risky process at times. A foreclosure can have many problems surrounding it. It is best to do careful research on properties, which can often times be very difficult. It is also recommended t hat a title search be done before deciding on a property.

If you buy the home back from the bank, you will be rest assured it has a clear title. This takes the risk out and makes the risk factor very low and almost non-existent for most properties. The only downside to this method is the return on investment is fairly low.

In general, foreclosures can be a good thing if you know what you are doing. Before you take on any foreclosure home; know about the home, inspect the home and never assume anything.

Buying and selling a home changes throughout time. In this day and age, the internet has been proven a valuable resource for many people and companies. When it comes to Real Estate, this can also be true, however, sometimes not in the way many people would think. In order to understand how the internet can help, it is first important to understand what the current market is.

As of now, we are in a market that is very slow with residential sales. These sales will, in most probabilities, increase in years to come. For now, the market is highly geared towards buyers, especially investors. With that in mind, let us focus on the buyer first.

The buyer is out looking for a good deal. They know the market and know they have the upper hand. There are typically a few resources they will check before heading to a realtor. First, they will pull their local newspaper and Real State guide (or equivalent). They will browse through the offerings there and then turn to the internet. On the internet they will find many realtor sites and then MLS listings. In these listings they will find many homes that seem like a good deal, homes they will not qualify for and homes that are unrealistically priced. This is a good way to get a feel for what houses are on the market, what the general price range is and how many are consistently available.

Now, here is the downside of the internet. As mentioned before, there are some listings that are just completely unrealistic. Unfortunately, these numbers are growing rapidly. With the number of short sale listings happening, Realtors are listing properties at ridiculously low ball prices to lure people in. The buyer contacts the realtor inquiring about the home and find out either one of two things. The listing price is subject to bank approval that could take anywhere from 3 months to a year, and that is not even guaranteeing a sale. Or, the buyer will find out the realtor picked a number and the price has not yet been approved. In general, when searching the internet, it is best not to take the price of short sales.

Another problem with strictly utilizing the internet for home buying is the fact that many realtor sites do not update their listings. Even the MLS does not get updated as often as need be. In general, if a buyer is interested in the home, they will need to contact the seller directly. This is really the only true way to find out the availability and specifications of the home.

On the Flip side, the Seller can use the internet to their advantage. As mentioned above, it is a good away to lure a buyer in. Also, in the search engine rankings, a webpage can be viewed unlimited amounts of times and not cost extra money if done naturally. Being that a buyer predominantly turn to the internet, that is your opportunity to capture their interest and give them as much information as possible. Well, enough so they will call for further details.

Whether you are a buyer or seller, the internet can be a good tool, but only to a certain extent. Most serious home buying and selling will be conducted one on one for a successful transaction.

Find out how to get the most return for your time and money when remodeling your home.  These 8 upgrades will bring you the best return on your investment.

 In today's market it is important to maximize the return on your investment when updating your home or getting it ready to sell.  But which upgrades will be most worthwhile and give you the best return?  Here is our list of the top 8 home upgrades that will reward you with the greatest return for your time and investment.

1.)    Painting - Most homes these days are built as a blank canvas.  When the home is new, the walls are white the trim is white, nothing really stands out.  In an older home, chances are the walls or exterior may look tired from time and wear.  You probably have your fair share of nicks, scuffs, fading from the sun, peeling and hand prints.  Either case has little appeal to any potential buyers. 

Updating the exterior paint on your home will increase your curb appeal and make your home stand out in the neighborhood.  Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment.  Painting your trim white helps make it stand out while offering a modern look.  Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

The overall goal is to update the look and feel of your home while also trying to make it appeal to as many people as possible.  If you are unsure of your painting abilities or have trouble making those perfect lines at the ceiling or around trim you might consider hiring a professional.  It can be money well spent.

2.)    Adding Siding - If you have older siding on your home that is cracking, splitting, or rotting, adding new siding is a must.  The best bang for your buck currently is fiber-cement siding which is durable, will stand up to the elements and looks great when installed properly. 

3.)    Building a Deck - Decking on the home is not only appealing for afternoon barbeques in the sun but if done correctly can add a seamless transition from the inside of your home to the outside.  Using natural wood is recommended over composite as it tends to give you the best return for your investment.

4.)    Updating the Kitchen - Nothing can be more discouraging in a home than a tired old kitchen.  This can be one of the most expensive areas of the home to update but also one of the most rewarding.  While replacing cabinets is sometimes required remember they can also be refaced.  Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece of your home.  Please remember that when remodeling your kitchen don't overdo it.  If the area or home in which you live do not warrant stainless appliances and granite counters you can still make a dramatic effect by installing new laminate or tile counters and updated non-stainless appliances at a fraction of the cost.

5.)    Replacing Old Windows - If your home is drafty, your windows have condensation between the panes, or you have trouble getting them to close properly replacing your windows may be just what the doctor ordered.  Not only are homes with newer windows more energy efficient, they tend to feel warmer, be less drafty and can update the look of an older home.

6.)    Updating a Bathroom - Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them.  Keep it simple and once again try to appeal to as many people as possible.  Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates.  If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced.  This tends to cost less than having it replaced.

7.)    Landscaping - Curb appeal is very important when selling a home.  Many potential buyers have made up their mind about a house before even entering it.  How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal.  While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

8.)    Finishing Out a Basement - Does your home have a dark and dreary unfinished basement that is rarely being used except for storage?  Turning that area into the warm living area it was meant to be will not only make it much more appealing but can add substantial overall value to your home.  When finishing out your basement it is important to make sure the finish quality of your basement matches that of the rest of your home.  Using the same quality of flooring and trim is a good way to help keep a consistent feel.