Fairbanks Real Estate - Week in Review - 6/22/2008 - 6/28/2008
Jesse Clifton, Broker Associate

Do you remember the story about the little engine that could? Just like that little engine the Fairbanks real estate market is surviving the housing slump that has derailed many real estate markets around the country.

For the week of June 22-28, 18 homes closed escrow. The majority of those (67%) continue to be sales in North Pole, although interestingly, they aren't new construction homes. New construction represented less than 1% of homes sales this week.

Days on the market dropped somewhat this week from 131 to 102 days. In a recent post I delved a little deeper into the Fairbanks days-on-market stats and found some interesting stats. This week 33% of Fairbanks homeowners saw their home sell in under 30 days.

Keep that in mind if you're shopping for a home. Homes priced correctly and in good condition are selling... and in some cases they're selling quickly.

The average sales price came in this week at $220,251. That's a whopping 19.2% increase over this time last year. We've even beat the year-to-date average for 2008 of $211,692.

The Fairbanks real estate market may not be setting any world records, but we are moving forward. If you're in the market to purchase a home, this could be a great time.

Ready to find your piece of The Last Frontier? Contact us online or call 907.699.6024. We are your local Fairbanks real estate experts.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Jesse and Kathy are your local Fairbanks real estate experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Sorry folks, I couldn't resist. The sun is shining with only a few clouds in the sky - for now. It's supposed to rain later today and tomorrow but it won't matter. The worst day of fishing beats the best day of working, right?

We made it down to our favorite spot on the river without incident and have even been so lucky as to have the place to ourselves. No doubt that will change tomorrow but for now it's peaceful and just about as close to perfect as you can get.

One of the attractions that have kept us in The Last Frontier for so long is the abundant opportunities to get out and enjoy some of the most beautiful country on earth. Fishing, hunting, boating, hiking, camping, off-roading, flying, rafting, canoeing, kayaking, skiing, snowmachining... you name it and it's all right here in our very own backyard.

Ready to find your piece of The Last Frontier to call home? Contact us online or call 907.699.6024...

Just give us 'til Monday to call you back. We've gone fishing.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Jesse and Kathy are your local Fairbanks real estate experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

The 9th Army Band, stationed at Fort Wainwright, has an upcoming concert performance on June 26, 2008 at 7:00PM at the Noel Wien Library.

Tuba Player MSG Roger Ridenour leads the ensemble that features 1SG James Thaxter and SFC Andrew Phelps on trumpet, SGT Dale McSwain on horn, and SGT Vincent Lawyer on trombone. 9th Army Band Sample Performance.

If you haven't heard the Band perform, you should make time to come hear them play. They truly do a magnificent job. Request a performance of the 9th Army Band at a military function (PDF) or a civic performance.

Following this performance, the 9th Army Band will perform on Saturday June 28th at 1:0PM at the Salcha Fairgrounds for the Salcha Country Fair and on Sunday June 29th at 6:00PM for the Beluga Nights Summer Festival the UAF Patty Center.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Fairbanks New Construction - $7,500 Rebate for home buyers.
Jesse Clifton, Broker Associate

New construction homes in Fairbanks have long represented a wise investment. Now there's one more reason to purchase a new home in Fairbanks.

A $7,500 New Home Rebate

Alaska Housing Finance Corporation is offering a $7,500 rebate for buyer who purchase a qualifying* new construction home that meets Alaska Housing's Energy Efficiency Program for 5 Star Plus Energy Rated Homes.

What could you do with $7,500?

Pay off bills? Take a trip. Pay for your wedding. Invest for the future? The possibilities are endless. This rebate is being offered through AHFC with no fees to the seller. Sellers can still make additional contributions to your closing costs, if negotiated. Perfect for first time Fairbanks home buyers. Folks looking to move up or downsize can take advantage of the program as well. Will work for any qualifying* new construction home.

Attention Fort Wainwright & Eielson Air Force Base personnel - Couple your VA home loan benefits with the $7,500 rebate and buy a brand new home with possibly nothing out of pocket and put money in the bank.

To find out more or to start looking for your piece of the last frontier, contact us online or call Jesse and Kathy Clifton, Fairbanks real estate experts at 907.699.6024.

* Property must meet certain AHFC Energy Standard guidelines for new construction.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Fairbanks Real Estate Outlook
Jesse Clifton, Broker-Associate

Are you falling for the hype? Much is still being made in the national news about the slowdown in the housing market. It seems as though you can't turn on the news without hearing about rising foreclosures, default rates and slow housing starts.

But is it really that bad here in Fairbanks? Not hardly.

The Fairbanks real estate market might not be moving at a breakneck pace but it's far from standing still. In fact there are some segments of the Fairbanks market that are still attracting multiple offers.

Homes in good condition that are priced correctly are selling. We've heard from several buyers recently who were shocked to find out their offer wasn't accepted because the offered price was too low or because another buyer wrote a better offer.

Fairbanks real estate is still moving forward. In looking at a snapshot of the market more than 62% of the homes sold in the past month sold in less than 60 days. 39% of the sales occurred in less than 30 days. Of the 140 homes currently in escrow in both Fairbanks and North Pole, 55% were sold in under 60 days. 71% of the current pending sales occurred after spending less than 90 days on the market. That's not what I would call a market in crisis.

Bottom line.... Don't fall for hype - Get the facts! If you're in the market to buy, soft prices and a full inventory could mean this is a great time to get off the fence and into a new home. Contact us online or call 907-699-6024 to find your piece of the last frontier.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

I finally did it. I talked about it long enough. I looked at it and talked about it so much the boss told me if I mentioned it again she was going to knock my lights out... and I think she meant it.

I've been using an old(er) Cannon SLR for more years than I care to remember. A couple of days ago the FedEx man delivered my new Cannon 40D DSLR. Now, where photography is concerned I'm certainly not as good as my buddy Richard Weisser or John & Margaret Hokkanen but I like to tinker with it. By the way, if you haven't had the chance to meet Richard or see the magic that John and Margaret can do with a camera then put your mouse in gear and click on over. They're all amazing people.

Online Videos by Veoh.com

While out running errands with our friends from out of town this afternoon Dave leans over in the front seat and points out the ginormous flag flying over the Auto Trim Building. It's not often we have gale force winds in Fairbanks but today was a doozie and the flag was out in full force. Years ago I tried to talk Kathy into letting me put a similar flag in the center of our front yard but she was concerned planes would hit it while lining up to land at Eielson AFB so I settled for a 'normal' sized 'Ol Glory. We pass this beautiful flag every day on our way into Fairbanks and it never ceases to bring a smile to my face.

There's a running joke that if you're ever lost, just look for the Auto Trim flag and you'll have your bearings. As memory serves the flag is 15' x 25'... it's quite large. The 'video' above was a series of shots this afternoon and an experiment with Veoh. Hope you enjoy it!

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Fairbanks Absorption Rates for June 2008
By: Jesse Clifton; Fairbanks Real Estate Broker

One of the most important yet often overlooked keys in setting an asking price for a home is the absorption rate. It's as important to pay attention to these numbers as it is to the most recent closed sales in a particular neighborhood.

Simply stated the absorption rate is the rate at which homes are selling. By dividing the number of available homes by the number of homes sold during the previous 30 days we're able to see how long it will take the market to absorb the current inventory of homes for sale.

Keep in mind this number is not static. The absorption rate changes every time a new listing hits the market or a home in escrow closes. The rates below are a snapshot of the market today.

Looking at what similar homes have sold for and making the requisite adjustments for age, size, amenities, etc. is critical to establishing market value. While the recent sales will give you the initial value, it's just as important to see how quickly the market is moving in order to solidify that value.

A Fairbanks home with a market value of $260,000 falls into the group of homes with an absorption rate of 9.1 months. At 5.4 months, homes in the $200,000 - $250,000 category are selling at a significantly faster pace.

Do the math. Assuming a typical mortgage payment of $2,200+/- (PITI) and average monthly utility costs of $300 (summer) and those additional four months of marketing time will cost you $10,000. Factor in average heating costs of $600 - $1,000 per month and it would be a very smart move to drop your initial asking price by $10,000 to move your home into a segment of the market that's selling much faster. After all time equals money and the longer a home sits on the market the more shop worn it becomes.

For sellers, the one caveat to the scenario above is that to get the most mileage out of these absorption rates, the home needs to be priced at market value as indicated by recent closed sales. If your market value is $250,000 but your asking price is $275,000 then you've easily doubled your marketing time and these numbers will be meaningless. Conversely if you’ve under priced your home then you can expect a much shorter marketing window.

Fairbanks Absorption Rates

Fairbanks 0-150K 58 - 15 = 3.9 150-200K 71 - 18 = 3.9 200-250K 81 - 15 = 5.4 250-300K 64 - 7 = 9.1 300-350K 30 - 3 = 10.0 350-400K 25 - 2 = 12.5 400K+ 27 - 1 = 27.0

North Pole 0-150K 31 - 3 = 10.3 150-200K 56 - 10 = 5.6 200-250K 86 - 18 = 4.8 250-300K 61 - 8 = 7.6 300-350K 15 - 1 = 15 350-400K 10 - 1 = 10.0 400K+ 4 - 1 = 4.0

Are you ready to sell and need to know the current market value of your home? Call us at 907-699-6024 or contact us online and request a comparative market analysis.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Recently we met with a couple looking for some help with a building project. They bought a parcel of land upon which they planned to build their dream home but due to a lack of planning and a little claimed deception on the part of the seller found themselves mired in a potential disaster. What takes this from bad to worse is the seller is a licensed (non Realtor) real estate agent.

What do you do when you don't know what you don't know? The seller, who happens to live next door, told them the ground in the area was good. Based in part on his statements the buyers didn't bother having a subsurface soils investigation done. They had no idea that could even be done.

Contrary to what some will say, you can not tell diddly about the soil without having the lot in question drilled. The type/size/age of trees or other vegetation won't tell you anything. The only ground you won't find permafrost under has palm trees growing up from it, as the old joke goes.

It wasn't until they hired a local company to excavate for the foundation and septic system that they discovered trouble brewing. Five feet down and no gravel.... 6 feet... 9 feet... 12 feet and still no gravel. Plenty of muck - wet clay that you couldn't build a dog house on, let alone a 2,200 sq. ft. house. Dig, dig, dig was the order of the day all the way down to 19' when they hit gravel... beneath 4' of water.

Having two test holes dug and examined would have cost $2,500. They are now facing a $30,000+ expense to bring in enough gravel to fill a 20' hole the width and depth of the foundation. We talked briefly about building the house on steel pilings but after looking at the plans we'll need roughly 25 pilings, which at $1,400 each plus a floating steel deck floor in the garage adds roughly $35,000 to the cost of the foundation.

They are understandably sick. I feel for them but at this point I'm not sure what can be done. They can't simply cut their losses and move on either as they paid, in my opinion, too much for the property. They could never resell it for what they paid and certainly not with the knowledge of the soil condition (at least in that spot). I'm not sure what options outside of litigation are available and even that's going to be a messy road to try and travel. The seller will simply hide behind caveat emptor as there are no disclosure requirements in the State of Alaska where undeveloped land is concerned.

If you're buying undeveloped land in Fairbanks or the Interior, have the property drilled. It could save you from making a very costly mistake which you could certainly end up regretting later.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Fairbanks River Front Homes For Sale - Enjoy life on the Chena River!

It seems the two things Fairbanks home buyers most often ask for is a home in the hills with a view or a home on the river.

Whether you're looking for a place to park your float plane, a home for your boat, or you're just looking for a sweet spot on the river to wash away your troubles at the end of a long day, there's sure to be a Fairbanks river front home that you'll fall in love with.

All of these beautiful homes are within a 5-20 minute drive of downtown Fairbanks, the University of Alaska Fairbanks, Fort Wainwright. Drive time to Eielson Air Force Base is approximately 15-35 minutes.

Here area few examples of beautiful Fairbanks river front homes currently for sale.

Cosgrave Drive
Southwest Rural Fairbanks

Asking Price: $649,000
Built in 2005
3,620 Sq. Ft. Living
1,064 Sq. Ft. Garage
5 Bedrooms / 3.5 Baths
1.03 Acres
Listed by REMAX Associates

Slater Drive East Fairbanks Asking Price: $499,000 Built in 1981 4,300 Sq. Ft. Living 924 Sq. Ft. Garage 6 Bedrooms / 4 Baths .37 Acres Listed by Wallace, Wallace & Wakefield

Riverview Drive Central Fairbanks Asking Price: $492,500 Built in 1989 3,946 Sq. Ft. Living 1,199 Sq. Ft. Garage 4 Bedrooms / 3.5 Baths .36 Acres Listed by Wallace, Wallace & Wakefield

Slater Drive East Fairbanks Asking Price: $175,000 Built in 1952 1,473 Sq. Ft. Living Single Car Garage 4 Bedrooms / 2 Baths .33 Acres Listed by Century 21 Gold Rush

Ready to stake a claim to your piece of The Last Frontier? Contact Jesse or Kathy Clifton at 907.699.6024!

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.

Tonight while going to check on listing, I passed the home of an unrepresented Fairbanks homeowner. It was a new construction project the sellers either built to resell or were forced to sell due to circumstances. I've watched as this particular 'builder' spent the better part of a year and a half working to finish this house. What caught my eye tonight though was a very large handwritten sign with the words "I will pay all closing costs for veterans" written across it in big block letters. My first thought was to wonder if the seller was paying closing costs, closing costs and prepaids, closing costs, prepaids and reserves, or closing costs, prepaids, reserves and the veterans funding fee. Then I wondered if the seller knew the difference, but that's for another blog.

I haven't been in this particular house but I know all about it. The seller has been very diligent in posting the property to every known free listing site left on planet earth, or so it seems. There have been newspaper ads; line ads and large, expensive diaplay ads with pretty graphics but still it sits there. The sellers are frustrated with a home that won't sell and I'm sure are getting to where any offer would look good. At this point most agents could tell you what's wrong with the house without knowing anything else.

It's the price, silly.

Mr. & Mrs. Homeowner, I applaud your effort to sell your home yourself. Whatever your reasons for going it alone I wish you the best. I do have a few pieces of advice I would like to offer you though; free of charge. You have been given the tools to understand the market. God gave them to you when you were born. They're your ears. Listen to the market, because it's speaking to you loud and clear. As a mater of fact, when you nailed that gigantic neon green poster board sign to the tree on the corner of your property it began screaming, but you're not listening.

If you wish to jump into the real estate game and walk a mile in my shoes, there are a few things you really need to take care of.

1) Correct the price. You might want $335,000, but you're not going to get it. If your asking price doesn't mirror market value as established by a licensed appraiser, then nothing else you do will matter. If the price is wrong those saplings in your front yard will be shade trees before the house sells.

2) Understand that failing to have the home inspected during construction has reduced the number of people who can buy your home. Without your holding a General Contractors license with a Residential Endorsement and the PUR 101 and 102's complete; respectively the energy rating and building inspections, Alaska Housing Finance Corporation will not go near your home. In today's tight money market, the rate subsidy's from Alaska Housing make them a dominant player.

3) Create curb appeal. It's second, in my opinion, only to price. If the price is wrong and it shows poorly from the street, you're in double trouble. Buyers will barely slow down as they cruise down the street to the next house. Clean up the scrap building materials that are still lying all around on the "job site" after almost two years. Get the boat off the 'front yard.' While you're at it, get a front yard.

4) Make sure the inside of your home does not look like the outside. If you do get a buyer through the front door, they're not going to be able to see and appreciate the house over and though your clutter.

6) Make it available to buyers. Not everyone is willing to wait until Saturday afternoon or until you get home at 7:30PM to see your home. There are too many others on the market and yours is just not that special. Buyers will forget it ever existed by Saturday.

7) Hire an attorney. You'll need one to protect your interests when (or if) an offer comes in. While you can navigate a real estate transaction without a Realtor, it would be foolish to forgo both an experienced Realtor and an attorney.

Mr. & Mrs. homeowner, I offer this advice solely to help you get your home sold. The longer buyers ride by your "I'll give you the farm if you'll buy this house" sign, the longer they will think the entire market is on life support and that's far from the truth. Prepare it for the market or put one of those pretty azure blue gazing balls where the For Sale sign is now; it would make a much better lawn ornament.

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Thinking about buying or selling real estate in Fairbanks or Interior Alaska? We know Fairbanks real estate – Think of us as your local experts. Search Fairbanks homes for sale, sign up for free new listing notifications, view Fairbanks market statistics or browse our virtual relocation package. Have questions? Contact us online or call us at (907) 699-6024. We would love to hear from you.