Principles of negotiation. Books have been written about it. Speakers travel the world lecturing about it. Millions have been spent trying to uncover the secret. For some, it will remain an abstract principle they will sadly never master.
A few weeks ago I had the chance to speak with a fellow for whom negotiations had not bee
n a kind mistress. This fellow, we'll call him Stanley, set out to buy a home for his family and ended up outmaneuvered by a more skilled negotiator into a contract he now wishes he had never signed.
Stanley and his family had been renting a small house in Fairbanks for the past couple of years. It was comfortable and the price was right but with the changes in the housing market, he hoped to make the transition from renter to owner. A yard for his children to play in... a place in which to make memories of opening presents on Christmas mornings and birthday BBQ's on the deck. Reasons which we can no doubt all relate to.
When Stanley found 'the house' he sat down with his lender and later the seller to hammer out the details of a purchase agreement. The seller was ready to sell... he and his wife had plans of moving to be closer to their grandchildren and were ready to take the house off the market.
"Let's get this done and get you moved in." Motivated seller. That's good, right?
Having watched HGTV's endless parade of real estate programming and read every real estate article he saw on MSN, he had a plan. Take the purchase price, slice 10% off the top and negotiate up from there, if necessary. Armed with his offer strategy, Stanley and the sellers put pen to paper and in short order had a mutually agreeable contract.
"10% off the asking price and the seller agreed to pay $5,500 toward our closing costs if we would waive any contingencies and close in three weeks." The anguish was palpable as he told me the story. He ddn't need to continue... I knew the house and where this conversaton was going.
"Earnest money was placed in escrow with the title company. An appraisal was ordered and we were planning furniture placement." Imagine Stanley's surprise when the lender calls to say the appraisal came in... well... a little low. Seems as though there's a near $37,000 difference between appraised value and the contract price.
A call to the seller turns the butterflies in Stanley's stomach to catapulting, trapeze-flying monkey's trying to 
claw their way through his belly button. No re-negotiations. "You agreed to remove the contingencies for the 10% price reduction and the $5,500 in closing costs I'm paying" replied the seller. Hmmm. Now what? This is where Stanley begins his search for answers and where he lands on this blog and calls us for answers... guidance... absolution... something.
Unfortunately the only truly helpful advice I could offer is a referral to a reputable real estate attorney. Where and how did the train heading to paradise go so far off the tracks?
Representation - Stanley had none. No buyer-agent representation. No legal representation. Nothing. Mano-a-mano as it were. Given the complexities of contract law, finance, discovery, disclosures, etc. representation is key. A buyers-agent is the buyers advocate in a transaction. What a concept, huh? Their primary responsibility is to protect and promote the buyers interests. Most of the time said representation comes at little to no cost to the buyer.
Research - If you don't know the local real estate market, you need to hire someone who does. A sellers asking price is simply a number. Unrepresented sellers are notorious for having an inflated opinion of their homes worth. What are comparable homes selling for? How long is it taking to sell those homes... and how does that compare to the subject property? You need detailed market information... and someone to interpret that data.
Last but not least, forget the hype. Not even HGTV, your Uncle Bob in Poughkeepsie or Donald 'Combover' Trump will be much help in crafting a negotiation strategy in Fairbanks, Alaska... or in any market they're not well versed in. When the time comes to buy a home for your family, and now is a pretty good time, rely on a local expert. As luck would have it, I happen to know a couple.
(gold man image courtesy of Guido Jansen)
One of the tidbits we always pass along to folks new to Alaska is to mind your pets and children when outside and never leave them unattended. Bears, wolves, and moose are routinely spotted in local neighborhoods. While we're a little bigger than the fictional town of Cicely on Northern Exposure, we still regularly see critters wandering around town oblivious to the urban sprawl.
This is still their country.
I snapped these photos this afternoon near the Airport Way/University Avenue intersection. Although there were lots of rubberneckers and a few people, including yours truly, snapping photo's, Mamma and Baby were too busy munching on willows to care.
click on the photo's to enlarge
Although I sometimes take chances getting close enough to get 'the shot' it's not something I would recommend. They may look slow and clumsy but when provoked or frightened moose can be quite agile... and aggressive.
It isn't exactly an Kincaid landscape, is it?. Like many of our northern neighbors we're still covered in snow. A lot of it. The good news is it is melting. The bad news is it's taking it's sweet time about it.
While I'll admit that I'm not overly fond of watching the mercury drop below negative sixty, I love winter. The beauty that comes with a drastically altered landscape, weekend trips to the mountains to sit in front of a roaring fire and drink hot toddies or picnicking on the back of the snowmachine in the middle of a frosted forest. That said, I'm ready for spring, darnit.
Although Fairbanks is still covered in a three-foot deep blanket of snow thoughts have turned from shoveling snow to planting gardens, tending flowerbeds, and lawn and tree care. One of the most respected gardening experts in Fairbanks is Michele Hebert (.PDF). As the Land Resources Agent for the University of Alaska Fairbanks Cooperative Extension Service and a Master Gardener in her own right, Michele knows first hand what works and doesn't with respect to growing anything in the Interior.
The Cooperative Extension Service has a library of more than 300 low or no cost publications such as a Flower Planting Schedule, A Key to Flower Growing in Alaska, Vegetable & Fruit Varieties for Interior Alaska and Raised Bed Gardening in Alaska. Looking to bring your lawn back to life or advice for putting in a new lawn? Establishing your Fairbanks Lawn, Controlling Lawn Moss, Alaska Lawn Maintenance and/or Managing Alaskan Lawns might help.
One of our favorite local greenhouses is Holm Town Nursery and Garden Center owned by Jim and Marcia Holm. The real treasure of Holm Town is the greenhouses full of bedding plants, vegetable starts, perennials, and trees and shrubs In addition to a large greenhouse inventory, Holm Town is staffed by great folks who I would wager could answer any gardening question you might have.
Even if you weren't born with a green thumb, with the help of the Fairbanks Cooperative Extension Service and the great folks at Holm Town, your yard and garden will be the envy of the neighborhood.
First time buyers of Fairbanks, Alaska homes get up to an $8,000 Rebate!
The "American Recovery and Reinvestment Act of 2009" recently signed into law improves the Federal tax credit to first-time Fairbanks homebuyers. This is a credit back to first time Fairbanks homebuyers or a credit against taxes currently owed to Uncle Sam.
How does this apply to Fairbanks homebuyers? To qualify for the tax credit...
Unlike the previous homebuyer tax credit, this one isn't a loan and you aren't required to repay the money, unle
ss you sell the home within the first three years. This is a perfect solution for our military servicemembers. Folks PCSing into Eielson Air Force Base or Fort Wainwright Army Post who are first time homebuyers can and should take advantage of this opportunity.
How it works:
Folks buying a home in Fairbanks or the surrounding communities will receive a income tax credit equal to 10% of the purchase price with a maximum tax credit of $8,000. The average price of a single family home in Fairbanks is $242,000, meaning just about everyone will qualify for the maximum tax credit.
The $8,000 is a credit against your current tax obligations. If you owe $10,000 in taxes, after the tax credit is applied, you'll owe $2,000. Likewise if your tax bill is only $5,000 you can expect a $3,000 rebate.
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The premier real estate team in the Golden Heart City; we provide results oriented buyer and seller representation.
We are Jesse & Kathy Clifton, better known as simply The Spouses. As full-time professional REALTORS®, we are committed to providing our clients with the most knowledgeable, professional and experienced real estate service available.
The-Spouses.com is the creation of Jesse & Kathy Clifton, REALTORS®. Frustrated with the limitations on most websites available to our customers, we created the website in order to give not just our customers, but all of Interior Alaska, a great real estate experience.
The most differentiating aspect of The-Spouses.com is that we make it easy to find the properties and information that you want. Our goal is to provide the most real estate information to the Fairbanks community - even to those people who may never choose to use our services.
We don't believe that you should have to fill out long registration forms just to find out what is on the market. Nor do we believe that just because you want to know how much that house down the street is listed for, you should be harassed by some agent you've never met and don't want to talk to.
The-Spouses.com is built around a belief in good customer service and non-pushy sales. To that extent, we have created a company whose sole objective is to help serve clients who decide that they are ready to buy or sell their home.
Integrity, Honesty, and Great Customer service are the hallmarks of our practice.
In short, The-Spouses.com is about having a great real estate experience, whether you are buying and selling, or just browsing to see what's out there.
We specialize in residential real estate; new construction and existing single and multi family homes as well as undeveloped land in Fairbanks and the surrounding communities of North Pole, Salcha, Fox, Two Rivers, Ester, Ft. Wainwright Army Post and Eielson Air Force Base. As full-time professional REALTORS®, we are committed to providing our clients with the most knowledgeable, professional and experienced real estate service available. Any agent can open a door; we believe it's our responsibility to protect and promote your best interests throughout the transaction. Anything less is simply unacceptable.
Search the Fairbanks MLS - View Our Showcase Homes - Read Our Monthly Market Reports
Jesse & Kathy Clifton
Spouses Selling Houses
Jesse Clifton & Associates, REALTORS
250 N. Cushman Street, 4G
Fairbanks, Alaska 99701
Direct: (907) 699-6024 Fax: (866) 421-4339
www.the-spouses.com - jesse@the-spouses.com
Follow us on Twitter: @thespouses
Fairbanks; The Golden Heart city of Alaska.
The city of Fairbanks is located in Interior Alaska near the confluence of the Chena and Tanana Rivers in the Tanana Valley. We are 360 miles north of Anchorage, 125 south of the Arctic Circle, 3,500 miles from Los Angeles and 4,200 miles from Washington, DC. Nicknamed "The Golden Heart City", Fairbanks is the largest city in the interior region and the second largest in Alaska.
Founded in 1901 by Captain E.T. Barnette as a trading post on the Chena River, the community grew and was eventually named after Senator Charles Fairbanks. The discovery of Gold in the hills just north of Fairbanks caused a mass influx of residents, bringing the population to almost 11,000 in 1910. Ladd Field, now Fort Wainwright, was built in 1938 followed by the Alcan Highway in 1940's and Eielson Air Force Base, formerly Satellite Field, in 1943, bringing the military population to almost isto be just shy of 19,921.
An Act of the Alaska Legislature created the Fairbanks North Star Borough in 1964; the year of the fateful Good Friday Earthquake that shook anchorage and three years before Fairbanks suffered a devastating flood at the hands of the Chena River. According to records the population of Fairbanks in 1880 was approximately 2,600 and has since swelled to almost 90,000 in the North Star Borough with projections for nearly 105,000 by the year 2018.
The Fairbanks economy is based on tourism, the state's oil revenue and federal government expenditures for the military, administration of federal agencies and research grants. As Alaska's second largest city, Fairbanks is an important trading, transportation and military center. Residents of nearby North Pole, Fort Wainwright Army Post, Eielson Air Force Base and surrounding areas come to Fairbanks for shopping, entertainment and employment.
The Interior and Fairbanks in particular are known to have some of the most extreme weather conditions in the country due to significant changes in solar heat throughout the year. The winters are long, usually lasting from late September to mid-April. From November to March, daylight ranges from ten to less than four hours daily and temperatures can drop to 50 degrees below zero. The summers are very warm, often reaching 80 degrees Fahrenheit and sometimes reaching the 90's. The sun is above the horizon eighteen to twenty-one hours per day. August and September tend to be the rainier months and snow tends to fall the last week of September leading back into the winter season.
Fairbanks is home to the University of Alaska Fairbanks; the flagship campus of the University of Alaska system. Originally founded as the Alaska Agricultural College and School of Mines in 1917 it became the University of Alaska in 1935. UAF remains the only campus in the University of Alaska system that awards doctoral degrees and holds the distinction of being one of only thirteen Land, Sea and Space Grant Universities in the country.
The University of Alaska Fairbanks encompasses eight campuses, plus the Center for Distance Education, offering 163 degrees and 25 certificates in 115 disciplines. 9,681 students are currently enrolled at the various campuses in the UAF system with 88% pursuing an undergraduate degree. 833 certificate, associate or baccalaureate degrees and 204 master's and doctoral degrees were conferred in the spring of 2007.
Located on the main campus of the University of Alaska Fairbanks, The Rasmuson Library is the largest library in the State of Alaska with 1.1 million volumes and electronic access to more than 20 million titles worldwide. The UAF campus is also home to the Museum of the North which boasts a rare and unique collection of more than 1 million objects.
University athletics are a vital part of the community. Dubbed the Nanooks; UAF athletics are composed of Division I hockey team, a Division II basketball team, mens and women's cross country skiing, rifle, women's swimming and volleyball.
Alaska is an outdoors paradise. We are blessed to have incredible hunting and fishing opportunities within an hours drive of Fairbanks. No matter what outdoor activity you're into, you can find it in Fairbanks. Summer or winter, there are plenty of sports to keep you breathing fresh Alaskan air.
Having called Alaska home for almost 30 years, we can't imagine living anywhere else. Considering a move to Fairbanks? Call at 907-699-6024 or contact us online; we would love to hear from you.
We love our clients; most have become close friends who continually refer other friends and family members to us because they know we have their best interest at heart. Our greatest achievement is in knowing we've made a difference; professionally as well as personally.
Kathy & Jesse! What a pair of "Spouses Selling Houses"!! Truly two wonderful helpful people that anyone wanting to buy or sell a house would want to know! When we were in the market to buy and sell, they never pressured, they were on top of every stop that needed to be taken. They provided answers to every inexperienced question we asked. They took car of unseen details and went to bat when there were snags. Truly a couple we feel are friends. Our home is our haven, thanks to these two hard working "Spouses". Recommend them... You had better believe it! ~ Mr. & Mrs. Mobley, Fairbanks
Jesse and Kathy are absolutely the best! They both gave me very good advice and I was happy to have folks who would give me honest advice. It was the first time I had looked into buying a house and lots of friends told me to avoid going through a REALTOR, that I would find better deals if I didn't have to deal with the REALTOR's "take." My friends were so wrong, Jesse and Kathy know the housing market, understand the intricacies of housing loans, and have a complete grasp on all the legalities of buying and selling. They definitely went to bat for me and protected me from my own naivety. I was and am very grateful that Jesse and Kathy were there helping me through every step of a confusing and some times frustrating process. ~ Ms. G. Russell, Fairbanks
Jesse assisted me with the process of finding and financing my home in Fairbanks in record time. I came into town on a mission with time constraints and high expectations that it could happen, and thanks to Jesse, it did! When the time came to make a decision, he gave me sound and honest advice... Jesse has the instincts, patience, and knowledge to match home to owner. And after the deal is struck, he is still there to guide you through the process of ownership. You know he is a phone call away and never too busy to take your call. Both he and his wife, Kathy, have a genuine interest in their clients. I don't believe we are seen as just customers, but as new members of the community to be supported and welcomed as neighbors and friends. They both continue to make me feel that way. ~ Ms. Salisbury, Fairbanks
We had our home listed with another agent for more than 8 months before listing it with Jesse & Kathy. The friend that referred them to us said they were the best agents in town. We agree! They gave us the honest advice we needed to hear about our asking price and the repairs we needed to make. Our home sold in a month and we are now in our new highly recomment them to everyone we know. ~ Mr. & Mrs. L. Trumball, Fairbanks
We love Jesse & Kathy. They are not just our Realtors. They are our friends. We were a wreck trying to coordinate selling our current home and closing on the new one. Despite probably driving them crazy with phone calls and questions, they were always available. We can't imagine buying or selling a home without their help. ~ Mr. & Mrs. T. Roberts
Dear Jesse & Kathy, Thank you so much for all your help. Not having ever bought a house before I had no idea what I was getting into. You guys are the best! ~ S. Miller, North Pole
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