Wasilla Real Estate News, Valley Market Real Estate

Wasilla Real Estate News, Monday Morning Market Memo October 29th, 2007

Categories: Monday Market Memo

October 22–29 Real Estate Statistics
Wasilla, Palmer, and the rest of the Mat-Su Valley

Below are the Statistics for this week. Our inventory is almost identical to last week.  Pendings are down.  The Average price is below $200,000. 

The accepted industry definition of a buyers market is one that has more than 6 months worth of inventory.  We currently have slightly more than 8 months worth of inventory on the market.  Compare that to some of the areas in the country that had the hottest markets during the last 5 years.

Las Vegas, Southern California, and Pheonix all have huge supplies of inventory.  Their real estate market was booming just 2 years ago and now it is bust.  Some areas of Florida have over 50 months of inventory. 

We are only into the buyers market category by a couple months.  That has some ramifications for buyers and sellers.

Sellers
It’s a buyers market.  That means that buyers have a lot of homes to look at.  If they can’t come to agreement on yours, they can try the next buyer down the street.  They are shopping price.  No amount of marketing, open houses, or staging will help if you aren’t price right.  Get the price right and it will sell.

Buyers
It’s a buyers market…but just barely.  That means that although a seller may come down to an attractive price, they aren’t going to drop by 40%.  It’s a waste of your time, and everyone elses time, to make a ridiculous offer. 

I do know of some great homes on the market right now.  I showed a brand new 3 bed, 2 bath, 2 car garage ranch this weekend priced at less than $160,000.  And I think the builder will come down from that. Give me a call, I’d love to help you get a great deal on a home.  (907) 373–0999

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Hatcher Pass Slide Show October 27th, 2007

Categories: Alaskana

Anchorage Daily New photographer Marc Lester has a fantastic slide show of Hatcher Pass on adn.com.  It’s too good not to post for all my readers as well. 

I wrote about Hatcher Pass last December when we watched a bunch of kids downhill skiing.  There were having blast.  Hatcher Pass is a special place for our family.

Hatcher Pass is one of the crown jewels of the Mat-Su Borough.  It’s a fantastic get-away both summer and winter.  The photo at left was from an overnight camping trip with my kids up by “Monkey Face Rock”.  There is a beautiful valley beyond the rock.  These photos were taken by my daughter Teressa.

Below is the valley above our camping spot.  Is that pretty or what?  That clear mountain stream came directly out of the rocks just to the left of the photo.

Here is just partial list of things to do in Hatcher Pass:

• Hike
• Camp
• Take Photos
• Pick Berries
• Cross Country Ski
• Down Hill Ski
• Go Sledding
• Snow Mobiling
• Hang Glide
• Explore Old Mines
• Identify Wild Flowers
• Watch Wildlife, Everything from Pikas, Ground Squirrels, Moose, Bear, Foxes, Raptors, Ptarmigan, Marmots and more.
• Hunt Moose, Bear, and Ptarmigan in season.
• Rock Climb
• Mountain Climb
• Explore WW 2 Bombers

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First Right Of Refusal, It’s a BAD Idea October 27th, 2007

Categories: For Sellers

A Wasilla home owner recently called me with questions about a first right of refusal. It seems that his neighbor wanted to buy his property in case he should ever decide to sell. The neighbor acted like it was not a big deal. It was presented as if it were a friendly gesture between two neighbors.

A first right of refusal allows the holder of the right a chance to buy a property at the same terms another buyer has presented. The holder of the first right of refusal usually has a specified period of time to make the decision to buy or not to buy.

For a seller, that’s like entering a boxing match with handcuffs on your wrists. You have to notify buyers that if they like your property enough to write a bonifide offer with earnest money, pre-qualification letter, and everything else, you have to show their offer to someone else first. The buyer has to cool their heels while they wait to see if all their efforts are in vain. How many sane buyers are going to do this?

Don’t let anyone talk you into giving them a first right of refusal.

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Monday Morning Market Memo Oct 12-22, 2007 October 22nd, 2007

Categories: Monday Market Memo

Wasilla Real Estate News, Real Estate Statistics for Wasilla, Palmer and the rest of the Mat-Su Borough

The inventory dropped a little this week.  Not because we sold more houses but because fewer new listings came on the market.  People are reluctant to sell during the months of November and December.  We will probably not see the amount of new listings pick up significantly until January or February.

It is interesting to note that there are several new construction houses in this recent list of closed sales.  People are still buying new homes and builders are still building.  The days of building any old house and they will come, however, is gone.  A builder needs to do his homework before beginning a project on speculation.

I note that of the twenty three closed sales this week, eleven sold in less than 40 days and for full price.  Most of the others took some major price reductions to sell.  A couple of them were new construction houses that were on the market for a long time.

Typically, a spec house, (this is a house built by a builder on speculation), will be marketed from the time he clears the lot, sometimes before that.  But it usually actually sells about the time it is all finished, or close to finished, so they are on the market a long time.  Those tend to drive up the average days on the market.

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PRICE Is The Answer To Your Selling Problems October 18th, 2007

Categories: For Sellers

*** Warning  ***
This is a hard hitting post about home prices in Wasilla, Palmer, and the Mat-Su Valley.  If you would rather be placated, you may want to click on another web-site.

Every Tuesday I meet with a group of Realtors in a secret valley location.  OK…we meet at Meads Coffee House in Wasilla.  We meet to discuss current issues in the Mat-Su Valley real estate market.

Lately we have often discussed what it takes to get a house sold in this slower market.  Different things are always discussed.  Location, condition, and marketing are three items always on our mind. 

If a house is in the right location, it will always attract attention, but it won’t necessarily sell.  People will note it on the Alaska MLS, they may even go take a look.  But if the price isn’t right, it won’t sell.  Granted, you can get a higher price for a house in good location than you would for a similar house in a poorer locaton. But you can’t expect a buyer to pay very much for that.

Once in a while, the micro-location makes a difference.  Perhaps a family with young children is just moving to Alaska and finds a house next door to Grandma and Grandpa.  For them, it might be worth paying an extra $5,000.  I’m not sure how Grandma and Grandpa would feel about it however.

But if you are having problems selling your home in this market, it most likely isn’t because of location, condition or marketing.  If you have a problem selling your home……..

Price is the answer, PRICE is the answer, PRICE IS THE ANSWER!

This was the unanimous opinion of last Tuesdays discussion.  Almost any house can sell if it’s priced right.  There are a few homes in the Mat-Su Valley that you literally can’t give away because of environmental issues, but I suppose if you paid the buyer enough, they would take it.  So price is still the answer.

That is not to say that your home shouldn’t be in it’s best possible condition, or that it shouldn’t be marketed well.  But if you have been on the market for 90 days or more without a buyer, it’s time for a price reduction.  Face it, if it’s been on the MLS with photos for that amount of time almost all the buyers in your price range have rejected it.  You are just waiting for a new buyer to come into the market that sees the value in your house that others can’t see. Unless Grandma talks her kids into moving next door, it isn’t selling at the current price.

It is very important to price your home at it’s current market price right out of the gate.  If you are too high you will realize that after 60–90 days.  By then, you may not be able to get what you would have received when you first listed it.  Not only is it shelf-worn, the market may have dropped out from under it.  Price it right, and it will sell right away. 

People talk about how long it takes to sell a home.  Some say it takes 90 days or 120 days.  The truth is that a home that is priced right will sell in 30 days or less with no reductions in price.  It is only very occasionally that a home sits on the market for 90 days or more and sells for it’s full listed price in our current market.

People are still buying homes in Wasilla and Palmer.  There are about 80 buyers this year for every 100 that we had last year.  These buyers are looking at a LOT of homes before they buy.  I show people enough homes that they become experts in their price range.  It isn’t hard to tell when a home is priced right after you look at 25–30 homes in a particular price range over a period of a couple weeks.

Give me a call or send me an email about pricing your home.  I can work on a consulting basis or a commission basis, your choice.  My cell phone number is 907 232–7900.

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