Wasilla Real Estate News, Valley Market Real Estate

Wasilla and Palmer Septic Systems January 18th, 2008

Categories: Wasilla Real Estate News

Most of us here in the Matanuska Valley use septic systems.  Except for a small minority of people in the Cities of Palmer and Wasilla, the rest of us have to take care of our own sewage.  Those lucky people on sewer systems can flush and forget.  But if we forget, we will be reminded in a way that we will likely remember the rest of our lives.

There is a lot to say about septic systems, and I could tell a lot of gross stories, but there are really only two things to remember.

• 1. Ensure there is a clause in your initial offer on a house that allows you to receive and personally approve the septic inspection.
• 2. Pump your system often.  A pumping every year is not too often and every two years is probably the minimum.

1. The clause in the contract.

The clause about the septic system needs to allow you to back out of the transaction with no consequences if you decide not to approve the inspection.  I have seen septic systems pass an engineers test because they do meet the minimum requirements set by the Alaska Department of Environmental Conservation, (DEC), but were obviously ready to fail soon.  It would be nice to be able to think about that issue without being locked into a contract.

Basically, the DEC needs to see that the septic system can take 150 gallons of water per bedroom into the system and then leach it back out in a 24 hour period.  If the engineer finds that the system is mostly full of standing water but can still take the 450 gallons for a three bedroom system at the very top of the leach field, and then barely leach that out in 24 hours…it passes.  But it will likely fail in a short time and when it fails, it isn’t pretty.

Many listing licensees will balk at the clause about the buyers personal approval of the septic system.  They feel that a buyer should accept any system that passes an engineer’s test.  I disagree, a buyer has the right to understand what is happening with the septic system even if an engineer passes the system.  It is the same as any other disclosure.  The buyer has the right to know and make their decision after they know.  A septic test is a new disclosure to a buyer who has three days to change their mind about a transaction after that new disclosure.  Often these tests are given to a buyer just before closing which raises the stakes on each side of the transaction.

2. Pump the tank.

I often go on listing appointments where the owner tells me they have a great septic system.  I ask them how they know they have a great system and they tell me that it has worked great for years with no maintenance whatsoever.  I usually cringe and warn them to get ready for a $5000–$10,000 repair as part of the sale.  A septic system that has gone a long time without pumping has a good chance to fail an engineers test.

Septic systems are designed to turn solid human waste into liquid that can be leached out into the ground water.  They do this work through biological action in the septic tank.  The little microbes in the septic tank break down the solids so that it can be dissolved into the water and then drained out into the leach field.  These little bugs work better down south where things are warmer.  They don’t work as well in Alaska and that is why your tank should be pumped on a regular basis.  You aren’t concerned about the liquid in the tank…it’s supposed to be full all the time.  You need to pump the solids out so they don’t get into your leach field and plug it up.

An off topic but thought provoking factoid:  I recently read a book about composting toilets that said the waste from an average person for a year could be packed into a 1 cubic foot box when totally composted and dried.  To get rid of this amount of waste, the average American flushes down the drain over 10,000 gallons of pure drinking water a year, turning that pure water into a hazardous substance.  Something to think about while many parts of the world worry about water shortages.

 

 

 

 

 

 

 

Written by Marty Van Diest 1 Comment »

My Dad’s a Blogger! January 17th, 2008

Categories: About Wasilla Real Estate News

Who says the internet is for the young generation.  Sure, my teenagers seem to find their way around the web like it’s their back yard, but we more mature folk can use it as well.

My Dad, Gale Van Diest, seems to take to it naturally.  He introduced my to Skype, and talks with his grandkids on Instant Messenger.  Can you believe it…he’s even on Facebook!

Now he has a blog…check it out at Gale’s Blog .

Written by Marty Van Diest Please leave a comment.

Wasilla Real Estate, Monday Market Memo January 15th, 2008

Categories: Monday Market Memo

For the week of January 7–14, 2008 here are the real estate statistics for the Matanuska-Susitna Borough.  This includes Wasilla, Palmer and surrounding areas.

These statistics are residential house sales, everything from cabins to mansions.

		Average Price	DOM
New	52	$266,102	.
Total Active	676	282,262	161
Pending	25	$240,133	102
Closed	25	$239,536	94

The new listings took a big jump this week. If you read the previous Monday Market Memos you would have expected that.  Are total inventory increased by about 25 listings this week.  The inventory will likely continue to grow over the next few months.

Pendings and sales came up slightly, I expect that they will hold pretty steady with slight increases over the next few months.  In the summer we usually see these running at about 30–40 per week, so this isn’t bad for mid-winter.

An interesting observation is that the average price for the total inventory has dropped about $20,000 over the last year while the average sales price has remained pretty steady.  Perhaps that means that sellers are starting to list their homes at more realistic asking prices.

We have been pretty busy this past week, writing offers on 3 properties and listing another 3.  This is good action for this time of year.  If you would like us to help you find a property or sell the one you have, give a call on the cell.  907 232–7900.

Written by Marty Van Diest Please leave a comment.

Wasilla Real Estate: Monday Market Memo 1/1-1/7/2008 January 7th, 2008

Categories: Monday Market Memo

These are the real estate stats for the first week of 2008.  New listings are starting to hit the market.  More than twice as many new listings came on the market compared to the previous week. 

But we had enough properties leave the market so that the total active listings actually dropped for about the 5th week in a row.  We have about 7 months worth of inventory at this week’s level of absorption.  That is still a buyer’s market.

		Average Price	DOM
New	28	$242,629	.
Total Active	650	284,608	162
Pending	17	$189,341	137
Closed	22	$197,560	98

 There are a lot of new listings in the works right now.  I’m sure we will see quite a few more choice properties hit the market in the next couple months. 

Interest rates are very low right now.  If you haven’t been paying attention you might be surprised to find that 30 year fixed mortgages can be locked in at 5.6% and it might go lower.

 

 

Written by Marty Van Diest 1 Comment »

Wasilla Real Estate Predictions for 2008 January 2nd, 2008

Categories: Wasilla Real Estate News

The Wasilla and Palmer real estate market indicators are mostly positive for 2008.  Below are some of the positive things going on in the valley which create continued demand for housing.

Retail: Target, Sportsmans Warehouse and many other stores are opening or have recently opened.  Retail jobs are not high paying but they do provide jobs for quite a few people.

Prison: Apparently the prison in Palmer is going to be expanded and another one is to be built in Point Mackenzie.  These will provide good construction jobs and long term jobs for state employees. 

Natural Gas: This is not about a gas line from the North Slope but about local coal bed methane production.  Fowler Oil and Gas plans the first well in the spring of 2008.  Many sites throughout the valley are being considered.  If they tap into profitable gas, this will be a major boost for the local community.

Military: The military bases in Anchorage continue to grow.  This means that many of the soldiers and airmen are looking for homes close to the base.  Wasilla and Palmer are both less than a one hour commute.

Oil Prices: What can I say…they are through the roof.  If oil prices remain high, economic activity in Alaska will continue to be robust. 

The Mat-Su Valley is a bedroom community for the entire state.  People live here who work in Anchorage, the North Slope oil fields, Gold and Zinc mines throughout the state, and on fishing boats in Bristol Bay and the waters off the Alaska Peninsula.  Our local economy is tied directly to Alaska’s economy which is mostly tied to oil. 

In the short term, (10–30 years), Alaska will continue to profit from oil and gas.  But we must think about what happens when solar energy becomes economically viable?  I believe that is inevitable and will happen within 30 years or less.  There will be no demand for oil and gas then, we will need to sell something else…or move.

……………………………………………………………………

Negative:

Alaska is really a mini-economy and the Mat-Su Valley is a micro-economy, we are completely overshadowed by the national and global economies.  No matter what the bumper stickers say, we really do need to care about how they do it “outside”. 

The financial markets are still in a turmoil, and depending on who you listen to, they could get better or a whole lot worse.  If the financial markets get a lot worse, we are in for continued tough times because it will be harder to get home mortgages, and business loans.

We have seen about a 20% decline in real estate volume this year that is primarily a result of the financial crisis.  People that could get a mortgage last year, cannot this year.  That creates a lower demand. 

Because we did not see the real estate frenzy that many of the big national markets had, we haven’t been hit as hard as they have during the credit crunch.  Many of the big markets in the South West and South East part of the country are reeling from 40–50 percent declines in property values.  These things affect us locally as well.

So all our predictions about the local economy are tempered by the fact that we are really along for the global economic ride.  It’s a pretty sobering realization that the building materials here in the Mat-Su Valley have to be shipped from all over the world.  If there is a major hiccup in China’s economy…we will feel it right here in Wasilla.

 

Written by Marty Van Diest 4 Comments »