Several of us went to Girdwood for the slush cup and my oldest son Aaron's birthday.  Boy were there some interesting contestants this year.  I posted a few cute ones, the hot dog and the tin man.  To see some photos click here 

Blogger Asks Consumers: 'Will You Regret Not Buying?'

With low interest rates, motivated sellers and reduced prices in many parts of the real estate world, will people look back at 2008 and wonder why they didn't take advantage of an ideal buying situation? In 1988 and 1989 there were lots of good deals, but few took advantage of it.  A few years later, many found were kicking themselves in the pants wishing they had. Here is an article that was posted by Kelly Sibilsky with RE/MAX Unlimited Northwest on March 30, 2008.

 

Will 2008 be the year you wish you'd bought real estate?

With lower interest rates and plenty of homes to choose from, now may be the right time for you to purchase real estate. Today's lower interest rates may not be around when prices flatten out, so trying to time the market rarely works to your advantage. Another problem with trying to time the market is that it requires a rising market to know just where the bottom was ... hindsight is always 20-20, isn't it?

In many cases, purchasing a home may be cheaper than renting. In my market area, it is difficult to find a decent rental unit for under $1,300/mth. That's $15,600/year that could have gone towards your own mortgage, instead of paying your landlord's mortgage for him. Your landlord loves you, by the way, because you're making him rich. You are literally buying his property instead of your own. Think about it.

Then there is the distressed (foreclosure) property market. While many of these properties have condition issues and other challenges, in many cases they are priced below market value and offer opportunity for those willing to put in a little sweat equity to make a profit. If you are considering purchasing a distressed property, I suggest you consult a real estate agent who specialized in the foreclosure market to assist you. It can be tricky to navigate.

All investments carry some level of risk, and purchasing real estate is certainly no exception. This is not the time to make decisions that have not been carefully analyzed. What is a good purchase for an investor may not be a good purchase for a typical homebuyer. This is why you should always work with a real estate agent who can guide you in the right direction and provide the information you need to make an educated decision based on your individual circumstances.

Many people wish to wait "until next year, when prices may be lower" which of course, is a risk in and of itself. Prices may be lower, or may be higher. How many times have you waited for that special sweater at your favorite store to be marked down, only to discover that it was snapped up by someone else before you had the chance to purchase it? It may be a simple analogy, but the principle is the same: sometimes you snooze, you lose. If that's okay with you, then go ahead and wait it out. Hopefully you won't want to kick yourself a year from now.

The truth is, none of the experts can accurately predict the real estate market any better than the experts can accurately predict the stock market or what gas prices will be a year from now. If you purchased real estate in 2006 or 2007, you most likely got a great home at a terrific price with a low interest rate. Provided you stay in your home for several years (something I always recommend), you will benefit when property values eventually rise again.

I actually purchased my own home when the market was so hot that homes were selling in just days and for full list price. My home is now worth about $100,000 more than it was when I purchased it. Had I purchased a few years earlier, my home may be worth $25,000 more than that. Had I purchased just two years ago, my home may be worth about what I paid for it. That's the nature of real estate. Values go up, values go down, and when you purchase and sell makes all the difference.

For the typical homeowner, purchasing real estate should be a long term investment as well as a good little tax deduction, a place to live and make memories that will last a lifetime. Would I be comfortable selling my home in today's market and purchasing a new home? You bet your booties. In fact, I wish I could do just that, because I feel this market offers tremendous opportunities. The problem is, it's not the right time for me to do so because my youngest son has three more years of high school. If the market values are higher in three years, I will make more money on the sale of my home. Of course, I will also be paying more money for my new home. Therefore, I will not have gained anything by waiting and may actually lose money because of the higher purchase price on my new home and potentially higher interest rates. But that's life, folks. Sometimes you need to make decisions based on what is right for you and your family instead of making decisions based solely on the financials. So will 2008 be the year you wish you'd bought real estate?

First Quarter Marketing Report—The Good, The Bad, The Ugly

 

There is really no way around it.  The first quarter residential home sales were slow.  In the Palmer-Wasilla area the number of homes sales in the first quarter of 2008 as compared to 2007 was down 30 percent and the home sales volume was down 33%.  The total number of active homes for sale is higher than last year during the first quarter.  We currently have 737 homes on the market as compared to 666 last year.  What does all of this mean?  It means most sellers are in a pricing war and a beauty contest at the same time.  

                                    First quarter 2007          First quarter 2008        % change

Number of home sales              299                              209                  -30%   

Average Sales Price                  $229,090                     $221,507         -3%    

Appreciation                                                                 -3%                 -3%    

Average Days on Market          86                                110                   28%   

Change in interest rate               6.25%                          6.00%              -4%    

 

What can you do if you want to sell?  First, have your home STAGED.  First impressions can really make or break a showing.  With more properties on the market to choose from, we advise all of our sellers to make the most out of every showing opportunity.  And this is where staging comes in.  If a home is staged properly, then the seller has a much better chance of selling their home for more money and in less time.  Statistics bear this out.  In fact, one survey found that staged homes sold for almost 7 percent more than homes that were not staged, and sold in half the time! We provide this staging service for free to all of our clients.   Next, make your house SHINE! Everything must be spotless, including floors, walls, drapes and especially windows, and even door bell pads! ELIMINATE ODORS!  Bad odors can kill a showing quicker than anything.  Burn candles, bring in flowers, and display potpourri.  People really notice this, so sellers should take care here!
REMOVE CLUTTER: Remove excess furniture and knickknacks.  Only keep essential furnishings and focus attention on your rooms’ best features.  Personal property can distract from the overall showing experience.  And finally: Use COLOR!  Fresh paint makes a huge difference. Have carpets, countertops and cabinets in the latest styles and colors. Add flowers and upgraded landscaping to improve your home’s curb appeal.  By following these basic steps, a seller can do a lot to maximize their market opportunity and increase the perceived value of their home. If you would like more help with getting your home ready to sell, contact me at Kristan@KristanCole.com or 907-373-3575.

My good friends Dale and Robin Hamitt caught this 80 pound King Salmon a few years ago.  Sign up for our free King Salmon Fishing trip for two by emailing me and maybe you can catch one like this too.