Homebuyers today are faced with the age-old question in real estate, "To buy or to rent?" As you look closer at the costs of renting, you will quickly notice that the prospect of buying a home in Alaska is much more lucrative, especially when it comes to long-term wealth.
Homeownership offers a better way to produce wealth and helps boost your net worth, unlike renting. If you are considering purchasing a home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, or the surrounding areas this year, below are four reasons why you're making one of the wisest financial decisions to date:
You are paying your own mortgage
Each month you have a housing cost, but the question is whose housing cost are you paying? When you ...
If you've been considering buying a larger or more luxurious home in Alaska, now is the time to start taking those next steps! Buyer demand is high, which means you could be competing with others for a property, however, with home prices and mortgage rates expected to increase, you won't want to wait any longer.
As your Alaskan real estate experts, Madden Real Estate is here to help you through your next home purchase in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, and the surrounding communities— and that means making sure you are an informed buyer, especially when upsizing.
Below are three things you should know about moving up to a new home this year:
Note what you want vs. what you need
When it comes to ...
Becoming a homeowner in the Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, and North Pole areas is exciting, but the thought of paying on your mortgage for the next 30 years may be anything but that. Not to mention, there are many other expenses associated with your home purchase— the inspection, the down payment, the closing costs.
Alaskan homeowners can easily feel overwhelmed, but as your local real estate experts, Madden Real Estate is happy to provide a few ways to keep those expenses down and pay off your mortgage early!
Make an extra payment
One of the simplest ways to start paying down your mortgage is to make one extra payment each month. Most lenders today...
When it comes to buying a home in Alaska, you have many options laid in front of you— from the number of bedrooms and bathrooms, to the location, to your initial offer. However, one option you will want to avoid altogether is the decision to go it alone, without an Alaskan real estate agent on your side.
Purchasing a home may seem like something you can handle yourself, but after doing all of the research, you will find the process is best left to the pros.
Below are five reasons why you should never buy a home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, or beyond without the help of a real estate agent:
They have the experience
You could be on the brink of purchasing your second, maybe even fifth, home, but keep in mind that real estate agents have...
In today’s real estate market, inventory is low, competition is fierce, and other buyers are willing to do whatever it takes to secure a home. As a result, bidding wars are becoming more and more common and buyers can easily find themselves in a multiple offer situation.
Madden Real Estate has decades of experience to help you get through a bidding war in Alaska real estate and we've included a few of the best tips for local buyers in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding communities below!
Set Emotions Aside
In a bidding war, it’s best to set your emotions aside. We know all too well how easy it is to fall in love with a home in Alaska,...
If you are a current Alaskan homeowner or renter, now may be the time to consider if your living space is suitable for both your immediate and future needs. Given the high number of buyers in today’s market and rapidly rising home prices, local buyers should act sooner rather than later when it comes to selling your Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole home and moving on to make a purchase.
As your local Alaskan real estate experts, Madden Real Estate understands the importance of moving up (or down!) if it means your home will be better suited to your needs. How can you tell which is right for you this summer? We’re including a few of our best tips for you below!
If you’re not sure if you need to upsize or downsize ...
Buying a home in Alaska is undoubtedly one of the biggest purchases you will make in your lifetime. It's important to thoroughly research ahead of time, especially as you begin the mortgage process and working with an Alaskan lender.
However, finding a lender you trust can be a process in itself, not to mention remembering to ask the proper questions. Below we've included five great questions to ask Alaskan lenders this year as you prepare to buy a home in Fairbanks, Anchorage, Eagle River, Wasilla, Palmer, North Pole or the surrounding areas.
1. Is now a good time for me to buy?
A lender will look at your financial situation and determine if now is the best time for you to buy a home.
2. Which debts...
The two major costs associated with buying a home in Fairbanks, Eagle River, Anchorage, Palmer, Wasilla, North Pole, and the surrounding communities are the down payment and the monthly mortgage. However, there are a few others that buyers tend to overlook— causing both surprise and shock when the time comes to sign on the dotted line.
It is always wise to do your homework prior to house-hunting in Alaska to ensure that you understand each and every one of the costs involved.
Below are four hidden costs of buying a home and to avoid disappointment later, it is important to factor them into your budget before you find the one.
Alaskan home buyers can expect closing costs to span anywhere...
When shopping for a home in Alaska, there will be many factors to consider, making it easy to overlook others. For instance, if you're concerned with the number of bedrooms, you may be quick to pass over how long your commute might be in this new location (if you're not working at home these days, that is).
As your local Alaskan real estate experts, Madden Real Estate has included below five factors not to overlook in homes in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and beyond:
Your commute time
As we mentioned above, if you're not working from home and are driving into work, it is important to take into account how long it will take you to get there each day from a new location. You may love the home itself, but if it's going to take you much longer to commute every day, you will want to weigh your options....
If you're on the fence about buying a home in Fairbanks, Eagle River, Palmer, Wasilla, North Pole, or the surrounding areas, you might be surprised to know that what's been holding you back is a complete myth!
There are dozens of myths flying around the Alaska real estate market surrounding everything from necessary credit scores to the documents you need to qualify for a mortgage.
As your local Alaska real estate experts, we're debunking some of the most common Alaskan homebuying myths below so you can buy a home with confidence this year!
Myth: You need a perfect credit score
Many would-be homebuyers are held back from the process simply because they don't think their credit...
We're just days away from the new year and we're all glad to put 2020 behind us! There will be much to look forward to in the coming months, and we are excited to report one of them is the real estate market!
As your local real estate experts in Alaska, we are including below three of the most important reasons we can be optimistic about real estate in 2021.
The economy will only improve
According to Tim Duy from the University of Oregon, “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for...
Despite the current global health situation, Alaska real estate is still booming! In fact, during a time when you'll find yourself thinking you're one of few trekking through the snow to find the perfect Alaskan home, you might be surprised to know other buyers are out in high numbers doing the same thing.
This winter will be different in the local real estate market and assumptions you have about buying an Alaskan home in the winter could cost you.
Below we're sharing five common mistakes to avoid when buying a home during this time of year. After all, you don't want to lose out on your dream home just because you thought others were waiting until spring to buy!
Ending up in Holiday Debt
In order to remain in good standing to buy a home...
Moving to a new home in Alaska can be a stressful process, no matter what time of year it is.
In fact, failing to do enough research before your move can cause even more problems that will dampen your excitement about your fresh, new start.
As your local real estate experts in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding communities, Madden Real Estate is sharing three common moving hassles that can throw a wrench into new homeowner plans for an easy transition.
Each of these can be avoided with enough planning and research, so you will want to begin long before Moving Day!
1. Not Researching the Moving Company
When you're choosing a moving company to help shuffle your belongings from home to home, it is important to do the background work. Gather recommendations from family and friends, or even your...
It may seem hard to believe, but bidding wars are back! Competition has increased in Alaska real estate even amidst the current economic and global health situation. More and more homebuyers continue to flood the real estate market, and prices continue to rise, thus contributing to more competition with offers.
According to the NAHB's Quarterly Housing Trends Report, "30% of active buyers reported getting outbid by another buyer in the second quarter of 2020, significantly higher than the comparable 18% share a year earlier."" Bidding wars have been reported as most common for bargain-priced homes where buyers are forced to compete with real estate investors.
So, how do you make sure you snag your Alaskan dream home and outbid other interested buyers? How can you be certain your offer stands out among the rest?
Below are five tips to...
For today's homebuyers in Alaska, there are many choices associated with local real estate. From when to buy or when to sell, which mortgage type is best and which Alaskan community to move into, there is also one other important question homebuyers must ask themselves— new construction or existing?
The prices can vary dramatically and while you may prioritize having a brand-new home over a lived-in property, it's important to consider the financial differences between the two.
New Construction Upgrades
When you visit a model home in an Alaskan community like Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole or beyond, it can be easy to feel attached to all of the modern features....
With mortgage rates still at historically low rates and home values rising, many Alaksan residents are currently contemplating a move— even in the midst of the current, and somewhat uncertain, economic climate. However, if you've been wondering, now is indeed the time to purchase a home with more storage space, more bedrooms, more overall square footage or even a home in a better neighborhood.
As your real estate agents in Fairbanks, Eagle River, Palmer, Wasilla, North Pole, and beyond, Madden Real Estate is happy to help you find your bigger, better dream home, but there are just a few factors to consider in your decision to move up.
The right mortgage
When moving up in ...
When you're shopping for a new Alaskan home, you'll want to research everything from the square footage to the property taxes to, perhaps the most important, the neighborhood. But when you're in such strange times as these where you might be sheltering in place, it's key to note you don't actually have to visit the area to do your due diligence.
There are several ways to research a neighborhood in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole right from your own home!
Browse local social media
Use the power of social media to research a potential neighborhood when shopping for homes in Alaska. You can use apps like NextDoor, Facebook, or even dig into geo-specific hashtags or locations on Instagram, for instance, to look for activity and posts in a certain area.
Use Google Maps...
Alaksa home buyers have the wind at their back when it comes to mortgage interest rates. According to industry surveys by Freddie Mac, interest rates for a 30-year, fixed-rate mortgage are hovering below 3.5%.
The catch: mortgage lenders are feeling stingy these days. The bar for mortgage approvals has been set higher. Major lenders have announced credit score minimums of 680 to 700. Depending on the type of mortgage you're seeking, and the lender you're working with, the down payment requirements can be as high as 20%. Debt-to-income ratios also need to be lean and mean.
Before applying for a mortgage, Alaska home buyers can do a lot to shore up their credit standing. This takes some time, but it's a worthwhile investment! The better your credit profile, the better your mortgage offers. ...
If you plan to buy a home in Alaska this year, good credit will be important. Fortunately, the 3 major credit bureaus - Experian, Equifax and TransUnion - have made it easy to obtain your credit report. From now through April 2021, the bureaus are offering a free credit report, every week, for every American.
Please note, not every lender reports to every bureau. This leads to confusion, because your car loan may show up on one report, and your credit card, another. Lenders are aware of this, so they consider your credit behavior across the board. (Your overall credit score, or FICO score, is typically an average from all 3 bureaus.)
Your credit report is a history of your credit accounts, balances and payment habits. It includes a record of the addresses you've held and other personal info. The report isn't always error-free, which is why you should check it! Checking your...
While Alaskans "hunker down" and observe social distancing, the real estate market is going to slow. With business disruptions having a domino effect on incomes and the economy, a number of buyers and sellers will likely wait things out.
For Alaskan home buyers moving forward with their plans, there are 3 emerging trends to be aware of:
1. Mortgage lenders are beefing up credit quality. Higher credit scores, larger down payments and low debt-to-income ratios are being sought. Jumbo mortgages are seeing higher cash reserve requirements.
2. If sellers postpone their sales plans, home inventory could become very limited. As of early March 2020, the Anchorage area had just under 2 months of supply in price ranges under $350,000.
3. On the upside, mortgage interest rates should remain very low for a while.
For Alaskan home sellers, market...