Buying A Home In Alaska

You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around for homes in Alaska, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.

According to a recent survey from Realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process. In fact, only half obtained a pre-approval letter before beginning their home search, which means half are missing...

While you may be watching mortgage rates rise (the average 30-year fixed rate currently hovering around 7 percent) and the number of homes to choose from on the lower end, there is one important concept to consider— buying a home in Alaska is still a better investment than renting.

We know that buying a home can feel like a major obstacle for many first-timers in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and beyond, but passing on the opportunity this year could create an even bigger hurdle later as rents will only continue to rise and the days of the 3 percent mortgage rate may be long behind us.

Below are three reasons why homeownership...

As a buyer in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding areas, it is essential to consider all costs association with your new home. Everything from maintenance to renovation, repairs and closing costs should be factored in to ensure that you do not have any surprises or worries down the road. But if you’re purchasing a new construction home in Alaska, it’s also important to be aware of the costs you’ll have after the closing.

Below are four costs you will have after the purchase of your new construction home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding areas:

Utilities
Yes, all homeowners will have utilities to factor into their...

With rising mortgage rates, home prices, inflation, and the lack of homes for sale in Alaska, there are many reasons to be frustrated when looking to buy a home right now. And while it may feel challenging to both find a property and close the deal, there may be good news on the horizon.

"While the median list price for a home is still a staggering $435,000," Realtor.com reports. "Prices [recently] dropped for the first time in six years—by $15,000." 

The industry outlet goes on to state that the national inventory of active listings increased by 30.7%, a record-high growth rate. "As a result, the housing market may be headed toward a state of balance not seen since the COVID-19 pandemic led to a full-blown seller’s market," they speculated.

So what can you do this year if you're ready to buy but feeling fed up with market conditions? We're...

Fall is a great time to become a homeowner in Alaska! Not only is a new season just beginning, but you have the opportunity to secure a low interest rate and settle into a home before the cold weather arrives.

But what if you’re currently a renter in the Anchorage, Fairbanks, Eagle River, Palmer, Wasilla, or North Pole areas? Don’t worry! Madden Real Estate has provided a few ways below that you can prepare to take advantage of this exciting time in the local real estate market.

Research all of the costs
There are more costs involved with owning a home than just your monthly mortgage payment. For first time buyers, this may come as a surprise, but with the proper amount of research, you will be able to determine exactly how much you can afford in a home. Costs like property taxes,...

Did you know misconceptions and myths are what holds would-be homebuyers back most in Alaska? Buying a home is indeed one of the biggest steps you will ever take, but don’t allow what you assume is true or required to become fact without first doing the research.

As your local real estate experts in Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding areas, Madden Real Estate is happy to help you clear a few things up! Below are three myths surrounding mortgages that may be keeping you from purchasing your dream home in Alaska:

Myth: Your best credit scores will be used
When you apply jointly with another borrower for a mortgage in Alaska, your lender will take the middle...

As we’ve mentioned in past blog posts, there are many “hidden costs” of buying a home in Alaska and that goes for moving too! It is so secret that the moving process can be overwhelming. After all, you’re on your way to settle into your dream home. It’s both exciting and new and as a result, it can be easy to overlook a few key items like fees along the way.

If you’re moving to a new home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, or the surrounding areas this summer, it is important to keep an eye out for these extra fees that could pop up when changing homes. Even little things like disposing of packing materials can add up in charges.

Packing and Unpacking
If you don’t take the time to carefully package each item or piece of furniture, you could risk damaging them in your move. However, some new homeowners...

Summer is a busy time in the real estate market, with Alaskan homebuyers taking the time to tour homes for sale through open houses. However, if you're a first-time homebuyer, you may not know how to act at an open house. Don't worry! Like any aspect of Alaska real estate, there are guidelines to follow as you visit them this summer, but we're here to walk you through it!

As you head out to visit available properties in Fairbanks, Anchorage, Eagle River, Palmer, and North Pole this year, keep the following tips in mind to practice smart homebuyer etiquette and soon you'll be a pro!

Watch the other homebuyers
Take note of your surroundings as you visit open houses in Fairbanks, Eagle River, Palmer, Wasilla, and North Pole, watching the other homebuyers...

Summer is upon us and it's an exciting time in local real estate! The conditions are ideal for moving, homebuyers are feeling motivated, and Alaskan home sellers are ready for a change of scenery. However, despite the market statistics on rising mortgage rates and housing prices, there are still a few buyers on the fence.

If you find yourself wondering if now is the right time to buy in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole, consider these top five reasons to own a home:

Paying rent is not the best investment
If you're currently renting, ask yourself where your money is going every month. When you rent a home in Alaska, you are paying down your landlord's mortgage, not your own. When you own a home, you are paying down your own mortgage...

As we get closer toward spring (it does come around eventually!), dozens of Alaska residents begin to contemplate buying a new home. In fact, spring is the time of year when the real estate market starts to really heat up and buyers descend upon local homes for sale!

However, if you're a first-time buyer in Alaska this year or are feeling overwhelmed by the process, don't worry! It may be best to break it down into simple steps, so you too can take advantage of this exciting time.

You can count on Madden Real Estate to clarify any questions you have about buying a home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, North Pole, and the surrounding areas and simplify the path to homeownership.

Below are five steps to get you started as a homebuyer:...

Once you've found your dream home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole, it can be hard to erase the picture from your mind. You start to envision yourself living in the space, how your furniture will fit, and what paint colors you will choose. But in today's real estate market, you may find yourself competing with cash buyers who can snag the home quicker and easier than those with financing.

You will need an edge to land the property over those cash buyers and below are a few ways for you to do just that:

Be straightforward about your finances
Sellers often accept cash deals as every aspect of the transaction is laid out on the table for them to see. As a buyer with financing, it is essential that you do the same if you are to compete with cash buyers. Be straightforward with your finances— provide a pre-approval letter, allow your lender...

When it comes to buying a home in Alaska, you would be surprised by the number of potential buyers that sit back because they do not think they will qualify for a mortgage. However, the reality is that qualifying for a mortgage is simpler than you think and as a result, you are missing out on the many benefits of homeownership!

If you're sick of renting in Alaska, given the increasing costs each year, and are ready to settle into a place of your own, now is the time! Don't allow yourself to put off homeownership any longer, just research the facts.

Consider the following your checklist of what it takes to qualify for a mortgage in the Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole areas:

1. A Down Payment
Did you know nearly half of all Alaskan homebuyers believe...

When buying your first home in Alaska, it’s easy to get caught up in the excitement of house hunting and dreaming of what memories you’ll make there. However, as fun as it is to begin the process of buying a home in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole, it’s also important to be realistic about what it takes and what you’ll find.

Too often, homebuyers are caught off guard once they enter the local real estate market, only to find their dreams may not always be achievable. As your local real estate experts in Alaska, it is our goal to help you manage expectations and find the perfect home as we head into the new year.

Below are some of the top Alaskan homebuyer myths to debunk in 2022:

Your Dream Home Will Have Everything...

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 own a home in Alaska, you are paying your own...

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 your home search, it's important to note...

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, get your hopes up, and then quickly become disappointed when things don’t...

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.

Closing Costs
Alaskan home buyers can expect closing costs to span anywhere from 2 to 5 percent of the home's value. Your mortgage lender will go...

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.

The neighborhood at different hours
...

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 in Alaska, you'll need to avoid racking up holiday debt...