In the last few weeks I have been involved in several real estate purchase and sale negotiations.  A significant issue that arose in two of these negotiations was financing.

Financing has always been important in real estate purchase and sale negotiations; however, it has taken on new importance given the current concerns in the mortgage lending industry.  Sellers, rightfully so, want to make sure that if they accept an offer and take their home off the market that the purchase and sale will actually close.  This is particularly so in a balanced market such as ours where Sellers don't have nearly as strong of an advantage as they did just a couple of years ago.

Believe it or not, the Girdwood market is still seeing brisk activity in certain segments.  The condominium market has been tight all year due to a lack of inventory; I've seen several instances of short marketing times and multiple offers.  Properly priced homes under $350,000 are still selling very quickly; again, I've seen several instances of short marketing times and multiple offers.

If you truly want to buy, be prepared and be prepared to move quickly.

So, as a Buyer how do you get prepared in terms of financing?

Get pre-approved with a reputable in state mortgage lender.  Our preferred lender is Alice Roe of U. S. Bank Home Mortgage.  Alice is a Regional Manager with U. S. Bank Home Mortgage and a Certified Mortgage Planning Specialist.  Feel free to visit Alice's website at www.aliceroe.com .  Although Alice lives in Scottsdale, Arizona, she maintains an office in Alaska, travels here several times a year, and does 98% of her business in Alaska (including several loans a year in Girdwood).

I am happy to supply references for several other high quality mortgage lenders with whom we frequently conduct business.

There is another great local article coming up in Powder Magazine.  Look for an article in the October issue about Chugach Powder Guides' new Tordrilllo Lodge.  Although I have never been to this particular lodge, I can vouch for the terrain.  Incredible!  The snow is getting lower and we're just a few short weeks away.....

Have a great weekend.

I think the public has just about reached sensory overload on reports detailing real estate market conditions.  If I could emphasize one point though, it would be that real estate is market specific and it is different from region to region, state to state, city to city, and price point to price point.  If you haven't read it already, dig up a copy of yesterday's Anchorage Daily News.  This is the best article I have read this year describing the Anchorage real estate market.  Keep in mind however that, although there are many similarities, the real estate market in Girdwood is somewhat different than the real estate market in Anchorage.  We've witnessed this year a very tight condominium market, which has resulted in healthy appreciation and short marketing times, and numerous sales and continued interest in higher end homes.  It is neither a Buyer's market or a Seller's market today in Girdwood; it is a stable market.

I came across some interesting quotes last week that I thought were worth sharing:

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." - Time Magazine, 1947

"The goal of owning a home seems to be getting beyond the reach of more and more Americans.  The typical new house today costs about $28,000." - Business Week, 1969

"The median price of a home today is approaching $50,000...  Housing experts predict prices in the future won't be that great." - Nations Business, 1977

"Financial planners agree that houses will continue to be a poor investment." - Kiplinger's Personal Financial Magazine, 1993

National real estate values have appreciated:

• 88% since 1996
• 340% since 1977
• 685% since 1969
• 2,650% since 1948

Have a great week!

Do the terms Agent, Licensee, and REALTOR all refer to the same real estate professional?

Although real estate is similar from state to state because it is predicated upon many of the same principles derived from hundreds of years of real estate transactions, it is regulated from state to state with state specific statutes.  In Alaska, a real estate professional is no longer called an Agent because agency law was dropped on December 31, 2004.  A real estate professional in Alaska is referred to as a Licensee.

A Licensee can be either a Broker, an Associate Broker, or a Salesperson.  Brokers and Associate Brokers have additional education and experience than Salespersons.  Brokers are responsible for Brokerages and all the Associate Brokers and Licensees working in the Brokerage.

A REALTOR is a member of the National Association of REALTORS through their local Board of REALTORS.  A Licensee does not have to be a REALTOR, but a REALTOR must be a Licensee.  In addition to the statutes to which a Licensee must adhere, a REALTOR must adhere to a Code of Ethics to which they take an oath when they become a REALTOR.

For more information about the National Association of REALTORS and their Code of Ethics, see their website at www.REALTOR.org.

In my next entry I plan to answer the question, "So how's the market?".

I was able to get a preview of the Resort's PROPOSED Master Plan that is to go to the Municipality by October 15th.  The Plan includes more detail than that which is required for the process, but the Resort wants to give the Municipality and the public as much information as possible.  Look for the Plan to likely go through the local public review process through the Girdwood Board of Supervisors and the Land Use Committee in November.

A handful of things really jumped out at me when I looked at the Plan.  First, it is consistent with what we've been hearing for months in terms of redeveloping the base area into a family friendly area that makes more sense in it's layout.  Second, it appears to be far less dense than the concepts that Seibu had developed.  Third, the Plan is more balanced from a seasonal point of view in terms of having the promised concert venue, plaza, and summer activities.  It's certainly refreshing to see something planned as a whole and something planned that is on a realistic scale.

The Resort is much more focused on the chair lifts and the base area buildings with their Plan than developing and selling real estate.  These subsequent phases of development are to be market driven and the Resort plans to partner with others that can contribute in a manner that is consistent with their moderate scale.

Exciting times indeed for those of us who frequent the Resort!

By the way, there is a Land Use Committee meeting scheduled for this evening at 7:00 PM at the Glacier City Hall.  The most prominent agenda item revolves around a presentation of an Area Master Plan project affecting the 220 acres of land between Glacier Creek and California Creek south of the Alyeska Highway.

With retirement most likely in the near future, my mother is contemplating a move to Alaska.  Although she has lived in Utah for about 40 years, she is not native to Utah and we have no family in Utah since my only sibling, a sister, lives in Switzerland with her family.  My mother has purchased two homes and sold one home in her life.  During a recent visit to Girdwood I promised to give my mother a hand in selecting the right Agent.

So how would I go about selecting a real estate Agent?  Given that the objective is finding an Agent who could sell my mother's home and not just list my mother's home, I wanted to find the top producing Agent in the area.  I approached this from two angles. 

First, I called the Agent who sold my mother's last home.  She happens to be a long time and well known woman in the community.  This particular Agent also assisted Sharnee and me in the purchase of our first home and the subsequent sale before the adventure that finally brought us to Girdwood.  I learned that this Agent didn't necessarily specialize in the particular area where my mother's home is located, but she was certainly willing to meet with my mother. 

Second, I put myself in the position of a Buyer.  Like 80% of Buyers I started on the Internet, but I wasn't shopping for a home, nor was I shopping for the name of the Agent who popped up most frequently.  Remember, I don't want my mother's home listed, I want it sold.  I shopped for the Agent with the strongest presence and most complete marketing package, meaning a solid website with resources, links, community information, listings with plenty of great photos, visual tours, maps, and associated documents.  Then I sent the Agent an e-mail and asked the tough questions.  The e-mail in itself was the first test.  Would he even reply?  He did.  Within 24 hours.  Today's Buyers shop on the Internet and they expect almost instant gratification.

In my e-mail I asked the tough questions.  What is his sold market share and how does it compare to other Agents?  What is his average marketing time compared to other Agents?  What is his average sales price to list price percentage compared to other Agents?  Does he moonlight in real estate, or is this his career?  Does he have any other business ventures?  Is his market so big that he spends a considerable amount of time traveling?  What is going to be the biggest challenge in getting my mother's home sold in that market?  What are you going to do to sell my mother's home?  Why should I choose you instead of someone else?  Over the course of a few e-mails and a phone conversation I got all of my questions answered completely and to my satisfaction.

Did you notice I didn't initially ask him about price?  The price will be what the price needs to be in order to sell.  Buyers set the price by determining what they are willing to pay.  That's why I asked the Agent next, and after I was sure that I found the right Agent, for an Opinion of Value. 

In a nutshell, I selected an Agent based on his ability to help my mother reach her objective - to sell her home.

That's it for now.  Here's the rain that has been in the forecast for days.  Stay dry.

By the way, the September issue of Powder Magazine has a two page article about John Byrne and Alyeska Resort beginning on page 44.  Check it out!