Southeast Alaska Home & Real Estate - August 2017 by Juneau Empire

A PUBLICATION OF THE CAPITAL CITY WEEKLY

SOUTHEAST ALASKA

AUGUST 2017

ON THE COVER

2909 Jackson Road, offered by Karen Wright with Southeast Alaska Real Estate

A view of downtown Ketchikan prior to rennovations. Photo By Michael P. Turner

The Southeast Alaska Home & Real Estate Guide is a publication of the Capital City Weekly, a division of Morris Communications www.capitalcityweekly.com 3100 Channel Drive Juneau, AK 99801 907-523-2250 Fax 907-789-9097

General Manager Brian Naplachowski, brian.naplachowski@juneauempire.com Designer Matthew Wilkinson, matthew.wilkinson@juneauempire.com Advertising Director Kathryn Fritz, kathryn.fritz@juneauempire.com Distribution Manager Jack Marshall, jack.marshall@capweek.com

TABLE OF CONTENTS On The Cover: Photo by Hadassah Nelson 3 Coldwell Banker: Gwen Place 4 Ricker Real Estate Consulting AlaskaUSA Mortgage: Minerva Carandang Platinum Real Estate Valley Auto Parts 5 Ask a Broker 6 Selling your Home: 4 Modern Strategies Quick-Sell Strategies. 7 Southeast Alaska Real Estate: Jocelyn Miles By The Numbers 8 Sustainable Selling Points 9 6 Tips for a Quick Sell Exit Realty 10 A Sort-of Secret Home for Sale 11 First Bank Mortgage 12 Try this on the Grill 13 Overcoming Stressed-Out Shopper Syndrome 14 Cornerstone Homelending Changing the Idea of "Home" 15 Residential Mortgage State Farm: Malia Hayward 16 Southeast Alaska Real Estate: Karen Wright

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August 2017

ASK A BROKER By Peter G. Miller QUESTION:

As a mortgage lender, I compete for business every day. So why is it fair that non-banks face less regulation and therefore fewer costs than traditional banks?

ANSWER:

We generally see “traditional” banks as established financial service providers that collect deposits, offer checking and have a number of tellers, branches and ATMs. In contrast, a non-bank is simply a lender that finances mortgages with investor capital or loans from established banks and investors worldwide. In the typical case, a non-bank has no deposits, no tellers, no branches, no ATMs and no checks. Within the world of traditional banks there’s a huge gap between small community banks and the nation’s largest financial institutions. Community banks are a disappearing species. According to the FDIC Community banking study, between 1984 and 2011, the share of U.S. banking assets held by community banks declined by more than half, from 38 percent to 14 percent. Meanwhile, the big banks are gaining market share. Giant banks had a 17 percent market share in 1995, a figure that rose to 59 percent by 2014 according to the Institute for Local Self-Reliance. If a community bank with $10 million in assets fails, it’s not good news but it’s also is not a threat to the financing system. If a major financial services company goes under the entire economy can be impacted – and not in a good way. Banks of all sizes are not regulated the same, a bow to the reality that small banks don’t require as much oversight while big banks do. The bulk of all financial regulation applies to banks with at

least $10 billion in assets. When a bank or insurance company has at least $50 billion in assets, it can be defined as a systemically important financial institution (SIFI) and faces stricter requirements. As an example of differing risk, big financial institutions do virtually all bank derivatives trading. The Office of the Comptroller of the Currency (OCC) reported that for the third quarter of 2016 the nation’s banks held derivatives with a notational value of $177.5 trillion.

The threat of financial institutions that are “too big to fail” was seen in wake of the 2008 financial meltdown when the government constructed a $700 billion bailout effort. Until that threat goes away, it’s likely enhanced regulation will continue for big banks while the requirements for small banks and non-banks will be less burdensome and more flexible.

peter@ctwfeatures.com Peter G. Miller is author of “The Common-Sense Mortgage.'

Percent above the national average a home in Juneau can expect to sell for. Source: AreaVibes.com

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SELLING YOUR HOME By Madhusmita Bora

Smartphone photos no longer make the cut: 4

M o d e r n

Q u i c k - S e l l

S t r a t e g i e s

➤ Online Presence

➤ Quality Photos

➤ Virtual Tours

➤ Take it to YouTube

“The No. 1 strategy (for selling fast) is good Internet exposure,” says Elizabeth Weintraub, a Sacramento-area broker who writes on real estate expert for about.com. “People who keep their homes a secret hurt their chances of getting the highest price. You want to be everywhere online.” Agents need to focus on their online debut, says Martha Webb, an author and producer of the “Certified Home Marketing Specialist” course. “You get about 9 seconds to get people’s attention.”

Smartphone photos no longer make the cut. Agents are increasingly relying on professional photographers and high-tech equipment to shoot pictures of homes on sale. “You need to take lots of photos and choose a few that are emotionally appealing,” Weintraub says. Webb recommends developing a story through the photos. “That’s your first showing,” she says. “The biggest task is to prepare the home for compelling photography.”

Many agents and brokerage firms are offering virtual tours to nab buyers. At Redfin, a national real-estate brokerage firm, agents use software that gives buyers a high resolution, interactive tour inside a home. It helps people who are looking for a specific layout. If they don’t like what they see virtually, it saves them a trip to the property while also saving the sellers time.

Many agents are relying on videos for storytelling. “The key is to have a well-produced video with good sound and crisp clear visuals,” Webb says. “Think how you can bring emotion to it.” Her advice is to hire a professional and to keep the videos short. Sometimes the owner could get in front of the camera and talk about the home. “Tell a story,” she says. “Don’t just stand there and say the home has two bedrooms, fabulous dining room – they already know that.”

August 2017

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By the Numbers

of Americans who say it is a good time to buy a home fell — a new survey low.

of rent rate growth over the last 12 months – the lowest rate since 2012.

Source: National Association of Realtors

Source: Fannie Mae’s National Housing Survey

Source: Zillow

of all home sale contracts that were closed on time. Five percent did not close at all.

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0.7

CURB APPEAL By Erik J. Martin

ustainabl� S e l l i n g

Want to make your neighbors and friends green with envy? Choose a home or upgrade your current one with energy efficient and earth-friendly features that can improve indoor comfort, lower your utility bills and increase your resale value, too. By doing so, you certainly wouldn’t be alone. In fact, according to a recently published National Association of Realtors survey: 53 percent of Realtor respondents said their buyer/seller clients are at least somewhat interested in sustainability issues; 43 percent indicate their Multiple Listing Service has data fields that list a home’s green features; 71 percent revealed that promoting energy efficiency in for-sale listings was somewhat or very valuable; 42 percent said solar panels upped the perceived market value of a listed home. Green and sustainable amenities that respondents regarded as very or somewhat important include efficient use of lighting (50 percent); a smart/connected home (40 percent); community attributes like green spaces and bike lanes (37 percent); landscaping designed to conserve water (32 percent); solar, geothermal and other renewable energy systems (23 percent); and neighborhood recycling (9 percent). Melisa Camp, a Realtor and green home instructor in Phoenix, says more buyers, sellers and homeowners are valuing sustainability characteristics nowadays. “Energy efficiency is a universal sales driver today, regardless of demographic. After all, who doesn’t like saving money and being comfortable at home?” says Camp, who notes that adding extra insulation and sealing the home envelope are worthy investments higher in demand today. “High-performance LED lighting is an easily accessible sustainable amenity often asked for by today’s homebuyers,” says David Bailey, who helps manage marketing for Atlanta-based Southface, a non-profit that promotes sustainable homes, offices and communities. “Smart home technology products are also hot ticket items, such as the Nest Learning Thermostat. And access to green or community spaces, local farmers markets, and designated bike paths are other key features sought after by homeowners today.” 8

P o i n t s

Real estate agent Victoria Massengale, Beverly Hills, Calif., says solar panels, grey water systems and water collection barrels are currently popular in a high-end market like hers. However, it’s the more widely adopted energy efficient amenities, such as Energy Star-rated windows and high-efficiency furnaces and air conditioning systems – that are most coveted today because people perceive them as money savers, notes John Oppermann, a New York City-based real estate broker who specializes in marketing green properties. “But I think the next wave of interest coming in green real estate can tap into the potential for getting people to pay attention to how their living spaces affect them and how a green building has health benefits way beyond the impact on the planet,” Oppermann says. “For example, green buildings often provide better air and light quality and healthier building materials that don’t contain toxic substances.” These attributes can be expensive, so it’s important to determine return on investment before committing to a home or remodel that includes green features. “I suggest speaking with a Realtor, who can offer ideas that will be best for your particular home and market,” Massengale says. Camp agrees. “Homeowners staying put need to consider how long you’ll be in the home to determine whether or not the expense and disruption will be worthwhile,” Camp says. “When my seller clients are looking to make green improvements, we work backwards to figure out a target exit sales price based on recently sold comparable properties before we determine the project budget so they don’t outspend what the neighborhood can withstand.” Make t good choice by having a home energy performance audit done, a service that may be offered by your electric or gas company or private energy raters/ audit experts for a fee. “An energy rater can use software to create an energy performance report specific to your home and provide suggestions for reducing your energy costs,” Bailey says. August 2017

ADVICE By Peter G. Miller

6 Tips to a Fast Sell We want to sell our home this summer and are looking for a speedy sale. What are the best steps we can take to quickly find a buyer? A good basic list looks like this: First, it’s important to recognize the vast majority of homes today are sold through the brokerage system – in fact the percent of for-sale-by-owner (FSBO) properties has declined. “In 1981,” reports a study from the National Association of Realtors (NAR), “FSBO home sales accounted for 15 percent of all sales, and agentassisted sales accounted for 85 percent. FSBO sales have declined over time and in 2016, FSBOs accounted for 8 percent of total home sales.” Given the success of the brokerage system it makes sense to line up the best broker in your community several months before you expect to market your home. As part of this process speak with several brokers and ask each one to provide a marketing plan showing how they expect to sell your property as well as a listing price based on recent and nearby home sales. Second, curb appeal counts. It will pay to invest in landscaping, painting, and repairs. All systems and appliances must be working. Third, all households have a given amount of excess stuff. The property will appear larger and more spacious if it has less content. You may be able

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to donate such items as clothing and even furniture to local charities while books can often go to nearby libraries. Such donations may be tax deductible so get needed receipts. No less important the more stuff you get rid of the less stuff you have to move. Fourth, it’s important to have a property that shows well when presented in newspapers and online. Good photographs and good staging can get more people through the front door. Fifth, open houses can be important but not for all homes. If you’re selling a multi-million dollar property where every dish and trinket is worth a lot of money, you really don’t want an open house. Instead you want to show the property by appointment only. In general, however, open houses can be important and bring additional traffic to the property, including perhaps individuals who will become real buyers. Lastly, in some markets we can see so-called pocket listings, homes where an MLS-member broker effectively looks for buyers before entering the property onto an MLS system. While pocket listings may somehow seem like an attractive way to quickly sell a home, they actually hurt sellers because with wider marketing you might find a buyer willing to pay more for the property. And that, after all, is the whole point of selling.

HOME SELLERS By Marilyn Kennedy Melia

A Sort-of Secret home FOR SALE So-called “pocket listings” are sales that occur without the property ever being listed on the multiple listing service. “We have no way of tracking pocket listings since they are not on the MLS,” says Adam DeSanctis, economic issues media manager for the National Association of Realtors, Washington, D.C. Pocket or “whisper” listings have long existed, though, because for some owners “the idea of having their home listed ‘for sale’ is distasteful,” says Rochelle LeCavalier, managing broker at Pink Palm Properties in

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Boca Raton, Florida. It also appeals to those selling due to a divorce or other misfortune. However, critics say the pocket approach limits the pool of potential buyers, and therefore may result in a less-than-optimum price. Indeed, LeCavalier believes that the strategy works best in the high end of the market, since the pool of agents representing lower priced homes is “larger, covering a wide geographical area, and is less connected/networked.” In another approach, a seller wants to place his listing with a specific agent but isn’t ready for buyers to start viewing, explains Terry Denoux, principal broker at Cascade Sothebys International Realty, Bend, Ore. “You let the public know and fellow agents know you have a coming listing,” says Denoux, adding that his local MLS doesn’t have an option to post a “coming soon” listing, which several other networks have started to incorporate. And, if sellers allow it, a “coming soon” sign on the property can also spread the word. In another pocket practice, an ad for a

property is placed on a real estate brokerage’s own website, which then may be picked up by real estate sites. That strategy though, doesn’t serve the seller well since it may be motivated by a brokerage trying to keep all sales commissions on the transaction in-house. It’s human nature that when buyers feel as if they “have an edge over what everyone else is seeing” they are motivated to bid. And, the buyers benefit because they get a discount for buying early, he adds. Likewise, calling other agents about a property that will soon be ready or by personally inviting select agents to a brokers’ open house can add some panache, Denoux says. LeCavalier says buyers often tell her they want a certain type of home, but low MLS inventory forces her to call owners of desired properties “In some cases, there is no dollar amount that would have them sell. In others, there is an opening for dialogue and potentially a sale. The idea is to create a win/win for buyer and seller,” she says.

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TRY THIS ON THE GRILL START GRILLING WITH WOOD, NOW Canadians and Americans love their gas grills, but some feel that grilling over gas loses some of the flavor associated with charcoal and smoke. Well worry no more. There are numerous grilling planks and wood chips available (GrillPro, for example, has a full line of flavors) that, when combined with the cooking power of a Broil King gas grill, allow backyard chefs to taste the smoky flavor of wood while cooking with the convenience of gas. Tender, smoky ribs, roasts and seafood can be achieved with ease.

Smoking with wood chips When you smoke a cut of meat, give it plenty of time and smoke so it can absorb the flavor. Start by soaking the wood chips in water for at least half an hour and then drain them. Use a stainless steel or cast iron smoker box placed under the cooking grids so the chips will smolder and smoke. There are several different types of GrillPro wood chips available. Hickory is used most traditionally in the southern barbecue belt, and gives a strong hearty flavor to meats. Try hickory with beef or pork. Mesquite is a great choice for beef, lamb, or even turkey. Fruit Wood, such as apple or cherry, is great for lamb, poultry and fish. Whatever type of wood chips you choose you're sure to get unparalleled taste.

Planking is a great way to impress your guests Cooking meat or seafood on a wooden plank is sure to get great results and wow your dinner guests! The process is just as simple as smoking. Just soak the plank in water, juice, or beer for an hour and pat it dry. Place the seasoned meat on the plank and then onto a mediumlow temperature grill. Cook it to its desired doneness, and serve. It's that simple. GrillPro offers cedar, maple and alder grilling planks. Cedar is ideal for salmon, but don't be afraid to try other meats on it. Pork goes great on a maple plank and lamb is ideal for alder. Experiment with these ideas and you will soon discover that smoking can be good for you ... your food that is! For more smoking recipes and tips visit www.onthegrill. ca, or www.grillpro.com or www.broilkingbbq.com.

August 2017

HOMEBUYING By Erik J. Martin

From sweating the down payment to fretting about interest rates creeping up to worrying about overpaying, homebuyers face a lot of fears today – particularly in a market where sellers seem to have all the leverage. But with the right help, an organized approach and a positive mindset, they can feel more in control and better manage the process, say the experts. Make no mistake: buyers feel pretty stressed nowadays. A new Owners.com study indicates that 72 percent of prospective buyers polled anticipate stress in the home purchasing process. Their top concerns? Worry over losing an earnest money deposit (chosen by 64 percent); becoming “house poor” (61 percent); and the price going up due to bidding wars (59 percent). “With high home prices, low inventory and increased competition in many markets, it’s not surprising that the financial aspects of buying a home are worrying for many people,” says Michael Lissack, a Greater Boston-based real estate agent and Owners. com spokesperson. Gloria K. Frazier, president/broker with ERA American Real

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Estate in Shalimar, Fla., agrees. “The main reason the process is so stressful is because buyers are having to make decisions quicker than they are comfortable with, plus most second-guess how good the idea is of bidding over asking price,” Frazier says. “Fear of loss is more powerful than opportunity for gain, so buyers become too competitive in bidding wars, make poor decisions and then regret it when they’ve won the war.” And for those buyers that find it hard to make quick decisions, “they can lose out on several homes or get totally discouraged and bow out of the market completely,” Frazier says. Other factors that can ratchet up the pressure include appraisals coming in below the sale price and sellers demanding that you commit to the purchase price even if the appraisal doesn’t support that demand, says Rich Cebulak, a Chicagobased broker with Baird & Warner. “Also, there’s social pressure – the thought that ‘my friends, neighbors or coworkers paid over asking price, so why shouldn’t I?’” Cebulak says. His remedy for these and other tensions is simple: choose experts you can trust. “Always work with experienced professionals, including a Realtor, loan officer, real estate attorney and property inspector,” Cebulak says. “Meet with your agent and determine a maximum bid before you even venture into the market, and ask for data to

support your decisions so that you don’t make them emotionally. Have a plan B whenever possible, too, so you can be ready to adjust and stay on budget.” Another important way to curb worry is to get your financials in order well in advance. That means checking your credit score, saving up for the necessary down payment, learning what you can afford and getting pre-qualified with a chosen lender. “Preparation is the key to finding your dream home,” Frazier says. “Make a list of your absolute needs and another list of your wants that you could live without. Communicate that to your agent, and ask him or her to show you homes that only fit these criteria – you’ll know soon enough if you’re being unrealistic with either your needs or wants. Remember to stick to your price range, but be flexible with your expectations.” Have a loan pre-approval letter ready when it’s time to make an offer, as well, says Marta DuPree, broker/vice president of Keyes Company Realtors in Coral Springs, Fla. “In addition, be prepared to make an offer when a good deal comes on the market, because a qualified buyer who has the down payment and a strong pre-approval letter ready will have a better chance of getting the contract,” DuPree says. Lastly, keep an open mind and avoid being pessimistic and self-critical. “Try to maintain a positive attitude, which will hopefully help you find your dream home faster,” Lissack says.

As the Millennial generation moves into the housing market, they’re jettisoning the traditional concept of a “forever home” – a home designed to last through multiple decades of life. Instead, a recent survey found that Millennials desire flexibility and choice when it comes to where they live. As a result, a significant portion stated that they plan to spend less than 10 years in a home, while the vast majority are considering purchasing new construction because of the greater flexibility in floor plans.

Prospective Millennial Homebuyers

80% equal or more interested in newly built home vs. resold home

58% think that the term “forever home” is outdated

54% will use a so-called “starter home” as a first purchase

33% plan to purchase another home within the next 10 years

August 2017

TEXTING AND DRIVING MAKES GOOD PEOPLE LOOK BAD. STOPTEXTSSTOPWRECKS.ORG

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APRIL 2015