Southeast Alaska Home and Real Estate Guide - December 2017

A PUBLICATION OF THE CAPITAL CITY WEEKLY

SOUTHEAST ALASKA

DECEMBER 2017

TABLE OF CONTENTS On The Cover: Photo by Michael Penn | Juneau Empire 2 AlaskaUSA Mortgage 3 Coldwell Banker: Gwen Place 4 Ricker Real Estate Consulting AlaskaUSA Mortgage: Minerva Carandang Platinum Real Estate 5 Ask a Broker 7 Southeast Alaska Real Estate: Jocelyn Miles

By The Numbers 9 Exit Realty of Juneau 11 First Bank Mortgage 12 Try this on the Grill 14 Cornerstone Homelending 16 Southeast Alaska Real Estate: Karen Wright

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ASK A BROKER

By Peter G. Miller QUESTION:

Is it true that mortgages are now available that do not require an appraisal? If that’s the case, what’s the benefit to borrowers?

ANSWER:

Since September 1, 2017, both Fannie Mae and Freddie Mac have offered to buy selected mortgages from local lenders that do not require appraisals. The new option does not apply to all mortgages but if the initial program is successful the idea of appraisal-free mortgages is likely to expand.

For a number of years, automated valuation models (AVMs) have been used in the mortgage process to check the accuracy of traditional appraisals. The volume of data in such systems is now enormous, increased with each new property appraisal. More data and more experience has allowed companies to refine such systems to the point where they can value many properties – but not all – with a high degree of accuracy.

For both borrower and lenders, the use of automated systems reduces costs because there’s no appraiser to hire and pay. While it speeds up the process, such “benefits” totally miss the point. If you’re a homebuyer, you want an appraisal by an actual human appraiser. Here’s why: First, yes — it will cost money.

An appraisal is an important protection for borrowers because it can prevent over-paying for a property. If a lender has 15,000 mortgages and a few are wrong here and there, it’s not a big deal. If you’re a buyer and the appraisal is wrong, you can’t spread the risk of paying too much over thousands of loans.

Second, I recently looked at a home that showed really well from the outside.

From public information I knew the square footage and the number of bathrooms and baths. There were great photos of the kitchen, bathrooms, and interior of the property. However, go inside and the place was musty, there was water damage in some closets, the washer and dryer were removed, an exterior building is rotted, etc. Now the picture is very different.

Third, as a buyer you have a psycho-

logical investment in the property. It might represent your hopes and dreams.

To the appraiser it’s another job. The appraiser can be detached and objective, plus the appraiser gets paid regardless of the valuation.

Fourth, an appraiser is a professional.

Buyers are not. It makes a difference.

Also, why do you need a faster appraisal? Isn’t it going to take time to pack and plan a move? Doesn’t the seller need time to find a replacement property?

Pack? Move?

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

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%

Percentage of total buyers that were first-time buyers over the past year.

Source: AreaVibes.com

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3 EFFORTS TO HELP STUDENT-LOAN-HOLDING HOMEBUYERS Student loans are a financial weight on millions.

But it’s not just those with the bills who are impacted. The housing market, which in turn fuels the overall economy, is weakened. Indeed, several surveys show that many are delaying home purchases because of student debt.

Now, creative efforts are underway to help borrowers with student debt get a mortgage: 1. Mortgage lenders are recognizing contributions from an employer or parent toward student loan repayment.

Currently, about 4 percent of employers offer their workers a “student loan assistance” benefit. Under this benefit, which is growing more popular, firms regularly contribute directly to the education debt of the worker.

Moreover, some have a parent or other relative that provides regular help paying student loans, or other debt, like a car loan.

Fannie Mae, which makes lending rules, now allows lenders to consider these contributions in calculating how much mortgage for which a borrower qualifies.

2. One builder is now helping purchasers pay off debt, and more builders may follow.

Research on student debt holders showed that although “many might be able to qualify for a mortgage, they didn’t want to add to their debt load with a mortgage,” says Jon Lawless of Fannie Mae. Working with builder Lennar, and its subsidiary

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Eagle Home Mortgage, Fannie Mae is monitoring a program whereby Lennar provides homebuyers up to 3 percent of their purchase price to pay down their student loan balance.

If this pilot is successful, 18 other building companies are hoping to roll out a similar offer, Lawless says.

3. Education debt holders that are homeowners

may be able to pay down student loans with a cashout refinance.

Any homeowner who refinances his mortgage for a bigger one pays a slightly higher interest rate and fees than borrowers who refinance without a “cashout”. Now, those higher charges are eliminated for those using cash to pay student debt, Lawless says.

By the Numbers

6%

The average down payment on a new home — a number that has held firm for three straight years.

Source: National Association of Realtors

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Percentage of all home sales in September 2017 that were by first-time homebuyers – the lowest percentage in two years.

Source: National Association of Realtors

79

Percentage of home improvement companies that expect to see an increase in business over the next 12 months.

Source: HomeAdvisor

P leas e

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RETIREMENT

By Jim Parker

Vanessa Grout, author of “Rules To Live By When Buying Into A Retirement Community.” has these tips:

G

et to know the characters. Seniors house hunters should learn about their neighbors and grasp the community’s personality.

Check out the medical care. Not all communities have on-site health centers, and hospitals could be a good distance away. “Remote upscale communities should be equipped with a helipad for airlift,” she says.

Factor in local tax rates. Income, property and estate taxes are all important to consider. Florida, Wyoming and Texas offer “great income-tax advantages,” but property taxes can be high she says.

Time your buy to get the best price.

Typically, purchase a home after the region’s peak visitor season. If that’s too early, “consider buying the home and renting to another retiree,” Grout says.

They’re dubbed active adult, retirement and 55-plus communities – attracting millions of homeowners and tenants who left the working world behind and jumped in their golf carts to revel in resort-style activities.

Many of the residential sites are gated, showcase swimming pools and tennis courts and include homes in the mid-six figures to more than $1 million. Some of the nation’s largest builders are involved in the business, constructing ranch homes, colonials and manufactured dwellings. The Villages, in central Florida, boasts more than 70,000 homes.

They’re most common in warm weather climates but also grace major metro areas. “If a retirement community in a place like Naples or Scottsdale just isn’t for you, maybe the big city would work,” contributing writer Vanessa Grout says in a Forbes Magazine article three years ago.

The seniors-friendly villages – geared to healthy singles and couples that typically like to socialize and take part in all sorts of amenities, are racking up business by attracting the baby boomer generation now aged 53 to 71, “who account for about a quarter of the U.S. population,” Grout says. “In the next decade, (baby boomers) will drive up the number of retiree households by about 10 million,” she 8

says.

Industry veterans peg the launch of large scale retirement communities aimed at the more active customers with Sun City near Phoenix, which opened in 1960. Del Webb, at the time an owner of the New York Yankees, would head a company under his name that would go on to open a host of active adult areas nationwide.

Today they include Sun City in Bluffton near Hilton Head Island completed less than 20 years ago, the exclusive Del Webb neighborhood in Cane Bay in Summerville, which opened in the past decade and another Del Webb community planned at Nexton, off Interstate 26 in eastern Summerville. Pulte Group, the nation’s second larger builder bought Del Webb in the 2000s.

Jensen Communities, founded in Connecticut before World War II, develops appealing prefab housing communities nationwide including Southern Palms fashioned around a lake in Ladson.

Other big players are K. Hovnanian Homes, which opened an active adult community in the Lakes at Cane Bay; Florida based Kolter Homes, which opened the 55-plus village Cresswind Charleston; Robson Communities; Shea Homes; Toll Brothers; and Lennar, according to Investopedia.

Study the community financials. Some retirement communities were hard hit in the late 2000s recession, so be ready to review the homeowners’ association financial records or check for liens and foreclosures.

Explore “membership.” There may be club memberships, annual dues or a mandatory equity ownership. “This investment may run into the hundreds of thousands of dollars, yet its appreciation and resale value can be uncertain,” she says.

Scrutinize the activity calendar. “In most cases, there are the country club staples – golf, tennis, swimming. But some of the most popular activities for retirees these days may sound foreign to you. Pickleball, for example, is played with paddles on what looks like a badminton court. Bocce, the Italian lawn-bowling game, is also hot, primarily because it can be played with a drink in one hand,” the contributor says.

Research the restrictions. Pets may be one ban, another outdoor grilling. According to Grout, “You may not even be allowed to talk on your balcony after dark.”

Consider the caretakers. “Home-watch services are common offerings in high-end communities. Some visit 200 to 300 homes per month and charge $50-$100 to open and close the house and make sure your lights, air conditioning and pool pump are working,” she says.

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A NICE AND EASY GUIDE TO HOME SELLING AND BUYING Linda Levin has unusual advice on selecting a real estate agent: “Arrive late for your first meeting, or call to change the time.”

Then, suggests Levin, an agent with Jameson Sotheby International Realty in Chicago, observe how the agent reacts.

Is he or she obviously miffed?

If so, then you might want to keep searching for an agent who can react more politely. Many people, Levin says, mistakenly think that an agent who is aggressive, or even rude, is a good negotiator. But what’s really needed is an agent with high emotional IQ, who can smooth over the often-rankled emotions of buyers and seller.

“A seller might be insulted by an initial offer,” she illustrates, “or a buyer gets angry if he can’t get a showing at a convenient time.” Then, a transaction that could benefit both is sabotaged by unbending anger.

Today’s “limited supply of homes in many markets is sparking more antagonism, leading to the high rate of purchase contracts that don’t go through to closing,” observes Brian Etheridge,

broker at Wilkinson ERA, Asheville, N.C. “Sellers feel that they can get top dollar, while a buyer may feel think they’re overpaying,” he says.

Yes, agents do need the ability to mediate anger, agrees Bennie Waller, Longwood University real estate professor. But other key skills are a good understanding of what is reasonable for the market and the ability to honestly communicate to a client.

“Sellers have to hear from their agent that what they want to list their home at is too high,” Waller say.

Once they select an agent they believe knowledgeable, sellers and buyers should tamp down their emotions and listen to his or her advice, he adds.

Another way both buyers and sellers reduce the chance of alienating the other side to respond to emails and other communications within a reasonable time, Levin says. “Otherwise the other side thinks they’re playing games.” © CTW FEATURES

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TRY THIS ON THE GRILL

COOKING FOR A CROWD

Cooking over an open fire is a staple of cold-weather activities. Tossing some steaks or vegetables on the grill for a family dinner is usually an easy undertaking. But even the craftiest grill cooks may need to apply some tricks of the trade when grilling food for the masses.

• Cook a large piece of meat. Rather than individual burgers

or chicken wings, think about barbecuing an entire pig or a roast. In many cases, the meat can be set up on the barbecue early in the morning. By the time the evening arrives, the meat should be tender and cooked through. With just occasional checking, turning and basting, this may be the most low-maintenance option when feeding a crowd.

•

Rent or borrow a second grill. Unless you are working with industrial-sized or commercial equipment, a standard grill may not have enough surface area to cook a lot of food at once. Find a friend or family member who is willing to lend you his or her grill. Having twice the room means you can cook twice the amount of food. You also may be able to rent a larger grill for an event.

•

Precook the food. You can put bratwurst, hot dogs or burgers on the grill to partially cook them before the party, then store them in aluminum pans. When guests arrive, simply reheat the food to the right temperature and they'll be hot and ready in no time.

•

Make steak sandwiches. Make the food go further with less work by cooking ribeye steaks or flank steaks on the grill.

Slice up the meat and serve it over garlic bread with melted jack or mozzarella cheese. The result will be savory, and such sandwiches don't take much time to create.

•

Opt for pulled pork. Start the basics of pulled pork in a slow cooker so that the meat cooks for several hours under low heat. If you have a smoker, you can opt to use that, but smokers may take longer to cook the meat and require more maintenance. If you opt for the slow cooker, transfer the meat to an aluminum pan when it is nearly done and put it on the grill to impart that smoky flavor. Add more seasonings to the meat and keep it warm until guests are ready to dine.

•

Go with hot dogs. Hot dogs are usually precooked and will heat up quickly on the grill. Their small size means they don't take up much space, and several can fit on the grill at one time.

Grilling for a crowd is easier when you plan with foods that are precooked or heat up quickly. This way you can enjoy more time with your guests.

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An Upward Trend According to the Pew Research Center, 2016 continued a recordsetting trend with 60.6 million Americans living in multi-generational households— and home designs are quickly evolving to meet the demand.

An In-Demand Floor Plan for Multi-Generational Households American families have changed a lot in the past few decades. But most homes were built for the stereotypical two parents, 2.5 children household.

“Today’s consumers are thinking about accommodations for both their aging parents and young adult children who have not moved out,” says Chris Porter, chief demographer at John Burns Real Estate Consulting.

That conclusion was reached after a survey of 21,000 prospective home shoppers, with 45 percent indicating they would like a floor plan to accommodate a multi-

generational family.

A separate master suite with its own entrance, and perhaps equipped with a mini-kitchen and small living area, is what multigenerational families living together would desire most, Porter says.

But they could house hunt a long time before finding these features.

“Existing homes are typically not oriented to a convenient private access unless it’s on a second floor or to an apartment above the garage – especially if the garage is separate from the home,” Porter says.

Renovating an existing home is

Multi-generational family homes have continued to rise, even though the Great Recession is now in the rear-view mirror. Growing racial and ethnic diversity in the U.S. population helps explain some of the rise.

As a result, home designs are including efficiency apartments, suitable for independent living or a rental income.

an option. However, “adding a second entrance could be expensive. It may be cheaper to buy a [newly built] home, unless the neighborhood is very strong,” Porter observes. In areas where home prices appreciate at a strong rate, the cost of renovation is more likely to be recouped.

Dina Petrakis of Littlerock Renovation Coaching says buyers of an existing home would have to first make sure it could be remodeled to suit their needs.

In the Chicago neighborhoods where she works, it’s popular to remodel a “two-flat,” originally built

to house two families on two different floors, into one larger home, and renovating the basement as a suite with its own entrance.

Recognizing the demand, builders are increasingly constructing multigenerational homes, Porter says.

But could such homes become obsolete, should families revert back to the 1950’s Ozzie and Harriet model?

“The great thing about the separate lock-off space is it could be used for other purposes,” Porter says. Those include a home office, or a space to rent, Airbnb style.

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EDO-FRIENDLY HOMES

By Marilyn Kennedy Melia

Buyers Energized

by Utility Costs Money matters, which is why more buyers are concerned with efficiency

“We’ve found the perfect home! It has abovecode attic insulation!”

You don’t hear that phrase, or anything like it, because we focus on more eye-catching features, like new kitchen cabinets.

But research shows that buyers pay more for energy efficient homes.

One study this year by the University of Texas (UT), for instance, found that homes sold between 2008 and 2016 in Houston with an energy-efficient certification sold for six percent to eight percent more that a comparable home without the certification.

Many newer homes built after 2007 have a “LEED” certification, and some existing homes have been upgraded to achieve and “Energy Star”

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designation, and there are local energy efficiency certifications.

Today, “Buyers of all ages” are interested in energy efficiency, if not for environmental reasons, for energy cost savings, says Laura Stukel, of L.W.Reedy Real Estate, Elmhurst, Ill. If a home has low utility bills, that increases affordability, making it “important information for a buyer,” says Pamela Brookstein, of non-profit Elevate Energy.

A couple of years ago, the Chicago multiple listing service (MLS), was upgraded to allow real estate agents to easily import costs directly from utility companies.

Since the 1980’s, a Chicago ordinance required buyers receive annual utility costs at closing.

“Now many agents put the costs right into the MLS,” Stukel says. Ironically, “Even if costs are high, I’ve seen it be a positive to buyers,” she adds. “That’s because they feel more confident about affordability.”

Even when the MLS doesn’t allow for agents to import costs from utility companies, agents say it’s advantageous to mention energy-efficiency, whether it’s a certain feature, like new windows, or if a home has earned a energy certification.

“It’s usually placed in the ‘public remarks’ because this is a section [of the MLS] that is generally uploaded” to other real estate website, says Raylene Lewis, agent with Century 21, College Station, Texas. © CTW FEATURES

Join a club. Your lifetime love of bingo,

quilting, or counting birds might finally serve you well as you seek like-minded souls. Finding the master gardeners group, church choir, or fitness center will win you friends . . . by proximity at first and then by open conversation and activities together. Your real estate agent may make suggestions—and always read the newspaper for upcoming events.

Get a dog. Dogs make great companions

inside of the house and also serve as an ice breaker when you are outdoors.

Take plenty of walks and take advantage of opportunities for conversation when people come up to you to inquire about your dog. Explain your situation and you may make some new friends along the way.

Volunteer your time. Many people make

new friends through volunteering.

Volunteer and you’re likely to meet people who share the same interests as you. Sign up with a favorite charity or volunteer at nonprofit events and look for familiar faces. Start talking to those people you meet again and again.

Participate in church events. Places of

religious worship are often cornerstones of a community, and they frequently host different events to get members or members together. Read the bulletin and get involved in pot lucks, retreats, movie nights, and other church-sponsored events.

Making the Move _

By Matthew Allen

Meeting and greeting after a big life change Making friends can be particularly daunting for older adults. Downsizing and moving to a new neighborhood, into a new community, or an assisted living facility are few of many instances that may require a positive attitude and venturing outside one's comfort zone. Drawing on the strategy of being where people are, and the confidence that comes from a lifetime of experience, anyone can make new and meaningful friends.

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Work at a school. Schools also serve as

hubs of community activity. Volunteer or work for a local school and you will soon find yourself immersed in your community’s weekday hustle and bustle.

This is a great way to meet new neighbors and discover what opportunities your new environment has to offer.

Host your own party. Go out on a limb

and plan a “new to the neighborhood” party. Put invitations in neighbors’ doors and invite everyone over for snacks and games. Remember, neighbors may be just as nervous about new faces as you are, and a party is a great way to break the ice.

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