November 2017 - Southeast Alaska Home & Real Estate Guide

A PUBLICATION OF THE CAPITAL CITY WEEKLY

SOUTHEAST ALASKA

NOVEMBER 2017

ON THE COVER

Offered by Coldwell Banker Gwen Place

TABLE OF CONTENTS On The Cover: Photo courtesy of Exit Realty of Juneau 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:

We’re in the market to buy a home but feel outgunned by investors who can pay all cash.

We’re FHA borrowers who can put up 3.5 percent and no more. How can we compete?

ANSWER:

The all-cash buyer does not have to worry about qualifying for a loan. There is no need to qualify. All the buyer needs is a checkbook and a hefty bank balance.

Second, because the buyer is not going through the lending system there are no worries about lengthy settlement times.

The purchaser has the money and can close the transaction as soon as the settlement agent is ready.

Third, while an all-cash buyer is not going through the mortgage process, he or she may still insist on an appraisal, home inspection and other requirements to assure that the property has a certain value and physical condition. All cash does not mean a purchase without conditions.

Now, alternatively, we have buyers with FHA financing, VA funding or conforming loans with 5 percent down and maybe even 3 percent down. Why would a seller prefer your offer?

There’s no assurance that you will be able to offer a winning bid. That’s the case with all property sales that involve multiple offers. However, you can be competitive. Here’s why: At the end of the closing process the owner gets a check. Whether that check is the product of all-cash financing or a mortgage makes no difference. But what about being dependent on financing?

Won’t sellers see that as a negative? Some will, but you can bolster your case in several ways.

First, make sure you are pre-approved for financing. You don’t want to consider homes you can’t afford and the seller doesn’t want to bother with an offer, which may fail because of financing.

Second, as above, all cash offers routinely come with contingencies such as required appraisal values and a property inspection satisfactory to the buyer. You can require the same terms. You can also make an offer without any contingencies in an effort to beat out an all-cash offer, but this approach represents a huge

amount of risk – one not generally recommended.

Third, the seller may not be interested in a quickie sale. Instead, the owner may want settlement further down the road so there’s time to pack, move, and line up replacement housing.

Lastly, owners may not like all-cash offers if they are simply low-price bids.

The better deal for sellers is likely to be a market-based offer. If it takes a few weeks to settle, that’s fine if it means a bigger check at closing. peter@ctwfeatures.com Peter G. Miller is author of “The Common-Sense Mortgage.'

16

%

Juneau is 16% safer than other Alaskan cities and 6% safer than other American cities.

Source: AreaVibes.com

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5

ECO-FRIENDLY HOMES

By Jim Parker

Easy Being Green

Alternative energy sources from solar to windmills have been around for decades but always seemed too expensive on a large scale and a little flaky to catch on in a big way, something reserved for the granola and yoga crowd.

Yet just as granola bars now are regular fare on supermarket shelves and yoga studios dot cities and towns nationwide, once quirky power-saving innovations – geothermal heating and cooling, low E windows, insulated concrete forms – are moving naturally toward the mainstream.

Green efficiencies power, light up and insulate office buildings and warehouses worldwide. Eco-friendly designs are lowering longterm costs and improving air and water quality levels in homes, condos and apartments across the country.

Organizations such as the U.S. Green Building Council and agencies such as the Department of Energy grade buildings and residences as to their environmental sophisti-

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Today's eco-friendly housing within reach

cation. The ratings serve as incentives for developers and architects interested in green construction.

One such measurement of power saving that’s emerged in recent years is “net zero energy,” which determines if savings on insulation and natural resources counteract the expenses for power from the electrical grid or elsewhere.

Buildings.com this spring noted that “facilities are saving energy, water and money with ultra-efficient strategies.” The website cited a report by the New Buildings Institute that “332 buildings verified as or on their way to achieving net zero energy certification represent a 74 percent increase since the last count in late 2015.”

By the end of 2016, NBI had verified 53 projects achieving net zero energy consumption for at least one full year, up from 33 projects in 2014.

Buildings include the Santa Fe Springs office of the California State Lottery. The cost of the retrofit process totaled $5.7 million, or $700,000 more than it would have cost to just meet code, the institute says.

Meanwhile, more than 60 percent of the net zero energy buildings verified last year had also earned Leadership in Energy and Environmental Design certification.

A USGBC innovation, LEED is one of the more established power-saving gauges, selfdescribed as “the most widely used green building rating system in the world.” The design barometer certifies more than 2.2 million square feet of structures daily and more than 90,000 projects total in 165 countries.

One example of LEED’s monitoring efforts was to grant a “platinum” rating this May to the Live Oak House in St. Augustine, Florida, According to the environmental design judge, the 2,396-square-foot house adhered to “the local vernacular and Charleston’s Single Houses constructed one room wide and several rooms long to allow the breezes to flow

through unencumbered, effectively combating both heat and humidity.” The property boasts “a central hallway extending in the north-south direction with an arm off of either end and a courtyard around a central oak tree,” it says.

Other features include local materials, large porches, a steeply sloped roof and the home’s setting on a 48-foot wide site featuring a 75-year-old live oak tree. Another “striking architectural feature” are the windows.

“Peering out of the kitchen-dining room window, where one’s cheeks quickly cool from the breezy Atlantic wind, an adult visitor can nearly stand head to toe in the huge windows and absorb the majestic landscape,” the LEED report says.

Considered one of the “greenest” homes in northeast Florida, the house earned national and state ecological certifications, including: ➤ Passive solar lighting. ➤ Low VOC (volatile organic compound) paints, adhesives and sealants. ➤ Energy Recovery Ventilator-incorporated heating/cooling system. ➤ Hot water insulation and air filters exceed building code standards. ➤ Bathrooms and garage touting an enhanced local exhaust fan that operates on a timer; and all bathrooms conserving water with WaterSense toilets, faucets and showers. ➤ Un-irrigated, drought-tolerant grass on a 100 percent permeable lot to maximize storm water absorption and reduce runoff into the adjacent Salt Run fishing and paddling hot spot.

The house scored an Energy Star HERS (home energy rating system) index of 50, in which the lower the score below 100, the better.

Finally, the roots of the live oak tree “continue to grow below the elevated home, which add to the overall beauty,” the environmental design system says. © CTW Features

By the Numbers

33.7

Homes in the bottom third of the market have only regained 33.7 percent of their lost value following the housing crisis. A mere 10.6 percent of these homes have fully returned to their peak values.

Source: Zillow

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Percentage of Americans without an emergency fund – a six-year low.

Source: Bankrate.com Š CTW Features

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Percentage of Americans that think real estate is the best way to invest money not needed for 10+ years. It was the highest ranking investment.

Source: Bankrate.com

P leas e

RECYCLE www.capitalcityweekly.com

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HOME BUYING

By Jim Parker

D y w e e n l o l i M n g g i s B Million-dollar homes no longer pie in the sky.

Properties priced in the seven-figure range even 20 years ago were a rare exception in all but the swankiest communities of the U.S. Nowadays, million-dollar homes are cropping up throughout the country, and the number of residences is surging with one in 25 houses nationwide valued at $1 million or above.

Housing researchers cite a tight market that’s driven up costs as contributing to the growth in luxury mansions, beachfront bastions, premier estates and secluded compounds. Still the list varies depending on the locale. “In Atlanta, it could indeed net you a gigantic mansion in the exclusive suburbs.

But in San Francisco, a seven-figure check barely gets you a compact condo with one bathroom,” says Yuqing Pan in a June article on Realtor.com.

The real estate site this spring studied cities with the highest growth rates in homes priced at $1 million or higher from first quarter 2014 to first quarter of 2017, factoring out certain super rich markets such as Aspen, Colorado, and San Francisco, in which 1 in 10 homes reached the $1 million mark even three years ago. The list also limited top picks to two per state.

While most of the million-dollar places are in the West, they make up a cross-section of resort-like towns, mountain-ringed metros and historic ocean-side cities.

Denver ranked first, with the Colorado city’s million-dollar home growth rising 6.1 percentage points from a 3.3 percent share in 2014 to 9.4 percent this year. Next were Santa Rose, California; Boulder, Colorado; Truckee, California; Fredericksburg, Texas; Heber, Utah; Boston; Seattle; and Santa Fe, New Mexico. Rounding out the top 10 was Charleston, South Carolina, which saw its seven-figure houses increase 2.1 percentage points in three years from 4.9 percent to 7 percent.

The story highlighted Denver for its recreational activities and as an attraction for Californians, who sell their seven-figure properties for $1 million homes in Colorado and have money left over. Santa Rose lures buyers looking for more value than San Francisco an hour south. Boulder sits among the Flatiron Mountains surrounded by “lush forests and crystal-clear lakes” 8

and is home to a dozen business start-ups. Truckee is a vacation spot in the Kae Tahoe area, known for skiing in the winter and warm weather attractions in the summer.

Fredericksburg is an historic town sits in the Texas Hill country, just an hour-and-a-half from Austin and San Antonio. Heber sits in a valley outside Salt Lake City and is 20 minutes from winter resort Park City.

In describing Boston, Realtor.com said, “While it’s true that Louisburg Square and Beacon Hill have no shortage of red-brick townhouses fetching $10 million or more, there’s new growth far from such trophy addresses, or those in wealthy suburbs like Brookline.” Seattle gained in million-dollar properties for its “tech wealthy” and “global affluent” population. And Santa Fe offers mega-properties such as designer Tom Ford’s $75 million ranch for sale.

In a vignette, Realtor.com showcased Charleston’s resort-business ambience. “Beaches, mild weather, and beautiful historic homes – Charleston checks almost every box for a perfect place to buy a second home. And that’s why this old-world city has never fallen out of fashion among business moguls and celebs.

“But lately it’s been the new-money class, many of whose members work in the city’s fast-growing tech game, fueling the upper-end real-estate boom.

Developers have embarked on a new construction frenzy on the waterfront – many are tearing down old properties and building brand-new luxury ones,” the article notes. “’Charleston is sophisticated, artistic and has incredible food,” says Thomas Bennett, a Realtor with Carriage Properties. “If you want to buy a nice second-home on the coast between New York and Florida, this is it.

Sullivan’s Island, about 15-minute drive from downtown, is a beloved spot to buy a lavish second (or fifth) home. Beach homes are built with broad piazzas and high ceilings to catch sea breezes. Only four homes on Sullivan’s Island © CTW Features are on sale for less than a million.”

Home Buying

By Marilyn Kennedy Melia

New Choices for Older Buyers...

As America ages, the housing industry is racing to provide desireable options The sheer number of Boomers is upping demand for new senior-geared options, says Beth Burnham Mace of the National Investment Center for Seniors Housing & Care.

So agents can help seniors with all the new choices, the National Association of Realtors has training for a SRES (senior real estate specialist) designation, says Skip Frenzel, SRES instructor.

Indeed, advice from legal or financial experts is also often needed, since some housing has unique requirements, like an entrance fee that’s refundable when the senior leaves.

Right now, niche affiliations are a trend, with communities aimed at groups like artists and musicians, retired NFL players and LBGT, says Andrew Carle of George Mason University. The most popular, Carle notes, are communities affiliated with (and located near) a university.

Here, a look at options:

www.capitalcityweekly.com

Active Adult (AA) Communities Other than requiring residents be 55 or over, these look like other gated communities, with pools and amenities. What’s new, says Mace, is these communities are being built near urban centers, instead of outer suburbs.

The average age in AA communities is 65 to 75. Rental units are popular.

Independent Living (IL) These apartments or homes offer a minimal number of services, such as one prepared meal daily. IL housing is often on the same site as communities providing more care (see below).

“People who move (into IL) are ‘planners,’ who want to stay in the same place,” if their health and independence declines, Mace says.

Assisted Living (AL) This category has seen big growth following the recession, since seniors who need this option would buy into it regardless of the economy, Mace says. AL housing offers residents help with medication, showering and other basic needs.

Continuing Care Retirement Communities (CCRC) These include more intense nursing care, along with IL and AL housing on the same site.

© CTW Features

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HOME BUYING

By Marilyn Kennedy Melia

Home shopping tips How to stay focused while on the house hunt.

It’s not easy to be sure-footed through every step, especially for first-time buyers. But experts can provide guidance on navigating the twisting path, ending at the right new home for you: 1. Meet Lenders This is not the fun part. Most real estate agents insist buyers get “pre-qualified” – meaning lenders estimate the amount of mortgage a buyer is eligible for – before visiting properties.

“There is no sense in looking … if you haven’t validated what price range you should be shopping in,” explains Cara Ameer, a broker-associate with Coldwell Banker Vanguard Realty in Ponte Vedra Beach, Florida.

Even a preliminary discussion of how much your down payment will be, your credit and debt picture and other financing factors involves a host of decisions.

2. Prioritize Preferences What do really want in a home? Probably lots, like being in a great school district, having a shorter commute to work, or huge closets.

Wish lists differ, with some putting a priority

on items others don’t even rank, such as the quality of cell phone service in a condo, notes Jim D’Amico, owner of Century 21 North Shore in Boston.

Analyze your priorities carefully. If an item you’re ranking highly, for instance, is dependent on other future event, it could be a mistake to choose primarily on that priority. If you buy a home that’s smaller than you want but choose it because of the school district, and then decide to send your son to a private school, you could regret your choice.

3. Go Under the Microscope When browsing online, buyers typically view a shot of the front exterior first, says Michael Seiler, a professor of real estate and finance at The College of William and Mary. “Only if they like it will they read the property description,” he adds.

But the photos can be misleading, warns Seiler. “Don’t fall in love with a home on the internet. There’s no substitution for a personal visit.”

When you’re interested, go back at different times of the day, and on a weekend and weekday, Ameer says. Then leave no door or drawer unturned, checking space in closets and cabinets. Then walk both the inside and outside, noting conditions down to any scuffs on moldings.

4. Find ‘The One’ It will be a mix of practical reasons and intangible, emotional factors that come together on a particular property, giving you the sense that a particular property is right for you, Lee says.

Beware, though, that sometimes the most “practical” choice is not the best in the long term,.

Experts warn not to over-spend, however some consumers shy away from appealing features – anything from more square footage to a lavish landscaping – because they feel guilty about the indulgence.

Checking with a financial adviser on the expenditure might provide a clearer view of what’s practical and most appealing. © CTW Features

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TRY THIS ON THE GRILL

eco-friendly GRILLING IS ON THE RISE Weather permitting -- few things can beat a relaxing evening spent in the yard gathered around the grill in the company of friends and family. Cooking food over an open fire dates back centuries. Despite the various modern means of cooking food, the combination of a metal grill and some flames remains one of the more tasty ways to prepare meals.

Grilling is a relatively easy concept to master, but environmentalists may question if firing up the barbecue is a smart choice. Rest assured that while the environmental impact of grilling is negligible, there still are ways to make it even more eco-friendly.

Grilling purists may prefer charcoal to gas, feeling charcoal more effectively produces that familiar smoky flavor, but environmental experts say that gas grills may be better for the environment. A study by the Oak Ridge National Laboratory for the Department of Energy found that gas grills generate 5.6 pounds of carbon dioxide per hour, while charcoal grills produce 11 pounds per hour.

Furthermore, the charcoal briquettes used on many grills are made from more than just coal. They may contain wood byproducts, starch, chemical additives, and lighter fluid. For those who insist on charcoal, use natural lump charcoal, which is made from coal and little else.

Another step to take is to invest in a quality grill.

Replacing a cheap grill every few years can be harmful to the environment, especially when you consider how many components go into the construction of a grill and the packaging required for shipping long distances. Quality products last longer, and that durability benefits the planet.

In addition to buying a better grill, you must take good care of the grill and maintain it so it works optimally.

In certain ways, grilling is already an eco-friendly activity, as it doesn’t lend well to prepackaged foods and it enables you to turn off the stove while reducing your electricity consumption. In some instances, you may not even need to fire up the barbecue at all. If you’re spending the evening by a chiminea or a fire pit, you can skewer a couple of hot dogs and cook them right over the flames.

Do not offset the benefits of grilling by creating a bigger environmental hazard in meal preparation and service.

Minimize the use of disposable plates, napkins, cups, and plastic cutlery at your backyard event. Rather than single-serve cans of soda or iced tea, use large pitchers or 12

bulk-sized containers. Insist guests discard all recyclable materials in the proper recycling receptacles.

Promptly wrapping up leftovers is another way to make grilling even greener. Refrigerating foods means you will have good meals for the rest of the week and will minimize spoiled food that would otherwise end up in the garbage.

When shopping for foods to toss on the barbie, choose locally grown foods and sustainably raised and harvested meats and poultry. Serve generous portions of locally produced vegetables to stretch food even further.

Grilling is a great way to cook in an eco-friendly way if you make a few changes for the better.

HOMEOWNING

Pet Stains

Pet accidents can be challenging to treat and require patience.

Pet owners sometimes must contend with stains and odors. Some of these stains may be normal, while others might result from accidents.

Individuals may experience a trial-and-error period as new pets become acclimated to litter boxes or grow accustomed to relieving themselves outdoors. Pet owners must remain patient as young animals learn where and where not to relieve themselves.

Pets that are already trained may also suffer accidents as they grow older. PetMD says that urinary and fecal incontinence can afflict dogs of any age, but is most often experienced by middleaged or senior dogs. Cats, too, can experience incontinence, which is most common in older cats and large cats, as age and size can make it challenging for cats to reach the litter box in time.

Accidents can be troubling, as they often result in stains and smells. Treating these issues to prevent damage to flooring and deter pets from

thinking a particular area of the rug is their personal bathroom requires patience and trial and error.

Upon discovering an accident, pet owners should blot up as much of the liquid as possible.

The carpet cleaning experts at Chem-Dry advise putting a few drops of dish detergent and a little water on the area to absorb as much moisture as possible.

To treat old stains, sprinkle baking soda on the affected areas and allow it to sit overnight. Then spray the areas with white vinegar and let the two substances bubble to clean the area. Baking soda and vinegar can be an effective, homemade cleaning mixture if accidents are a frequent occurrence.

Pet owners also can purchase commercially produced enzymatic cleaners. Enzymes are proteins that help spark natural chemical reactions at the molecular level, and the enzymes in pet carpet care products attach themselves to the

molecules that make up the urine and bacteria that feed on it (producing the foul odors), serving as a catalyst for their breakdown.

Stains from feces may take some more effort.

Try to remove as much as possible without pushing the stain further into the carpet fibers. Use a stain removal product to help lift out the stain. This may take a few applications.

Pet owners also may want to invest in carpet cleaners if accidents continue throughout training periods.

If urine has seeped into the floorboards or padding under the carpeting, carpeting may need to be replaced, particularly if the animal repeatedly visits the same spot to urinate. This is the best way to remove the scent and prevent future trouble.

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HOME SELLERS

By Erik J. Martin

SOCIAL MEDIA GETTING THE WORD OUT FASTER

Even homeowners working with a real estate professional do well when they help promote their homes in their social media networks. And more people are taking it upon themselves to speed up the sale of their house by sharing images of their home.

“You can’t underestimate how often people know someone who is looking for a home in their same area or neighborhood. Word of mouth marketing is key,” says Doc Reiss, managing broker with Town & Country Real Estate in Port Angeles, Washington.

Homeowners have a huge advantage over real estate professionals when marketing a property.

They can talk from the heart about why they love their home.

So if you’re sharing your home’s listing on Facebook, Twitter, Instagram or Pinterest, con-

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sider creating a storyline around your home’s personality. Is it a place where you can enjoy a mountain view and mediate, or does the large yard beg for gatherings with friends around the outdoor kitchen? Find compelling stories to tell that can grow into a campaign, complete with hashtags.

John Wake, geek-in-chief at Real Estate Decoded, Phoenix, says word-of-word marketing involves telling everyone you know.

“Tell the parents of your kids’ friends at school. Tell your friends at church and work, if appropriate,” he suggests.

Most of all tell your Facebook friends, but should also be cautious not to post too often, as it might turn off people who might potential serve as a referrer.

Your own agent should be supportive of all

your efforts to help out. In the case of McClure, his agent even reduced her commission given that it was his Facebook page that landed the buyer.

“I would definitely recommend promoting a home in your network as a way to give your house more visibility among like-minded people,” he says. “It’s a great tool to use along with having an agent.”

Selling to a friend of a friend is usually a smoother transaction because everyone is on their best behavior, Wake adds. Their social reputation also is at stake.

You can use your social media pages or online digital home management platform for consumers to manage all the data about their home. © CTW Features

HOMEBUYING

By Marilyn Kennedy Melia

3 Rules of the Modern Mortgage Experts shed light on today’s mortgages, and why now the path to ownership is clear for more buyers.

1. Start with the Down Payment.

Most experts agree that saving for a down payment is the biggest struggle for consumers hoping to buy. “Most of the efforts by [the government entities that back mortgages] have been targeted at buyers with low accumulated assets for a down payment and who have at least moderately good credit,” notes Erin Lantz, vice president of mortgages at Zillow.

One government loan, the Federal Housing Administration mortgage, allows just a 3.5 percent down payment, and has been especially popular in the past few years because it was often the only option that borrowers with limited down payments could qualify for.

2. Keep Credit In Mind.

The FICO credit scoring model, which takes data on whether consumers pay

their credit card, medical, phone and other bills from the three major credit bureaus, and then assigns a number from 300 to 850, is used by most mortgage lenders.

The higher the number, the better the score. In the immediate wake of the financial crisis, scores well into in the 700s were required for borrowers making less than a 20 percent down payment, says Don Frommeyer, former CEO of the National Association of Mortgage Brokers, but there has been easing since then.

3. Ensure Affordability.

Monthly recurring financial obligations, combined with the monthly amount that a borrower would pay on the new mortgage – including a monthly allotment for property taxes and homeowner’s insurance – shouldn’t take up more than 43 percent of the borrower’s gross (pre-tax) monthly income.

Usually, homebuyers make an initial visit to a lender to get “pre-qualified,” where the lender looks at the financial profile of the potential borrower, including the tally of recurring debt to income and estimate how big a mortgage the borrower should be eligible to obtain.

But when a buyer selects a home and makes a formal application, the debtto-income ratio is again measured, and lenders also will check to see that no new debt, such as an auto loan, has been added when the borrower is ready to close on the loan, notes Frommeyer.

Indeed, lending rules are still strict enough that borrowers must be careful to keep up prudent financial practices every step of the way. © CTW Features

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

Source: Taylor Morrison Home Corporation's 2017 Consumer Survey © Content That Works

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APRIL 2015