Fairbanks Ak Real Estate News & Info

Tonight while reading Lane Bailey's blog "The best agent to use..." I was reminded of a conversation recently with a fellow broker about how many people are taken in with the 'buying the listing' scheme. 

Last year we had a client who, in preparing to relocate out of Alaska, called us to put their home on the market.  We sold the home to them and knew what improvements they had made, so giving them market value was a piece of cake.

As it turns out we were not on the same page with respect to value. When it was clear we were at an impasse they listed with a competing firm who told them what they wanted to hear rather than what they needed to hear.  More than a year, seven or eight price reductions and two real estate firms later, the home remains unsold.

The truth is most homeowners don't have a clue what their home is really worth.  Most know what their note is, what they owe and some even know their current property tax assessment.  Unfortunately, those numbers rarely reflect current market value. 

Preparing a comparative market analysis is not rocket science.  As Realtors we look at predominately the same set of numbers appraisers look at to define value; recent sales of homes similar to yours. The best Realtor to sell your home may not be the one that gives you the highest price.  Trust, but verify.  Ok, but how?

It's pretty easy to see if a home is a comparable; it will be equal in size, age, condition, location, etc. The question becomes how it compares by price. Just like your arithmetic teacher used to say, so should you... show me the math.  Look to see how the adjustments are calculated for the residential square footage, garage square footage, effective age, lot size, amenities (i.e. fireplace, Jacuzzi tub, hardwood floors), bathrooms, etc. 

Ask to see not only the actual adjustments but also the source of the numbers used to make the adjustments.  I take my cue on adjustment values from local appraisers and by closely reviewing appraisals.  If an appraiser is using $40 to adjust the residential square footage and Agent Not-So-Genius is using $110, you're going to have a market analysis that's good for one thing... lining the birdcage.

If an agent can't or won't show you how they arrived at a price, take that as your cue that a) they might not know what they're doing or b) they're inflating the price to get you to sign a listing agreement.  As Lane mentions, don't be too surprised to see this agent come armed with pre-authorized price reductions.  They know in order to sell your home, it will need to be at market value. 

While numbers can be made to say just about anything, asking the agent(s) sitting in front of you to 'do it long hand' should help you weed through the rhetoric and select an agent to represent you based on what they'll do rather than by the dollar amount they fill in on the listing contract.

One thing we're constantly asked by folks relocating to Alaska is about our weather. What are the winters like? Do you have 24 hour sunlight in the summer? How do you survive when it's -40 (or colder)?

If you're headed to Alaska just to start a new chapter in life or relocating with Eielson Air Force Base or Fort Wainwright Army Post, this should give you an idea of what you're in for. Having called Alaska home for almost 30 years I can tell you there's no place quite like The Last Frontier.

The truth is we do have some cold winters, but the summers more than make up for them.  Our summers are moderate, dry and generally not very windy.  I don't know that we broke the record for coldest winter this year or not, but we came awful close.  There were a couple of times it registered 65 below zero at our house in North Pole.

Fairbanks is often described as an arctic desert.  Most of the precipitation in the Interior is from our annual snowfall.  Summers are fairly dry although some years, like 2008, can bring record rains the the Interior.  It's certainly not something we see often.

As a rule, winters in the Interior are dark.  With the onset of the summer solstice, we begin losing daylight.  Initially no more than a few seconds, but eventually we lose up to 6-8 minutes of daylight a day.  In the depth of winter, the sun barely creeps above the horizon.  On a cloudy day or a very cold day with heavy ice fog, you can expect to not even see the sun.  Sounds bleak, I know, but December 21st marks the turning point where we start gaining sunlight.  By May 15th the sun doesn't set until after 10PM, and even then there's plenty of light to enjoy any outdoor activity you can imagine.

New regulations adopted by the Alaska Department of Fish and Game dramatically effect military hunters and fishermen...fisherwomen too... or is it fisherpeople?  Either way, this is great news.

Prior to the new regulations being adopted, folks stationed at Eielson Air Force Base and Fort Wainwright Army Post, that had been in Alaska less than 12 months, were required to pay nonresident fees for a fishing and hunting license and related game tags. 

A long overdue change to the ADFoG regulations will allow permanently stationed active-duty military personnel and their families to purchase nonresident hunting and fishing licenses at resident prices.  An annual sport fishing license is now $25 and an annual combination sport fishing and hunting license is only $48.  Can it get better than that?  Sure.  Active members of the Alaska National Guard or Reserve may qualify for a free hunting or fishing license. 

Although it's a little early to break out your fly rod there's still plenty of time left to bag a few grouse or ptarmagain before the end of the season.  Here are a few links to keep you on track and out of the sights of the ADFoG Troopers.

Military License/Tag Informaton (.PDF)

Purhcase Hunting and Fishing Licenses

Small Game Seasons (.PDF)

Big Game Hunting Regulations

Interior Alaska Game Management Units (.PDF)

Sport Fishing Publications (ADFoG)

If you're not a member already, consider joining the Alaska Outdoors Council. It's sole focus is the preservation of outdoor pursuits in Alaska - hunting, fishing, trapping, firearms ownership, and public access - and conservation of the habitats upon which they depend. It's the best $25 you could spend.

Stay safe & God bless.

One of the challenges of living in Alaska is dealing with a sometimes manic Mother Nature.  The past couple of weeks we've watched as the temperature hovered between 40 and 65 below zero.  Water and sewer lines froze, cars began to break down and people were on the verge of going a little stir crazy from being cooped up inside. 

Yesterday Mother Nature changed everything.  Warm winds blowing over the Alaska Range from the Gulf of Alaska brought record breaking temps to the Interior.  In an instant we went from 62 below zero to nearly 50 above.  Eielson Air Force Base, which is about 10 miles from our house, hit 51 degrees. We're all confused... guys are breaking out their fishing gear and women, those of a certain vintage anyway, began putting their unmentionables back in the freezer.  Yes, Mother Nature is having a hot flash. 

While it may feel like spring, old man winter still has a little fight left in him.  These few days of warm weather will give way to a cold blast of 20 below air by Monday night. The good news is the Farmers Almanac predicts a warmer than normal August... you hear that Don?  :)

2009 Alaska Permanent Fund Dividend Application Period Now Open

If you haven't already done so, it's time to file for your 2009 Alaska Permanent Fund Dividend. Application booklets have started to hit resident mailboxes, but if you want to qualify for early deposit, you must file your application with the Department of Revenue Permanent Fund Division online.

To qualify for a PFD, you must have been an Alaska resident for the entire calendar year preceding the date you apply for the dividend and you must intend to remain an Alaska resident indefinitely at the time you apply.

Payment schedule

* October 9, 2008 - Direct Deposit
* November 5, 2009 - Check mailed (10-14 days for delivery)

The Alaska Permanent Fund was established in 1976 shortly after oil began flowing from the North Slope through the Trans-Alaska Pipeline. Managed by the Alaska Permanent Fund Corporation the fund began with an initial investment of $734,000 and has a current balance of approximately $40 billion.

"At least 25 percent of all mineral lease rentals, royalties, royalty sales proceeds, federal mineral revenue-sharing payments and bonuses received by the state be placed in a permanent fund, the principal of which may only be used for income-producing investments."

The fund is managed by a board of trustees appointed by the Governor; Chair Steve Frank, Vice-Chair Bill Moran, Nancy Blunck, Carl Brady, Patrick Galvin and Emil Notti and Executive Director Michael Burns.

Stocks - Publicly traded stocks make up 53% of the funds total market value. View the Funds top 50 stock holdings. A complete list of the APFC's stock holdings can be viewed here (.PDF). Current value of stock holdings is approximately $21.3 billion.

Bonds - Domestic & Foreign Bond funds make up 29% of the funds total market value. APFC staff manages 80% of their domestic bond portfolio with the remainder of their domestic bonds and foreign bond investments being handled by numerous external managers. Current value of bond holdings is approximately $10.5 billion.

Real Estate - Industrial, multi-family (residential), office and retail real estate make up 10% of the funds total market value. APFC's real estate investments are located throughout the United States. 25% of real estate holdings are held in REIT's and other miscellaneous real estate investment categories. Current value of real estate holdings is approximately $4 billion

Alternative Investments - 4% of the funds value is in Hedge Funds with an additional 4% in private equity. Current value of alternative investments is approximately $2.5 billion

A brief overview of the Funds dividend calculation can be found here (.PDF). The 2008 PFD amount was $3,269 ($2,069 + $1,200 resource rebate). As fund payouts are based on 5 year averages, we expect to see a significant increase in the amount of the 2008 dividend, bringing the individual dividend amounts close to $2,000 per eligible Alaskan.

This year there's an exciting and easy way to lend a helping hand to those in need.  When you apply for your 2009 Alaska Permanent Fund Dividend you'll be able to designate all or part of your 2009 Dividend to a charity (or charities) of your choice.  With a few simple clicks of a mouse you can donate to any of the more than 330 Alaska Non-Profits that signed up.  What a great way to help a neighbor in need.  View the eligible organizations.  Have questions?  Check out their FAQ or send them an email.