Jesse & Kathy Clifton, REALTORS® 907.699.6024

Tonight while going to check on listing, I passed the home of an unrepresented Fairbanks homeowner. It was a new construction project the sellers either built to resell or were forced to sell due to circumstances. I've watched as this particular 'builder' spent the better part of a year and a half working to finish this house. What caught my eye tonight though was a very large handwritten sign with the words "I will pay all closing costs for veterans" written across it in big block letters. My first thought was to wonder if the seller was paying closing costs, closing costs and prepaids, closing costs, prepaids and reserves, or closing costs, prepaids, reserves and the veterans funding fee. Then I wondered if the seller knew the difference, but that's for another blog.

I haven't been in this particular house but I know all about it. The seller has been very diligent in posting the property to every known free listing site left on planet earth, or so it seems. There have been newspaper ads; line ads and large, expensive diaplay ads with pretty graphics but still it sits there. The sellers are frustrated with a home that won't sell and I'm sure are getting to where any offer would look good. At this point most agents could tell you what's wrong with the house without knowing anything else.

It's the price, silly.

Mr. & Mrs. Homeowner, I applaud your effort to sell your home yourself. Whatever your reasons for going it alone I wish you the best. I do have a few pieces of advice I would like to offer you though; free of charge. You have been given the tools to understand the market. God gave them to you when you were born. They're your ears. Listen to the market, because it's speaking to you loud and clear. As a mater of fact, when you nailed that gigantic neon green poster board sign to the tree on the corner of your property it began screaming, but you're not listening.

If you wish to jump into the real estate game and walk a mile in my shoes, there are a few things you really need to take care of.

1) Correct the price. You might want $335,000, but you're not going to get it. If your asking price doesn't mirror market value as established by a licensed appraiser, then nothing else you do will matter. If the price is wrong those saplings in your front yard will be shade trees before the house sells.

2) Understand that failing to have the home inspected during construction has reduced the number of people who can buy your home. Without your holding a General Contractors license with a Residential Endorsement and the PUR 101 and 102's complete; respectively the energy rating and building inspections, Alaska Housing Finance Corporation will not go near your home. In today's tight money market, the rate subsidy's from Alaska Housing make them a dominant player.

3) Create curb appeal. It's second, in my opinion, only to price. If the price is wrong and it shows poorly from the street, you're in double trouble. Buyers will barely slow down as they cruise down the street to the next house. Clean up the scrap building materials that are still lying all around on the "job site" after almost two years. Get the boat off the 'front yard.' While you're at it, get a front yard.

4) Make sure the inside of your home does not look like the outside. If you do get a buyer through the front door, they're not going to be able to see and appreciate the house over and though your clutter.

6) Make it available to buyers. Not everyone is willing to wait until Saturday afternoon or until you get home at 7:30PM to see your home. There are too many others on the market and yours is just not that special. Buyers will forget it ever existed by Saturday.

7) Hire an attorney. You'll need one to protect your interests when (or if) an offer comes in. While you can navigate a real estate transaction without a Realtor, it would be foolish to forgo both an experienced Realtor and an attorney.

Mr. & Mrs. homeowner, I offer this advice solely to help you get your home sold. The longer buyers ride by your "I'll give you the farm if you'll buy this house" sign, the longer they will think the entire market is on life support and that's far from the truth. Prepare it for the market or put one of those pretty azure blue gazing balls where the For Sale sign is now; it would make a much better lawn ornament.

Recently we met with a couple looking for some help with a building project. They bought a parcel of land upon which they planned to build their dream home but due to a lack of planning and a little claimed deception on the part of the seller found themselves mired in a potential disaster. What takes this from bad to worse is the seller is a licensed (non Realtor) real estate agent.

What do you do when you don't know what you don't know? The seller, who happens to live next door, told them the ground in the area was good. Based in part on his statements the buyers didn't bother having a subsurface soils investigation done. They had no idea that could even be done.

Contrary to what some will say, you can not tell diddly about the soil without having the lot in question drilled. The type/size/age of trees or other vegetation won't tell you anything. The only ground you won't find permafrost under has palm trees growing up from it, as the old joke goes.

It wasn't until they hired a local company to excavate for the foundation and septic system that they discovered trouble brewing. Five feet down and no gravel.... 6 feet... 9 feet... 12 feet and still no gravel. Plenty of muck - wet clay that you couldn't build a dog house on, let alone a 2,200 sq. ft. house. Dig, dig, dig was the order of the day all the way down to 19' when they hit gravel... beneath 4' of water.

Having two test holes dug and examined would have cost $2,500. They are now facing a $30,000+ expense to bring in enough gravel to fill a 20' hole the width and depth of the foundation. We talked briefly about building the house on steel pilings but after looking at the plans we'll need roughly 25 pilings, which at $1,400 each plus a floating steel deck floor in the garage adds roughly $35,000 to the cost of the foundation.

They are understandably sick. I feel for them but at this point I'm not sure what can be done. They can't simply cut their losses and move on either as they paid, in my opinion, too much for the property. They could never resell it for what they paid and certainly not with the knowledge of the soil condition (at least in that spot). I'm not sure what options outside of litigation are available and even that's going to be a messy road to try and travel. The seller will simply hide behind caveat emptor as there are no disclosure requirements in the State of Alaska where undeveloped land is concerned.

If you're buying undeveloped land in Fairbanks or the Interior, have the property drilled. It could save you from making a very costly mistake which you could certainly end up regretting later.

Located just a few miles from Fairbanks and North Pole is Chena Lakes Recreation Area; a 2,100 acre Lake and River Park, campground and picnic area. It's a fantastic place to spend a summer afternoon or weekend enjoying the great outdoors. Although Chena Lakes is only a few miles from the city of North Pole, once inside the park it feels like you're a million miles away.

The lake park is built around a 260 acre lake surrounded by a long sandy beach. Nestled into a winding loop are numerous waterfront picnic tables with BBQ grills and fire rings, several pavilions with changing rooms (which must be reserved), three volleyball courts, a horseshoe pit, a playground for the kids (and the kid in you), two fishing docks and a lake boat launch. An onsite vendor rents paddle boats, kayaks and canoes for those wishing to explore the lake. A couple of the islands have picnic tables, fire rings and tent camping sites set up as well.

Want to do a little fishing? The Alaska Department of Fish and Game stocks the lake with Rainbow Trout, Silver Salmon and Arctic Char and you can try your hand at catching Arctic Grayling, Northern Pike, Whitefish, Burbot and King Salmon.

The River Park is stretched along 4 miles of the south bank of the Chena River and has a volleyball court, horseshoe pit, a covered pavilion, changing room/warm up building, a 3 mile self guided nature trail, river boat launch, potable water stations, restrooms, and multiple day use picnic sites with tables and fire rings.

With so much to see and do, you might just want to spend the night or a weekend. Lucky for you Chena Lakes has two campgrounds with a total of 80 back in and pull through sites. Both campground loops are wooded and offer views of the Chena River, Chena Lakes or great views of the Alaskan wilderness. All of the campsites have a parking pad (most have a padded tent site as well), picnic table and fire ring. Restrooms, water pumps and trash receptacles are also close at hand. The one caveat to using the campground is that, like most state campgrounds, size matters. RV's up to 30' - 35'+/- will fit into most sites without a problem but beyond that there are only a few that you'll be able to get into. Lucky for us the few that accommodate larger rigs are among our favorite sites in the park.

There are trails galore running through the park. Several well developed ATV trails circle the park. In addition there are miles and miles of trails that cut through the park and flood control project that are great fun to hike and ride though. Chena Lakes also boasts several miles of wide paved bike paths to enjoy. Just remember, you're not necessarily alone out there... Bears and moose are commonly seen, so please use caution.

Additional Resources

Map and directions to Chena Lakes Recreation Area
Boat rental information
Chena Lake Recreation Area Fee Schedule

Chena Lakes Map & Rules
Picnic Reservation Form
Winter Trail Map and Guide

Fairbanks Real Estate buyers are discovering now is a great time to get into the market. Now that the leaves are turning green and the sun is out in full force, many buyers are coming out of hibernation and thinking of real estate.

Fairbanks homes with acreage are very much in demand. Smart buyers are jumping on these homes as they become available. It's possible to find homes in Rural Fairbanks; Chena Hot Springs & Two Rivers, Fox, Ester, North Pole and Salcha, that have some significant acreage. Many of these will be within an easy comute to both Fort Wainwright and Eielson and with zoning for horses or dog teams.

1351 Gilmore Trail Stunning views of the Goldstream Valley - enjoy spectacular sunsets as well as the Aurora. 3 bedroom, 2 bath home on 5.7 acres. The views and acreage make this a rare find in Fairbanks. 2,233 square feet of living on three levels. Woodstove helps to minimize heating costs. An additional 3.7 acres is also available. This home was listed and sold by us in 5 days. Fairbanks homes that are priced within the market are selling quickly.

The homes below represent a sampling of what's currently available in Fairbanks and Interior Alaska.

There are currently more than 20 properties for sale throughout Fairbanks and the North Star Borough ranging from 5 acres to 993.4 acres. Ready to find your piece of the Last Frontier? Contact us online or call 907.699.6024 to get started.

Do you have a hankerin' for some fudge? Does the thought of freshly made chocolate pecan fudge make your mouth water? If so, I know just the place you need to check out.

Located in downtown Fairbanks, The Fudge Pot is a Fairbanks treasure. They have been satisfying Fairbanksans sweet cravings since 1997 with some of the best fudge in the state. Do you like plain 'ol regular fudge? How about mint chocolate or my personal favorite, butter pecan. I'm telling you, this stuff is so good it'll make you swallow your tongue. Well, ok, not really but it is darn good stuff.

In addition to mouth watering fudge, the Fudge Pot also serves espresso and delicious deli sandwiches. Enjoy a sweet treat or lunch while overlooking the Chena River in downtown Fairbanks. Just across the street from the Visitors Center on First Avenue, The Fudge Pot is sure to be a hit with everyone in the family.

Don’t forget to check out their gift shop with t-shirts and Alaskan souvenirs too. There’s no telling what you’ll find you just can’t live without. You can also order their delicious fudge online and have it delivered right to your door. Yummy!

There are moments I long for days gone by. A time when the country and world were different. More civil. More respectful of the gifts God gave us. When I was a boy it seemed the world really understood the word respect. Your parents drilled it into you day after day. You showed respect to your parents, to your elders and you certainly showed respect for the men and women in uniform who faithfully and valiantly serve the United States of America.

Ronald Reagan once said "Freedom is never more than one generation away from extinction. We didn’t pass it on to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children what it was once like in the United States when men were free."

One of the men ensuring that freedom doesn't fade into annals of history is Gunnery Sergeant William "Spanky" Gibson. Gunnery Sergeant Gibson deployed to Iraq in January of 2006 with the United States Marine Corp. While conducting a foot patrol, he was shot by a sniper in his left knee while attempting to pull an injured Iraqi soldier out of harms way. The injuries he sustained caused him to lose his left leg, just above the knee.

After an agonizing rehabilitation and being fitted with a special prosthetic leg, Gunnery Sergeant Gibson went on to train for and compete in the Marine Corp Marathon as well as compete in the "Escape from Alcatraz" swim. A grueling feat for anyone. Then again, Gunny in no ordinary man. He's a United States Marine. Ooh-Rah!

The sacrifices that make him an extraordinary human being are shrugged off as being just part of the job. After an chance meeting with Marine Corp General James Mattis, he was asked what, if anything Mattis could do for him. His reply? To re-deploy to Iraq. He got his wish. He returned to Iraq as the first full leg amputee to return to the front lines.

"The Iraqis are where we were 232 years ago as a nation. Now they're starting a new nation, and that's one of my big reasons for coming back here. I wanted to tell the people of this country that I'm back to help wherever I can." Gunnery Sergeant Gibson.

Some people work an entire lifetime and wonder if they ever made a difference to the world. Marines don't have that problem. Amen.

Simon Conway had the privilege of interviewing Gunnery Sergeant Gibson on his radio show yesterday. In a blog about the show, Simon mentions that Gunny wants letters - lots of them.

This is your opportunity to say thank you to a true American hero. Please do me a favor and take a second to send a short note to the Gunny, via Simon or if you don't have time leave a few words in the comments section of his blog. Simon will be forwarding the letters and/or emails to the Gunny and his buddies. It will only take a second and it would mean the world to the guys to know they are in our thoughts and prayers.

God Bless

Have you ever heard the phrase "up the creek without a paddle... with the repo man on the shore waitin' for the boat?" Well, of course you have. Apparently the saying originates from a place called Gosport, Endland where injured sailors would be sent up a creek and then loaded onto another boat that was on rails to the Hasler Hospital. At least that's the story I discovered after a little Googling. While we've probably all felt that way at least once it appears as though Maynard the Moose is livin' proof it actually happens!

The above photo (click to enlarge) was taken during an overflight to monitor conditions on the Yukon River, 12 miles downriver from Galena. U.S. Fish and Wildlife pilot Brad Scotton watched as Maynard floated down the Yukon River on an ever shrinking sheet of ice. Unfortunately, Scotton had to turn back and so we're left to wonder if Maynard the Moose made it off the ice or not. They're pretty adept at swimming so we'll hope Maynard made it to shore and is now working his way home.

The next time you think you're up the creek without a paddle, think of Mayanrd the Moose and remember it could always be worse!

Fairbanks homes sales for April 2008 show an upward trend in movement in both the number of homes sold and the average sales price. The good news is the market is moving up. The bad news is that it didn't really have anywhere to go BUT up.

Home sales in Fairbanks struggled through most of last year but especially through the last two quarters of '07. Where are we today? Well, looking at the numbers sales have been increasing every month since January. April sales jumped more 36.5% over March but we're 20% under April 2007 stats. In fact more homes were sold in Fairbanks and Interior Alaska during the first quarter of 2007 than have been sold in the first four months of 2008.

Fairbanks sellers would be well advised to pay close attention to these numbers. With more than 600 homes currently for sale, pricing is absolutely critical. There's no room to "test the waters" or to build in "negotiating room."

If the goal is to sell your Fairbanks home, then being spot on with respect to pricing is an absolute must. It's probably not a bad idea, depending on what segment of the market you're in, to price your home 2-3% under the comparable sales that have closed within the past three months. The serious I'm-ready-to-buy-right-now buyers are simply not looking at homes where the asking price is out of line with market value.

Ready to sell your Fairbanks and Interior Alaska home? Contact us online or call us at 907.699.6024. We know Fairbanks and we know the Fairbanks real estate market. We'll help you go from For Sale to Sold!

If you're a follower of real estate news, you've probbly heard folks talk about it being a "buyer's market" or "seller's market." But, what do those terms really mean and what does it mean for Fairbanks home buyers and sellers. How well homes are, or are not, selling determines what type of market we're currently in. Think of the absorption rate as a statistical representation of Fairbanks real estate supply and demand.

1-3 Month Absorption Rate = Seller's Market
4-6 Month Absorption Rate = Normal Market
7+ Month Absorption Rate = Buyer's Market

Ok, so what type of market is Fairbanks right now? Well, let's take a peek.

595 = Number of homes currently on the market
83 = Number of homes sold between April 1st - May 1st
595/83 = 7.2 Months

It will take 7.2 months, or until December '08, to sell everything currently listed for sale at the current sale rate if nothing new was listed for sale. Obviously different segments of the market react differently. Starter homes traditionally outsell luxury homes. Single family homes often sell at different rates than condominiums or townhomes. A word of caution - Market value is still determined by what the surrounding homes are selling for as well as the desireability of a home. Age, condition, size, location and amenities all factor into the homes value.

Sellers: Understanding current market conditions will help you in establishing a realistic asking price based on market performance. Let's say the absorption rate for homes between $200,000 to $250,000 is 5.4 months and the absorption rate for homes priced between $250,000 to $300,000 is 12.8 months. If by looking at comparable homes that have sold, your hoem is valued at $261,000, it might serve you better to set your asking price just under $250,000. When you factor in carrying costs such as your mortgage payment, utilities, taxes and insurance you might find lowering the price up front to effect a quicker sale might save you considerablly.

Buyers: Many factors go into establishing a homes market value. As I said above, age, condition, size, amenities and location all factor into what a home is worth on the open market. Using the time equals money equation, if you were looking to negotiate a sales price below the seller's current asking price, it might be more likely with homes in North Pole, which has an absorption rate of 8.6 months rather than in Fairbanks, which is currently at 6.9 months.

North Pole, Alaska homes for sale. Conveniently located near Fort Wainwright and Eielson Air Force Base.

Prices for new construction homes in North Pole are approximately 6% lower today than the 2007 average. Now is a great time to take advantage of the lower home prices and builder incentives. Combined with low interest rates these North Pole homes are an incredible value.

North Pole is a quaint bedroom community of Fairbanks. Located 12 miles south of Fairbanks on the Richardson Highway, North Pole enjoys close proximity to both Fort Wainwright Army Post as well as Eielson Air Force Base.. Good schools, shopping, and outdoor recreation make North Pole an attractive place to call home.

There are more than 50 new homes for sale in North Pole ready for a new family. Call us today for information on these or any new construction homes in North Pole.

$150,000 - $200,000

$200,000 - $250,000

$300,000+

Ready to buy a new home in Fairbanks or North Pole? Contact us online or call us at (907) 699-6024.