Kenai Homes Archives - Page 11 of 11

What your bank won’t tell you about their Kenai Real Estate appraisal!

December 6, 2012 By Glenda Feeken

You have spent weeks possibly months marketing your home in the Kenai Real Estate market and have finally found a willing buyer. After some back and forth you have agreed upon a price and repairs and are ready to close. The only item standing in the way of the seller’s freedom and the buyer’s new home is the appraisal. Surprise, after all that time, work, money and drama the appraisal came back lower then your sales contract price.

Appraisers in the Kenai – Soldotna real estate market are very conservative; they are not going to push any boundaries.

It helps to remember that the purpose of the appraisal is to protect the banks/investors. It is not meant to help a buyer and seller negotiate the sale of the property. This can be a shock for unprepared sellers and buyers. Just because you have a willing buyer and a willing seller at a given price does not mean the appraisal will support the price.

Here is the kicker, if the buyer has to finance a home purchase they need a partner or investor (Mortgage Lenders). The bank or investor gets to make the rules for the appraisal. Most Kenai home sellers and buyers fail to consider how the investor will influence the transaction. Lenders do not wish to be stuck with a home that is not valued correctly.

The most simplistic rule an investor has is that the property can be sold for as much as was loaned. The most important consideration in the appraisal is what similar properties are selling for in your area. The operative word is “selling”. What other homes are being marketed at does not influence an appraisal value. The Kenai and Soldotna Real Estate market is diverse with custom homes of all ages, styles and conditions. Appraisers often have difficulty finding similar homes that have sold recently within close proximity of your home. If they can’t find comparable home sales they will lower the value of the home, regardless of what the seller and buyer have negotiated.

Your local REALTOR Glenda and Jason Feeken are experts in the Kenai Real Estate market and the sales process. We can educate you on what homes are selling and appraising for so you can have a smooth transaction that closes. Contact us today to answer any questions you may have on buying or selling.

KENAI PENINSULA HOME OWNERS BEWARE!

December 4, 2012 By Glenda Feeken

The long standing policy that allows homeowners to deduct their mortgage interest payment from their income tax could become part of a “Fiscal Cliff” deal. The National Association of REALTORS (NAR) position is that the mortgage interest deduction is vital to the stability of the American housing market and economy. We all need to remain vigilant in opposing this or any future plan that would modify or do away with the deductibility of mortgage interest. Mortgage interest one of the last remaining deductions available to the taxpaying public.

Please take note and take action. Here is a link provide by NAR to let congress know this is not acceptable. Realtor Action Center: Please take action today. Pass the link on to friends and family to take action.

FHA to Cost Kenai Home Buyers More

December 3, 2012 By Glenda Feeken

FHA has announced a major change to its loan program which allows Kenai home borrowers to cancel the mortgage insurance premium (MIP) when their unpaid balance reaches 78% of the original purchase price. While no specific date has been set for the change, sometime in 2013, new FHA loans will require the mortgage insurance for the life of the loan.

At existing rates, the monthly MIP on a $168,875 mortgage is $178.99 per month. Under the current rule with normal amortization, the MIP would no longer be required in 9 years and 9 months. However, under the new rule, it would last for the entire 30 year term.

They also announced that the annual MIP will also be increased from 1.25% to 1.35% at some point in the near future. HUD, the parent agency for FHA, is making the changes to restore the capital reserves of the program that are needed to fund failed loans.

People that can close a FHA loan before the change takes place will fall under the old rules for canceling MIP and the lower rates. Since no date was announced, it is not known exactly when the changes will take effect.

While this information will probably not make the evening news, it will have a big impact on borrowers planning to use an FHA loan. Please pass it on to anyone you know who might be considering purchasing or refinancing with a FHA loan.

Kenai Homes For Sale

Year End Market Report – Central Kenai Peninsula

November 29, 2012 By Glenda Feeken

YEAR OVER YEAR COMPARISON

This Year: 1/1/2012 to 10/10/2012

Last Year 1/1/2011 to 10/10/2011

Area	Number Sold - Last Year	Number Sold - This Year	PCT %	Average Sale Price - Last year	Average Sale Price - This Year
300 - North Kenai	26	37	42	138,013	202,392
305 - Kenai	48	59	22	197,374	208,871
310 - Kalifornsky Beach	51	66	29	222,788	211,273
315 - S of Soldotna	12	8	-33	203,042	203,625
320 - Kasilof	19	15	-21	146,774	100,327
330 - Soldotna	41	35	-14	217,010	241,950
335 - Ridgeway	29	24	-17	244,271	292,496
340 - Sterling	39	38	-2	237,759	235,995
345 - Funny River	8	14	75	184,188	243,357
Residential Totals:	273	296	8	206,509	218,759
Grand Totals:	273	296	8	206,509	218,759

The first ten months of 2012 have been more active than the same period in 2011 with an 8% increase in the number of properties sold and a 6% increase in the average sales price. The bulk of the increase in properties sold have been centered in North Kenai, Kenai and K-Beach, while other areas experienced a drop in the number of sales from the prior year. Most local markets have benefited from an increase in average sales price. North Kenai was the big winner for sellers with a 46% increase in average sales price.

Oil and gas exploration and production continues to be a positive economic force with a positive outlook for the next year. We are seeing increased interest in exploration in the inlet and other areas by independents producers. Several new gas wells are being drilled in Kenai. The gas storage facility has been completed and is ready to address peak winter demand. Interestingly we are seeing a surge in new commercial construction from North Kenai to Soldotna. We are very lucky to have oil and gas, along with tourism and commercial fishing to support our local economy.

Click to search Kenai real estate.

What your bank won’t tell you about their Kenai Real Estate appraisal!

KENAI PENINSULA HOME OWNERS BEWARE!

FHA to Cost Kenai Home Buyers More

Year End Market Report – Central Kenai Peninsula

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