Some Advice for Buyers and Sellers in 2025

Published by Anchorage Daily News

By Connie Yoshimura

Every day I remind myself how lucky I am to live in Alaska. I remember I sold my first house to a young Arco engineer and his wife with a 14.75% interest rate. More recently, I was at loan committee in southern California when COVID hit and the price of oil went negative. I was fortunate to have a good partner and a lender who believed in Alaska. Today, we still believe in Alaska and Anchorage has finally achieved a positive population spurt and lets hope it continues well past 2025. Through all these challenges, what I have learned is that regardless of the economy, regardless of the politics, people buy and sell residential real estate based upon five personal reasons—marriage, birth, death, divorce and job change. 

So regardless of your circumstances and motivation, let me share with you my advice on how ‘move’ in today’s market. First, my advice to sellers. Yesterday, there were only 14 single family homes for sale between the average sales price between $500,000 to $549,999. But lack of inventory should not deter you from working hard to receive the very best value for your home. Our weather has not been conducive to showing homes but make sure your driveway, sidewalk and front porch are slip free. When its dark, make sure you turn on every light in the home, including the closet, the pantry and any table lighting. 

With the average median age of an Anchorage home now 43 years, I encourage sellers to order their own home inspection report. I can guarantee you that there is no such thing as a perfect home and any unexpected seller expense for electrical, mold, roof repair, et cetera, can significantly impact a seller’s net and it is better to know that before rather than after you have come to financial terms with a buyer. A seller paid inspection does not guarantee that a buyer’s home inspection won’t find something in addition but it can give you a head start on the cost for additional potential repairs. It also gives you time to receive competitive bids for any major repairs. And don’t forget to make sure your smoke detectors and carbon monoxide detectors are working. 

 A seller should also keep his homeowner’s insurance current. Even if you own your home free and clear as 35% of Alaskan homeowners do, it is important to maintain your insurance, particularly when you have your home for sale A mortgage requires homeowner’s insurance but once it is paid, the responsibility to insure your home and any liability related to showings falls on the seller. 

If you have added a fence, a shed or an addition such as a greenhouse to your home, you should obtain a new asbuilt survey. And if your neighbor has added a fence, you should also have an asbuilt because in many instances, an encroachment may have occurred even if it is only a foot or an inch. 

Seller escrow holdbacks, with the exception for septic system, is also not a good idea for either the seller or buyer. Escrow hold backs should only be released upon the agreement of both the buyer and seller and misunderstandings about the timing or the quality of the work can occur.

With only 14 homes for sale, needless to say it is a competitive market for buyers and with multiple offers the rejected buyer can’t help but be discouraged. Buyers need to be well prepared. For example, there is a difference between a 90% letter and a pre-approve letter. A pre-approved buyer means, generally, that he has been approved through underwriting which is more of a deep dive into their financial qualifications and verification of their credit history. Mortgage originators will check a buyer’s credit report, income, source of downpayment and availability of funds to close and if there are any buyer contingencies such as a lease/sale or recording of any property. But not necessarily do they take a deep enough dive into a buyer’s credit history. Not all facts are always revealed in the initial application, including, for example, child support payments, student loans and obligations resulting from divorce settlements. 

Many first time home buyers rely upon a contribution for their downpayment from a family member. I enoccurage you to have those funds already deposited in your account. Funds available to close and a pre-approval from a reputable lender will put you in a better position to have your offer accepted. Not all mortgage companies are the same. Some listing licensees and sellers would prefer an offer from a local lender. The Alaska Housing Finance Corporation is a good example of a financial institution which offers mortgage programs that specifically assist Alaskans. One such example is the recently announced the $10,000 buyer incentive for new construction on foundations poured after Jan. 2, 2025 built to a minimum of 5* plus or higher energy efficiency standard. Currently, there are also mortgage programs specifically designed for the medical community which loan programs created for medicalpersonell some , wich includes. And keep in mind whoever you chose to work with, there is advantage to where your mortgage is going to serviced post closing. Buyers can should shop for their lender just like they shop for a home. However, keepin mind, every time someone pulls your credit report, your score could go down. 

I want to encourage buyers to have their own home inspection even if the seller has provided a current inspection. And regardless of who pays for a home warranty, the cost should be part of the purchase negotiation. Various coverages can even include hot tubs and washer/dryers. Basic coverage is generally for one year and can be extended should the new home request. The basic plan includes plumbing parts, water heater, sump pump, garage door openers and built appliances, amongst other items identified in the warranty. A basic one year warranty has a cost ranging from $520. 

Finally both the buyer and seller need to clearly understand the timeline of their contract to purchase. Extensions can increase a buyer’s cost if interest rates rise increase and a seller can be impacted by delayed moving costs and additional mortgage payments as well as personal disruptions to the household.