Eagle River AK Real Estate Blog by Eric Bushnell

Good Market or Bad Market?

Friday, March 13, 2009

by Eric Bushnell

"How is the Real Estate Market?" This is a question you probably ask or hear on a regular basis. I know this is a common topic of discussion at any gathering. Everyone has a different opinion, but what is the reality in the world of realty?

One must first remember that real estate is local, which means that every area, city, neighborhood, and street is different then another. There are many factors that will effect a local market, and many markets are effected by the same national influences. The number of jobs being saved or lost will definitely affect the stability of a local market. Interest rates may hurt or help, however today they seem to be close to an all-time low.

I believe that there are two people that will influence the market the most. One is the buyer and the other is the seller. Confidence in the market will sway both of these parties. If the homeowner has no confidence then the will place their home on the market just to get out, because of a fear of loss. They will try to save what investment they may have in their home. If they have confidence in the market then they will hold onto their home because they know that in the long run, values will go up.

Lets look at this perception, good or bad. If a homeowner has a fear of loss, this may introduce a tremendous amount of stress into their lives. They may not make rational decisions, and one of them is do they really need to sell at this time? The flip side is the hope for gain, can they sell their home and take what equity they have and step up to a better home that they will live in for many years to come. As we know interest rates are lower and a seller can leverage their equity into a home the better suits their long term needs.

How do buyers react to the perception of a good or bad market? Buyers are watching the news just like everyone, else and unfortunately their isn't a special buyers channel that only gives them good news. Many buyers may have the perception that once they spend their money it will evaporate like many of our 401k funds. Some buyers may need to purchase a home and are being very cautious. They want to look at every home on the market and they are looking short term instead of long term. Buyers need to be sure of their needs, measure their buying power carefully. They days of excess appear to be ending, but old habits die hard. I still see buyer trying to maximize their purchase. There is a movement to more efficient homes and better locations. Buyers are trying to be smart about their purchase. This ultimately slows down the progress, however homes are still eventually bought.

I feel that buyer and sellers really need to look at their purchase/sales and determine if this fits their long term life goals. Homes are a necessity and while they can be a positive investment, a home is an expensive liability. Housing is needed by all, so there will always be buyers and sellers.

The housing market is is good and bad, and in our local market it is good and bad. Some homeowners have to sell and are forced into stressful situations. The good news is that the homes on the market in our area are being absorbed. Depending on the price range that a home is in, condition of the home, and the all important location determine how quickly a home sells.

The market can be good or bad, just like a glass of water can be half empty or half full. It is your perception that matters. I will continue to be positive, and help buyer and seller that are either in a bad situation or a good situation. The ulimate goal is a good outcome for both parties.

real estate eagle river market report

End of the year/New Beginnings

Wednesday, December 31, 2008

by Eric Bushnell

Strategic Action plans FY2009

Each objective will have definite timelines as well as complete steps to completion

1. Objective #1 is to maintain an operating budget of 10% or less throughout the year.

a. Cut extravagant advertising purchases

i. Keep all advertising expenditures to minimal cost

ii. Use budgeted monies in a broad manner vs. larger purchases

iii. 80% of advertising budget will be spent in online advertising

b. Minimize large scale print advertising

i. Co-op some of print advertising with other parties

ii. Better negotiating; obtaining lower costs or increased frequency

2008 is drawing to a closeand for the last month I have been analyzing what worked and what did not. I believe the first ten months of this year were pretty good, the last two, not so good. I like most people, think that while it wasn’t as good as previous years, it was still a decent year.

I was successful, and helped others obtain their goals. Not all goals were obtained; and there is much to work on in the coming year. This last week I finished my 2009 Business Plan. I was honest with myself and took a hard look at what I accomplished in 2008, and what still lies ahead. I think in 2009 it’s going to be difficult to gain any type of positive traction. I believe that there will be many unexpected hurdles and the national news will affect our market more than it should. I know that I will have to work smart to obtain my goals.

I have much work planned for the coming year. I need to implement my action plans as soon as possible; and I need to keep my nose to the grind stone and make things happen quickly. I want to enjoy my summer; as that is one of my goals. I have already started some of the tasks needed.

How about you? Did you review last year’s plan, and did you accomplish your goals? Keeping to a plan is difficult under normal circumstances, and under last year’s tumultuous events, it was darn near impossible. For those of you that did not have a written plan then maybe you did ok, although you flew by the seat of your pants, did you really have a successful year, as successful as it should have been?

2009 will have its ups and down, but I am ready for them. I will stick to my plan, and make the necessary adjustments throughout the year.

Will you?

Here is a portion of my business plan. This is the first action item I have, and I will be adding to it.

eagle river real estae planning new year

Update for the Eagle River Market

Friday, December 12, 2008

by Eric Bushnell

December has arrived in Alaska, the temperatures are going down. -8 degrees this morning and the current temperature has warmed up to 9 degrees. You would think this would discourage buyers, but no, several were here this morning ready to start the day.

We have seen several pending sales in recent days. This means agreed contracts. Our inventory levels are dropping as is expected this time of year. The good news is that there are less homes on the market now then at this time in each of the two previous years.

The selection for buyers is still good, but it is dwindling. Interest rate dropped to 5% this week. This means that the buyer can get a better payment than last month, or they can buy a little more home. Interest rates have dropped over 20% since earlier this year.

The weather may be cold out there but the market is warm in Eagle River, Alaska.

Call me today for more information.

Eric Bushnell- 907-360-7471

interest rates market conditions real estate eagle river

Alaskan Rentals, What investors should know about Eagle River

Wednesday, December 10, 2008

by Eric Bushnell

By ericbushnell

Do you work with investors? Eagle River Alaska is a great place to own a rental. In our current economic times, buyers are trying to decide whether they should purchase a home or rent. In our area the vacancy rate is 5-6%, and homes rent for approximately $1.00 to $1.20 per square foot.

Military personnel moving to Fort Richardson and Elmondorf AFB are here for 3 to 4 years. In the past they have purchased because of the movement in the market. Now many are looking to rent. They do not think that home prices will rise enough in 3 years that they will be able to sell their home and not have to pay.

For each listing I have 3 out of 4 calls ask if they can rent. Alaska’s economy is fairly stable and land is scarce, we did not see the over building and speculation that other areas saw. Our housing prices are reasonable with the average home in Eagle River being priced at $315,000 for about 1800 sq. ft. townhouse style condos are priced from $218,000 to $235,000. There is a good mix of properties, with a few 4-plexes available in the Anchorage market, Eagle River has very few multi-family units.

If you know someone that is interested in this area call me and I can provide you with a brief overview of our community. If you would like to see the homes for sale, visit my website www.EricBushnell.com. We will pay referrals and I have have someone that can take video of a home for interested investors. Prudential Jack White/Vista Real Estate of Eagle River provides property management services for out of town investors, and property owners whom do not wish to manage their own properties.

realtors Prudential investors rental

Why do you work there?

Wednesday, December 10, 2008

by Eric Bushnell

By ericbushnell

Has anyone ever asked you why you work there? You know, where you’re currently working. They do know that you have a choice and that you choose to work there.

Or do you? I mean do you realize that you have a choice? We make choices in life everyday. Sometime we choose to make changes and many times we choose not to act. The later is sometimes the most prudent. However when it comes to you place of employment, non action can come from fear, fear of change.

What if you make a bad decision?

What if it goes wrong?

What if you do not fit in?

What if ……..

This is important to understand; the only person that can make you successful is yourself. Without personal motivation, having someone else kicking you in the butt will not make you hugely successful.

What is important is making sure that you work in a place that has like kind people, people that understand their success starts with themselves. A great benefit of a workplace is the sharing of ideas, and this only happens in an environment where no one fears their co-workers because of competitiveness.

This is why I have only worked for one real estate firm, Prudential Jack White/Vista Real Estate of Eagle River. The Realtors in this office work in harmony with each other. If you have a issue any one of them will stop what their doing and assist you. Don’t get me wrong sometimes they do compete with each other, but they compete as family members would. The competition is fair and fun. These Realtors are wonderful and my success is because I was not afraid of change. I left a career that I had been in for 10 years and it was the right choice.

Someone gave me advice one day, and I think it was the best advice I have ever received. It was simple and it was right to the point, and yes, it came from my father-

“ Do not fear the decision, just choose the direction you wish to go and don’t look back.”

I am wandering here, or so it would seem, but my point is this, why do you work there?

If you can not give yourself a good answer, give me call. Prudential Jack White/Vista could always use another energetic, smart, competetive realtor. Don’t be afraid of change.

realtors job choices work place employment Prudential

A Sign of the Times...

Friday, November 28, 2008

by Eric Bushnell

A sign of the times…
November 26, 2008 by ericbushnell

It’s tough out there, we see it and we hear it from everyone we talk to. We hear the bad news on the radio, TV, and in the newspapers. What is one to think? Chicken Little is the sky really falling…

Well, i do believe that history does repeat itself. This generation is making similar mistakes that the previous generations made. The exacts do not really matter, it is that we do not look in the past and make sure we do not repeat our mistakes. The results is that life as we know it is getting harder, and less enjoyable.

I am sure in previous generations there were events that affected every ones lives, just as there is today. The dream of retirement is fading for many who have seen their savings cut in half. This effects everyone, in a recent food drive held in our office I saw the effects first hand. Each of our Realtors donates from their commissions this time of year for several charities; coat drives, United Way, Senior Center, and the local food bank.

The annual food drive is every year just before Thanksgiving, and we do our best to fill the shelves and any open space on the floor. Two years ago we donated approximately 11000 pounds of food, last year 10,000 pounds and this year we only were able to donate 8000 pounds. Our dollars just don’t go as far. The cost of groceries in our area has really climbed, and we stock them up with canned goods. Canned goods have almost doubled over last year because of freight cost (oil).

We will continue to do what we can for those that are struggling, and there is more this year then last. please do what you can, if it’s only $20 make sure you help.

Let’s make that a sign of the Times……

Advertising, PPC is this the future, or just another cost

Wednesday, October 29, 2008

by Eric Bushnell

I have been advertising and market in print and online for 15 years. I have seen many types of advertising and been to the seminars. I've read the books on horizontal vs. vertical advertising, but the question always comes up. Is it productive and is the ROI (return on investment) better than any other campaign.

I made a switch on my website after four years and have a new flavor, site works good is easier to update, and I must say I look good. Take peak, www.EricBushnell.com,the site is not real sticky but it is better than my old site of 4 years. I did notice that I am getting less people to the site, but they look at more pages. This is good. The site definitely provides me with more basic leads, although still hard to convert. Therefore, I drip on them forever. Hope the like it, not many cancel.

Now I am looking at PPC (pay per click),my website already has a great natural placement. I started by submitting to the Open Directory Project and then make sure my tags and descriptions are good. The PPC angle is a consideration do to our local rag charging so much money for simple line ads. I want any amount of info and I am at $75+for a day and a short two or three line of ad is the same over a couple of days. Add $10 to link it to their website and then it gets lost or the lead harvested and sent to someone else.

I am trying PPC and looking at it in two different lights. I am going to run a simple campaign linking to my site, to the home page with one ad and to the CMA section with another. I am also considering specific home PPC ads that link to the homes info on the site. I believe this is a fancy line ad in the now new media online. The newspaper just doesn't seem to get it. Homes and Land, as well as the Real Estate Book do a much better job but still do not deliver a big bang for the buck. Back to the ROI.

I have started with Google Adwords and am looking at the MSN site, Yahoo was difficult to get information, and with their certain demise in a couple of years I think that Google is the best place. Heck Google had better advertising links on Yahoo then Yahoo did, that says something. I also liked the tracking system at Google, and I did not have to pay someone $300 a month to write a 70 character ad, by the way if anyone would like to have me write a 70 character ad for them, I only charge $250, give me a call 907-360-7471.

Please comment on what PPC campaigns have worked for you, please which did not work, but only comment on the ones that didn't work if you actually worked the leads. I don't want to hear the story how you paid the money and got these hits but never called the people back. I've heard this story too many times from the Realtors here locally.

Thank you,

Eric Bushnell, Realtor

Associate Broker

Sales Manager

Prudential Jack White/Vista Real Estate of Eagle River

Advertising PPC

Summer?

Monday, July 21, 2008

by Eric Bushnell

Many wonder whether or not summer will come to Eagle River Alaska. My wife asks this question every time we watch the evening news together. I think I saw a glimpse of sunshine over the weekend.

Our summer weather may not be bright and sunny, however our Real Estate market this summer has shown several bright and sunny spots. Homes continue to sell as they come on the market. In fact several nice properties have received multiple offers.

What I am seeing is that condition as well as price is very important. If a house needs work, price alone will not get it sold. A home needs to be clean with no apparent problems. If selling your home is a current consideration, get a home inspection before you put the home on the market.

A home inspection will allow you to see any deficiencies and fix them prior to a buyer walking in. Many buyers are coming to Alaska from an area that may not have a level market like ours. They're very demanding. They may have been beat up selling a home prior to arriving here and they're not going to let it happen again.

Make sure your home is clean, dusted and the lawn is mowed. Make sure that half million dollar home looks like a million dollars. If it measures up well against the competition you will not be disappointed.

Hey, I think I see a ray of sunshine.....

Bear Paw July 12-14

Wednesday, June 25, 2008

by Eric Bushnell

Eagle River's big event is the annual Bear Paw Festival. This is a wonderful opportunity to see friends and enjoy the wonderful summer in Alaska. The downtown area is closed on Business Blvd for different events the Grand Parade (our favorite), Slippery Salmon Race, and the final event the I-did-a-duck race.

There will be vendor on-site and carnival rides, a mini Renascence festival, and a Oder-Eaters smelly shoe contest. Kids and adults really have a great time.

At Prudential we have already started construction of our float, and plan to wow the crown once again. Topping the full length Pirate ship will be tough, but we're up for the challenge. Parade time is 11 am and the route is down Auxiliary Road to Eagle River Loop, and then down Business Blvd. This is a must see.

I will then be out to see the events, and on Sunday will be cooking in the Salmon Cook off. I am not sure whether to submit a Salmon Chowder or possibly a Salmon dish that is sure to please. I hope to see my friends at Bear Paw, I will be at the Idiaduck ticket booth selling race tickets for Rotary on Friday night from 6-8.

Hope to see you there.