How Earthquakes Affect Real Estate in Alaska
The aftershocks of last November’s earthquake aren’t the only thing still affecting us here in Alaska. Many people are dealing with not only emotional trauma and PTSD, but also the time-consuming and stressful tasks associated with inspecting and/or repairing homes that were damaged during the quake. As real estate professionals with almost 30 years of experience in the Anchorage, Eagle River, Wasilla and Mat-su Valley area, we’re often asked how earthquakes affect real estate, so we thought it would be useful to share it on the website here too.
November’s 7.0-magnitude earthquake did not take any lives, thankfully, but it did result in a large amount of structural damage to roads, homes and other buildings throughout the area. State officials estimated 3,000 to 5,000 homes were affected in the immediate area of the Mat-su Valley. Even though this was Alaska’s second-largest quake, the destruction level was actually much less than expected, mainly the result of our region’s preparations and resiliency when it comes to natural disasters.
If you’re selling a home and there’s an earthquake, expect to have a very quiet spell for a couple months after the quake. Even if your home does not have any damage, buyers need the time to assess their feelings about living in the area, talk to their Realtors, and get over the initial shock of the quake. Don’t take this personally, as it’s an across-the-board reaction and perfectly normal. If you own an older house, built in 1980 or earlier, it may not be up to the latest building codes. If there’s no visible damage, it’s a good idea to talk to a local Realtor and work with a professional inspector to asses any hidden damage or areas that are at risk. If you can show potential buyers that you have made safety and building code improvements, as well as official inspection reports backing that up, your home will be much more attractive on the market.
If you’re buying a home where a recent earthquake happened, don’t be frightened away. First, be sure to call upon the services of a qualified home inspector. If you had a home inspected before the quake, it’s worth the extra fee to have a post-inspection done as well, even just for your peace of mind. Second, unless you are transferring for the military or work and on a tight schedule, you might want to take a breath and wait a while until the aftershocks calm down. A local Realtor will be able to advise you of the state of the area and the real estate if you have any questions.
If you own a home in an earthquake area, in addition to having a professional inspection of your home to assess damage or risks, you might want to consider earthquake insurance. It’s not typically included as a part of homeowner’s insurance, so be sure to talk to your Realtor for advice to know what’s right for you.
Just like the rest of Alaska, we are confident that the local real estate market will survive the aftereffects of the earthquake and thrive as we always have. The people and homes of Alaska – just like our beautiful state – are strong, resilient and will come through this just fine. So if you’re looking to buy or sell a home in the area, or are a resident with questions about how the earthquakes affect real estate and our housing market locally, we can help. Just give us a call or stop by the office, we’re here for you!
