Alaska Real Estate Glossary: Terms Every Buyer & Seller Should Know
Alaska Real Estate Reference · 2026
From your first offer to your closing day, Alaska real estate transactions involve terms and concepts that aren't always self-explanatory — and several that are specific to Alaska and don't exist anywhere else. Bookmark this page and refer to it throughout your transaction.
A Alaska-specific terms marked ★
★ Alaska-Specific
AHFC — Alaska Housing Finance Corporation
The state agency that administers Alaska's most powerful homebuyer programs, including First Home Limited (below-market interest rate for income-qualifying first-time buyers) and AHELP (down payment assistance). AHFC programs are only available through AHFC-approved lenders — not through banks or credit unions that haven't been approved. Checking AHFC eligibility at ahfc.us should be the first step for any Alaska first-time buyer. Our first-time buyer checklist covers every AHFC program in detail.
★ Alaska-Specific
AHELP — Alaska Housing Enhanced Loan Program
An AHFC down payment and closing cost assistance program delivered through nonprofit and government partners. Assistance may be a grant, forgivable loan, or deferred payment. Can be stacked on top of AHFC's First Home Limited rate discount. Homebuyer education required.
Appraisal
An independent professional assessment of a property's fair market value, ordered by the lender to confirm the home is worth the amount being borrowed. If the appraisal comes in below the purchase price, the buyer must renegotiate, cover the gap in cash, or exit using the appraisal contingency. In Alaska, rural and acreage properties can be harder to appraise due to fewer comparable sales (comps).
Appraisal Contingency
A contract clause that allows the buyer to exit the purchase (and recover their earnest money) if the home appraises below the agreed purchase price. Standard in most Alaska transactions and important protection in an appreciating market.
ARM — Adjustable-Rate Mortgage
A mortgage with an interest rate that changes periodically after an initial fixed period (e.g., 5/1 ARM = fixed for 5 years, then adjusts annually). Less common in Alaska's market than 30-year fixed-rate loans. Buyers using AHFC programs almost always use fixed-rate products.
As-Is Sale
A sale in which the seller makes no repairs and the buyer accepts the property in its current condition. Disclosure is still mandatory in Alaska even in as-is sales — sellers must complete the Residential Real Property Disclosure Statement. Buyers still have the right to inspect; they simply cannot demand repairs.
Assessed Value
The value assigned to a property by the borough assessor for property tax purposes. Ideally reflects fair market value but may lag or deviate from actual sale prices. The basis for calculating annual property taxes. If you believe your assessed value is too high, you can appeal to your borough assessor. See our Alaska property tax guide for the full appeal process.
B
★ Military Term
BAH — Basic Allowance for Housing
Monthly non-taxable housing allowance paid to military service members who don't live in government quarters. At JBER, E-5 with dependents receives approximately $2,874/month in 2026 — the 8th highest BAH among all joint bases. BAH can be grossed up 25% for VA loan qualification because it is non-taxable income. See our JBER military buyer guide for current BAH rates.
Buyer's Agent
A licensed real estate agent who represents the buyer's interests exclusively in a transaction. Has fiduciary duty to the buyer — not the seller. After the August 2024 NAR settlement, buyers sign a written Buyer Agency Agreement before touring that specifies compensation. See our Alaska buyer's agent guide.
Buyer Agency Agreement
A written contract between a buyer and their real estate agent, signed before touring homes, that specifies the agent's services and compensation structure. Required following the August 2024 NAR settlement. Compensation is negotiable.
C
Clear to Close (CTC)
The lender's final approval notification confirming all underwriting conditions have been met and the loan is approved for funding. Issued shortly before closing day. The moment buyers and sellers have been waiting for.
Closing
The final stage of a real estate transaction in which all documents are signed, funds are transferred, and ownership legally changes hands. In Alaska, closing takes place at a title company — not a law office. The signing appointment typically takes 60–90 minutes. The deed is recorded the same or next business day, at which point ownership transfers officially.
Closing Costs
Fees and expenses paid at closing beyond the down payment. Buyers typically pay 2–5% of the purchase price in closing costs; sellers typically pay 5–9% total (including commissions). Alaska has no state transfer tax — a meaningful advantage over states like Washington. For the complete line-item breakdown, see our Alaska closing costs guide.
Closing Disclosure (CD)
The final, legally required document provided by the lender at least 3 business days before closing, showing all final loan terms, fees, and the exact cash-to-close amount. Must be compared carefully to the original Loan Estimate — some fees cannot change, others have limits.
CMA — Comparative Market Analysis
A data-driven report prepared by a real estate agent comparing recent sales of similar properties to estimate a home's market value. The primary tool for pricing a listing and evaluating whether an asking price is reasonable. Should use sales from the last 90 days in the same sub-market.
Contingency
A condition written into a purchase contract that must be met for the sale to proceed. If the condition isn't met, the buyer can typically exit and recover their earnest money. Common Alaska contingencies: inspection, financing, appraisal, and well & septic (for rural Mat-Su Valley properties).
★ Alaska-Specific
COSA — Certificate of On-Site Systems Approval
A Municipality of Anchorage requirement for properties with on-site septic systems before they can be sold. The COSA inspection verifies the septic system and well (if applicable) meet health and function standards. The Municipality charges $526 for review and issuance. The process takes 2–4 weeks — sellers should schedule before listing, not after going under contract. Mat-Su Borough does not require a COSA but lenders typically require septic and well inspections.
Counter Offer
A seller's response to a buyer's offer that modifies one or more terms (price, contingencies, closing date, concessions) rather than accepting or rejecting outright. Creates a new offer that the buyer must then accept, reject, or counter again.
D
Days on Market (DOM)
The number of days a listing has been active on the MLS before going under contract. A key market indicator — low DOM signals strong demand; high DOM may indicate overpricing or condition issues. Anchorage homes averaged 13 days on market in March 2026. June is historically Alaska's fastest month, with homes averaging just 47 days total sale timeline.
Deed
The legal document that transfers ownership of real property from seller to buyer. In Alaska, the most common type is a Warranty Deed, which provides the buyer with the seller's guarantee that title is clear. Recorded with the borough after closing.
Deed of Trust
The document that gives the lender a security interest in the property as collateral for the loan. Creates the lien against the home. Alaska follows a non-judicial foreclosure process through a trustee — meaning lenders can foreclose without going to court if a borrower defaults.
DTI — Debt-to-Income Ratio
The percentage of a borrower's gross monthly income that goes toward debt payments (including the proposed new mortgage). Most conventional loans require a DTI of 43% or below; AHFC programs follow the primary lender's underwriting standards. A high DTI is the most common reason loan approvals are denied or delayed.
Dual Agency
When a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. Legal in Alaska but creates an inherent conflict of interest — the agent cannot fully advocate for either party. First-time buyers should have their own dedicated buyer's agent.
Due Diligence
The process of thoroughly investigating a property before purchase — including inspections, title searches, disclosure review, and financing confirmation. In Alaska, due diligence includes Alaska-specific items: heating system service records, COSA status, well and septic testing, utility bills, and earthquake insurance quotes.
E
★ Alaska-Specific
Earthquake Insurance
A separate insurance policy covering earthquake damage, required by most Anchorage lenders. Does not exist as a standard requirement in most other states. Annual premiums typically range from $600–$1,800 depending on home age, construction type, and location. Get quotes immediately after going under contract — not the week before closing.
Earnest Money
A good-faith deposit submitted by the buyer within 3 business days of offer acceptance, held in escrow by the title company. Standard in Alaska is 1–3% of the purchase price. Applied toward the down payment at closing. Forfeited if the buyer backs out without a valid contingency reason after contingencies are removed.
Encumbrance
Any claim, lien, charge, or liability attached to a property that may limit the owner's ability to convey clear title. Common types: mortgages, tax liens, easements, and judgment liens. Discovered during the title search.
Escalation Clause
A contract provision that automatically increases the buyer's offer in set increments above competing offers, up to a defined ceiling. Used in multiple-offer situations to stay competitive without unnecessary overbidding. Your agent advises when this tactic is appropriate.
Escrow
A neutral third-party account (typically held by a title company in Alaska) where funds and documents are held until all conditions of a transaction are met. Earnest money, buyer's down payment, and lender funds all flow through escrow before being disbursed at closing.
F
FHA Loan
A mortgage insured by the Federal Housing Administration, requiring as little as 3.5% down with a 580+ credit score. The 2026 FHA loan limit in the Mat-Su Borough and Anchorage is $557,750 — covering most Southcentral Alaska purchases. Requires MIP (mortgage insurance premium) upfront and annually. FHA also accepts PFD income as a documented down payment source.
Fiduciary Duty
The legal obligation of a real estate agent to act in their client's best interest. A buyer's agent has fiduciary duty to the buyer; a listing agent has fiduciary duty to the seller. In dual agency, this duty is compromised for both parties.
★ Alaska-Specific
First Home Limited (AHFC)
AHFC's most valuable program — a below-market interest rate (0.25–0.75% below conventional) for income-qualifying first-time buyers purchasing a primary residence. On a $400,000 loan, the rate discount saves $35,000–$65,000 over 30 years. Income and purchase price caps apply; only available through AHFC-approved lenders.
Fixed-Rate Mortgage
A mortgage with an interest rate that never changes over the life of the loan. The most common loan type in Alaska — 30-year and 15-year fixed are standard. Provides payment certainty, which is especially valuable in Alaska where total ownership costs already have significant variables (heating, maintenance).
G
Good Faith Estimate (GFE)
Replaced by the Loan Estimate in 2015. See: Loan Estimate.
Gross-Up (BAH)
For military borrowers using VA loans, non-taxable income such as BAH can be increased by 25% when calculating qualifying income. An E-7 receiving $2,600/month in BAH counts as $3,250/month of qualifying income. This significantly increases purchasing power for JBER service members.
H
Home Inspection
A professional examination of a property's condition by a licensed inspector, paid for by the buyer. Never waive in Alaska — the state's older housing stock and climate create findings (heating system failures, roof snow damage, foundation freeze-thaw movement) that can cost tens of thousands. Standard Alaska inspection: $450–$650. Rural properties add well flow testing ($200–$400) and septic inspection ($150–$300).
★ Alaska-Specific
HOP — Home Opportunity Program
Administered by Alaska Community Development Corporation. Provides a zero-interest second mortgage up to $30,000 with $10,000 conditionally forgivable over five years. Also covers up to $3,000 in closing costs. Stackable with AHFC rate programs. Requires HUD-approved homebuyer education.
HOA — Homeowners Association
An organization in a planned community or condominium that enforces rules and collects fees for shared maintenance. Alaska HOAs vary widely — from condo associations covering snow removal, exterior maintenance, and utilities ($200–$500/month) to subdivision HOAs with minimal fees ($20–$50/month). Always review HOA financials and reserve fund status before purchasing in an HOA community.
I
Inspection Contingency
A contract clause that allows the buyer to request repairs, credits, or exit the transaction based on inspection findings, within a specified period (typically 10–14 days in Alaska, or 5–7 days in competitive markets). The most critical buyer protection in Alaska real estate. Never waive — shorten the period instead.
Interest Rate
The annual percentage charged by a lender for borrowing money, expressed as a percentage of the loan amount. As of June 4, 2026, the 30-year fixed national average is 6.48% (Freddie Mac). AHFC First Home Limited borrowers may access rates near 5.7–6.1% — a meaningful savings over conventional products.
L
Listing Agent
The licensed agent who represents the seller and lists the property on the MLS. Has fiduciary duty to the seller — not the buyer. Buyers should never use the listing agent as their representative; doing so creates a dual agency conflict.
Loan Estimate (LE)
A standardized 3-page document provided by the lender within 3 business days of a loan application, showing estimated loan terms, monthly payment, and closing costs. Compare carefully to the Closing Disclosure before signing — some fees cannot increase at all.
LTV — Loan-to-Value Ratio
The loan amount divided by the appraised property value, expressed as a percentage. Lower LTV means more equity. FHA requires at least 96.5% LTV (3.5% down). Conventional loans below 80% LTV (20% down) avoid PMI. VA loans have no LTV restriction for full-entitlement borrowers.
M
★ Alaska-Specific
Mill Rate
The property tax rate expressed as dollars per $1,000 of assessed value. Alaska property taxes are levied at the borough level — there is no statewide property tax. Anchorage: approximately 18–19 mills. Mat-Su Borough: approximately 12.5 mills. To calculate annual tax: (assessed value ÷ 1,000) × mill rate. See our Alaska property tax guide.
MIP — Mortgage Insurance Premium
Insurance required on FHA loans — paid upfront (1.75% of loan amount, rolled in) and annually (0.55–0.85%). Unlike PMI, MIP on FHA loans often lasts the life of the loan. Comparing FHA (with MIP) to VA (no PMI) is an important calculation for eligible veterans.
MLS — Multiple Listing Service
The Alaska Multiple Listing Service database where licensed agents list properties for sale. Full MLS access — including price history, days on market, and listing notes — is only available to licensed agents. Zillow and Redfin pull from MLS data but are often delayed or incomplete.
Multiple Offer Situation
When a seller receives more than one purchase offer simultaneously. Common in Anchorage, Eagle River, and Palmer during peak season (May–July). Sellers may set an offer deadline, request best-and-final offers, or negotiate with individual buyers. For buyer strategy, see our Alaska negotiation guide.
N
Net Proceeds
The amount a seller actually receives after all selling costs (commissions, title fees, mortgage payoff, prorated taxes) are deducted from the sale price. Alaska's no-state-transfer-tax advantage means sellers keep more than in most states. Your agent should prepare a net proceeds estimate before you list.
Non-Judicial Foreclosure
Alaska's foreclosure process, conducted through a trustee rather than through the courts. Allows lenders to foreclose without filing a lawsuit, which is faster than judicial foreclosure states. Relevant for sellers who may be considering a short sale or buyers purchasing distressed properties.
O
Owner's Title Insurance
Insurance protecting the buyer against future title defects (liens, errors, fraud) discovered after closing. One-time premium paid at closing — typically $700–$1,200. In Alaska, it is common for the seller to cover owner's title insurance as part of the transaction. Highly recommended even when not required.
P
★ Alaska-Specific
PCS — Permanent Change of Station
Military transfer orders moving a service member to a new duty assignment. JBER's PCS rotation peaks May through August each year, creating a concentrated wave of motivated, pre-approved VA loan buyers in the Anchorage and Eagle River markets — one of Alaska's most significant structural demand drivers.
★ Alaska-Specific
PFD — Permanent Fund Dividend
Annual dividend paid to qualifying Alaska residents from investment earnings of the Alaska Permanent Fund. Approximately $1,000/person per year. A family of four receives approximately $4,000/year. Requires one full calendar year of Alaska residency. Must be applied for annually at pfd.alaska.gov between January 1–March 31. AHFC and FHA programs accept PFD income as a documented down payment source.
PMI — Private Mortgage Insurance
Insurance required on conventional loans when the down payment is less than 20%. Typically $100–$400/month depending on loan amount and credit score. VA loans have no PMI — one of the VA benefit's most significant monthly savings advantages.
Pre-Approval
A lender's conditional commitment to loan a specific amount based on verified income, credit, and assets. A fully underwritten pre-approval (vs. a soft pre-qualification) carries significantly more weight with Alaska sellers. Required before making a competitive offer in Anchorage, Eagle River, or Palmer's fast-moving market.
Promissory Note
The borrower's formal written promise to repay the mortgage loan. States loan amount, interest rate, payment schedule, and consequences of default. The most legally significant document signed at closing.
★ Alaska-Specific
PUR-102 Inspection
An inspection required for AHFC and FHA-financed purchases, covering health and safety, structural integrity, and habitability standards in addition to standard buyer inspection items. Adds 1–2 weeks to the closing timeline compared to conventional loans. Must be scheduled early in the contingency period — not added as an afterthought.
Q
Qualifying Income
The income a lender uses to calculate how much mortgage a borrower can afford. For military borrowers, non-taxable BAH can be grossed up 25%. For self-employed buyers, uses 2-year average of business income. For rental property owners, a portion of rental income may be counted.
R
Rate Lock
A lender's guarantee that the interest rate will not change for a specified period (typically 30–60 days) while the loan is being processed. In Alaska's market, locking in when rates improve is advisable — the 30-day window covers most conventional closings.
★ Alaska-Specific
Required Residential Disclosure Statement (AS 34.70)
Alaska's mandatory seller disclosure form, required before a buyer makes a written offer. Covers heating system, insulation, roof condition, water/septic, structural issues, fuel storage, environmental hazards, and access. Failure to disclose known material defects creates legal liability even after closing.
ROV — Reconsideration of Value
A formal request to an appraiser to reconsider their valuation based on additional comparable sales data submitted by the buyer or buyer's agent. The first step when an appraisal comes in below the purchase price. The appraiser is not required to change their value but must consider new evidence.
S
Seller Concession
When the seller agrees to contribute to the buyer's closing costs as part of the purchase agreement. Limits by loan type: FHA up to 6%, VA up to 4%, conventional 3–9%. Most useful when a seller is motivated (longer DOM, off-peak season, or when negotiating after inspection). Reduces seller's net proceeds but keeps the deal alive.
Septic System
An on-site sewage treatment system used by properties not connected to municipal sewer. Common in the Mat-Su Valley and rural Alaska. Requires regular pumping (every 3–5 years), testing at sale (COSA in Anchorage, lender-required inspection in Mat-Su), and proper maintenance. A failing septic system can cost $10,000–$30,000 to repair or replace.
★ Alaska-Specific
Senior Exemption (Property Tax)
Alaska property tax exemption for homeowners age 65+ (or surviving spouses age 60+) who have been Alaska residents for at least one year and own/occupy the home as their primary residence. Exempts up to $150,000 of assessed value — saving approximately $2,775/year in Anchorage and $1,875/year in Mat-Su. No income limits. Apply with your borough assessor before the deadline (typically January–March).
T
Title
Legal ownership of a property. "Clear title" means no liens, disputes, or encumbrances against the property. The title company performs a title search before closing to confirm clear title, then issues title insurance to protect against any future claims.
Title Company
In Alaska, the title company manages the entire closing process — holding escrow funds, performing title searches, coordinating document signing, and recording the deed. Alaska does not require an attorney for real estate closings. Common Alaska title companies: Matanuska Title, First American, Stewart Title.
Title Insurance
Insurance protecting against defects in the title (liens, errors, fraud) discovered after closing. Two types: lender's title insurance (required by lender, protects the lender) and owner's title insurance (optional but strongly recommended, protects the buyer). One-time premium paid at closing.
U
Underwriting
The lender's process of verifying all financial documentation and evaluating risk before issuing final loan approval. The underwriter reviews income, employment, credit, assets, appraisal, and title. "Clear to close" is issued when all underwriting conditions are satisfied.
USDA Loan
A zero-down-payment mortgage for income-eligible buyers in eligible rural areas. Parts of the Mat-Su Valley and outer communities qualify. Eligibility depends on the specific property address — check the USDA eligibility map for each property individually.
V
VA Loan
Mortgage benefit available to veterans, active duty service members, and surviving spouses. Zero down payment for full-entitlement borrowers with no VA-imposed loan limit in 2026. No PMI. Competitive rates typically 0.25–0.75% below conventional. Assumable — a major advantage when selling at a future PCS. VA funding fee applies (1.25–3.3%); exempt for veterans with service-connected disability. See our JBER military guide.
Veteran Exemption (Property Tax)
Alaska property tax relief for veterans with a 50%+ VA disability rating. Exempts up to $150,000 of assessed value in most boroughs. 100% disabled veterans in Anchorage may qualify for full exemption. Apply with your borough assessor with VA disability rating documentation.
W
Walk-Through (Final)
A buyer's inspection of the property the day before closing to confirm agreed repairs were completed, no new damage occurred, the seller has vacated, and the heating system is operational. The last opportunity to raise concerns before ownership transfers. In Alaska, specifically test the heat even in summer — a non-functioning furnace discovered at final walk-through is a serious issue.
Well
A private water supply drilled into the ground for properties not connected to municipal water service. Common throughout the Mat-Su Valley and rural Alaska. FHA, VA, and AHFC loans require water quality testing and minimum flow rate confirmation. A failed well can require re-drilling at a cost of $10,000–$30,000+.
Wire Fraud
A growing crime targeting homebuyers at closing — criminals intercept email threads and send fake wire instructions with altered account numbers. Always verify wire instructions by phone, using a number you look up yourself, before sending any funds. Funds wired to the wrong account are almost never recoverable. Never act on wire instructions received via email alone.
Questions about any of these terms in the context of your transaction? Reach out to Allana for plain-language guidance specific to your situation — buying, selling, or just starting to explore. Browse our full library of Alaska real estate guides at allanaakproperties.net.
Sources & References
Definitions informed by: Alaska Housing Finance Corporation (ahfc.us), Municipality of Anchorage Community Development Department, Alaska Statute AS 34.70, Freddie Mac PMMS, Alaska MLS, Alaska Home HQ, and Allana Lumbard's professional transaction experience in Southcentral Alaska real estate. Data current as of June 2026.
This glossary is for informational purposes only and does not constitute financial, legal, or real estate advice. Definitions reflect general usage and Alaska-specific context as of June 2026 — always verify program details, rates, and requirements with a licensed Alaska real estate professional, AHFC-approved lender, and relevant agencies.
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