In case you missed it… it was a excellent fiesta this year. The weather was good for the most part and we has a couple great mass ascensions as you will see in this video. I will say our dog is glad it’s over… she is scared to death of the balloons and hides under the bed when they fly over the house. Enjoy this video… they did a great job! Tego
Why homes don’t sell and prepping your home for sale.
Albuquerque Real Estate Talk Oct 26 2013
Tego: Good morning and welcome to 95.9 FM and AM 1600 KIVA the Rock of Talk. This is Albuquerque Real Estate Talk on Small Business Saturday here on KIVA Radio. This is Tego Venturi with Keller Williams Realty and the Venturi team, of course. I’m with Tracy Venturi.
Tracy: Good morning, everybody.
Tego: Thanks for that bumper music. I decided I wanted to hear some Police today because it brings me back to my high school days. I thought that was the good choice. What do you think?
Tracy: Sure. It was great.
Tego: This week, couple of things, we’re going to go over some of the market data, just kind of the latest and greatest on what’s going on in residential real estate in Albuquerque. We have a question of the week. We’re going to talk about new versus existing homes and what are the trade-offs and things to consider there. Tip of the week is lowering your heating bill. Guess what? It’s getting cold out there.
Tracy: Yeah, it has shifted a little bit. We’re seeing the leaves change. We’re not in the Midwest where you have to really button down your house extensively, but there are some things that are fairly simple that will make a difference.
Tego: Tracy, you and I grew up in the Midwest—me in Michigan and you in Minnesota. It’s different because we don’t get the super cold here. The way you prepare for winter there is a little bit different here, but there are definitely some things you can do to make your home more efficient. One thing I wanted to start off with here is the Mariposa community out in northwest Rio Rancho. Most people are familiar with the area. It had been around for a while because they had so many TV advertising.
Tracy: Beautiful, beautiful advertising.
Tego: And marketing when they were first going.
Tracy: Gorgeous scenery there in Rio Rancho.
Tego: Of course, it got hit with the housing downturn just like so many other places. They were just getting going when the market turned. They finally have come full circle. There’s an event out there this Sunday we wanted to bring up. It’s going to be a community open house. There’s six, seven houses that are going to be open Sunday afternoon between 1 and 4. Price ranges from 250,000 up to 950,000.
Tracy: Right. There’s some nice builders still building there. I know Twilight Homes last time I was out there is building on that more affordable scale. Then, Sivage Homes is building custom and there are some amazing lots there with views to Santa Fe or the Haynes. It really doesn’t take long. If you’re considering Placitas, Mariposa might be a good option for you.
Tego: If you don’t know where Mariposa is, if you were to go out to Bernalillo and take Highway 550 – no it’s not 44 anymore.
Tracy: 550. It’s been a long time.
Tego: It’s been a long time. Highway 550 out and just go west to Unser, and it’s right there. Beautiful community. If you haven’t been out there, this might be an opportunity to go out, take a look d see some of the homes that are out there. Whole range from 250 up to a million dollar custom homes. It’s a great community
Tracy: Yeah. Maybe we’ll see you there.
Tego: By the way, they have settles lot of news about their taxes and issues there. All of that has been settled
Tracy: Their Public Improvement District was big news for a while. When the downturn came, developer, at one point, just kind of pulled out. It was difficult. We’re happy that the people that live there can enjoy the beautiful homes that they have and move on from that.
Tego: The fear that was there—making an investment out there has gone away now. Good time to take a look. We do have a house for sale out there. Beautiful with a swimming pool. It’s 750,000. It’s up high with beautiful views.
Tracy: It’s a phenomenal property. If you have time to go out there, that’s a special one. It was a parade of homes a few years ago. I remember visiting it as a parade and thinking Wow!
Tego: Yeah, beautiful, custom home for 750,000. It’s amazing for that kind of price.
Market data, Tracy. We’re coming in to the end of October, I guess. Year-to-date, we’re still holding at about 3% average sale price. Average sale price year-to-date is 197,000
Tracy: 3% average sale price
Tego: 3%, excuse me, over previous year. Thank you for correcting me. We got about 3% average sale price increase over last year same period. We’re about 197,000 average sale price in Albuquerque market
Tracy: Again, our numbers are really fairly stable. We’re not seeing huge price increases yet.
Tego: Correct. The place that’s really jumped up is the number of homes sold this year versus last year. About 8,000 homes sold this year versus about 6,700 at the same time last year. So, it’s about 18% increase in the number of residential homes in the Albuquerque area that have sold. The number of homes is up.
Tracy: Just to point out, you said Albuquerque area. So, the statistics, when we quote, it is our home metro area so it goes to blend past the news edge with Moriarty, Placitas, Corrales, Rio Rancho. We’re talking about the big picture.
Tego: Correct. All the east mountains that you mentioned there. In the other statistics that’s kind of interesting is the average days on market for the homes that have sold is at 87 days from the time it goes on the market until–
Tracy: it gets an offer that’s acceptable
Tego: Yup. That’s down from last year this time where it was around 100 days. Everything is going in the right direction.
Tracy: Long with that, last week we talked about real estate investing with Jason Pyke of Prime Lending. It’s interesting because we actually have another house that we have under contract to purchase as a rental property. The interest rates just in the last month for that have come down a quarter of a point, which over the life of a 30-year loan is fairly significant. We’ve seen similar in lending for residential homes. That combined with our prices fairly stable, it’s still a pretty darn good time to be a buying a home.
Tego: Yeah, and I get those once a week, the market interest rate updates and marked rates have actually pulled back just slightly. Interest rates are still crazy good.
Tracy: We expect the whole winter selling season to be a great opportunity to buyers and sellers because a lot of sellers wait until spring to put their homes on the market, so there’s less competition when you put those out there. Chances are, it’s going to get noticed. For buyers, the rates are good, and sellers would like to sell.
Tego: The myth that homes don’t sell during the winter is just that. It’s a myth unless you live in Minnesota maybe. I’m sure there, homes sell too.
Tracy: I think they do.
Tego: We have pretty nice winters here so we can’t complain. Another interesting market statistic we look at this week, Tracy, is we were looking at the zip codes in the Albuquerque area, how many homes are selling in what parts of town and what are the average price ranges and so on. I have some interesting stats there.
Tracy: Before you tell us the stats, did it shake out like you expected when you started doing the analysis?
Tego: It did to a certain extent. It did. The average home price were kind of what I expected. The most expensive area of town when you look at it from an average price standpoint is the zip code 87122 which is North Albuquerque Acres and Sandia Heights. The foothills by the tram, that’s Sandia Heights and North Albuquerque Acres which is very far northeast part of Albuquerque, those are all larger lots just under an acre most of those. Average home price in that area over the last year and a half is 449,000.
Tracy: That’s average sold price
Tego: Average sold price. Yeah. That’s number 1. Number 2 is Corrales from an average sale price standpoint. Corrales is right at 444,000. Number 3 is Placitas at 387,000. I didn’t really have any surprises there the one area I thought would be a little bit higher is 87111 which is kind of the Central Northeast Heights
Tego: Tanoan, High Desert. Average price in that area was 282,000. Of course, our market average in Albuquerque is 197 like I said. Those are the higher areas. What do you think the number 1 zip code for the number of homes sold is? Kind of putting you in a spot here
Tracy: in Albuquerque proper?
Tego: Well, the whole metro area
Tracy: Maybe 87114, the West Side
Tego: Close. 87124 actually.
Tracy: That’s Rio Rancho. Rio Rancho South
Tego: South Rio Rancho. Southern half of Rio Rancho.
Tego: Yup. 1,400 homes sold in this period that we looked at which is about a year and a half. And 87114 which is West Side, Paradise Hills, Taylor Ranch, Ventana Ranch. Not Taylor Ranch, you’re right.
Tracy: Cottonwood Mall
Tego: Cottonwood Mall area.
Tracy: Which is interesting because homes, that’ the trade-off. A lot more home sales activity going on there, but we’ve got intel where it’s right there. We got some major employers in Rio Rancho so we are seeing more homes selling there which is great especially for people who need to sell.
Tego: I think if you look at the metro Albuquerque area as a whole, West Side, Northwest Albuquerque is definitely more bang for the buck than the Northeast Heights. Would you agree?
Tracy: Yeah, and that will tie in with what we are going to talk about after the break. That is new houses. We are going to talk about benefits of buying new versus buying an older home. Part of that will play into the West Side home sales.
Tego: Good tie-in there, Tracy, because after the break here, we are going to talk about new versus existing and some of the trade-offs there d pluses and minuses. We also have little tip for the week on your household heating bill. We’ll get into that.
Tracy: You can call us 9336881. If you have a question, you want to talk real estate, we’d be more than happy to hear from you. Our website is www.wlecomehomeabq.com. Let us know how we can help.
Tego: Great. We’ll take a break here. We’ll be back in a few minutes and talk about new versus existing homes.
Welcome back to Albuquerque Real Estate Talk on Small Business Saturday at 95.9 FM and AM 1600 KIVA, the Rock of Talk. This is Tego Venturi and Tracy Venturi with the Venturi team of Keller Williams Realty. Tracy, if somebody wants to talk to us about real estate, selling a home, buying a home or just talk about real estate in the Albuquerque area, how do people reach out to us?
Tracy: First of all, it’s exciting to hear you say that because we love to talk about real estate. We can be reached from our website, via phone, whatever works best for you. Our phone number is 9336881. You can check us out on the web at www.welcomehomeabq.com . We have a really great website for both buyers and sellers. Buyers really like the ease of doing a home search on it. We try to make it as user-friendly as we can. Check it out.
Tego: We’ve just been doing some upgrades there, some great map searches, a lot of different ways to do home searches, find homes for sale in the Albuquerque area.
Tracy: And to pinpoint some of the things that are important is you can really customize your search. Obviously, we would love to do that search for you. Love to take you and show houses. I was showing houses yesterday. It rained a little bit on us in the morning, but it was awesome. That’s one of my favorite things is to show houses. We found a great gem for this particular family, so that’s always rewarding.
Tego: The question that came up this week, Tracy. Should I buy a new or should I buy an existing home. We put together this list. We actually borrowed it from some people, but we kind of added our own things. Some of the advantages of buying new versus existing – not really versus, but the advantage of new and the advantages of existing. Give us a rundown. To buy a new home, there’s some great new home neighborhoods in Albuquerque. Great builders. What are some of the advantages of buying a new home?
Tracy: First, I want to say yes. Realtors work with home buyers to help them buy new. So, if you see D.R. Horton. Sentex, Paul Tee, Sivage Thomas. Oops, Sivage Homes.
Tego: Sivage Homes, yeah.
Tracy: Different builders, even custom builders, they work with realtors. Oftentimes, we bring a lot of value because we know what’s really important. But general, new homes. You get a new home. You get peace of mind knowing it’s neat and clean. Nobody’s been in the shower before. The carpet’s clean.
Tego: You get the ‘new home’ smell.
Tracy: Yeah. You get the ‘new home’ smell. Other things. Generally, the master suites are a little more lavish these days than older homes. Older homes, you might find a single sink in the master, but in the master of a new home, it’s probably going to have double sinks and the shower, tub.
Tego: Yeah, it does seem like the master bathrooms in newer homes tend to be larger than homes 20 or 30 years ago, for sure.
Tracy: Yeah. Then the big one. Energy efficiency, of course. The Green Code in Albuquerque changed about 3 years ago. Houses built since then are significantly more energy efficient. That makes it a lot more comfortable. Your utility bills are less. The house will be a little quieter and more sound.
Tego: It’s amazing in 5 years, 10 years how much more efficient the homes are.
Tracy: Yup, it is. The other thing that’s a little bit different in new home versus an older home is the layout of the home. They tend to be more open these days. You kind of got the great room concept going on a lot more with the kitchen, dining, living are somewhat more integrated or in view shot of each other. I think back to the Princess Jeanne neighborhood, which is much loved here. I remember when we were at the Smithsonian in Washington, there was a replica of the Princess Jeanne house talking all about how aggressive that was before its day.
Tego: 1,050 sq. ft. How many of those homes are 1,050 sq. ft?
Tracy: A lot of them. But one of the things they were touting was the kitchen was very separate and closed off so that the wife could do her duties in the kitchen. It’s a little bit different from how.
Tego: You can’t talk like that these days.
Tracy: No, but it’s interesting because that’s an evolution that now, the kitchen is where the people hang out. It used to be kind of off-limits. Obviously, you get the builder’s warranty. Everything is new. Perhaps a lot less maintenance costs your first few years of owning.
Tego: Yeah. Some of the builders – you know this – they have their own in-house lenders or lending partners. Sometimes, the new home builders can kind of do some things with financing that you may not be able to do elsewhere. Is that true?
Tracy: That is true. It depends on each builder. You realtor can really help walk you thru what the builders have the programs that will work best for you. Some of them, they cover all the loan costs. You still might be able to choose your lender or use their lender. But all you have to come up with is your down payment. If that’s what you need, you got just enough for your 3 ½% down but not the loan fees, we can help with that.
Tego: Sure. What parts of town are the new homes being built for the most part right now, Tracy?
Tracy: Big picture. They’re still building in Voltera by Kirkland Air Force Base kind of at the south end of Wantabo. It’s a lovely community. Beautiful homes. The west, northwest in West Side Storm Cloud, Boulders, Ventona Ranch. The Montecito area at the end of Montano. Southwest we still have some great communities in Anderson Hills and that area. Then Rio Rancho, still a lot of great building going on in Rio Rancho. There’s a little bit going on in Las Lunas but not a lot.
Tego: For the most parts, the new construction is kind of outskirts, to be honest. There’s not much in the Northeast Heights. A few little projects here and there, but not much. Let’s talk about that. The older home and some of the advantages of looking at an older home. What do you get if you want to get an existing or an older home?
Tracy: Sure. There’s a lot of great reasons why an older home might be right for you. A lot of it might have to do with neighborhood or location. A lot of the older homes might be closer to work or in a neighborhood where you may already be confortable or maybe you grew up in this area of the Northeast Heights and you already know and love the shops and restaurants and things there. Sometimes, the older neighborhoods and houses have bigger yard or fully landscaped yards, which a lot of times new homes don’t come with. Sometimes, they have more charm. Sometimes, they have different features especially older houses. They can have really great character like the [0:19:28]. I can think of some great wood floors and little nichos and cozy alcoves and things like that,
Tego: More personality because with the newer homes especially if we’re talking with production builders, I don’t think it’s unfair to say that they’re somewhat cookie-cutter and you’re not going to get the same kind of character and personality you would get in some of the existing home neighborhoods. Is that fair or am I being unfair?
Tracy: I wouldn’t say that. I’d say it depends on the builder. I think there’s some of the new home builders that are doing little touches that are really special. Some of the other things when you looks for an older home, like I said I was showing Northeast Heights Homes yesterday and I saw a couple of awesome renovations where somebody –hopefully, someone lived there and enjoyed it for a while; it wasn’t just to do it for resale. New bathrooms and kitchen and they took advantage of some of the existing charm of the home and then upgraded things. It was really exciting. Some of the yards were really fun. One had a waterfall all the way thru where it had a little stream. It was lovely. Older homes, sometimes the landscaping, location, price.
Tego: Price is interesting because you could, if you’re willing to do a little bit of sweat equity, you are going to have an opportunity to do that with an older home that may need some work. Pretty obviously with new, you’re not going to get that.
Tracy: Yeah. And if you like to do projects and that feeds your soul, then an older home might be just right.
Tego: Thanks, Tracy. It’s interesting. There’s trade-offs obviously on everything. It’s interesting to talk about it and get it on our brains and everybody’s brains. I’ve got a tip of the week.
Tracy: Your tip of the week.
Tego: Tip of the week is saving money on your heating bill. Of course, we were talking about this earlier. We’re from the Midwest. It’s not quite as big of a concern here as people that grew up as kids and walking to the bus stop–
Tego: uphill both says, all that good stuff. A couple of tips here. Turn down your thermostat. That seems like an obvious thing, but study shows that 3% of your heating bills is saved for every degree you set back your thermostat.
Tracy: What about those new high-tech thermostats where they learn your schedule? Those are pretty amazing.
Tego: Yeah, and you can set them up to come on lower at night and set time tables for those.
Tracy: Or you could use your smartphone to adjust your temperature up and down.
Tego: Another one. This one is from the Department of Energy. They did a study and found out that if you have one of your bathroom fans or rain hood
Tego: exhaust hood, you can basically empty your house of all the hot air within one hour. I thought that was interesting. So, keep those things off unless you really need them. keep them on during your shower though. That’s why they’re there. We’ve seen those houses, right Tracy?
Tego: Keep your fireplace damp or close. Close off those rooms that you don’t use very often. Close the vents. Turn down the water heater. It doesn’t need to be over 120°, in fact it’s dangerous. So, it can’t get any higher than that. Keep your heating vents open if you do need them. you do need to get good air circulation if you do have a forced air house.
Tracy: Don’t push your rug over it.
Tego: Exactly. Take advantage of our warm southwest sunshine here. Take advantage if that southern exposure that you have in your house. Open it up during the day, close it up at night and get some of that pass of solar gain. It’s something we have here that we can really take advantage of here in the southwest.
That’s our show for today. We appreciate your listening. Again, this is Tego and Tracy Venturi with the Venturi team of Keller Williams Realty. You can contact us at–
Tracy: (505) 9336881
Tego: and our website is www.welcomehomeabq.com like Welcome Home Albuquerque but Welcome Home ABQ. Do home search. You can contact us there. Have a good weekend.
Tego: Good morning and welcome to 95.9FM and AM1600 KIVA, the Rock of Talk. This is Small Business Saturday and Albuquerque Real Estate Talk with the Venturi team of Keller Williams Realty. This is Tego Venturi, and I’m joined with Traci Venturi
Traci: Good morning everybody.
Tego: We do this every week. We talk about residential real estate in the Albuquerque area and what’s been going on with the real estate market. We generally will cover a little market update, the question of the week, tip of the week. What’s out tip of the week this week, Traci?
Traci: I think the tip of the week is ‘Is it a good time to buy? Should I be a renter or a buyer?’ We’re going to cover that here this morning.
Tego: Got it. We had a question come up – this comes up all the time – should I buy or should I rent? We’re going to go thru that and we’re going to talk about some of the pros and cons and how to balance that out. Right?
Traci: Right. But first, a little bit about us. We’re a team of realtors all working together as the Venturi team. We had been very fortunate to work with lots of buyers and sellers in the Albuquerque Rio Rancho, the whole metro area. We would love to help you if you have questions about real estate, you’re thinking of buying or selling. Give us a call. Our number is 93368881. We have a phone and a lot of us could answer, so if you need to talk to Tego or I, just ask for us. We’d be more than happy to help out. Actually, it’s what we love to do. Hopefully, we’ll hear from you.
Tego: If you want to do a home search, you can visit our website at welcomehomeabq.com. We have all the listings from the Albuquerque MLS on our website, so you can go there and search by map, by area, basically search any way you want if you want to do a home search and see what’s out there. Let’s get into market data. Every month the greater Albuquerque Association of Realtors releases its monthly market report, and it comes out usually around the 10th.
Traci: Tego, that just came out. If you’ve been looking at those numbers–
Tego: I have. Last week, I did a preliminary on the radio show. We talked a little bit about some of the stuff. I just crunched some numbers pulling the data myself. I like to look at this every month but I end up looking at it every week because of the radio show because I do want to keep up on what is going on with residential real estate in Albuquerque.
Traci: We obviously have our thumb on the pulse of it because we’re in it every day. So, it’s great to see the numbers and see how they correlate to what we are experiencing.
Tego: Anyway, September numbers. Let’s just go thru this quickly here. We had an increase in the number of homes sold and the average sale price for September. This is year over year, so September 12-September 13. The number of close sales increased 17% from 650 last year to about 770 this year. Good increase in the number of homes closed in September. The average sale price climbed from 203,000 to 212,000, so about 4 ½% increase in the average sale price. It’s interesting because the medium sale price increased about 3% which is about what we’re trending for the year is about 3%. Of course, that’s down from August numbers, the average price. We’re still kind of – since it increases year over year, month over month – it kind of goes up and down, up and down.
Traci: It’s interesting that September was a very large amount. I saw the headline in the Albuquerque Journal this week about the numbers. It kind of just went over where there were just record numbers of homes sold in September, a huge spike up. It’s an interesting month for that spike. It’s obviously kind of the end of summer, and kids are back in school, and people are out there still shopping for houses and making the move.
Tego: Yeah. We’re going to talk about first time homebuyers. It’s a good time to buy if you’re looking for a house. I don’t think people need time to market like trying to do it as an investment. That’s whole another discussion. However, if you need to buy a home, it’s a good time.
Traci: You should be. One of the things we’re going to talk about is should you be a homebuyer versus a renter. Not everybody should be a homeowner. We’ll get into that.
Tego: One of the things I did want to say—a couple of other numbers people who live in Albuquerque just would be interested to know is that the average time on market is right around 60 days, give or take. That’s total average all the homes that have sold in the area. I look at that. It goes up, it goes down. But it’s anywhere from 50-60 days on the market. That gives you an indication of what the time on market should be if it’s the right house in good condition and price to the market conditions.
Traci: and marketed really well.
Tego: Marketed properly, of course.
Traci: That’s an interesting number. I wouldn’t have guessed that it would be so low.
Tego: Obviously, there’s homes that would be in the market for much, much longer. A lot of them just sit on the market and don’t sell for whatever reason. However, out of the ones that have sold, the average days in market is 60 days.
Traci: That’s what we tell people when we’re working with them and get them ready to sell their house, we talk to them about if your house is priced right and marketed right and we get you poised to sell, it should sell in the right time frame because we’re not pricing it to sell next year; we’re pricing it to sell now. So, we need to look at the market data and price it accordingly. What’s going on with foreclosures these days?
Tego: That question always comes up. What’s going on with foreclosures or shadow inventories? Everything I’ve seen indicates that the foreclosure bubble is going down. We’ve gone, we’ve peaked and we’re pulling back now not as many foreclosures.
Traci: Tell me what shadow inventory means.
Tego: Shadow inventory is the homes that are behind on their payment that are clearly, probably going to get foreclosed but have not actually gone to the judicial process of foreclose on the home yet. So, these are homes that are expected to come on the market as foreclosure, and that number has been shrinking. I’ve got a market report from Core logic which is one of the big national companies that do market data. They ran some numbers on the foreclosure inventory. New Mexico is kind of in the middle of the pack at 2.7% of homes on the market. Our foreclosures, which is actually down about a percent from last year which is good, there is about 4.9% of the homes that are seriously delinquent, and those are the ones that I would call the shadow inventory. Those are the ones that are still most likely going to come into the pipeline as a foreclosure. We’re trending in the right direction. A lot of the markets – Florida is still at 8%. Other markets are much lower. We’re right in the middle of the pack. The good news is month over month; the number of foreclosures coming on the market is decreasing.
Traci: I’m going to switch gears into something I was thinking of while you were telling us about the shadow inventory. For a while there, there were a lot of short sales and we’re not seeing a lot of short sales these days. But that shadow inventory, for somebody you might know or if you’re in a position where you’re not able to make your payments anymore, the process has gotten a lot better for short sales, right? You don’t really have to go to foreclosure. If you’re one of those people, give us a call. We can talk to you about what your options might be that perhaps if you look like you’re about to lose your house, we might be able to at least make it a little less painful and do a short sale.
Tego: Why don’t you define the short sale and what that is versus foreclosure? We talk about them together a lot, but they are very different.
Traci: They are. A short sale, my quick analogy is somebody is no longer able to afford the house they’re in. So, they’re still the owner but they have to get the bank who owns the mortgage, their lender to agree to take short what they’re owed. That’s where the term short sale came from.
Tego: Meaning, the house is worth less than the mortgage pay-out.
Traci: Right. Or there’s not enough there to pay all the closing tasks and everything. But the short sale process has gotten really good. I’ve seen a lot of great short sales go right thru the system. Fairly short time. The banks are responding. It’s taken some time, but the process is much better.
Tego: Back in 2008 and 2009, they were getting 10,000. I heard a story once that Wells Fargo is getting 10,000 short sale applications a month or a week or something crazy like that.
Traci: And they had no staffing.
Tego: And they had no staffing… now they’ve staffed up over the last 4 years or 5 years. The processes have improved greatly. As a listing agent, I saw my share of short sales, and I got to say the term short sale definitely does not describe how long it takes to do because it can be a process. It can cause a lot of pain for the sellers. It’s a tough process, but in the long run, it’s much better than the foreclosure.
Traci: Right. That was sort of off-topic.
Tego: Yeah, we got off there. It’s interesting because all of those things are on a decrease when we talk about our markets. So, the number of foreclosures is down, the number of short sales are down. We think that’s a great trend. The number of homes sold is up. The inventory is steady. We have about a 6-month’s supply of homes, give or take about five homes for every one person in the market right now which is good. It’s not bad. It’s not seller’s market. It’s not buyer’s market. It’s just right in the middle there right now which seems to be good for us. We’re going to talk about the rent versus buy and how that works. Now we’re going to go over some tips for first time home buyers here coming up. We appreciate you listening. This is Albuquerque Real Estate Talk on Small Business Saturday on 95.9FM and AM1600 KIVA, the Rock of Talk. We’ll be back shortly.
Tego: Hi. Welcome back to 95.9FM and AM1600 KIVA, the Rock of Talk. This is Albuquerque Real Estate Talk with the Venturi team with Keller Williams Realty with Tego and Traci Venturi here today. We’re talking about market information and what’s going on in the market. Prices obviously are down from the peak. ‘08 was probably when we peaked out — ’07. Interest rates are down. Obviously, there’s a lot of buzz about the real estate market and if it’s a good time to buy. Question of the week for us – this comes up a lot but it came up again this week – was should I rent or should I buy? If you’re consulting with somebody, Traci, what would you ask them? How would you address that when somebody comes up to you and says, “I’ve never bought a home before? I’m renting. I’ve always rented. I’m not sure. I hear about the housing market. Should I be a buyer right now?
Traci: Yeah. That’s a good thing. It does come up a lot – the rent versus buy. It was interesting. The Albuquerque Journal this week again
Tego: Made me think about
Traci: The money section on Sunday’s per had a rent versus buy, and said you should be a buyer. I looked into it a little bit. I got on realtor.com. I got on bankrate.com. I got on yahoo.com. Actually, the Motley Fool has always been one of my favorite investing advice website. What was interesting about it is everybody’s not meant to own a house.
Tego: Hold on! You’re a real estate agent, and you just said not everybody should own a house. Is that right? Did I get that right?
Traci: Yeah, you got it right.
Tego: I agree with you. That’s our job as a real estate agent is get people good advice, not just try to slam them in a home, right?
Traci: That’s correct. We don’t want to see anybody get in a house and being stretched financially or needing to sell it 6 months later and they can’t afford to sell it. That’s part of the ‘Let’s do the foundation and make sure you should be a buyer.’ One of the things I just want to clarify, we’re talking first time home buyers. We’re talking people who bought houses before. When we say the word first time home buyer, everybody thinks it’s somebody who’s 24 years old and they’re buying their first house. I’ve helped many people who aren’t in their 20’s, 30’s, and 40’s buy a house first time. Sometimes its people who have been transferred a lot. They know they’re going to need to resell their house. I helped a woman in her – I think she was in her 60’s – living in New York City where homeownership is very not affordable. Amazing what she could get in New Mexico. First time home buyer really is a lot of different people. But should I be a buyer? You want to think about how long are you going to be in that house? Most people when they’re buying, unless they’re with Kirkland Air and Space or they’re in the military or they’re in a company that moves them a lot, plan to be there for 7 years or more.
Tego: Sure. And with our price appreciation here in Albuquerque which we average somewhere 2, 3, 4, 5%. Let’s say its 3% or4 % price appreciation, it costs about 8% to sell your home. So, if you’re not going to be in your home for 2 years, it doesn’t make sense. That’s one thing to consider. There’s obviously lot of benefits of owning a home. That’s just straight across looking at the numbers. The home is not going to appreciate enough to cover your closing costs at the time you’re there. It may not make sense.
Traci: It may not. Some people, the pride of homeownership and being able to do a paint job on a weekend and enjoy it and prove the value of their property is great. And there’s some tax benefits. Yes, it’s going to cost you some money to sell your house, but there’s also some tax benefits that you get by being a homeowner. All that interest that you pay towards your mortgage is generally a very generous tax benefit that people really appreciate. Length of stay, how long you’re going to be there is important. A few things just to buzz through, the location of the home is extremely important. You want to get a good realtor like us to be your partner because the house might work well for you, but you got to think resell. So many times I’ve worked with a home buyer who says, “I am never moving again. This is it. I am done. This house works perfectly for me. Its 2-bedroom something that’s not normal in our market. The neighborhood is not where most people want to live. I really try to counsel people that location is exceptionally important. Even if 6 months from now you call me and say, “Hey, I got relocated with my job.” Somebody else is going to want to buy that neighborhood.
Tego: They need to consider the resell when they’re doing their purchase is what you’re saying.
Traci: Always. And then monthly budget. Let’s talk about what your monthly budget is. Owning a home and what percentage of your budget are you comfortable with? That’s where I bring in our great lenders like Sarah [0:17:23] who was on our show last week. We got other great lender partners. Jason Pyke with Prime Lending. Others. We have Bank of Albuquerque.
Tego: We have a lot of great lenders.
Traci: A lot of great lenders. Depending on your needs, we can direct you to a lender that we think has the most programs that would work with you best. What you can afford and what your budget is and what the loan programs are. We did some quick calculations. Let’s say you wanted to buy a $ 150,000 house. That’s less than $ 6,000 down payment if it’s an FHA loan. Closing costs are maybe another $ 2,000. So, for under $10,000 you can be in a home. Your monthly payment on that is going to be under $ 1,200 a month. So, if you’re paying $1,400 a month in rent right now and you have good credit and you’re going to be here a while, you might look at buying while the market is very favorable to home buyers.
Tego: Of course, there’s always the tax benefit of a tax deduction on your home interest which it’s not huge, but it adds up. It’s something to consider. There’s a ton of different types of calculators and different ways to analyze these numbers online. If you just do a Google search for.
Traci: Rent versus buy.
Tego: Rent versus buy.
Traci: That’s what I did.
Tego: Truly it’s a great one. There’s some of them that will even calculate that mortgage interest reduction and how much of a difference that will really make based on your tax bracket and your income. Those are some good things to look at as you get out there and crunch the numbers before you go out shopping.
Traci: One of the things we find is sometimes first time home buyers re reluctant to become buyers. They don’t really know where to start. They don’t know what their credit needs to be or what it costs to buy a house. Getting with us or a great realtor, we can really help you. I see statistics a lot of times that say how much time people spend researching and buying on a car. Most people don’t just drop in and buy first thing. They’ve already researched it. I know from our home and car-buying experience, so many hours we pour into researching vehicles. Buying a house is a lot more significant in your future wealth-building strategy. Let’s take some time, put together a plan, and see if you should be a home buyer. Give us a call. We’ll help walk you thru those steps. We’ve done it a lot. I know for most home buyers in the first time, it’s pretty daunting.
Tego: Do you have some tips for first time home buyers. That was our tip of the week here. I know we had some things we wanted to go thru for first time home buyers. Obviously, first and foremost like we said, should you be a buyer? Are you going to be in the home a length of time to make sense?
Traci: Sure. Some of the tips we’ve gone over. What’s your budget? What’s your comfort level? You don’t want to be too stretched. You want to be able to have some reserves out there at the end of every month. Remember to come up with a realistic wish list. That’s part of that buyer consultation that we can do. We can sit down in our office and really go thru the things that are important to you. How do you live in your house? How often do you entertain? Do you really need that guest bedroom and that extra bathroom? A lot of times, once we start talking about how people live, what they really need is different from what their wish list is. Sometimes we need to pare it down.
Tego: And address the commute to work commute to school, commute to whatever it is and make sure that that’s going to be recognizable for you as well.
Traci: Absolutely. That’s great for sure. One of the other ones is getting pre-approved for a mortgage. You’re like a cash buyer. When you’ve already met with the lender, you’ve already given them your bank statements and your tax records and things. When we go out and we find the right house, we’re ready to go. When we put an offer in, the sellers of the house feel confident that you’re going to be able to follow thru and buy the house.
Tego: Most sellers won’t even consider an offer unless it comes with some sort of proof of ability to get the loan.
Traci: I would say I agree with that, but I also feel like realtors with great reputations in our market like we have, people will look at an offer but they usually have pretty form deadlines of getting that proof. Then the whole home inspection and your due diligence period. We find the right house. We help you with every step of the way on home inspection, termite inspection, all of those types of things, but making sure there’s a realtor with a good team of vendors supporting you. The other thing is get to know the neighborhood. Your realtor may not know every neighborhood in the whole metro area. If you’re looking for Las Lunas or Placidas or the East Mountains, they may not know where the local school is or the best grocery store. Make sure you take some time and go back to that neighborhood. Go at night. Go in the morning. Go at rush hour. See what it’s like. Go for a walk. Try to meet a neighbor and ask him what’s going on so that you feel like you really know if this is the right place for you and your family.
Tego: Yah. Any other great tips for first time home buyers? Some of these are great tips just for anybody that’s in the home buying process. Get pre-qualified. Go thru a thorough needs and wants, work with a good realtor that can really help you thru that process. Let’s just talk about that. We have a team of buyer specialists that all they do are work with people that are buying homes. We have Jane, Aimee, Tori, Martha. That’s what they specialize in. they work with home buyers and get them to find their right house for them.
Traci: Exactly. We’ve seen thousands of houses between all of us. We know the market. So, we know if a house is priced right, what neighborhoods are best for certain reasons based on what your needs are. We’d love to go to work for you to find that perfect place for you to call home and lots of other little tips, but those are the big ones that we’ve covered here today.
Tego: If we can help you obviously, we love to talk about real estate and be in real estate. You can call us at (505) 933-6881 or visit our website at welcomehomeabq.com. That’s welcomehomeabq.com.
Traci: Have a great weekend
The balloons are in the air here in Albuquerque and that means it’s time to do some fall maintenance on your home. Here are some of the top things to look at to help keep your home in tip top shape.
- Evaporative Cooler Shutdown and service.
- Heater/Boiler Service. Have a heating professional check your heating system.
- Replace Furnace filter(s).
- Inspect Stucco and have it repaired if needed.
- Inspect Roof and reseal and replace shingles if needed.
- Clean Gutters and Canales.
- Weather seal Windows and Doors.
- Check for Peeling Paint.
- Clean and Inspect Fireplace.
- Reverse Ceiling Fan.
- Insulate Exterior Hose Faucets.
- Test Smoke Detectors and CO Monitors.
- Cut back any trees or shrubs that may be touching the roof or exterior of your home.
- Run power equipment that won’t be used out of fuel.
- How is the Government shutdown effecting the Real Estate market?
- Albuquerque Real Estate Market update.[podcast]http://venturiteam.podbean.com/mf/play/8c44yq/AlbuquerqueRealEstateTalkOct52013.mp3[/podcast]
The Albuquerque Real Estate Talk Oct 5 2013
Tego: Good morning and welcome to 95.9 FM and AM 1600 KIVA, the Rock of Talk. This is Tego Venturi with Keller Williams Realty and the Venturi Team. This is Real Estate Talk or The Albuquerque Real Estate Talk, I should say. We’re on small business Saturday here on KIVA. I’m joined by Tracy Venturi.
Tracy: Hi, everyone! Good morning!
Tego: Hi, Tracy! First off, let’s talk about us. We’re we Keller Williams Realty; we’re the Venturi Team of Realtors. We specialized on residential real estate here on Albuquerque. If you need to get a hold of us you can visit our website at www.welcomehomeabq.com or call our team hotline – as what we call it – 505-933-6881.
Today we’re going to kind of go over some market data, I’ve got the latest numbers for September. We’ve on October now and balloons are in the air, it’s that time of the year again. We’re going to talk about some market stats, we’re going to talk about this little silly government shutdown since everybody is talking about the government shutdown I figured we will, too. We have a guest to kind of help us through that and how that’s affecting real estates. Tracy will talk a little bit about balloons.
Tracy: We should get right into lending.
Tracy: Maybe we can bring Sarah Gmyr Maez on board with us this morning. We want to welcome Sarah. She’s one of our trusted and respected lenders. We were driving here going, “Gosh, we really need to talk to Sara to find out what’s going on.” So we asked her a bunch of questions and it was really fascinating. We appreciate you joining us, Sarah.
Tego: Hi, Sarah!
Sarah: Hi! I’m glad to be here.
Tracy: Welcome aboard!
Tego: Thanks for being here. This whole government shutdown thing, in the real estate world there are some things that are affecting how we do our loans in particular but it’s not very serious. We were talking about that. We want to bring you on and kind of go over that. From your standpoint as a lender you work with a lot of different companies that do the funding, they actually invest in the loans. What are you seeing out there? How is the government shutdown affecting residential loans right?
Sarah: Right now the biggest thing that is being affected is if a borrower is self-employed or own multiple rental properties, they typically have to exercise a 4506T which gets a tax transcript directly from the IRS verifying the tax returns that they supplied to confirm that they are the ones in fact who filed. Those are required on self-employed borrowers or borrowers that own multiple properties.
Right now, because of the government being shut down, they’re not able to get those, get the tax transcript. They’re trying to find ways around it right now and depending on who they go through some of them are allowing third-party confirmations like if a CPA prepared the tax returns for the self-employed borrowers, as long as they sign off on it and confirmed that they are the ones that filed it, they’re taking that. But that’s really the biggest factor that’s affecting us right now. All other avenues are up and running.
Tracy: So some of the clients we have are both home sellers and home buyers have actually been calling us this week a little bit alarmed about it. Most of those are not self-employed or people with multiple properties. Its regular buyers and sellers that are owner-occupier, they’re using FHA loans, VA loans or conventional loans. From what I’m hearing you say, those loans really aren’t being affected by the shut down.
Sarah: They aren’t being affected. If they’re a W2 employee, then they should be able to continue on as normal.
Tego: Got it. Looking into the future here a little bit, do you see anything from the VA or FHA side that may be delayed? Or at this point everything is being taken care of?
Sarah: Everything is being taken care of. They’re still able to get case numbers, which are required on those types of loans – they get assigned a number based on that property to obtain certain documentation through VA or FHA. So they’re able to get those, they’re able to get certificates of eligibility for VA loans as well so that way it shows that they are eligible for a VA. All that stuff is good, it up and running. Nothing is shut down in that aspect.
Tego: For most people that have a loan in the pipeline right now, that’s probably not an issue whatsoever. It’s just the new ones coming on probably this week or last week and this coming week. Would you say that’s the case, as this goes one?
Sarah: Yeah. They should be fine, unless like I said, the only hurdle they’re going to have is if they’re self-employed or if they own multiple properties, depending on what the requirements are of the lender, they’re going through as to what they’re going to do in the case of getting that tax transcript back from the IRS.
Tracy: Perfect! So small business Saturdays, we probably do have a good listenership of self-employed people who this could be something that’s potential for them. Let’s move on to interest rates, it’s always great to get a quick update. What are you seeing on interest rates? What’s been happening the last few weeks? Do you have that crystal ball that I don’t seem to have?
Sarah: I don’t have a crystal ball. However, they have gone down over the last couple of weeks, which is nice. Anything can change at the drop of the hat. If the government opens back up, who knows what’s going to happen with figures and unemployment rate and things like that because every little piece of news affects the market. Right now they’re hanging in there, they’ve been pretty level this week and they have gone down if you look at a two-week period they have dropped a little bit.
Tego: I’m sorry; you’re probably going to say this. What are you seeing for rates right now?
Tracy: VA, FHA, conventional, just a typical rate; somebody with decent credit scores, which maybe you could tell us – what is a decent credit score?
Sarah: A decent credit score, I would say, would be on FHA and VA is categorized a little bit differently. If it’s six-forty (640) or above you can do a VA or a FHA and interest rates on that would be between three point seven-five (3.75) unless they throw in a quarter because it really does vary on a bunch of different factors. On conventional, for a primary purchase a good credit score would be seven-twenty (720) or above and you’re looking at a range of four point three-seven-five (4.375) to four and a half range right now.
Tracy: Those are awesome!
Tego: Still smoking, smoking good rates.
Sarah: And those are on thirty year fix, mind you.
Tracy: Some of the other programs could even be better than that.
Tego: Sarah, if somebody wants to get a hold of you to talk about financing a home or re-financing a home, how do they get a hold of you?
Sarah: They can reach me on my cell number which is 505-319-0622 or by email which is email@example.com which is S-A-R-A-H-G-M¬-Y-R (@yahoo.com).
Tego: Awesome, Sarah! Thanks so much for joining us and giving the update and putting to bed some of these myths and rumours that are out there about the government shut down and how it’s affecting real estate. One thing I want to put out there, realtor.org which is the national association of realtors’ website – realtor.org – they’ve been doing updates and giving daily updates. Basically, it mirrors what you said which is most of the programs are up and running and it’s not really affecting things. It’s just the tax thing is the biggest issue and you said that’s very limited so that’s good news.
Tracy: We really appreciate you joining us here this morning. We closed a lot of loans with you, a lot of our clients have and we like to point out we have some great relationships with different vendors and lending is one of the huge partnerships we have when we were working with people who are especially buying a home or re-financing a home. We think of it as a triangle; we got the buyer, we got the realtor and we got a great lender. We appreciate all you do to support our team and everyone else in the community with your awesome service. I hope people will give you a jingle and see how you can help them. Thanks for your time!
Sarah: I appreciate you guys having me on the show. Thank you so much!
Tego: You’re welcome!
Sarah: I enjoyed doing business with you as well.
Tracy: Great! Have a good rest of your day.
Sarah: You, too!
Tego: Thanks, Sarah! Bye!
Tego: So, where are we going next here, Tracy?
Tracy: Well, we just have a few minutes before we have a little break. If you want to go back to that realtor.org and some of the hot stats that just came out. We have to pick up after the break if we can.
Tracy: September numbers are out and they’re pretty amazing. Obviously, we look at national as well as local. I know you’ve been looking at them and crunching them. Give us the highlights, what do people really want to hear about?
Tego: Yeah. There are a couple of things because some of these national numbers were usually about a month behind so when we look at the national numbers it’s really confusing when you look at the newspapers. You get one that says something and it’s national numbers and you get the local numbers and you’ll be talking August.
Tracy: And the next day they’re all different.
Tego: Then we’re talking September. I’ve got the latest September numbers for our local market. This is just the preliminary, this is not the final. We did see about a twelve per cent increase in the number of homes solved; this is volume, not prices.
Tracy: This is for September?
Tego: For September over last year’s September, so 2012 September to this year September we saw an additional a hundred and fourteen homes sold. It’s a little over twelve per cent increase in the number of homes sold. Let me put those numbers in perspective.
Tracy: Let me just mention something because we might have to catch this up after the break. What does that mean for home sellers? We’ve got a huge month in September of houses that have sold.
Tego: It was eight hundred and ninety-two homes sold in September versus seven hundred and seventy-eight last year September, that’s in the whole Albuquerque metro area. It is a big increase in the number of homes sold. Pricing – that’s a different story, we’ll talk about that here when we come back from the break, and how pricing is affecting things.
Tracy: Right! Sort of a myth of don’t wait to sell your house until next spring when you look at the numbers, it was a pretty big September.
Tego: It was.
Tego: Okay. We’re going to take a break. We’ll be back here shortly. This is Albuquerque Real Estate Talk with the Venturi Team of Keller Williams Realty. You can visit us at welcomehomeabq. We’ll see you back here shortly.
Tego: Welcome back to 95.9 FM AM 1600 KIVA, the Rock of Talk on Small Business Saturday. This is Albuquerque Real Estate Talk. It’s the local show talking about residential real estate in Albuquerque. This is Tego Venturi with The Venturi Team and I’m joined by Tracy Venturi of the Venturi Team. We’re with Keller Williams Realty but we have a team that works together. Tracy, let’s just talk about that. We’re kind of unique in the residential real estate business in that we have a team of people. We have specialists that handle different aspects of real estate because there are a lot of different pieces to the real estate business.
Tracy: There really are. When I think about all the moving pieces that happen whether you’re listing a house for sale or whether you’re working to buy a house, there are a lot of parts and pieces. We have found that we’re not all generalists; we’re not all good at everything. We have some people on our team that are just awesome at showing houses; they know the inventory and the market. You’ve heard from Marta and Jane, who are on our team, they’ve been on the show. They’re out all the time showing houses; they show thousands of houses a year. If there’s something that you’re looking for, they’ve probably seen it in the past and know where to find it again. Then on the ‘getting your house sold’ side we have Meredith and Darlene on our team there that support that, that really know how to market and position your house to sell.
We were just talking about the market, which kind of goes back to where we left off before the break.
Tego: Yeah. The market is kind of funky in Albuquerque. I wish I could really put my finger on it, Tracy. I look at this all the time, probably at least every week. One thing that you and I have been saying now for months is that the number of homes selling in 2013 has increased month over month when we compare it to previous years, we’re on a good pace here. Like I said, we had a twelve per cent increase on September yet prices are flat. Prices really haven’t done much.
Just the other day, CoreLogic, which is one of the big national companies that puts out market stats, they put out a report and they rated the five markets that are showing the largest gains and the five markets that were showing the lowest price gains. Guess who is number one at the market that has lowest price gained year over year?
Tracy: So out of all states, New Mexico had the slowest price appreciation?
Tego: Yeah, in August not even two per cent and that’s kind of what I’ve been seeing when I look at the market.
Tracy: Was that a year-to-date number for the month of August, do you know?
Tego: Year-over-year home price appreciation in August.
Tracy: Year over year; okay.
Tego: Yeah. Some of the other markets – Arizona, sixteen per cent, Nevada twenty-five per cent, California twenty-three per cent – some of those numbers are unhealthy. I’d rather be – honestly, I shouldn’t say this, maybe the two per cent than the twenty-five per cent.
Tracy: It’s great for everybody.
Tego: Yeah. We seem to be lagging behind in that. Once of the other things I looked at was just the local market and average prices just hovering right around two hundred thousand for the Albuquerque area, median price around one seventy in Albuquerque market so we’re just kind of holding steady. The number of homes is – like I said – numbers are up, but the prices are pretty much flat or just a little bit of appreciation.
Tracy: As far as if you’re a home buyer, we see a lot of people not wanting to make the wrong choice, not wanting to make a wrong decision and they’re waiting to buy even still now that we’ve seen all these indications that across the county things have sort of taken off.
Tego: We’re behind.
Tracy: We’re sort of behind on the price appreciation, aren’t we?
Tego: Yeah, we are. Does that mean it’s coming to us next? I think it depends on the national market and the national job market. Everything follows jobs and as long as that stays strong I think we’re going to have appreciation going through the next year.
Tracy: One of the things I just wanted to point out before we move on to our next topic which is fall house maintenance is the median sale price in our market of a hundred and seventy-ish thousand for somebody who wants to buy a house at that price, they always want to know, “What is my monthly cost going to be?”
Tego: What that monthly cost be, Tracy?
Tracy: Yeah. If you do the typical FHA loan, which is only three and a half per cent down so for less than ten thousand dollars total you can be in a new home and your monthly payment is going to be around twelve hundred dollars a month so that means if you’re leasing or renting an apartment or house or whatever and you’re paying twelve hundred or more a month, it might be a good time to think about home ownership and get in while prices are still on a lower side.
Tego: And you get that tax deduction too. There are a bunch of calculator, get online and start looking for home mortgage calculators – there are all types of calculators out there that will help you kind of evaluate what will work and how much tax break you get as well because you get to deduct that interest rate.
Tracy: That’s where someone like Sarah can come in and say, “Look, you want to buy a house that’s two hundred and fifty thousand, how much down payment does it need to be and what would my payment look like?” We can run it, Sarah can run it. She could really know better based on your credit scores because it does affect what your loan could look like.
Tego: And you get the pride of home ownership!
Tracy: Yeah, which a lot of people love. They like to do projects around the house and when you’re a renter then mentality is a little bit less. Which brings me right to doing things around the house.
As a homeowner obviously along with that comes maintenance on your house and just keeping it up. It’s that time of year where a lot of you will be thinking about fall and what should I be doing with my house. Tego, if you want to go through that a little bit, that would be awesome.
Tego: Yeah! I have a checklist and I’ll have this on our website. Obviously if you have an evaporative cooler AKA swamp cooler that needs to be shut down and serviced for the year. The other thing is get your heater serviced; you may want to call in a specialist to look at that. Definitely change the filter on your heater, which should be done multiple times a year. You want to inspect your stucco on the exterior of the house; most of our homes have some stucco. You want to inspect it, look for large cracks or places where it’s peeling away because if you get moisture back there that can cause other problems.
Tracy: There’s a typical rule and this is what I’ve heard from stucco people. If you can fit a quarter in a crack you should probably get it sealed up.
Tego: Yeah, I’ve heard that as well; or a credit card. Yes, exactly. If you can slide that in there in that crack, it probably needs to get dealt with. The other one is concrete like your sidewalk. If you’ve got large cracks on your driveway or your sidewalk, you should get those sealed as well because you get moisture in there and that can cause a problem.
Tracy: We see that come up on home inspections sometimes where there will be kind of a separation and an unlevel area where it’s a tripping hazard so that might be something that you’ll have to fix eventually anyway if you’re thinking of selling so you might as well have it nice for you.
Tego: The next one is your roof. I think we bring up roofs every time because every home inspection that we ever go to, Tracy, there’s always something about the roof. If nothing else, it just needs to be maintained. Get up on the roof if you’re comfortable doing that or have a roofer take a look at it; replace shingles if it’s a shingle roof.
I’m going to go through the rest of the list here.
Tracy: Or popped nails.
Tego: Yeah, popped nails; stuff like that. Clean the gutters, if you have gutters. We don’t have a lot of gutters in New Mexico but we do have a lot of canals so you want to get those canals cleaned out so water can drain out your roof. If you have a lot of leaves up there that can cause a problem.
Check the weather sealing around doors and windows. We don’t get super cold here, we’re not Minnesota, we’re on lovely New Mexico where it’s not super cold but we do want to check those leaky windows and doors and get those sealed up.
Check for peeling paint. There’s usually paint trim around garage doors, other places where you have wood trim, you want to keep that paint looking good and sealed up.
Clean and inspect your fireplace. If you have a fireplace you want to make sure that that’s safe and in a working order.
Reverse the ceiling fan. I thought that was a good point because with ceiling fans you want them to be going one direction in winter and one direction in summer. Of course, at the top of my head I don’t remember which is which. You can find it online, I’m sure.
Insulate the hose, faucets, exterior of your house. Test the smoke detectors and CO2 detectors.
Cut back any trees or bushes that may be touching your home.
Run your power equipment until it has no more fuel in it – except for your lawn mower, you’re not going to run your lawn mower for six months, you want to get all the fuel out of it because it will turn into varnish in the winter then you’ll have to do maintenance on it in the spring.
Those are my quick list of tips and I will get this posted on our website at -
Tracy: www.welcomehomeabq.com. I just want to add one more thing for those of those with septics and wells. If you have an irrigation pump well, if you need to winterize it and turn the water off to it.
Tego: I wonder why you’re bringing that one up!
Tracy: Yeah. How many pumps have we gone through?
Tego: Yeah. I have an irrigation well at our property and it froze last year so I ended up having to crack it. Yeah, that can happen. Swimming pools and stuff like that as well, anything dealing with water outside, some people want to drain their sprinkler systems in the winter as well, especially if you’re in the northern part of the state where it’s quite a bit colder or the East Mountains, for example.
Tracy: We’re wrapping up here on Saturday. I just want to let you know, if you have topics you’d like us to discuss you can always reach us through email. Our website is available, there’s a link to talk to us there. We’d love to hear from you! Of course you can call us on the phone.
We look forward to next week and enjoying the balloons all week!
Tego: Yeah, exactly! I hope the weather holds. This has been Albuquerque Real Estate Talk with Tego and Tracy Venturi of the Venturi Team Realtors with Keller Williams Realty. Again, reach us at www.welcomehomeabq.com. That’s www.welcomehomeabq.com.
Tego: Good morning and welcome to 95.9FM and AM1600 KIVA, the Rock of Talk. This is Business Saturday and Albuquerque Real Estate Talk. I’m your host Tego Venturi, and I’m with Traci Venturi
Traci: Yeah. It’s great to be back together again.
Tego: I know. We’ve been gone for a few weeks and haven’t been on the show here, although the team members have been on the show doing the show, which is great. Just a little bit about us again. This is Tego Venturi. We’re with Keller Williams Realty with the Venturi team, and we have a team of people that work with us as well. If you want to get ahold of us, you can do that at welcomehomeabq.com. That’s our website, or you can call us at (505)-9336881. Traci, last week we were off in Austin for one of the big Keller Williams Realty event. Keller Williams, people don’t know they originated out of Austin. We were at an event called Mega Camp, and it’s one of the big events that gets all the top realtors in the country together to talk about what’s going on, and we get a market update.
Traci: Absolutely. It’s always good to get out of dodge and get a perspective on what’s happening nationally. When we go to these conventions, we always hear what’s happening on the coast, what’s happening around North America. We get updates on Canada and the whole world since Keller Williams is international now. It just helps us get out of the day-to-day and recognize absolutely all the things we do right, first of all, because we go there and we hear best known methods and things about real estate and how to be a great realtor and representative to our clients. We always smile because we feel like we’re pretty cutting-edge. There was a couple thousand people there. The kick-off to the event is always great. Gary Keller, one of the founders of the company, got up and did a nice market update. He said it was going to be 15 minutes but it was really about 45, but it was just great information.
Tego: It was. He, of course, looks at it from big picture not local, obviously. To me, the big headline, the big takeaway was e real estate market is recovering. I would not say it’s booming. Would you agree with that, Traci?
Traci: You’re talking locally maybe, but really what he said was we’re on pace for the best years since 2006 in North America or in the States. The July pace is 17.2% higher than last year. That’s huge. When you relate that to Albuquerque or New Mexico, we’re not 17.2%.
Tego: Actually, let me tell you the numbers because I actually ran the numbers before we came in to do the show. The annual pace of home sales was up 17% for the same period last year for the year. That was nationally. I ran Albuquerque, and surprisingly, you probably don’t even know this, it’s 15%. Number of homes sold this year in Albuquerque market is 15% more than the same period again January thru I guess that would have been August. So, the number of homes sold is up. The other thing, of course, he talked about was prices, and we kind of looked at some charts. When the market bottomed out in probably ‘07 nationally, and since then it’s stayed flat even actually in ’11, it was down a little bit, but since then it’s been coming up.
Traci: What he said was nationally, 17 consecutive months of year over year increases in prices. Now, in our market we haven’t seen a lot of increases in prices; we have seen more homes selling at a faster pace. Prices, we really haven’t seen, but maybe you just check that status as well.
Tego: I did kind of look at it. We’re still having a little bit of increase, but it’s still relatively flat from a price and appreciation standpoint in our market. Maybe 2-3% year over year, which is interesting. I think one of the big takeaways for me for the whole thing is that there’s still room to recover nationally and locally from a market standpoint.
Traci: Right. Some of the data that I have that I was hoping we’re going to get to is some people feel is they’ve missed the bottom. It’s like you can’t time the market very well. Yes, we do see the indicators show that we’ve missed the bottom. However, if you look at long term trend lines, we’re still well below the annual 4% trend line if you look at a graph that puts where we should be at if we wouldn’t have had a huge bump up and then a big pull back.
Tego: Yeah like in ’04-’05 — I’m looking at the chart here — ’04, ’05, ’06 the trend it got ahead of itself.
Traci: It did.
Tego: If you look at it, we needed a pull back and we had one and it did pull back. We’re still below that 4% annual appreciation or, if you want to put it, trend line.
Traci: Basically, they said we’re probably 18 months away and we should probably see prices appreciate enough that we’ll be back on the trend line again. These are national numbers. Our market typically follows behind, so if you think about 17%, the pace of home sales across the country is 17% higher than just a year ago. Think about markets like Vegas and Phoenix and California and the East Coast. Other realtors that we were meeting with in Austin talking about how they’re getting like 28 offers on a house. We’re not there yet.
Tego: It’s interesting because we hear those stories about multiple offers way over less price, and I think those are very isolated incidents. I know in some of the markets like Phoenix, they’ve had some inventory problems where they just don’t have as much supply for the number of buyers they have on the market. We’ve seen a little of that here in Albuquerque.
Traci: We had 8 offers on one house we listed recently. It was in downtown Albuquerque kind of the historical neighborhood by Teague Way Park in Old Town where right now we got another house under contract there, and we have buyers waiting at Old Town area right now.
Tego: That particular area.
Traci: Yeah. So, I know if we listed something there—
Tego: But if you live in the historic district in downtown Albuquerque and want to sell your home—
Traci: We have buyers.
Tego: We have buyers. It’s interesting because some neighborhoods are that way and some neighborhoods are not. Then, of course, it’s affected by price range. One of the things they talked about was the number of homes available or the inventory available based on price range. In the lower prices, it’s pretty tight. There’s not a lot to choose from.
Traci: It is a bit competitive, so there have been some very big hedge funds kind of the stock market type companies hedge funds that have been—
Tego: Big money
Traci: in selected markets across the United States buying up houses to have as rentals because they’ve realized that real estate was a huge bargain and it was prices like they just couldn’t not get into it. In Albuquerque and Rio Rancho, our market is one of those where a fund has been buying up houses and converting them to be rental houses. Unfortunately, for the neighborhoods that seem to have been purchased quite a bit by them because it will just increase the number of renters, but really for regular, what they were looking for was under 200,000 and 15 years old, pretty good shape, they’d go in and buy it with cash. Quick closing. So, our kind of first time home buyers are competing against cash, quick-closing, deep pockets. So, it has been a little bit tough. So, we do need more houses for sale in that under 200,000 range.
Tego: The entry-level, what I call entry-level, I guess. The thing is we have a juxtaposition on the higher end. It’s kind of the opposite. It’s still kind of a buyer’s market in that higher end in the Albuquerque area. What would you say? Over 500,000?
Traci: I’d say even over 400 or 450. Yeah, we have seen a bit of a recovery in kind of that luxury or higher end market. There’s still plenty of room for improvement.
Tego: There’s still a lot of supply. Some of those homes are selling at definitely a discount right now.
Traci: Absolutely. We just closed one actually in the East Mountains very close to I-40. It was 18 minutes to the Kirkland gate. I actually mapped it one day because a lot of people who live in the neighborhood work at Kirkland or on base in some capacity. The house that the people had sold that had about a million or two into the house, and they sold it for under 600,000. The house is phenomenal. Huge deal.
Tego: There are a lot of great deals in that higher end and things like that for sure.
Traci: Yeah. So, if you’re thinking of being a move-up buyer, give us a call because it’s a great time to become a move-up. If you’re ready to get a house that better matches your family size or you’re ready to move up, call us and we can help you. A lot of people. I talked to a woman yesterday who has a house in Northeast Albuquerque, and she wants to downsize. She’s in 3,100 sq.ft. and it’s just her and she doesn’t really know ‘How do I move and pack up and buy and sell at the same time?’ I was like ‘We do this all the time.
Tego: Yeah. It’s a process. It’s not simple, but it’s easy if that makes sense.
Traci: We know the ins and outs and how to negotiate the deals so that it works best for her whether it’s a post-occupancy or she buys and sells at the same time and it seems like it always works when this comes up. Some of the things I still hope to get to, perhaps after our break, on this beautiful Saturday, there’s kind of a chill in the air
Tego: Yup. Fall is here.
Traci: Yeah. It kind of blew in yesterday. Some of the things the statistics told us were about underwater homes, people who are in a negative equity position where their house might not be worth what they paid for it. We can talk about that a little bit because those numbers are getting better as well.
Tego: Yeah, and the number of distress sales is coming down, and that’s affecting things as well which is just good for everybody. We’ll get into that here in our next segment. Again, this is Albuquerque Real Estate Talk, and this is Tego and Traci Venturi with the Venturi team of Keller Williams Realty. You can visit us at welcomehomeabq.com is our website. If you want to get ahold of us, you can do it there or you can call us at (505) 9336881. We’ll talk to you shortly.
Tego: Good morning. Welcome back to Small Business Saturday on 95.9FM and AM 1600 KIVA, the Rock of Talk. This is Tego Venturi with Keller Williams Realty and this is Albuquerque Real Estate Talk. I’m joined by Traci Venturi. We’ve been talking a little bit market updates stuff and we wanted to continue that discussion. We got a national market update that looked like things are going in the right direction. That’s the short of it. The market seems to be moving in a positive direction.
Traci: That certainly was the indication of all the numbers that we went over and in talking with other realtors around the country. What were some of your takeaways, Traci?
Traci: I was thinking about the cycle of real estate. One of the things that really struck me was the housing market over time, if you look at kind if historical, there’s a 7-year cycle where things kind of go up and they go up and they go down. That really holds true since 1989 or so, if you look at the chart specifically. It really has done that. The thing is that a lot of homes right now are still underwater, negative value, not necessarily that people don’t have the money to keep paying for their home.
Tego: They’re not in distress, but they’re still t a negative equity position. The house is still worth less than what they got their loan for.
Traci: Right. The thought on that is plan to hold your house for 10 years. The 7-year cycle is covered, and even if you buy at a high, if you’re not planning to sell anytime soon, you should be fine because prices recover. So, prices always come back if you buy in the right location. We’ve really seen that around Albuquerque. If you really think long term when you’re buying a house, make sure you pick an area that’s going to be desirable if you need to sell it in a few years. In addition to working for your family, think re-sale. I work with a lot of folks who say, “I’m never moving again.” Then a year later they call and say, “I’m moving.”
Tego: I know. Life happens. Life does happen and things change for folks. We deal with a lot of people relocating here which is wonderful. I love helping those people. But sometimes they’ll make a relocation and then something happened where they need to make a change.
Traci: The military relocation is one where often they do get moved every 3 or 4 years. We worked with a lot of people coming into Kirkland Air Force Base [0:14:54] in or out of Kirkland for relocation. Generally, we work really hard to find them the right house in the right school district that we know they can resell when and if they need to, although a lot of military personnel keep those houses as a retirement plan.
Tego: Let’s change gears here a little bit. There’s something that came up and there’s been a lot of buzz about lately, and that is this so-called back-to-work program, something FHA is working on to get people back into the housing market. It’s kind of been a little bit underground. I haven’t been hearing a lot about it. The thing that’s fascinating about this is it’s a new program that allows people that had some sort of event, either short sale, foreclosure, bankruptcy, some sort of event that affected their ability to keep their home during the downturn, there’s a new program that may be able to get them back in and get them qualified to purchase a home within as little as a year.
Traci: That’s true. It’s hard to even think that someone who might have lost a home due to a short sale or a foreclosure or some other economic event would want to get back into homeownership, but, in fact, we do see a lot of people because they know the prices are still down. It’s a great time to buy. Interest rates are still really good even though they’ve come up 1% since the 1st of the year, but there are a lot of folks that should be buying and are in the market to buy. This new FHA program gives borrowers their buying power back. The interest rates are good. The credit list type person who had a foreclosure, short sale, bankruptcy or whatever can qualify in as little as a year.
Tego: Yeah, and I kind of got the guidelines here, and it’s saying The folks must prove their income declined by 20% or more during a 6-month period that kind of resulted in this negative event happening to them. second, they must prove and document that it was because of a decline in income
Traci: Not that they just decided not to pay.
Tego: Yeah, right. Exactly. They also have to show that over that 12-month period whatever it is that they did not have any credit events. If they’re paying rent, they’re paying rent regularly. That basically you have good credit. Then they have to go thru counseling, actually housing counseling which is kind of interesting, but I think it makes sense. Again, it’s FHA’s way of helping people get back into the market that were really hurt by this thing. That was a stressful event.
Traci: Very stressful. And not necessarily that it was bad habits with money. It was unforeseen, and a lot of people with a great history of credit and responsibility—
Tego: I think one concern is that I don’t think any of us want to get back to that situation where we had people getting these loans based on no-doc loans or basically they says, “Well, I make this much money and I’ll get a loan.” I get the impression that everybody’s very intimately aware of that. You still have to qualify for the loan. You still have to prove your ability to repay. It’s not this ‘We’re just going to give you a loan because you can fog our mirror.
Traci: Right. They’re not just simple giving loans to people because they say I’m ready. People do have to prove their credit history of late is important. Kind of piggybacking on this program, this back-to-work, affordable loans programs, Fanny Mae who backs these and does the mortgage insurance on them, their numbers are down. So, part of it is just for them. they need more loans. They got money. They need to get money out there and have it being used. But if you’re not in this position, let’s say you got good credit, you got good income, you should be a homebuyer, interest rates are really good. The minimum credit scores have come down. If you tried to get a loan a year ago, credit score minimums ere pretty high. There weren’t many loan programs out there. Now we’re seeing credit scores down to 620 getting loans with good rates. We’re also seeing a real assortment of jumbo loans available where jumbo loans have become much more popular and much more affordable. So, for those move-up buyers who want to buy and get a loan that’s over 417,00, jumbo loans are pretty attractive again. For a while there, that was really hurting the luxury market.
Tego: Something that struck me here was when we had our folks doing short sales and other things come up that made them lose their home, most people were told at that time that it was going to be 3-4,5, 6 or 7 years before they could buy a home again. I think it’s important for people to get the news out there that there are some options for folks if they do want to get back into the housing market and gotten over the stress that they went thru. There’s some great opportunities there.
Traci: So, if you know of anybody who perhaps is in this position, let them know that this has changed and there are programs available so that after one year, they can qualify again. Some of the other things from Austin, the National Convention – I guess it was International Convention
Tego: Let’s talk about the market update
Traci: That underwater homes won’t be underwater for much longer. We’ve seen a big trend line of prices coming back so that those homes that maybe were down 35% in value are maybe now maybe down 12% in value and things like that.
Tego: That was good. Again, we’re seeing that back here in Albuquerque where the average home price has come back up where those people that were underwater are getting close to not being, or as the prices increase, we’re going to have less and less of that and that negative equity kind of just out there in the market.
Traci: Another thing that we’ve noticed as our real estate team, we’ve been blessed to sow a lot of houses lately. We aren’t seeing low appraisals. Things are definitely appraising for purchase price. Actually, in the last couple of weeks, we had at least 3 houses that appraised for over the contract prices. Somebody’s getting instant equity the day they move in.
Tego: There’s opportunity out there. I guess we could share this. You and I are buying a rental house.
Traci: Yup, we close on Monday.
Tego: Another one. We’re in this market day in, day after day after day and we feel like the market is at a place where it makes sense to buy rental properties. Of course, we’re in the business. We’re in it.
Traci: We’ve been talking about this for 3 years though, but we’ve been so busy helping other people buy, we haven’t gotten around to picking up another house for ourselves, and it’s hard to find those great deals for what we’re looking for.
Tego: That’s not for everybody. Back in the boom times, there were a lot of people coming on from other markets, a lot from California buying rental properties in our city. They really didn’t have a business being in it.
Traci: A lot of people didn’t.
Tego: It’s not for everybody, but we feel it’s just part of an investment portfolio is having some real estate. Particularly for us, it’s rental homes.
Traci: We’ll go ahead and put some graphs up in our website. There’s this amazing graph that just shows affordability right now. If you wait 18 months, we’re going to be in a less affordable position with interest rates and home prices.
Tego: Thanks for listening. This has been Albuquerque Real Estate Talk. This is Tego Venturi with Keller Williams Realty. Again, if you want to reach out to us, we appreciate listening but you can visit us at our website. It’s www.welcomehomeabq.com. That’s www.welcomehomeabq.com. our team phone number is 933-6881.
Traci: Have a great Saturday, everyone
All About Angel Fire New Mexico
Tego: This is Albuquerque Real Estate Talk on the Rock of Talk 95.9 FM and AM 1600. We are part of the small business Saturday line-up. This is Tego Venturi with Kelly Williams Realty and the Venturi Team. This is the show where we talk about residential real estate in the Albuquerque area, and actually today, not just the Albuquerque area, my guest today is Stuart Hamilton from Angel Fire, New Mexico. He’s a real estate agent with Keller Williams realty and Angel Fire. We’re going to talk about Angel Fire. Stuart, can you hear me?
Stuart: I can hear you fine.
Tego: Alright. Good. Thanks for being here today. Stuart, we’ll get into Angel Fire here in a minute. I wanted to talk about some of the news of the week. Some of this doesn’t affect you, but a lot of the state’s laws regarding real estate affect all of us, of course, no matter if you’re in Albuquerque, Angel Fire, Santa Fe wherever. The big story this week was that the Mariposa neighbourhood in northwest Rio Rancho, they’ve come to a settlement on their tax issue regarding public improvement district—it was written up in 06 but there was a big issue because the bond holder was trying to collect from the homeowners because the developer kind of bailed on the project. Stuart, we’ve gotten some new rules now regarding disclosures on these public improvement districts. Do you have any of those up there?
Stuart: We do. We have one that was just completed last year. It was a 3-year project where we brought infrastructure to 852 lots that didn’t currently have electricity, roads or telephone. That was about a $30 million project
Tego: Was that done as a bond or a levy?
Stuart: It was done as a bond, but it was also supported with some loans from the state. That’s what it is.
Tego: Got it. The stuff that the folks in Mariposa have been going thru have been pretty tough because there was some concern that their assessment for the public improvement district was going to go from $1,200 to like $10,000. There was really some scary numbers thrown around. But the settlement that I saw in the journal, I also got a copy of the notice from the meeting of the public hearing, it looks like they’ve come up with some caps, and the homeowners there look like they’re going to be capped around $985 for a residential home. That’s great news for them. I have a home listed for sake out there on our team. It’s a beautiful area. If people haven’t been out there, it is worth checking out now that this is behind us. Time to think about it out there. The other thing I wanted to talk about was the market and what’s going on in the real estate market. In the Albuquerque area, we just got our stats out from the greater Albuquerque Association of Realtors. It goes over the month over month, quarter over quarter, year over year market stats. Obviously, we watch this stuff closely. The Albuquerque market area had a 30% increase in the number of homes sold year over year which was a big jump. That was for July 12, 2013. Big jump. Prices still bumped up a little bit, average price up a little bit. Stuart, up in Angel Fire, what’s your market? Let’s talk about Angel Fire a little bit and just your real estate market, and how are things been there?
Stuart: Things are good. We only had a big year in 2012. We jumped up home sale, and condo sales are both up 42% in 2012. So, they haven’t maintained quite that level. We’re down 2 homes if you look at what’s sold this year. So far we sold approximately 65 homes have been sold in our contract. And for that same period last year, it was around 77, so a little bit behind but we had such a big year 2012. Hopefully, we’ll be able to catch up by the end of the year. We average probably 90 home sales and approximately 35 condo sales per year in our market area.
Tego: In your market. What about prices? What’s been happening with prices? Obviously, like everybody, we went thru the shift in 06-07-08. Did you guys follow the same thing as the rest of New Mexico?
Stuart: We lagged behind. Everybody was saying we are a resort area and we should be different, so they didn’t really get reality for 08. It was about 09 before we started to see prices go down a little. Since from 2008 until now, on a typical residential home the pries are probably down 20-23% over what they were then. That has been holding steady now for the last couple of years. We are seeing sales prices come up and be negotiated closer to list prices now, so we’re seeing that for a while. If that stays that way, we might do at the end of this year. We might see prices start to even kick back up next year. The average price of a home has come down a little bit. We’re seeing sales more on the lower price range. Our average sale in 2012 was $318,000. Our average price for a home so far this year is $291,000.
Tego: I see. I kind of jumped ahead here, Stuart. I want to talk a little bit about you and what you got going on there in Angel Fire. You’ve been a real estate agent in Angel Fire, New Mexico for how long?
Stuart: I’ve been an agent since 2007. Prior to that, my background is I have an architecture degree and involved in a lot of interior architecture projects as a consultant across North America. When I first moved here and I got tired of traveling—and my wife has been in real estate for decades—so I hooked up with the real estate side. Now, my wife and daughter and I are a team here in Angel Fire. All I do is work with sellers and help market and list their homes. My wife and daughter work with the buyers and help them find the right property.
Tego: You’re doing the team thing like we are doing down here.
Tego: Of course, I work with my wife Traci, and we have a team as well. It works very well for us because we can really specialize in what we’re all good at and really help people out the best way. Sounds like with your architecture/interior design background, that’s great for sellers, I would suspect.
Stuart: Yeah, because sometimes when they’re getting ready to sell their homes and they need to make sure it’s ready, it’s not just as simple as doing staging and that type of thing, but also when we’re doing some construction work—we have a lot of deck issues here, it seems to be, because of the heavy snow fall. And the snow goes rushing off of the roof, so under the decks cause some damage. We get things like that. Then, interior-wise, just to make the home function and look the best to when you put it on the market. It’s like getting your car ready on e-Bay when you wash it and put it in a nice place and take a nice picture of it. We try to do the same thing for the home. My background does help with that.
Tego: Let’s talk about Angel Fire. We’re obviously here in Albuquerque. It’s for us a 3-hour drive, easy trip to get to—Angel Fire—but give me the elevator pitch on Angel Fire.
Stuart: From the location, if people aren’t aware exactly where Angel Fire is, we’re in northern New Mexico. You would travel from Albuquerque up to Santa Fe and then to Taos and we’re 25 miles east of Taos thru the mountains. We’re an alpine community, so it will look a lot like Colorado when you think about Colorado with all the pine trees and the aspens. We’re an 8,500-ft elevation base at the base of our village and at the top of our mountain, we’re 10,600. We are just across the valley from the highest peak in New Mexico which is Wheeler Peak at 13,165. We have a lot of the mountain, typical mountain activities. We have a ski resort, ski area with 73 runs, I believe, 2,000-ft elevation drop. We have a PGA championship golf course which we hold a lot of golf tournaments here. In the summer if you’re not skiing, we have world-class mountain biking. I mean world-class. We actually help the International UCI race here in 2005 which comes to the US every 7 years. They came to Angel Fire in 2005. These last 2 weekends we had the Gravity Nationals which is a professional downhill mountain bike race. The last weekend we had the Red Bull Dream Line which you’ll see on NBC in October. It was professional riders from all over the world that came to participate in that. Then we have hiking. We have lots of hiking trails. We’re right next door to the Carson National Forest which is a million and a half acres. We have that playground where we can ride 4-wheelers and horseback rides, wagon rides and all those kinds of things with cowboy dinners. Then we have fly fishing close to us. There’s hunting for people who like that. Predominantly, we have a fishing lake. That’s the predominant activities. For those people who like chamber music, we have the 30th Annual Music from Angel Fire concerts that start actually in about 2 hours. They will run thru September 1. That’s 35 musicians that play—they’re predominantly out of the New York areas but they play all over the world. The play Carnegie Halls. They play in London. They actually end up in Angel Fire for a 2-3-week vacation every year where they play chamber music. This year, our resident composer is Chick Corea. He’s had something like 16 Grammy Awards and he just competed with himself this last Grammy Award in a division, and he won. That’s good. That will be starting. It’s a unique opportunity for people to come here, enjoy the mountain air and be right up close with the musicians. You don’t have to be off in a distance.
Tego: Sounds like a nice time. That’s this weekend?
Stuart: It starts this weekend and goes for 2 weeks
Tego: Wow! Hey, Stuart, we’re going to take a break here. Tell people if they want to contact you, talk about Angel Fire directly, specifically Angel Fire real estate. How could they get a hold of you?
Stuart: They can call my phone number at (575) 377-2321 or they can just go online to kwangelfire.com and then they’ll find us
Tego: kwangelfire just like Kelly Williams
Stuart: Kelly Williams yeah
Tego: Got it. We’ll take a break. We’ll be back. We’ll talk some more about Angel Fire real estate. This is Small Business Saturday, and this is Albuquerque Real Estate Talk
Welcome back. This is Albuquerque Real Estate Talk on the Rock of Talk 95.9 FM and AM 1600. This is Small Business Saturday. This is Tego Venturi with Kelly Williams Realty and the Venturi team here in Albuquerque, New Mexico. This is the show where we talk about real estate in Albuquerque—today in some part of northern New Mexico here. I’ve got Stuart Hamilton with Kelly Williams Realty in Angel Fire. You’re not with our team, but you are with Kelly Williams realty with Stuart. Again, thanks for being here. You were just telling us about all the different things you can do there. It’s truly a year-round resort community in Angel Fire, correct?
Stuart: It is. We’re 4 seasons. We have the skiing and all the winter activities with the snowmobiling and snow shoeing and the sledding and all that that goes on in the winter. In the summer, we have the mountain biking and the golf, hiking and fly-fishing. In the fall, you come up here and view the aspens and hang out where it’s really cool, and there’s a lot less people around in the September-October timeframe so it’s an absolutely gorgeous time to be here.
Tego: Let’s talk about that since we’re kind of coming up in that time of year. When should people start thinking about doing that—northern New Mexico, colour drive? I don’t know what else to call it. The fall colours—coming up to see the fall colours in northern New Mexico. When should they think about doing that?
Stuart: The aspens always keep us guessing, but traditionally it’s the middle of September when they will start to turn. At that point in time, we’re always scared that they’re going to be gone before we know it. But usually, the best weekends will be the last weekend in September and the first weekend in October. We don’t really start seeing this snow until maybe—the kids always have to go trick or treating in the snow, it seems, but the snow’s gone the next day. That’s when we start to see some snow, but I would say the last weekend in September and the first weekend in October will be beautiful to take a drive up in northern New Mexico.
Tego: One of the beauties of skiing in the southwest United States in particular is yeah, we don’t maybe get the big snow like they get up in Summer County in Colorado. However, it’s very pleasant. I actually did some time myself in the Durango area back in the day called Purgatory Ski Resort. It’s a very nice sunny ski community. I know Angel Fire and Taos, for that matter, are similar as well.
Stuart: Yeah, it can get cold. When you watch the news in the evening, you’ll always see Angel Fire is the coldest spot. That temperature, beware, is taken at the airport. Nobody lives at the airport. It’s always about 10° warmer where we live. The higher we go in the mountain, the warmer it is because the cold air settles down in the valley by Eagle Nest Lake State Park and down at the airport is a lower area. So, whenever you see those temperatures in the winter, it doesn’t feel that cold. But during the day, it might be 20° below 0, it’s going to be 40-50° sometimes during the day, so we get some big swings. Its great skiing, and we don’t need as much snow in Angel Fire because we don’t have the big boulders and rocks that they have in the Rocky Mountains up in Colorado. Ours are a little bit tamer as far as the big boulders. So, 18-20 inches of snow, we’ve covered our terrain. We average about 210 inches of snow in in the mountain and about 150 down here in the valley.
Tego: The ski resort itself, the ski area, the ownership there, they’ve done some pretty substantial investment over the last—what would you say? 5 years?
Stuart: Yeah, the last 3-4 years actually, there’ve been a lot. Angel Fire resort—when you own property at Angel Fire resort, you’re automatically a member of Angel Fire resort. With that, you get the ability to use discounts—skiing discounts on golf and ability to use the country club which was only built 3 years ago to replace the old country club. It’s about a 27,000-sq. ft. building. It’s got dining facilities, a nice bar area, workout facilities, indoor swimming pool, all of that. And if you are a platinum member, which for only approximately $200 a month, you can be a platinum member of the resort which allows you to get free skiing and free golf for your entire family. You can actually bring guests on special guest cards. You get 20% off on any purchase you make at the resort. You get lift line privileges. You get to park close to the ski area. It’s an amazing benefit especially for people as close as Albuquerque where they can come and get that country club membership here for only $200 a month.
Tego: Sounds like you and I need to talk. They did put in a high speed chair lift here a few years ago, correct?
Stuart: We have high speed quad lifts in the front and the back. The front takes about 11-12 minutes to get to the top on the front side. And it’s about a 9 minute ride on the back. Those are both high speed quads. We have a couple of smaller lifts on the front for the bunny slope in a smaller learner hill. And we have a moving sidewalk for the area for the younger skiers who couldn’t get on the chair lift as well.
Tego: They’ve really geared this toward a family resort. So, they have the 2 beam for the smaller kids, and they have a lot of different things to do. It’s not just skiing in the winter, correct?
Stuart: Correct. There’s sledding. There’s the 2 beam. There’s night skiing now. We’re the only resort in New Mexico that has night skiing. Our night skiing actually starts at 4:30, but it gets dark about 5:30, so that is lit and goes for a while. Then there’s all kinds of activities from the horse-drawn sleds and snowmobiling. There’s everything for the entire family. It’s not a large resort where you get lost. We have the front side and we have the back side. So, you can always find your group. It’s easy to find. There’s restaurants on top of the mountain, on the back side of the mountain. There’s lots and it’s really easy to get around.
Tego: I took my kids up there when they were really young, like 2 and 3 years old, and put them on skis. They did great. It’s a great family ski area. Then, in the summer time again there’s all kinds of stuff going on. They put a zip line in, is that right?
Stuart: They did. Just 2 years ago, they put a zip line in. we have 6 station zip lines, so in 1 station there’s dual lines. You can race your friend and it’s on top of the mountain. You take the chair lift up and then it’s all cantered around the top of the mountain. It’s about a 3-4-hour adventure that they take you on. It’s been very successful. In fact, if you want to go, you need to call at least a week in advance and make some reservations because it’s just been very popular. I talked about the extreme mountain bike hill and all that, but we have a lot of mountain bike trails in what we call the green belts. 39% of Angel Fire is green belt which will never be built on, and that’s where our hiking trails and biking trails are, so they’re very family friendly biking trails that can go thru almost flat areas of the green belt, and then you can decide how much you want to bite off on by how far up you go. So, it’s very family friendly.
Tego: Since this is a real estate show, let’s talk about real estate in Angel Fire. What is the population like? How many year-round residents? Obvious, it’s a resort community, but tell me a little bit about the mix air and the mix homes available in that area.
Stuart: This is predominantly a 2nd-home market. There’s 1,700 homes in Angel Fire approximately, and approximately 850 condos. Approximately 200 homes are lived in full time, and about 85 condos lived in full time. The population is actually 1,200. What I tell people is we’re a town of 10,000 with 1,200 full time residents because on the weekends, it blows up to where we have—the condos are full, the 2nd homes are full and the hotel is full and we have 10,000 people in town. So, our infrastructure for the water, sewer, police, all that has to be able to take care of a town of 10,000 but only 1,200 of us live here full time.
Tego: If somebody was interested in—they want to get that 2nd home, they want to get that resort place, a place they can come and just get away from either Albuquerque or—I know you get a lot of people from other states as well, what are they looking to spend? Earlier you said, the average is 290-300
Stuart: 300 yeah
Tego: If somebody just wants to get in a bare bones condo, some place they can go and come up 4, 5, and 6 times a year. What are they going to be spending for a something like that?
Stuart: Typically, the 2-bedroom, 2-bath condos will be in the middle range which are more popular, and those are going to range anywhere from around 89,000 to probably around 150,000, but it would depend on the age and location and the amenities of the condo. Then, a lot of times people are going to rent those out when they’re not here. We have a huge rental market because we only have the one resort. We have the Bellagio Angel Fire which is the main hotel. So, we do a lot of business in condo rentals and home rentals. As a rule of thumb for somebody renting their condo is that if you pay cash for your home or condo and then rent it out, you could cover all your other costs like taxes property, the insurance, your membership fee in HOA, all those thing you could cover with rental fees. You can’t expect to cover more and make money with that but that’s the rule of thumb. For a home, it depends on if you’re looking for a 3-bedroom, 2-bath. Of course again, that’s going to average around 300,000 right now and then it goes up. We have homes up to 3 million. Just depends on how much land, what you want the home to look like, how many square feet. But a typical home is about that.
Tego: Got it. So, there’s a wide range when it comes to real estate. Stuart, we’re going to wrap up here. Again, let’s get your contact information out there if somebody wants to talk to you about real estate in the Angel Fire area, how do they get a hold of you?
Stuart: Call my phone number at my office. It’s (575) 377-2321. The website you can find us on is kwangelfire.com
Tego: Great. Stuart, thanks for being the guest. This is Tego Venturi with Kelly Williams Realty and the Venturi team in Albuquerque, you can catch me on at (505) 933-6881 if you want to talk about real estate in Albuquerque. Have a good Saturday
All About Home Inspections.
Tego: Hi, and welcome to 95.9 FM and AM 1600 “The Rock of Talk.” This is “Small Business Saturday,” and it is “The Albuquerque Real Estate Talk Show.” And I’m your host Tego Venturi with Keller Williams Realty and the Venturi Team. And we’re going to talk up… actually we’re going to talk up Home Inspection today. I’ve got a guest today to kind of go over that, Scott Herman with Albuquerque House Detectives is here joining me. And we’re going to go over what Home Inspectors do, why you need one, and how do work that into your home purchase.
First, I want to go with some of the numbers, but Scott anyway welcome — thanks for being here.
Scott: Good morning, Tego. Thank you very much for having me.
Tego: You’re welcome. It’s interesting we… Scott, you’ve been in this business, well how long now you’ve been doing Home Inspections?
Scott: For about 7 years.
Tego: Yeah. You’ve been around a while. You kind of survive through our little downturn that we had here.
Tego: And obviously you’ve come out and stay busy. We’ve definitely have an uptake this spring in business; I’m assuming your business is done the same, is that true?
Scott: No, we definitely have. It’s incredible what’s been taking place this year.
Tego: Yeah. Well, we’re just talking about this before we came one the air, but I run the numbers because July numbers just fresh off the presses here. You’ll probably see it in the paper about a month from now, but I just run the numbers myself. Don’t laugh at me, Scott, but it’s kind of interesting. We’ve had Euro over year July 12 to July 13 — 30 percent increase in the number of home sold 31 percent.
Tego: And single family about 22 percent, over all about 30 percent. That’s the total all Albuquerque and surrounding areas, everything that’s part of our border basically, our Real Estate board and MLS. Albuquerque little better than Rio Rancho, there’s a big story on Rio Rancho and prices slipping a little bit. And when we look at prices, and I look at that as well, we’re still just kind holding steady. We’ve seen a little bit of bump up year over year, but when you look at month a month there’s not a whole huge difference in prices. But obviously suppliers down demanders up, that is always going to help our market from a pricing standpoint and appreciation standpoint.
Scott: Certainly helps me.
Tego: Yeah. I mean a lot of home selling.
Tego: And we’ve seen some new inspectors come on lately and people I haven’t been familiar with. Scott, I thought talking about Home Inspections and what that tells about would be a great topic. Again, I appreciate you being here. Let’s just get right into it. What does a Home Inspector do? And what’s the whole concept behind having a profession inspector come in and look through a house, prior to a purchase for a buyer?
Scott: Well, Tego, basically a Home Inspection it truly is just a visible – it’s an evaluation of the visible and accessible areas of the home including all the components: you have the plumbing, the heating, cooling, electrical. It’s essentially intended to give a client whether it’s a buyer-seller, or even a current Homeowner, a better understanding of the home general condition. Now, real quickly just to expand on what a Home Inspection is and is not.
Scott: It’s not an appraisal of the property value.
Scott: Nor does it address the custom for whatever the potential repairs are. And it also doesn’t guarantee that a home will comply with Local Building Codes, and also keep in mind that a Home Inspection it’s not a technically exhaust of inspection, if it were it will cost substantially more. There’d be more case specific type of coming in.
Scott: It’s a full plumber, full licensed electrician, roofer, and things of that.
Tego: One thing we do when we’re working with a, let say a buyer and purchase agreement will request the full inspection. That’s kind of where you come in as you do that full Home Inspection. But let say you get in there and you find that maybe there something questionable about the furnace for example. And at that point, we could still bring in a professional that specializes in HVAC.
Scott: Sure, absolutely.
Tego: Same for the roofer something like that as well.
Scott: Yeah, like the furnace if we find we have a high carbon monoxide reading, well then we wanted to have somebody come in and take a look.
Scott: Some of us have specialized equipment where we can look inside the heat exchanger or burner chamber, to see if there’s anything crack up in there. But yeah, we always have the option and the ability to defer to a licensed professional.
Tego: Sure. What is that inspection? You go in you do an inspection. How long does that take?
Scott: Well, for a Professional Home Inspector just based on the size of the home, an average home in the Albuquerque market let say around 1800 sq. ft., you probably want to allow about 2… maybe 2 ½ hours.
Tego: And usually you’re not involved in them, the contract part of the real Estate deal. But usually, you come in after there’s been a purchase agreement signed, and this is one of the contingency that we have in our purchase agreement that the potential buyer can have the home inspected by a professional. Now, would you recommend that that Home Buyer attend the Home Inspection with you as you’re going through the house?
Scott: I personally do, just for the simple fact is when you see something on paper, a lot of times it’s far more intimidating on paper than what it truly is in person.
Scott: It just depends on somebody verbiage, how they write things up; and for myself, if I can explain to a potential buyer “hey, this is the situation that’s happening.” A lot of times we can take that anxiety level down a notch.
Tego: Sure. You encourage them to kind of follow you around as you’re doing your inspection, and kind of see what you’re seeing.
Scott: Sure, absolutely. I don’t mind if they follow me around at all. The only thing that most Home Inspectors will ask of a client is try to reserve their questions till the end.
Scott: Because we work in a systematic way. We’re very methodical when we go throughout the house. We start in the same place every time; we finish the same place every time.
Tego: Well, and that’s a very good point because some people can say, “Well, I can do a Home Inspection or I can have my friend who’s a contractor look at the house.” What would you say to that, in the sense of why can I just do the Home Inspection myself?
Scott: Well, somebody could but the reality is it’s probably not a good idea. I mean, I do home Inspections for general contractors, for architects, for engineers all the time; because they don’t have the expertise or even the specific tools to do a full Home Inspection, and to be able to identify potential issues.
Tego: And you’d said this earlier, the systematic approach so that –
Tego: You’re not missing things.
Scott: Yeah. It’s kind of like a fireman, how a fireman will go in and they have a right hand search. That’s the same way that I approach an inspection. When I go into a room I start at the right side and I work my way around the room, and it’s the same way that I do my roofs – same way every time.
Tego: Sure. We had talked recently about this, but tell me again what does a Home Inspection not include? I mean, are you… I know the answer to this but it’s not cosmetic, correct or not?
Tego: And does necessarily pointing out mismatch painted.
Tego: Right. Or dirty carpet or ding up baseboard, correct?
Tego: I mean, this is a structural, mechanical – is that how you would put it?
Scott: Yeah. Basically, what we’re doing is we’re looking for things that could affect the value and or safety of the home.
Tego: Right. Okay, got it. And then, the big question and again usually a Home Inspection is part of a purchase agreement or a purchase contract. How much is that Home Inspection cost?
Scott: Well, I would say the average in the Albuquerque areas going to run anywhere from around 235 maybe up to $400.
Tego: Got it. And that’s a full Home Inspection and that include again a general overview of the property, but does not include maybe some of the specialize things, like a… let see give me an example, a radiant heat.
Scott: Yeah. A radiant heat, a lot of times people are requesting thermal imaging scan of the floor.
Scott: That’s more a specific type of inspection. Same thing like a termite dry-run inspection or pool inspection, or I’ve even done what’s called a “spool inspection,” which is like a spa pool.
Tego: A spool? I like that got it.
Scott: There are specific including like radon.
Tego: Yeah. On our end, as the realtor there’s a whole basically menu of items that you can look at. Certain part of town is a good idea to get a Radon Inspection, always necessary to get a Termite and the Dry Rot Inspection.
Scott: Inspection too in some location
Tego: Inspection again that could be an extra thing. A Sewer Line Inspection that could be something again separate. These are over and above the standard thing on a regular full Home Inspection like you do.
Scott: That is correct.
Tego: Got it. You put as report together as a written report, in your case you include photographs.
Scott: We do.
Tego: You do.
Scott: Most definitely do.
Tego: You photographing what — any defects or issued that you may want to point out to both the buyer and seller?
Scott: Yeah. I mean, there reference pictures that will take to show maybe an up close defect, and then a distance pictures to give a point of reference. We’ll also take pictures of model numbers and serial numbers. You’d be surprise we’ve had people that have purchase homes gone in the close, did their walkthrough and everything, and come back and there’s a different refrigerator in there.
Scott: Well, the only proof they have other than we think… we know it’s a different but we don’t have proof, well I have a model numbers and serial numbers.
Tego: I see, and you document that all?
Tego: In your Home Inspection. That’s wonderful.
Scott: Kind of funny in that stuff.
Tego: Yeah, that’s unfortunately. Unfortunately, we’re kind of a litigious world that’s why there is much paperwork involved in the Real Estate –
Tego: Transaction, make sure… everybody’s being fair and in getting a fair deal.
Tego: Scott, if somebody want to get a hold to you – first, let’s do that. I should have done this at the top, but how does somebody get a hold of Albuquerque. Is Albuquerque has detectives?
Scott: Yeah, Albuquerque has detectives.
Tego: Got it. And it’s –
Scott: The telephone number is 505-261-8998.
Tego: Okay. Do you have a website?
Scott: I always do it twice. That is just the way I am.
Tego: Go ahead.
Scott: 505-261-8998, and as far as the website we’re actually working on developing a new website.
Tego: Got it. Okay, sounds good. And when we come back, we are going to talk… well I got a list here that you’re going to really love.
Tego: its 5 questions you should ask your Home Inspector when you’re going through your Home Inspection. And actually, I think they’re pretty good. Well, as well want to talk a little bit about Home Warrantees and what those are all about and what a Home Warranty entails. That’s a totally different item.
Tego: We can talk about that. And again, this Tego Venturi with Keller Williams Realty, the Venturi Team – you can get a hold of me on our team hotline at 505-933-6881 or you can visit my website at wecomehomeabq.com, its welcomehomeabq.com. You can do Home search there, or if you just want to message me you can do it through our website.
We’re going to take a break here. We’ll be back in a moment with the Albuquerque Real Estate talk on “Small Business Saturday.”
Welcome back to ‘Small Business Saturday.’ This is Tego Venturi with the Venturi Team of Keller Williams Realty. And this is “Albuquerque Real Estate Talk.” Today, we’ve been talking with Scott Herman with Albuquerque House Detective, who is a Home Inspector and kind of talking about what a Home Inspection is all about: why you need it, what it does, and how important it really is to understand what you’re getting into in a home purchase.
When somebody’s buying a home, Scott, we do – Home Sellers do a property disclosure where they supposed to tell everything they know about a house. However, the Home Inspection is going to find those things that they just don’t know that they don’t know — correct?
Scott: Sure, absolutely.
Tego: Yeah. I’ve seen the people are just meticulous in their home maintenance and taking care of their house, and still come up… you guys come in you do a Home Inspection, and they find things. And some people get a little frustrated because they’re very… and you’ve seen that I’m sure.
Scott: Sure, they take pride on their home.
Tego: Yeah. They take a lot of pride in their home, and things just come up and. Let’s talk about that, the things that would come up in Home Inspection. I did a video blog here with Jane here…my team, a few weeks ago about what are the common things that come up in Home Inspection, But I want to run by you Scott. What do you see as the most as most common things in the Albuquerque area and that come up in Home Inspections?
Scott: I would say the two most frequent things that come up going to be deferred maintenance on the roof.
Scott: And then also supply valves that are seized underneath sinks and faucets, just because of the hard water we have.
Tego: I see… roofs, yeah, and that’s what we decided too. It’s always the roof because nobody thinks about the roof until it leaks, correct?
Scott: Right. And the reality is even if you have repairs done to the roof, most Homeowners do not get up on the roof to check the validity of the repairs.
Tego: Let’s talk about just some maintenance things about that. What do you recommend people do for the roof? If let say it’s a standard tar, gravel, peach flat type roof that we have lot of here.
Scott: Sure. Well, as long as somebody has the capacity to do it themselves, I recommend that they get up on a roof at least twice a year: one in the spring and one in the fall.
Scott: You want to get up there before Monsoon rain hit.
Scott: And you want to get up there before, well somewhat a little bit of snow we get. You still want to get up there and take a look at it –
Scott: Before that.
Tego: Well, and of course we had what here now, we’ve had a serious Monsoon Season this year. And of course, before that it didn’t rain for 6 months.
Tego: I’m sure everybody found out all about the roof leaks that they didn’t know existed here over the last month.
Scott: Yeah. And it’s quite telling doing the inspections when people haven’t been up on the roof.
Tego: Right, yeah.
Scott: The lack of maintenance is quite evident.
Tego: Good. The home buyer is you do this report, you do a written up report. You give us photographs. You give us report of items, and you categorized those items based on must do or just a recommendation. Or how do you put your report together and what do you tell the potential home buyer.
Scott: Yeah. Essentially, everything in the Home Inspection is going to be a recommendation. Now, obviously if there’s going to be some blatant safety issues, we’re going to call those out and say, “Hey, Mr Home Seller this is something that you need to do just for the safety. Not only –”
Tego: Smoke detectors.
Scott: Yes, smoke –
Tego: Carbon monoxide –
Tego: And house kind of stuff, yeah. Okay, yeah. The serious stuff you’re going to call that out is just must do.
Scott: Yeah, must do. And the thing that often gets overlooked and I know a lot of the Home Inspectors do not check them, is the temperature and pressure relief valve. Their explanation is, well it always leaks. The reality is it’s a safety device.
Scott: And if it always leaks once you tested, well that means it’s defective.
Tego: This is on the hot water heater?
Scott: That is on the hot water.
Tego: Okay, got yah, yeah.
Scott: Right. The temperature and pressure relief valve, its design to discharge if the temperature builds up too high or the pressure builds up too high.
Tego: This is a question that I’ve seen and actually just come up is, can a home fail a Home Inspection?
Scott: No. there’s quite literally no pass or fails to a Home Inspection.
Scott: It’s just our interpretation of things that are defective, deficient that should be addressed at some point.
Tego: One of my contractor, the friends that I know, he says, “Everything can be fix.”
Scott: That’s right.
Tego: Everything can be fixed.
Scott: I’m up with that same mind-set.
Tego: Yeah. And I mean, we had and Adobe in the South Valley where the foundation had just basically gone and it got fixed. And they sold the house. There’s no pass or fail it’s just certain things should be addressed and maybe certain things don’t necessarily need to.
Scott: Right. And I just quickly to interject, the Home Inspection is not a Code Compliance Inspection. Now, a Home Inspector were generalists, we have a broad range of knowledge but we’re not Code Inspectors. From that standpoint, could a licensed plumber come in and say, “Hey, that there’s a problem here,” or could a City Inspector come in and say, “Hey, there’s a problem here potentially.” And it’s a code violation… sure. That is always a possibility.
Tego: If you see something that let say out of code now, although, at the time it was to code. Like let say the two wire system, we have a lot of older houses from the 50s that have a two wire electrical as oppose to a three wire grounded system.
Tego: I mean, you would point that out but that’s not necessarily a ‘must fix’ item, correct?
Scott: Right, It simply because it was consistent with the way that homes were built at that time.
Tego: Got it, I see. Let’s talk about Home Warrantees, Scott, unless you’d something that we need to talk about on Home Inspection. I just want to make sure but I did want to talk a little bit about Home Warrantees, because that kind of can be a mystery subject for a lot of people.
Tego: Okay. What is a Home Warranty?
Scott: Well, basically a Home Warranty is… it’s an agreement between two parties for a fee.
Scott: That essentially states that if something becomes defective during the term of the contract, that the Home Warranty Company would take the responsibility of having those items repaired or replaced, or even in some circumstances will provide a cash pay-out in lieu of a repair or a replacement.
Tego: Okay. It’s similar to what you would get on a vehicle if you buy and extended warranty, if you go buy a computer at Best Buy and you can but their extended warranty. Same kind of thing but it’s for your home. What type of things does it cover and not cover a Home Warranty? I’m sure there different levels, correct?
Scott: Sure, absolutely. There’s Home Warrantees that cover everything from the plumbing, the roof, the electrical, the appliances, the cooling, the heating — all of your major systems and components in the home.
Tego: Right, okay. And what if somebody has like a swimming pool or a spa, something that maybe is not every home can. They get covered on that type of equipment as well if they want?
Scott: Sure. They can always expand on the coverage of most reputable warranty companies have, options for pools and spas and even extra refrigerators or ice-makers or things of that nature.
Tego: Yeah. And I know there’s a lot of Home Warranty Company’s out there. Obviously, there are not all created equally. You want to make sure you get somebody that’s got a good financial backing, that’s just like any type of insurance. You just want to make sure you’re getting somebody that can actually take care of your issues, if something does come up. Generally, what do you see the cost of Home Warranty. I mean. I got a general idea, but what have you seen out there, Scott?
Scott: Most Home Warrantees that I’ve seen range anywhere from around 300 to 4 – 450.
Tego: Yeah. That’s about what I’ve seen as well. And again, it depends on… I think some of it has to do with the type of coverage with what type of coverage. We talked about roofs here earlier, that one there some great area there, because some companies are not willing to do too much coverage on the roof depending on the situation.
Scott: Right. And quite frankly a lot of that is understandable, especially with tile roofs and building codes where 30 lbs. Felt Papers okay. Obviously, a Home Inspectors not going to be lifting up tiles on a roof to see what the condition is. And a lot of times that becomes an issue.
Tego: Sure. I wanted to give some folks some tips here, because I found this out on the web on truly.com which is one of the big National Real Estate website. And it was the 5 questions that you could or should ask your Home Inspector. I’m going to put you on the spot here, Scott. And this is… I thought this was pretty good ideas.
Tego: One of them was how bad is it, really? When you’re pointing something out to somebody, obviously you as a Home Inspector – most inspectors I know are pretty even . They don’t… they’re not alarmist, but if somebody’s were come to you and ask you how would you respond?
Scott: Well first off, let me say that a lot of this is going to be subjective.
Scott: How bad is it? Well, for me… how bad is it? It’s going to be different than how bad is it for you; because skill set, my level of ability to repair something maybe totally different than yours.
Tego: Sure, and then…
Scott: I’ll refer to it in a sense of do you need somebody professional to take care of it, or could you probably get this done yourself.
Tego: And that was going to be in my next question. Do you make recommend –
Tego: That’s okay. No, it’s perfect. It leads right into it. Do you make recommendations if something should be repaired by a licensed trained person, or would it be… could you say, “Well, I think a handyman could fix this?” Do you draw that line there or do you not go there when you’re making recommendations on repairs?
Scott: Well, I tried to be as helpful as I can to the potential buyer or even to the seller, when it come to matters of repair. If it is something that I believe would require a license, let say it’s a plumbing issue… well, you probably want to have a licensed plumber to do that or a licensed electrician.
Tego: HVAC electrical plumbing.
Scott: Yeah, for some major.
Tego: Those are big ones… roofing events, yeah.
Scott: Major system or component you want to have a licensed professional to do it. If it’s something like put trim mouldings back on…
Scott: Because somebody could stop their, well an average Homeowner could probably take care of that.
Tego: Sure. Okay, got you. That was my next question, who should I have fixed that? I just asked it a different way, and then this is an interesting one. If this was your house what would you fix first or what would you have fix, and when would you have it done? And I guess what that saying is if somebody was asking you to prioritize the things that you found, how would you answer that?
Scott: Well, for me it’s pretty easy because I always start with the top down –start with the roof. Anywhere you could have a water infiltration point, if it’s going to be a roof, a roof structure – those are the things you want to get taking care of first. Of course, you want to take care of any part of the envelope above the house. Any of the exteriors type stuff first, unless, of course if it’s a safety issue inside the home.
Scott: Like a water heater or furnace.
Tego: Smoke detectors, yeah, I got yah. Okay, and then can you show me how to work that? Do you ever get that when you’re doing Home Inspections?
Scott: We do. In fact, I just recently did a house in Tanoan where the buyer… let just say she was not an avid cook.
Scott: Okay, I have to show her how to work a microwave.
Tego: Okay, well… interesting, okay. Well, Scott, we need to wrap it up here, but I appreciate you being here. And Scott, give your phone number again for – again, Scott Herman Albuquerque House Detective and give us your phone number.
Scott: Well, thanks again Tego for inviting me here. My telephone number is 505-261-8998 — that’s 505-261-8998. Thank you so much.
Tego: Thanks a lot. Again, this is been “The Albuquerque Real Estate Talk Show,” and this is Tego Venturi with the Venturi Team and Keller Williams Realty. Have a good Saturday.