Santa Fe Real Estate market update.
Albuquerque Real Estate News
Here is the list of open houses scheduled for this weekend. Here are a few tips and etiquette to keep in mind if you are going to go out “Open House-ing”.
- Do a little home work before heading out. Make a plan where you want to go and what you want to see on-line first.
- Be polite and respectful to the host and home. People are letting you in their private space, respect that. The host (Realtor or Owner) will most likely want to get your contact information, give it to them, If you already have an agent just let them know.
- If you find a home you like, have YOUR Realtor schedule a follow up showing. This will avoid confusion on who is representing you.
- DON’T make yourself at home… think of it as visiting a museum. Look but don’t touch. Keep your kids with you.
- Hold your criticism. Not every home is for you and thats fine, just wait till you are back in your car to share.
Happy house hunting…
You can also browse out Open Houses Map.
|# of Bedrooms:||4|
|# of Bathrooms:||3|
|Area:||121 - Paradise East|
|Subdivision:||Stonebridge Un 03B|
|Description:||Welcome to a Meticulously Maintained and Upgraded Home in desirable Stonebr...|
|Listing Office:||Keller Williams Realty|
|Last Updated:||December - 19 - 2014|
|# of Bedrooms:||4|
|# of Bathrooms:||3|
|Area:||51 - Foothills South|
|Subdivision:||Casa Grande Estates Un 01|
|Description:||Amazing 1 Story FOOTHILLS Property available for quick move in!! Less then...|
|Listing Office:||Coldwell Banker Legacy|
|Last Updated:||December - 21 - 2014|
|# of Bedrooms:||3|
|# of Bathrooms:||3|
|Area:||100 - North Valley|
|Subdivision:||Las Colinas Del Norte|
|Description:||Wonderful 3 bdrm 2 story KB home in Las Colinas Del Norte! Amazing dÃ©cor...|
|Listing Office:||Re/Max Alliance, REALTORS|
|Last Updated:||December - 21 - 2014|
|# of Bedrooms:||3|
|# of Bathrooms:||2|
|Area:||150 - Rio Rancho MiD|
|Description:||**Open House Friday 12/26 thru Sunday 12/28 From 1:00 to 4:00** Newly updat...|
|Listing Office:||Realty One of New Mexico|
|Last Updated:||December - 22 - 2014|
|# of Bedrooms:||3|
|# of Bathrooms:||2|
|Area:||21 - ABQ Acres West|
|Subdivision:||Eagle Rock Estates Un 04|
|Description:||great location, remodeled bathes, open living, large dining, architectural ...|
|Listing Office:||Re/Max Elite|
|Last Updated:||December - 22 - 2014|
Corrales New Mexico homes for sale present great options in home ownership right now. It’s a beautiful time to visit Corrales with the fall harvest in full swing, Gus Wagner’s roasting green chiles, and the trees just starting to change color. If you’re not familiar with Corrales, it’s adjacent to the northwest corner of Albuquerque below Rio Rancho and next to the Rio Grande. Corrales is a slice of rural just minutes from most everywhere. There are condos for sale in Corrales that sit on the hillside looking out over the valley and Sandia Mountain and for some, this is the perfect home with low maintenance… sort of a great lock and leave concept, too.
When most people think of Corrales homes for sale, they think of horse properties and land. Corrales certianly does have it’s share of horses, along with sheep, chickens, goats, cows, llamas, dogs, cats, and other animals. In general, the lot sizes in Corrales are an acre or more. The village now prohibits subdividing parcels into anything smaller than an acre with the intent of keeping Corrales rural.
With the balloons in the air, many have ended up in Corrales and this is how some find this treasure of a Village. If you would like to learn more about Corrales, horse properties, or other rural places to live in the Albuquerque Metro Area, please call or email. We love showing off homes for sale in our area!
Home Lending in Albuquerque
Albuquerque Real Estate Talk Sept 13, 2014
Tego: Welcome to Small Business Saturday and Market Maker Risk Takers here on the rock of talk 959 FM/AM 1600 KIVA and this is Albuquerque Real Estate Talk. This is where we talk about residential real estate in the Albuquerque area and I’m your host with my co-host. I am Tego Venturi with Keller Williams Realty and my co-host Tracy Venturi with the Venturi Team and Keller Williams Realty. Well good morning Tracy!
Tracy: Hey good morning Tego! We’re always happy to be here on Saturday.
Tego: We have a guest today, we’re going to talk about home loans and you want to introduce our guest?
Tracy: Sure this is Shawn Stringfellow! Welcome to our show this morning! Shawn’s with Loanstar Home Lending and we appreciate you being here.
Shawn: Well thank you for having me, I appreciate it.
Tracy: Yeah! So Shawn and I recently did a loan together, he helped out a buyer and pretty much did an amazing job and we thought it would be important to have him come on the show and share with you some of the knowledge so we’re going to learn a little bit more about what you do together here this morning.
Tego: Shawn tell us a little bit about your background, you were telling us before the show here you’ve been in the real estate business and somewhere, another for quite a long time, but tell us your background.
Shawn: Yeah, I’ve been in the real estate business here in Albuquerque for over 30 years. I started my career in title when I was in college actually right out of high school. I worked in title for about 20 years and then for the past 12-13 years I’ve been in lending and now I’m branch manager for Loanstar Home Lending in Albuquerque.
Tego: So you know, one of the part of the home purchase process and we talk about this all the time there’s a partnership and it’s interesting coz you hit on two of the three, one of them is a realtor, one of the is the title company and of course the third is the lender. And we all play our roles, us as a realtor and you the lender, a very important piece. So what does a lender do for the client or what does a mortgage broker, in your case mortgage, what’s the right term we call it?
Shawn: Loan officer, lender, it goes by a lot of different things but our role in the transaction is to get your transaction on the opposing table, basically, I mean you guys write the contract, you negotiate the contract and our goal is to drive that bus to the closing table.
Tego: Sure, sure, sure. And that, in part that processes you help the folks get their loan application in place, basically put the financing in place when they go to put an offer on a property they are basically a cash buyer to a certain extent because they’re going to have a loan to be able to purchase that home.
Shawn: Right, if you don’t have your buyers pre-qualified or pre-approved by the time you’re showing them property, you should.
Shawn: I mean that’s a really important thing because it’s become a very complex and intricate process now a days to go through the home lending process.
Tracy: We have found that out haven’t we? The term mortgage broker versus banker, is there?
Shawn: There’s a difference, so I started my career in lending as a mortgage broker and what a mortgage broker does is sells their loans to a wholesale lender. A lender or a correspond that lender, we fund our own loans, we have a line of credit that we fund that off of and then we either sell it to Fannie Mae, Freddie Mac or to larger banks.
Tego: And I think people don’t quite understand, they think they go out get a home loan and it just sits at the bank or wherever it is, but most loans are “sold off,” correct? To some bigger pool of investor, correct?
Shawn: Yeah, 90% of the loans are sold off, we can service loans, so there’s three things, you’ve bank, traditional bank that you can go get a home mortgage from, a mortgage lender, that you can go get a mortgage broker. I think the best of the three would probably be the mortgage lender, they have a little bit more flexibility.
Tego: I see.
Shawn: We make the judgment calls on the underwriting.
Tracy: So one of the things we often talk with home buyers is about putting a financing strategy in place. We don’t usually call it pre-approval. We talk about a financing strategy and I know that when you meet with somebody for the first time, you really probably do a lot of digging, to find out what they have to bring to the table, so you can put together the best possible loan for them.
Shawn: That’s correct, when I first meet with a client, I dig, I dig deep because I don’t want any surprises. So what we do, I get them to where they’re fully credit approved by the time I hand them off to use the realtor. There’s no surprises, you get a property, an appraisal and we’re done.
Tego: Got it! And just so you know if you just tuned in you’re listening to Albuquerque Real Estate Talk here on KIVA Radio. This is Tego Venturi with Tracy Venturi, of the Venturi Team of Keller Williams Realty and we’re joined by Shawn Stringfellow from Loanstar Home Lending here in Albuquerque and Shawn, if somebody wants to get ahold of you, talk about loans, how do they do that?
Shawn: They can reach me on my cell any time, you know I work on nights and weekends just like you guys do, so my cell number is 505 203 6506.
Tego: So the pre-approval process or the pre- qualification and I know Tracy, we don’t like using that term pre-qualification when we’re talking with folks because it does sound a little like “Oh you don’t qualify,” well, there’s a whole financing strategy and there’s a lot of loan programs out there and not not one loan program is for everybody correct Shawn?
Shawn: Correct, there’s a lot of product out there, as far as loans go, and so what my job is, as your partner in this, is to figure out which is the best product for your client and I meet face to face with your clients. I go over whatever box they fit in, whatever loan program they fit in and if it’s more than one they have a choice and leave that choice up to them.
Tego: So what type of stuff, if somebody calls you up or let’s say they meet in person, what type of information are they going to need to have or bring to you initially so you can kind of start that loan process.
Shawn: Typically it I two months of bank statements, two years tax returns with W2’s, 30 days’ worth of pay stubs, that’s a good place to start but that’s not all the stuff that we’re going to need. What I do, you give me somebody that you want to go through the process, I will send them a list of documentation before I even meet with them and give them a couple of days to gather that information so that when they come into my office, they have a stack of papers for me to go through.
Tracy: Great! So going back to the different types of loans, so just because I know you, I know you do a lot of different types of loans. What kind of categories for people that maybe if it’s a house that needs fixing up, if they’re a veteran, if they don’t have much money down, so what kind of things do you work with?
Shawn: So we run the gamut, so we have the first time home buyer programs with the state bond authority, New Mexico Finance Authority. We also have another first time home buyer program that’s through another investor of ours, it’s a little bit more lenient than MFA so if they don’t fit in the MFA box then maybe we can get them into this other program. We do rehab loans, we do construction loans, we run the gamut, so we do VA, every product out there, we probably have and we’re adding more and more every day.
Tracy: Great! New construction loans are kind of a specialty in on of themselves, aren’t they?
Shawn: They are and I am a construction loan specialist for years at Wells Fargo, so I like doing those, those are fun for me.
Tracy: Yeah, so you do have a construction loan and then another loan for that people or is there a one-time loan or…
Shawn: Yeah, there’s a one-time closed loan that we have right now that saves the borrow tons of money, they go through one closing. Construction phases that works like regular construction loan they take draws with their contractor then it turns into their permanent financing when we get a certificate of occupancy.
Tracy: That’s great! I know that type of loan went away for a while, I’m glad that it’s back! It does save a lot of money.
Shawn: It did and there’s a lot of product that’s coming back on the market that we saw go away.
Shawn: So there’s a lot of niches coming back.
Tego: So let’s address that, we’ve gone through some interesting changes, say in the last, 8 years and since 2008 when really the whole mortgage world got turned upside down, and you know there was a time there where getting a home loan was quite a process and I’ve been hearing this from other people, including you that it’s not quite as let say…
Tracy: The rules have relaxed a little bit.
Shawn: They have.
Tego: And you said something before we went on air that Fannie Mae and Freddie Mac have change some of their standards a little bit, correct?
Shawn: Not quite yet, there’s a proposed rule with both of them right now to relax the rule. Right now if you’ve had a bankruptcy for closure short sell you have to wait 7 years to get conventional financing. What they’re considering doing is shortening that waiting period to either 4, 2 years. And so that’s probably going to be in the next couple of months and to make that announcements so that’s going to help a lot of people get back to home ownership.
Tracy: And so it’s just on conventional loans?
Shawn: That’s on conventional loans. Now for going on government, VA, FHA it’s 3 years.
Tracy: So that’s pretty quick after financial difficulty.
Shawn: It is and FHA got a program, there was a document at hardship the waiting period is 1 year so there’s a process to go to get through that but I’ve done those that there you can get through.
Tracy: That’s great news because there were a lot of people affected because of the down turn that credit were affected, good people that just got caught.
Shawn: Exactly, I mean we all survived the storm, thank God! But there’ a lot of people that didn’t and their coming back now, so I think they need the chance to get back into home ownership.
Tracy: And so a great part of that is houses are still priced well for home buyers.
Shawn: New Mexico’s you know, very good housing market, were very affordable and interest rates are still in historic lows.
Tego: Yeah let’s talk about that, you know we talked about that last week on the show where interest rates you know they went back down again. And what are we looking at? What can people expect to pay in an interest rate, let’s just talk 30-year fixed you know, coz I know there’s a brunch of different things out there…
Tracy: With decent credits…
Tego: With decent credits, right…
Tracy: What is, yeah…
Shawn: There’s a lot of factors that will figure in out on it, somebody’s interest rate, credit score, loan of value, what not, but typically conventional loans are in the mid 4’s, government are in the high 3’s.
Tego: Got it, got it…
Shawn: That’s great, I mean we haven’t seen that in our lifetime. Yeah, and probably won’t again. So it’s a good time for people to jump in to the housing market.
Tego: And you know, we talked about the housing market here from a value stand point from the Albuquerque area and home prices have crept up a little bit in the last couple of years and but really not, not much. I mean home prices have stayed pretty steady and you know, we feel that it’s a great time especially for what we call the move-up buyer, the person going from $150,000 house up to the $300,000 because they’re taking advantage of those great interest rates on the buy side. And those $150,000 houses, there is a decent demand here in Albuquerque.
Shawn: There is and that’s the market really, that what we’re seen. The high end market is coming back too. I don’t know if you guys have experienced that but I’ve seen that come back as well.
Tracy: We have seen that and so that’s been exciting as well.
Tego: Well thanks Shawn! We’re going to take a break here. We’ve been talking with Shawn Stringfellow with Loanstar Home Lending here in Albuquerque. It’s alright I can get that out, I know I can.
Shawn: It’s okay.
Tego: Yeah and again Shawn if somebody wants to talk to you about home loans what’s that number?
Shawn: 505 203 6506
Tego: And this is Albuquerque Real Estate Talk with Tego and Tracy Venturi of the Venturi Team and Keller Williams Realty. If you want to do a home search, look for homes for sale in the Albuquerque area you can visit our website at WelcomeHomeABQ.com and one thing I will mention since we’re talking about home loans is we have a place on there where you can actually search for some of these down payment assistant programs so take a break, talk to you in a few minutes.
Welcome back to Albuquerque Real Estate Talk on 959 FM/AM 1600 KIVA the rock of talk and this is part of the Small Business Saturday and Market Makers and Risk Takers here on KIVA and we are joined by Shawn Stringfellow today talking about mortgages and home lending and kind of the whole process and all the products out there and it really is pretty complicated. Shawn let’s just jump back into this real quick, you know we’re talking, you call them products, I call them programs let’s say, yeah but you know it’s basically the same thing, there is no one size fits all loan, correct?
Shawn: Correct, I mean, it’s unique, everybody’s unique financial situation.
Tego: Sure so let’s talk about some of those, there’s something called a corresponding mortgage, explain what that’s all about.
Shawn: Loan starts considered a correspond out lender and what that means is we sell our loans on the secondary market. We underwrite, we process, we fund our own transactions. We can even service our own transactions or our seller servicer. A broker doesn’t give you that, they go to a specific investor, they’re tied to that specific investor’s guidelines and underwriting. They don’t underwrite their own files.
Tego: Sure. And just real quick define underwriting.
Shawn: Underwriting is the guidelines that we have to follow to approve your mortgage loan.
Tego: It’s basically looking at the underbelly of your financial self.
Shawn: Financial self, exactly!
Tego: But I mean it is, when obviously when we’re talking and working with clients. Tracy, we coach them that you know, they’re going to look at everything, that’s what the underwriter’s job is right?
Shawn: That’s right, and that’s, I coach them too, you know, and warning, you’re going to get mad at me through this process because I’m going to ask you for everything in your closet, in your house, maybe a blood sample, you know that’s kind of extreme but it’s like that.
Tracy: I know and we hear that a lot from home buyers these days, they feel like they’re asked for too much stuff and we try to let them know ahead of time that it’s going to be that way.
Shawn: Right and so do I and these all resulted from the meltdown in 2008 and we’ve got new regulations that the government set forth so we would have strong mortgage lending and that we would have you know, strong mortgages.
Tracy: The good news though, is there’s lots of loans available and lots of money available and you can qualify for a loan if you should be buying a home.
Shawn: You can.
Tego: So let’s talk about some of these other programs. You know you talked about correspondent type loan and there’s another product out there a portfolio loan, can you explain that a little bit?
Shawn: So portfolio loan is privately held, it’s not sold to any of the GSC’s like Fannie Mae, Freddie Mac, FHA or VA, it’s privately held by that particular lender and we do have a pool of money that we lend from that is called, you know, it’s a box.
Tracy: So those are private investors that…
Tracy: lend you money?
Shawn: It’s a group of investors that put a pool of money together and they lend out of that pool.
Tego: And who would the client be for that type of product?
Shawn: There’s couple different ones, I mean you either got your higher end that’s got asset depreciation and that’s their income…
Tego: Higher net worth…
Shawn: Higher net worth,
Shawn: Or you’ve got somebody that’s just come out of a foreclosure or bankruptcy but they still have good credit, they still have money and want to buy another home.
Tego: I see, I see…
Shawn: So those are our… you know there’s lot of technical terms I can’t, you know, we can talk for hours about it, but we call them non-qualified mortgage loans.
Tego: Sure, sure…
Shawn: Qualified mortgage is a new term that come out recently.
Tego: Yeah, and just if you just tuned in you’re listening to Albuquerque Real Estate Talk here on KIVA Radio 959 FM and this is Tego and Tracy Venturi with the Venturi Team here with Keller Williams Realty in Albuquerque and we’re talking with Shawn Stringfellow about home loans.
Shawn let’s talk about the, let’s say the kind of the other side, we’re talking about portfolio loans it’s more the high net worth person. Let’s talk about the first time home buyer programs, the down payment assistance programs. You’ve mentioned something that you have and then there’s also the New Mexico Mortgage Finance Authority, they’ve got some incredible programs for folks.
Shawn: They do. They’re programs range from helping people that are on section 8 achieve home ownership and they can use their section 8 voucher to purchase the home and help make their mortgage payments, all the way to the typical first time home buyer with down payment assistance. Our company has another product that’s a little bit more lenient than the bond program here in New Mexico that will help people get into home ownership as well, it’s a 3% second with half percent down payment can be gifted, doesn’t have to be their own funds and as such there’s no FHA first.
Tego: Wow! That’s pretty,
Tego: amazing and it’s still fully documented obviously…
Tego: Not like the old day,
Tego: when we did the no doc loans, and that those have gone away, I hope.
Shawn: Oh no there’s one coming back and it’s…
Tego: Oh my gosh, sure notes. Say it ain’t so
Shawn: No doc loans, but it’s kind of unique to self-employed borrowers because we know their tax returns can be tricky.
Shawn: What a couple of investors, one of them have done is we’ve come up with a bank statement program again
Tego: I see…
Shawn: We know that they’re running a lot of money through their business accounts and bank statements.
Shawn: As long as we can document their deposits, we can use it as income.
Tego: I see…
Tracy: So you said that first time home buyer programs half a percent down payment is all that’s required?
Shawn: That’s all is required with the non-MFA program, MFA requires $500 down.
Tracy: So somebody could walk into home ownership with $500 to $1500…
Tracy: And what we know is with home prices and interest rates that house payment monthly including taxes and interest and insurance should be less than what they’re paying in rent.
Shawn: 9 times out of 10, definitely so…
Tego: There’s some really cool tools out there online that help you do that I know truly I has one on there website where you can do a rent to…
Tracy: Rent versus buy……
Tego: Rent versus buy you know if you just a rent versus buy on a calculator in Google you’ll get some calculators and you can just play with those numbers and it’s pretty amazing. And you know right now in Albuquerque the rental market, you know it’s going to cost you more to rent if you want a house than to buy!
Shawn: You know I’ve had clients that are first time home buyers you know their payments range from $800 to a $1000 and their buying beautiful homes or buying great homes for that price range in payment…
Tego: And you can’t rent for that…
Shawn: No, you can’t rent for that…
Tracy: Well, plus the joy of home ownership, you can paint the walls, your kids can pick what they want their room to look like…
Shawn: Nobody’s telling you what to do with…
Tracy: Nobody’s yeah dictating…
Shawn: You’ve got control…
Tego: And you’re paying your own mortgage not your landlord’s mortgage, right?
Shawn: You’ve got a tax benefit, you know, you got a tax deduction, you know home owner…
Tego: Yeah, so Shawn let’s talk about when somebody starts down this process of the home purchase and applying for a loan, there’s some very much, you know they call them the you know the ten commandment of home loan and stuff and do’s and don’ts. Can you give us, just give some tips for the folks what they should watch out for and what they should and should not do when they’ve applying for a home loan.
Shawn: I guess the main thing is don’t apply for additional credit. I’ve seen people that go out and buy cars right when we’re through the middle of the process. We have to count that in your payment. We’re going to pull your credit right before closing again. That’s a pull it doesn’t count against your credit score but we’re going to check your credit 5 days before closing.
Tego: Yeah and let’s say that again and make sure people understand that. That was something that’s came out of the new regulations in 2008-2009, right?
Tego: So the credit, you don’t pull it just once at the beginning, it gets pulled…
Shawn: It gets pulled twice. So we do, what we call a soft pull. It’s a soft pull, doesn’t count against your credit score but we update that credit report before we close.
Tracy: That’s great! One of the things that I’ve seen that comes up most often with that, we have had people buy cars in the process of also buying a house. But it’s going to Sears and opening a charge account and buying new appliances and new furniture for their new house…
Shawn: So don’t do any additional credit. We wait to get through the home loan process before you even have anybody pull your credit.
Shawn: And that’s yeah…
Tracy: Plus they’re verifying employment again right before closing…
Shawn: Don’t change jobs, don’t quit your job, I mean all that stuff will be verified right before closing.
Tego: And the other thing I think and I know you know this coz you’ve probably dealt with it is, be upfront with your loan officer, tell him everything, tell him the truth, don’t try to hide things.
Shawn: I’m like your doctor, tell me everything. We’ll figure out a way around it. If you don’t tell me something and I find out and that’s when we run into problems.
Tego: Coz you can do so much and then it goes to the underwriters. And those underwriters they don’t mess around, they look at everything.
Shawn: Well, they’re so much on the back end that people don’t see there’s so many different third and fourth checks that we do. We go to third parties, we go to LexisNexis, it’s another reporting agency, we pull reports from everywhere so you don’t tell me about a piece of property you own, I’m going to find it. It’s just part of the process, we’re going to find it.
Tracy: And like you said in the beginning if they tell you everything then you make sure you get them in the right product with the right future where that loan’s ending up.
Shawn: Right, the more information I have upfront, the better’s the transactions going to be.
Tego: And again that goes back to these programs, all the different programs and products, as you call them, that are available you know, if you know the whole financial picture, the whole family picture, everything of the client, you can steer them into their correct product.
Shawn: Steering’s not a good word in our industry.
Tego: Okay, sorry, we won’t use the word steering, you can, you can, yeah…
Shawn: But I can give them enough information to make an educated decision…
Tego: Sure, sure…
Shawn: You know, there’s several products available then we can help them make with that decision.
Tracy: And one of the things that’s obviously really important is for our home buyers, they don’t want to get starting to pack up, ready to move in and at the last minute, something comes up they forgot to mention and the loan falls through. They’ve already given notice where they’re living, then they don’t get to move in.
Shawn: That’s a good point so one thing that we’re encouraging right now and we’re doing a 14-day guarantee close. If you bring us somebody before they’ve even written an offer and they’re out looking for a property, we’re going to send them through underwriting, we’re going to send them through the whole approval process just like they had a transaction, that way there’s no surprises at the end. And we’re going to guarantee that they close.
Tego: And so we talk here about real estate…
Tracy: That’s awesome, by the way.
Tego: Yeah it is, no that is! And you know we talk about this all the time and people always start, when they finally come to the decision that they’re either going to move to a new house or their going to buy their first house. So first place I usually start is looking at homes coz that’s the fun part. You know, you get on our website, WelcomeHomeABQ.com by the way and search all the homes for sale in Albuquerque. That’s the fun part but right after that they need to be talking to a loan agent correct Shawn?
Shawn: Correct and the sooner the better.
Tracy: That’s great! And so speaking of how to reach us, you know like Shawn said, we’re getting to the end here of our morning session but we work pretty much all the time so give us a ring at 933 6881 and we’d be happy to talk with you and kind of go through all these things with you and start the process.
Tego: Yeah, that’s the line of the Venturi Team Realtors and then Shawn if they want to talk to you about loans, again let’s give your number out there again.
Shawn: 505 203 6506…
Tego: Perfect and this has been Albuquerque Real Estate Talk with the Venturi Team of Keller Williams Realty here in Albuquerque, we’re joined by Shawn Stringfellow with Loanstar Mortgage here in Albuquerque, Home Lending. We appreciate you listening. Have a good weekend!
All About Home Staging
Tego: Welcome to Small Business Saturday and Market Makers and Risk Taker. This is Albuquerque Real Estate Talk here on 95.9 FM AM 1600 KIVA. I am your host Tego Venturi with my co-host Tracy Venturi. We come here every week, talk about residential real estate here in the Albuquerque area. Thanks for joining us. Tracy, if people want to reach us talk about residential real estate in Albuquerque, anything, any question? Buy, sell, market stat, whatever. How do they get hold of us?
Tracy: Well, good morning everybody. Always great to be here. Give us a call. It’s the easiest and quickest way 933-6881. That’s our whole team so you might reach us or somebody else that works with us. Otherwise, our website www.welcomehomeabq.com. But give us a ring, that’s the best way. Call us today. We work Saturdays.
Tego: Yeah. So we’ve got a guest today I want to introduce. Here’s the lineup for today. We’ve got just a little bit of market update. It is the beginning of the month. But we’re going to talk about staging home design and prepping your home for sale. We’ve got an expert on that with us today, Nicole Rorem with Su Casa Staging, correct Nicole?
Nicole: Yes, that’s correct. Good morning.
Tego: Well, thanks for being here and joining us and talking about this. I think hopefully this is a show that we’re going to be able to save and really give some people some good information on how to get their home ready for sale. We’re really getting to the meat in a second.
Let’s do a quick market update because we just finished August. Numbers are kind of what we’re seeing Tracy which was kind of steady.
Tracy: Steady, flat, still moving right along but nothing too exciting to report.
Tego: Yeah, the number of home sold in August over the last year is down about 5% but it’s 1,050 versus 960 or something like that. It’s not a big number. Homes are still selling. There’s still 960 homes sold in August. Price-wise we actually saw a little bit of hold back if you look at year over year for August that was down slightly, average sell price it was about 201 versus 210 August last year.
Again, I don’t think there’s anything here to be worried about. We’re just kind of steady. I think this is kind of normal ebb and flow of the market.
Tracy: If you listen like CNBC this morning, they were talking about the trend for next year and based on some of the market indicators they expect the real estate market to really do well over the next 9 months.
Tego: The other big thing this week, I mean it’s not a big thing, the interest rates are still down. It went down again this week. Interest rates are hovering around that 4%. The headline I saw was market rates, interest rates are the lowest in 2014 and that’s honestly…
Tracy: We didn’t expect it to be that.
Tego: Not worth protection. Most people were predicting that the beginning of the year we’ll be at 4.5-5% this year. Anyway, I don’t want to talk too much about the market. If you want to look at market statistics for the area, you can visit our website at welcomehomeabq.com. If you’re just joining us, this is Albuquerque Real Estate Talk here on KIVA, the Rock of Talk and we have Nicole Rorem with Su Casa Staging. We’re going to talk about home staging. Tracy, we want to get your perspective as well. You help sellers sell a lot of homes, what buyers are looking for in homes.
First off Nicole, I’ll shut up here for a little bit. What is staging? What is staging versus home design, I guess is the best way to put it?
Nicole: Yeah. So when you’re doing home design and decorating and placing your furniture, that sort of thing, you’re doing it for yourself, for living. The difference with staging is you’re trying to market your home now. It’s a product you’re trying to sell. So, you want to set it up in such a way that it attracts that largest numbers of buyers. You want everybody who walks to the door to immediately fall in love with the face, not focus on things that need to be done or fixed or changed or work that they have to do after they buy. But they just walk in and it says ‘welcome home’ and it’s an inviting space. That’s what staging can do for you.
Tego: And so what exactly do you do? You do this obviously. This is your profession. What exactly can you do for a client or somebody that’s trying to sell their homes?
Nicole: We have two major services. One is staging vacant homes and that’s where we own a lot of furniture and inventory and we can set that vacant home up with our furnishings and accessories to show its very best which will help with your professional photos, which will help drop people to the house in the first place and we’ll create the good, emotional connection when they walk through the door.
Then, our second side of our business is for occupied listings were people are still living in the home. They have to live there while they’re selling it. We can do a room by room walkthrough and give suggestions for staging each room. It can either be something like a homework list that they can do for themselves or if they don’t want to, we can give them a price to come and do things for them.
Tego: Sure, one of the myths out there is staging is for vacant homes. It’s just so you can put furniture and make it look pretty. But really that’s not the case.
Nicole: No. There’s actually a real science to it. A good example would be a house I staged yesterday where it had carpet, tile in the entry, carpet in the living room. It looked tiny. We have now opened up that space with furniture and changed the whole feel of the room, the look of the room and the size of the room. It has way more furniture than you can ever imagine empty. It’s not just decorating. It’s placing it in the right place, creating walkways and space, creating function for people. There’s a lot more to it than just plopping furniture in the space.
Tego: Sure. Tracy, you have a question?
Tracy: I just want to talk about – one of the things I was thinking is a lot of times when we mention ‘staging’ to home sellers, they’re thinking of clutter not really staging. Is that something you come across?
Nicole: You mean, people who still live in their houses?
Nicole: Yeah. I mean, de-cluttering is really important. What that means is putting away all the extra stuff like paper and personal photos, just all the extra junk in our room. So, you want to think about if you live in your house and there are furniture there, you want to think about setting it up kind of like a model home where it doesn’t really look like someone lives there all the time, things like Kleenex boxes and stuff like that.
De-cluttering is totally important. You don’t want to take everything off the wall so that’s boring and uninviting. You still want it to be very inviting. But de-cluttering is probably the biggest things that people who still live in their home have a hard time with.
Tracy: So just to piggyback on that, so when we’re talking about re-design and the services that you can provide. It’s not just de-clutter. It’s really move furniture and things.
Nicole: Yes. If we were doing a consultation, we’re going to go through and tell you all the things we should get rid of, put away, store, move. Then, we’re going to go ahead and be able to tell you how to replace furniture, repurpose the furniture. We can give you suggestions for using stuff from one room and putting it in another room, really just optimizing the space.
Like a good example would be, we would go in. If you maybe have a bedroom that has just random stuff in it, we might want to suggest you setting it up as a bedroom.
Nicole: And things like that.
Tego: So, Tracy let me ask you this. Why stage? Obviously, we’ll get into this in a moment. It’s a huge benefit for the seller, the property owner in staging the property. But what are some of the benefits for the buyer. You help a lot of buyers. You show a lot of homes and when you go into these different homes, staged versus non-staged, how does that benefit the buyer? Because I think some people think, well, we’re just trying to trick the buyer into showing this home off. But that’s not really the case, right?
Tracy: No, I think a lot of people have a hard time especially when they get overfilled houses visualizing their things in the house and how rooms really work. Sometimes rooms don’t speak clearly that, “I’m a kitchen. I’m a living. I’m the dining room. I’m a family room.” Sometimes there are spaces that you just don’t know how your furniture would fit. When they’re staged, people can really go in and visualize themselves there and how they might use the house. It’s great.
But I know from showing hundreds of houses, I see the same floor plan over and over a lot whether I’m in the northeast heights or somewhere else in the west side or whatever. It’s amazing how people get a feel within the first 10 seconds in the house. They make a decision immediately. It might have been a house with a floor plan. They’ve already rejected it. That won’t work for them. But we walk in one that’s properly staged with the right art, the lighting, the colors of the walls, whatever and they know in 10 seconds that house is perfect for them and it really has the staging made all the difference.
Nicole: Yeah, that was the same statistic I was going to share to you that buyers have that 10 seconds to make a decision. It’s an emotional decision. The key room in house to have staged perfectly is definitely the first thing you see whatever it is when you walk in through the front door.
Tego: Sure. And in these days, photographs are such a big important part because a lot of people are previewing homes online now. We look at statistics of how many people view the homes we have listed for sale and it’s thousands. They’re on the website. They’re on Zillow, Trulia, Realtor.com, our website, whatever looking at homes in the photographs. The staging helps those pieces well, the visualization through the photograph, correct?
Nicole: For sure. I think that professional photos are key. If you look at our website which is Sucasastaging.com…
Tego: Yes, by the way, you need to introduce how people get a hold of you.
Nicole: If you look at our website, Sucasastaging.com you can see a lot of before and after photos and you can see the difference that makes. It’s the same difference in a buyer’s eyes when they’re shopping online. They see that same difference in pictures. It’s important. It’s all important.
Tego: Yeah, sure. So, we’re going to take a break here in a little bit and when we get there, let’s actually give some people some nuts and bolts. Obviously, they can hire you Nicole to help them stage the home. A lot of people just want to just take it on themselves or you can come in and just do a quick consultation with them. But we’ve got a whole checklist that we can give folks if they want to try take this on themselves. Obviously, I think hiring a professional like you is great. Most people don’t have the time and energy. They’ve got a life and trying to prepare a home to get it ready to sell is a big job.
Tego: So, what would you say – let’s just close with this. What would you think, what are the statistics on staging how much does it benefit a home seller when you’re talking about that?
Nicole: Well, the last time Real Estate Association did a study there were 89 vacant and occupied homes put on the market that were listed and not staged and they were on the market an average or 166 days. Same homes were staged and received their first offer in 32 average days.
Tego: Wow. Those are big numbers.
Tracy: We’re going to have to cover those again.
Tego: We’ll go back to that here in a minute. Thanks for joining us. This is Albuquerque Real Estate Talk. We’re going to take a break. We’ll be back shortly.
Welcome back to Market Makers and Risk Takers on Small Business Saturdays. This is Albuquerque Real Estate Talk on KIVA the Rock of Talk. And I am Tego Venturi with Keller Williams Realty and the Venturi Team. We talk about residential real estate here every week and I’m joined by Tracy Venturi who’s my partner in real estate. We have a team of realtors that can help you out. Tracy, if people want to get a hold of us and talk real estate, buy and sell, how can they do that?
Tracy: Sure. The best way is to call us 933-6881 and we look forward to talking to you. Love to talk real estate.
Tego: And our guest today is Nicole Rorem with Su Casa Staging. She is a professional home stager that helps people prepare their home for sale. You’ve done a lot of this here in Albuquerque, right Nicole?
Nicole: Yes, I currently have 47 staged right now.
Tego: Wow. That’s a lot of furniture.
Tego: And we talked about this earlier, it’s not just placing furniture obviously you do other things. You do consultations and give people their own checklist where they can go and do things themselves to help market the property.
We went away and we kind of broke at the end there. We’re talking about statistics regarding staging and I found one that said of the homes that are staged, they sell 12 days faster. This is a big study that was done a couple of years ago. But you’ve got some studies that are even more, well what’s the right word…
Tego: Convincing, thank you, to make the case for staging.
Nicole: These are statistics from the National Staging Association where they studied 89 homes that were previously on the market and not staged and those 89 homes sat on the market an average of 166 days before the homeowners gave up and called in a professional home stager. Those same homes were staged and received their first offer on average 32 days after being professionally staged. This is 81% less time on the market. 9 of these houses even have multiple offers. The numbers are real.
Tracy: And they didn’t even sell in 166 days.
Nicole: Correct. Exactly, they haven’t sold at all.
Tracy: 81% faster but they really haven’t even sold the first time around.
Nicole: These are nationwide results but we see the same results in Albuquerque. We track all the houses that we staged and have had average 27 days on market for staged homes.
Tego: In Albuquerque, average days on market is somewhere around 60-90, just depends month over month, every month changes a little bit. But that’s kind of the average.
Tracy: If you think about what it might cost to stage your home and I’m sure you can call Nicole and you might figure out what it might cost to stage a home, to use your furniture, have it moved in and all that. But think about if your house sells two months faster and you’re not living in it and you’re not making a mortgage payment for two months and it could a couple thousand dollars easy.
Tego: Sure. It adds up pretty quick. Nicole, do you want to get into what it costs to stage a home? Is that possible?
Nicole: Sure. If you live in the house in an occupied listing, we do a consultation for $95. That’s a one-hour consultation where we walk through and we can give you the homework list. We can do some of the work while we’re there, that sort of thing.
For vacant house, it’s harder for me to give the price. It could range from $1,500 up to $3,500. Most of them are in the $2,000 like $2,200 to $2,800 range. That is for zero to three months. It’s for moving everything in, moving everything out. We’re moving everything in setting it all out, decorating and everything in there for three months and taking it out after it sells. That’s a general price. We do those more on customized basis.
Nicole: You can visit our website. There’s a button you can click for a staging quote and I can do it.
Tego: Perfect. Let’s go to that. How can people get a hold of you if they want to talk about staging and prepping their home for sale?
Nicole: Great. They can call me at 505-681-5642 or visit our website at Sucasastaging.com or Nicole@sucasastaging.com is my email.
Tracy: And you just need to tell them that we sent you.
Tego: Yeah, there we go. If you’re just joining us, this is Albuquerque Real Estate Talk here on KIVA. We’re talking about staging homes and getting ready for sale. Nicole, let’s get right into – let’s give people a list. What should they be looking at? I know there are TV shows. I know there’s books. There’s all kinds of stuff out there. But where should people start when they start thinking about getting their home ready for sale?
Nicole: I think, I mean the main thing is to probably yourself can even go through your house room by room and you want to create an organized look whether that’s in your closet or in the hallways, in any of the spaces even if you’re unorganized. You want to put away all the extraneous things that are around, magazines, clothes, basket of clothes that are on the floor, different things like that. That’s the de-cluttering process. You want to remove excess furniture throughout the home. There’s little things you can do if you have a narrow hallway. You can hang a mirror in that hallway or a room that’s kind of small. Hang a mirror to enlarge the space.
Your closets are really important especially like the master closet or having enough storage. You don’t want to forget those rooms. For cleaning things up, just maybe a good rule of thumb would be to take out half of everything in your closet. You’re going to be moving anyway so pack it up. If it’s spring, get rid of all your winter stuff.
Tracy: As in pack it away and put it in a garage or a shelf.
Nicole: Correct. Either get rid of it at Goodwill or pack it. You’re going to move to your new house, get it out of the house. Those are things you can do. What else can I tell you?
Tego: You know one of the things that I have heard people say is remember that your home now, I know it’s your home and you love it and you made memories there and all that stuff but all of a sudden your home is now a product. So, you have to disassociate yourself with the emotions of ‘this is your home’.
Tego: And doing that, that’s difficult. That’s why it does help to get somebody like you with a critical eye to come in and maybe tell you some things you don’t want to hear. But you’re the professional that can help them through that process, right?
Nicole: Right. Exactly. I think that is so true and people don’t see their houses the same they would see a house as a buyer. Our goal is to just emphasis that you’re marketing this product and you want to sell it. It’s not just – people aren’t going to buy it the way it is if they have certain things in there. I could do the hard work. Sometimes people don’t want to get rid of things that are personal but we want to neutralize the style of the home and reach a broader number.
Tracy: That’s what I was just going to ask you about. From the buyers’ side when I show homes to buyers, when you’re thinking about staging or re-staging, it’s making it nothing flashy maybe or more neutral, very comfortable for the masses.
Nicole: Yes, I mean you don’t want anything that’s too specifically personalized. Sometimes that’s so too much southwest or too much religious or too much something else. It’s hard to tell people that because that stuff is dear to their hearts but neutralizing it to make it where any buyer who walks through the door will connect to the property.
Tracy: Does that include recommending paintings sometimes?
Nicole: I think neutral painting is good. This might be my own personal opinion but I do not recommend white walls. I prefer tan walls because it’s really hard to make white walls feel warm. But neutralizing paint colors is definitely a good idea.
Tego: Yeah. I’ve got a story here that I came across and I want to run it by you as kind of like three myths about home staging. We’ve done myth busting here on our show before and some other things. The myth one is home staging is just mostly de-cluttering.
Nicole: That’s definitely a great first step. But it is by no means – I mean, you don’t want to take just a bathroom counter that’s white and clear off the counters and have nothing there. It looks like an unfinished or cheap. It really doesn’t give an emotional connection for the buyer.
Tego: Sure. And the furniture, excuse me, the photos and furniture and all that stuff makes a big difference too.
Nicole: It makes a huge difference.
Tego: Yeah. And the other myth is staging this for vacant homes. We talked about this earlier but obviously it’s not just the vacant homes.
Nicole: Yeah, it can be any home. I did a consultation yesterday for a family who have beautiful furnishings, beautiful things in their house but they have too many fake plans and fake flowers and they had too many different areas of clutter and we just went through and gave them ideas for storing away things, hiding things, changing furniture around a little bit to fit better in the space, that sort of thing. That’s really important too.
Tego: You know, we have a little handout that we give to our home sellers just kind of prepping your home. One of the things is ‘de-personalize’. I know there are some differences of opinion on de-personalizing meaning taking down all the family photos and taking down…
Tracy: All the religious art.
Tego: Yeah. What’s your feeling on that, the whole de-personalizing piece?
Nicole: Yeah, I think de-personalizing is definitely important. It’s an area where a lot of the clutter usually is is with these personal things. But having some personality in the house, that’s what we do in a vacant house. It has no personality, that’s why we stage it. So, in an occupied house, you still want to want to have some personality. But you really do need to limit the amount of all your little personal photo frames, your personal collections, religious collections, things like that because you’re limiting the number of buyers that can associate with it.
You also don’t want people to walk through the house and look at all your personal photos and say, “Oh, I know that guy. I know that person. Look he’s a doctor,” or whatever. You just want them to look at the house and all the features of the house is what you want to showcase.
Tracy: I find that just such a big issue when I show houses because if there’s a lot of interesting things or beautiful – I showed one yesterday. It was in high dessert and it was beautiful, like New Mexican art work. My client hardly saw the house. They were so excited just to look at every room and what was in there.
Tego: That’s an interesting point Tracy. If you’re just joining us, this is Albuquerque Real Estate Talk here on KIVA Radio. We’re going to be wrapping up soon. We’ve been talking about home staging and getting your home ready to sell and converting your home from a home into a product. I know that maybe sound a little harsh but that’s what you do Nicole, right?
Nicole: Yes. That’s exactly what we do. You want to sell something, it’s just basic marketing. Staging is marketing. It’s getting it to look at its very best.
Tego: There’s something I heard years ago and it was when you get your car and you’re ready to sell your car, you get it detailed, right?
Tego: Why wouldn’t you do the same with your home?
Nicole: Right. exactly.
Tego: It’s exactly the same thing and it’s much a larger, larger investment in property. Anyway, thanks for joining us. This has been Albuquerque Real Estate Talk. And if you want to connect with us, the Venturi Team we’re at Welcomehomeabq.com. If you want to talk about staging and getting your home ready for sale you can reach Nicole. Nicole, give us again your contact information.
Nicole: Yes. My number is 505-681-5642 and my website is Sucasastaging.com
Tego: Thanks for joining us. Have a good weekend! Thanks.
Nicole: Thanks for having me.
Northeast Heights homes for sale in Albuquerque can vary greatly from a lovely small condo, to a luxury estate home. Recently, I had the opportunity to show luxury homes in High Desert, Sandia Heights, Tanoan and Primrose. It’s such a privilege to work with home buyers looking for their perfect dream home, and we found many great homes for sale to consider. Some had awesome views of the Sandia Mountains, others views to the valley or the Jemez. Others had yards filled with native plantings that were attracting butterflies and hummingbirds. Take a look at some of these great dream homes for sale in this area of Albuquerque.
Albuquerque Real Estate Talk August 30 2014
Tego: Good morning and welcome to Small Business Saturday on 95.9 FM AM 1600. And this is Market Makers and Risk Takers and the Albuquerque Real Estate Talk Show. And this is your host, Tego Venturi joined by my co-host, Tracy Venturi of the Venturi Team.
Tracy: Hi! Good morning, everybody. And we have a great guest this morning. We’re going to introduce Sarah Gmyr-Maez with New Mexico Mortgage advisors and we’re going to jump right in.
Tego: Just to give a background here, we talk about residential real estate here every week and this week we’re going to do our luxury homes show or higher-end home. Everybody calls them luxury homes but we’re going to kind of get into that. But, we want to get Sarah on right away. She’s a mortgage expert and just kind of talk about mortgages in that higher end of the real estate market.
Tracy: Welcome, Sarah.
Sarah: Thank you for having me.
Tracy: Absolutely. You’ve worked with the few of our clients lately that have purchased homes in what we would consider a higher price point for our area. And I know you know all price points and what loans are available so we appreciate you being on this morning.
Tego: Sarah, let’s me ask something. When you’re doing mortgages, there’s this whole thing called the jumbo mortgage. Can you define that for us? Tell us a little bit about that? And when does, what’s called a jumbo mortgage kick in and what is that all about?
Sarah: Jumbo mortgage kicks in when you have a loan amount about $417,000.
Tego: What are the implications of that to somebody purchasing a home?
Sarah: It used to be that jumbo mortgages were a lot higher interest rate than a regular conforming conventional loan so anything that’s below $417,000. But right now, the jumbo market is very competitive and so the rates are almost identical.
Tego: Wow! And that’s really a good thing to get out there because obviously most people believe jumbos, they’re about 1% more. That’s kind of been the [0:02:02] belief for years, I would say. That’s really not the case right now, you would say?
Sarah: It’s not the case right now. It used to be like they were half percentage higher and now they’re pretty much identical. I did a comparison between both today, this morning. And they’re right there with each other neck and neck.
Tego: Wow! What can people expect to pay, I know it has a lot to do with credit scores and debt-to-income ratios and all that stuff, but what do you see in for interest rates for “jumbo loan”, meaning something a loan above that $417,000 mark?
Sarah: Well, like you said good credit [0:02:44] at 720 or higher. On a 30-year fixed, the lowest rate I found was 4.125. On a 7/1, which is a 7-year fixed. After 7 years they can change, that was at 3.5. A 5-year adjustable, so it’s fixed for 5 years was at 3.125.
Sarah: The 15-year fixed at 3.25.
Tracy: Wow. That’s huge. We should be refinancing in a I mean jumbo loan to buy, [0:03:14] Tego?
Tracy: Wow, that’s great. What kind of downpayments are we seeing required on jumbo loans?
Sarah: Jumbo loans, they typically want 20% down. Some investors want 25% down but typically 20% down. Now, if you’re at a threshold where you’re close to or where you’re almost at a $417,000, we can do like a first-second combo. What I mean by that, let’s say you’re purchasing a house at like $550,000 and you put your 20% down and it’s not quite at $417,000, you can do a second. To avoid having to put more down like if it was requiring 25% down for the best rates. And we could do that with price points at $600,000 whatever. But right now with where the rates are, typically, just doing one loan as long as you have the 20% down would be the ideal rate to go because the rates on the second are higher.
Tracy: Great, sounds good. I forgot to even ask you to tell people how they can reach you if they have questions about lending.
Sarah: They can reach me on my cell which is 505-319-0622 or my office, 505-898-4800. Those are the best numbers to reach me.
Tego: Sarah, let me ask you a couple of things. First off, what’s your MLS number? I think you need to put that out there.
Sarah: It’s 279382.
Tego: Got it. Okay. And let’s talk about payments. You’ve ran some numbers and I think it’s really be good to kind of get an idea of what kind of payment people can expect on some different scenarios. Do you have some scenarios you can give us?
Sarah: Yeah, I did one at $600,000, putting 20% down. We did a $480,000 loan amount and the payment on that—and this is just principal and interest, it doesn’t include the tax and insurance—was $23,065 a month. And that was at a rate of 4.25 is what I figured out on that one.
Sarah: But I want to reiterate though. If someone doesn’t have a 20% down, there’s [0:05:17] combo. We need to do that.
Tego: Sure. That $600,000 price point, Tracy, you can buy a lot of house in Albuquerque for $600,000.
Tracy: You can. You can get a great house for $600,000. And just principal and interest like under $24,000. It would be more than that with your taxes and insurance. But wow, that’s a lot of house you can afford.
Sarah: I also wanted to say, if someone has VA eligibility, they can do a jumbo loan and the interest rate on that is the same as the regular VA as well. And right now, those rates are at 3.75 on a 30-year fixed. That’s a really low.
Tego: Can you repeat that because I think that’s an important thing. We have a huge veteran population in Albuquerque obviously and active. Those are some of the best programs out there right now, correct?
Sarah: They are. There’s a formula. Once they reach the $417,000, depending on whatever the purchase price is. Let’s say they found a $500,000 house, they do have like a percentage that they’ll have to put down but it’s so minimal compared to like a regular jumbo and then they get to take advantage of the lower interest rate of 3.75 because that’s where VA rates are today.
Tego: Got it. Well, Sarah, thank you so much for joining us today and just talking about some of these jumbo rate. We’re going to let you go but we’re going to go into talking about some of these higher end homes in Albuquerque and what is a higher end home in some of the neighbourhoods here in Albuquerque. But Sarah, thanks for being with us.
Sarah: Thank you so much for having me. Have a great day!
Tego: You, too. Bye, bye. Again, this is Albuquerque Real Estate Talk with Tego and Tracy Venturi of the Venturi team. And Tracy, we jumped right in to Sarah talking about mortgages for the higher end and the jumbos, but what do we consider the higher end in Albuquerque.
Tracy: Well, that’s a great question because you and I debate this all the time. We look at the numbers and I always say, “For us, higher end is probably $400,000 and above.” That where most buyers are under $400,000.
Tego: Yes, we ran some numbers and what we’ve found is that, if you took all the homes that sold and you just look at the top 5% of all the homes that sold, it’s right around $460,000 and above. And that’s pretty consistent over the past few years.
Tracy: So, 460,000 is kind of the
Tego: That put you on the top 5% of all the homes sold.
Tracy: Okay. If you have a home that you want to sell and it would be over 460,000, know that you’re in the top 5% of all the homes in Albuquerque. Who can buy that home? 5% of the people.
Tego: Right, right. Even you move that up higher, if you look at the $750,000 price point, that’s about 1% of all the homes that have sold. You really, there’s some extraordinary homes in Albuquerque and that’s $750,000 and above price range.
Tracy: Yeah. There are some awesome homes, too, that are for sale. And probably after our break, we’re going to talk about some of the amenities and features you can expect to find in a home that would be considered in the more of the luxury or high-end in our market.
Tego: We’ll go into that after our break. This is Albuquerque Real Estate Talk with the Venturi Team of Keller Williams Realty. If you want to talk about real estate, talk about your home, talk about buying or selling or just anything real estate, you can reach out to us at our team line at 505-933-6881 or our website at welcomehomeabq.com. We’ll be back shortly. Welcome back to Market Makers Risk Takers on Small Business Saturday on 95.9 FM AM 1600 and this is Albuquerque Real Estate Talk where we talk about the residential real estate market here in the Albuquerque area. I’m your host, Tego Venturi with Tracy Venturi of the Venturi Team of Keller Williams Realty here in the Albuquerque serving Albuquerque greater Albuquerque area. If you want to reach out to us, Tracy, how do people get a hold of us?
Tracy: The best way is probably by phone, 933-6881. And that’s our team phone number so you might reach me, Tego or somebody else like Meredith, Jane, Amy, people you’ve heard on the show. We all work together to help buyers and sellers.
Tego: We work as a team and it’s a good situation because we really have an area experts that can really take care of our clients and that’s the whole idea. If you want to do some home searching or look up market stats, you can do that on our website at welcomehomeabq.com.
Tracy: But we’re working today, if you want to give us a call, go ahead.
Tego: Yeah, absolutely.
Tracy: That would be great. If you just have a question, give us a ring, 933-6881.
Tego: Tracy, couple of new stories from the week I just wanted to hit on because it’s actually good news. I know a lot of times we kind of get, we see headlines. I know there’s a headline in the Journal this week that was somewhat negative but when you actually read into the story, you’ll see that the market is steady. And that’s kind of what we’ve been talking about every week or every month when we really dig in to the market stats. It says here that the market is steady here in the Albuquerque area. And one of the things that I saw, this was a national study looking at the negative equity on homeowners.
Tracy: What is negative?
Tego: I know.
Tracy: That negative equity makes my eyes spin. What does that mean?
Tego: Well, what that means is these are people that are still under water in their home, meaning they owe more than the home is worth. And it actually fell to 17% of the people with mortgages which is a big number. However, that continues to decline and the expectation is based on appreciation and home turnover and stuff like that is by the end of 2015, it will be around 15%.
Tracy: So that number has shifted significantly in the last 3 years?
Tego: That is correct. Last year, it was almost 19%. Now, it’s 17%. Two years ago, it was 23%. Yeah, we’re going in the right direction. Again, this is national numbers but yes.
Tracy: But, a quarter of the houses two years ago were worth less than what’s somebody owed on it.
Tego: Correct, the ones that have mortgages on it.
Tego: And that’s a good thing. And then the other statistic that a story that came out and some statistic was Case-Shiller home index which is kind of like the guide to kind of see what’s going on with the national housing market. And home prices have slowed in appreciation. However, they still continue to increase. Albuquerque, we’ve just kind of steady 1% or 2% appreciation. But we continue to kind of be behind the rest of the market. I know there are other parts of the country, they’ve had some really big bump-offs last year and we never really did. And this year again, we just kind of steady.
Tracy: We are steady.
Tego: I think that the takeaway is the growth continues in home prices and it’s just kind of steady. And there’s no indication of it going up, going down, anything like that.
Tego: That’s our takeaway here on some of those national market stats.
Tracy: How does that relate to what we’re talking about today which is the higher priced homes in the Albuquerque metro area and those prices?
Tego: The area of Albuquerque when you look at the market statistics, that’s still kind of, let’s say, behind is the higher end. You start getting up on that higher priced home. And some of those areas, if you look at the homes, we’re talking about the top 5% is again the $460,000. And you look at those numbers, there’s about 17 months supply, 18 months supply. Two year and a half worth of inventory for those homes meaning of all the homes in the market versus the number that’s sold, if the same number of homes sold every month and nothing else new came on the market and the same ones stayed on the market, that’s how long it would take before it’s out of inventory. So, we still have quite a bit of inventory homes available in that higher price range.
Tracy: For people who want to sell their home, I think the takeaway there is know that it might take a while.
Tego: Well, the interesting thing is, Tracy, if you look at the days on market for that kind of price point, for the homes that actually sold, they’re 60-90 days. What’s happening is, what that tells me is that there are a lot of homes in the market that may not be priced in the market. They’re just kind of sitting there on inventory just waiting for somebody to come along. But of course, people aren’t going to pay more something its worth.
Tracy: Right. That’s a great takeaway. When we meet with people that need to sell, we say, “You either priced in the market or you priced out of the market.” And it’s not like, “Well, I can wait two years. I’m not in a hurry to sell.” The point is the price is still the price, whether you’re in a hurry or not. It’s not like somebody’s going to come along and say, “I’m going to pay a million for this house when the market for it is $850,000.”
Tracy: All you’re going to do is wait until you get down to $850,000 and then your house will sell. It’s like you’re either priced to sell or you’re helping your neighbour sell their house.
Tego: Let’s talk about, you have a survey, Tracy, that talks about what people expect in a higher end luxury home, whatever you want to call it. And what does that survey say? Because it’s pretty interesting.
Tracy: It is. The realtor.com did a survey and it was about what people think should be in a high priced home. And in Albuquerque and New Mexico, it might be a little bit different than what someone might expect in Florida where they want a Florida room and a swimming pool. Here, in a higher priced home, people do expect a chef’s kitchen, a very high quality with nice appliances and not 30 years old.
Tego: And that was the top 1 when they ran the statistics or ran the survey.
Tracy: That was the number one thing people expect.
Tego: Yeah, what we’re the other top things that people expect in a high-end home?
Tracy: A really nice master suite with an on suite bath with nice high-end features in it. I know in our market, a nice high-end house might be in Tanoan right now, and it still might have brass in it and might need updating but price according
Tego: Hey, brass is coming back.
Tracy: Yeah, probably. Of course, it needs to look shiny and fresh.
Tracy: Some of the other things people think should be standard in a higher priced home are the views, maybe the size. In our market, sometimes pools although we don’t have a lot of pools. If you live in Phoenix, a $300,000 house is expected to have a pool. But in our market, there just aren’t a lot of pools. Home theatre and then outdoor living. Outdoor living is actually pretty large on people’s list here because we have such a great climate.
Tego: We do. And when you say outdoor living, we’re talking patios. We’re talking
Tracy: Fire pits
Tego: Grill area
Tracy: Outdoor bar, grill area—yeah, a nice sitting area.
Tego: Yeah, we’re pretty lucky. We’re really almost can live outside at least three seasons. Almost four sometimes, in the winter, it warms up enough during the day that you can hang out outside which is nice.
Tracy: Well, in some of those higher end homes have those gas lanterns to warm your patio.
Tego: Sure, sure.
Tracy: Yeah, definitely. Those are some of the key things people expect.
Tego: What part of town, when we’re talking about luxury or higher end home, what parts of Albuquerque can you expect to find the bulk of these types of homes? When we say $460,000, $500,000, and above, let’s say.
Tracy: Sure, when we did a map, it’s kind of a heat map of where houses sold in the last year, they’re really all over. If you look at the Northeast Heights, North Albuquerque Acres, Sandia Heights, High Desert. Obviously, there’s quite a few. There’s some in the East Mountains, the North Valley, the Ridgecrest area, downtown, Corrales.
Tego: Wait, what was, let’s talk about Ridgecrest, where is Ridgecrest? I don’t know if everybody realizes that.
Tracy: Sure. Ridgecrest is just southeast of the UNM in Nob Hill area. It’s close to the base and Lovelace Hospital, the old Lovelace facility, the veteran’s area. We just listed a house on Hertz southeast which is I think called Sierra Hills but people think of it, it’s just south of Gibson, the old Lovelace neighbourhood.
Tego: Sure, sure. Kind of those somewhat forgotten neighbourhoods and there are some pretty gems around town that you may not realize. Yeah.
Tracy: It’s kind of a grand estate area. It’s three quarters of an acre right there, it’s south of Gibson by the hospitals.
Tego: When you look at statistics—and of course I’m a statistics guy, and I love to look at those things—you look at the average price by area, what we find is that the highest average prices are areas like Sandia Heights which is up, near “The Tram” kind of in that area. North Albuquerque Acres which is north of Paseo, up in that area again, close to Sandia Heights. But those are all—the North Albuquerque Acres are generally acre lots or .89.
Tracy: And some of them are south of Paseo as you get closer up to Tramway, just on the north side of Tanoan.
Tego: Those are higher averaged price and then the other area is Corrales. And with North Albuquerque Acres and Corrales, it’s a similar situation. You have a minimum of one acre lots. You do end up with larger estate type properties.
Tracy: And they’re not a minimum. I mean there’s variation.
Tego: Sure, sure.
Tracy: And most of them aren’t really a true acre. They’re just under. There’s also Placitas. There’s a couple that have sold in the South Valley and even the west side and East Mountain.
Tego: Yeah. It’s really, really interesting. And obviously, if you’re looking for those type of homes and I do think it’s a great time to be a move-up buyer which is moving from that $250,000 to that $400,000, $500,000 house.
Tracy: If you can get a luxury home and your payment is $2500 a month, you should be locking it in right now, moving up to that.
Tego: The interest rates are so good right now like we talked about in the beginning. We got to wrap this up. This has been Albuquerque Real Estate Talk. If you want to talk real estate with us, the Venturi Team, call us at 505-933-6881 or search for homes, look at market conditions on our website at welcomehomeabq.com. Have a good weekend!
According to recent CoreLogic report, foreclosure inventory represented 1.7% of all homes with a mortgage nationwide in May of 2014, compared to 2.5% in 2013. New Mexico is slightly above average with 2.1% og homes with mortgages in Foreclosure. However… we continue to trend down.
Albuquerque Real Estate Talk July 19, 2014
Tego: Welcome to Market Makers and Risk Takers on 959 FM/AM 1600 and this is Albuquerque Real Estate Talk with Tracy and Tego Venturi of The Venturi Team and Keller Williams Realty. We come in here every week, don’t we Tracy?
Tracy: We do and we just love it!
Tego: Talking about real estate in the Albuquerque area. You know interesting we are having a discussion talking about sales people versus teachers and to a certain extent I feel like we’re teachers, in the real estate process there’s just so much that happens and we do feel like we have the heart of a teacher, don’t we?
Tracy: We do, we don’t resonate with being sales people. We resonate with customer service and being educators, teachers, guidance-type people and so when we think about why we come and do a radio show each week.
Tego: It’s about the money!
Tracy: Yeah, the free gig! And so it’s really education. We really love to know about our market, know the stats, and be able to share them with people and make sure that people know the resources that are available to them.
Tego: Yeah, and so along that line that’s some of the things we are going to talk about today, just kind of come over. We’ve seen some studies that talk about some misconceptions in the mortgage market, what kind of down payment you need and so we’re going to go through that, and going to talk about that. As well as, we’ve got this great list that Harvard University did a study and put together this great list of 15 reasons to be a home owner, so I thought that would be a good one to go over as well.
Tracy: I haven’t heard it, so I’m looking forward to it. I wonder if some of my favorite reasons are on there.
Tego: Well and I’m sure a lot of these will resonate with you obviously, we sell a lot of homes, year out; seen a lot of homes, helping people both buy and sell, so it should resonate with you for sure. And then you wanted to highlight a neighborhood, right?
Tracy: I thought we should talk about Rio Rancho. Lot of homes being sold there, lot of people choose that to buy a home, so thought we’d feature Rio Rancho today.
Tego: So first off let’s go back, this is Tego Venturi and again Tracy Venturi with the Venturi Team of Keller Williams Realty here in Albuquerque, we specialize in residential real estate. If you want to get ahold of us, they can call us at…
Tracy: 505-933-6881, we are working this weekend as we do most weekends. We’re a great team of realtors, so unlike solo broker, we have, many of us that work together, so you might not reach me or Tego or you might, just depends on who picks up the phone but we’re all working together to take care of home buyers and home sellers.
Tego: Great, great Tracy! So let’s jump in to this down payment study that was done and it was Zelman & Associates, this a study they did, they ask a whole group of people is, “what do you believe the down payment is needed for a home?” and you’re going to be shocked to hear this Tracy.
Tracy: My guess is, most people guess “you need 20% down to buy a house.”
Tego: Yeah and what they found, about 39% of all respondents thought you needed at least 15% down to buy a home. I mean, that’s pretty substantial.
Tracy: That’s what percent? 38%?
Tracy: That’s basically 4 out of 10…
Tego: Right, 4 on 10, think you need 15% down, so what’s the truth there Tracy?
Tracy: Well there’s a lot of no down payment programs especially like for VA, teachers, heroes, those type of things, physicians, healthcare but really 3 ½%, 3%, 5%, those are the norm these days. What we do know is when things took a shift, maybe in 2008, and the market shifted and it got more difficult to do loans, everyone has assume since then that you have to have more down payment, and that’s a myth. It’s actually gotten better.
Tego: Sure it is and obviously you know in, gosh what year, 2009, 2010, when we started really getting kind of crazy stringent on the lending standard, which was needed. It was really difficult and now things have gotten more stream lined, the lending standards are still strict and they should be. I mean obviously people that shouldn’t buy a home, that can afford to buy a home, you’d be doing them a de-service by putting them into a home but it is a little bit better that it has been, now.
So for a home in the Albuquerque area, the FHA limit is $271,000, so…
Tracy: Loan amount…
Tego: The loan amount, so if you purchase a home up to $280,000, an FHA loan is 3 and a half % down payment.
Tracy: Right! And if you have a credit that’s not on the stellar side, you can still go apply and get an FHA Loan and your monthly payment would be similar as if you are putting 5% down conventional, so, you know…
Tego: Going back to the study there is, let me just jump in here Tracy. Going back to the study there is an interesting fact though, they did it by age groups and it was actually almost 42% of the 30-34 year olds, thought that you needed a pretty substantial down payment, so and that’s a group of people or those are the people that may are already be homeowners, they may be bought a home back in 2010 during the first time home buyer tax credit and now they’re ready to be move up buyers as we call them.
Tracy: Yeah, you know what we know about that group though, is they feel like they probably don’t have enough equity in their current home to buy a new home and move up to the size home they really need now, that they’re probably has grown, but in really because of the low down payments, they probably can be move up buyers.
Tego: Yeah exactly and so there is something that Freddie Mack put out, now if you don’t know who Freddie Mac is, it’s kind of a government sub agency sort of that purchases a lot of the mortgages, they basically…
Tracy: The express very clearly now, thanks!
Tego: I know, as clear as mud! It, they fund a lot of the mortgages that they put out some stuff and you have the steps there, the quotes on that, right Tracy?
Tracy: Right, so when we do a loan, the lender is deciding if this loan can be backed by Freddie Mac, so they’re looking at Freddie Mac guidelines so it says, “First thing can get a conforming conventional mortgage with a down payment as little as 5% sometimes as little as 3% coming out of their own pockets.”
So let’s say that’s a $200,000 house, 3% is $6,000, 5% is $10,000, down, so it’s not as big a number as I think a lot of people believe.
Tego: Yeah and it’s interesting that even Freddie Mac would put this quote out, right?
Tracy: Yeah and the other thing they said is the purchase mortgages with down payments under 10% have more than quadrupled between 2009 and 2013. So it is a myth that you need more down payment now than perhaps prior to, when the market was better.
Tego: Correct, and of course back when let’s say 2004-5, back when they were doing the fog and mirror test to apply for a loan. Things are very different now, and there is not those really loose mortgage standards that we had although the down payments are still low, you still have to qualify.
Tracy: But we talk to lenders all the time, we’re always working to get our buyers more qualified for a loan and really the guidelines have gotten a lot looser as far as what your credit score needs to be. There’s some loans out there, FHA perhaps, that are in the high 500 credit score.
Tego: I’ve heard that as well, correct.
Tracy: Which you know for a while there, that was non-existent, it had to be a high credit score. Now, it’s people that should be buying a home…
Tego: Can buy a home.
Tracy: Can buy a home.
Tego: And again we started off talking about we feel like we’re educators that we need to put this out, obviously we’re really strong in the housing market. We believe the housing market is where people should be. And again we’re going to go through this 15 reasons and I think signify that. But I think there’s a lot of misinformation out there and I think there’s a lot of folks, at around the fence not getting into a home because of somebody’s miss so I feel like it’s important that we put this out there. And if you are listening, spread the news.
Tracy: The other thing that we’ve talked about before the piggy back on down payment is there are a lot of down payment programs available for assistance. So you may not even need to have a down payment if you’re in an income qualifying position, you have so many kids, or whatever.
Tego: Yeah until recently Tracy, as you know I put some stuff in our website about mortgage down payment assistance program in New Mexico. And if you go to our website at welcomehomeabq.com, we have a place where you click on it that says “Am I Eligible for Down Payment Assistance?” and there’s some great, great programs here in the state, there’s Hero Programs so if you’re Teacher, Firefighter, Paramedic, anything like that, there’s programs for disabled folks, there’s low-income assistance, and then there’s even neighborhood specific things like the Saw Mill Community down by Old Town and then Rio Rancho has some specific programs. So there’s a lot of programs out there and so if you go to our website search it, you can put in your criteria and it will tell you what programs you may qualify in the state and those programs basically give you or do some sort of grant or some other type of funding to help you with that down payment.
Tracy: It’s really slick, I was shocked when we first got this ability to do this a few months ago and just put in a few criteria of what we typically see for perhaps a first time buyer and I was shocked at all the things that came up as far as down payment assistance programs that I guess at some point I’d heard of but when you see them altogether there’s quite a few options.
Tego: New Mexico Mortgage Finance Authority has definitely done a great job here in the state with those type of things and so, home ownership is way more possible than I think a lot of people may think so, hopefully us doing this little show get putting that word out there helps people move toward that.
Tracy: That’s right! It might not be you but who do you know that should probably be buying a house when you think about affordability right now generally, you can afford more when you buy than rent, then what you rent would be, so if you’re paying like $1200 a month or $1400 a month in rent, you probably should be buying a house.
Tego: Yeah, yeah, absolutely! And we’re going to go into that here in the next segment, we’ll talk about the 15 reasons based on the survey why you should be a home owner and then we’re going to highlight southern half of 11:07 Rio Rancho, I guess. If you want to get ahold of us, we are the Venturi Team of Keller Williams Realty, you can call our team line at 505-933-6881, and again our website is welcomeabq.com.
Tego: Welcome back to Market Makers and Risk Takers, Saturday here on 959 AM 1600. KIVA the rock of talk here in Albuquerque and Eddie here the station owner, general manager, he has put together this kind of local Saturday morning thing and I really do appreciate him having us come in, talk about real estate every week. We’re just talking about how we feel like we’re hearts of teachers and we love talking real estate and obviously having this form to come out here and do that, we sure love that. And this is Tego Venturi with Keller Williams Realty, and the Venturi Team and I am joined as always by Tracy Venturi of the Venturi Team and one more time I’ll give our number it’s 505-933-6881 and again we specialize in Residential Real Estate and we’re with the Keller Williams Realty here in town, which we’re really thrilled to be at a great brokerage to be associated with, we’re very happy being there.
So Tracy we were just talking about the down payment myth and how so many people think you need this substantial down payment like 15% or more and it’s just not true and there’s so many programs out there that are 5% and many of them, of course the FHA loan 3 ½ %. One other thing I want to tie in to that were mortgage rates were still people were predicting by this time of year that we were going to have rates in 5% range, but we really haven’t gotten…
Tracy: Or 6…
Tego: Oh yeah, we just didn’t get there, did we?
Tracy: No, for people with good credit rates are still phenomenal. Even for people with the lower range of acceptable, the rates are great.
Tego: Yeah and so, there’s a new study out again projecting what the rates are going to be but we’re kind of in it this for 4.1, 4.25 range it seems like at the moment. And most of the projections are putting it up around 5% by the end of 2015. So still you know, over a year away.
Tracy: That’s a long time from now.
Tego: Yeah, yeah, so…
Tracy: And FHA rates this week, I had a home buyer that locked in an FHA rate at 3.75.
Tego: Yeah, yeah, it’s a…
Tego: You know again, we just feel like this it is such a great time to be purchasing a home, in Albuquerque in particular, coz there is a good supply of inventory, meaning homes available for sale unlike other parts of the country where there is a lack of inventory.
Tracy: We have heard that quite a bit from other realtors around the country that not enough houses for sale so home buyers are either having to kind of take ones that didn’t quite work for them or keep looking or be in competition, so…
Tego: So let’s talk about the study that was done, it’s a Harvard University, Harvard University has a Center for Housing Studies and they do a lot of different things but they did this survey of home owners and came up with the 15 top reasons why people should own a home and…
Tracy: Are they in order?
Tego: No particular order.
Tracy: Ah okay…
Tego: No particular order, and so, paying rent, this is the first one on the list here, it says “paying rent is not a good investment” and…
Tracy: Boy, we’ve said that a lot haven’t we? Very simply, paying rent is helping somebody else build wealth.
Tego: Correct, so instead of, when you make that mortgage payment and pay down your loan on your home, you’re putting that money in your bank account. When you pay that land lord their rent you’re putting that money in their bank account.
What’s the next one on the list Trace?
Tracy: Let’s see, number two, it says, “it motivates you to become a better citizen and engage more in important civic activities, this is what people said as a major reason to buy a home.”
Tego: Yeah and I think that’s again, it’s, there’s a lot of these that apply that are come in that pride of ownership thing, right?
Tego: If you own the home, you’re in the community, you feel like you want to engage…
Tracy: And you…
Trego: Makes you a better citizen.
Tracy: Yeah, you have pride in where you live and that makes you kind of engage more, interesting.
Trego: Yeah, the other one on the list here is, you want more living space to move around in and you don’t want to be cramped and as a home owner you have more opportunity to do things with your own property versus a property you’re renting.
Tracy: Right, which is probably on this list…
Trego: It is…
Tracy: “You get to make the house your own,” when it’s a rental you can’t even paint the walls without getting permission of the owner, so it’s hard to do projects around the house to beautify because it’s for somebody else.
Trego: Yeah, I mean if you want that aesthetic and there’s so many people love having a beautiful environment that they live in, work in and if you’re a renter you might not have that opportunity to build that aesthetic that you want.
So their number four says, “it means having a good place to raise children and provide them with a good education.”
Tracy: So that’s kind of the stability, they know this is their home, it’s not like next year we might have move to a new rental house, it kind of helps them have root sizing [17:08]
Tego: Yeah and this next one that says, “provides a good financial opportunity,” and that there’s a lot of these are tie-in to the finances, there are so many studies that have been done that show, people that are home owners versus renters have a substantially larger wealth, let’s say than people that are renters.
Tracy: So, just again, these are reasons American survey came up with of why they think they’re major reasons to own a home. It wasn’t that Harvard just came up with a list, they surveyed real Americans on it.
So the next one, the number seven, it says, “it’s a symbol of success and achievement.”
Tego: Yeah, I mean it may sound silly but you know what again, it goes back to the pride of ownership, pride of having your own place and feeling good about yourself coz you own that property, it’s your own personal property.
The next one here says, “you start building family wealth and generational wealth.” And boy we see that all the time.
Tego: It sure is and it does because obviously if you’ve been paying on a homeless say 30 years, of course most people don’t live on their home for 30 years but you know, now you’ve built this nest egg that you can move on to your family.
So the next one piggybacks on that, it says number nine, “investing in your retirement,” people who own a home very obviously every time they make a mortgage payment that goes into a savings account, basically and when you rent a home, every time you make a mortgage payment it goes into your land lord’s savings account and at the end of 30 years you pay off your mortgage and you’re sitting on a free and clear home and it’s like your savings account right there…
Tracy: Versus someone else owning the home and you paying it off for them.
Tego: I’ve heard it said in another way which is it’s a forced savings.
Tego: It’s forcing you to put some money aside for the future.
Tego: And the next one here is “tax benefits,” there are a bunch of different tax benefits, well just keep moving on here… There’s so many on the list!
Tracy: Well we can all use some tax benefits!
Tego: Yeah, that boy you got that right!
Tracy: Um this one, ah, yeah…
Tego: One of them here it says, “it’s a safer place to raise your family,” again being part of the community, having that pride of ownership, doing the things that you feel are right for the community which you probably would not do if you were a renter, helps you again provide a safe environment.
Tracy: Yup and another one here is, “it gives you something you can borrow against if you need to,” whether it’s for investing in your own child or home equity loan to improve something, hopefully not just for a family vacation but you know, you’ve got equity so if you have to take a loan out because of some unknown medical or something, you got it.
Tego: And this one Tracy, it struck me coz it hadn’t really click with me but it’s very true and it gives you something to borrow against if you have a financial need. And you know you think about it if you’ve been in a home for 10 years and you’ve built some equity and all of a sudden you have an event or maybe you need to pay for some college tuition or whatever it is, now you’ve got something that you actually have something that has some equity unlike something you’ve been renting where you can actually borrow against the property.
And the next one we sort of already covered by guessing and it was “you don’t want to be told how to decorate your home.”
Tego: Yeah and you know allows you to have a nicer home because again you can take care of it! So…
Tracy: Yeah, so…
Tego: It’s a cool list and some interesting facts and again I think a lot of people in our audience are home owners already but yet I think we need to spread the word and our audience needs to spread the word to those folks who are not home owners and how it really is an important piece of your entire home or your entire life.
Tracy: There’s a lot more emotional items in it than I would like to buy a house.
So Tracy we have a few more minutes here, we wanted to talk a little bit about our highlighted neighborhood which was southern kind of Rio Rancho…
Tego: We call it…
Tracy: Southern to Mid…
Tego: We call it 87124 coz that’s the zip code but it’s basically Rio Rancho from the border north up to the northern, the street called northern…
Tracy: Northern Boulevard…
Tego: Northern Boulevard, so yeah…
Tracy: So we’ve been there, we’ve got a whole variety of neighborhoods, we have Cabezon, which is a master planned newer neighborhood lots of newer homes like 10 to… I supposed 10 to 15 years old now but…
Tracy: Or younger…
Tego: Yeah or up to 0 years old… Yeah…
Tracy: Or still being built…
Tego: Or still being built… right!
Tracy: Yeah and then there’s the high resort area, the country club area, and then there’s Loma Colorado, there’s Broadmoor area, there’s kind of the older Corrales Heights neighborhood, the half-acre places next to Intel.
Tracy: So kind o f a lot. We have an amazing house listed in Cabezon that has been on the market. It’s a great single story house by D.R. Horton, it’s a 2 years old, 2300 square feet, really beautiful backyard and huge views towards the kind of city and the west. And that one’s available if you want to know more about it.
The other thing about Rio Rancho, so they’re saying that the population is what right about now?
Tego: In that part, again the zip 87124 is 52,000 is what the, the most recent numbers were…
Tracy: Well so folks that live in the northeast heights that haven’t been to Rio Rancho for a while, that number is probably big, 52,000 in just the southern half of Rio Rancho.
Tego: Yeah, yeah so average prices in Rio Rancho or in that part of town, they range, there’s homes as little as 120,000…
Tracy: Or less, if you get a little… yeah…
Tego: Yeah and they can go up to maybe a half million, correct?
Tego: And there’s all varieties in between there, so it’s a nice community, Rio Rancho is really built out very nice and if… There’s a lot of people were amazed that never make it across the river from the east side of Albuquerque and there’s some really great neighborhoods there, the schools are excellent, parks, it got all the services you want.
Tracy: It is! Well thanks for joining us this morning and this is Albuquerque Real Estate Talk with Tracy and Tego Venturi. You want to call us, give us a ring 688, I’m sorry, 933 6881.
Tego: That was close, that was close, you have the numbers right just in the wrong order.
Tracy: Yeah 933 6881
Tego: 933 6881
If you want to go and search homes for sale or look for some of those down payment programs I was mentioning, go to our website, welcomehomeabq.com.
Tego: This is Market Makers and Risk Takers Saturday morning on 959 FM AM 1600 KIVA, The Rock of Talk. This is Albuquerque Real Estate Talk with Tego and Tracy Venturi of The Venturi Teams and Keller Williams Realty. We’re here every week talking about residential real estate in the Albuquerque area.
We have a good line-up here today, Tracy! What do we have going on today?
Tracy: Well, sort of the usual things; our favourite new listings, some great houses to talk about, we’ve got our tip of the week and our question of the week and a little bit of the market update and we’re going to be talking a little bit about staging your home for sale and also showings. You’re one the market, you have somebody coming to look at your house; what should you do in advance of that showing?
Tego: Great advice! We’ve got some good advice coming in and you’re going to do that for us here in a little bit.
I’ve got a little bit of a news roundup and I wanted to just kind of go over some of the things that we saw this week in Albuquerque newspapers regarding residential real estate here in Albuquerque.
But before I do that, Tracy, how do people get a hold of us if they want to talk real estate, ask about market, ask about anything, look at homes in the Albuquerque area? How do they get a hold of us?
Tracy: Sure! The best way is by phone – 933-6881. You can also check us out on the website www.welcomehomeabq.com; lots of great ways to search for property there – by map, by area, by school, by zip code, by price, by bedrooms, all sorts of different ways. Check out the website. We do work pretty much all the time so give a call, 933-6881.
This week there was some interesting thing on home prices in New Mexico in May. Take it over.
Tego: Yeah! We had, basically even for the number of homes sold up slightly for the state and home prices actually have increased, at least the median home prices have increased over last year and that’s state wide. If we look at just the Albuquerque market, we’re seeing about even number of homes sold and then we’re also seeing just a little bit of price increase, maybe two per cent in our market. The median price has gone up about two per cent and the average price has gone up about three per cent.
But those don’t tell a whole story on appreciation because that accounts for more higher-priced homes selling versus lower priced homes.
Tracy: Tego, yesterday you were telling me about Placitas and thinking we should spotlight Placitas a little bit. Tell me what you were seeing when you were looking up the numbers there.
Tego: You know how I am; I’m always looking at the market stats. One of the things I saw is that Placitas this year is up about twenty per cent in a number of homes sold versus last year. It’s not a big number in number of units but it has increased and that’s a good sign. Placitas got hit pretty hard with the downturn in ’08 for sure.
Tracy: Yeah. It may not be big numbers of how many extra homes have been sold this year over last year but for the folks that have had their houses on the market that have sold, that’s pretty significant.
Tego: It is. Tracy, if people aren’t familiar with Placitas and where it is and what it’s all about, can you just give us a snapshot of what the community of Placitas is like?
Tracy: Sure! Placitas is great! It’s from I40 and I25 interchange, it’s about ten miles north so you go about ten miles to the Placitas and Bernalillo exits. If you get there and you go west you end up in Bernalillo and north Rio Rancho and if you turn right you end up in Placitas. It’s beautiful rolling hills with sagebrush on them, huge views to Cabezon Peak and the Jemez and Santa Fe and the Sandias. Most of the people there live on acre lots.
Tego: Yeah! If you’re looking for an area to be relatively close to the city so you can still commute but be out of the city, have the big lot, have the big view, have the big sky over your head. It’s a neat community and if you haven’t checked it out it’s just worth a little road trip, a nice day trip. There are hiking trails, of course because you can hike in from Placitas into the north side of the Sandia wilderness area.
Tracy: It sort of looks to me like a Georgia O’Keefe painting. Great community! There’s a nice little mercantile area with restaurants, shops, neat little things, a great community and things like that.
Tego, what’s the question of the week?
Tego: The question of the week, segued right into that. We have something come up and I was talking with somebody and we were just talking about refinancing. The question was should I refinance? When does it make sense to refinance my home?
Tracy: It doesn’t always make sense, right?
Tego: Of course.
Tracy: There are some reasons you should not refinance your home even if you’re at six per cent interest.
Tego: Yeah. The old general rule was if you can get a one per cent better interest rate then it probably makes sense to refinance but that’s not always true. I’ve been looking and doing a little investigating online and I found a story on AOL real estate that addresses some of these things.
Tracy: What are the costs involved in refinancing? Is that part of the picture?
Tego: Yeah, it is. One of the things you always have to remember when you refinance is that there’s always going to be closing costs. You always have to do a new title insurance policy and you’re going to have the lender fees and a bunch of other stuff. Those fees generally get rolled back into your loan. In most cases when you refinance you’re not going to be bringing money out of pocket, however you are taking on some new expenses and putting them into that new loan.
Tracy: An example of that; let’s say your loan amount is a hundred thousand. You might end up spending two or three thousand because you have to do the owner’s policy and new appraisal, the fees for the loan and they add those back in so your loan amount might end up being a hundred and three thousand.
Tracy: What about the length of the loan? Maybe you were down to twenty-two years left and you just decide to refinance?
Tego: That’s the other thing. That’s one of the three things here on this list. Yeah, it sounds great, you’re going to lower your monthly payments, however, instead of a home that you paid off for eight years, you’re now down to twenty-two years. You’re going to roll it back out to thirty years so in the long run, if you’re going to be staying there for a while then that may not make sense.
The other thing that I think is one of the most important things to look at is how long are you going to be in the home? We talk about this, Tracy. Most people under-predict the time that they expect to be in a home, right?
Tracy: Totally! People say, “I’m never moving again” and two years later they’re calling and saying, “Guess what? I’m ready to sell my house!” It’s great to hear from them, of course.
Tego: Yeah. There are some great tools online. If you just did a Google search for ‘Should I refinance?’ or ‘Mortgage Loan Refinance Calculator’ you’re going to find these tools that will give you the ability to put in your current payment, your new mortgage amount, your lender cost, your closing cost and do a calculation based on time – how long is it going to take – and so on.
I did a quick calculation, Tracy, just based on a two hundred thousand dollar house. If you’re currently at five per cent interest rate, your monthly payment is – let’s just say – a thousand and seventy-five. If you’re going to refinance, bring that interest down to four and a quarter, your monthly payment is now going to be nine forty-five so that sounds pretty good. It’s a hundred and thirty dollars a month difference.
Tego: The thing is, you’ve got five thousand dollars in closing cost on top of that now that you’ve put into that mortgage. There’s a breakeven point where you actually saved that one hundred twenty-nine or a hundred and thirty dollars a month. In this case it was forty-seven months before you actually broke even.
Tego: It doesn’t make sense. Four years.
Tracy: Four years! If you’re going to be in your house for more than four years then in that case then it would make sense because after four years every month you’re saving a hundred and whatever dollars so that’s great.
Tego: Yeah. I would say if you’re thinking about refinancing, look at some of those mortgage calculators and talk to a good mortgage broker, not somebody who is just trying to slam you into mortgage; somebody that’s really going to advice you. We recommend local people always because there are some great, great lenders here in town.
Tracy: We actually have a couple lenders that do excellent refinances; if you give us a call we can give you their information.
Also, Tego, can you post that link on our website, maybe in the blog so people can do the mortgage calculator on our website?
Tego: Absolutely! I’ll do that. I’ll put a blog post up here today that shows how to calculate your mortgage to refinance as well as the story about reasons why you shouldn’t refinance your mortgage.
Tracy: To piggyback on that, one of the things that’s amazingly effective in cutting down on the time you pay for your house and how much interest you pay is if you pay your mortgage bi-monthly instead of monthly or even bi-weekly so that bi-weekly you would get twenty-six payments in instead of twenty-four. If you pay bi-monthly you’re paying the interest earlier. What we know is that if you switch the way you automatically – let’s say you have it on auto payment through your bank, your mortgage. If you switch it to pay bi-weekly or bi-monthly instead of a thirty-year term to pay off, it would come down in somewhere in twenty to twenty-two years just by switching the frequency of paying your mortgage. For a long of us, that’s huge and it wouldn’t really make a difference. We already know our monthly outflow so it would really be wise to call your lender and switch your auto-pay to at least bi-monthly if not bi-weekly.
Tego: Again, there are tons of calculators out there on the internet. Do a search for bi-weekly or bi-monthly mortgage payment calculator and you’ll find something. You can run the numbers for yourself and see. It makes sense. We did it, Tracy, and it’s worked great for us.
Tracy: It has. When you set up a new mortgage, if you’re buying a home from us, just tell them you want to set it up that way right from the beginning. We’ll be hoping that you all do that.
Tego: Yeah. This is Albuquerque Real Estate Talk on KIVA The Rock of Talk. We are going to take a quick break here. Be back shortly; going to talk about preparing your home for sales, staging your home, what that all is about. The crust of it, Tracy, is how to get more money for your home when you’re going to sell it.
Tego: How do you put more money in your pocket? That’s really what it comes down to.
Tego: We’ll be back shortly!
Tego: This is Market Makers and Risk Takers Saturday morning on 959 FM AM 1600 KIVA, The Rock of Talk here in Albuquerque, New Mexico – sunny, Albuquerque, New Mexico!
We’ve got a nice warm summer going here, don’t we, Tracy?
Tracy: Sure is! All of a sudden I heard “Welcome to the beginning of summer” and I was like, ‘Really; it just turned summer?’
Tracy: It feels like it’s been summer a while.
Tego: Let’s introduce ourselves again. This is Tego Venturi with Keller Williams Realty joined by Tracy Venturi with Keller Williams Realty. We’re a part of The Venturi Team of Realtors here in Albuquerque specializing in residential real estate sales.
Eddie: Let me interrupt you guys. Weather forecast for tomorrow – ninety-eight degrees Sunday afternoon, first day of summer.
Tego: Wow! I hope my air conditionings work!
Tracy: That’s awesome!
Tego: It’s hot out there!
Tracy: It is.
Tego: We got the swamp coolers worked in.
We’ve actually grown our team a little bit. We have a few new members that have joined us. We are up to about fifteen people on our Venturi Team Realtors that all work together to help buyers and sellers with their home and real estate needs.
Tego: We’re a unique situation in real estate. This is actually pretty common around the country now; it’s kind of a trend where realtors team up and team together. Everybody gets on the right seat on the bus and doing the job that they’re very good at. Instead of trying to do everything, because there are so many parts and pieces to a real estate deal, both on the buy and on the sell side that it’s nice to have specialists to work through these deals.
Tracy: Yeah! If you are thinking of selling your home, give us a call and we will meet with you and put together a great marketing strategy and give you information about how we sell homes and why we’re so successful.
If you’re thinking about buying a home, we have a couple of awesome people that specialize in working with home buyers and they see thousands of houses a year. We look forward to hearing from you; 933-6881.
Tego, let’s talk a few of the properties we listed for sale this week. There were some really great ones. I know there’s one in River’s Edge.
Tego: Yeah! There’s one that I want to bring up. We’ll talk about River’s Edge first since you brought that up.
If you’re not familiar with River’s Edge, that’s the community kind of north Rio Rancho; if you go through Rio Rancho Boulevard of what is it called now – freeway?
Tego: 528! It’s got three different names. Anyway, you go through Rio Rancho, just pass the turnoff into Corrales or the back road into Corrales, I guess you call it. On your right hand side there is the River’s Edge community. One two and three; there are three phases there.
Tracy: On the river bank!
Tego: On the river bank! Imagine that! That’s why they called it River’s Edge. We have a home listed for sale there at a hundred and fifty-nine, a hundred and sixty thousand. It’s a great house in that price point because it’s been totally updated, amazing kitchen, granite countertops, really well landscaped.
Of course, these aren’t brand-new homes, these were build maybe twenty years ago now but it’s a nice, solid neighbourhood convenient to Corrales, Rio Rancho. Rio Rancho has so many services now, there’s pretty much everything you need there unlike when I first moved to Albuquerque, there wasn’t much in Rio Rancho. But now it’s a great community and something to look at.
It’s Gamble Quails; if you jump on our website welcomehomeabq.com and look at the featured properties you’ll see it there. A hundred and sixty thousand for a nicely updated house – three bedroom, two bath, two car garage.
Tracy: That’s on a quarter-acre that’s really beautiful .
Tracy: What’s the other one you wanted to tell us about?
Tego: The other one is also in Rio Rancho. It is in a community called Vista Entrada. If you’re familiar with that, Tracy, it’s a little further north, half acre lot for the most part in this community at Adelia and 528; they’re just west of 528 off Adelia.
Tracy: Right, the Judicial Complex.
Tego: The San Diego County Judicial.
Tracy: Sandoval County.
Tego: What did I say?
Tracy: San Diego.
Tego: Sandoval County Judicial Complex. This house is a three hundred and thirty-two thousand and it’s one of the highest quality, energy-efficient, really meticulous homes I’ve seen in a long time. It’s not a gigantic house, it’s twenty-one hundred and fifty square feet but it has ICF walls. Are you familiar with ICF walls?
Tracy: Insulated Concrete Form, absolutely! It’s very highly rated for energy efficiency. It’s a nice, thick wall; it’s kind of sound-proof, provides kind of a serenity inside.
Tego: Super efficient, super solid and literally bullet-proof house. The inside is all meticulous wood work. All the finishes were done – custom cabinetry, custom doors and so on. And it’s solar power so it’s really zero-energy bill house.
Tracy: You saw this house this week and I remember you coming back to the office and just telling everybody, “You guys have to know about this house” although many people on our team have seen it.
Tracy: It’s really a gem. If you’re interested in a really efficient green-built home that would be a great choice.
Tego: Again, visit our website. Fallcreek Court is what it’s called, the street name of that home.
Tracy, let’s talk about some tips. We had talked about this earlier – getting ready to sell your home. I want to just get into that before we do anything else because when people get ready to sell their home, they really need to think about it. It’s more than just saying, “My home’s in the market now. Put it on the MLS, put the sign out.”
Tracy: It really is. It’s becoming a product instead of your home. We have to think about it as more of a product even though that’s tough when you have all your memories in the house.
Think about when you go to sell your car. What do we do? The first thing we do when I need to sell an automobile is I go and have it detailed. I might take it to Octopus and pay the most money I can to have them shampoo the carpets and clean it all up. If I have any dings I might take it to a dent repair place.
Tego: Yes. We might spend two to five hundred dollars to get a car ready to sell – it’s a ten thousand dollar car, let’s say. But we’re talking about a house and it’s a much larger asset; it’s probably the largest asset that most people have. We should put that same type of attention to detail into prepping the home for sale, correct?
Tracy: Absolutely. Staging and setting up the house to put its best foot forward is the best thing that we can help you with and that we can do for yourself to make sure that you can get the most money in the least amount of time when we sell your house.
Tego: When we say staging, what does that mean? I think to different people that means different things. I know there’s a ton of shows on Home and Garden TV talking about staging and that stuff. What does that mean? Can you define that, Tracy?
Tracy: I have to confess first that I watch HGTV.
Tego: I know you do.
Tracy: You say I show houses all day, how can I watch it on TV, too and I’m like, like the rest of the world, real estate is interesting.
Staging, yes. There are a variety of things. It can be as little as the realtor – come to the house and say, “Here’s what I would do to make it look better. Here’s the list. Let’s put together a list of things to do” to hiring maybe an interior designer, somebody that’s got some skill at this and they do this for a living to come in and you pay them by the hour and they re-stage. They say, “These photos have to go. We need to put this picture a little bit lower. Let’s move this chair over here. Let’s clear this path in the walkway. Let’s put away some toys.”
Tego: These are trained designers that can come in and basically take what you have and present it in a way that’s maybe more appealing to the masses of the people that are going to be looking at the home, correct?
Tracy: Exactly! We had a house in Loma, Colorado a couple of years ago – great house, lots of showing, we weren’t getting the offer. We suggested restaging and they hired an interior designer who was there for two to three hours, brought in a new kitchen table that they rented from a rental place and changed around photos and furniture groupings and things and really just restaged. We sold the house that week, the next person through.
Tego: Staging can come down to something as simple as cleaning the house. I know everybody gets comfortable with their environment that they’re in constantly and sometimes it just takes somebody else coming in and saying, “I need to do a little clean up over here, a little paint over here and move these stuff around” because we all just get comfortable with how we live.
Tracy: In our market, to piggyback on that – we still have quite a few houses to sell. You’re competing for that buyer so the house that’s been spit-shine and polished, you walk in and it feels sparkling, light, and bright. It’s the one that’s going to go.
Staging can also be how the house should look when the buyer comes to look at it. Opening up the blinds, turning up the lights, making sure it smells good. One of the tricks of the trade is to put a little bit of real vanilla in your microwave a little bit before a showing and set it somewhere inconspicuously in your kitchen and it just freshens it up. A bunch of sprayed smelly stuff is not the way to go; that really turns off buyers.
Tego: You’re right. It can overpower folks when they walk in the door. There are a lot of people with chemical sensitivities so you have to be aware that if you’re not there may be other people that are.
Tracy: Very often people don’t like to leave the house and still smell it two houses later which can happen.
Other things about staging, Tego; we often recommend professional stagers with furniture.
Tego: Sure. That takes it to the next level. Instead of just getting a consultation and using what you have, you have somebody that basically rents you furniture. They move it in, they prepare it, they stage a home that works on homes that are vacant, obviously. We’ve done that a few times with great results.
Tracy: When we take the photos of the house, we look at a vacant house versus one that’s been staged with furniture. The photos are so different; they’re inviting and it doesn’t scream that I’m a vacant, unloved house.
Tego: Yeah. Tracy, we have some resources available for people if they want to get some help in getting their home ready for sale. We always have these available for our clients that obviously, we’re listing their homes. We’re happy to send them to anybody that reaches out to us.
Tracy: Right! We have a couple of pamphlets that we can email – Forty-Seven Easy Ways to Make Your Home Sell Faster; great tips in there.
Tego: Good old checklist, you know?
Tracy: A checklist, sort of, for prepping and staging your home for sale. If you like those just send us an email from our website and we will get those off to you.
Tego: Our website is –
Tracy: www.welcomehomeabq.com. Boy, the time has flown here this morning!
Tego: Yeah! Let’s squeeze in that one house in Corrales. We just want to talk about it because it’s just a spectacular place.
Tego: You’ve been there. I put the sign up. It’s a great little location.
Tracy: Sure is!
Tego: Excuse me, not little!
Tracy: South end of Corrales, in the Greenbelt; two full acres – lush green grass. It’s mostly adobe home with two masters; about three thousand square feet, single storey, South end of Corrales. It’s really great; it’s seven hundred and sixty-five thousand.
Tego: Two acres which is kind of rare in Corrales. A lot of acres in Corrales mostly.
Tracy: And irrigated.
Tego: Yeah. There’s irrigation nearby. It’s a great property.
Anyway, thanks for listening! This is Venturi Team Realtors, Tego and Tracy Venturi and this has been Albuquerque Real Estate Talk. Thanks for listening!
Again, if you want to reach out to us, we’re at 505-933-6881