Real Estate in Albuquerque

PSYCHOLOGY OF BUYING A HOME

2012-02-08T12:28:00.000-07:00

Conducted by International Communications Research (ICR), a leading third-party research company, the findings from the Coldwell Banker Survey include the following highlights:
Quality, “Feel”and First Impression of Home Matter
More than three out of every four respondents (78 percent) felt that the quality of a home is more important than square footage.
The majority of respondents (60 percent) also said that the “feel” of a home is as important as its price.
12 percent of respondents knew their house was “the one” even before stepping inside. After visiting just once, that figure rose to 51 percent.

“While some buyers begin the process with a list of “must-haves,” this data demonstrates how intangible impressions like “quality” and “feel” factor heavily into the home decision-making process,” said Dr. Peters. “In fact, some people even experience ’love at first sight’ when it comes to their homes, which means one cannot overstate the importance of a strong first impression. And price isn’t all that matters – as opposed to investing and then hoping for an overnight return, consumers recognize that a home must have the right ‘feel’ for their everyday lifestyles.”

Buyers Prefer Security, Nurturing and Cozy Spaces Over More Abstract Ideals
51 percent of respondents said that, “A home should be a space that feels safe and secure,” while an additional 16 percent felt it should be “full of warm, cozy spaces where I can curl up.” Taken together, these responses heavily outweighed those who felt a home should be a “refuge to get away from it all” (13 percent), “open to nature with great views (12 percent),” or “a space that feels airy and light (6 percent).”
58 percent of respondents agreed with the statement, “My home is a place to shelter and nurture my family.” The next most popular response was, “My home is a place to escape from the pressures of daily life,” which 19 percent of respondents agreed with.

“Lovely views and lots of light are nice to have,” said Dr. Peters, “but these results underscore that first and foremost, a house becomes a home when it feels comfortable and safe for the family that resides there. Now more than ever, consumers are probably more inclined to choose security over special add-ons like lofty views or an airy atmosphere.”

Opinion on proposed new refinancing plan?

2012-02-08T12:26:00.001-07:00

NEW YORK (CNNMoney) -- The Obama administration on Wednesday detailed its latest plan to help millions of homeowners refinance their mortgages to today's historically-low rates. The plan, which requires approval by Congress, would allow borrowers who are current on their mortgage to save an average of $3,000 a year by refinancing into loans backed by the Federal Housing Administration, according to the U.S. Department of Housing and Urban Development. The plan is estimated to cost between $5 billion and $10 billion. To pay for it, President Obama said he does not plan to add to the deficit. Instead, he wants to impose a fee on large banks -- a move that may have a hard time making it past members of Congress, who have rejected the notion of taxing the banks in the past.

The refinancing plan is the latest in a string of programs designed to help solve the nation's housing market crisis. Three years ago, Obama unveiled the Home Affordable Modification Program (HAMP) foreclosure prevention effort and soon followed up with the Home Affordable Refinance Program (HARP), which helps homeowners who owe more on their homes than they are worth refinance their loans. But the programs, which sought to help 8 to 9 million homeowners who hold loans from government-supported Freddie Mac (FRE) and Fannie Mae (FNMA, Fortune 500), have helped only some 2 million to date.

What's different about this latest proposal is that it would help borrowers with private, non-government bank loans who could not obtain new refinanced loans in the past because they owed more on their mortgages than their homes were worth. "If you're underwater through no fault of your own and can't refinance, this plan changes that," Obama said in a speech in Falls Church, Va. On Wednesday. To be eligible for the new refinancing program, borrowers must not have missed a mortgage payment for at least six months and have no more than one late payment in the six months prior to that. They also must have a credit score of 580 or better, a threshold that the administration says 9 out of 10 borrowers meet.

The borrower's mortgage balance also cannot exceed the loan limits for FHA-insured loans in their communities, which range from $271,050 in low housing cost areas to $729,250 in high-cost ones. They also must own and occupy the home covered by the loan.

What do you think?

Credit Scores versus Low Interest Rates

2012-01-22T12:49:00.000-07:00

Many consumers applying for a mortgage are going to start sharing more personal information with lenders next year, like it or not. FICO scores, the industry standard for determining credit risk in mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration, largely have been based on a person's credit history. But in an attempt to develop a more well-rounded picture of a person's finances beyond credit, tools are being developed to help the lending industry dig deeper. Fair Isaac Corp., or FICO, the company behind the widely used scoring formula announced a separate score that will be available to mortgage lenders and incorporates information that will include payday loans, evictions and child support payments. In the future, information on the status of utility, rent and cell phone payments may also be included. Separately, last month, the big three credit reporting agencies, Experian, Equifax and TransUnion, began providing estimates of consumer income as a credit report option. And earlier this year, Experian began including data on on-time rental payments in its reports.

The new information could prove to be a double-edged sword for consumers: It may open the door to homeownership to some consumers who have, according to industryspeak, a "thin file" or worse, a "no-file," meaning they lack sufficient credit histories. On the other hand, the extra information may make a borderline borrower look even worse on paper. And it's unlikely to quiet critics who complain that too much emphasis is put on a single number. It may expand the universe of people who can get a mortgages.

FICO scores have been around since the 1950s, but they didn't become a major factor in mortgage lending until 1995, when Fannie Mae and Freddie Mac began recommending their use to help determine a mortgage borrower's creditworthiness. The score, which ranges from 300 to 850, factors in how long borrowers have had credit, how they're using it and repaying it, and if they have any judgments or delinquencies logged against them. The change comes at a time when the average FICO scores of homebuyers who qualify for loans continue to rise, as mortgage lenders reward the most creditworthy borrowers with low rates and tack extra fees onto loans for those with lower credit scores. The extra information may also help more affluent homeowners who aren't on the credit grid. Residential lenders are open for business. Money's almost free; it's extraordinary.

Foreclosures Suspended Until Jan 2, 2012

2011-12-13T15:52:00.000-07:00

Washington, DC - Fannie Mae (FNMA/OTC) announced today that it will suspend evictions of forclosed single family and 2-4 unit properties from December 19th, 2011 throught January 2nd, 2012. During this period, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home.

"The holidays are meant for families to spend time together, especially if they've gone through the stress of financial challenges and foreclosure," said Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae. "No family should have to give up their home during this holiday season. Fannie Mae is committed to helping borrowers avoid foreclosure whenever possible and we encourage any homeowner who is having difficulty making their payment to reach out for help."

Home Sales Up but Values Down

2011-11-30T13:15:00.000-07:00

Albuquerque like the rest of the US saw home prices falling after some small gains in home values in the Summer and Spring of 2011. In ABQ, almost 30% of home sales are short sales or foreclosed home where the bank takes 20-25% of the market value for a home. For a Seller, these distressed properties depress the value of nearby homes. For Buyers, there continue to be terrific values out there especially with low interest rates. The average median price in ABQ area was $167,000 in October down 7% from last year. Recovery is a long way off. To see an excellent article on the national trend click on the link below.

Brainpower Ranking High in ABQ

2011-11-20T13:12:00.002-07:00

Albuquerque has been ranked among major U.S. cities for 'brainpower' in On Numbers' analysis of educational attainment in 269 communities with more than 100,000 residents.
The Duke City ranked No. 68 in the analysis. The city's population in 2009 was estimated at 515,107. The educational numbers show almost 14 percent of all adults (25 or older) have earned graduate and/or professional degrees.
Nationally, Ann Arbor, Mich.; Cambridge, Mass.; and Berkeley, Calif., hold the top three spots.
In my practice, I deal with many, many clients from Sandia lab, UNM, and even Los Alamos. I enjoy the logical thinking and analysis those clients demand. My husband, the aerospace engineer, says I'm a "closet engineer" but don't tell anyone!

Foreclosures Are Selling Quicker, BofA Says

2011-11-17T10:07:00.000-07:00

As I mentioned earlier this week, banks are moving foreclosures and buyers are gobbling them up. The prices are terrific. See article below.

Foreclosures Are Selling Quicker, BofA Says

Forclosures UP - Good News Bad News

2011-11-10T09:21:00.000-07:00

Foreclosure starts are reversing course and are back on the rise, which is expected to continue to put downward pressure on home prices, a new report released Monday from Fitch Ratings says. With a jump in the inventory of distressed homes, Fitch predicts home prices to dive another 10 percent nationally before stabilizing.
Foreclosures are up by 7-10% in the last month depending on what source you believe. This trend was expected as the banks start putting their foreclosures on the market after the robo-signing scandal temporarily brought foreclosures to a standstill. Fact is banks need to get rid of these properties to improve their financials. Like they need to have more profit, but that’s another blog!
The spike is nearing the average rate of 14 percent that was seen between 2000 and 2010, according to Fitch’s RMBS (residential mortgage-backed security) Performance Metric.
Foreclosure initiation rates on borrowers who haven’t made a mortgage payment in more than six months also have nearly doubled in the last five months. This means that they are not as patient with the timeline needed for a short sale and are rushing to get into the foreclosure sale. Although the home is sold for less as a bank-owned property, banks do NOT give up their right to file for a deficiency waiver so can come after the homeowner for the difference between mortgage owed and sale price!
The good news is that for buyers there are some very competitively priced short sales and even lower priced bank owned properties. The bad news is for Sellers who find themselves competing on price just to get their house sold. That said, there are many Buyers who don’t want to mess with a distressed property and would rather have the home that is in the best condition and fairly priced. That rule remains the same. The shiny penny sells first in all cases.

Refinancing Home Loans Now Easier

2011-11-07T12:44:00.001-07:00

The government announced enhancements to a refinance program that will enable homeowners whose mortgage balances are higher than their home values to refinance at today's low interest rates. Here's the skinny on what the program revisions mean to consumers.The Home Affordable Refinance Program was launched in March 2009 as part of the Obama administration's Homeowner Affordability and Stability Plan. But the program has fallen well short of helping the 4 million to 5 million borrowers originally projected largely because many of the prospective recipients have seen their home values plummet over the past few years.So the Federal Housing Finance Agency announced that equity requirements are being eliminated from the program. The regulator had previously limited the loan balance to 125 percent of a home's appraised value. The program changes will be implemented by Fannie Mae and Freddie Mac by Nov. 15. The two secondary lenders buy loans from banks and mortgage bankers, package and sell the loans to investors, and guarantee the payments to investors. Downside is that Lenders aren't required to participate in the program, so there are no deadlines in place for when the program might be available at a particular lender. Eligible borrowers are advised to contact their existing lenders or any other mortgage lender offering HARP refinances.I recently achieved Certification as a Distressed Properties Expert do if you know of anyone who has concerns about their mortgage or getting into a default situation, have them contact me. Judy@JudyPierson.com or call 505-220-9193.

ABQ/RR Home Sales Show Signs of Life

2011-10-30T13:09:00.000-06:00

While the number of people who bought existing homes fell slightly this last month, the sale of new homes in NM rose slightly. The median price of sold existing homes rose 5% from August to now with a median price at $171,500. The average price of new homes fell as builder's target first time homebuyers.
Interestingly, activity among first-time home buyers accounted for 32% of all sales. These buyers are critical to get the ball rolling, so to speak, because for every house they buy the Seller has to buy "up" the food chain. Sale by first-time home buyers is an important indicator for a recovering home market.
Another good indicator is that foreclosures edged down to 30% of sales. As these discounted distressed properties clear out of the inventory, home prices will tend to rise. In certain neighborhoods in RR and ABQ, I see this happening. And because of the continued presence of these properties, I just got certified as a Distressed Properties Specialist so I can be responsive to all my clients. Hopefully, in the next year or two that specialty certification won't be needed!
To see what is happening in any part of RR or ABQ, simply go to my website at www.judypierson.com and click on Market Snapshot for current and trended sales activity. Call me if you want more information or a consultation about buying or selling here.Give me a call at 505) 220-9193

New Jobs for Albuquerque

2011-10-17T15:15:00.000-06:00

Eclipse Aerospace says it is restarting production and will make 50 to 100 Eclipse 550s a year and sell them for $2.7 million each. The company is taking orders and expects first deliveries to occur in 2013.
The 550 is an upgrade of the Eclipse 500 featuring the same airframe and Pratt & Whitney engines but with an advanced avionics package to improve operation, comfort and performance, the company said.

Albuquerque Ranked 13 of Top Fifty US Cities!

2011-09-29T15:12:00.001-06:00

Albuquerque was listed 15th among America's 50 Best Cities according to a Businessweek story. Boston was 16 and New York was 14. We were higher than Phoenix (of course!) which ranked 49 and Denver which ranked 27. To quote the article, "With the Rio Grande running through and the Sandia Mountains to the east, New Mexico's largest city is a picturesque and sunny place to live. The schools are great, unemployment is low and there are lots of park acres per person." The ranking is based on various metrics of quality of life, such as number of restaurants, museums per capita; number of colleges, libraries and professional sports teams; the income, pverty, crime and foreclosure rates; percentage of population with higher degrees and air quality.
As a real estate agent, I get a snapshot every day of why people want to move here and why people love it here. The standard reason for loving ABQ is the weather (no we are not HOT like Phoenix) and the frienliness of people. The weather encourages lots of outdoor activities. The main reasons for moving here are for retirement or job transfer. Right now we are busy with both types of buyers. Plus a rush of buyers who are in their twenties, married or not. Wish I had been that smart in my twenties! They are getting rates in the low "4's" so that's an incredible deal.
Call me if you want more information or a consultation about buying or selling here in the top ranked City.

ABQ Home Sales Sag In July

2011-08-24T09:59:00.000-06:00

That is the headline but what’s behind the numbers? First of all, we had some terrible financial uncertainty that threw everyone off guard for a couple of weeks. That will stop things dead in their tracks. While it is true that the housing recovery in ABQ is up and down, we see a steady solid influx of new buyers and a few new sellers. Usually, sellers have already got their homes on the market to catch the summer traffic. In ABQ, new listings always slow come Fall and Winter. Sales in ABQ have been steadily rising month by month bucking the national trend until July. Compared to last year however, sales are up by 12 percent. The home prices went up but are still below last year’s level. Statistics can be viewed at www.gaar.com. Call me if you want to see what this means for you.

Home Sales Expected to Uptrend

2011-08-10T16:02:00.000-06:00

Home sales are expected to stay on an uptrend through 2012. The chief economist of the National Association of Realtors, Lawrence Yun, expects 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million. Rates are lower than low so call if you would like to buy or sell. Now is the time.

NEW FHA LOANS FOR IMPROVEMENTS

2011-06-04T13:35:00.000-06:00

Often the barrier to buying a bank owned property is the cost of repairs needed after it's yours. Now there is an FHA 203K loan program for owner occupied purchases of single family homes.that allows the buyer to finance the cost of repairs and improvements. The minimum to borrow is $5000 and the maximum is $35,000. It's not for investors to flip or for major additions or improvements. The list of items allowed, however, is extensive --- roofing, flooring, cabinets, paint, stucco, driveways, countertops, plumbing, HVAC and the list goes on. The work must be done by licensed contractors and completed within 6 months after closing. The appraisal would be one for the "as is" value and one for the "as repaired" value. This program is ideal and of course, FHA only requires 3.5% down payment. The VA doesn't have the program yet.
Are there bank owned properties available still? By all means, but they move quickly. Most buyers are reluctant now to go after short sales because they take so long and are so unpredictable. But the bank owned properties go fast. In May in ABQ, 50 new ones went on the market and 160 went under contract. The inventory is being eaten up quickly. Part of the reason is that the deals close in a month and the prices are low averaging $85 per s.f. In the northeast heights, only 4.5% of all listings are bank owned compared to 15% in the southwest part of the city.
We are set up with the few lenders in town who do these new FHA programs so call and we'll get you a good REO property and the repair loan. It's a good deal. Give me a call to check this out --- 505-220-9193

GOOD TIME TO BUY A HOUSE

2011-03-19T10:34:00.000-06:00

We’ve all experienced that “If only I would have” moment in our lives and with out a doubt we are at the threshold of another of another one of those times with respect to home ownership. We are seeing home prices at levels not seen for more than 12 years. Foreclosures are the primary driver for this phenomenon and the banks are accepting offers at $50 to $60 dollars per sq ft all over town. With out a doubt Now is the time to buy to avoid another “If only” moment. Give us a call 505-220-9193 or start your search on our website.

Garden To-Do List

2011-03-05T12:57:00.003-07:00

With the nice weather this last week, weren't you tempted to go and buy flowers to plant? After that freeze we had, we are all ready for Spring! But last night it dropped again below freezing so what can we really do to get ready for Spring? For one, we can water once a week. Next we can do a final cleanup on our garden beds and replant any volunteer seedlings that are shooting up. It's so nice to see the green shoots coming up through the winter dead plants. We can amend the soil especially with iron. Personally, I need to fillin the holes my dog dug burying bones in the winter lawn. I keep her off the lawn in the Spring & Summer. She won't be happy but Huskies dig.
Speaking of lawn, the Journal had a good article today about not powerraking to remove thatch. Instead, to aerate by making plugs and leaving them on the lawn. In Africa, we teach our villagers to do the same thing. Maintain the ground cover and make sure the soil surface is broken so that air and water and nutrients can enter. Same principles work here.
Soon we can break out the lawn chairs and barBQ!

Great Bank-Owned Properties to Buy in ABQ

2011-03-04T17:45:00.003-07:00

This just in on the real estate stats for the Greater Albuquerque Area:

Listings are down slightly to last year 3.4% but the Federal incentive pumped up those sales.Pendings are down 11.2% which makes sense given the above fact. Closed deals are up 7.3%.
The Average ABQ detached home price was $230,417 15% higher than last year which may be because most of the sales last year at this time were below $150,000 for the first time homebuyers.

But most interesting is this:
Short and Bank owned properties are 28% of total listings, 55% of pendings and 35% of Closed deals. BOTTOMLINE: Great time to get a good deal on a bank owned or short sale property. And rates are still close to 5%. We have buyers who have paid less than the appraised value so walk into the house with equity. Can't beat that!! Call me and we'll go look at some houses. 505-220-9193. On my website you can search for foreclosures. Set up a search and I'll refine it for you and find you something.

Fire Hazard Warning

2011-02-19T17:12:00.000-07:00

A friend just sent me this after having a fire in her bathroom. I will be removing all the Globe bulbs from my house. CFL bulbs are a great energy saver but make sure you buy a name brand like Sylvania , Phillips or GE and not the ones from China . An electirician told me the plug-in air fresheners are their fire hazards too. Just a word of caution.......

30 Mortgage Rates Up

2011-02-16T15:01:00.000-07:00

The average rate on 30-mortgages toped 5 % this month. Rates followed Treasury notes fueled by fear of higher inflation. Five percent is still wonderful though. It’s all relative but some of us remember 18% rates! 5% is a once in a lifetime opportunity for this buyer’s market. On a $200,000 loan compared to November’s rates is still less than $100 per month. And with enough down and a score above 650 you might get a rate of 3.5%. It’s all relative, but still great! Go on my website to Mortgage Center to get a quote.

Mortages Hit with Higher Risk Fees

2011-02-06T09:52:00.001-07:00

The mortgage giants are adding risk fees to more loans extended to people with stellar credit. To avoid a fee or to get a discount, most borrowers will need FICO scores of 740 or better and down payments of 25% or more. For example, a buyer of a $200,000 house who has a 700 FICO credit score and 20% down payment will pay $1,600 for the Fannie risk fee vs. $1,200 before. If the borrower's score is 680, the fee will be $2,800. Borrowers can pay fees upfront, or lenders will price them into interest rates. While not huge, the new fees are notable in that they're being added to more loans to borrowers with higher credit scores. The other expectation is that lenders may want 25-30% down which is going to take a lot of people out of the market.

My advice: Buy now while home prices are really low and before all these changes kick into high gear. Check out home values on my website under Market Snapshot or MLS search. Then call me.

NM Turns the Corner

2011-01-16T12:20:00.001-07:00

New Mexico’s economic growth will be “lukewarm” in 2011, unemployment will peak at 8.8 percent and normal job growth won’t return until 2014, according to the UNM Economic Research forecast. Job growth started to return by the end of 2010 and is expected to grow 1.3% through 2015. Personal income should grow 2% this year and up to 5% in 2014. Nationally, the GDP will grow 2.6% in 2011, interest rates will remain low and the housing market has probably bottomed out. Most of NM’s industries are showing improved employment, even if at a rate slower than the rate at which jobs were lost with the exception of government jobs. Robust growth in professional services, business services and moderate growth in education and healthcare is anticipated. The collapsed housing bubble is a problem because even if someone wanted to relocate for a job, they can’t easily sell their homes. The good news is that in NM only 4.6% of homeowners are underwater compared to 68% in Nevada. People have no idea what to do with their homes.

I am finding that buyers are starting to get active and feel that now is a good time to buy, which means now is a good time to list especially before more foreclosures are dumped on the market by the large banks. Give me a call at 505-220-9193 to discuss your options.

WHY BUY HOME IN 2011?

2011-01-05T17:02:00.001-07:00

Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

I am seeing more action this year so far than in the last two years. Check out my website to search for homes that might meet your needs.

Housing Recover Expected (Hoped for) in 2011

2011-01-04T09:18:00.002-07:00

Survey Reveals 58% of Americans Expect Housing Marketing to Recover After 2012by: Sharon GoWith the start of a new year, many are questioning if 2011 will be the bearer of better news when it comes to the state of our economy. Trulia, in conjunction with RealtyTrac, recently conducted a survey of American adults to see what their thoughts are regarding this situation. "Today, Trulia and RealtyTrac, the leading online marketplace for foreclosure properties, released the latest results of an ongoing survey tracking homebuyers' attitudes toward foreclosed homes. Results of the survey conducted online from November 2-4, 2010 by Harris Interactive on behalf of Trulia and RealtyTrac showed that Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to take at least another two years..."

My January is starting off really busy with Buyers and Sellers starting to get more active. This, I believe, is a good sign. Call me if you want to get ready to buy or sell...... 505-220-9193 or contact me by email at Judy@Judypierson.com.

ABQ Real Estate Prediction

2011-01-01T13:50:00.000-07:00

Well, here goes....... my personal Crystal Ball for 2011. What is the good news? Prices will continue to stabilize and inch up month by month. Mortgage rates will go up to 5% which still is terrific. All and all, it will be a good time to buy because buyers can have some confidence that if they make an investment now, the value will hold and begin to appreciate over the next five years. Already, I have more buyers who want to purchase in this first quarter than I have had in the last two years. I sense that people are more secure in thier jobs as the mass layoffs have all but disappeared, and the stock market is positive so no more losses are expected in that arena. Retail sales are up and real estate is next, I think. For sellers, the time to sell will be better in 2011. Prices won't be up from the past two years, but the slide downward in value has largely stopped. There are foreclosures that will need to be sold this year and those are tough competition, but that too shall end. The thing I see is the return to a "Fair Market" value. Not that buyers won't still come in with low offers, but they quickly up the offer when the Seller counters at a reasonable price. Homes that are selling are selling at fair prices. Homes that are in good condition and fairly priced sell within 60 days. The days of wildly inflated prices, and profits, from real estate may be over, but property once again will be a good, reliable investment for the future. I am forecasting an improved market. There it is..... my Crystal Ball. Call me if you want to discuss your particular situation. 2011 will be the year to make a move!

Biggest Mistake Home Sellers Make?

2010-12-30T14:27:00.000-07:00

What is the Biggest Mistake Made by Home Sellers in Today's Real Estate Market?As a home seller, maybe you weren't aware that's there one huge mistake you may be making. If that's the case, I want to show you how to correct that mistake and get all the money you deserve from your property!Okay, what's the biggest mistake made by sellers in the current real estate market? The answer may surprise you. By far, the biggest mistake is... Not making a counteroffer on purchase offers you deny!It's one of those things that's so simple and so obvious that we tend to overlook it. Let me explain why counteroffers are so important.When a buyer comes in with a very low price, many sellers get insulted and automatically cross that buyer off the list. This is a HUGE MISTAKE!A lot of buyers come in at a low price on the first offer just to see what will happen, and that's true even when they're prepared to pay full price. In other words, they're testing the waters and hoping to get lucky.So, instead of blowing them off, try to come to an agreement with an offer of your own that's below what you're asking but above what they offer. Your aim is to keep the lines of communication open.Here's the "nitty gritty" of any home transaction: the buyer wants to pay as little as possible while you want them to pay as much as possible. That's why they call it "negotiating."So, remember, counteroffers can be a great way to sell and buy a home.But also remember that it's important to have the right real estate agent working for you. You want an experienced pro who knows all about negotiations and counteroffers. In this situation, you definitely don't need a "rookie:" you want a true professional who's done a number of successful deals.
I love negotiating and have had special training in it so do give me a call. We just listed a house in mid-December at a fair price and within two days got two offers, one of them cash. Through negotiation of closing costs, we got our Seller $5000 more than the asking price. Negotiation is not always about the price either. Call me. I love negotiating!! 505-220-9193,

Spending Habits Change

2010-12-29T09:07:00.001-07:00

Simple Tips to Change Your Financial Behavior
By Gregory Karp

RISMEDIA, December 29, 2010—(MCT)—Americans have a renewed interest in all things frugal during this recession. They’re spending less money, using credit cards less, and the terms “frugalista” and “bargainista” have entered the daily lexicon.

Keeping up with the Joneses now means one-upping a neighbor with bargains you got at the consignment shop and bragging “my coupon is better than yours.”

But will it stick? Will our frugal ways remain after the Great Recession fades? Or will a pent-up wave of consumer spending eventually break through the restraint? More important, if we’re worried about financial backsliding when good economic times return, what can we do now to make sure we stay on track?

Recent reports suggest we have good intentions to maintain our fiscally responsible ways.

About half of Americans report they either avoid shopping altogether or shop only for those things that are absolutely needed, according to a survey sponsored by Citi. And 72% of Americans say they have cut back on everyday expenses.

“Only time will tell, but my hunch is we’re entering a new era of frugality,” said Jonathan Clements, director of financial education with Citi Personal Wealth Management. “We are 15 months into the economic recovery…and yet consumers are telling us that they are continuing to cut back on their spending.

“This recession will be like the Great Depression was to our grandparents.”

In addition, 80% of people claim to have at least a general plan for income and expenses, up from 47% in 2006, according to a survey by Synovate commissioned by personal finance author Matt Bell.

“Budgets have always been the Rodney Dangerfield of personal finance tools,” said Bell, who writes the MattAboutMoney.com blog. “But just as we’ve seen the recession bring about other changes in people’s financial behavior, such as more frugality, the lowly budget finally seems to be getting some respect.”

But Bell said he knows from working with financially distressed people that a “general” budget plan can mean simply balancing a checkbook or having a rough notion of what a consumer is spending on things. “My fear is that if and when the economy improves, those general plans will become even more general,” he said.

Since consumer debt peaked in 2008, Americans have chopped $922 million from their debt, or 7.4%, according to the Federal Reserve. Americans are reducing debt at a pace unseen in at least a decade, according to a recent Fed report, “Have Consumers Become More Frugal?” Unclear, say researchers, is whether that new frugality stems from borrowers being forced to pay down debt as credit standards tighten, or whether it’s a voluntary—and permanent—shift in behavior.

Farnoosh Torabi, author of the new book Psych Yourself Rich, said she thinks the most recent recession, though technically over, affected people more than the tech bubble of 2001 and other minor economic recessions because its effects have persisted for so long. Young people, especially, are likely to benefit.

“They got to see early on in their lives how overspending can derail you and divert you from your goals,” she said. And they saw it from a variety of directions, whether parents getting laid off or graduating school to enter a lousy job market, she said. “They had a 360-degree wake-up call about how money is the foundation of your livelihood. That’s a valuable lesson for this stage of life.”

The trick is moving from the descriptive to the prescriptive: “How do we make these frugal behaviors last?”

Change your words: Instead of viewing your newfound financial responsibility as a temporary exercise in deprivation, view it as a lifestyle and make peace with it. Author Jeff Yeager calls it slaying your Enoughasaurus, knowing when you have enough and being content with it. “I would ditch the word ‘frugal,’ ” Bell said. “It sounds like someone who obsesses over saving a nickel on every can of tuna they buy. In my workshops, I never talk about being frugal. I talk about spending smart.”

Have goals: The easiest way to say no to the tempting purchase in front of you is to have a specific reason to reject it. “You need a reason for doing whatever it takes to spend smart, a goal that motivates you,” Bell said. “Getting out of debt. Taking a great vacation. Whatever you’re trying to achieve financially.” In your head, the monologue sounds like, “I’ll pass on buying this sweater because I really want to go to the Bahamas in February.”

Track progress: “Monitor your decreasing debt or your increasing vacation fund,” Bell said. “When you see that spending smart is getting you closer to the accomplishment of your goal, that’ll motivate you to keep going.”

Make savings automatic: The easiest way to save is to do nothing. Put your savings on autopilot with automatic paycheck contributions to a retirement plan or direct debits from checking to savings. “If people are saving diligently now and want to keep it up, harness the power of inertia and make it automatic,” said Clements, a former financial columnist and author of four personal finance books.

Make a windfall rule: Most people periodically receive sudden inflows of cash, whether a tax refund, a year-end bonus, an insurance reimbursement or a gift. Make a rule that all windfalls are used for paying off high-interest debt or for savings, Clements said. That way, you improve your finances without affecting your daily lifestyle. A less-rigorous rule would be to blow 10% of the money on something fun so you don’t feel deprived.

“People have been shocked into better financial behavior,” Clements said. “The trick is to make sure they stick with it.”

My own hunch is that this money saved will go into buying homes. Call me if you are ready. 505-220-9193

New Mexico to Lead Job Growth

2010-12-21T08:21:00.001-07:00

The jobs outlook is not rosy anywhere, but Moody's is projecting New Mexico to lead the nation in job growth over the next year with 2.6% increase. Click this link to see the story and interactive map:
http://www.usatoday.com/money/economy/2009-02-06-new-jobs-growth-graphic_N.htm

Albuquerque Homes Underwater

2010-12-19T14:55:00.003-07:00

The Los Angeles Times had a big article on the dilemna of homeowners whose mortgage is greater than their current home value. Essentially they are stuck. If they continue paying the mortgage it's a waste of sorts unless they stay there long enough to see the value rise again. If they foreclose or walk away, their credit is wrecked for years. They don't qualify for Federal refinancing is they haven't lost their jobs and they can't refinance because the house won't appraise. It's a mess.

So i wondered what our situation was here in New Mexico. Turns out we have stronger equity in NM. Fewer homes are underwater here because we didn't see a big bubble and haven't depreciated very much. Whewww!! That's a relief. Granted some homeowners can't sell because the home would sell at the current market value and they wouldn't have the money for closing costs. But most will at minimum breakeven if not make a buck or two. Only 14% of our homes are near negative values. Many of those can refi or foreclose so few are in that no win bind.

I have been doing lots of short sales which is a great alternative in that the house is sold but usually the short sale is not reported to credit or tax agencies. Well, it's not a great alternative but a less onerous one. Call me if you want to discuss your situation. I'll find a way.

RATES INCHING UP - BUY NOW!

2010-12-10T11:26:00.002-07:00

This just in from the Wall Street Journal: Mortgage rates rose again last week to their highest level since July.
The 30-year fixed-rate mortgage averaged 4.66% last week, up from 4.56% two weeks ago. That’s still below the year-to-date average of 4.74%, but it’s up from a low of 4.21% in October.
Rising rates are likely to further crimp refinance activity, which was down 1% for the week and down 8% from year-earlier levels.
But rising rates could encourage some fence-sitting buyers to close deals, and home-purchase mortgage applications jumped by nearly 2% last week, sending activity to its highest level since May.
Rates are closely tied to the 10-year Treasury, which has been on the rise over the past few weeks and jumped in recent days after the tax-cut compromise struck by the White House and congressional Republicans.

Where is the Real Estate Tipping Point?

2010-11-28T13:43:00.002-07:00

I loved the book “Tipping Point” which speaks to a pivotal moment or event that will dramatically shift the course of a trend or behavior. For real estate, the tipping point was certainly the meltdown of the stock market and banking institutions resulting in loss of confidence and loss of jobs and investment nest eggs. The loss of confidence I think is still at the core of the issue. Buyers are not confident that they will continue to be employed or that their stocks or home will be good investments for the future. Of course, the fact that almost everyone had irresponsibly accumulated credit card debt is undeniable, and as those debts are reduced by paying them off or spending control, confidence in one’s own ability to manage money will return. The obvious indicators to look at to foresee a turnaround would be increased employment rates and improved home values and stock performance.
There are some other interesting trends contributing to the low volume of home sales. One is that the white-collar jobs are being reduced and these buyers were the “bread and butter” of a healthy market. Now we see first-time homebuyers, especially returning Veterans and higher end professionals but that range of $300,000 – 500,000 is like a never, never land recently.
Another factor of interest is the fact that home formation is way down. That would be people moving in together to buy a home and establish a home or family. Another indicator I follow is retail sales which was up this last week and even auto sales are up. Could a home purchase be next? I am hoping so because mortgage rates are at rock bottom so the opportunity is a once in a lifetime one.
What will be the tipping point to get people back into the housing market? I wish I could predict that and in fact what we may see is a slow turn of this Recession Ship as confidence returns to American homebuyers.

PROPERTY TAX ALERT

2010-11-20T13:36:00.001-07:00

The Bernalillo County Assessors office is about to undertake a campaign to adjust the property taxes on non-owner occupied properties. The adjustments that have already been made have been quite discomforting.

The way in which they will be determining "non-owner occupied" is by whether the property tax account does or does not claim "head of household". If the property does not claim "head of household", it will be assumed to be non-owner occupied.

A protest option will be available if a property is designated incorrectly but who wants to go through that! Be sure to call the Tax Assessor to declare head of household or call me and I can check to see if you have that designation.

Realtor Virtual Tour Blog Reference

2010-11-17T16:36:00.002-07:00

Got this email this morning referencing my real estate practice:
Hi Judy,

My blog tomorrow will be talking about agent listing systems. Since you have such as well-tuned system, I will be using that as an example. I was sure you wouldn't mind the exposure, but wanted to be sure you knew that as well. Here is the blog: http://www.realestatevideotalk.com/2010/11/17/how-well-does-your-listing-system-work-online/

Hope things are going well!
Jim Gross
Realtor Virtual Tours

THanks, Jim

HOLIDAY DECORATING TIPS

2010-11-11T12:50:00.000-07:00

Nobody wants to be the Grinch who stole Christmas but when you’re trying to sell a home, too much holiday spirit can turnoff some potential buyers. Buyers are there to look at the house and all of its wonderful features, not tippy-toe over the giant blow-up Santa impeding the front door or squint to see the roof over the nine reindeer poised upon it.

But before you stick a needle in your seller’s inflatable Santa, some real estate and staging professionals say home owners can still add a few decorations for the holidays when selling a home and don’t assume buyers won’t appreciate it too. Holiday decor can lighten moods and warm up interiors, so you don’t have to swear it off completely because you’re afraid of offending those who don’t celebrate, they say.

Betty Cunningham with Coldwell Banker Residential Brokerage in Schaumburg, Ill., says showing homes in the Midwest during the winter can be challenging enough, so to spice things up during the winter months she encourages her clients to decorate for the holidays. She’ll even provide guidance on how.

“Isn’t it nice to open the front door and see lights and the Christmas music playing with some cinnamon smells welcoming you? It just says ‘welcome, come in and stay awhile,’” Cunningham says.

6 Principles to Holiday Staging

The key to holiday decorating is to keep the decor high quality and color-coordinated, says June Lizotte with June Lizotte Real Estate in Milwaukie, Ore.

If you plan on staging a home for the holidays, here are some important things to keep in mind.

1. Don’t overdo the holiday cheer.

When Santas start to outnumber the rooms in the house, you may want to start being more selective in what you display.

“If it is ‘cute,’ it stays packed,” says Joanne O’Donnell, president and CEO of Chic Home Interiors, who offers holiday staging services. “Cute is not a universal concept and the surest way to avoid trouble is to keep it simple and elegant.”

The same staging principles apply during the holidays: Don’t overwhelm the space with clutter.

“For every holiday decor item put on display, temporarily pack something you keep out all the time. That way you can avoid over-decorating,” says staging and real estate pro Tori Lynn Wallitsch with Alliance Real Estate and Ross Designs LLC in Omaha, Neb.

Instead of a large Christmas tree dominating the living room, you might opt to have a smaller tree display on a table top -- particularly if the space is small, suggests Lizotte. Your decor doesn’t have to be super-sized or scattered everywhere: Mix in small centerpieces on dining room tables, bookcases, bathroom sinks or end tables -- simple touches such as pine cones or ornaments in a glass bowl. (See 11 Inexpensive, Simple Holiday Decor Ideas).

You also might want to have home owners rethink hanging those Christmas stockings from the fireplace too.

“Whatever the season, when you are selling a home, you want buyers to notice and appreciate the permanent features of the home and if your fireplace is almost impossible to see because your highly personalized stockings are blocking the view, then buyers will not appreciate this focal point for what it is,” Wallitsch says. Instead, ask your sellers to hang the stockings on Christmas eve and remove them Christmas day.

2. Add splashes of holiday colors.

How about some holiday red? Psychology research on color responses has shown that warm colors, such as red, can increase excitement and energy in those viewing it. Pops of seasonal colors -- such as red or green -- add festive cheer to a home too and can be as simple as just adding a red everyday throw to the sofa or adding poinsettias throughout the home.

It doesn’t have to be bold holiday statements: Add greenery to fireplace mantels or as a base for the dining room table centerpieces, O’Donnell says. Or another holiday favorite: Bows and ribbons can add splashes of color -- tie them around candles, wreaths, and basket handles throughout the house for extra pops of color. Don’t underestimate the power of neutral palettes too in your holiday decor, such as silvers and classic whites.

Try repeating colors from room to room and using similar ribbons, ornaments, patterns or decorative items that can add to the consistency of your holiday look, according to holiday decorating tips by WorldofChristmas.net.

But when bringing in holiday colors, be careful not to clash with your home’s current color scheme, O’Donnell says. For example, if turquoise is the room’s dominant color, you might want to hold off on adding bold holiday reds; try silver instead.

3. Stage for the senses.

Get buyers in the mood with some holiday music and the smell of Christmas filling the home. Christmas music -- mixed with holiday scents -- has been shown to boost people’s attitudes in retail stores and increase their likelihood of wanting to visit them, according to research conducted in 2005 by Eric R. Spangenberg, Blanca Grohmann and David E. Sprott Journal of Business Research (Vol. 58, Issue 11).

Cunningham usually gives a holiday CD to her clients to use for showings -- it features mostly instrumental and soft holiday music.

For scents, O’Donnell recommends adding a pot of mulling spices or cider. The Smell of Christmas by Aromatique (candles, potpourri or oil) is a favorite of Cunningham’s or candles that smell like pine or fresh-baked cookies can create holiday season scents too, adds Valerie Torelli with Torelli Realty in Costa Mesa, Ca.

But if you’re going to include a holiday scent just don’t forget the music. The 2005 study showed that the presence of Christmas scent (Enchanted Christmas by Greenleaf in this case) with non-christmas music lowered buyers’ perceptions of the store and its merchandise. But when the Enchanted Christmas scent filled the air with Amy Grant’s “Home for Christmas” music playing in the background, participants had a favorable response and were more eager to buy.

4. Keep the tree simple, yet elegant.

The Christmas tree will likely be your biggest decor piece so it needs to make a statement. Use a string of 100 lights for every foot of tree, suggests Cunningham. In other words, if you have a 7-foot tree, use at least 700 lights (she prefers the white twinkling ones).

Other tips:
If your tree is larger than six feet, consider removing a piece or two of furniture so the space doesn’t feel crowded, Wallitsch says.
Use ornaments all in one basic color palette with “show piece” ornaments mixed in that add extra style, O’Donnell says. As a general rule of thumb, use about 20 filler ornaments (such as one or two tone bulb ornaments) for every two feet of Christmas tree and then mix in those special “show piece” ornaments between the filler ornaments, using about 10 for every two feet of tree, according to interior design writer Coral Nafie who wrote about holiday decorating tips at About.com.
Hang ornaments on the tips of branches as well as inside the tree to add depth, and mix in various size of ornaments.
Make sure ornaments that are overly personal -- such as those marking milestones like “Our First Christmas” or “Baby’s First Christmas” -- are not in prominent locations on the tree or keep them packed up for next year, Wallitsch suggests.

5. Give a holiday impression from the curb.

You needn’t be able to view your outdoor holiday lights from space, Clark Griswold, to show your holiday spirit. Twinkling clear, white lights (preferably non-blinking) tend to be the favorite among staging and real estate professionals for classy holiday curb appeal that adds a glow to your listings at night.

“The winter months are usually less than attractive outdoors and some well-placed and tasteful holiday lights or yard ornaments can go a long way to adding a festive and welcoming touch,” Wallitsch says. “Just remember that many potential buyers may either cruise by your home for sale during the day or schedule a showing during the day when outdoor lights are more likely to be an unsightly bunch of wires (such as icicle lights) rather than a cheerful display of color or white lights. Do your best to make your home show its best during the day and night.”

Here some holiday curb appeal tips:
Add poinsettias: Plant several poinsettias in groups of three or five close together in the garden. “They really set off the first impression,” says Torelli.
Hang a wreath on the front door (and make sure it’s clean!), suggests Cunningham.
Have battery-operated candle lamps in each of the windows for extra glow and to show off all of those windows at night.
Make the deck sparkle. For example, a weather-proof, tip-proof tree with lights or a simple strings of lights along the deck’s railing can go a long way in adding charm to your showings after dark, says Judy Jensen, Edina Realty in Eagan, Minn.

Then, consider adding the holidays to your marketing: Take a photo of the home at night as it twinkles from the holiday lights and create a special holiday flyer with information about the house.

“This is a great marketing tool we often use in the months of November and December to help sell the home,” adds Torelli with Torelli Realty in Costa Mesa, Calif.

6. Remove decor after the holidays.

Jolenta Averill, broker-owner of Lake & City Homes in Madison, Wis., once showed a home in the middle of summer that still had a huge Santa Claus on its front porch and a Christmas tree lit in the living room.

But Christmas in July isn’t for everyone, so in general, wait to decorate for the holidays until after Thanksgiving and be sure your home owners remove all holiday decor promptly by New Year’s.

As Wallitsch tells her clients: “If you are feeling a little cheated this holiday season by not putting all of your beloved holiday treasures around your house, focus on the reason that you placed your home on the market and keep your eyes on that goal. Next year when you are comfortably settled into your new home, you can go all out with the holiday cheer.”

BEST TIME TO BUY A HOME

2010-11-03T07:22:00.000-06:00

Leading economist who predicted housing crash says now is time to buy
AN economist who was the only person in the property industry to label the housing market a bubble said yesterday that now is the right time for new buyers to enter the market.
Derek Brawn, whose book on the property market predicted the bursting of the bubble, said first-time buyers should buy now once they find a property at the right price.
The optimal time to buy a house was not at the bottom of the market but just before the market hit the bottom, Mr Brawn said.
A year before the bottom of the housing market is the ideal time to buy, he said.
Mr Brawn, who has launched a house price calculator at www.CompareBuy2Rent.ie, added: “House prices are only one factor that people should consider when choosing whether to buy a house now or wait for further reductions.”
The other factors include benefits of paying off the capital amount on a mortgage, plus the fact that homeowners receive tax relief on mortgage interest.
“People need to consider both these benefits and factor in further house price drops, so they can buy now — but at the right price,” the former economist with an estate agency chain said.
Mr Brawn, whose book ‘Ireland’s House Party: What the Estate Agents Don’t Want You to Know’ made him the scourge of the property industry, said renters were missing out on mortgage tax relief.
Mr Brawn gave an example of a three-bed semi for sale in Kildare for €200,000.
A couple with a €20,000 deposit who are now renting a similar property for €850 a month should buy now if they can get the price down to €183,000.
This is based on a likely further decline in house prices of 15pc over the next five years, with a rise in European interest rates, calculations on CompareBuy2Rent suggest.
- Charlie Weston Personal Finance Editor

Albuquerque Ranked in 10 Best for Weather

2010-10-03T16:50:00.001-06:00

by Peter Geiger Thursday, October 5th, 2006 From: Farmers' Almanac Blog
We all enjoy reading lists of the best and the worst of almost everything. From time to time I’m asked what are the best cities for weather and what do we consider the worst. I’ve even been asked to select a location for someone who’s trying to relocate from a part of the country they dislike.
In the 2002 Farmers’ Almanac™, we addressed this very issue. Keeping in mind that any list is highly subjective, the factors we considered included temperatures, sky conditions, precipitation, humidity and wind. Working on the assumption that heat is a good thing and rain, sleet and snow is bad, let me present our list of the 10 Best Weather Cities in the USA.
6. ALBUQUERQUE, NEW MEXICO—has an arid climate with abundant sunshine, low humidity, scant precipitation, a and wide, yet tolerable, seasonal range of temperatures.

AUGUST MONTHLY MARKET REPORT

2010-09-27T16:41:00.000-06:00

ABQ RATES HIGH FOR REAL ESTATE INVESTMENT

2010-09-20T11:39:00.000-06:00

Forbes magazine this week ranked Albuquerque among one of the Best Housing Markets for investors. The housing health of a city is affected by a lot of factors including the jobs picture and the rate of vacancies and foreclosures. But some cities where home prices have been battered look like great buys for investors, a good sign that in spite of deep declines, they might turn around dramatically.
Two years ago the idea of putting money behind real estate ventures seemed too risky for even the most reckless of capitalists. But investor skittishness about the real estate market is slipping away, and speculators are seeing value in distressed markets
Those cities, like ABQ, that didn't see the same dramatic run-ups in prices as many cities did between 2001 and 2006 were spared a corresponding bust. They are also buoyed by a mix of jobs that's weighted toward growth industries like government and education.
But investors aren't just looking at the jobs picture, and neither should families seeking promising cities in which to live. One of the characteristics of a city poised for a comeback is a population that was booming before tough economic times made relocating difficult for most American. Albuquerque, N.M. is on the list because it grew by 9% before the downturn hit. "These are markets that in the past year have had turndowns but we think they have longer-term potential," says Wizner. "Markets with longer-term prospects in general had above-average population growth between 2000 and 2005."
Although much of the housing crisis fallout has already occurred, investing in residential real estate is still dicey, and valuations are trickier than ever. Wizner says that's exactly why real estate is becoming exciting again.
"You tend to get the best bargains in the market when nobody knows where price ought to be," he says. "The question is no longer which are the risky markets. Now that that adjustment has taken place, it's what's going to happen from here on in."

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.010-06:00

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.009-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.008-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.007-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.006-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.005-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.004-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.003-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.002-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.001-06:00

RIO RANCHO SET FOR GROWTH

2010-09-11T09:55:00.000-06:00

IS REAL ESTATE STILL GOOD INVESTMENT?

2010-09-09T17:47:00.000-06:00

Over the last few months I have personally had the opportunity to ask several people (at random) about the residential real estate market. I did not mention that I was associated with the real estate industry. During our conversation, the majority had expressed a concern for future values. Most believed values would continue to drop. Combined with the media and some pessimistic people, it is our job to be the educator in our business.

Here are some facts of today’s market and these examples will apply to any value with the same percentages:

Let’s use a $200,000.00 value and to make things easier, let’s assume 100% financing. At 4.500% the P & I payment would be $1,013.37

Assume values dropped an additional 10% - NOW using a loan amount of $180,000. Assume 6.500%, the P & I payment would be $1,137.72. $124.35 higher!

Okay, for those who view as “half empty” – With a 20% drop using $160,000 assuming 6.500%, the P & I payment would be $1,011.31, only $2.06 difference!!!

History has proven that buying real estate is a good investment. Generally over time, most can depend on appreciation. The majority of business that we do generate is primarily consumers who are purchasing a home to occupy as their principal residence. The consumer’s concern should be narrowed to personal preference. As history has proven, the investment overtime shOver the last few months I have personally had the opportunity to ask several people (at random) about the residential real estate market. I did not mention that I was associated with the real estate industry. During our conversation, the majority had expressed a concern for future values. Most believed values would continue to drop. Combined with the media and some pessimistic people, it is our job to be the educator in our business.

Here are some facts of today’s market and these examples will apply to any value with the same percentages:

Let’s use a $200,000.00 value and to make things easier, let’s assume 100% financing. At 4.500% the P & I payment would be $1,013.37

Assume values dropped an additional 10% - NOW using a loan amount of $180,000. Assume 6.500%, the P & I payment would be $1,137.72. $124.35 higher!

Okay, for those who view as “half empty” – With a 20% drop using $160,000 assuming 6.500%, the P & I payment would be $1,011.31, only $2.06 difference!!!

History has proven that buying real estate is a good investment. Generally over time, most can depend on appreciation. The majority of business that we do generate is primarily consumers who are purchasing a home to occupy as their principal residence. The consumer’s concern should be narrowed to personal preference. As history has proven, the investment overtime should be sound. However, past results do not guarantee future performance.

If the consumer’s primary motive for purchasing is strictly investment, the approach is completely different. As we are all aware, timing is everything! Buying real estate does not provide a prospectus as does investing with stocks or bonds. That said, personally, I have done very well over the last twenty years by buying real estate. Today my real estate investments lie in a shallow valley, as do my other investments. I recognize that this is the time to buy. A buyer’s market combined with historic interest rates should help buyer’s fear.

If your purchaser’s are buying below $300,000, a great option is a thirty-year FHA fixed rate mortgage. FHA loans are assumable with qualifying. This will release the seller from any future liability along with creating a low interest rate for future buyers! Assuming values do decrease, the assumable mortgage will add a valuable feature for future buyers! ould be sound. However, past results do not guarantee future performance.

If the consumer’s primary motive for purchasing is strictly investment, the approach is completely different. As we are all aware, timing is everything! Buying real estate does not provide a prospectus as does investing with stocks or bonds. That said, personally, I have done very well over the last twenty years by buying real estate. Today my real estate investments lie in a shallow valley, as do my other investments. I recognize that this is the time to buy. A buyer’s market combined with historic interest rates should help buyer’s fear.

If your purchaser’s are buying below $300,000, a great option is a thirty-year FHA fixed rate mortgage. FHA loans are assumable with qualifying. This will release the seller from any future liability along with creating a low interest rate for future buyers! Assuming values do decrease, the assumable mortgage will add a valuable feature for future buyers!

WHERE HAVE ALL THE BUYERS GONE????

2010-08-24T15:03:00.000-06:00

The real estate market is dead, dead, dead. And the rates and deals are abundant. What's wrong with this picture???? Here's latest article from national association of realtors: Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment.Speaking of unemployment, awful is the only way to describe last week?s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people. The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction. But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly.

LOWEST MORTGAGE RATES IN HISTORY!

2010-08-11T14:04:00.001-06:00

This just in from our Realtors Association:
Mortgage applications to purchase homes rose 0.3 percent on an adjusted basis last week, virtually unchanged from the previous week, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, purchases decreased 0.3 percent compared with the previous week and were 34.1 percent lower than they were the same week a year ago.This trough in purchases comes despite the fact that 30-year fixed rate mortgages are at the lowest level they’ve been since the MBA began keeping track: 30-year fixed-rate mortgages decreased to 4.57 percent from 4.60 percent. 15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent. 1-year ARMs decreased to 7 percent from 7.10 percent.

IMPROVING CREDIT SCORES

2010-08-01T10:52:00.000-06:00

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score: 1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history. 2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it's a good thing if you have a good proportion of balances to total credit limits. 3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years. 4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly. 5. The types of credit you use.Generally, it's desirable to have more than one type of credit -- installment loans, credit cards, and a mortgage, for example. For more on evaluating and understanding credit scores, visit www.myfico.com.

HOME UPDATES THAT ADD VALUE

2010-07-30T16:11:00.000-06:00

Sellers are not happy campers. The market is still slow and the values have declined. Once under contract, deals fall through because of inspections or appraisals. Being one who sees the glass as half full, I thought maybe I would share some thoughts on what to do to make your home more valuable. The first thing to do is to DeClutter. We all have too much junk in our homes and buyers expect to see pristine spaces like in a model home. Rent a storage space or fill up your garage even. Recycling is IN! Next change fixtures and hardware. I need to do this as my home is 14 years old and the hardware yells Old! Old! Upgrading sinks, shower heads and faucets with water conservation models has double value. Then replace your appliances. White is out; red washer and dryers are in; brushed stainless steel is definitely popular. With energy efficient models you get a tax writeoff and add instant value. Then spiff up the landscaping. Are those landscape rocks full off debris? Are the plants woody and overgrown. Take them out! Shrink your lawn and there you have another cost savings on water. I just did mine and love it. Clean it inside and outside. Many forget to dust or touch-up the eaves, clean windows, or reseal windows for more energy efficiency. Might as well invest in adding value and saving money while you wait for this market to pick up. Call me for a free valuation. Lots of people spend too much and do the wrong things in getting a house ready. Put me to work!

JULY HOME SALES LIKELY UP

2010-07-24T07:35:00.002-06:00

While I haven't seen any statistics, it sure feels like there is alot of activity in the resale home market this month. July will be one of my biggest months for sales and for new listings. The first time homebuyers seem to have disappeared from the market and the buyers are looking in the $250,000 plus range. I even closed a million dollar listing this month albeit just below that mark after negotiations et al. Buyers are still going for the steal, but Sellers are definitely pushing back when they feel like their value is good. As prices begin to nudge up the appraisals are issues because the appraisers have to use recent comparable sales, so if those are low it is difficult to get a higher sale price. One wonders if they aren't going to keep values at the low end while they figure out how to reflect "willing buyer and willing sellers" at higher prices. No one wins when they keep prices unfairly low.

GREAT TIME TO BUY A HOME!

2010-07-17T07:35:00.001-06:00

Now is the best time to buy in the last thirty years!!! And we are seeing more buyers. For one, the interest rates are in the mid-4% which is unheard of. The jumbo loans are back and even some equity lines to avoid the need to come up with 20% down. Secondly, there are some great houses at good prices. The Sellers who still have homes on the market have to sell so as we say are "motivated" to provide Buyers with good value. Those Sellers who don't have to sell are able to negotiate. And there are still some good Short Sales and Foreclosures for the Buyer who is not in a rush since those deals may take up to six months to close.
We are seeing more Buyer activity in all price ranges. ABQ and Rio Rancho's economic situation has stabilized and has even had some new job development which is raising everyone's confidence. Personally, I think the worst is over. We have hit bottom, are showing slight increases from that 50% drop in sales last year, and may even begin to see small appreciation on some homes. Life is good.

STRATEGIC FORECLOSURES ON RISE

2010-07-06T14:25:00.002-06:00

"Strategic" mortgage defaults (people who "walk away" from a mortgage they can afford to pay) are on the rise.This week FOX News did an interview with the CEO of HomeFlux and 1-800-CashOffer on the rise of strategic defaults, and how many of the people we talk to each month are considering it as an option. Most people doing "strategic" defaults would be much better off selling their home via a short sale through an experienced real estate agent. The banks are in much better position to expedite and approve short sales now. We haven't lost one approval! They would rather take a loss on your mortgage than to incur the expense of foreclosing and then selling it again. Give me a call if you are thinking of a strategic default or short sale.

CLOSING FOR TAX CREDIT CLOSING EXTENDED

2010-06-29T17:51:00.002-06:00

WASHINGTON — Homebuyers would get an extra three months to complete their purchases and qualify for a generous tax credit under a bill overwhelmingly passed by the House on Tuesday. Under current law, homebuyers who signed purchase agreements by April 30 have until Wednesday to close on the sale to qualify for tax credits of up to $8,000. The bill would give buyers until Sept. 30 to complete their purchases. The extended deadline only applies to people who signed purchase agreements by April 30. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the Wednesday deadline.
The popular tax credit has helped to stabilize the nation's slumping housing market. More than 2.6 million taxpayers claimed the tax credit through April — claiming $18.7 billion — according to the Internal Revenue Service. The Realtors group says the tax credit has generated 1 million new home sales that wouldn't have happened otherwise.
The tax credit for first-time homebuyers was part of President Barack Obama's economic recovery package enacted last year. In November, Congress extended the credit and expanded it to longtime owners who bought new homes. First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

FORECLOSURES IN ABQ

2010-06-28T10:58:00.003-06:00

Question was asked about where we find the foreclosures. There are two answers. First, there are foreclosures all over and in all price brackets. People who have lost jobs are having great difficulty including those who have been at upper management or executive levels. We see foreclosures in High Desert and NE Heights in the upper price levels reflecting this situation. We see foreclosures by people who have been in their own businesses and with the recession their business volume has forced them to close their businesses and foreclose. The foreclosures related to the decrease in income due to the recession occur all over ABQ. These homeowners try to sell their homes but they have lost equity and cannot sell except as a short sale. With no income they cannot renegotiate with the bank and the only way they can sell as a short sale is to stop making payments. Then after they stop payments and if they can't sell, the home is foreclosed. Many times they can't sell as a short sale because the banks take months to review an offer and the Buyer gets tired of waiting. So it's not that we don't find buyers for their homes, it's that the banks make it almost impossible to complete the transaction. Do I sound bitter???

The second answer is that there are more foreclosures in areas where people bought on loans that they probably should not have gotten involved in. For example, in the SW developments and some parts of Rio Rancho and Ventana Ranch, first time homebuyers bought loans with no money down or at 103% of the value. When the value dropped 20-25% in the last two years, these people are upside down. Also, investors who bought several homes are selling or foreclosing because they can't lease the homes and realize they will never sell to make a profit so they "dump" them.

Hope that answers the question. We, by the way, have had really good success getting short sales to close and if it goes to foreclosure, we have investors who will buy redemption rights. We're trying to stay current in our skills so we can serve our clients.

FINALLY LOVE RANCH

2010-06-27T09:20:00.003-06:00

My chiropractor, a petite gentle & quiet man, treated Helen Mirren when she was here filming Love Ranch. He had articles and pictures of her all around his office and was so impressed with her a another gentle soul. Now finally the film is to be released but sadly not yet in New Mexico.

Mortgage Interest Rates at All Time Low

2010-06-26T13:47:00.000-06:00

It's time to buy a home in Albuquerque or Rio Rancho! There are plenty of good deals and the interest rates are in the mid-fours. Give me a call.

MORTGAGE RATES TO STAY LOW

2010-06-17T09:40:00.002-06:00

The volume of homes sales seems to have come to a crashing halt with the end of the Federal tax incentive, but the interest rates are the lowest in 30 years. Rates are just above 4% for most buyers. I don't get it. It's the best time ever to buy. Sellers are desparate, rates are low and there are lots of choices out there. Where are all the Buyers??????? Call me and I'll talk you into doing it NOW.

FORECLOSURES UP IN NEW MEXICO

2010-06-12T13:42:00.003-06:00

As home sales went up last month so did foreclosures. Personally, I think the banks are getting more efficient in taking action. They had so many short sales to deal with first that they staffed up for that and foreclosure action took forever. The short sales seem to be moving more quickly and perhaps those extra staff can now turn their attention to foreclosing. It will be awhile until these bank distressed properties get off the market. It's been a major factor in the depressed prices in New Mexico. A fairly priced house doesn't have a chance in some subdivisions.

GREAT TIME TO BUY!!!

2010-06-04T11:48:00.001-06:00

So whereas the announcement below may seem to be negative, for buyers it is great news. With demand low and interest years at a twenty year low, it is a terrific time to buy. As the article below indicates, homeowners who can want to just refinance but for those who need to sell, and are therefore more motivated, they are more willing to negotiate to get the deal done.

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 28, 2010. "With another week of historically low mortgage rates, the trend from the prior three weeks continued, as refinance applications increased while purchase applications dropped. Purchase applications are now almost 40 percent below their level four weeks ago, while the refinance share, at 74 percent, is at its highest level since December," said Michael Fratantoni, MBA's Vice President of Research and Economics. "In addition, the ARM share dropped last week to its lowest level since March of this year, as borrowers took the opportunity to lock in at historically low fixed mortgage rates."The Mortgage Bankers Association application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment which can increase disposable income and consumer spending (or give consumers a chance to pay down other debts like credit cards). A falling trend of purchase applications indicates a decline in home buying interest, a negative for the housing industry and the economy as a whole.

BANK OF AMERICA TO HELP BORROWERS

2010-03-26T09:29:00.002-06:00

Bank of America is going to forgive up to 30% of some customers' home loans to help troubled homeowners. it will start forgiving principal for those who owe more than 120% of their home'svalue. It is to begin in May.

So if you think you qualify, CALL ME and I will do a free market analysis.

Home Sales up in ABQ New Mexico

2010-03-21T11:06:00.002-06:00

And like most areas, the prices are still hovering in the low range. I did read that California prices are starting to come up which shows that the higher end houses are starting to sell so is pushing the average up. Here in ABQ, I personally am seeing many more buyers and have 6 closings this month including one half a million dollar home. It had been on the market for 18 months. The buyers seem to be young working couples looking forward to building a home and a family. They have good credit scores and good incomes from two salaries. I do think we have hit bottom in the housing market.

New Lead Based Paint Remodeling Rule

2010-03-16T11:37:00.000-06:00

Lead-Safe RemodelingU.S. Environmental Protection Agency rules taking effect April 22 require remodeling work on homes built before 1978 to be undertaken only by contractors certified by the agency in lead-safe practices. ( An EPA-certified contractor isn't necessary if the work doesn't disturb the paint, but that can be hard to know up front. ) The National Association of the Remodeling Industry recommends that home owners assume lead is present if their home was built before 1978 unless they've had it tested and found it lead-free. Certified remodelers are required to display their EPA - certified training certificate to home owners. For a compliance guide,search for "lead paint renovation rule" at www.realtor.org.

NM Homes Sales Buck National Trend

2010-03-06T08:52:00.002-07:00

New Mexico is bucking a national trend by posting a tremendous jump in sales of previously owned homes in January compared to a sharp dropoff across the country. The ABQ metro area's pending sales bounced up 55% in jan to 740 compared to December's 476 and jumped 30% from a year ago. New listings also shot up to 1,43 from a 12 month low returning to a norm of 1483 listings. We're Baaack! I know my sales have skyrocketed so call me if you want to buy or sell. It's a good time for both.

FHA RENOVATION FINANCING AVAILABLE

2010-02-01T15:02:00.000-07:00

Did you know that there are 80 homes in Bernalillo County that qualify for a Fannie Mae Home Path mortgages? The some properties qualify for renovation financing! Fannie Mae has sweetened the pot today by announcing that they will be contributing 3.5%. Go to http://www.homepath.com/ to search for homes that qualify. I’ve attached the 3.5% contribution press release and flyers you can pass on to your buyers.

Let me know if you have questions about this financing!

WHAT HOMEBUYERS WANT

2010-01-26T06:41:00.000-07:00

Americans want smaller houses and they are willing to strip some of yesterday’s most popular rooms—such as home theaters—from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show.
For many buyers, their next house will be smaller than their current one.Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home buyer preferences, said there are 10 “must” features in new homes:
1. Large kitchens, with an island . “If you’re going to spend design dollars, spend them where people want them—spend them in the kitchen,” McCune said. 2. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.
3. Energy-efficient appliances , high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, said Cardis. While large windows had been a major draw, energy concerns are giving customers pause on those. The use of recycled or synthetic materials is only borderline desirable.
4. Home office/study . People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the “shift from boom to correction.”
5. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.
6. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada. The idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.
7. Master suite soaker tubs . Whirlpools are still desirable for many home buyers, but they clearly went down a notch in the latest survey. Oversize showers with seating areas are also moving up in popularity.
8. Stone and brick exteriors . Stucco and vinyl don’t make the cut. Not to sure about this one...here in NM we have lots of stucco..it just seems to fit the territory! mh
9. Community landscaping , with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

HEAD OF FAMILY EXEMPTIONS

2010-01-24T11:34:00.000-07:00

In New Mexico, a homeowner can apply for the Head of Family exemption which allows a $2000 exemption from the taxable value of the residential property. This applies only if the home is the primary residence and not vacant property, now a second home nor a commercial holding. Owners of manufactured homes are eligible too. The exemption doesn’t mean that $2000 is subtracted from their property tax but that the value of the property is reduced by $2000 for taxation purposes so about $80 per year is saved. The application form is issued by the County Tax Assessor’s office or can be done by phone. The exemption is for the next taxable year, and cannot be applied retroactively.
Other exemptions are $4000 for Veterans’ when a certificate of eligibility is provided from the NM Veterans’ Service Commission. Homeowners over 65 or disabled can apply for a Value Freeze program if their modified gross household income is $32,000 or less.
Who qualifies as “Head of Family”? A married person, but only one spouse can be listed. A widow or widower. A person furnishing more than one-half the cost of support of a related person. A single person and a member of a condominium association who pays the property tax.
It is a good idea anyway to check annually on www.bernco.gov under Assessor to make sure the ownership information is accurate and to see that the exemption is noted.

NEW LISTING IN ABQ HIGH SCHOOL LOFTS

2010-01-20T11:07:00.001-07:00

Check out this new listing we just posted on a large loft in downtown Albuquerque in the old historic and green restored ABQ High School lofts. It's very high tech for the buyer looking for an urban environment.

TAX LIGHTENING HEATS UP

2010-01-20T11:00:00.002-07:00

So after two District Court judges ruled that the "tax lightening" regulation was unconstitutional, now they have apparently been intimidated by the Governor who wants a constitutional amendment proposition to make it legal. One of the judges is sending it to the Court of Appeals after saying she wouldn't to get a confirming opinion. In the meantime, I guess she is not going to rollback taxes in 2010 for those who have bought in the County of Bernalillo since 2002. And her attorney just quit in the light of 2000 plus filed appeals by these same taxpayers.

TAX LIGHTNING FIX STALLS

2010-01-12T20:06:00.001-07:00

This just in from Stephanie Dzur on the Tax Lightning issue: I don't think those voluntary rollbacks are coming.
From yesterday's journal:
"Montoya said she is just trying to fix problems in her county that judges have ruled unconstitutional. She said she has experts studying every possible effect her plan could have on taxpayers and won't be pulling the trigger on the plan until she knows what the effects will be.
"I want everyone to know what could occur," she said.

And today David Chacon (her attorney who had advised her at the time she declared she was voluntarily rolling everyone back to 2001 plus 3%) e-mailed me that he's being replaced.

Interest Rates set to Rise - Buy Now

2010-01-11T20:55:00.000-07:00

Interest rates throughout 2009 were artificially low. That's because in late 2008, the Federal Reserve put into place a program for purchasing Mortgage Backed Securities with the intention of lowering mortgage rates. They were successful with reported rates by Freddie Mac falling below 5.00% several times in 2009.
Without this program mortgage rates would have been at least 1.00% higher, and potentially even higher than that. Did you know that a change of 1% in a home loan rate impacts the amount someone can borrow by roughly 10%? For example, if rates are in the low 5.00% range today and they shoot up to the low 6.00% range, $250,000 home buyers may become $225,000 home buyers.
Look for rates to return to 2008 and previous levels as the Fed ends the program on March 31, 2010. While rates will not immediately increase to 6.00% or higher, know that without additional intervention, rising rates are inevitable. Expect that under worst case scenarios, rates could dance around the 7.00% range.

IMPROVING YOUR CREDIT SCORE

2010-01-10T11:16:00.003-07:00

Interesting article in the ABQ Journal today about the new game of managing your credit score. did you know:
- Applying for several credit cards could cut 10 points off your score?
- Not paying utility, mortgage or credit card bills on time can lower points 60-110 points?
- Mising a payment on one account slices 40-75 points?
- Having credit card balances over half of the amount avaiable cuts scores by 40-100 points?
- Short sale on your house reduces points by 45-125? I thought it would be more!!!
- A mortgage loan mortgage payment drops scores by 100-150 points?
- A foreclosed home drops 45-100 to 150 off your score?
- Bankrupcy has the biggest impact of 200-255 points?

Hope you find this interesting.

WE BEAT THE REAL ESTATE ODDS

2010-01-06T14:12:00.002-07:00

So in November, sales went down in double digit numbers in the USA but not in New Mexico. Finally, we look better than the rest of the STates. My business has been hopping with listings and sales. Keep it up, New Mexico.

SMALL REMODELS PAYOFF BIG TIME

2009-12-21T17:12:00.000-07:00

Judicious home remodeling is still worth the investment, according to Remodeling magazine's annual "Cost vs. Value Report."
By G.M. Filisko
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Uncertainty and restraint are the order of the day in this economy, and that sense of caution is reflected in home owners’ return on their investment in remodeling projects, according to REALTORS® in 80 metropolitan markets surveyed by Remodeling magazine for this year’s Cost vs. Value Report.

The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects—siding and window replacement using a variety of materials—involve home maintenance that costs less than $14,000.

Two more—adding an attic bedroom or a wood deck—reinforce the notion that boosting the amount of livable space in and around your home will attract buyers who are increasingly looking for more room for their buck. In past years, converting an attic into a bedroom was a project that landed squarely in the middle of the rankings, but this year it leapfrogged over other categories into third place. It’s an admittedly pricey project, with an average national cost of nearly $50,000, but it generates an average national return of 83.1 percent and a better-than-100 percent return on investment, according to REALTORS® in 14 of the 80 cities surveyed. Adding a wood deck is much more economical, with an average national cost of slightly more than $10,000. Its average national return is 80.6 percent, but in six cities, its return is estimated at 100 percent or greater.

The six siding and window home maintenance projects in the top 10, combined with the project with the biggest return on investment—a mid-range entry door replacement—prove something that every sales associate tells sellers throughout the country: First impressions count. A mid-range entry door replacement, a project new to the survey this year, is the only home remodeling project that REALTORS® expect to generate a full return for the money nationally. It’s the least expensive of the 33 projects included in the analysis, yet it brings a whopping average national return on investment of 128.9 percent. It generates a better-than-100 percent return in 48 of the 80 cities, according to REALTORS® surveyed, and in several cities, its return is estimated at more than double its cost.

Additional data prove the value of restraint. Upgrading kitchens and baths is still a smart bet. However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels. A mid-range kitchen remodel brings an average 72.1 percent return on investment, while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested. A mid-range bathroom project has an average 71 percent cost recovery, but the average recovery on an upscale bathroom project is nearly 10 points lower, at 61.6 percent.

The only upscale projects that cracked the top 10 were the home maintenance projects of fiber-cement siding replacement and vinyl window replacement. The average cost of fiber-cement siding is more than $13,000, but its return on investment reached 83.6 percent, placing it squarely in second place in the survey. The average cost of vinyl window replacement is nearly $14,000, and it generates an average return of 76.5 percent, or tenth place in the survey. Of the 12 upscale projects, nine landed in the bottom half.

Overall, home owners recouped an average of 63.8 percent of their investment in 33 different home improvement projects, according to REALTORS® who responded to the survey. The expected cost recoup was generally down from previous years in line with the drop in home prices nationally (see page 23). The return on home owners’ investment in remodeling projects has declined an average of 3.5 percentage points between 2008 and 2009. That’s down from the 2.7 point drop between 2007 and 2008 and much less than the 5.5 point drop between 2006 and 2007 and the 10.5 point drop from 2005 to 2006.

Zooming in from the national to the city level, Honolulu sits atop the rankings for having the most projects—18—that generate at least a full return on investment. In Honolulu, adding a wood deck, completing a minor kitchen remodel, adding fiber-cement siding, and replacing an entry door bring the highest returns, ranging from 121.1 to 195.3 percent return on investment. San Francisco is closest behind with 10 projects generating at least a full return on investment. Adding a master suite, doing a minor kitchen remodel, and replacing an entry door have the biggest returns, producing between 112.2 and 119.1 percent return on investment.

One surprise: Despite the common perception that contractors are hungry for work and therefore willing to wheel and deal, the average national cost of every project surveyed has gone up, though at a slower rate than in the previous year.

View 2009-10 Cost Vs. Value Report. Data courtesy of Remodeling Magazine

10 Big-Impact, Low-Cost Remodeling Projects

Working with sellers who have some—but not unlimited—cash for upgrades? Here are budget-minded enhancements you can suggest to make their home stand out.

1. Tidy up kitchen cabinets.
"Potential buyers do open kitchen cabinets and look inside," says Morrissey. "Home owners can add rollout organizing trays so when buyers peek in, they feel like there’s lots of room for their stuff."

2. Add or replace tile.
"By retiling very inexpensively, you make a room look way cleaner that it was," says Javier Zuluaga, owner of Home Repairs and Remodeling LLC in Tempe, Ariz. "Every city has stores that offer $1 to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a dated backsplash or add a new one. We also use inexpensive tile to upgrade bathrooms."

3. Add a breakfast bar.
When a wall separates a kitchen from a family room, suggest cutting out an opening to create a breakfast bar. "In one home, there was a cutout in the wall between the kitchen and living room," explains Matthew Quinn, a sales associate at Quinn’s Realty & Estate Services in Falls Church, Va., who handles estate and real estate sales for family members whose loved ones have passed away. "We left the structure of the cutout, added an oversized granite breakfast bar, and put chairs in front of it. That cost about $600."

4. Install granite tile instead of a slab.
"Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade," says John Wilder, a general contractor and owner of Fence and Deck Doctor in New Castle, Ind. "Instead, home owners can put in 12-inch granite tiles for about $300 in materials and get very high impact for little money."

5. Freshen up a bathroom without retiling.
"With a dated bathroom, I recommend putting in a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300," says Wilder. "And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a bathroom remodel for $1,000 to $2,000."

6. Freshen up the basement.
"If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill in cracks with hydraulic cement and then paint with waterproofing paint," recommends Wilder. "They can then add a top coat to add color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not be finished, but it’s no longer a damp dungeon."

7. Add a room.
Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. "One time, we closed off a half-wall to an office and added a door to the other side of the room, thus creating another bedroom," says Quinn. "That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price." Zuluaga has also added bedrooms inexpensively. "In a two-bedroom house, there was an archway that led to a third room that was used as a den," he explains. "It had a dry bar where there would have been a closet, so we took out the dry bar and created a closet so the owners had a third bedroom."

8. Spruce up cabinet fronts.
Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for under $1,000. "If the wood is starting to look shabby from use or contaminants in the air, we take out the nicks and scratches, recondition it with oil, and put new hardware on," explains Heidi Morrissey, vice president of marketing and sales at Kitchen Tune-Up in Aberdeen, S.D. For $1,500 to $4,000, owners can replace the cabinet doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. "With refacing, owners can change the color of the cabinets by replacing the door and having a new skin put on the boxes," says Morrissey. "If they have oak cabinets today, they can have cherry the next day."

9. Replace light fixtures.
"In a foyer and in bathrooms and kitchens," says Wilder, "replacing overhead light fixtures provides a lot of pop for a little money." If the kitchen has track lighting, Zuluaga suggests the home owner spend $450 to $600 to have an electrician replace it with recessed canned lights on a dimmer switch to add ambience. For about $700, Zuluaga also suggests installing pendant lights over a kitchen island or peninsula.

10. Tech-up the garage.
"Sometimes we replace the garage door opener with a remote touchpad entry system," says Zuluaga. "That costs about $425 and makes it look like a high-end system."

ABQ Home Sales Increase 11% in October

2009-12-16T11:41:00.001-07:00

Sales of single family detached homes in metro Albuquerque increased during October, defying the traditional seasonal slowdown. The 731 detached homes sold during October were an 11% increase over the 661 homes sold during September. October sales were up 43% from October 2008 and more than double the 324 homes sold in January, the period of slowest sales during the current cycle.
The October sales were the second highest of 2009, behind only July, and third highest since August 2007. The average detached home sold during October remained on the market for 71 days, the shortest sales period of the year.
There were 900 homes with the sale pending during October, a 56.5% increase over October 2008. This performance indicates that sales should remain strong for November, even as the seasonally cold weather slows activity from previous months.
For townhouses and condominiums, October closed sales and pending sales showed an even better year over year improvement than did the detached homes, up 46% and 78% respectively.
Sales of homes priced between $100,000 and $199,000 dominated the metro region during October. This price group accounted for 446 sales or 61% of the October total.
The average price for a detached home was $209,614 during October, essentially unchanged from September, and up 1.7% from April. Average and median prices dropped from October 2008 for detached homes, townhouses and condominiums.
During October, a total of 4,938 active listings were available around the metro Albuquerque area, down 17% from a year earlier. October was the first month since April 2007 showing active listings at fewer than 5,000. With the continued reduction in listings, metro Albuquerque is becoming less of a buyers market, especially for more affordable homes.

LIGHTS OUT FOR TAX LIGHTENING

2009-12-05T08:48:00.004-07:00

This just in: Bernalillo County Tax Assessor plans to roll back property values for homes sold since 2002 to save tax payers thousands of dollars in the future. My friend, Stephanie Dzur, got this ball rolling when she brought a lawsuit against the Assessor claiming that increasing taxes of buyers with no limits versus 3% annual increase limits on others was unconstitutional. She won and then another taxpayer won with a different judge and just as Stephanie, an attorney, is collecting hundreds of taxpayers to file another lawsuit, the Assessor acts. Apparently, she doesn't want all those lawsuits and does see that the law is unlawful so is reversing it. It remains to be seen what the State will do and my other friend, Rick Homans who heads up the State's Tax and Revenue Dept. seems to be processing all this. The implications of the loss of revenue in the county and for the State is significant so this is a real catch-22 situation. Way to go, Stephanie.

STRONGER HOUSING MARKET

2009-11-30T11:15:00.002-07:00

Several Reports Point to Stronger Housing:Existing home sales shot up 10.1% in October and reached the highest level in 2 ½ years, according to the National Association of Realtors. They also reported that the national median home price had the smallest decline in over a year.New home sales jump 6.2%, to reach their highest level in over one year. The U.S. Commerce Department reported that new home sales hit annual rate of 430K with the strongest sales coming from the South. This bodes well for home prices if inventory is being reduced and demand is increasing. I am unusually busy this time of year so things are happening. Call if you want to look or sell.

MILESTONES FOR TRUE HOUSING RECOVERY

2009-11-29T11:18:00.000-07:00

A recent article references Americans tendency to pick up and move to seek new opportunities, and characterizes the housing collapse as “the sudden imprisonment of millions in our homes.” Millions are watching for signs of recovery before making a move. What signs should one look for?
· The Price of Land – Housing construction is stuck with the collapse of land values and reluctance of banks to loan on lot purchases. Will the government need to over 3% on lot loans for first time homebuyers to get new construction going again?
· Decline in Foreclosures – The crisis started with foreclosures by those who paid overinflated prices and bailed when they couldn’t meet the ARM payment increase. Then we had people who lost their jobs foreclosing. So jobs will be the leading indicator on fewer foreclosures. Of note, in ABQ the foreclosure sales prices are only 5% below market value. Not such great deals!
· Assumed Appreciation Stymies Baby-Boomers – The only ones buying have been First Time Homeowners. Now we see those sellers buying the next price range up for growing families. However, Baby-Boomers are stuck trying to dump expensive large homes. Their focus is on not wanting to lose anticipated gains from homes they have owned for years so they price too high or are hanging tight. Instead they might be downsizing into great values and dealing with imaginary gains now gone. As the younger generation might say, “Deal with it! It is what it is.” At an anticipated appreciation starting in 2012 of 1-3% a year in ABQ, one can’t hang on a couple years and hope to get that assumed appreciation.
· Return of Second Mortgages – Blaming second mortgages may have been appropriate when they were at 125% of value, but a 5-15% second mortgage on a valid market value needs to return to get the buyers off the dime. Very few buyers have 20% cash to make the 80% equity loans banks are now requiring. We are seeing local lenders come back with the lovable 80-15-5 loans. When those become available, homes will start to sell.
· Home Improvements Return – With fear of not getting their money back, homeowners stopped putting money into their homes to make improvements that might raise the sale value. We still see that hesitation as buyers look for deals and are willing to put in sweat equity. If they can’t get a good cheap foreclosure (which they usually can’t), they will go for a good home needing updates. When buyers put value into improvements, it will indicate confidence that the market is strong again and home improvement spending and market values will tend to go up again. In the meantime, I am waiting to put in those stainless steel appliances and marble countertops.

Property Tax Lightning, Another Legal Victory!!

2009-10-14T20:00:00.000-06:00

GREAT NEWS! A second district court judge, Judge Nan Nash, just ruled that our property tax law is unconstitutional - see attached from Stephanie Dzur for details ...

Hi Mark:

I'm attaching a copy of the judicial decision in Ying Wang's case. I am really excited for Ying Wang in winning his case on appeal in District Court! He is to be congratulated in his victory considering he represented himself in his protest and on appeal. Not an easy feat for someone without a legal background.
The opinion by Judge Nan Nash follows the same reasoning as the earlier decision in my case, Dzur v. Montoya. The New Mexico Constitution requires the legislature to limit the annual increases in the valuation of residential property. The Constitution specifically allows the legislature to treat people differently in applying the limitation as long as the different treatment is based upon owner-occupancy, age or income.

In Ying's case the Court held that the New Mexico Constitution is violated by assessing a class of taxpayers differently (denying them the valuation limitation) because of when they bought their property. The Constitution requires taxpayers to be treated equally with only three permissible exceptions: owner-occupancy, age or income.

Clinton Marrs and I are representing taxpayers who have been hit by the so-called Tax Lightning statute in 2009 and earlier years. The property tax bills go out November 1st, and we have just a very short time after that to file complaints on behalf of taxpayers. I am available to answer questions! So please do not hesitate to call.

Stephanie Dzur, Attorney
3916 Juan Tabo Pl. NE, Suite 25
Albuquerque, NM 87111
505-730-5295
sdzur1@gmail.com

New Home Construction at 20 Year Low

2009-10-05T09:05:00.000-06:00

It's clear that as we enter the 4th quarter of the year, that 2009 will prove to be a dismal one in terms of the quantity of new homes built in the city of Albuquerque. To see this, look at the following U.S. Census Bureau data on single family new home permits based on a year-to-date historical basis:

(Permit numbers reflect January through August data in the year specified)

1995 = 3,221 permits
1996 = 3,268 permits
1997 = 3,232 permits
1998 = 3,438 permits
1999 = 3,594 permits
2000 = 3,281 permits
2001 = 3,964 permits
2002 = 3,918 permits
2003 = 4,549 permits
2004 = 4,892 permits
2005 = 4,706 permits
2006 = 4,088 permits
2007 = 2,933 permits
2008 = 1,596 permits
2009 = 1,061 permits

The Census data does not have year-to-date figures prior to 1995. However, the Census data does have total annual permit numbers going back to 1980. According to that data, 2009 is on par to be almost as bad as the worst year on record of 1981, when only 1,388 new home permits were issued for the city of Albuquerque that year. Of course, America was in a deep recession in 1981 too, but back then there was no such thing as an $8,000 first-time homebuyer tax credit, and 30-year mortgage interest rates were around 17%. Not only that, but the population was significantly less then, than it is today. All of this just goes to show how difficult the new home market is right now.
In the greater Albuquerque metropolitan area, we are seeing a slow decline in the average and median new home base prices due primarily to more affordable product coming onto the market. For the month of October 2009, SalesTraq of New Mexico data shows there are 82 single family new home floor plans currently available to be built locally for under $150,000. One year ago, there were only 39. We have been predicting this increasing emergence of the under $150K new home product for some time now, but only this year has it begun to really pick up. We now have 10 years of SalesTraq new home data under our belts to look at, so let’s use it to see how this has played out over the course of this decade.

ABQ HAS RECORDED HOME SALES

2009-09-12T08:10:00.000-06:00

Pending home sales have risen to their highest mark since July 2007 up 12% from July and 36% up since last August. Consumer confidence has risen and it look like pricing has hit bottom.

EVEN NEW HOME SALES UP IN ABQ

2009-09-03T09:36:00.001-06:00

This commentary by David Murphy who tracks new home sales: By now you’ve no doubt seen on the news and read reports in the media that the housing market is beginning to turn around; the last few years of decline are nearly over. (Not the first time you’ve encountered that opinion over the course of this recession either). But this time around, it seems to be for real. Pending existing home sales are up substantially, new home sales are at their highest level in a year, and mortgage interest rates remain at historic lows to attract home buyers.

Indeed, even in the local Albuquerque metropolitan housing market, positive signs are evident both in new and resale data. On the new home side, an ever-growing array of smaller more affordable floor plans, coupled with government subsidies to first time homebuyers to the tune of $8,000.00, are fueling sales - especially in the below $200,000 price range. On the resale side, the local Greater Albuquerque Association of Realtors’ statistics show increased sales month-over-month for all of 2009 so far, as well as lower inventory levels compared to last year. The positive data is there and cannot be denied.

MORTGAGE RATES AT 3 MONTH LOW

2009-08-28T12:12:00.001-06:00

Long term mortgage rates dropped again this week, ending at an average of 5.12% down from 5.29%. The new rates were the lowest in nearly three months. Great time to buy! Just call Judy.

ACT NOW TO GET $8000 TAX CREDIT

2009-08-18T14:56:00.000-06:00

Act Now To Get First Time Buyer Tax Credit
The $8,000 tax credit for first time buyers is working, drawing new people into the market and providing a big reason for growing home sales in metro Albuquerque. While the program ends November 30, as a practical matter, it ends in early September. That's because it typically takes from 45 to 60 days from signing a purchase agreement until a sale closes. You must close and fund on your new home by November 30 to quality for the tax credit.
The $8,000 tax credit is only for first-time home buyers. The law-the American Recovery and Reinvestment Act of 2009-defines "first-time home buyer" as someone who has not owned a principal residence during the three-year period before the purchase.
The tax credit is refundable. It could mean cash for you. If you pay less than $8,000 in federal income taxes, the government will write you a check for the difference.
Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000.
The tax credit especially appeals to people seeking more affordable homes. Inventories are low in this range. Homes are selling quicker and for higher prices. It's a sellers market for more affordable homes. If "more affordable" describes your home and you are considering selling, it is a good time to move up, to get that extra bedroom..
For higher priced homes, however, it's a buyers market. Inventories remain high for these homes. Plenty of choice exists and you can still get a good deal. For first time buyers, the New Mexico Mortgage Finance Authority created the Tax Credit Loan Program

TAX LIGHTNING STRUCK DOWN

2009-08-16T09:57:00.002-06:00

Hurray for my good friend, Stephanie Dzur, who took on the Tax Assessor and won!! She protested the "tax lightning" regulation as unconstitutional. The judge agreed that bumping up the property taxes on properties when a purchase occurs is not fair. For other homeowners, taxes can only go up 3% a year, but for buyers the increase is unlimited. I listed a property yesterday where the taxes were $700 when he bought the home two years ago. The increase was $2200 per year a more than threefold increase which amounted to almost $250 per month. He's selling the house and moving out of State. Shame, as we say in Africa! For more information, check out this link: http://noproposition13innm.blogspot.com/

ABQ LISTED AS TOP CITY AGAIN!

2009-08-14T16:13:00.003-06:00

Best Towns 2009America's Best Cities: Albuquerque, New MexicoNo. 6By Justin Nyberg

KEY STATS845,000: Population (metro)$182,000: Median home price B: Multisport grade 278: Average number of sunny days
A few cities in the Southwest enjoy their own versions of Albuquerque's main attractions: a surplus of sunshine, mild weather, and easy access to trails, rivers, and mountains—like the 10,678-foot granite escarpment above town. But what sets the Duke City apart these days is stability. Off the speculators' radar, Albuquerque was relatively unscathed by the circus-tent collapse of the housing market, even as its economy—bolstered by growth in the high-tech, film, and renewable-energy industries—has remained stable. The upshot? It now boasts the fifth-lowest unemployment rate among major U.S. cities. And when all those workers are ready to blow off some steam, the city welcomes them with more green space per capita than any on our list—including easy-access singletrack and the 38,000-acre wilderness just east of the city. Plus three ski areas (including the steeps of Taos), fly-fishing in the Jemez Mountains, and Class IV whitewater are all within day-trip range. Take that, Phoenix. It's also a good place to save: The low cost of living and reasonably high wages in professional fields put Albuquerque fifth on Salary.com's list of the best U.S. cities for building personal net worth—meaning you'll have all the more means to gear up for time off the clock.

So if you are tempted and want to buy a house here check out my listings at: http://judypierson.com/Albuquerque_NM_listings/index.shtml

ARE WE RECOVERED YET?

2009-07-31T09:22:00.000-06:00

Well, no, but there is definitely more activity since May in Albuquerque and the USA as a whole. As an article in the National Association of Realtors states "we have had six years of upside craziness followed by three years of downside terror. Now we're in a tug-of-war between those who think we have found a bottom and those who think prices will continue to decrease." Here in ABQ sales are picking up, but the prices do not seem to be turning around.
Whereas the long term appreciation trajectory in ABQ is traditionally between 3-5% annually, the decline has been 5-6% in the last couple of years. For those who can wait it out, it is not a problem and many have successfully petitioned to have their taxes reduced. For those who bought in the last four years and now must sell, the picture is not rosy. When you estimate the seller pays about 8% of the sale price just to close the deal, you see the problem. Either the equity is eaten up, they come up with the difference at closing or pursue a short sale. Not good alternatives.
The housing outlook by NAR is that we will see some recovery in 2010 and by 2012 we will have full recovery. We are seeing more buyers although the demand is still in homes under $250,000. I hope the President extends the Tax Credit for first time homebuyers because this program has really been working to stimulate purchases. The domino on that is that for each house sold someone "moves up" to a more expensive home so the whole market eventually will start to move.
We are beginning to see more buyers in the higher end who have finally sold their homes in other states and are moving to ABQ. I think that growth will just continue in the next two years. As a city we are attractive as a place to live or retire.
So the future is still not clear. Each situation has to be assessed individually as there are different trends in different parts of the city. I am available for a strategy session to help anyone figure out what they should be doing. I've also been helping provide comparables for those who are challenging their tax assessment. Give me a call.
Give me a call at 505) 220-9193

Great Home Loan Rates!

2009-07-15T18:00:00.003-06:00

Finally, money is available for homes over $300,000! The high end market has been stalled out as secondary lender market did not want to buy the "jumbo" loans. But now, some local lenders have more than twenty options the rates are around 5.4%. Ready to buy a beautiful high end home? Call me 220-9193. Just listig a million dollar one in High Desert in NE Albuquerque.

Sustainable TV series in NM

2009-06-30T15:44:00.002-06:00

So with "crash" filming finished, it looks like season two is on its way. And with "In Plain Sight" and that bad boy "Breaking Bad", NM is on a roll. About time we see some home buying here!! What more can I say?? Look at "Crash" and know that this is a much better place to live! I will never go back to LA! Give me a call and we'll go look at houses. Great time to buy.

LET'S TALK FORECLOSURES

2009-06-30T15:43:00.000-06:00

So I have had a couple of friends who have quietly admitted that the bank may foreclose on their homes. Now, this is happening in low priced homes all the way up to those over a million. Financial troubles these days are blind to socio-economic status or original home value. Not being able to make house payments or going bankrupt can happen to anyone. So let's talk about what you can do with your home. Unfortunately, I have gained some expertise and success in implementing options to losing your home.
Why not let your home go? Big one, other than the emotional toll, is that your credit will not recover for quite a while unless it can be documented that it was a hardship event like an illness or death.
So what else can you do? There are two good alternatives. The first is to TELL, don't ask, the lender that you want to re-negotiate your loan to a lower payment. They have to consider it and the process will take 3-6 months so in the meantime you can try to sell it unless they come up with a new rate that you can afford even if it is just for a year or two until you get back on your feet. If you have already missed payments, make this call!
If you have missed up to three payments, call and tell them you want to sell your home as a short sale and to send you the package. A short sale is where the current value plus seller closing costs is greater than the mortgage. In a short sale, you are asking the lender to swallow the difference, not you. So if it will cost $120,000 to sell your home and you owe $100,000, then they agree to absorb the difference. There is no real negative to you although they can file with the IRS so that you might have to pay taxes on the $20,000, but they are so busy that they rarely do that. This option will not negatively affect your credit especially if you get the bank not to report the late payments or short sale. It's worth a try.
When the bank sends you a foreclosure notice, you will have 3-4 months before they get proactive. It is important for you to get the home on the market ASAP at a price that will sell, and to call and ask for the loan re-negotiation so their clock stops ticking. That will give you time to sell for sure.
So what is the first step? Call me. I will have you get information from the lender or lenders and then we will do a realistic market analysis on your home. Then we can make a plan. Don't be embarrassed. It can happen to anyone. I can help and will support you every step of the way.

ASTONISHING REAL ESTATE VALUES

2009-06-14T10:34:00.002-06:00

Lest anyone think that ABQ has had the same issues as California and other real estate distressed states, our appreciation before the declines was 12% compared to an average of 6% a years. So here's what happened in Calif:

"- After spending most of the 1990s in the $250,000 range, the median-priced home that was sold in the seven-county San Francisco area rose to a staggering $850,000 by its May 2007 peak. It since fell to a low of $399,000 in February - a 53% drop in just 21 months - before posting its first monthly gain in March, albeit a 1% uptick. The median is expected to continue rising at a healthy clip in months ahead since it’s now at the level of nine years ago, before the bubble began inflating.
- California’s statewide inventory of unsold homes - based on the number on the market divided by the present monthly sales rate - stood at a 15.2 months supply in February, 2008. That figure was down to 5.8 months in March, near the historic average."

ABQ Ranks High as Place to Live

2009-06-11T12:37:00.000-06:00

US News and World Report has ranked ABQ in its top ten most liveable cities with Kiplinger's Personal Finance magazine ranking it as the second best city. Both of these considered the economy, weather, natural beauty and recreational and work opportunities. ABQ is HOT!

JOB PICTURE IMPROVES

2009-06-08T11:06:00.002-06:00

Friday's Jobs Report showed that 345,000 jobs were lost in May, far better than expectations for 520,000 jobs lost. And adding to the positive tone were revisions to the two prior months, showing 82,000 fewer jobs lost than previously reported. So all in all, about 260,000 fewer jobs lost than had been forecast.

New Mexico's real gross domestic product rose 2% in 2008, making the state the ninth highest for inflation adjusted economic growth in the country. We are beginning to see more real estate activity as confidence is gained. The big barrier is the tight control lenders have on credit. It certainly doesn't seem like anyone wants to lend money and the appraisers are coming in with ridiculously low values. Realtors are earning their keep trying to find willing lenders and fighting unwilling appraisers, that's for sure!!!

Housing Sales up for 3 Months

2009-06-03T09:03:00.000-06:00

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”Read more: "Pending Home Sales Up for Three Months in a Row RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HNbSYHWN&A

Cool Video on ABQ

2009-06-01T18:10:00.000-06:00

What Albuquerque wants, Albuquerque gets -- and the city and state crave high-tech jobs, especially in the renewable-energy industry.http://link.brightcove.com/services/player/bcpid271539280?bctid=23941075001

Albuquerque #2 Of Nation’s Best Cities

2009-06-01T10:07:00.000-06:00

Kiplinger’s Personal Finance analyzed 258 metropolitan areas, including visits to the top ten finalists, before ranking Albuquerque as the nation’s second best city for living and work. Huntsville, Alabama, with a large aerospace and missile-defense industry, ranked first. In researching Kiplinger’s Best Cities this year, the authors kept the focus on best places to live. But they wanted to emphasize the best cities for work, too. So they selected those that have stable employment rates in key job areas as well as provide new career opportunities. A premium was put on places that will lead the country in employment growth when the recovery takes off.” Albuquerque is “a beautiful, wonderful place.”
In a Time magazine article in May in an article on where jobs are going and how they are changing, New Mexico was ranked #2 for job growth at a rate of increase of 2% new jobs a year. For both surveys, the rating was influenced by the growth in the movie industry jobs as well as continued technology growth, especially in the solar energy sector. CNN last week in their “Bottom Line” show, reinforced this observations saying we are attracting creative class type jobs --- movie related, engineering, design, etc. So much for being known as a call center mecca. ABQ has evolved to a whole new level of trained professionals.
All of this bodes well for our real estate. With continued high employment, low foreclosures and steady job growth, ABQ is a good place to invest in housing. Our decline in home values seems to have leveled off as sales pick up.