Kendra Ruminer's Two Cents of Real Estate

Take A Peek At Los Alamos, New Mexico

Tag: Kendra Ruminer ReMax (Page 16 of 16)

Proving You REALLY Want It

December 2, 2020 /

We talk about the “seller’s market” going on right now in Los Alamos County. But what does that actually mean if you’re trying to purchase a home in a seller’s market?

There’s the obvious of course. When you’re one of several buyers interested in purchasing a home, that seller isn’t going to be likely to offer much in the way of bonuses like repairs or discounts for outdated fixtures, paint, or carpet. But there are several situations you might not anticipate.

Are you ready to really prove that you want that house? One method that might be suggested by your broker is to waive the appraisal.

I know. The concept sounds a little off. After all, the appraisal establishes the value of a home so that the mortgage company – the lender – can lend an appropriate amount of money. The appraisal often affects the amount of a down payment required to purchase the house. If a house does not appraise for the entire listed price, it can be a bargaining tool to lower that asking price.

But when there happens to be a line of buyers waiting to purchase that property, things change. Offers become creative. Think of it as doing your level best as a potential buyer to make YOUR offer stand out from the other ten sitting on the table. How do you do that?

We often hear about “bidding wars”. It might make you shake your head because how on earth do you have a bidding war when at the end of the day, you can only pay as much for a house as the bank says its worth.

Actually, you CAN. Here’s how:

You can agree to waive the appraisal. The appraisal still takes place. After all, the lender needs to know what the value of that house is. But you, as the purchaser, are essentially agreeing to pay enough money up front to bridge the gap between the asking price and the appraisal value.

How does that work?

Let’s say a house is listed for $350,000. You offer $400,000 and you waive the appraisal, because there are a LOT of offers and you REALLY want this house. Your dream home then appraises for $375,000. So as the buyer, you would then have to chip in your down payment plus $25K. 

Regardless of the amount that the purchaser offers, the key is that it no longer matters what the house appraises for. The purchaser is agreeing to make up the difference between what the bank will lend based upon the appraisal value, and the sale price.

This isn’t necessarily as terrifying as it might first seem. If you’ve purchased a house here in Los Alamos recently, you might have noticed that the median home price has been steadily increasing. This means that appraisal values have also been increasing. If you’re looking at purchasing a home that had a reasonable asking price to begin with, then even if you offer more than the asking price, the appraisal might come in higher than originally anticipated anyway.

It is also possible to waive only a portion of the appraisal. The buyer can choose to specify that they would pay $X above appraisal. That way you know that you may or may not have to come up with additional capital up to a certain point. These amounts vary, but can be adjusted based on the financial capabilities and the comfort zone of the individual buyer. There are also ways to anticipate what the appraisal will be. Your broker can assist you in estimating the additional cash you might have to add to your down payment to cover your offer on the home of your dreams.

Of course, once your offer has been accepted, the waiting game begins. Then you’re likely to experience more than a little uncomfortable anticipation as you wait for the appraisal to come in. See, you are now legally obligated to come up with that cash. You made an offer. You have a contract.

The wonderful news is that you’re going to buy the house of your dreams! Your offer was chosen. You managed to get in there and get the house in spite of the other ten or fifteen offers that might have been on that table. Congratulations!

So when you’re trying to find a way to make sure your offer floats to the top of the pile and looks the most attractive, this might help you succeed. But, as I always tell my clients. Be absolutely sure. Be certain you can financially fulfill this obligation. And be sure that this is the right decision for you and your family.

When you’re ready to prove that you REALLY want that house, give me a call! I’d love to chat with you. We’re still buying and selling real estate through these pandemic times. Drop me an email today to see how we can make the process easy for you with virtual tours, online sales, and no contact showings!

Top 5 Meal Options for a Very Covid Holiday!

November 24, 2020 /

It’s very likely that most of us just aren’t feeling the Holiday Spirit this year. Even if you’re excited that the holidays are coming, it’s hard to know what to think when we’re prevented by pandemic restrictions from observing so many of the traditions that tend to define our holidays. Gatherings. Huge meals. Parties… You get what I mean.

So, here’s what I suggest. Embrace the different. I’m not suggesting you don’t make Grandma Sadie’s Famous Sweet Potato Pie if you’re dying to eat it. What I am suggesting is taking the opportunity to release yourself and your family from the pressure we often feel to try and pretend that everything is normal. Things are NOT normal. You can’t even plan on grabbing a holiday meal inside a nice restaurant this year.

With that in mind, here are my Top 5 Alternative Holiday Meals. Prepare to have your mind blown…

Number Five

With snow in the Los Alamos County forecast for the Friday after Thanksgiving, a savory soup always sounds like a winner. Have a family vote and decide what kind of soup you’re going to make (or heat up). Offer several options and grab a good selection of cold cuts and cheeses from the deli. Invent a new kind of grilled cheese with crispy edges and fancy bread. The possibilities are endless and the prep work can even be a family affair.

Number Four

The Taco/Nacho Bar can be a fantastic way to offer multiple healthy options and integrate some greens into your meal. Or you could get yourself some mega unhealthy liquid cheese product and immerse yourself in gooey nacho cheese goodness. Try simmering some chicken breasts in the crockpot with a good dose of green chili and then shredding with a fork. Or, you could simmer that chicken with barbeque sauce and have yourself a nice Southern Taco & Nacho Feast!

Number Three

Okay. I admit it. This one could be a meal, or you could have this available AFTER the meal. We’re already standing on the edge of a completely non traditional holiday. Why not let the kids eat junk food and then tell them to run around the block four times before declaring a Happy Covid Thanksgiving Marathon winner? Pile on the toppings, mix up the ice cream choices, and revel in that warm hot fudge as you listen to Christmas Carols and snuggle into your favorite pair of flannel pajama pants.

Number Two

I don’t know about you, but my kids happen to think breakfast for dinner is the greatest idea ever. Make it elaborate and offer both pancakes and french toast at the same time. Do sausage links, sausage patties, and bacon and add some tortillas and cheese for the best burritos possible. Mix up your family’s favorite breakfast choices and then enjoy a nice leisurely Thanksgiving or Christmas Brunch that will remind you that life is good!

Number One

Nothing says unorthodox holiday food like Pizza. This is the number one choice for a simple, scrumptious, and fun holiday meal. Stop by Papa Murphy’s and grab some take n bake pizza. Hit the frozen food aisle and grab every one of those options you’ve always wanted to try and haven’t. Make your own pizza and let the kids pick and add their favorite toppings. There are so many ways to make pizza into a fabulous holiday meal that screams family fun! And don’t forget the cheesy bread for a carb loaded appetizer and the cinnamon rolls for dessert!

And when you’re done with your holiday feast, don’t be afraid to give me a call or drop me an email with all of your local real estate questions. Because yes. We are STILL doing business!

Got A Listing In My Pocket…

November 19, 2020 /

Pocket Listing. The name sounds almost cute. The idea is anything but.

The idea of the pocket listing or “off market listing” is actually rather simple. There is a house for sale. Something about that house, either involving it’s readiness for viewing, the identity of the seller, or perhaps the price range of the property, suggests the house might be better off being sold as an “off market listing”. It might even be that the seller has a buyer in mind. A friend or family member.

Off market listing means not listed in the MLS. The MLS is the multiple listing system. The enormous database that brokers or agents can go to in order to search for homes that are currently listed for sale. It is literally the reason that most sellers want their home listed with a broker. They WANT it out there for people to see. The more potential buyers with an opportunity to see your home, the more opportunity the seller has to sell that home.

Right?

So, why would anyone want their home kept off that MLS?

Let’s say you’re a celebrity and you’ve got a house you want to sell, but you don’t particularly want every Tom, Dick, and Harry tromping through your house taking selfies with your bathroom sink. You can keep that listing in some broker’s pocket and make sure that they only let certain, pre-approved people with an actual interest in purchasing your home through the front door. And let’s face it. Most of the time when we’re talking celebrity homes, we’re probably talking about homes in the more than one million dollar price range. There are significantly fewer buyers in that price range. So it’s not hard for a broker to screen buyers or tap into their network to find the percentage of lookers who actually want to spend that kind of dough on a house.

Here’s the other thing you need to realize about the Pocket Listing. Whatever Realtor has that listing in his pocket is representing both the buyer and the seller. They are working to earn the entire commission. And that puts them in a very tricky situation when it comes to ethics.

Normally, when I work with a buyer or a seller, I’m happy to help them “speculate” (for lack of a better word) about what the other party in the sale might be thinking or planning, or how they might react to a certain offer or request. We spend time talking about the way things “usually” happen or situations I might have seen or experienced in the past. I’m happy to get them as much information as I can because I am working only for them.

Now. When I’m working for both buyer and seller because it is my listing? That all changes. I try to stay out of any speculation. It wouldn’t be speculation. It would be revealing important information about one side or the other and I have to remain neutral. I have to say “these are the facts, please follow your own instincts and do what’s best for you and your family”. It’s honestly a very uncomfortable place to be. I take the ethics of my profession seriously. I want to help my customers and that means not playing favorites.

Apply what I’ve just said to the concept of the Pocket Listing. Not only is the broker involved working for both buyer and seller, but the house is not listed in a way that could make that sale happen in any other fashion. If that seems a bit murky, you’re not wrong.

How This Applies to Our Local Market

Here in Los Alamos we are experiencing a fast moving seller’s market. Houses sell faster than they can be found. They spend very little time in the MLS and often involve multiple offers and bidding situations. This means homes can sell for a LOT more than the seller expected. While this can be painful for the buyer, it can also be a really good thing for someone who once thought they were upside down on their mortgage and would never be able to sell and leave the area.

I’ve seen several recent situations regarding Pocket Listings that have really given me cause for concern. Usually these situations are created by someone trying to do something nice. Something like this:

Example- Seller has a home and they have a decent amount of equity. They also have a friend who is looking for a home and really having trouble finding one in this tough market. Seller agrees to a Pocket Listing so that they can just have the broker do the paperwork to allow their friend to purchase the house. House sells for price X. Two weeks later a very similar house on the same street, with slightly less in amenities, and with a regular MLS listing and multiple bidders goes for $40K MORE than our Good Samaritan Seller got for their home.

I don’t know about any of you. I love my friends. I love my family. But not enough to throw away $40K.

I know. It sounds almost mercenary. But friendship goes both ways. There is a lot of wiggle room inside a $40K price difference. Why not list the house the traditional way and have your friend submit an offer just like everyone else. Perhaps you take their offer at a price that is fair to you both or help them out by paying their closing costs or something else to that effect. It’s much better to be fair than to take the chance of feeling bitter about it later.

Regardless of how you want to buy or sell your home or who you think deserves the chance to buy it. Keep a few things in mind when it comes to off market listings in our little close knit community. Pocket Listings are more common in sluggish markets, in markets that have huge numbers of investment properties, or markets that involve multimillion dollar homes and celebrity buyers. They are less of a benefit to sellers when homes are selling like the hottest new Christmas toy and spend very few days on market.

Stay safe and enjoy the holidays in this strange 2020 Holiday Season! And don’t forget, when you’re ready to make a change, even now when everything seems to change every second, call Kendra!

Kitchens Matter

November 11, 2020 /

The kitchen is the heart of the home. Right? So many things happen in a kitchen. Food prep is only the tip of the iceberg. All of those pleasant (or not) family conversations. Homework. Work-work. Phone calls. Coffee with friends (back when we could).

Given that, it’s easy to understand why the all important kitchen reno is a hotly debated topic that can inspire excitement in some and dread in others. As our culture evolves into something that none of us were expecting, I think it’s only fair to talk a little bit about kitchen trends. And yes. You can Google kitchen trends and come up with a million ideas. But let me try to make this applicable to Los Alamos. Because let’s face it. In a good number of homes here in our community, the average HGTV kitchen renovation just isn’t going to work. So let’s look at kitchen trends from three angles that really matter here in Los Alamos. Space. Storage. Resale.

Space

Let’s face it. Even in some of the larger homes in our county, the original home design from the seventies and eighties didn’t necessarily come complete with a big eat-in country kitchen. But at the end of the day, space is really about perception and not square footage. Here are some things to keep in mind when it comes to creating the illusion of space.

Cabinets & Counters

Have a tiny kitchen space to work with? Then modern, clean, bright, white is your friend. Sure. It might seem obvious. But even if your kitchen has cabinets that have been painted white, you’d be surprised how much brighter and bigger a kitchen will look if you get rid of those squeaky, creaky outdated painted cabinets and go with a more modern version.

Afraid of being too white? One rising kitchen trend is to add a dark countertop to offset the white floors, ceiling, and cabinets. Butcher block is becoming really popular and while it takes a little maintenance and sealing to keep it sanitary, the warmth of wood against white cabinets is striking. Or, you could try a dark quartz or stainless steel countertop with a nice shine to add depth.

Another way to add contrast and gain the illusion of space is to add a backsplash made of material with a reflective quality. It doesn’t have to be a mirror. There are plenty of prefab options available at DIY stores like Lowe’s or Home Depot. Some folks are adding a high gloss ceramic tile to really give their kitchen some character.

Windows

If you’re ready to dig into a bigger renovation project, you might consider adding windows or expanding what you have. Is there a breakfast nook in a dark corner? Consult a contractor about adding windows. It might be a way to expand your kitchen without losing other interior space and add some energy saving bonus points to your kitchen design. You could even modernize what windows you have to maximize light. If you have privacy concerns and neighbors close by, consider adding an aftermarket DIY film to your windows instead of curtains. Curtains not only take up space, but they can eliminate light.

Storage

If there’s one thing that tops the list on almost anyone’s home-must-have list it has to be storage space. Maximize your kitchen space by considering floor to ceiling cabinets. Yes. That’s right. A full wall of kitchen cabinets, probably in white, and almost definitely enclosed to provide you a place to pack as much of your kitchen gadgets and cooking utensils away from view.

When you’re planning your wall to wall cabinet system, think of it a little bit like a closet organizer. How can you integrate your appliances? What maximizes your countertop space and gives you plenty of space to prepare and cook meals for your family while still making your kitchen comfortable and uncluttered? While the latest trends in kitchen style don’t suggest knobs or any cabinet hardware, don’t be afraid to add a bit of color or character by finding some vintage or handmade knobs or drawer pulls to your cabinet project.

The Island

Ahh yes. The kitchen island. This vital piece of kitchen space doesn’t have to be huge in order to be functional. These days, the multi tiered islands are in. That can mean adding a bar height section and a waist high section. Or perhaps even adding a narrow bar in an awkward space to give the kids somewhere to sit and color. And if your kitchen doesn’t come with an island, don’t worry. There is plenty of variety when it comes to what kind of kitchen island you can add to your space. And don’t forget drawers or shelves to add even more storage.

Resale Value

I don’t think we ever do a renovation project on our homes without at least thinking about resale value. It might only be a passing thought, but it’s still present. When it comes to kitchens, upgraded and updated appliances are going to get you a great return on investment. And it might surprise you, but matte black and icy white were the “hot new colors” of 2020. And if you’re really looking to add to the functionality and wow factor in your kitchen don’t forget the Bluetooth and Wi-fi. Want to see some really interesting appliance trends from 2020? This list will get you thinking modern kitchen in a whole new way.

When it comes to resale, here are a few other things to consider.

Granite or marble countertops always add value to a home. From a return on investment perspective, if you have a very small amount of counter space in your kitchen, adding granite or marble will add class and value. Other styles that can increase appeal to potential buyers are stainless steel and concrete. It might not be what you’d expect to find in an average kitchen, but new trends suggest these two styles are both functional and attractive.

Back to those cabinets. Those outdated wood cabinets might have been total trendsetters in the eighties. They might have even been expensive. You could paint them or update the hardware. But you’ll get more resale value out of the clean lines and modern look of inexpensive cabinetry. It doesn’t even matter if they’re DIY specials you found on Overstock.com. As long as they are installed correctly and in a way to maximize storage and functionality, you’re going to add good value to your home.

As always, I hope that when you come up with an improvement project for the place you call home, you do it for yourself! Don’t forget that your house is first and foremost your house! Love your space. And when you’re ready to find a new one, email or give me a call!

Candy! Candy! Candy!

November 4, 2020 /

I don’t know about you, but even in this strange Covid-19 post Halloween world, I find myself drowning in candy. If you’re like most people, your kids either managed to collect candy from multiple sources, or you bought it in the store yourself. Either way, if you have too much to even consider eating it all, you might try one of these ideas. Be as creative as you want and use as much candy as you can spare!

Turning candy into candy packed cake is always a fun activity. This is also a great way to turn an excess of flavored hard candies or Smarties into a crunchy, gooey, yummy after dinner treat!

Ingredients:

1-2 Boxes of your favorite cake mix.

Plenty of your favorite flavor of icing.

2-4 cups of crushed hard candies. (Smartie sized)

1/2 cup candy bits for icing.

Directions:

Preheat the oven to the temperature recommended on the cake box and prepare cake batter according to directions. Don’t forget to add the extras for high altitude! We don’t want flattened candy cake. (although it’s still tasty)

Use a food processor to crush the candy. If you don’t have a food processor, you might enjoy using a rubber mallet and some wax paper. A rolling pin works well for this too. Just put the candy into a packet made with the wax paper and smack it around until you have bits and dust. A perfect way to get some of that quarantine aggression out in a constructive way!

Choose your pan and prepare it according to the box directions. Put half the cake batter into the pan. Sprinkle the candy bits onto the batter. Use a butter knife to swirl the candy into fun patterns. Then add the rest of the batter to the pan.

Bake the cake as directed on the box. While the cake is baking, mix a quarter cup of candy bits into the icing. When the cake comes out of the oven, make sure you let it cool, but not all the way. Ice the cake and let the icing melt just enough to make it squishy. Sprinkle the rest of the candy on top. You can eat it while it is still warm or wait until later. Either way, it’s going to be a hit!

Layer desserts are a great way to get rid of extra everything. Pudding. Whipping cream. Chocolate sauce. Cake. You name it and you can pile it into the bowl, glass, or hurricane and make it look scrumptiously edible.

For this, I suggest seeing what you have leftover in the pantry after the long lockdown food hoard. Extra pudding mix? Whip it up and get it ready! That box of cake mix or muffin mix that got lost? Whip it up and get it ready! The following items work well for layers. You can make them or arrange them however you like.

Layers:

Pudding – Any flavor, any variety, as much as you want to make.

Cake – Yellow cake makes a surprisingly good contrast to all of the chocolate puddings, candies, and the whipped cream. But you can use any variety you’d like. It’s surprising how good a nice spice cake can be in a layer dessert, or strawberry, or even chocolate muffins! This can be a fantastic way to get rid of leftover cookies, cupcakes from the store, or other forgotten treats too. Just peel the paper off and stuff them in.

Whipped cream – Cool Whip or a spray can or even whipped heavy cream works well. Make sure you save a bit for the top.

Candy – This is where the chocolate and caramel snack bars or minis really shine. Either cut them, put them through the food processor, or (in the case of Butterfingers) whack them with a mallet or a book or something to get smaller pieces. You can even put a bag or two of M&M type candies into this. Gummies are fine. Even Sour Patch Kids.

The Bowl:

I prefer to use a glass hurricane bowl for this dessert, but you can use whatever you have on hand. A big mixing bowl or even a deep baking dish if you only want two or three layers. You can make this as elaborate and huge as you’d like or you can keep it smaller for a quick treat in individual mugs.

The Process:

The trick here is not to get too hung up on neatness. Cake makes a good bottom layer. And the cake doesn’t have to be intact either. Just place each layer using either your clean hands, a spatula, or a spoon. Layers should be no more than an inch or two thick for large serving bowls and maybe only a smear in a small glass or baking pan. You want just enough to make it visible from the outside if you have a see through bowl, but not too much that you can’t get lots of layers in before you run out of room. And don’t forget to put a layer of pudding or whipping cream between the cake and candy for maximum gooey goodness!

Bon Appetit!

Enjoy your recycled candy treats! And if you think about it, snap a quick pic with your phone and post it in the comments of my post on Facebook! I’d love to see just how creative you can get with leftover candy, cake, and some creamy pudding!

Agent, Broker, or Realtor, Oh My!

October 28, 2020 /

It isn’t as if real estate is the only profession that enjoys a good dose of its own dedicated lingo. I think you find that in every industry, sport, or hobby. My daughter recently picked up horseback riding and I’m pretty sure she’s speaking a foreign language when she tries to discuss riding technique with me. But, I thought it might be helpful (or at least of passing interest) to talk about a couple of terms that are fairly basic to real estate in the State of New Mexico.

Yep. Realtor. Lots of people know this one. But, did you know that the word “Realtor” is a trademarked label belonging to anyone who is an active member of the National Association of Realtors (NAR)? While it would be unusual to hear a home inspector or a mortgage broker or an appraiser call themselves a Realtor, they actually could, as long as they’re an active member of NAR. So, while real estate brokers (or agents, we’ll get to that in a minute) can be Realtors, not all Realtors are real estate brokers. If you want to learn a little more about Realtors, you can find some bits and pieces here. Or, you can go to the NAR website here if you’d like to look up a list of Realtors in your area.

Here’s the thing. In New Mexico, we don’t call ourselves agents. If you think that’s a bit odd, don’t worry. You’re not alone. Here in Los Alamos we get a lot of folks moving here from other parts of the country. They’re used to working with real estate agents. And that’s what they’re looking for when they call. Now, if you want to get super technical, there are ways to create agency here in New Mexico. But if you go to the NM Real Estate Commission’s website, they aren’t going to talk to you about agents. They’re going to talk to you about brokers.

And THAT is where people from outside the area scratch their heads. In other states, a real estate broker is a step up from an agent. The broker’s license requires more education, a few more tests, and a lot more responsibility. Never fear. The NM State Board has come up with a way to differentiate between what other states might call an agent and a broker.

Here in New Mexico we are called Associate Brokers (or just brokers) and Qualifying Brokers. The simple explanation is that an Associate Broker is licensed to do just about everything you need to buy or sell property here in New Mexico. I’m an Associate Broker. We go through 90 hours of pre-licensure education that includes not only real estate basics, but also an ethics course. We need 36 hours of continuing education every year to keep our license current. And we have to know a heck of a lot about the local, state, and even national laws that apply to our job.

Now. The Qualifying Broker has that same background, but they also have an administrative section to their educational requirements. From a reciprocity standpoint, the Qualifying Broker is equal to a Real Estate Broker in most other states. But to be honest, New Mexico is pretty strict about their real estate licensure laws. Our state only recognizes official reciprocity with Massachusetts, Louisiana, and Georgia. That means if an “agent” from another state wants to move to NM or just to add a NM State Real Estate License to their resume so they can do business here, they have to go through a minimum of 30 hours of education before they take the test to get their license. And the board doesn’t care how long you’ve been handling real estate transactions wherever you come from either. You’ve got to provide them with your educational background and your license history to apply for your NM State License.

What does all of THAT mean?

Well, it means that we real estate brokers take our job pretty seriously. It means we’re more than capable of handling all of the intricacies of buying or selling property in the Land of Enchantment. Not that any one part of our state is the same as another. Which is why I’m so focused on Los Alamos. This county is unique. Our market isn’t like anywhere else. And that means I’m your Local Real Estate Expert. Give me a call today!

Full Disclosure-A Real Estate Story

October 21, 2020 /

John and Jane Doe were such a nice couple. They’d lived in Los Alamos for decades. Recently John had retired from LANL and with the kids and grandkids living in Florida, it seemed the perfect time to retire to a much smaller home in a warmer climate.

John and Jane listed their house for sale and were eager to see what sort of nice, young family might move into the place and fill it with laughter and children. They’d kept up with the maintenance on their Barranca Mesa home, making repairs when necessary and updating here and there. John was a pretty handy guy and enjoyed home improvement projects.

Enter Mark and Mary Smith. A young family new to the area, Mark had just been employed by LANL and the couple was looking forward to raising their two young children in such a wonderful small community. Purchasing the house on Barranca Mesa would stretch their budget, but Mark and Mary had been looking at real estate in Los Alamos for over a year and this house was the first one they’d really fallen in love with. By crunching the numbers and making some adjustments to the family budget, Mark and Mary were able to make an offer on the house.

The purchase process was a whirlwind! There were a few minor repairs necessary after the inspection, but within sixty days the young family was moving out of their tiny apartment and into their lovely new home. John and Jane Doe could not have been happier for Mark and Mary Smith. The fall temperatures would soon give way to winter and John and Jane were glad to be packing their things and moving to Florida before the first freeze of the year. They were looking forward to a stress free retirement.

Moving is always a bit hectic, but Mark and Mary enjoyed making the new house into their family home. There were a few minor issues of course. Aren’t there always? A week or two went by. The temperatures started to dip a little lower. And Mark and Mary soon started to notice that their hot water heater wasn’t doing a good job with keeping up with their family’s needs.

Mark isn’t a DIY kind of guy, so he called a repairman. The repairman explained that the hot water heater was older and sediment build up inside had decreased its capacity. Mark and Mary had known that owning their own home would come with maintenance costs. The cost of a new hot water heater seemed within their means and they decided to go for it. After all, they could get a newer, energy efficient model and probably cut their energy costs and have far more hot water available for their growing family.

During the Doe’s long years owning the house, John had enclosed the hot water heater into a set of storage cabinets in the back of the utility room. The cabinets created a lot of handy space, but they also made it rather difficult to work on the hot water heater. The workmen disassembled the cabinets and got to work. And THAT is when they found a very unpleasant overgrowth of nasty mold that seemed to be growing beneath the hot water heater and all they way up the wall. The workmen took the rest of the cabinets apart and discovered the mold stretched the entire length of the utility room.

Hot water heater installers don’t do mold remediation. The contractor called Mark at work and told him it was time to call in a professional to handle this issue. Mark hung up with the contractor and called his real estate broker. It had only been two and half weeks since they’d closed on the house. Surely, the seller had some responsibility for this issue?

Mark and Mary’s broker took another thorough look at the disclosure statement for Mark and Mary’s home. There was no mention of problems in the utility room that could have led to a mold issue. The broker then contacted John and Jane’s broker and asked if there had ever been repairs in the utility room or problems with the hot water heater. It took several days for John and Jane’s broker to reach them in Florida.

John and Jane Doe were shocked to hear about the mold in their former home. Of course they’d had no idea that there was a mold issue in the house. After some thought, John remembered that he’d had an issue with the plumbing fixture on the hot water heater, but it had been a simple fix. A few new fittings from Metzger’s had stopped the tiny leak. John couldn’t imagine why he and Jane would have needed to disclose a leak that had happened nearly eight years ago and had been repaired without further incident.

Meanwhile back on Barranca Mesa, Mark and Mary were horrified to hear that their mold problem was going to cost eight thousand dollars to fix. The contractor at the restoration company explained that the tiny leak had only looked tiny. And while the leak was indeed repaired, the water had seeped down into the subfloor and up into the drywall and would require a complete remodel of the utility room and part of the ceiling and flooring above.

Mark and Mary contacted their broker. Surely they weren’t responsible for all of this damage if it came from a leak that happened before they owned the home? Besides, they didn’t have eight thousand dollars to pay for the mold repair!

John and Jane didn’t know what to do. Surely they weren’t responsible for all of this damage if the home inspector didn’t find it during the inspection? The leak was fixed. The hot water heater was working just fine when they sold the house!

That’s the thing. Nobody is right and nobody is wrong. As to who is responsible? That could be determined by the local courts if the buyer decides to take the seller to court for nondisclosure.

Here is the lesson. Disclose. Disclose. Disclose! I cannot tell my clients enough times to disclose EVERYTHING. What repairs did you make to the house while you were there? Did you hire contractors? Were there permits pulled for the work? Were there things done to the house prior to your ownership? So many times sellers are tempted to put their home’s best foot forward. After all, if there weren’t any lingering defects from a project, why is it a big deal?

I think my little story tells you exactly what the worst case scenario could be. Poor Mark and Mary Smith! Had the disclosure statement mentioned a hot water heater leak, the inspector could have been tasked with more thoroughly inspecting that cabinet in the utility room. He very likely would have found the mold problem. Would they have bought the house? Probably. But they would have likely come in with a lower offer that would have left them with the cash to make the repairs.

Poor John and Jane Doe! They’re in Florida trying to enjoy their retirement! If they had just listed the hot water heater leak and repair on the disclosure statement, there was no way someone could accuse them on hiding anything. Did they knowingly hide a mold issue? Of course not. Had they realized that there was a huge home improvement project looming, they could have either fixed it themselves (possibly with the help of their home insurance policy) or they could have lowered their asking price to allow for the repair.

This is the takeaway, folks: The sale STILL would have happened. It just wouldn’t have caused so much upset afterwards. So once again…

FSBO vs Broker: Ready. Set. Go!

October 14, 2020 /

Yes. When it comes to the question of whether or not to use the services of a real estate broker to sell your home or not, I have what you might call a biased opinion. But, having said that, I can also be real with potential clients. And looking at the Los Alamos County real estate market right now, you might be asking yourself, why on earth would you ever need a Realtor to sell your house? Houses are selling like Tickle Me Elmo during the Christmas season of 1996! Everyone you know has heard of someone that they know who has a friend, who has a cousin, whose house had a massive bidding war and went for thousands over the asking price!

Newsflash.

Some of those things are true. But just because the market is moving doesn’t mean the services of a professional broker aren’t needed. In fact, it can mean that you’re more in need of a licensed professional than ever. Here are a few things to think about if you’re considering a FSBO home sale.

FSBO (For Sale By Owner)

The FSBO trend has been around for generations. Stick a sign in the ground, handle all of the phone calls and marketing yourself, and do your own negotiating. You get to find the right buyer willing to pay the right price. You are intimately involved in every aspect of your home’s sale. From the first moment that potential new homeowner gets your number off the sign or the Craigslist ad until you’re handing them the keys and congratulating them on their new purchase. It can sound like a really great idea.

The number one reason why? Well, because you don’t have to pay a real estate commission to the brokers, right?

Let’s think about that for a moment. This can be a big deal. Nobody likes the idea of handing over five or six percent of their home’s equity to a third party. In some markets this can be the difference between breaking even at closing or having to bring money to the table to literally pay someone to take your house off your hands.

But that’s not our market here in Los Alamos. At least not right now. In fact, from a buyer’s perspective, it might be even more tempting to try and purchase a house without using a broker in our local market. It’s tempting to believe that leaving a Realtor out of the equation might result in a lower cost on a house in a market with a hefty median price.

Except those two concepts don’t really go together. Both the buyer and the seller can’t save a big chunk of change. Yes. They can save the commission. I typically charge six percent. On a $300K home that could be $15K. It’s not a small number. And yet, the popular Real Estate Information website, Keeping Current Matters reports that a study by Collateral Analytics suggests that broker listed homes netted an average of 6% more than homes that went for sale by owner.

Even if we suggest that you’re only breaking even in a financial sense by using a broker to sell your home, you might want to really consider what buying and selling a home actually involves.

No really. How much time do you have? If you’re buying a house, there’s a good chance you’re either out of area, getting settled in our beautiful little town, trying to get your kids situated in new schools, navigating a new job, or dealing with another huge life change. Even if you’re local, you’re probably trying to prepare for a move, which can be a logistical game of Twister.

If you’re selling your home, you’re probably doing exactly the same things in the opposite direction. The market here in Los Alamos has a breathtaking turnaround rate. There is a reason why people make jokes about real estate professionals being constantly on the phone. We are.

Marketing

The amount of money I spend every year on marketing would be absolutely ridiculous if it weren’t for the fact that I work in an industry that is almost entirely driven by my marketing. But in reality, it’s like anything else in our modern world. There are databases and networks and subscriptions. Never forgetting the power of social media. I work with companies and professionals in all facets of this giant machine to create a customized marketing campaign for each home I list. Add in the new pandemic restrictions and the realities of selling real estate in a Covid-19 world and online marketing has suddenly taken on a whole new meaning.

My question to anyone considering a FSBO situation is this. Are you honestly prepared to showcase your home in a digital world? 3D tours, Zillow, Facebook, paper marketing, and every other modern advertising concept that can get your home in front of a potential buyer? For some sellers, the answer might be yes. So many Average Joes out there possess digital savvy that I truly envy. If that’s not necessarily you, I realize that it’s easy right now to comfort yourself with the notion that you could probably skip all of that and just stick a few signs outside and advertise an Open House.

Perhaps. But do you really want dozens upon dozens of people wandering through your home and your family’s personal living space during a time when we’re not even supposed to gather in groups of more than five people whether we are indoors or out? More and more homes are selling sight unseen. Buyers realize what a pandemic means and they’re making adjustments. If you’re selling your home it means getting creative. If you’re buying a home it means navigating the world of airbrushed photos, professionally produced 3D tours, and flowery language as you try to decide if this space is right for you while essentially shopping online for your next home. Let’s just say the return policy on a house can leave a little something to be desired.

Okay. The last thing I want to talk about is the negotiating. Buying or selling a home can be tense. It’s sometimes tempting to think you’d feel better by having all of those little things under your control. After all, if you can see everything that’s happening you might feel less stressed. Right?

It’s easy to forget that part of what you’re paying your broker for is their network of “people to get that done”. Are you ready to negotiate with a potential buyer or seller about home inspections and appraisals? Even if you’re selling your home FSBO, you’re likely to get plenty of brokers calling you about your home. In a market like ours where every house matters, that’s a given. Are you prepared to negotiate with a professional who is working hard for their client? It might be tempting to think to yourself that it’s like paying half the commission you would have otherwise just to have someone deal with the paperwork. But remember that the buyer’s agent is working for them and not you, or vice versa. It’s like representing yourself in front of a judge in a legal matter when the other side has an attorney.

Speaking of legal matters, that’s another thing to keep in the back of your mind. In our modern market, the legalese and requirements surrounding things like disclosure (I’ll talk about that in another blog, I promise) and lending practices can be more than just tricky. Dealing with lenders and title companies can leave the most levelheaded individual spinning in circles. Don’t ask me how much time I spend on the phone making sure someone emailed someone else regarding paperwork labeled X,Y,& Z that is absolutely required to be at Location A before a 3:00 PM closing appointment.

Maybe You’re Ready

I’m not going to tell anyone that they aren’t ready to dive into this process if that’s what they want to do. That’s not my intention at all. If you’re chomping at the bit to try your hand at buying or selling a home without using a broker, then I’m the one standing on the sidelines cheering you on. I’ve known plenty of people on both sides of that equation. Those who have had excellent FSBO experiences and those who haven’t. If you’re ready, do your research and go to it! These are just some things to think about when you’re considering a real estate transaction. If you’ve ever experienced a FSBO situation, you’ve probably got a dozen more bits and pieces of advice to add.

As always, happy house hunting! And if you’ve got questions, please give me a call! I would love to chat with you and sometimes the first part of making the choice to work with a broker or go with a FSBO is to talk to a local real estate professional and see what your options are. You might be surprised how much information you can get from one phone call…

The House of Tomorrow Here in LA

August 26, 2020 /

The residents of Los Alamos County are used to the concept of housing shortages, creative solutions, and making do with what we have. After all, our surroundings boast some of the most incredible views the world has to offer. You can certainly embrace an eclectic house when you’re looking at panoramic views. But you might be interested to know that housing shortages aren’t a new thing here in Los Alamos. As early as the 1940s Los Alamos was looking for solutions to the lack of housing. In 1949 we were eager enough to jump onto a rather unique, quick, mass produced housing bandwagon called Lustron Homes.

Barely visible in this picture is the trademark zigzag trellis that was a Lustron Home signature feature.

Yes. Lustron Homes. The name today (if you’ve never heard it before) has a cult following not unlike the Airstream RV crowd. People are fascinated by the story, the space age style product, and of course, by the same “house of tomorrow” fever that probably has us moving toward a life straight out of “The Jetsons”. Although, this particular house of tomorrow is rather retro.

It all started with the return of GIs after WWII. The economy was recovering. Factories were booming. The middle class was a growing section of the population. And there was nowhere to live.

Enter Carl G. Strandlund. He pitched an idea to the government funded Reconstruction Finance Corporation (RFC) to build prefabricated homes. A $9000 home that could be manufactured in one place and shipped anywhere. These homes would be available in several model styles boasting either two or three bedrooms. They could be assembled by a team of six men using an assembly manual in only a few days!

The RSC granted Strandlund $34 million dollars in loans and set aside a good chunk of steel for his project. Lustron Homes are made of porcelain enameled steel. All of it. Interior, exterior, ceiling, roof, and some models even boasted ivory colored steel venetian blinds! They included bizarre built ins like radiant ceiling heat, a bedroom vanity, china cabinets, and even a clothes washer/dishwasher.

By 1949, Los Alamos jumped on the wagon and 6 of these homes were ordered and constructed on Fairway and 44th Street in the Western Area. The home in the picture above is Dove Gray. Other available colors included Surf Blue, Desert Tan, and Maize Yellow. The homes are made entirely of enameled steel. The company even had to come up with an upbeat decorating guide that included a picture hanging kit. Let’s just say that when decorating your Lustron, magnets are your friends.

Okay. So Lustron Homes never achieved their 100 homes/day goal. Their production line never managed to exceed 27/day. By 1950 they were bankrupt. They’d managed to crank out just under 2500 homes and had defaulted on orders for 8000 more. At the height of their production, the Columbus, OH factory was using more electricity than the rest of the entire city combined. It was a modern factory experiment that completely underestimated the cost of actually shipping these mass produced houses all over the US.

The Lustron Homes story is typically seen as a bit of a failure. The homes had limited decorating options. You can’t even repaint the interior walls. The steel plates are rather susceptible to rust. And it’s not like you can do much in the way of expansion or renovation.

However, 5 of the original 6 Lustron homes are still standing here in Los Alamos. And honestly, for our climate and the reality of living here they’re not such a bad investment. Instead of exterior paint, you just pull out the hose to refresh your look. The roof of a Lustron is totally maintenance free. The desert climate doesn’t exactly promote rusting so our Lustrons don’t have this issue. And on top of other considerations, they’re essentially fireproof.

Besides, they fit perfectly into our Los Alamos landscape. They are a piece of Post World War II history and that is very much a part of the identity of Los Alamos. Many of the Lustrons still standing around the US have been placed on the historic register. Wikipedia has a list of Lustrons HERE. You’ll notice that all of ours are conspicuously absent from that list. Go ahead and have a chuckle. After all, being absent from any list is such a vintage part of life in Los Alamos. There are so many old school examples of building and architecture here in our town. The quads and duplexes. The entire Denver Steel area, Fuller Lodge, Bathtub Row, and countless other examples of American culture frozen in time. Viewed through that lens, it seems rather fitting that we have some Lustron Homes on that list.

I’ll leave you today with a YouTube video courtesy of the Ohio Historical Society. Take a peek and enjoy a look back at what life used to be like. Sometimes as we talk amongst ourselves about spotty Internet service, online school, and work at home, it feels as though a return to a simpler time wouldn’t be so bad.

A Snapshot of Life in the 50’s.

See you soon! Keep looking for more blog posts featuring local real estate tips and ideas for Living in Los Alamos. And as always, Call or Email Kendra anytime!

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