Kendra Ruminer's Two Cents of Real Estate

Take A Peek At Los Alamos, New Mexico

Tag: Los Alamos Real Estate Market (Page 12 of 12)

Those Big Ticket Items

September 2, 2020 /

The words “Big Ticket Item” can be applied in so many ways. But they do seem to have a rather broad application when it comes to home ownership. A home is one of the biggest investments you’ll make in your lifetime. The amount of planning that goes into the initial purchase of your home is nothing compared to the satisfaction you get from walking through the door at the end of each day and just knowing you’re HOME.

But as with any investment, you might want to keep a few things in mind when it comes to maintaining and protecting your home. Whether you’re considering the purchase of a new or new to you home, or trying to make some vital decisions about necessary maintenance on your current home, these are some things to keep in mind.

The Roof

Architectural shingling is the most common roofing material used in the United States. However, here in Los Alamos County and in the Southwest in general, we see a lot of flat roofs on adobe style homes as well as metal roofing options.

Asphalt shingling comes in 20, 30, 40, and 50 year ratings. These ratings are established by the manufacturer, but they don’t necessarily take into account the brutal UV rays experienced here in our community. Lighter colored shingle roofs will last longer than darker colors, and choosing a lighter color for your shingles can also cut down on cooling costs in the summer.

Flat roofs tend to need repair or even replacement in 10-15 years. They require frequent inspecting to make certain that puddling of water doesn’t occur. In some cases, older flat roofs need a buildup of fiberglass or other material to create a slope to encourage appropriate draining.

A metal roof such as Pro Panel roofing can last from 40 to 70 years. Though some homeowners mention that metal roofing can be “louder” during rain or hail storms, proper insulation in your ceiling can eliminate this issue. Metal roofing also comes in a variety of colors and has a better fire rating than other roofing options, which sometimes makes it attractive in communities like ours.

Now. When considering your roofing options, whether the roof is on a house you want to purchase, or your current home, think about age. Age of the home. And how long are you planning to stay in that house? Metal roofing is more expensive than shingles. Sure. You might get 70 years out of the roof, but if you’re only planning to be there for ten years, you’re not going to be the one truly benefitting from that large investment. When pondering the options for replacing your roof, really be honest with yourself about your budget, your expectations, and how long you intend to be in this home. You’ll be glad that you did.

Siding

Saying that our town is filled with an eclectic collection of colorful dwellings isn’t just talk. A strong part of our town’s identity is in our individuality and sometimes that comes out in the paint choices. Even if it means that one half of a duplex is blue and the other is brown.

Some of these color choices come down to what sort of siding is covering the exterior of a home. We have brick, vinyl and hardboard siding, and also plenty of stucco. The durability of these choices is largely affected by whether or not they were properly installed to begin with. Vinyl siding has a 60 year lifespan, hardboard siding tends to be less, 40 years or so, and stucco will last you approximately 50 years. All of these estimates are affected by weather and climate. Replacement costs have more to do with your home’s size, construction, and whether or not the current exterior material must be removed. If you ask Google, the average cost of replacing your siding falls somewhere between $8K and 12K$. Truthfully, this number is generally higher here in our zip code, sometimes because we are located in a remote area, other times because of our tax rate.

In the end, what you choose to put on the exterior of your home should be influenced by your personal preferences and your budget. It’s also drastically affected by how long you intend to be in your home. Be aware if it isn’t your direct concern, it could be a concern for the individual who purchases your home from you down the line.

HVAC – The hot and cold in YOUR life

Air conditioning was not part of the original equipment in a good number of Los Alamos homes. If you’re considering the purchase of a home without A/C, don’t make the assumption you can just add that in later. Ask your Realtor or consult with your building inspector and get all the facts. If that home doesn’t have a central heating system, adding “aftermarket” A/C can be problematic. Ventilation systems and ductwork can be costly or impossible to install if there’s no place for them to go.

Many homes in Los Alamos have hot water baseboard heating. This tends to be a very effective heating solution for many homeowners. Combined with a wood stove or the use of a fireplace, it can be cost effective and cozy. Many homes in our area have passive solar features as well thanks to the brilliant sun that shines an average of more than three hundred days a year.

If your home DOES have A/C, you can expect that system to last 10-15 years. Your furnace and A/C do need regular inspections. Inspections for gas furnaces can be free, so take advantage of this service to avoid costly repairs down the road. If you do need to replace a unit, you can expect to spend between $5K and $10K depending on the size of your home and your family’s needs. When purchasing a home, make sure to ask when the system was last serviced and if the A/C unit has needed “recharging” (a refill of the system refrigerant). Then begin budgeting for any repairs or replacement well in advance. This is one situation where a little bit of planning can avoid some uncomfortable days and nights waiting for emergency service.

Appliances

When it comes to a modern home, there are a LOT of appliances! Here are some basic stats regarding how long those suckers are likely to last.

Hot Water Heater – 6-13 years

Stove 13-15 years (gas stoves tend to last longer)

Refrigerator 10-18 years (the larger the longer lived)

Dishwasher – 10 years

Microwave – 7 years

Some things to think about when it comes to replacing appliances.

First? NOBODY wants to be without hot water. Know how old your hot water heater is and what kind of shape it is in. The water in Los Alamos has a lot of minerals that tend to collect inside a hot water heater reservoir. While these don’t necessarily kill the hot water heater, they can diminish the amount of space inside the tank and effectively create situations where you simply don’t have enough hot water to handle more than one shower in an hour. This could shorten the number of years your hot water heater can handle your family’s needs.

It’s also important to consider the new options for hot water that don’t even require a tank. On demand tankless hot water systems can be a viable option here in Los Alamos. Many of our homes already have gas powered hot water heaters and that can decrease the cost of installation on a tankless system. In the end, it comes down to your family’s needs and your budget. While a tankless system can cost a lot less per year, they tend to cost three times as much up front. That means you need to be in your home for a number of years to break even on that expenditure. Talk to a qualified dealer or a highly rated plumber to find out if this option is the right one for you.

We’ve all seen those older refrigerators, stoves, ovens, etc. that seem indestructible. They’re ancient, and they’re some bizarre color like bright red, golden yellow, or avocado green. Remind yourself that all of those colors were popular at one time. When choosing your new appliances, try to go with a color and finish that is easy to clean, light, bright, and appealing. Even if you’re only replacing appliances one at a time as they need it, plan ahead and think timeless and not trendy.

I hope this information has given you some ideas about your home ownership journey. As always, if you have more questions or any comments, please feel free to Contact Kendra. I’d love to hear from you!

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!

What’s A Little Stuff?

August 20, 2020 /

If there’s something we see a lot of in Real Estate, it’s stuff. Yep. LOTS of stuff. It doesn’t really matter who you are or where you’ve lived, where you’re moving, or where you’re from. People accumulate stuff. We find it. We buy it. We inherit it. Other people give us THEIR stuff. And the cycle continues.

So, let’s talk about stuff for a minute. Can we? I can’t tell you how many times I’ve gone to visit with a new client and come face to face with their stuff. This can happen in any number of ways too. Maybe I’m going to their home because they’re ready to list it for sale. Perhaps I’m meeting with them because they’re in the market for another house. They need to downsize. Or they need more space. Like I said, this can happen any number of ways. Because we don’t have oodles of time and space, let’s focus on three situations that probably apply to most people in the Los Alamos area.

“Help! My new house has NO storage!”

There is always variety within a real estate market. But when Los Alamos boasts diversity in housing options, we aren’t kidding around. There are some homes that have enormous amounts of storage (yes, they DO exist!) But if your new home isn’t one of those, you might be looking for creative ways to maximize your storage.

First of all, does this picture apply to you? Do you have boxes and boxes of possessions that you’ve been carting all over the country as you move from one phase of your life to the next?

Step One: Go through your stuff. If you haven’t used it in five years, you probably never will.

There are a library’s worth of books written on the relationship between humans and their possessions. Hoarding is a word we don’t like to hear applied to us. But please go easy on yourself. Hoarding doesn’t always end in one of those homes featured on reality television. People hoard for a variety of reasons, but there is always an emotional element to it. The truth is that you’re likely to be much happier without a life filled with excess baggage. And yes, you can make an emotional parallel there if you choose.

Step Two: Identify storage areas in your home.

This isn’t just about saying, “oh yeah, there’s a closet here.” It’s about taking a critical look at the space you have and matching it with practical uses. This is also where you make an investment in organizers. The thought might seem irritating or overwhelming, but when you have a large rectangular empty space because of duct work or the chimney, an organizer solution can make that into a viable place to store books, toys, clothing, or just about anything you like. And if you’re looking for real space saving tips, I highly recommend Kendra Henning of Stuff Happens. Kendra has an absolute knack for knowing which organizer will fit what where!

Step Three: Be creative!

No room for cleaning supplies because the kitchen is full and there isn’t a proper laundry room? Do you actually USE all of your coat closet space in the front hallway? Why not store paper products and cleaning products there? Perhaps the kids need new beds anyway. Why not get a pedestal bed with storage drawers underneath? This might even be a solution for sports equipment like skis if you’ve got space beneath the bed in your master. Think outside the box and the box will suddenly seem a lot bigger!

“I’m trying to move into a larger home, but I have to sell my smaller one first!”

This sounds like a fantastic problem to have, but trying to sell a house you’ve outgrown can be tricky. First of all, see the steps above. If you’ve got unused stuff it might be time to donate or sell it. After all, you don’t want to move into a larger house and just swallow it up with a bunch of things you don’t even need!

Moving is the perfect time to purge. Get started as soon as you make the decision to put your house on the market. Perhaps even before. People need to be able to see your home. You might have outgrown it, but it may be just what they need. Unfortunately, if it is jam packed with boxes and boxes of your stuff, they can’t see just how perfect a fit it would be for them.

Don’t be afraid to start packing. In fact, DO pack. You. Are. Moving. Yes. If you pack the entire kitchen, you might have an issue making dinner, but you can pack most of the kitchen and be just fine. Moving is a mindset. Your house WILL sell. It might not sell tomorrow, but it will sell. Sure, in the interim you might experience a bit of inconvenience. Those are growing pains. They’re a natural part of this process. After all, you’re moving and eventually you will be settled in your beautiful new home! So get your stuff into boxes and tuck it into your best friend’s garage. Or your garage, if you have one. Even a month or two lease on a storage unit might be a good plan. Not to mention, paying for storage could REALLY motivate you to purge.

Once again, it’s not a bad idea to call a professional. Kendra Henning at Stuff Happens has a pretty spectacular track record with getting growing families from House A to House B with minimal fuss and stress.

“I’m downsizing after 30 years of living in the same house and I think my cat is lost in my office.”

Yes. This happens in Los Alamos more than you might think. In fact, I would bump that number up to perhaps forty plus years. This situation can also apply when an elderly parent has either passed away, or has decided to enter an assisted care facility or a smaller, senior living apartment.

This is when it can feel as though you are drowning in stuff. Paper can be one of the most prominent items to dispose of. Just because things are often all electronic now, that doesn’t mean the first thirty years of credit card statements and magazines aren’t still covering every surface in that home office. Before you get overwhelmed, ask yourself if you’re really ready to take on this task. It isn’t worth damaging yourself, your physical health, or your relationship with your elderly parent or relative when hiring a professional may be the better answer.

If that’s not an option you can choose, then I highly suggest making a plan BEFORE you attempt to sort anything. This plan should involve a realistic list of what will be useful in your/your relative’s next living situation, and then locating those items and setting them aside before you begin sorting the rest. It does no good to purge and purge and then realize you have to go and buy something you need because you already donated the one you had.

When it comes to a huge project that involves condensing decades worth of stuff accumulation, it pays to understand the ins and outs of estate sales, donations, and who to call when you need heavy lifting help. Even deciding what to keep and what to part with can be a difficult task. Remember, your unwanted junk might be someone else’s treasure, but finding that person takes industry know how and contacts.

The emotional impact of necessary purging can be paralyzing. I highly recommend calling Stuff Happens if you are facing this daunting task. Kendra Henning is a former project manager and Realtor with a deep understanding of what it takes to make an organized move happen. She is also a member of the National Association of Senior Move Managers. There are plenty of ways to make a move less stressful for your senior if you know how to work the logistics in their favor. Take advantage of Kendra’s industry knowledge to minimize the impact of this life changing event.

Whatever your issue with STUFF, remember that there are industry professionals out there who want to help. Whether you need a professional organizer or a Realtor, don’t be afraid to ask for help. We are only a phone call away!

If You’ve Got a Stuff Issue, Visit Stuff Happens ONLINE or CALL KENDRA HENNING today!

PID – Truth or Dare?

August 13, 2020 /

Los Alamos is a small town with a rich history of ingenuity and can do attitude. This is never more evident than when we’re talking about the housing market. You don’t have to be a part of this community for very long to realize that you need to be creative when it comes to living arrangements. Whether we’re talking about renovating a post World War II relic like a Lustron Home (Don’t worry. If you have no idea what this is, keep watching the blog and I’ll happily explain in a future post) or subdividing a particularly large lot to make room for a new neighbor perched on the edge of a canyon. We know how to think outside the box!

Sometimes, the need for housing pushes us into completely new territory. At least for Los Alamos. A good example of this is the Mirador subdivision currently being built in White Rock. It sits on NM State Road 4 between the White Rock Visitor’s center and the stoplight at Grand Canyon. If you’ve been to White Rock lately, you’ve no doubt noticed the rows of houses being built at what almost seems a frantic pace. You’ve probably also noticed that the land itself seemed to go through endless rounds of grading and preparation before the first houses went up and became habitable toward the end of last year.

Why did it take so long for the builder to start building actual houses?

A good portion of White Rock sits on a bed of basalt. This had to be blasted and removed before building crews could lay a foundation for the houses to be built.

“Gosh, that sounds expensive!”

It is. Or was. Or rather, it WILL be. But that’s why we’re talking about PIDs. Public Improvement Districts. You might have heard the term either in the Los Alamos Daily Post or the Los Alamos Monitor or maybe in a council meeting. Or, you might have heard about public improvement districts in relation to several of them in the Albuquerque/Rio Rancho area. This concept is widely used in other larger metropolitan areas. But Mirador is the first public improvement district in Los Alamos County.

How does this work? Here is a quote directly from the November 4, 2018 Los Alamos Daily Post Article by Carol Clark.

“So how will the PID generate money in order to cover costs for administration and infrastructure? According to agenda documents, a special levy will be assessed on property in the development. Homeowners in the Mirador development will pay this levy in addition all other taxes and charges. The levy is only collected by the County and no homeowner, property owner or commercial property owner outside the development will pay it. In an earlier article published in the Los Alamos Daily Post, Community Development Department Director Paul Andrus said the cost to the homeowner will average about $200/month under the PID.”

Hmm. Let’s relate that back to the idea of buying power. I talked about buying power back on July 29, 2020. You can see that blog post here. The face value of $200/month when you’re talking about a big ticket item like a house might not sound like a lot. But when you add that $200 as a line item to your monthly house payment, it can feel enormous.

In my previous post about buying power and low interest rates, I discussed the impact of lowering interest rates because a percentage point or two, even half a point, can be the difference between making a house affordable or not. Most home buyers come into the transaction with a comfortable number in mind. They know what they can afford each month to pay for principal, interest, insurance, and taxes. They’ve done their research. They know that they need to leave room in the budget for things like utilities and maintenance costs. There are the cost of living necessities too. And that’s when $200 can be the difference between a house with a PID levy associated with it being a good idea or not.

Here’s another thing. That levy associated with the PID sticks with the house for 30 years. Sure. Homeowner A who initially moves into this lovely, brand new house might be willing to pay that extra chunk of change each month. But when they go to sell the house, they’re going to have to find the next homeowner willing to take over payments. Depending on the future of PIDs in Los Alamos County, this could affect how future buyers view that house and what they might or might not be willing to pay for it.

Whatever the future may hold for our county and our real estate market, there is no denying that PIDs offer a lot of good incentives for development. In theory, they can keep prices down and incentivize the development of difficult property by spreading out the cost of infrastructure over time and making sure only those benefitting from the development pay for it. But there are other questions that will only be answered as time goes on.

Until we have all the answers, I suggest getting as much information as possible if you’re considering the purchase of a property with a PID attached. Find out how this affects your monthly payment and ask plenty of questions about exactly what you’re paying for. Don’t be afraid to satisfy every bit of your curiosity and get as much information as you possibly can about this new and unusual obligation you’re considering. Information is always power. And don’t forget. You can always call your Realtor with any questions or concerns about your real estate transaction.

Call Kendra Now!

Interest Rates & Buying Power

July 29, 2020 /

We all hear the talk. It’s impossible to miss. It might only be a snippet of conversation between some financial analyst and an economist discussing strategies employed by the feds to help boost the economy. But we hear an awful lot about interest rates. What do low interest rates really mean for home buyers and sellers? Let’s take a look.

Now. I’m not going to take you through all of the pieces of the financial puzzle that actually affect mortgage rates. Let’s keep it simple by saying that both banks and the federal government have an interest in how many people are purchasing a home. The bottom line is that in the beginning of 2020, we have seen record lows for interest rates on home mortgages. Yes. Coronavirus has had a negative impact on the economy, but even though interest rates have come up just a bit since the spring, they are STILL lower than they ever have been before.

What does this mean? It means your hard earned dollar can now get you a LOT more house for the money. And here in Los Alamos, this is great news! The basic laws of supply and demand mean our home prices tend to carry a higher than average median value than other areas of New Mexico. But when you have the increased buying power of a record low interest rate, this can go a long way toward bridging the gap.

If you were ever considering the purchase of a home, now is the time!

Remember that your actual mortgage payment includes more than one line item. You are likely paying $ toward your principal balance and another sum for taxes and insurance to an escrow account. You might pay mortgage insurance, and of course, you pay interest. By far the largest piece of your monthly payment is very likely the interest payment. That means, if you’ve set your heart on a house just above your initial budget, you might actually find that your budget is bigger than you thought because a very low interest rate will mean that interest portion each month is much less!

When we talk about interest rates for big ticket items like homes, a single percentage point can make a huge difference to your monthly payment. This is why pre-qualifying and getting a pre-approval from a reputable lender for your new home purchase is such a vital part of the process. Once you have started working with a lender, you will have a better picture of just how much buying power you have. Once you have this information in hand, it’s time to go shopping for that fantastic new home.

Nope. It’s almost never too late to take advantage of record low interest rates!

Don’t worry. If you bought a house in the last ten years or even the last five. Heck, even if you purchased one only a few years back, there are ways that you might be able to benefit from the current low interest rates.

“I love my house! But my interest rate wasn’t nearly as good as I could get now!”

If this is you, then maybe it’s time to refinance. There are several factors that should affect your decision to refinance, but if you love your home and plan to remain in it until you retire from the National Laboratory and head to Florida (or wherever you prefer) it might benefit you to refinance.

Remember that your home has likely appreciated this last year. Homeowners in Los Alamos County are enjoying more equity than ever. And while banks aren’t too keen to do cash out refinancing like they did a decade ago, you might still qualify for a better interest rate. You’ve been a homeowner for awhile now, right? That likely means your credit score has been improving. And now your initial down payment has been supplemented by the market value increase of your home! Equity means a bank might look even more favorably on a loan for your home. Imagine that! More buying power while buying something you already own. You might even look into a fifteen year mortgage and discover a way to pay off your big ticket investment even sooner than anticipated!

“We’ve only been in our house for a short while, but we need something else!”

Low interest rates are great news for you if you fall into this category. And don’t worry. That’s why so many homes fall into what real estate professionals sometimes call “starter homes”. They’re meant to be a start. A place to get your feet wet as a homeowner. Maybe that two bedroom quad was a snug hideaway for you and your spouse a few years ago. But now you have a toddler and another baby on the way and you’re busting at the seams.

Well, this is the perfect time to sell and move into something bigger. Remember, low interest rates mean other people looking for “starter homes” will have the buying power to do just that. Buy your home! Then you’ll be able to turn around and use your equity and that lower interest rate mortgage to purchase a home that better fits your changing needs.

So, don’t wait another minute if you’ve been thinking you can’t possibly afford the home you want. You will never know until you try. Give me a call today and let’s chat about ways to exercise YOUR buying power!

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