Take A Peek At Los Alamos, New Mexico

Tag: Real Estate Tips (Page 1 of 3)

Declutter Your World in 2023

Here we are at the beginning of another New Year. Happy 2023 to all of my friends and neighbors here in Los Alamos. I’m wishing all of you the best of everything for 2023. But as I am trying to remember to put a 23 instead of a 22 in all of my paperwork, I’ve also been doing some thinking about resolutions for the coming year.

Now, I’m not a new year’s resolution person strictly speaking. I believe that statistically, most new year’s resolutions fail by mid to late February. If you look up these statistics, there are all kinds of suggested reasons for this. But the most reasonable one I’ve heard is that a lot of new year’s resolutions are either too grandiose, too non specific, too big of a change all at once, or the person setting the goal simply doesn’t understand the process of making a change.

That doesn’t mean we wouldn’t benefit from taking a look at what we’re doing and striving to make it better in any and every way possible. If you were to Google “real estate market predictions for 2023”, you’d see multiple sources suggesting a slow down in home sales. Most national real estate sources are telling folks that they expect a more than two percent drop in home sales for 2023, which would make this year’s numbers the lowest in 9 years. But it’s important to remember that Los Alamos has so many other unique variables that we don’t necessarily follow national trends.

In fact, the home market here in Los Alamos is rather encouraging. We have continued construction going on in White Rock’s Mirador subdivision. Some of the latest homes they’re building not far from State Road 4 are both spacious and beautiful in their classic Southwestern designs.

The development at Arkansas Place has creaked back into motion with building supplies on site and workers moving full speed ahead. And if you haven’t checked out the new apartment complex going up just below the hospital, you should! It’s going up quickly and will offer spacious modern apartments to help ease the housing crunch.

So many housing projects are underway in Los Alamos!

Towards the end of 2022, I talked about several other potential developments going up around town. None of this suggests that the market here in Los Alamos will be anything other than steady, which is encouraging to all of us. If you already own a home, your house will be likely to retain its value and maybe even show an increase. LANL is still hiring and has plans to continue doing so. We have an incredible amount of community projects happening around town, events to enjoy, and so many outdoor activities to look forward to. 2023 is going to be a great year!

If you’ve already got your dream home, or even if you’re not planning to stay in your current home forever, 2023 might be the year for you to experiment with a few of the other trends sweeping our culture and our country.

The No Spend Challenge

More than a few folks have talked with me about this idea, which can be as complicated or simple as you might like. The idea being to challenge yourself to spend only what you need to pay your bills and cover necessary costs of living. That’s an interesting idea, isn’t it? From a home standpoint, perhaps it would be smart to identify renovation projects or things you would like to change about your current home, and then look for ways to decrease surplus spending on life’s little luxuries.

Challenge yourself to go without Starbucks, or your Friday night wine tasting, or whatever you think you could “give up” for a defined amount of time in order to decrease spending and increase saving. Then, come 2024, hit that remodel with your savings and really bask in the satisfaction of knowing you worked hard to make something happen for you and for your family!

The Great DeClutter Event

Has anyone else noticed the enormous rise in storage facilities? It seems like enormous controlled climate storage facilities are going up everywhere! Homes in other regions are getting bigger, with more storage for the serious increase in the amount of stuff Americans are collecting.

Does your garage or basement look like this?

Here in Los Alamos, we don’t typically have a ton of storage in our homes. Maybe 2023 could be the year to not just declutter the unnecessary stuff you already have, but to stop buying more stuff you don’t need. Try looking around your home and identifying boxes that might be taking up space in your storage area. Look for items you don’t use.

If you haven’t looked in a box for more than six months, experts suggest you honestly don’t need what’s in the box. Gather those boxes and unused items in a space like your garage or your driveway. Open each one and take a quick look to make sure there’s no personal information, papers, documents, etc. Then just put the box or item in the car and donate it. The idea is to put yourself in a position where you don’t have the time, the energy, or the space to go through those boxes and activate any emotional attachments to the items. Sentimentality has its place, but you need room for new memories and experiences. That can’t be done if you’re keeping everything!

Your space COULD look like this!

When it comes to Internet shopping and Amazon in particular, challenge yourself to leave items in your shopping cart for at least 24-48 hrs before you purchase. Don’t impulse buy. Take the money you would’ve spent on things you don’t need and either pay down an existing bill or put it in a savings account. By the end of each month, each quarter, or all of 2023, you might be shocked at the amount of savings you have to apply to something you really, really want and need.

No matter how you decide to challenge yourself for the upcoming year, I hope you find enjoyment and satisfaction in life. And if 2023 is the year you decide to buy or sell real estate in Los Alamos, then give me a call! I’m your hometown real estate broker and I’d love to talk housing in Los Alamos with you.

A Few Notes About Our Fall Market

There is no doubt that the world feels a little nuts right now. The holidays are coming up fast. The time change FINALLY happens this coming Sunday on November 6. Between interest rates and inflation, you might feel as if your head is spinning trying to keep up!

When it comes to the real estate market, there are all kinds of assumptions being made too. If you’ve considered buying or selling your home in the next few weeks or months, you might even wonder if you missed your window. I assure you, that isn’t the case at all!

Fall is SO beautiful!

In spite of the economic changes going on, the real estate market is still in good shape. Homes are still selling and home prices are remaining steady. In September 2022, I unexpectedly had my best month ever. In light of these facts, let me share a few important things to remember.

In spite of what you might have heard:

Home prices remain steady and consistent.

A few homes are staying on market “longer” than they were during the previous two years, but this is actually “normal”.

No change in the market has actually happened, nor does the data suggest there is a change happening soon.

The fall season and the holidays are ALWAYS slower in the real estate market. Things will pick back up in January of 2023 just as they do in January of every other year.

Heading out to watch the Toppers can be a fun fall activity too!

Something else I like to remind folks is that just because your neighbor’s or your friend’s home sold for X price in Y number of days does not have any impact at all on what might happen with your home. If you really want to know a good sales price for your home and how many days on market you might expect before you get an offer, call your broker and ask! It’s like looking for any other data. Go to the source to get good information. I’d love to chat with you about your home. Give me a call when you’re ready and we can talk real estate in Los Alamos!

Good Fences Make Good Neighbors

The word neighbor might make you smile or groan. So much about liking or not liking your neighbors falls outside of your control. But some things you can control. Things like what kind of fencing you choose. Privacy is a huge part of feeling secure in your home and your fence is what establishes the level of privacy you enjoy.

Planning Your Fence

Here in Los Alamos, the first thing you need to do when planning to upgrade your existing fence or build a new one is to check our county ordinances. You can use this link here. For the most part, if you’re fencing in the back of your home, you need to keep it under six feet in height. If you’re in your front yard, three feet is considered legal. If you have a corner lot or other unique property features, you’ll need to make sure that there aren’t any additional applicable restrictions.

The second thing to ask yourself is what you want your fence to do. Sure. These examples of standard wood fencing are attractive, but will they keep things in or out? Do you have chickens or dogs or children to worry about? How much maintenance do you want to do on your fence?

That beautifully even toned picket fence is going to take a beating in our dry climate. And the UV rays are going to require you to power wash and stain that fence on a yearly basis to even get close to its promised life span. Another frequent complaint of this fencing type is the tendency of the wood posts to dry rot. However, you can look into several different metal post options in order to mitigate that particular problem.

If you’re looking for less maintenance, you might try metal fencing. Some of these wrought iron options are really attractive and can be matched to the spindles on your deck or outdoor staircase.

I realize that when you think metal, you might be thinking about chain link or even barbed wire. While chain link fencing can be an inexpensive option, it doesn’t offer much in the way of privacy. And unless you’re keeping cattle in your yard, barbed wire isn’t going to do anything but add that “rustic” appeal.

Something you might have seen going up in various places around town is masonry walls. There are four to five different varieties of masonry wall, including those covered in stucco, and they can sometimes be combined with other fencing options such as metal or coyote fencing to create a unique and even artistic look to your fence. Masonry walls also have the advantage of being more durable against UV rays and offer good sound buffering. However, they aren’t inexpensive and you’ll likely want to hire a good contractor instead of trying it yourself.

Masonry Walls can be used in several different kinds of fencing combinations.

Location

The other critical piece of planning your fence is the location of your property. How much rock are you going to run into when digging post holes? Are you on the canyon edge? How many bears are you likely to host in your backyard? Are you on the edge of White Rock and prone to sixty mile per hour straight line winds? Does your property have trees to help with the sun’s punishing rays?

All of these questions need to be considered when choosing your best fencing option. Once you’ve determined the material best suited to your needs, you can take a look at budget and the expected lifespan you need from your fence. Keep in mind that part of my “good fences make good neighbors” proverb has to do with choosing a fence that doesn’t offend your neighbors. Talk to them about it. You never know, if you and your neighbors can come to an agreement about what works best for everyone, they might even be willing to help with the cost.

At the end of the day, we’re all neighbors here in Los Alamos. And when you’re ready to talk real estate, give me a call! I’m your hometown real estate expert!

Looking Back At Real Estate in Los Alamos

There’s no doubt that we can look back ten years and see change. No matter who you are, a decade is a looong time! But as I celebrate my tenth anniversary as a ReMax real estate broker, I want to take you with me on a time warp journey back through my real estate journey in Los Alamos.

First of all, let’s clarify what ten years really means in this context. I’ve been with ReMax ten years, but I actually started here in the real estate business in 2003. I worked until 2006 before taking a break to raise some babies between 2006-2014. When my kiddos were ready to be a little more independent, I got back into the real estate game. So in reality, we’re talking about almost twenty years of changes in the market here in Los Alamos.

Plenty to Shop For

If you’ve been here in Los Alamos for a few decades, you know that our real estate market can fluctuate in some pretty steep patterns that correlate pretty consistently with LANL projects. Ten, fifteen, and even twenty years ago, we were in a very different market, a buyers market in fact. There were plenty of houses on the market to look at. Buyers could pick and choose from a variety of options. Sometimes the same house would see nearly a $100K price difference from one sale to the next. And that could go in either direction!

The large number of available homes back in the day meant that there were more than a few full time real estate brokers here in town. Back in 2003, names such as my mentor, Kendra Henning, Pearl White, Nancy Mroz, and Jim Gautier adorned many signs around town. Some you still see, some have retired or semi-retired. At that time there were such a large number of local real estate agents that we had our own Los Alamos Association of Realtors® (LAAOR).

New Construction at Quemazon

I remember when Quemazon was a new and fantastically different housing option here in Los Alamos. Buyers could opt to build new instead of buy an existing home right in the (kind of) middle of town. Now we’re building in White Rock and looking at an expansion of Ponderosa Estates. The growth might not be fast, but it is happening.

Homes Prices Were Still Rising

It’s true that we’re seeing home values right now that feel shocking. But it’s important to remember that this isn’t isolated to Los Alamos. This is everywhere! I remember the first Los Alamos home selling in the over $800K price range somewhere around 2005. It seemed unbelievable at that time too. Don’t forget that whether we call things inexpensive or expensive is mostly perception and whatever else is going on at the time. Keep in mind that ten years ago in 2012 the high price for a gallon of unleaded gasoline was $3.62. That isn’t wildly different from what you’re probably paying now. Sometimes it’s difficult to remember how wildly things can fluctuate. Certainly, we’ve seen a steadier rise in real estate values. Circa 2004-2006, the average rise was 5% per year. In 2012 & 2013 the average price dropped 4%! Now we’re seeing a 10%-15% per year increase in prices, but that’s also influenced by inflation, which has risen to 7.5%. That’s the highest inflation rate we’ve experienced in the US since 1982.

A ten year anniversary is certainly something to celebrate, but really I’ve been in the Los Alamos Real Estate game for almost two decades. Since coming back in December of 2014 I’ve sold $93M in volume and worked with 284 families of all shapes and sizes to buy or sell their home. And that’s not even close to how many wonderful people I’ve met through being in this business. I’m so glad to be here in Los Alamos doing what I love in a place that is very much my home! So many exciting things have happened in my time with ReMax and I expect more and more exciting things to keep happening! And when you’re ready to talk real estate in Los Alamos, give me a call. I’d love to chat with you!

2021 Wrap Up!

As we say goodbye to 2021 and welcome in a new year, I hope this post finds you and your family enjoying your holidays and planning great new things for 2022! My January newsletter will be filled with thoughts about buy, sell, and hold. If you’re not a subscriber, be sure and email me to get your name on the list! Since the 2021 Los Alamos County Real Estate report came out this past November, I thought I might share with you some interesting facts.

How Many Homes Sell Each Month?

This is an interesting statistic, especially here in Los Alamos County. In fact, it’s a bit like a chicken and the egg question. Look at the graphic below and see what it can tell you about about how many homes sell each month in Los Alamos.

The first thing you’ll notice is that the peak month for home sales is in August. Not a surprise really. Seasonal fluctuations are highly common in real estate markets. But don’t you find it interesting that for the last three years the highest number of homes sold has been the same? November is always shown in red because that’s when the cycle begins again, but realistically, the trends are very similar each year.

How Many Days Does it Take to Sell a Home?

This is a question that has a lot of different parts. After all, the offer is only a tiny piece of the sale puzzle. When we say that we’re experiencing a seller’s market, it certainly means what you think it does. But it also means that seller’s can spend a little time choosing just the right offer. That can affect the number of days a home spends on the MLS.

How Much Are Homes Selling For These Days Anyway?

The answer to this question probably isn’t what you think. Truthfully, average home prices have been consistently rising right along with inflation. We’re certainly seeing homes that wouldn’t have been nearly as popular several years ago become more so, but this is happening all over the US right now.

What has happened is that the number we used to consider really high ~ $500K ~ is no longer as high as it once was. So when we look at this ~

We aren’t nearly as shocked to see that in 2021, 118 homes sold for over $500K. After all, inflation paired with demand is a recipe for this sort of increase. Perhaps the year that should be considered an outlier based on this information is 2006. Of course, without the numbers for a handful of years prior to 2006 there’s not a way to see what the trend really was at that time. But it is sufficient information for us to infer that these fluctuations are not all that unusual. Perhaps what gets us is the idea of such a large sum of money. After all, if someone tells you that they remember paying under a dollar for gasoline, you feel wishful for those days of cheaper gas prices. However, you’re not likely to believe someone is telling you a whopper if they say they paid more than $7.00 a gallon for gas in California.

As I mentioned in my last post, perception is everything when it comes to looking at the real estate market. I hope you’ll look at the information I’ve given you and feel encouraged. Of course, it’s never wonderful to feel as though things are getting more expensive. However, when it comes to homes, continuing low interest rates are a huge part of what makes people able to pay a little more for what they want. And when YOU want to talk real estate, give me a call! I’m your local real estate expert!

Perceptions of 2021

As 2021 comes to a close, it’s always fun and exciting to look back over the year and see how things have changed in and around Los Alamos. This year we’ve seen the completion of our new roundabout, more new construction in White Rock’s Mirador subdivision, and even the demolition of the old McDonald’s building. Starbucks is proceeding with their brand new building and there are plans to see a second location of Pig & Fig here in Los Alamos. (but more about that in a future post!)

When I say PERCEPTIONS of 2021, what I’m speaking about are the things that we think we know. And when it comes to the real estate market here in Los Alamos, 2021 has been yet another year where perception is everything.

What determines the value of a home?

Of course the value of a home can be determined by many concrete things like comparable sales in the neighborhood, appraisals, and of course the amenities a home has to offer any potential buyers.

What determines the status of the market?

We sometimes refer to a market as a buyers’ market or a sellers’ market. These designations are defined by plenty of data. There are statistics regarding number of homes on market, average selling price, average number of offers, averages on the number of days on market… The list of data sets can feel enormous! But how do those numbers stack up against perception?

What part does perception play in market status and home values?

The answer? Perception is huge! Public perception. The perception of the brokers and agents working in the market. Perceptions about economics both locally and nationally. No matter where you’re home shopping, perception is a big part of your experience. But here in Los Alamos, perception plays another unique role in defining how we view buying and selling real estate in Los Alamos County.

In the beginning, when Los Alamos was a jumbled collection of government owned housing units populated by employees of the National Laboratory, it was a firmly held belief that this is a company town. Even when employees both LANL (then LASL) and the Zia Company began to clamor for privately owned housing it was difficult to convince mortgage and insurance companies that Los Alamos would ever be able to stand on its own as a town.

Many current residents of Los Alamos still believe deep down that this is true. You’ll hear statements like, “The Lab is hiring! Our property values are going to go up!” Or, you might hear something like, “The mandatory vaccination policy has caused lots of people to walk off the job. The housing crisis up here will probably ease up now.”

These are perceptions. They aren’t facts. And here’s something really interesting I noticed during the last half of 2021: Those perceptions are not really all that accurate. During my last newsletter in October, I mentioned that there was a feeling around the office of the market shifting. Though the statistics didn’t necessarily support our perceptions just yet, I suggested that the brokers around town felt that there was an easing up that could mean more houses available for sale.

As I look back, I’ve begun to realize that this was nearly all perception! There had been quite a lot of news around town and nationally about vaccine mandates and potential job vacancies up at LANL that would end with folks moving out of the area. This caused us real estate professionals to perceive that the market was going to suddenly be flooded with homes for sale because in the past, this has very often been the case. This time, it was what was happening all over our country!

But it didn’t have the same impact on the Los Alamos real estate market this time. Not really. Did we see some effects? Sure. Very small ones though. Perhaps there were only two offers on a home instead of five or six. The number of homes on the market a few weeks ago was twelve, which is more than the usual average. But at the end of the day, here are a few things that I learned:

Trust the statistics more than the perception. Right now real estate markets all over the United States are reflecting the same thing. Americans want to buy their own home. The number of homes available just isn’t comparable to the surge in the number of buyers. Period. It doesn’t matter if you’re in Los Alamos or Germantown, Tennessee.

Los Alamos is a town in its own right. It’s time to shed the 1940’s perceptions behind us. Yes. Housing here in Los Alamos is always going to be unique. That’s part of our history. But all housing crises do not belong solely to our population. They’re everywhere now. We should be focusing on enjoying our town, bringing in and supporting new businesses, and utilizing the amazing activities and amenities our town has to offer.

So get involved this holiday season! Shop small. Take a walk beneath the twinkling lights around the pond. Gather with friends and family and relax. The year AFTER Covid is coming to a close. Things aren’t the same, but maybe that’s all part of moving forward. And when you’re ready to join or leave our unique community, give me a call! I’m your home town real estate expert!

Questions You Need To Ask

There are plenty of situations in which politeness involves keeping your mouth closed. As we coast into the 2021 Holiday Season, I don’t think it’s difficult to think of a few choice moments when its better to let sleeping dogs lie. However, there are certain times when it is imperative to say what’s on your mind. Searching for a Real Estate Broker is most definitely one of those times.

Raise your hand if you’ve ever felt as though you could NOT ask a question.

I think it’s probably fair to say that we’ve all experienced this moment. Perhaps you feel it would be rude. Maybe you don’t feel as though you’ve got enough credibility on a certain topic. Or perhaps you just don’t know the right way to phrase a question to get the information you need. Well, when it comes to choosing a broker for your needs, here are a few questions you should really be asking any potential broker that you work with.

How long have you been in the real estate business?

It might feel rude to ask this of a broker when you’re very likely the one who initiated the conversation, possibly by calling the number on their website. But here’s a really important thing to consider. You’re about to trust this individual with one of the biggest purchases of your life. If this is their third sale or their three hundredth sale, you really need to know that.

When you choose a broker, you’re not just getting a person, you’re also getting their network. Brokers who have been in the business for a long time have contacts. They know which lender would be perfect for your situation or which title company will suit your unique needs. They have a working relationship with other brokers in their area and they utilize that relationship for your benefit.

This is also why you should be asking any potential brokers if they’re “full time” or “part time”. There are a lot of brokers out there who have been in the business for a long time, but only do one or two deals a year because real estate is more of a hobby than a job. While these individuals might be really great brokers, they might not be as accessible as you want in a market like the one we’re currently in. Successful real estate brokers don’t have office hours. They are available 24/7 365 days per year. It’s part of the business and while it might seem harsh, if you’re trying to negotiate a deal on the home of your dreams, you want someone who will be available every step of the way.

How familiar are you with (insert city or area here)?

Now, this might seem like a no brainer. After all, you called this broker for a reason that usually involves seeing their name or their number on a sign in the area you’re house hunting in. Or, perhaps you inquired online about a home and got a response from a broker so why wouldn’t they be familiar with the area?

Remember when we talked about using Zillow responsibly? If you missed that post, you can catch up on the ins and outs of Zillow here. But beyond some of the tips I offered up before, there’s something else I’ve been hearing a lot about lately. See, when you inquire about a home online, especially on Zillow, you’re not necessarily getting in touch with the listing broker for that particular home. Zillow allows brokers to purchase leads. That means any hungry, young broker looking to add sales to their resume could be answering your inquiry. The good news is that they’re likely to be not only “full time”, but super motivated to find you a house. The bad news is that they could be from out of the area. Here in Los Alamos, this is a critical piece of information you need to know if you’re looking for a broker to work with.

Our community is unique and so is our home market. When brokers from other areas such as Albuquerque come up to Los Alamos, they usually don’t know the difference between a Group 18 and a Group 11. They don’t always have access to the same information the local brokers do. They don’t have the contacts to find out what offers are pending or where a home is in the listing process. Again, they don’t have the network. In several of these cases, outside brokers have encouraged their buyers to make offers above what that buyer might have needed to. Sure. The buyer gets a home and the broker gets a sale, but it most definitely wasn’t in the buyer’s best interest. Not that the broker did it on purpose. They just didn’t know any better.

This can be the case when you’re leaving the Los Alamos area and looking elsewhere too. I’ve often referred my buyers to other brokers in the area where they really want to look. I’m your local Los Alamos Real Estate expert, but if you tell me you’re looking for horse property in La Mesilla or Nambe, I’m not going to pretend to have the first clue how to find you the best situation for your needs.

(Insert Question Here)

No, seriously. You are buying a home. There is no such thing as a stupid question. I’d much rather have you ask than have you get two thirds of the way into the process and not understand what’s happening. Your broker is working for YOU. Yes. They’re busy people and sometimes when people are busy they forget that not everyone knows as much about the process as they do. But at the end of the day, you’re paying a broker to walk you through this. If you didn’t want that service, you’d be buying a house without it. That means, if you feel confused or upset or worried, you need to be communicating that. Of course, tact is appreciated, but if you ever feel as though you CANNOT ask a question because your broker might get mad at you, then you’re not working with the right person for you and your needs!

At the end of the day, it’s about having the courage to say what you think and feel and the confidence to remember that YOU MATTER. I’m not suggesting buyers should become the real estate version of bridezilla, but brokers are used to working their clients through cold feet, confusion, and even disappointment. We’re also used to sharing in the excitement and elation of finding that perfect house and helping it become YOUR HOME. It’s all a part of the job!

So ask the questions. And when you’re ready to talk with me, give me a call! I love to talk about real estate in Los Alamos!

The Market of “As Is”

Home For Sale – Needs TLC

Our community is unique in many different ways and the available housing is probably one of the most eclectic pieces of that differentness. Homes that come on market here in Los Alamos County are as varied as it gets. You might be looking at a home in Mirador that was only built two years ago. You might be looking at a Group 11 that has been updated and renovated until it barely resembles the original structure. Or, you could be considering a custom home built in the seventies or eighties that has quite literally been in a time warp since the first owners moved in and began raising their family.

There is actually something strangely attractive about going into a home and looking at it through the very optimistic lens of HGTV. The good news about homes from that era is that they are generally pretty darned spacious. The lots back in those days were huge. You’ve got good general construction to work with. And honestly, you can make something that looks like Grandma’s House into YOUR HOME with a good contractor and ready cash. And in a market like this, it’s not too crazy to consider the possibility of making that investment into your home.

Please. Please. Please go into these “as is” sales with your eyes wide open. It isn’t uncommon in the current market to see sellers, (this happens A LOT with FSBO sales btw) telling buyers up front that their home is for sale AS IS. Sellers don’t budge off a sale price because of what comes up on a home inspection. They don’t feel they have to. And in reality, they don’t. But it is a giant red flag if a seller tells you that you CANNOT have a home inspection before purchase.

I’m always concerned when my buyers suggest skipping the home inspection because they’d rather not spend the money when they know they’re going to buy the home “as is”. Many times these are buyers who come to me and tell me to “do whatever it takes” to get this home. They don’t care. They want it. It is their dream home and they’re so passionate about that right now they’re ready to go! Love is blind. Even when it comes to a home sale.

Here is what I always suggest they think about. Yes. Right now it doesn’t seem like a big deal that the kitchen needs to be gutted and the roof is more than a decade past its expiration date. But the average home mortgage term is 30 years. You need to know what you’re really getting into and a home inspection will at least provide you with an idea. It isn’t the reno projects staring you in the face. It’s the ones hiding in the crawl space that really matter. The average home owner purchases a home and lives in it for 2-5 years. You don’t want to spend those five years making repairs to keep your dream home from falling down around your ears and never have any time or ready cash to make the changes that really allow you to live comfortably and happily in your home. Yes. You might be purchasing a home “as is”, but you also need to do it “eyes wide open”. Are you certain you know what needs to be done? Do you understand that certain things take priority? Safety vs Functional and both of those over Pretty?

These are really big questions that buyers need to ask themselves when they’re considering that home purchase. My hope is that things are slowing down so that “whatever it takes” can coexist more peacefully with buyers being thrilled beyond belief with the journey they’re about to begin in their new home! After all, that’s what makes my job so amazing. I’m your hometown real estate expert, but I’m also your neighbor. I love watching my buyers move in and really make that house their home! So give me a call! I’d love to hear from you!

Bridge the Gap

The brilliant colors of autumn are beginning to wane. There is a distinct chill in the morning air and all too soon Daylight Savings Time will be over. We’ll roll back our clocks and enjoy an extra hour to stay snug in our beds. Yes. Fall is here. Halloween is almost upon us, Thanksgiving is right around the corner, and – not to freak you out- but there are only 63 shopping days left until Christmas 2021.

For those of you still searching for that perfect home or those considering selling one that no longer feels perfect, the market here in Los Alamos County still continues to be a seller’s market. A week or two ago there were actually over twenty homes available on the market, an unprecedented event in recent memory. However, we’re starting to see some signs of “buyer fatigue”. There aren’t quite so many offers for each home prior to sale. Many people have taken a pause and aren’t so sure they want to shop for a home right at the moment. There is certainly something happening here in our local market. And no. This doesn’t mean you’ve missed your window. LANL is still hiring. Homes are still in high demand. And this demand for homes is nationwide and not just here in Los Alamos. Which brings me to a few interesting points about the market of “as is”.

Bridging the Appraisal Gap

Many of you have heard this phrase before. We’ve touched on it a few times in past posts. The appraisal gap. The distance between what a home is valued at by a licensed appraiser and the bank willing to offer the mortgage, and the price the seller is asking or the buyer is willing to pay. Traditionally, this gap was seen as being in the buyer’s favor. If a bank determined that a home wasn’t “worth” what a seller was asking due to recent comparable sales in and around the area, then a buyer would lower their offer accordingly. At that point it became up to the seller as to how badly they really wanted to sell their home. Either they lowered their asking price or they waited for another buyer who really wanted to buy the property. Most of the time, they lowered their price and the sale continued. This isn’t the case anymore and it isn’t just the home markets seeing this trend. Have you tried to purchase a vehicle in “high market demand” lately? Dealers are adding up six or seven thousand dollar “market premiums” onto their MSRP because certain popular models sell out and create a supply/demand issue. The way that we buy and sell things in general has most definitely changed!

However, something that has affected that appraisal gap in recent months is the fact that we are seeing most of the homes selling in our county appraise at a level consistent with what – at first glance – might seem like a steep purchase price. Why? It’s actually both simple and very complex. See, we’ve been in a seller’s market for a long time now. There have been a lot of buyers bridging that appraisal gap for more than a year. I’ve seen clients bring more than thirty thousand dollars plus their down payment to the closing table in order to secure the home of their dreams. But this has effectively created a market that supports the purchase prices we see now. Why would House A not be valued at X when Houses B, C, D, & Z have sold for right around or even more in the last six months? Once enough sales have taken place, an appraiser has enough comparable sales to establish a higher value. Of course that’s great news for anyone who had to bridge that appraisal gap in the beginning.

A home is worth what a buyer (or 3 buyers) is willing to pay for it in an open market. Even if it does not appraise to value, it is still worth what someone is willing to pay for it, and the worth is not dependent on the appraiser’s opinion of value.  This is the reason people are making their offers with the appraisal gap language.  They are stating that this home is worth it to me, and I’ll put my money where my mouth is.

I often get asked what happens when a buyer suddenly decides that they’re not quite so willing to bridge that appraisal gap. After all, there are reasons writing an offer for a home is serious business. The offer is a contract, a binding legal contract. When my buyers decide that an offered purchase price is no longer in their best interest, I always tell them they need to consult an attorney. It is possible they could be held to the contract with their signature on the dotted line. This is and continues to be a serious risk. Legal action, consequences, and keeping your word are par for the course. Certainly there could be issues with financing, qualifying for a mortgage, and plenty of other concerns when it comes to closing on a home. But if you agreed to pay X, then you’d better be prepared to pay X. Sellers have often made plans based on the offer they accepted, maybe made an offer on another home, or even just scheduled movers. Sellers typically choose the offer based on the chances of it closing on time, for the agreed upon price, and under the agreed upon terms.  It is a big deal for a seller to have to go back on the market for many reasons, people wonder what happened (is something wrong with the house?), they’ve lost time, and interested buyers.  There is no guarantee of multiple offers when going back on the market after a deal falls apart, and no guarantee that they’ll get as much money with the first buyer.  There could be legal and monetary ramifications for defaulting on a contract even in a seller’s market when the house could sell again. 

What would make a buyer change their mind about bridging the appraisal gap? The other aspect of “as is” has a huge impact on that. The home inspection. But we’ll talk more about that next week. For now, I’m going to sign off and remind you that I’m always here ready to answer questions about appraisal gaps and every other aspect of home buying and selling here in Los Alamos. After all, I’m your home town real estate agent. So give me a call! I’d love to chat with you.

Live on the Edge in Los Alamos

If you’ve spent much time driving around Los Alamos getting to and from the homes of friends or maybe just walking your dog, you might have missed taking a tour through Ponderosa Estates. The neighborhood isn’t unlike Los Alamos itself. You have to intend to go there. You deliberately drive to the corner of Diamond Drive and Range Road and make the turn by the fire station and head down and out of sight. Either you’re trying to get to the Guaje Pines Cemetery, you’re headed to Ponderosa Estates, or you are set to leave the map entirely. The terrain is gorgeous. The trees are tall and thick. And in some cases, residents have decks that are perched upon the edge of the map. One step and the forest awaits.

The first homes in Ponderosa Estates were developed in 1993. The original proposal was for 222 single family homes on 111 acres of land. The development was set to take place in 4 phases, each phase being completed before another was set to be started. After 27 years, the next phase is finally in the planning stages. Phase 3 consists of 49 homes proposed to occupy 11.62 acres.

Why So Long?

A good number of residents here in Los Alamos probably assumed that whatever had been built down in Ponderosa Estates was the end of it. Why wouldn’t we have thought this? It’s been going on thirty years since any construction took place in what was originally an area designated for access to forest land used for everything from ATV riding and camping to wood cutting. The answer that has been suggested is the economy. Once phases 1 and 2 were completed, there was less demand for new homes in Los Alamos. The market was variable and development was expensive. There are also several other issues to address, some of which were brought up at a February 26th meeting of the Planning and Zoning Committee.

One thing that isn’t commonly known is that responsibility for maintenance and snow removal on the streets of Ponderosa Estates isn’t a clear cut thing. Theoretically, once all phases of a proposed subdivision are completed, the streets are dedicated to the county and the county then becomes responsible for everything from snow removal to water service and traffic issues. Right now, this is not the case.

Other issues under discussion are possible park or green space areas to give neighborhood children a safe space to play, and of course, traffic. If you’ve ever driven around Ponderosa Estates, one of the first things you notice is the winding and often steep nature of the streets. Some of the driveways themselves are incredibly intimidating to maneuver in bad weather.

The good news though, is that talks are underway regarding the approval of developing a variety of dense residential options to help alleviate some of the housing pinch here in town. The proposal is for phase 3, but that means there’s another phase to come and that’s great news! Not only are they proposing to maximize the number of units in order to provide housing to as many residents as possible, but planners are paying attention to the terrain in relation to aesthetics in order to create an attractive street view to the properties that will really be an asset to the landscape of Los Alamos County.

Ponderosa Estates is just one of several upcoming new construction developments here in Los Alamos. That means even if you’re not ready to sign on the dotted line for your new home right this second, there’s a good chance that when you are, Los Alamos is going to have a home for you. Give me a call and let’s talk Real Estate in Los Alamos! I love to chat with residents whether they’re coming in or going out. We’re all a part of this community and that makes us neighbors in this unique place!

« Older posts