Kendra Ruminer's Two Cents of Real Estate

Take A Peek At Los Alamos, New Mexico

Tag: Real Estate Tips (Page 3 of 3)

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…

Some Thoughts About Relo Companies

September 24, 2020 /

There is no doubt about it. Moving is stressful. Whether you’re hung up on the current home you’re trying to sell, the one you’re trying to move into, or the temporary housing situation between the two. Add in a job change and you’re probably ready to throw up your hands!

This is why the “Relocation Package” is such a thing. Not just a thing, but a thing that is spoken about in an almost hushed tone of reverence when people talk about job changes or moving from city to city.

“What’s that? Your company offered a… (wait for it) RELOCATION PACKAGE?”

A relocation package can be a wonderful and helpful opportunity for anyone who is moving. Moving is a stressful time. If you’re moving to Los Alamos to work for LANL, you will typically find that LANL relocation has one of the most competitive packages out there. Depending upon the package, it can include closing costs, moving costs, two months of temporary housing, and sometimes it includes a reimbursement of closing costs on your previous home. Typically, you do have the responsibility of selling your previous house and depending upon your employment situation (LANL employee or contractor) these offerings can vary widely and might even include the cost of storing the bulk of your household goods while you find a new home.

No matter if you’re getting one or all of these incentives, it can amount to thousands of dollars in assistance with your move. For families coming into the Los Alamos County housing market, this can be especially helpful. Navigating the housing market here in Los Alamos can be tricky. A relocation package can help mitigate some of the financial burden while you’re doing your best to settle into temporary housing, get the kids into a new routine with schools, and maybe even search for a new home into the bargain.

When You’re Leaving Los Alamos

Whether you’re a contractor or a LANL employee going elsewhere, there is one really important thing to think about if you’re considering the perks of a relocation package. First of all, while LANL typically handles their own relocations, many companies contract those services through a third party. A Relo Company. Make sure you are fully aware of who is going to be handling your move when you negotiate your relocation package with your employer. The services can vary, but you don’t always have a choice when it comes to who is calling the shots. Sure. Packing, moving, travel, and temporary housing reimbursement are never a bad idea, but you might want to rethink that “buy out” option when you’re leaving Los Alamos. Because?

Houses in Los Alamos County are selling quickly.

Now. This is RIGHT NOW. In our current market as things stand right now, it doesn’t take a long time for a home for sale to go under contract. This means you might want to hold off on the buy out offer. There is a good chance that you will get more cash in your pocket from selling your current Los Alamos home the old fashioned way. In my more recent experience, I’ve had homes go under contract before the relo company can even get the paperwork completed. In a few cases, the relo package was changed mid stream and my clients would have had less hassle just selling their home in the traditional way and letting the company pay for the move.

The truth is that a relocation home buy out is really designed for a sluggish market and not an active one. If the market in our community changes, (as it has been known to do in the past), then the buy out might once again become a really great opportunity for those leaving the community.

Still like the idea of a buyout? There are likely a few paragraphs worth of small print you should really pay attention to before agreeing to a buy out. Make certain you fully understand what your responsibility is as far as repairs to your home prior to the buy out. Even newer homes will have a surprising number of small repairs crop up on an inspection. It’s likely that you’ll be expected to fix that list before the deal can close and you can move on. This can affect the amount of money in your pocket. Sometimes your company will offer to reimburse you for these expenses, but that can also take time. Know exactly what you’re responsible for and what perks you’ll be getting in return.

How do Realtors Feel About Relo Companies?

I love anything that helps my clients. But I will tell you that from a Realtor’s perspective, a relocation company isn’t necessarily our best friend. For one thing, they require a Realtor to pay 35%-42% of our commission to them as a fee. And that doesn’t guarantee that they hold up their end of the bargain either. In some cases, this doesn’t mean that we do less work. In many cases, it can means we do more. Beyond that, when dealing with a relocation company moving you to other areas, be aware that a relocation company will often contract with brokers or agents who aren’t necessarily familiar with an area or neighborhood where you’re looking. Sometimes they’re semi-retired or brand new and in either case it can result in a less than stellar customer service experience.

When considering a moving or relocation package as a whole, you might want to look at the projected expenses of your move and ask your company for a lump sum option. This can be a great way to come out ahead while also making sure that you choose your travel methods, your Realtor, your packing and moving company, and might even save you some cash.

At the end of the day, I want what’s best for my clients. Buying and selling a home, and then moving, is a big event! If you have any questions, please don’t hesitate to reach out and call! If you’re considering a relo package or if you’re trying to do it on your own, I’d be happy to talk resources, logistics, and of course, property!

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!

Let’s Get Real: Wire Fraud is a Thing

August 5, 2020 /

You’ve found the house of your dreams. You’ve made your offer. The offer has been accepted and you’ve been working with the lender who did the pre-approval on your loan. Now it’s down to the homestretch and you’re so excited you’re on edge just waiting for that closing date. Then you get an email from the title company telling you that you need to wire them your down payment and closing costs RIGHT NOW! If you wait even a millisecond, you’re going to lose this house!

What next? I’ll tell you what next. STOP! Seriously. Put the brakes on and just wait a second. Take a deep breath and call your Realtor! That’s right. Get on the phone and talk to the person who has been walking you through this entire process from the beginning. I can promise your real estate agent absolutely knows whether or not the title company has an urgent need to have your down payment and/or closing costs in hand right this second. Whatever you do, DO NOT wire a single penny without having an in person chat, Zoom call, or phone conversation with your agent, your lender, or your title company representative. Because let me tell you right now, if it feels fishy? It’s totally fishy!

Cases of Wire Fraud in Real Estate Are On the Rise!

I know, you’re probably thinking to yourself that this is Los Alamos. But I can assure you that I have had clients here in town who have been victims of wire fraud. In the case of my clients, they had enough savvy to question some of the information in the email. Once we realized what was happening, the phishers were denied their loot. But there have been other buyers who were not so fortunate. Imagine losing over a hundred thousand dollars with no way to get it back because your money just took a trip to Sri Lanka. Not cool!

How It Works

The entire scam is based upon a method you’re probably already familiar with. Phishing. A process that hackers use to snag personal information from the inboxes of professionals like real estate agents, lenders, and title company representatives. This information usually includes a buyer’s name, address, pertinent financial info, and even some pretty accurate numbers from their anticipated closing costs. It could even include the down payment amount they’re supposed to bring to the closing table.

Once the hacker has this important and personal information, they use “spoofing” techniques to build an email or even a phone number that looks absolutely legit. They pose as your lender or your agent, even going so far as to get a semi accurate signature to convince the buyer that this is a legitimate request.

In the case of wire fraud, an ounce of prevention is worth thousands of your hard earned dollars. Here are a few ways to protect yourself:

If you have already initiated a wire transfer, then time is running out. Contact your financial institution immediately. Generally speaking, there is a very small window of time when the transfer can be recalled. Don’t forget to tell your bank that you’ve been a victim of wire fraud. It may encourage them to do everything they can to recall that transaction.

Contact the FBI’s cyber crimes department and give them the details of your situation. Be aware though, these transactions are not insured. There is really no way to get your money back. It is simply gone. That is why it is SO important to prevent this from happening to you!

Prevent Wire Fraud by putting as little financial information into an email as possible. Talk in person (masked of course!). Use the phone. Use Zoom if you’re purchasing a home and you’re not already in the local area. Be free with your questions. Never be afraid to call your lender, your title company representative, and especially your Realtor! If something feels wrong, it probably is!

If you do get a request from someone claiming to be one of your trusted professionals, don’t click on anything in that email. If it’s a strange phone call, hang up. Then initiate contact from your end on purpose! Call your Realtor. Call your lender. Speak to a legitimate source and explain what’s happening. These are the same things that you should already be doing if you get a message from Paypal telling you that your account has been locked and please enter your personal information to unlock it. If the problem or the request really exists, then it will STILL exist when YOU contact them to discuss or resolve it!

Take your future by the horns and don’t let anyone try to snatch it from you. And as always, if you have questions or concerns, CALL ME! I’d love to give you more information.

Surprise! You Bought A Home.

July 22, 2020 /

You’ve just purchased the home of your dreams in Los Alamos County. You’ve never been so excited about the prospect of moving. Break out the champagne and celebrate, right?

Welcome Home To Your New Space!

Now. Let me be the first to congratulate you. You’re absolutely right. Finding a home to purchase in our community is a whirlwind ride all on its own and that doesn’t begin to cover the step by step process of actually purchasing this new living space. So, yes. CONGRATULATIONS! But while we enjoy that champagne, let’s talk details shall we?

Let me be frank. There are a few hidden costs associated with purchasing a home. I know. I can hear you right now. “Kendra,” you say. “Believe me! I’ve already gone through multiple inspections. I’ve paid insurance premiums and set up an escrow account with my lender. I have this in the bag!”

Right. The details about closing costs were probably a surprise if you’re a first time homebuyer. I always try to walk my buyers through the entire process and keep them aware that these things are coming. But there are just a few more things to talk about. And honestly, they CAN be pretty fun. After all, who doesn’t like the part where you move in and make this new house your home?

Remember That First Walkthrough?

No. Not the walk through that happens just before closing. Although, if your new home was professionally staged when you first decided to purchase it, that last walkthrough might have been a bit of an eye opener if the place was bare boards and stark walls. That was the moment you got to actually picture your things inside the house. How did it look? Don’t worry. There are plenty of ways to make this new space feel like your home.

Now, go back to the very FIRST time you saw this home. For those of you who have already purchased or those considering selling and moving into another home, keep in mind that in this Covid-19 market, many of these walkthroughs are taking place virtually. There are so many home buyers who have NEVER physically been inside the new home they’re purchasing before they’ve got the keys in their hand and the mortgage payment coupon in their mailbox.

Stop for just a moment. The Los Alamos market is unlike anywhere else. The good news is that you’ve got your house! Love that! Give yourself permission to be thrilled with that! And remember that the rest is just cosmetic. Even if its quite possible that your new house hasn’t been updated since the seventies, who cares? This is your chance to make this house YOURS. Keep in mind that in other cities you might be peeling off the nineties, the eighties, and the seventies before putting your stamp on it. A few less layers can be a good thing!

Remember all of those improvements you knew needed to be made on this home before you became convinced that this was the ONE? There’s nothing wrong with some can do DIY attitude. But now that you’ve come through the home buying process, I don’t want some of the basic foundation stones for actually LIVING in your home to get lost in the shuffle.

Start Small

Yes. Small. As in, blinds or shades, or some kind of window coverings. You need to be able to cover your windows for privacy and also, in a bigger way, to maximize heating and cooling. So many homes in our area are lacking in modern double paned windows. I can think of a few homes that are missing screens on the windows, much less blinds. And we’re talking trading pretty for functional right now. Start with examining all of the blinds or shades in your new home. Count them, measure them, and then start looking for good deals on decent window coverings. You’ll be surprised how quickly the cost grows. But, you’ll also be thankful you handled this small task when that brutal summer sun starts creeping into your home and sending the temperature toward the roof. Good blinds can save plenty of pennies in cooling costs. And those are the pennies you’ll use to improve your new home in other exciting ways!

It may take a while for your new house to look like a real homey haven.

Now, The Kitchen

No. Don’t look at the cabinets. That’s a project you’ll be tackling soon enough. What I would suggest instead, is to look at the appliances. Check them for functionality. Does the refrigerator actually keep things cold? Does it freeze your produce solid? Does the dishwasher clean the dishes, or does it recycle your food leavings before flinging them back onto the plates and glasses? Does that snazzy built in microwave work? How about the oven? Did the house come with a washer and dryer? Do they get the job done or are you looking for a clothesline to finish your dry cycle outdoors?

Appliances are a vital part of our lives. Modern families are hard to manage without these work reducing beauties. But, as with everything else in a home, there is a decision that has to be made here. Is now the time to replace them or not? Do not let the avocado green or brilliant red or goldenrod yellow color of these make your decision for you. If an ancient refrigerator does its job and does not require you to call a repairman every day, then bump it down the priority list. If you’re dreading the purchase of the new fridge with its $3300 price tag, don’t let that keep you from replacing an older model that is costing you an extra $100 or $200 per month in electric and repairs. Think energy efficient and prioritize your list of renovations. Then assess each appliance with the decisiveness of a general making strategic battle plans. And by the way, take your time and enjoy making this space all yours!

Plumbing

Next, let’s take a look at the bathrooms and every faucet in your new home. Are the toilets making weird noises? Do the faucets drip? Does the shower head hit everything BUT your hair? Replace or repair these little things. The cost of doing them all at once may take more of your budget than you’d like. But making sure that you’re not increasing your water bill or driving yourself insane every time you take a shower is a must. And speaking of shower, you might want to replace the shower curtains or doors depending on how that door track looks. And what about the toilet seat? A new seat can refresh the toilets in your home in ways you probably never imagined possible.

Make sure the bathrooms in your new home are liveable.

This community is unlike anywhere else. We love living here. We love the fact that our homes are unique and sometimes dated. Okay. Maybe we don’t LOVE the dated part. But you’re going to do something amazing with that space. I know you will. Until then, remember that its about functionality, energy efficiency, and not draining your bank account penny by penny each month. Making sure your home is your refuge even while you’re rehabbing your heart out to make it the haven of your dreams will make the DIY rehab project that much more fulfilling.

Ready to Make a Move? Call or Email Kendra Today!

Using Zillow Responsibly…

July 15, 2020 /

Is there anyone left on this planet who has NOT heard of Zillow? Okay. Maybe planet is a pushing it. Is there anyone in the United States who has not clicked their way around Zillow taking a peek at the housing market in their area? Whether you’re an enthusiastic Zillow user or not, let me give you three tips for using Zillow responsibly in the Los Alamos County real estate market.

Tip # 1 – Pre-Foreclosure Homes Are Not Actually For Sale

That’s something I get a lot of in the real estate business. Especially here in Los Alamos where homes come on and go off the market with a record low number of days on market. I get calls from excited clients who just saw something perfect pop up on Zillow as “pre-foreclosure”. They want to hop in their car and go look at this fantastic property. They’re ready to make an offer! This is the home of their dreams.

Except… Pre-foreclosure is just a term that comes from a homeowner getting slightly behind on their mortgage payments. When this happens, the lender has a legal obligation to file a public notice. It’s an attempt – an early attempt – to collect on a debt. There are a whole lot of steps between public notice and actual foreclosure. In the meantime, the house is NOT on the market. You CANNOT go and take a peek at it. It’s still someone else’s home. No wonder it’s perfect for your family, right?

Tip # 2 – Just Because Zillow Suggests a Home Value, Doesn’t Make It So

This goes back to tip number one. Zillow is a database that gets information from public records. Even on their website they tell you this. Hence the public notice that results in a pre-foreclosure listing on Zillow. But this is where home valuation gets really tricky. New Mexico is a non-disclosure state. That means our home values are not made public record. 

Not that this actually slows Zillow down. The database is filled with what they refer to as “zestimates”. Basically, Zillow has algorithms that come up with what a computer estimates to be the best possible guess for a home’s value. But that isn’t necessarily based on recent sales prices.  A homeowner can go in and input the value of their home, but that’s up to the homeowner. As a realtor I would never make that information public.

Tip # 3 – Don’t Believe Everything Zillow Has to Say About Mortgages

This is not to say that the mortgage calculator on Zillow is wrong. It’s not. It’s actually a very useful tool. Zillow has multiple tools to help you figure out what it might cost to own the home of your dreams. Insurance, HOA fees, mortgage, mortgage insurance, they’ve got a little line item for everything. What I ask people to keep in mind is that this is all perfect world thinking. And no. I don’t believe that the word “perfect” applies to anyone trying to scrounge up a down payment for the home of their dreams. But what this doesn’t take into account is the actual funding process for purchasing a home. This is a complex process that has a lot of variables Zillow can’t anticipate for you.

This is why you call a Real Estate Agent!

Please. Give me a call. If you’ve got questions about your current home’s value or are looking to sell and get something bigger or downsize to something smaller, talk to an actual human being who will walk you through the realities of this process. Sure. Zillow is useful. I would never say that it isn’t. But please use a common sense approach when surfing the Internet for the home of your dreams. It makes the transition from dream into reality a whole lot smoother!

Call or Email Kendra

Title Insurance 101

July 9, 2020 /

If you’ve ever purchased a home, you’ve heard of title insurance. You’ve probably paid for it. You’ve probably also grumbled a bit about the added cost. But this is only a one time fee. Usually LESS THAN 1% of the purchase price of your home. Of course, that can still feel like a ton of cash to lay out at closing when it’s easy to feel pinched about the cost of purchasing a home.

What is a title anyway? Why do I need someone to guarantee it? The house isn’t going anywhere, right?

Let’s start by talking about what title insurance actually is.

According to The Street, a popular financial blog, “more of a risk prevention than a risk assumption (the model for most insurance policies) form of insurance, title insurance covers the history of the policy-holder’s home, examines the history for any trouble spots that could damage the value of the home, and highlights those potential issues before the buyer purchases the home”.

So what does that really mean? It means that you’re paying a company to research the title of the home you’re purchasing just in case there is something wonky in the history of that property.

Let’s bring that back around to our community of Los Alamos. Think about how many homes were either built, brought here, or somehow fabricated back when the Atomic Energy Commission was still in charge. Think about the chain of owners and banks and lenders and foreclosures and lien releases and… (I really think you get the idea). There are other homes that were damaged and then reconstructed after the Cerro Grande fire.

Now think about the way a mortgage works. Even if a lender only owns a pile of ash, they still want a piece of that pile. And this is before taking into account the homes that pass from one party to the next via a will or some kind of inheritance situation.

  • A home’s title includes:
  • The property abstract (sometimes called a chain of title)
  • A description of any easements or rights of way. (or maybe a note about national forest access)
  • Liens against the property

The title is a public record held in a clerk’s office and is technically available to anyone who is interested. Considering what the title is and how many different things affect it, you might imagine why having a knowledgable and licensed title expert to review the title before you purchase a property is not only a requirement, but a really good idea.

“Okay, so can I just pay for a title INSPECTION?”

Nope, the insurance part comes in when or if you’ve owned your home for five years and some undisclosed heir shows up and claims you’re squatting on his inheritance. Or (a far more common occurrence) when the county does a tax audit and you discover there was an escrow account error ten years ago and the previous homeowner’s lender neglected to pay the property taxes. Yep. Guess who becomes responsible for those back taxes?

That’s right. The current homeowner.

So, next time you’re buying a new home or you’re speaking with someone who is and there is a discussion about closing costs and title companies, and title insurance, feel free to chime in with all you now know about why title insurance is important. After all, nobody wants to be left holding the bag when it comes to an unexpected financial lien against your home. Your home is supposed to be your safe space. Title insurance can make sure that it is fully YOURS.

Newer posts »

© 2024 Kendra Ruminer's Two Cents of Real Estate

Theme by Anders Noren — Up ↑