Kendra Ruminer's Two Cents of Real Estate

Take A Peek At Los Alamos, New Mexico

Tag: White Rock

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.

Could You Quarantine In This Space?

July 1, 2020 /
The Coronavirus Has Changed What Buyers Are Looking For In a House

I think we’ve all come to the honest realization that the world we once lived in is gone. Things have changed. Everything has changed. The way that we hang out with our friends. The way that we hang out with our family… Wait. The way that we ONLY hang out with our family.

All of that togetherness is changing the way people live their lives and the things they value in a home. Let’s look at a few things that are becoming far more important to Average Joe Buyer.

Kitchens

So many times in the past, I’ve seen busy families who purchase homes because of their proximity to a school district or because the bedrooms are big or the garage and driveway has extra slots for the extra cars belonging to a family full of teenagers. Kitchens were useful because they contained conveniences like the toaster over, the microwave, and that mega juicer you just had to have but rarely use.

Now? The lack of restaurant options, especially in small communities like Los Alamos, means that homeowners are using their kitchens in ways they’ve not had to in ages. Even if you’re getting takeout and bringing it home, the kitchen is seeing far more traffic (or the dishwasher is!) than ever before. Suddenly, kitchens matter. Buyers want big eat in kitchens with tons of space, pantries that can handle kids who are no longer eating at school, and up to date appliances. The kitchen has suddenly become important to everyone and not just to a few home gourmets.

Home Office

Telecommuting is the new normal. No doubt about it. And considering the direction things are moving, there’s no doubt that this isn’t likely to change anytime soon. That means the home office has become the most important thing that anyone thinks about. The availability of any space that could be turned into a home office in a pinch has just become your home’s biggest selling point. Have an atrium or a little breakfast nook? Boom! Extra office. Have a spare bedroom? Boom! Instant school room. Yeah. Don’t forget those kiddos. Homes are now doing triple duty. Schoolroom. Workplace. And my personal favorite. Daycare.

Multiple Living Areas

All of a Sudden One Family Room Just Isn’t Enough!

In newer homes in places like Albuquerque, Rio Rancho, and Las Cruces, and even some of the newer housing developments here in Los Alamos County, a second living area or a bonus room is a given. Most of the homes in our community were built long before this was a popular concept. Not that there haven’t been tons of renovations or rehab projects with just that idea in mind, but all of a sudden buyers are VERY interested in homes that boast a second living area. After all, families that live and work together eventually need a break! What a great thing to have a basement or an upstairs loft where you can send the kids to enjoy their screen time while you binge watch Outlander and try to relax from your long day of pretending that you were super productive while working at home in a job that was never designed for a telecommute.

Outdoor Living Spaces

The backyard or side yard in some cases, has become a viable new place to hang out when all of the living space inside becomes either full of kids, or just boring. Patios and decks are suddenly far more attractive to potential buyers than ever before. Want to wow them when they come to view your house? Arrange your outdoor furniture to invite a buyer to imagine lounging after work with a book. Add a barbeque grill and I bet you’ll hook them in a second.

At the end of the day, our lives will never go back to the way that they were. And that means the real estate market – even the one in Los Alamos – is going to have to change too.

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