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Hope, Inspiration, and a Bit of Love
February 2010 is offering a healthy dose of inspiration, some signs of hope and a dash of love (on top of whatever romantic notions we might have enjoyed—thank you very much!—on Valentine’s Day).
We started the month with the inspiring Super Bowl win by the National Football League’s New Orleans Saints. The desire of the nation to share in this city’s much-deserved grid iron victory was evidenced in the record-breaking TV viewership the game enjoyed. At least for a few hours, all of us could temporarily put our own problems aside and join the people of New Orleans in relishing a come from behind success story. Perhaps in a small but important way, the contest’s outcome helped all of us feel a little better about our own future.
The driven perseverance demonstrated by so many athletes competing—sometimes in physical pain and beyond all odds—at the Winter Olympics in Vancouver, can offer us an additional source of inspiration when facing today’s economic uncertainty and how that translates into our own day-to-day challenges. Unfortunately, the roller coaster ride the stock market has taken of late combined with the nation’s persistently steady unemployment rate (irrespective of the temporary decline in January to 9.7 percent from 10 percent), have contributed to Americans’ continued uneasiness about the future. In spite of the success in job creation via the Federal government’s one-year old economic stimulus package, as our President stated in mid-February: “…with millions out of work, it doesn’t yet feel like much of a recovery.”
The good news, however, is that February is indeed dishing up some real hope in the direction of a sustained recovery:
And in the category of “love,” we can’t forget that the Federal government has shared a little bit of it with first-time homebuyers via the $8,000 tax credit. In addition—for those who qualify—securing a mortgage at interest rates that are still at levels not seen since the 1970’s is a February valentine that is hard not to love. But remember, all this affection is fleeting—the tax credits expire in April and interest rates could begin to rise at the same time when the Federal Reserve stops buying the mortgage-backed securities that have kept them low for the past year. If you are a buyer who needs or wants to purchase a new home, now is the time to act.
Economists George Akerlof and Rachel Kranton argue in their soon to be published book, Identity Economics, that an economy works well when people personally identify with it, so that their self- esteem is tied up with its activities. In a recent column in the New York Times, Yale economics professor Robert Shiller observes that solutions for the economy must address not only the financial structural issues, but also the problems identified by authors Akelof and Kranton and found in the hearts and minds of people.
So perhaps February’s sprinkling of hope, inspiration and love can help a little with these heart and mind issues and continue to move us forward towards better economic times.
This month’s article contributors offer some useful commentary on a variety of real estate issues. If you wish to follow-up with any of these writers, their contact information can be found under the “Contributors” column. As always, Kate, Jane and Susan have designed and produced a marvelous publication.
So, until next month, I wish you good luck and fortune in “ALL THINGS REAL ESTATE.”
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Homebuilding & Development  As we roll into a new decade with ever changing housing and financial markets, it’s important to understand current trends to keep up with trends in home sales. The direction in construction is clear. People want smaller “greener” homes. As our society has become more casual, with more people working from home, buyers are looking for bright, open, relaxing and efficient spaces.
The days of ‘McMansions’ are behind us. If you are considering building or remodeling, you may want to focus on an open floor plan with a large and more social kitchen. In addition, a home office/den seems to have replaced a formal dining room in terms of priority. An oversized, pampering, master bathroom remains a popular luxury.
“Green” is the operable word in construction just as it is in most other industries. The city of Santa Fe has adopted the HERS building standards, which currently apply only to new construction, not additions. HERS is an acronym for Housing Energy Rating System. This new standard is designed to promote green building codes within the city limits and it could add time and expense to the building experience; however it will also increase the efficiency of our homes. If you are looking to update a current home to make it more energy efficient, we suggest you consider replacing old windows/doors, adding solar panels, updating to energy efficient appliances and a hot water heater, or investing in a water catchment system for your garden. | |||||||||
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State of the Market As the first time homebuyer Federal tax credit is scheduled to expire at the end of April, I think that we should take another look at the perfect storm in home buying.
We have now a combination of the lowest mortgage rates since the mid-1970’s, along with home prices in Santa Fe that we haven’t seen since 2004, bundled together with an $8,000 “present” from the Federal government. What could be a more compelling message to buyers?
Let’s look at a $225,000 purchase as a model. Using an FHA loan which requires 3.5% down payment, the resulting mortgage payment will be approximately $1,448/month. However, 3.5% of $225,000 is $7,875, which is interesting because FHA has a program which will allow the buyer to use the $8,000 Federal tax credit as a down payment. Assuming that the seller will pay closing costs, the buyer could actually get into the home with very little cash (no more than prepaid interest, tax and insurance).
Looking at the rent versus buy equation and taking into account the tax deductibility of the mortgage payment instead of non-deductible rent, we find that the payment of $1,448/month will actually feel like $1,100/month when compared to comparable rent. And, the buyer has the obvious benefit of property appreciation and a fixed cost for 30-years.
So, if you are a buyer who needs or wants to purchase a home, now IS the time to act for one of the best deals to come along in a very long time.
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Legal Topic of the Month The New Mexico owner-resident relations act governs interactions between landlords and tenants and is designed to simplify and clarify the rights and obligations of both parties.
The act requires that a landlord provides a written lease agreement to each tenant before the lease term begins.
Since this document can be the most important aspect of the landlord/tenant relationship, having a well-drafted agreement can save a lot of heartache and financial loss in the long term.
Many landlords prefer to use a pre-printed lease, so make sure that all blank spaces on the form are filled in or marked “not applicable.” Also, both parties need to initial any hand-written changes on the form, and the agreement should be carefully reviewed to confirm that it meets the particular circumstances affecting the property.
As a tenant, you should not hesitate to request your landlord to clarify any lease provision, or revise the agreement to meet the specific requirements of the property.
After the lease term begins, any alterations to the terms of the lease agreement—even verbal ones—should be done so in writing and signed by both parties.
Without a written agreement, both parties will be at a disadvantage when the lease term ends.
Some key provisions in a lease agreement include:
The law also requires that a landlord comply with housing codes affecting health and safety, as well as make appliance repairs, supply running/hot water and heat and keep the property and the common areas of the property in a safe condition.
Under the law, a tenant must comply with housing codes affecting health and safety, not disturb neighbors’ peaceful enjoyment of their own property and at the end of the term, return the premises to the owner in as clean a condition as when the lease began, except for ordinary wear and tear.
As is the case in any legal relationship, disputes can arise, so landlords and tenants need to make sure they are aware of their legal rights and obligations before taking any action.
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Real Estate by the Numbers By Stephanie Yoder, Associate Broker, Santa Fe Realty Partners
The following information has been compiled to provide you with updated information on sales in Santa Fe and the surrounding areas from January 1, 2010 to January 31, 2010. Included are statistics for all residential home sales including single family homes, condos and town homes.
 There were a total of 70 home sales during this time period ranging in price from $90,000 to $1,590,000. There were 30 fewer homes sales in January than in December 2009—the decrease being very typical for this time of year.The average sales price was $434,489 compared to the average sales price of $444,350 in December 2009. Homes sold for an average of 95.6% of list price as compared to 92.49% last month.  The average number of days on the market was 169, which is a decrease in Days on Market from the previous month (197). 57.1% of the homes sold have been on the market over 120 days.34 of the homes sold were priced under $350,000. 17 of the sales were of homes $350,000 to $500,000. 16 of the sales were of homes $500,000 to $1,000,000 and 3 of the sales were of homes priced over $1,000,000. | |||||||||
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Featured Property  Modern practical luxury 1, 2, and 3 bedroom chalets in the new Kachina Village at Mid Mountain in Taos Ski Valley. Finalist for Best Boutique Hotel 2009: Interior Design Magazine. Full hospitality services and property management available through the Bavarian Lodge. Furnished and Accessorized.
Starting in the $400,000s | |||||||||
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Discounts By Robin Schritter, Regional Vice President HUB International (An Interview with Managing Editor Rey Post) Q. What suggestions do you have for our readers when it comes to saving money on insurance coverage? A. My best advice is to make sure you aren’t being “penny-wise and pound-foolish” when it comes to having adequate insurance coverage.
There are, however, a few ways to economize on costs. For instance, when it comes to your auto policy, you could consider increasing the deductible. Most common deductibles are $250 for comprehensive and $500 for collision. You can consider increasing the former to $500, and the latter to $750. Remember, however, in the event of a claim, the deductible you carry on your auto insurance is the amount you will have to pay the repair shop when you pick-up your vehicle. If you are a senior driver, you may also be able to save money on your auto insurance via discounts on defensive driving courses. Also, good student credits on insurance apply to kids who are 16 years old, are junior’s in high school and have a 3.0 grade point average. Q. How about cost-saving measures when you “package” your insurance policies? A. Absolutley! When you carry more than one policy with the same insurance company, you may be able to receive an additional discount.
Also, how you pay your insurance can also save money. Consider having an automatic draft from your checking account to pay for policy premiums. Or for a double bonus, have your payment charged monthly to your credit card and receive not only a discount, but you might also benefit from credit card mileage points, or cash back rewards. Q. What homeowner insurance cost-savings can you recommend? A. I recommend that your readers re-visit the deductible option on their home insurance policy. If you’ve had the same policy for a number of years, you may have a very low deductible like $250, and you’re paying an added premium for that low deductible. Consider raising the deductible to $500, $1,000, or even $2,500.
Remember, in the event of a claim, your payment from your insurance company would be reduced by the deductible amount and you would be paid the difference. You may also discover that your home insurance policy offers some special coverages. For example, your insurance company may offer longevity discounts for being insured with them continuously for a number of years, and for being loss free. Q. Any final thoughts on ways to save money with your insurance policies? A. The best time to shop for your insurance is when your record is clean. This means no accidents, or tickets for any driver in at least the last three years. Also look for policies with annual renewal terms, and then you can lock in that good rate for a year, instead of just for six months. | |||||||||
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Interior Design Today  Hard to believe that spring is just around the corner, but here are my “Top Ten” suggestions for transforming or refreshing your home as we approach a new season:
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Broker's Corner The answer to that headline is “plenty”. In fact, most of what buyers and sellers are paying for is invisible to them if they have selected the right broker. | |||||||||
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Arts & Culture Whether or not you’re a stranger to your kitchen, it’s still the heart of the home. Especially in the winter months, while we’ve watched a seemingly endless supply of snow blanket our homes, we strive to find contentment in the kitchen.
 As 2010 progresses, I’ve become more aware of the food that enters my kitchen. With the Santa Fe Farmer’s Market moving into their new home at the Railyard, I’ve frequented and become an instant convert to baby beets, fresh chard, fingerling potatoes, heirloom tomatoes and organic beef. Not only do we have access to the freshest and highest quality locally-grown produce, but often the stories from the growers about a purchase make you realize the love these farmers have for their crops and the people who consume them.
This brings me to share another wonderful secret about our Santa Fe—the Slow Food movement. With over 200 Slow Food chapters across the country, Santa Fe can boast being one of the best.
According to the sponsoring organization, slow food is an idea—a way of living and a way of eating. It is a global, grass roots movement with thousands of members around the world that link the pleasure of food with a commitment to community and the environment. Basically, this organization’s mission is to raise public awareness and improve access to foods that are local, seasonal and sustainably grown.
I’ve had the pleasure of attending a Slow Food dinner where members, growers and chefs prepared a feast fit for kings, served under the canopy of aging cottonwoods on a quiet, starry Santa Fe night. Roasted lamb, fresh vegetable casseroles, cheese plates, artisan breads, Gruet wines, and tart apricot pie were the guests of honor. Our hearty applause after each course was the sincerest expression of love for the local growers and the kind people who prepared the meal.
Try it—your kitchen will never be the same. For more information about the Slow Food movement: www.slowfoodusa.org or http://slowfoodsantafe.blogspot.com/ | |||||||||
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By Al Lucero, Owner, Maria's New Mexican Kitchen
In my previous life, I was a salesman. I sold an intangible: Television advertising.
I bring this up because most of my biggest sales were written on cocktail napkins in a nice bar or restaurant. So, I submit to you that an ideal place to close the deal on a house, whether you are buying or selling, is in a nice bar or restaurant like Maria’s.
People really do relax with a drink (I recommend that you choose a Margarita from our over 160 to choose from). Nice thing is, you can choose a price range that matches the deal: for example, small transaction, enjoy a six-dollar House Margarita; a little bigger, order the six-fifty 100% agave Margarita; multi-million dollar deal, order the Zenyatta at seventy-five bucks, thank you very much!
Or, if it’s the deal of a lifetime, pop for a bottle of Dom. Bet you didn’t know we have an outstanding wine list at Maria’s, did you? We specialize in American wines, mostly California Cabs, and the few imports that we feature are mostly Champagnes and we are noted for the bargain prices on our list.
But, you really don’t have to make it a real estate business meeting to enjoy Maria’s! Just stop by anytime. It’s really great to know that you can count on Maria’s being there for you seven days a week, from lunch time (you really don’t need a drink before noon, anyway) until 10:00 PM.
Maria’s New Mexican Kitchen, 555 Cordova Rd., 505- 983-7929. | |||||||||
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By Chris McLarry, Principal, McLarry Fine Art
The gallery features Western and Southwestern paintings by Xiang Zhang and Chuck Sabatino, also works honoring the cowgirl spirit by Donna Howell-Sickles and watercolors paying tribute to the working cowboy by Mark Kohler.
Regional landscape by Peter Hagen, Donna Clair and David Ballew are exceptional. The vibrant works of Cheri Christensen are sure to catch anyone’s attention. Elegant still life and figurative painting by Johanna Harmon and Lael Weyenberg can also be found.
Wildlife sculpture and monumental bronze by Tim Cherry complements our sculpture garden and the award winning Native American bronze by John Coleman proudly completes our collection.
The gallery is open daily and welcomes all who visit our beautiful city. McLarry Fine Art, 225 Canyon Rd., 505-988-1161
 Xiang Zhang
“Land Rush” H 42” x W 82” Oil on canvas Born in the year of the Horse, Xiang Zhang (pronounced Shong Zang) grew up in China. After graduating from The Central Academy of Drama in Beijing, where he was strongly influenced by the 19th century Russian masters, he received his Masters Degree in Fine Art from Tulane University in New Orleans. While at Tulane, he developed his special style of portraiture work and increasingly cowboy art. Combining impressionistic, as well as realistic techniques, awards in regional and national shows marked him as an artist to watch. The excellent, consistent quality of Zhang’s work has made him one of the most collectible artists in the world. In 2002, he moved to a ranch in Sherman, Texas. Immersed in the local ranching lifestyle, his work reflects the symbiotic relationship between the cowboy and his horse. Using scintillating colors and bravura brushwork to capture the drama of ranching life, his definitive style has catapulted him to new heights in the art world. Xiang Zhang’s paintings hang in private and corporate collections in the United States, Canada, Europe, and China.  John Coleman“The Game of Arrows” H 60.5” x W 26” x D 16” Bronze edition of 12 In this sculpture, John depicts a Mandan archer engaged in “the game of arrow,” an event witnessed by George Catlin in about 1833. He reported that the most distinguished archers by the other archers for entrance fees. It was written that the winner of this particular gathering achieved eight arrows gathered on the prairie, each one having paid an entrance fee such as a shield, robe, or pipe. In turn, they shot their arrows into the air to see who could get the greatest number flying at one time, the winner taking as his prize everything that was brought in flight before the first one struck the ground. John Coleman is one of the leading sculptors today who portrays the historical nature and mythology of western subjects. John Coleman’s award-winning bronze sculptures are among some of the most detailed and most accurate depictions of American Western legend and history that are being produced today.  Donna Howell-Sickles “Campfire Girls” H 50” x W 70” Acrylic on canvas In the Western art genre, Donna Howell-Sickles has taken the image and idea of the cowgirl beyond charcoal lines and into reality. Howell-Sickles has been exploring the layers beneath the cowgirl’s engaging exterior for more than 30 years. A vintage postcard from the 1930’s featuring a cowgirl with ruby red lips sitting atop her horse instilled in Howell-Sickles a lasting fascination with the cowgirl spirit. The cowgirl in the postcard was at once both familiar and unreal. This dichotomy in the imagery has fueled Howell-Sickles’ artwork, and inspired her to create images of women that are both real and myth. Howell-Sickles’ artwork captures the quintessence and timelessness of the cowgirl spirit. Donna Howell-Sickles was recently inducted to the National Cowgirl Museum & Hall of Fame in recognition of her work with imagery celebrating the cowgirl.
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