Newsletter
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What’s Inside? The holiday season is just around the corner, and with it comes the natural embrace of celebratory activities and the realization that in spite of personal and global challenges we are all experiencing—no matter the level of significance—most of us have much to be thankful for. Beyond the festive mood that this time of year always brings, there are also several other reasons for celebration as a result of changing circumstances within the economy. As I am writing this column, I can report the following “good news” items that might give all of us a bit of an additional lift:
Now, to be sure—and as I wrote last month—we are still far from seeing a return to the way the real estate market was a few short years ago. And until national unemployment stops its climb, and home foreclosures slow, a full celebration of better times is still a ways off. At the same time, the statistics outlined above, combined with the fact that Santa Fe—thankfully—is in better shape than many other parts of our country, translates into optimism that perhaps can make our holiday celebrations just a bit more joyous…and hopeful. This month’s article contributors offer some useful, thoughtful and timely commentary (we also provide a little pre-holiday tease in our Arts & Culture column, just to help get you in the mood). We are also launching a new statistical 30-day overview of the Santa Fe real estate market, which will be a standard feature in all future newsletter editions. As always, I want to thank Kate, Jane, Brittney and Susan for their focused efforts in designing a publication we hope you enjoy and share with your own circle of friends. We also invite you to share your thoughts with any of us about the content or ‘look’ of the newsletter (our contact information is on the back page of this edition). |
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Arts & Culture
There’s a delightful difference about how Santa Feans enjoy their homes during this time of year. We love our simple pleasures. A crackling pinon fire in a fireplace draws us closer to enjoy its warmth and unique fragrance. A cooling rack of fresh-baked biscochitos in the kitchen practically guarantees an impromptu visit from friends or neighbors. It’s true—what we enjoy about the holidays, our homes make even better. No matter the holiday, gifts play a special part in our observance of most rituals. Thankfully, Santa Fe museums have the answer to simplify our ideas for gift giving. It doesn’t matter whether you’re shopping for a hostess gift, or a treasure for a loved one—you’ll find what you’re searching for at the museum shops. Jewelry, rugs, shawls, toys, furniture, pottery, beads, hand-blown glass ornaments, books, art, CDs/DVDs and calendars are all candidates for exceptional, simple gifts this year. It’s impossible to do justice to the offerings available at these remarkable gift shops, but it’s easy to know that the perfect gift for any budget awaits your selection. From simple to sublime—it’s your choice, either in person or online: www.newmexicocreates.org Or, try a participatory gift! Treat yourself to a cooking class prior to the holidays. Santa Fe’s Johnny Vee, hosts sensational hands-on cooking classes at Las Cosas located in DeVargas Mall. Who can argue with a chance to indulge in yummy food and laughs while you learn: www.lascosascooking.com. And don’t forget the Santa Fe School of Cooking and Market on San Francisco St. Go there to become professional at preparing traditional southwestern dishes such as green chile chicken enchiladas, posole and capirotada (bread pudding):www.santafeschoolofcooking.com. You might end up purchasing your own tortilla press! |
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Tip of the Month
The northern New Mexican landscape is diverse and appropriately labeled ‘enchanting’. What exactly makes it so is hard to put a finger on. A few features that come to mind: the red glow of the sunsets upon the Sangre de Cristo Mountains, the ocean of blue sky, the smell of pinon and juniper forests after an afternoon rain shower, or the thousand shades of yellows and browns that make up the backdrop for Rocky Mountain pentstemons, desert four o’ clocks, marigolds and other semi-arid spectacles. Through conscious observation of how water flows across a landscape, where richer soils are deposited and beneficial plant selection sustained, it is the task of regional landscape companies to learn from nature’s wisdom. EcoScapes aims to sustain ecological integrity with the use of appropriate plantings and water conserving techniques. Efforts in retaining the diversity of our community go beyond individual landscapes and into the cultural makeup of the area, which arguably contributes equally to the enchanting qualities of New Mexico. We understand that collectively we are responsible for maintaining the splendor that attracts us all to the area, and that our younger generation must also feel connected in order to preserve it in the future. EcoScapes works within schools, focusing on the principles of water harvesting, and integrating with the local momentum of school gardens. We strive to enhance awareness of interconnectivity so that our community’s youth and businesses understand concepts of ecological health; our landscape installations are explicit examples of the enchanting possibilities of biomimicry. |
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Need to Know A home inspection is an unbiased third-party assessment of the home’s condition. Inspectors check What are the responsibilities of a home inspector?
What should you look for when hiring an inspector?
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State of the Market The US Department of Agriculture’s GUARANTEED RURAL HOUSING (GRH) is a little-known loan program which was established to assist borrowers to purchase or refinance rural housing. With a dearth of alternatives to plain-vanilla loan programs, it’s worthwhile taking a harder look at GRH, especially since much of Santa Fe County is considered “rural”.
GRH will allow financing up to 100% of the purchase price at reasonable rates (about .5% above conforming loan rates). It will accept a FICO (credit) score as low as 600 (vs. FHA/VA which is now 640). And, there is NO mortgage insurance. There is a funding fee of 2% (vs. FHA at 1.75%), but the program will include this in the financing which raises the maximum LTV (“loan-to-value”) to 102%. GRH has somewhat looser guidelines than FHA. It does NOT require any reserves and may not require that collection accounts be paid off. It may be used for repairs needed to make property structurally sound, and 100% of repairs can be financed based on as-improved value. It can only be used for a primary home and limited to family income of less than $75,900. Bottom line: the GRH loan program is a good alternative to consider for the right borrower who lives in a rural setting. |
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Insurance Q&A Q. Identity theft comes in many forms including medical, credit and financial. What’s a person to do in dealing with these challenges? A. Reduce access to our personal information. If asked for your social security number, always inquire as to why it’s needed and how it will be protected. Never put your social security number on websites or give it to someone over the phone. Also, eliminate, or at a minimum, reduce unwanted credit card solicitations. You can register on the national do not call registry at www.donotcall.gov/register. To limit direct marketing efforts you can go to www.dmachoice.org. Q. How should one handle junk e-mails requesting personal information? A. “Phishing” is a technique used by cyber-criminals to solicit personal data by sending what appears to be a legitimate e-mail request from a recognized source, like a bank, or credit card company. Be suspicious of any e-mail requesting personal information even if the sender is familiar. When in doubt, call. Don’t use the number contained in the e-mail, use the phone number from your last statement. Never fill out forms contained in an e-mail message or pop-ups even if they appear to be from a known company. E-mail messages with misspellings and/or poor grammar are usually good indicators of phishing scams. Q. How about using a paper shredder? A. A paper shredder does reduce the potential for dumpster diving thieves gaining access to your information. If you want to throw away old bank, credit card statements/credit applications and especially convenience checks, you should definitely shred them. Q. What if we suspect, or know identity theft has occurred? A. Contact all of your creditors and close all accounts that have been compromised. Many homeowners’ policies offer some relief from the cost of professional assistance in reestablishing your own credit and identify. This is an inexpensive and sometimes free coverage on your policy. Report the fraud to the three major credit bureaus: Experian, Equifax and TransUnion. By asking them to flag your account with fraud alerts, they are required to notify you prior to opening any new account. And pursue the most basic prevention: check your credit report annually. |
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Title Insurance News A common question in real estate transactions is: “Who gets to choose the title company for closing?” While common custom often drives the answer in individual markets, federal law also has something to say in the matter. The Real Estate Settlement and Producers Act (RESPA) addresses this issue in Section 9 of the statute. Specifically, RESPA says that, “No seller of property… shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.” The intent of that language seems to be that the buyer (the insured) would get to make the selection of title company. In the industry, we often refer to this as ‘letting the benefitted party’ select. That would be the insured, the buyer. Upon closer examination, the wording perhaps indicates that the buyer would have the choice provided the buyer pays for the insurance. In Santa Fe, title insurance (or at least the owner’s policy of insurance which benefits the buyer) is typically paid for by the seller. Which would indicate the seller can choose, provided the seller does not make it a condition of sale. The penalties under Section 9 are, ”Any seller who violates the provision of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.” The choice of title company is just one of many items for negotiation in the purchase agreement. The parties are wise to honor the statute as well as historical precedence. In either event, choose a title company that is technically competent to handle the transaction and offers the financial wherewithal to back up their title policies. |
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Legal Topic of the Month
However, a buyer of a newly constructed home also needs to be careful. It’s easy to be lulled into thinking that—like a new car with a warranty—a buyer can be casual in inspecting the condition of a new home, especially if a warranty is involved. The fact is, a warranty is only as good as the company giving it, so it’s important to check out the contractor who built the home, and is providing the warranty. Confirm that the contractor is licensed by the New Mexico Construction Industries Division. The Division issues licenses to contractors who have passed a test for competency in the construction trade, including knowledge of building codes. Also, confirm that a ‘certificate of occupancy’ has been issued by the local building inspection authority for the home being bought. Issuance of this certificate means that the construction has passed inspections required by the authority, has met building code requirements and is ready to be occupied. In addition, a buyer should always carefully review the terms and limitations of the contractor’s warranty. Contrary to popular belief, there is no New Mexico law requiring that a contractor give a one-year warranty on a newly constructed home. Finally, there is the issue of mechanics liens—otherwise known as contractor liens. Such liens can be filed against the home, if construction was completed within 120 days of its purchase and contractor bills have not been paid. Title insurance is available to insure against mechanics liens being filed after closing. Buying a newly constructed home is an exciting experience. But to keep it positive, a buyer should consider a certain amount of due diligence and investigation. |
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Real Estate by the Numbers This monthly article will provide information on sales in Santa Fe and the surrounding areas. Included in this monthly update are statistics regarding residential single family home sales from September 26 to October 26, 2009.
There were a total of 48 home sales during this period, ranging in price from $150,000 to $2,675,000. 12 (or 1/4) of the sales were of homes sold in the $250,000 to $350,000 range, and 6 (or 1/8) of the sales were of homes priced over $1,000,000. The average sales price was $578,115. 56.3% of the sales were of homes that had been on the market for over 120 days. Only 2.1% of the homes sold in less than 30 days.
Another important statistic is the average percentage of sales to list price which ranged from 86.9% to 98.7% dependent on days on the market. |
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Featured Property
Your dreamhouse is almost finished. Perched high on a hill with views of city lights and mountains, this home is less than 5 minutes from downtown. The 3,900 sf floorplan includes 3 bedrooms and a bonus room which could be used as an office, gym, or studio. |
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It’s that time. After a summer vigorously pursuing outdoor activities, Santa Feans look forward to the rituals associated with the upcoming holidays. Thanksgiving, Hanukkah, and Christmas are festivities that grant us permission to decorate, entertain and reconnect to relationships in a closer, more intimate manner. During this time our homes truly become our nests where we comfortably recharge.
Obviously, one man’s farm is another man’s estate, but the guidelines do provide advantages for properties located in Eldorado south as well as most of Santa Fe County, north of Tesuque. The demarcation lines are a bit fuzzy but if “it looks like a farm, smells like a farm, it might actually be a farm,” and financeable under this program.
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