Looking forward towards investments

As this year comes to an end, many feel that that bottom of this tricky real estate market has been reached or at least can be seen. Whether this is true or not, I don't know.

What I do know is that in our Albuquerque Real Estate market, there are great deals right now. Inventory is high and interest rates are low. History has shown us time and time again that the maximum profits made in Albuquerque Real Estate are best when the buying occurs on the down slop or at the bottom.

By doing this the main mistake made by people in the "2005 era" (which was buy high and, with a little luck sell higher), can be avoided. Buy low, sell high. sound familiar? Luck should not have a place in this equation that several people (including myself) found themselves using.

A couple of great rules were brought to my attention by an amazing colleague of mine in a different part of the country. These rules should be followed when considering an investment property and I felt were worth mentioning.

• Focus on quality properties and areas
• Don't have tunnel vision on foreclosures and certainly not short sales. Some of the best deals are found the traditional way. Basically, Don't "pigeon hole" yourself. Look at all properties that fit the criteria.
• Do your homework. Be sure to factor all things financial whether its taxes, utilities or HOA dues. Have you Realtor help!
• Study the rental history and be conservative when evaluating the cash-flow potential.
• Be sure to work with a Realtor that has your goals and vision in mind. Make sure they are in it just for the sale. Its all about making good financial decisions! 

Albuquerque Homes are an excellent opportunity to create wealth for the future! If you need any help or have questions regarding Albuquerque, Corrales real estate, or Rio Rancho real estate, please don't hesitate to contact us!!

LET'S HAVE A GREAT 2011!!!

Short sales getting better?

So, I recently closed another Albuquerque Real Estate short sale. This one took a good 6 months which, to me, is pretty typical. It was basically 6 months of bank games that were a lot of fun! (can you see the sarcasm dripping from your monitor?) This one went through the lovely Bank of America's "equator" system. This system promises prompt, friendly and I assume honest service. The promptness...6 months isn't exactly ideal. Friendly...Some what. The assigned negotiator did give us his personal cell number because, due to appraisal service, the deal went right down to the wire (I'm talking hours to the wire). Honest...Even after the deal closed the bank wanted an additional $3k and, some how, the escrow officer was able to work around. Not to sure if the ball was dropped some where there be it seemed a bit suspect since it has happened to me once before. I'll let you decide.

I do hear conversations around the office about short sales only lasting 1.5 to 2 months. I guess it really is a learning process. If the listing Realtor knows how to get a hold of a live person and can to get quick responses, these short sales seems to go fairly smooth. It does seem that banks are finally getting better at understanding how these work. The one thing, I have to admit, that I feel uneasy about is that these homes are mainly sold as is. I warn my buyers over and over about this. Inspection costs also fall on the lap of the buyer which can go well above $1k. That's a jagged pill to swallow for me.

So, bottom line. Should you avoid short sales still. I personally don't think so. Just be prepared for some "uncomfortable situations". Your Realtor should be covering EVERY aspect of a short sale and the possible consequences.

I love my job!! ( that was not sarcasm! ;))

Reasons to use an Albuquerque Realtor

I have recently been trying to help a good friend in other state sell his home. He has accepted a job and will be relocating and he has been bombarding me with several questions on how to choose his Realtor and should he try to sell himself. I cannot remember ever being in this type of situation - helping a friend find a Realtor...that wasn't me!

My friend is not necessarily a frugal man but, like everyone, enjoys a good deal so he hit me with his ideas of beating down a Realtor for a commission cut - a.k.a, commisionectomy (because it really does hurt that bad!) or selling the home by owner. I told him that unless I am helping a seller find more Albuquerque Real Estate or have several deals with that person, I do not cut my commission. And if I did, what would that say to the seller? That I will settle for less when it comes to my own money? If a Realtor cared so little about his own money, how much more could that Realtor really care about their clients' money when it comes to negotiating?

Any Realtor can take a commission cut and do the minimum to sell that home and anyone can try to sell their own home, put a sign in the yard and enter it into MLS. That all seems like a great idea on paper, but having expert advice readily available when selling the biggest investment in most people's lives is more than worth the 6% most people agree to pay. Realtors have been around for over 100 years and must be licensed and continually educated and tested during their career.

People don't try to negotiate an accountant's fee. And even if people did do that, do you think that person's tax return is going to be a priority to that accountant? It's worth the extra up front rather than a huge amount later to the IRS.

Here is an example I heard recently: People who go to Ethan Allen know that the furniture in that store is expensive but they also know that it is a quality product. People who shop on Ebay realize that they are taking a chance on the furniture sold by the owners who are only experts in sitting on that couch. These people are willing to take the chance of buying a couch that could have been a dogs bed for 12 years in order to save some money....and then finally end up buying a couch from Ethan Allen. Wouldn't it be better to go with quality service, expert opinion and protection right from the get go? I also believe that this attracts serious, qualified buyers who expect the same quality service rather than attracting those who are not screened (your Realtor should make sure all buyers are qualified with a mortgage professional) and just looking for a quick deal? Just a thought.

I love selling Albuquerque Real Estate!! Thanks for reading!

New 3.8% Tax scare

New tax on home sale profits-

Just to clarify something you may have heard or received in an email about.

There has been talk about a 3.8% tax on any profit made on a home sale which was hidden in the recent health bill. For example, if someone sold their home for $350,000 and, after closing costs, had a profit of $100,000, $3,800 would go to Uncle Sam. As I understand it, this is NOT true. This tax only applies to any one individual making over $200,000 a year (or $250,000 if filed jointly) and only if that profit exceeds $250,000 (or $500,000 if filed jointly). Any profit made after the initial $250,000 will then be hit with the 3.8%.

So, if a single person that makes $201,000 a year sells a piece of Albuquerque Real Estate and walks with $350,000, he/she will have to pay the $3,800 ($350,000 - $250,000 = $100,000 x 3.8% = $3,800). This is how I understand it. If you need further clarification, please consult your CPA.

This all just seems to be another media scare tactic. If you receive any type of email that you find hard to believe, I suggest researching it before you share it with your friends.

Thanks!!

New Purchase Agreements for Albuquerque Home Sales

Be very care when using The New Mexico 2010 revised Residential purchase agreements! Be very, very, careful!

When I came home Friday night I updated my wife about my day. During the course of this particular day I learned about the new purchase agreement that was placed on the state site for immediate use. At lot has changed. This form places the burden of inspections entirely on the purchaser. (Well, that isn't entirely correct, there is a very small area dedicated to Seller paid inspections).

The buyer is now responsible for not only choosing the inspector (that's ok), but paying for the inspection. Nothing is mentioned about setting up the appointments for the inspectors. It causes me to wonder how this all is going to take place! This really needs to be negotiated clearly on an addendum!

My wife, being the intelligent lady she is, pointed out that many in our industry are probably not even aware of the changes to the purchase agreement and that I needed to be aware as well.

If you purchase a home, condo, or Albuquerque foreclosure, be sure to utilize a Realtor that is updated on the new Purchase Agreement. We would love to help you buy real estate in Albuquerque, New Mexico.

I love my job!

From the mouth of my Babe (er…Wife)

I came home from work last night and asked my wife what she thought the most important item to do was when placing a home on the market. My wife is a nurse by profession but right now she is caring for me and our three young children. She has no real estate experience. The first thing on her list was to verify ownership. I thought that was really a good idea so I quickly made a mental note! Then she said she would measure the house to make sure of the size.

The size of a home is important!  Many times the value is based on the heated square footage of the house.

So what should every buyer do? Have someone measure the house or make the seller verify the size before the buyer closes. Most of the time, it costs less than $75 to have this accomplished.

As a seller, adding a scan of the floorplans to the MLS listing might give an extra thought to a buyer looking at Albuquerque homes for sale.

My wife is really smart, good looking, and I really hope she reads this……

Selling real estate in Albuquerque is great!

I love my job!
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Posted by Tim :-)

The Albuquerque Lifestyle

Albuquerque - What a place!

Selling Albuquerque real estate is a wonderful job. But certain times of the year it is really cool! Whenever clients come to town to visit our city and purchase their next home, I like to look around to see what events are occurring that we could see. Obviously the balloon fiesta in October is tops on the list, but all during the summer months there are events happening that are really fun!

The Isotopes play all summer and into the fall, and this is a wonderful way to watch some great baseball and enjoy a cold one with a hotdog. It’s the next best thing to watching the pros!

The concerts at the zoo are great for all the ages and occur throughout the summer months. My family enjoys the zoo and all they offer all summer.

My December clients have all been impressed by the luminaria, but the one place they just have to see during Christmas is the Old Town/Albuquerque Country Club Luminaria Walking Tour on Christmas Eve. Christmas is special in our great city.

I have learned a long time ago that I don’t just sell homes; I sell Albuquerque!

I love my job!

Posted by Tim
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