Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Nov. 22, 2022

HOME BUYERS - UNDERSTANDING HOME INSPECTIONS

HOME BUYERS - UNDERSTANDING HOME INSPECTIONS

 

Buying a home, whether it be a vacation home or your primary residence will be one of the largest investments that you will make in your lifetime so not making mistakes along the way is critical and a home inspection is a big part of that. 

I want to start this out by saying that all used homes have issues, so once you understand that, don’t be surprised to uncover defects as you proceed through your inspection process. The goal is to identify those that matter to you and those that don’t. At the top of the list of issues that matter should be health and safety issues followed by structural issues. 

In your purchase agreement (unless you opted out of it) there is a time period in which you have a right to inspect all aspects of the home. This range of things that can be inspected is unlimited and can include the home itself, the neighborhood, applicable zoning, water access, sewer functionality, radon levels etc.. If you as the buyer uncover something undesirable or defective that you would like remedied you can ask for a repair or a monetary compensation credit at closing. Keep in mind that at that point it becomes a negotiable item and the seller can agree, disagree, or attempt to meet you somewhere in the middle. If a resolution cannot be negotiated then the sale will terminate and the buyer's earnest money will be refunded. 

As a buyer it is important to understand that buying a home is a two way street. Acting in good faith and being reasonable with your requests will go a long way in getting the seller to agree. Buyers who nit pick and ask for repairs or compensation on every item in the inspection report are rarely accommodated and often end up irritating the seller. 

Inspections can be done by a licensed inspector, a contractor, yourself or a combination of all three if you wish. If you do hire a licensed inspector, be sure to obtain the cost, scope of work and the timeframe before agreeing. Also note that you will most likely be required to pay the inspector out of pocket. 

If you have additional questions in regard to inspections please feel free to contact us at any time. 

 

Rob Swan

Qualifying Broker, Swan Realty

Office - 575-613-4243

 

SwanRealtyinc.com

 

Nov. 12, 2022

Angel Fire Real Estate Market Report - Nov 2022

(54 second video) Price per square ft of all single family homes sold in Angel Fire from May through Mid November of 2022. Price per square ft sold will give you an indication of home values if you are contemplating buying or selling a home in Angel Fire. VIDEO

Angel Fire Market Report Nov 2022

https://youtube.com/shorts/gRNN8BLOQ7M

Nov. 7, 2022

Using a 1031 Exchange To Buy A Vacation Rental In Red River, NM

(56 second video) A 1031 Exchange can be a great way to defer capital gains taxes on income producing property you wish to sell. Buying a vacation rental house in Red River might just be the new investment you were looking for. This video will explain how a 1031 works and what you must do in order to not have your 1031 disqualified.

https://youtube.com/shorts/xl3nr_UJLmQ

Red River NM, 1031 exchange, swan realty, rob swan

Oct. 28, 2022

How much earnest money should I put down on my Red River home?

(60 second video)

When making an offer on real estate, earnest money can play a big role. This video will give you some guidance and help explain the process.

https://youtu.be/QXJZ-WtJuOU

Oct. 28, 2022

Home Sellers - Understanding Home Inspections

Home Sellers - Understanding Home Inspections

 

As part of the home buying/selling process there is usually a home inspection involved. The purpose of a home inspection is to uncover any defects that may not be apparent in order for the buyer to have a better understanding of the true condition of the home. 

Sellers tend to be wary of home inspections due to the fact that a defect could jeopardize the sale or prompt the buyer to ask for compensation to make requested repairs. So what should sellers do?

To begin with, you as a seller have a legal obligation to disclose any known material defects, not doing so could create legal liability and subsequent civil action, so let’s avoid that. 

As a seller you obviously want to obtain the highest price possible and one way to do that, is to come as close as you can to insure the house is issue free. All older homes have issues, if you as the seller are aware of these, do your best to either repair or mitigate. One thing I always suggest is to obtain a pre-listing inspection. A pre-listing inspection will uncover unknown defects and give you a chance to deal with them prior to going on market. This inspection report can be made available to any prospective buyer and can also detail the steps that were taken to repair or mitigate any defects. There is a chance the buyer may accept the existing report and waive any further inspections.  A home inspection will cost between $500 and $700 in our area. 

 

Keep in mind that the inspector's job is to find any and everything he possibly can. In my entire career, I have never seen a report come back without uncovering problems, even on brand new houses. As a seller, focus on the major issues and those most likely to raise objections with a prospective buyer.

If you as a seller opt not to do a pre-inspection, do your best to repair all known defects as they will most likely be uncovered during the buyers inspection. Many times you can do the repairs yourself or hire them done for less than what will be asked for as compensation by the buyer. 

So now the house is perfect and the buyer still wants his own inspection. No problem, the buyer has a right to an inspection. The inspector subsequently did the inspection and found defects (remember, that’s his job) and the buyer is now asking for compensation, Grrrr … . Don’t get your feelings hurt, this is very normal, it’s just business. At this point do your best to negotiate with the buyer and hopefully come up with an agreement you can both live with. 

Keep in mind, if the sale falls through due to any inspection turning up a material defect you were previously unaware of, you are required by law to disclose this to any subsequent buyers so don’t get yourself in trouble. 

Here is a quick video explaining home inspections

 

Questions? Please feel free to contact me anytime.

 

Rob Swan

Qualifying Broker, Swan Realty

rob@swanrealtyinc.com

575-613-4243

 

Oct. 26, 2022

Does the house in Red River I want to buy have city utilities?

The home you want to buy in Red River may or may not have city utilities available. This video will explain what utilities are available to you and where they are.

(40 second video)

https://youtu.be/HRNoEyX11LM

does this house in red river have city utilities available

Oct. 23, 2022

Red River Real Estate Market Report May Through Oct, 2022

Market Report - Dollars Per SF SOLD, May - Oct, 2022

How much does a cabin in Red River cost? We have seen some stabilization in the Red River real estate market in certain categories, however, one category is still creeping up.

Market Report May through Oct 2022

https://youtu.be/hg9-0_65MNU

Oct. 22, 2022

What is a Time Off Market Fee (TOM) and how does it work?

"TOM" fees are becoming more popular in Real Estate transactions. Here is everything you need to know.

(50 second video)

TOM fees, everything you need to know

https://youtu.be/8uGqZYMsA10

 

Oct. 21, 2022

Do I have to pay tax on the real estate commissions in NM

New Mexico is a bit different on how are taxes are structured. This video explains the obligation to Gross Receipts Tax in regard to real estate commissions when selling your home. Rob Swan Qualifying Broker Swan Realty

Do I have to pay tax on real estate commissions in nm

https://youtube.com/shorts/-WsGvdv4kaI

Oct. 21, 2022

Will the seller take less than asking price for that Red River home?

Negotiations can make a difference in the final price you pay on that Red River real estate you have been wanting. Wondering if the seller will take less is a very common question.

(50 second video)

Will the seller take less than asking price?

https://www.youtube.com/watch?v=MCi_cS70Gqg