In July of 2024, the state of New Mexico adopted the 2021 IRC building code. As part of this code change, the insulation requirements also changed. The changes were designed to increase energy efficiency and are now structured based upon the climate zone the home is being built in. 

Most of New Mexico’s alpine zones are rated from 5 to 7. With Ruidoso being in zone 5 and Angel Fire and Red River being in zone 7. 

According to the new code, the insulation for walls has changed significantly and now requires either an insulation value of R30 in the cavity of the wall or the other option is what is referred to as “R20 + R5 continuous”, what this means is that you can put R20 in the wall cavity but then you must have an additional continuous R5 between the wall studs and the siding. 

One of the issues with the R30 option in the wall cavity is that the only real way to accomplish this with 2x6 framing is with closed cell spray foam insulation. Closed cell insulation has a few drawbacks, the biggest one being if there were a leak inside a wall, broken pipe etc.. the issue may not present itself until a tremendous amount of damage has been done. Open cell spray foam will allow water to pass through, alerting you of an issue. Closed cell foam has also been known to cause condensation issues in certain environments due to its inability to ventilate well. 

The option of R20 +R5 continuous is easily achievable with the use of open cell spray foam in the wall cavity plus the addition of a one inch ZIP panel. A ZIP panel is a structured insulated panel made from OSB with a built in water resistant barrier allowing it to function as wall sheathing, insulation, and a weather resistant barrier. The R20 +R5 continuous option does create additional cost compared to the previous building code, however, some of the cost can be offset due to the fact that the addition of the SIP panel deletes the need for OSB siding and house wrap.  

An additional option if you prefer not to use spray foam and want to use the R20 +5 option is to use a product such as Owens Eco Touch fiberglass in the cavity, this product is a high density fiberglass insulation that achieves a R21 rating that may be more economical. 

Question? Feel free to contact me at anytime.

Rob Swan

Swan Realty

Whisper Creek Homes

575-770-2958

rob@swanrealtyinc.com

I have always felt the building process is antiquated, complex and full of terms, language  and processes that are difficult for the average person to understand. Most of those who wish to build a house struggle with the process and most of the frustration comes from simply feeling like a fish out of water. 

There are some great contractors in the area who, for a price, will do absolutely everything for you so you don’t have to worry about anything, but what if you want to do all or some of the work yourself to save some money and make it more affordable? 

For the past few years, I have been attending the National Assoc of Home Builders show and talking with every builder I could find in order to learn as much as I can to help our homeowners and owner builders simplify the building process. The building industry has transformed significantly over the past decade, with technology driving new products and processes that are leading the way.

One of the biggest things a homeowner builder can do to get a head start is look into having portions of the house prefabricated or panelized. In the past “prefab”, was considered cheap and low quality, those days are gone as the technology has allowed some prefab or panelized homes to equal and even surpass the quality of onsite built homes.  Don’t get me wrong, not all off site built homes are equal and there are still plenty of low quality products on the market however, companies such as Whisper Creek go above and beyond and even offer a 24 year warranty on the work they do. Whisper Creek will panelize your home, which means they build all the individual components including walls, porches, roofing system and interior components in Montana then deliver them to your build site ready for assembly. The building of these components utilizes the same process and building materials that would be done on site, but instead of working in the elements, the construction takes place in a climate controlled environment. 

Another section of home building that has moved into the prefab arena is foundations. Due to our seismic activity level combined with our freeze and thaw cycles, most homes in our area are built on stem wall foundations as opposed to slab on grade which is common in Oklahoma and Texas. Swan Realty has partnered with a company specializing in prefabricated stem walls that can be delivered directly to your construction site. We are actively pursuing certifications for our home building professionals to ensure they are qualified to install these stem walls for our local homeowners, simplifying the process even more. 

In summary, if you are wanting a new home and wish to do all, part, or none of the work yourself, you have more options now than ever. 

If at anytime you would like to explore available options, feel free to give us a call

Rob Swan

Swan Realty

575-613-4243

rob@swanrealtyinc.com

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Rising Home Insurance Costs in Red River & Angel Fire, NM: What Homeowners Need to Know

By Rob Swan, Swan Realty

The cost and availability of home insurance has become a serious challenge for homeowners in Red River and Angel Fire, New Mexico. Across Facebook groups and community conversations, people are reporting escalating premiums, non-renewals, and outright policy cancellations.

I spoke with dozens of local agents to understand what's driving this trend and what homeowners can do to protect themselves. Here's what I learned.

Why Insurance Rates Are Rising: Wildfire Risk & AI Models

The turning point was the 2022 Calf Canyon Fire, started by the U.S. Forest Service, which burned over 300,000 acres and destroyed more than 900 structures. In the aftermath, insurance companies began reassessing their wildfire risk exposure across Northern New Mexico.

• Some insurers exited the mountain markets completely.

• Others dramatically raised premiums or refused renewals.

• This has made coverage harder to obtain and, in some cases, has impacted real estate sales.

Historically, insurers assessed wildfire risk by broad regional averages. Today, they use AI-driven models to evaluate individual homes. Companies like Zesty.AI provide wildfire danger scores (red, yellow, green) to insurers instantly when a quote request is submitted.

• Red → Uninsurable

• Yellow → Conditional, further review needed

• Green → Approved

The problem? Homeowners rarely see the data behind these scores, making rejection confusing and frustrating.

Key Factors That Make a Home Harder to Insure

From speaking with insurance agents and underwriters, here are the most common reasons mountain homes are flagged as high-risk:

• Tree proximity: Insurers prefer no trees within 30–40 feet of the home.

• First 5 Feet: We have recently seen insurance companies requiring all vegetation removed within the first 5 ft surrounding the house. 

• Roofing type: Metal is most desirable. Composite shingles are less favored. Rolled roofing is often uninsurable.

• Debris and firewood: Storage near the home increases risk scores.

• Untrimmed vegetation: Brush and ladder fuels close to structures raise red flags.

• Luxury value: Homes over $1M often face stricter underwriting.

• Access: Lack of gravel or paved road access may soon be a disqualifier.

• Non-environmental factors: Past claims history and even credit scores can influence rates. These two factors alone can have a big impact on whether or not an insurance wants to insure your home. 

What Homeowners Can Do

While insurance availability in Red River and Angel Fire will likely remain a challenge, wildfire mitigation steps can improve eligibility:

• Clear defensible space around your home.

• Upgrade to fire-resistant roofing and siding where possible.

• Keep firewood, brush, and debris away from the structure.

• Maintain road access to your property.

At Swan Realty, we are developing automation tools that allow homeowners to submit one form that gets distributed to multiple insurance agents. This will save time, reduce frustration, and help you quickly see whether your home qualifies for coverage.

Conclusion

The future of home insurance in Northern New Mexico’s mountain communities is uncertain, but proactive homeowners can improve their chances of maintaining coverage. By understanding how AI models like Zesty.AI score your property and taking mitigation measures, you can stay ahead of the curve.

If you have questions about your home’s insurability or need assistance navigating options, Swan Realty is here to help. 575-613-4243

Selling Your Home? First Impressions Matter More Than You Think

Do first impressions matter in the home resale market? Yes, absolutely! "You never get a second chance to make a first impression," said Will Rogers. When people are shopping for a home, they're envisioning themselves living in the home that they are touring. If you're in the process of preparing to list a house, consider walking in the shoes of a potential buyer and looking at your own home with a different set of eyes. The goal is to make your home inviting, so that the potential buyer can in fact, envision themselves living there.  Now, let's break it down some more in this article by three main categories to consider for these impressions: clutter, cleanliness, and repairs. Even if you're on a tight budget, small steps towards addressing these concerns can make a big impact, and lead to you not only selling your home faster, but getting more of a return in your profits.

By meticulously decluttering, deep cleaning, and addressing repairs, you’re not just presenting a house; you’re crafting an experience for potential buyers! A clutter-free, well-maintained home speaks volumes, inviting them to envision a future within its walls. We all live busy lives, and sometimes let items in our home "pile-up," so by taking a look around the house if there's any piles of clutter it may be worthwhile to carve out some time to organize and put the clutter away - even if it's shoving it in a "junk drawer"! Next up on the list is cleaning, and this is also very important for first impressions. If you don't have the time to do a deep cleaning, you may want to consider hiring a local professional cleaner - spending a few hundred dollars could make you a few more thousand dollars in the long-run. Finally, addressing repairs is something you'll want to consider prior to listing your home. According to RubyHome, 88% of buyers use a Home Inspector in the home purchasing process. Any repairs that need to be addressed will most likely appear on a home inspection report, which can be used as another means of negotiation for the buyer during the purchasing process - so why delay now? Being proactive in getting the repairs fixed sooner not only makes the process more efficient for all involved, but also contributes to making your home more desirable during that first impression phase of a buyer touring your home. For example, if your deck needs to be repaired, and a potential buyer is touring multiple homes in a day, they may consider purchasing the home that needs less repairs even if it costs more than yours - food for thought! 

Questions? Contact me at:

Lindsey Januskiewiecz, Assoc. Broker, Swan Realty

Lindsey@swanrealtyinc.com 575-613-4243

Rob Swan
Swan Realty
575-613-4243 

As soon as the ski area closed the sidewalks started coming out. Red River is in the process of replacing our aging and deteriorating sidewalks. The current sidewalks were put in over two decades ago and at that time, Red River had no sidewalks and hundreds of unsightly overhead power lines. During the initial sidewalk const

ruction, the overhead lines were placed under the sidewalks giving the town a much needed facelift. Fast forward twenty some years and our sidewalks are now due for an upgrade. 

The current project is headed up by GM Emulsions out of Santa Fe. According to Mayor Calhoun, the project is taking a novel approach in regard to the acquisition of the thousands of yards of concrete that will be needed. The traditional method of providing concrete is to purchase the premixed concrete from a batch plant in Taos and have it trucked to Red River. The cost of the traditional method is expensive due to the transportation costs of getting it to Red River 10 cubic yards at a time. GM Emulsions has invested in a portable batch plant so all the concrete can now be mixed right here in Red River, saving a tremendous amount of money on the project. 

The portable batch plant has been set up on the west side of the Conference Center and a portable lab on the east side to maintain 

quality control of the concrete. 

The project will be done in increments and is scheduled to last throughout summer 2024 and summer 2025. The project started across from Town Hall on the south side of Main St and will continue west until reaching the end of town when construction will move to the north side of Main St and continue back to Town Hall. The west side of town is scheduled to be completed this summer and the east side of town is scheduled for summer 2025. 

In order to minimize the disruption to businesses and guests, only one block will be done at a time. Once the sidewalk from one block is removed, it will be replaced before moving on to the next block. By using this approach, no more than one block will be disrupted at any given time. 

Limited Liability: A Shield Against Unforeseen Incidents. The primary advantage of placing your Red River or Angel Fire vacation rental into an LLC lies in the protection it offers. As the name suggests, a Limited Liability Company limits your exposure to legal and financial risks. Should any unfortunate incidents occur on the property, the liability would be confined to the assets and the insurance policy held by the LLC, safeguarding the owner's personal assets. This structure provides a solid layer of security for property owners against potential lawsuits or claims.

Simplified Accounting and Tax Benefits Another compelling reason to consider an LLC for your vacation rental is the ease of managing finances. By housing your property under an LLC, all related expenses and incomes are consolidated within the entity's bank account. This separation simplifies the accounting process, making it easier to prepare profit and loss statements and determine tax liabilities specifically for the property. However, it's crucial to maintain a clear boundary between personal expenses and those of the LLC to preserve these protections.

The Importance of an Operating Agreement An operating agreement is a critical component of forming an LLC. The operating agreement details how the LLC will operate and who the owners are. While templates are available online, it's advisable to have a customized agreement drafted by an attorney. This ensures that the document accurately reflects the specific needs and structure of your LLC, whether it consists of a single member or multiple partners. 

Setting Up an LLC  Establishing an LLC is a straightforward process in New Mexico. Property owners can file for an LLC through the Secretary of State's website, either independently or with the assistance of your real estate broker or attorney. The cost is $50 and there are no annual fees or reporting. For those residing outside NM who wish to have a NM LLC, it will be necessary to appoint a resident agent. This resident agent can be a NM resident or a NM corporation. Once the LLC is completed, you simply deed the property to the LLC and file the new deed with then county clerk. This is normally done with a simple quit claim deed.

In Conclusion, converting your vacation home into an LLC offers many benefits, from limiting personal liability to streamlining financial management. While the process is relatively simple, consulting with a legal professional can ensure that your LLC is set up correctly and tailored to your specific needs. As real estate and legal advisors always emphasize, taking the time to properly establish your LLC can provide peace of mind and financial protection for years to come.

Questions? contact me anytime

Rob Swan, Qualifying Broker

Swan Realty 575-613-4243

Red River, Angel Fire

rob@swanrealtyinc.com

Many homeowners that do not reside in their homes full time have benefited from renting them out on a “short term” or vacation basis. However, some homeowners have discovered either prior to purchasing the home or after the fact, that they have deed restrictions or HOA restrictions preventing short term rentals.

Over the years I have had many homeowners or prospective buyers ask me if these deed or HOA restrictions are enforceable in New Mexico. 

I am not an attorney, so to answer this question I refer clients to two previous cases decided by the NM Supreme Court and then to an attorney to see if these cases may or may not apply to their unique situations.

The first case is Mason Family Trust v Devaney which dealt with deed restrictions, in this case Mr Devaney was renting his cabin in Ruidoso on a short term basis to vacationers much to the displeasure of the Mason Family Trust who claimed his doing so violated deed restrictions which required properties in the subdivision to be used only for dwelling purposes and precluded properties from being used for business or commercial purposes.

The court, however, found that under the specific circumstances of this case, Devaney’s short-term rental of his cabin did not violate these deed restrictions. The court's decision was based on a strict and reasonable interpretation of the deed restrictions, concluding that short-term rental for dwelling purposes did not constitute a use for business or commercial purposes. This decision was influenced by the principle of resolving issues of enforcement of a restriction in favor of the free enjoyment of the property and against limitations​.

In the second case, Estates At Desert Ridge Trails v Vazquez. Mr Vazquez was renting out his home on a short term basis in a Albuquerque subdivision that had restrictive covenants in place preventing such use. The HOA argued that the short-term rental of a home by Mr. Vazquez was inconsistent with the single-family residential purposes limitation, comparing it to more of a business such as a hotel.

The court, however, did not agree with the HOA interpretation. It found that the use of the property for short-term rentals did not, by itself, constitute an impermissible business or commercial activity under the "single-family residential purposes" restrictive covenant. The court held that just because Mr Vazquez was receiving an economic benefit does not automatically equate to a business or commercial activity under the restrictive covenant. 

In these two cases, the homeowners prevailed and were not prevented from renting their homes on a short term or vacation rental basis. It is impossible to tell how the court may rule in future cases, but In reading through these cases in their entirety it can be summarized that the court was unwilling to differentiate residential use based strictly upon the time of occupancy. 

Please note that this article is not to be construed as legal advice and the above cases are specific and may not apply in every situation or your situation. If you have specific questions about short term rental permissibility, you are highly encouraged to seek out a qualified real estate attorney. 

Real Estate Questions? Feel free to contact me anytime. 

Rob Swan

Qualifying Broker, Swan Realty

575-613-4243

If you are considering buying a home in Valle Escondido, located between Taos and Angel Fire you’d be hard pressed to run out of things to do with an abundance of options right in the community. Valle Escondido features a nine-hole golf course, with roughly 40 acres of well-kept greens throughout. There is a Clubhouse with a deli/restaurant and bar, as well as a heated swimming pool. Two well-stocked trout ponds lying in the scenic areas of the neighborhood offer great picnics, dog walks and great sunsets. As well as easy access to countless miles of forest roads to get you hiking, four wheeling, hunting, backcountry skiing, horseback riding, mountain biking, and much more!

The community frequently has events going on including live music, golf tournaments, holiday celebrations, and much more! The area is relaxing and serene, with some of the best sunrises and sunsets in New Mexico. The landscape in Valle Escondido is expansive and wild. On a regular basis you will see an abundance of wildlife from deer to elk frequenting the view out your window or off the porch. This hidden gem, Valle Escondido, is sure to enchant anyone who visits.

Valle Escondido is also proud to be recognized as a FireWise Community! FireWise communities are recognized by the National Fire Protection Association by their efforts to become more resistant to wildfire, structural and environmental damage.

The Homeowner’s Association fees are currently around $1,700 annually and include access to all that's listed above plus road maintenance, snow removal, community dumpsters, chipper days, and community water that's voted best quality in New Mexico. Valle Escondido does not have a community sewer system so all the homes have their own septic systems.

Valle Escondido was established in 1962 as a resort community and has continued to grow slowly ever since. Currently there are several homes and lots for sale in Valle Escondido. The average price of a home sold in Valle Escondido is $424,000 which is slightly lower than the surrounding resorts.  

 If you'd like to learn more about Valle Escondido, feel free to contact us

Swan Realty

575-613-4243

Don’t Lose The House Over A Loose Toilet Seat!

During the home buying/selling process there will most likely be an inspection conducted. The buyer generally has the right to inspect the home in any way they would like. They can do it themselves or hire an inspector. This inspection will inevitably come up with findings, even in a brand new house. How these findings are dealt with is important. 

A home inspector is hired to find issues and I can guarantee you, he will find them, that’s their job. In general, the older the home, the more issues will be found. Inspectors are usually pretty good at indicating which findings pose a safety hazard and those that do not. 

Once the findings have been delivered to the buyer, now what? The buyer at this point has some options, do nothing and accept the house as is or ask for a credit at closing to remedy any defects. But now the question is, what do you want remedied and how much should you ask for.

So let's think about this, all houses have issues. Asking to have everything fixed is unreasonable and will probably alienate the seller. We recently had a small house under contract and there were a few defects uncovered that posed safety risks and a whole bunch of  small issues that would not be uncommon to find in an older home. The buyer decided to ask for everything on the inspection report to be fixed and in doing so made a request for $19,000 to be credited to him. As expected, the seller refused the request and was so annoyed by the buyer asking for so much that he did not even counter the request and started considering previous offers. The buyer panicked and dropped all requests for repairs and the deal was eventually completed with the buyer receiving no compensation for the defects. 

The lesson here is that a negotiation is a two way street, as long as all parties act in good faith and make reasonable requests of one another, the deal usually rolls along smoothly and makes it to closing without any issues. Once a party acts unreasonable in the mind of the other party, is where problems start to arise and distrust starts to set in. Once this happens the likelihood of one party becoming upset and leaving the deal is greatly increased. Had the buyer only requested compensation for the most significant defects he would have stood a very good chance of receiving his request, but in this case, he ended up with nothing. 

In the case of inspection reports, both parties should look at the report for what it is, it’s just a report and it will be full of findings, some may be significant, most of them will not be a big deal. Focus on what matters and let everything else go. Do you really want to lose the deal over a loose toilet seat? 

Real Estate Questions?

Rob Swan

Qualifying Broker, Swan Realty

575-613-4243

Why We Should Never Close The Door Behind Us. 

A resort community’s permanent  population is generally a mix of working people and those who are retired. The working population always wants more economic activity as it is their only way of making a living and on the other hand, retirees many times want less economic activity and less tourists as increased tourism ads to the congestion and sometimes unwanted side effects. 

For the most part, all of the infrastructure we have in both Red River and Angel Fire was funded by tourism based economic activity. All of the current infrastructure and businesses you see were funded almost 100 percent from tourism dollars. Without the dollars the tourism industry provides, both of these communities would have very little to offer. Red River has been building for over 100 years and Angel Fire for over 50 years, so everything you see and enjoy in these communities took a long time and a lot of money to come to fruition. 

With that said, unfettered tourism for the sake of generating income should never be the goal. The goal should always be to use economic activity to improve the lives and well being of the community members to include both the working population and retirees. Achieving this balance can take patience and a willingness to compromise on both sides. 

All of this matters to real estate due to the fact that without our thriving towns the real estate values would be considerably less. For example, a home in the forest outside of a thriving resort community generally has about half the value of those within proximity of a resort destination, so it’s not a little difference, it is a major difference. 

Everyone does not directly benefit from everything, but everyone does benefit indirectly as all of this economic activity continues to build additional infrastructure boosting property values, keeping our businesses open, maintaining our water, sewer and parks and subsequently improving the quality of all of our lives. 

Real Estate questions or concerns? 

Rob Swan, Qualifying Broker, Swan Realty

rob@swanrealtyinc.com

575-613-4243