With over 1,400 vacation rentals in Angel Fire and 600 in Red River, the vacation rental market has slowly become very saturated. 

The advent of online booking platforms has given rise to the vacation rental boom and everyone wants a piece of it. Many homes are performing well but many more are not. All of the high performing properties have these things in common:

1) Great location

2) High quality property

3) Exceptional management

If you already own a property, you can't change the location but you can improve the quality and the management if you feel your property is underperforming. In our area a 60% and above occupancy rate is considered good, if you are below 50% some intervention may be in order. 

Improving quality is going to cost money and on average the cost for a smaller house will be around $25 to $30 per sf for a complete remodel, flooring, paint, appliances etc.., so for an 1,100 sf house you should expect to pay around $27,000 for the remodel. However with proper management this upgrade will pay for itself in about 3 years and have a lifespan of around 15 years. When potential renters are searching for a vacation home, photos and or video is all they have available to them in order to make their decision, so to get their attention, the house needs to be in excellent condition with modern amenities and appearance. 

The next variable is management. Poor management will automatically result in poor performance. I have seen homeowners and property management companies both do phenomenal jobs at management with outstanding results, however, I have also seen pathetic results from both of the aforementioned management scenarios. Property management is a complicated business with a tremendous amount of moving parts including maintenance, housekeeping, marketing, advertising, customer relations, and more, all of which need to be perfectly choreographed in order to succeed. There is no getting around the fact that property management is not an easy job, it takes a lot of time and dedication.

Once you have quality and management under control you need to think about pricing. This is an area that many managers don't pay enough attention to. Every night that your house is vacant is money that can never be recovered, so getting it booked is paramount. The online booking platforms such as VRBO use algorithms to sort and show properties to potential customers, these algorithms take into account many variables including pricing. Believe it or not, sometimes adjusting your price slightly upward can actually move your property higher in the suggested list. Adjusting pricing is a mixture of art and science, a good property manager with the assistance of pricing software can make a huge difference in occupancy rates. What you absolutely do not want to do is to set the price and walk away. Pricing adjustments need to be done on a monthly if not weekly basis. 

Additional tips on getting your property rented. The most searched term for amenities is "pet friendly" with 40% of potential renters looking for a home that will welcome their furry family member, followed by "internet" then "hot tub/pool". if you don't currently offer any of these options, you may want to consider it.

Questions about the vacation rental business?

Rob Swan

Qualifying Broker, Swan Realty

575-613-4243

“Wiggle Room” in Pricing, A Self Fulfilling Prophecy. Don’t Alienate Potential Buyers.

Many sellers want to add “wiggle room” to the listing price in order to have room to negotiate. Negotiating is a cultural behavior, some cultures expect to negotiate while others do not. Americans do have a tendency to negotiate but we tend to negotiate within limits. 

The more “wiggle room” you add to your asking price, the more you will end up negotiating along with alienating a percentage of potential buyers. 

Let's start by looking at this from a buyer's perspective. If a buyer is on a real estate website and is looking for a home but does not want to spend more than  $500,000, the buyer will put that amount into the search criteria and only homes listed at $500,000 or less will appear. The buyer may add a little extra in order to find a home just above his target price in hopes of negotiating back down to what he actually wants to pay. However, on average he won’t search much above his target amount.

Now let's look at this from a seller's perspective. The seller's home is worth around $500,000 but the seller insists it be listed for $550,000 because he wants room to negotiate. 

As you can see in this example, the seller has alienated the potential buyer by listing his house quite a bit above fair market value. Now multiply this by the amount of potential buyers in your market and you can see that the seller has effectively limited his pool of potential buyers.

Now let's assume that the seller listed his house at $510,000 much closer to fair market value. In this case, a buyer looking for a $500,000 home may actually see and consider this particular listing. A win for both parties. 

I have heard many times over the years from sellers with overpriced listings “somebody might just come along and pay it”. Yes, maybe but not likely. The more likely scenario is that the seller's property will just sit on the market and the listing will become “stale”. The seller will eventually fire his broker after six months, hire another broker who will convince him to drop the price and the property will end up selling for what it was worth all along. 

As a seller, keep in mind that real estate brokerages are in the business of selling property, not advertising property. You may find a broker willing to list and advertise your property for well above market value, but I can assure you that broker is not doing you any favors as these scenarios usually end up with disappointment on both sides. 

So here is what you should do, find an experienced and knowledgeable broker and listen to them. They should be able to advise you on a listing price and this advice will be backed up with actual market data. This methodical approach is much more likely to get you to your end goal a whole lot faster and with less frustration then overpricing your Angel Fire or Red River home right out of the gate.

Real Estate questions or concerns?

Contact me at any time. 

Rob Swan, Swan Realty

rob@swanrealtyinc.com

Whisper Creek Homes offer a "Modern-Rustic" panelized building system designed to offer incredible quality with a much shorter build time. This video will explain how all of this happens and how you can obtain one for yourself. 

Swan Realty - 575-770-2958

The importance of being a homeowner cannot be overstated, beside the obvious tax benefits, according to a recent study done by the Federal Reserve, the average net worth of a homeowner is $225,000 compared to a renter at $6,300, that is 40x more net worth for a homeowner vs a renter. This is an astonishing statistic and underscores the importance of home ownership and the path to prosperity. 

A misconception that many of our locals who work in the service sector have is that home ownership is out of reach for them. This misconception is far from the truth and prevents them from having a home of their own and subsequently increasing their net worth. 

Buying a home is a process and that process needs to start somewhere. I know in our brokerage we do everything within our power to get locals into homes. We know that without our locals we would not have the beautiful vibrant towns that we all enjoy, so helping locals achieve stability through home ownership is a priority. 

So where do you start the process? The first step is to start getting your team together by building a relationship with an experienced real estate broker. This is the person who knows the housing market intimately and will find you the right house, this is their job, that’s what they do all day every day. Your broker is the one that is also going to get you with a lender to round out your home buying team. 

The lender is a big part of the equation, your lender is the one that is going to help you get those ducks lined out and make that new home a reality. Very few first time buyers have everything in order, but don’t worry, a good lender will help you get it all sorted out. The lender is going to look at your individual situation, probably request additional documents then make recommendations on what needs to be done so when the right house comes along you are ready to pull the trigger. Getting qualified for a loan can be frustrating at times, however, the end result far outweighs any frustrations you may experience along the way. So if you are thinking about buying, let's get your home buying team together and get you on the road to prosperity. 

Questions, contact me anytime. 

Rob Swan

Swan Realty

575-613-4243

rob@swanrealtyinc.com

According to county records approximately 90% of homes in Red River and Angel Fire are owned by non-residents (owners whose tax bill is mailed to an outside zip code). So what drives people to buy homes in resort areas when they could just simply rent a house when they want a vacation and avoid all the hassles of home ownership? Many people have incomes that exceed their needs and with that comes an unlimited amount of places to invest that same money. So why do they invest in resort properties? Individual motivations can vary widely and in many cases tend to overlap, here are some of the biggest reasons. 

Many buyers just want a second home in order to escape the daily routine of home life at their primary residence and spend some time relaxing and indulging in pastimes that they may not normally have available. 

Rental income. The short term rental market has become a hot commodity over the past decade. Income from renting out your property in a resort area can be lucrative. These funds can not only put cash in the pocket of the owner but can also go a long way in paying for the home. 

Retirement destination. Our towns offer a nice climate, activities, social functions and many other amenities that appeal to retirees. These homes also offer a desirable location for multi generational family gatherings. What grandparent doesn’t want the grandkids around?

Real estate appreciation. Due to supply and demand, real estate tends to appreciate at a higher  rate in resort areas than it does in other areas. There are only so many nice places to go and they always come with a finite amount of available properties. 

Lifestyle choice. If you are reading this, then most likely you have experienced what our resorts have to offer and the fact that we have a nice lifestyle is no secret. The accessibility to outdoor recreation, laid back atmosphere and natural beauty is unmatched. 

Irrespective of the reasons behind their home purchases, these non-residents generate a substantial level of economic activity that contribute greatly to the development of additional infrastructure, thereby enhancing the overall quality of our towns. So to the non-resident and resident homeowners, thank you for being here, it takes all of us to make this work. 

Real Estate Questions? Feel free to contact me. 

Rob Swan

Qualifying Broker, Swan Realty

rob@swanrealtyinc.com

575-613-4243

Real Property is simply land that includes any and all improvements. Improvements could include a home, well, septic system, fencing and any other improvements that may have been done to the property. Personal property is everything else. So why does this matter in real estate?

It actually matters a lot due to the fact that banks will not do real estate loans on personal property. We have had many instances where clients would like to sell their land with a manufactured home on it and end up having difficulty due to the fact that the manufactured home is not attached permanently to the land and still has a DMV title and is therefore taxed separately. Until the title is deactivated and the manufactured home is converted to real property, it is considered personal property and banks don’t do real estate loans on personal property.

So what can you do? The first step is to ensure the house has an approved foundation and tie down system. The next step is to have the house inspected and approved by the local authority. The DMV will then need to de-activate the title and then the owner will make a request to the county to change the valuation status. This explanation is a bit over simplified but it gives you a general idea without boring you with all the details. This process is actually a bit daunting and can be frustrating if you are not familiar with it. However, the benefits are worth it due to the fact that as soon as it is taxed as real property, the home is now eligible for a loan and a whole lot easier to sell. 

Another instance where personal property comes into play in real estate transactions is when the seller includes all the furnishing in the sale. If the buyer has a loan and the furnishings are included in the contract, many times the lender will request to have wording added to the contract that states that the furnishings have no monetary value or are being left in the home as  convenience to the seller. Banks don’t loan on furnishings. 

If you need help or advice in converting your manufactured home to real property, don’t hesitate to give us a call, we are always more than happy to assist in the process or answer any questions you may have. 

Rob Swan

Swan Realty

rob@swanrealtyinc.com

575-613-4243

 Waste Disposal, all dumpsters in the Town Of Red River are public and can be used by anyone for household refuse. All other refuse must be taken to the transfer station located approximately 1 mile west of Red River on Hwy 38.  The facility is located on Straight Creek Rd, look for the Waste Water Treatment Plant sign. Current rates to dispose of refuse is $10 per cubic yard. 

Brush and Limb Disposal, The Town of Red River provides a location at the Waste Water Treatment Plant to dispose of brush and limbs free of charge. They will accept brush, limbs and small trees. They will not accept tree stumps. The facility is located on Straight Creek Rd 1 mile west of Red River on Hwy 38, look for the Waste Water Treatment Plant sign.

Water Testing, The Town of Red River provides water testing services. They will test any water you bring to them. If you would like to have your water tested please visit the Waste Water Treatment Plant to obtain a sample jar and instructions on how to obtain a water sample. There is a fee for this service, please call 575-754-6671 with additional questions regarding water testing. 

Notary , Swan Realty,  All Swan Realty brokers are commissioned notarial officers for the state of NM

Plumbers, Busy Bee Plumbing 575-586-1847, Plumb Crazy 575-770-5915

Electricians,

Surveyors, Dave Hamilton 903-930-8048, Red Tail Surveying 575-758-7441

Title Companies,  Pioneer Title 866-294-4100, First NM Title 575-758-4264, Tierras Title 575-758-4046

Real Estate Lawyers, Jacob Caldwell 575 770 9150, Steve Nattleson 575-758-4844

Mortgage Lenders, Megan Gallagher 575-770-9883, David Bennet 785-830-4652

Home Inspectors, Chaney Becker 575-779-1983, Cottages and Castles 505-404-3197

Contractors, Whisper Creek Homes 575-770-2958, Randall Kiker 575-770-0644, Red River Const. 575-770-8291, Eriks Workshop 575-754-6219

Septic Services, Bobs Yard 575-447-0900, Latigo Septic Inspections and Installation 575-776-4778, Enchanted Circle Septic Pumping 575-224-6591

Roofers, Joseph Rael 575-770-0161

Snow Plowing, Cody Pierce 575-770-5728,  Bud Jacobs 575 770 1537, Scott Wilson 575 770 0560

Electric - Kit Carson Electric - 

Gas - NM Gas - 575-758-5873

Garbage - Town Of Red River 575-754-2277

Water and Sewer (within city limits) - Town Of Red River 575-754-2277

Internet - Kit Carson Fiber Optic - 575-758-4838

Propane - Northern NM Gas 575-377-3744, Pendleton 575-586-0042

The Tourism Overlay Zone was adopted in 2016 in order to preserve the down town main street area in Red River for tourist oriented businesses. 

For a complete copy of the ordinance Click Here - Red River Tourism Overlay Zone Ordinance

Video explaining Tourism Overlay Zone - https://youtube.com/shorts/cpkey9_CCX0