[vc_row][vc_column][youtube video=”https://youtu.be/9UAZUCnW_r4″ autoplay=”true” mute=”true” autohide=”Default” controls=”Always”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Tego (00:02):

I wish we had more homes of the week and more open houses of the week since there’s a kind of a short supply of homes for sale. And if you’ve not been in the real estate market in know what’s going on in real estate market, that is the story, right. Tracy

Tracy (00:16):

Really is, you know, we we really need more homes for sale. We have buyers just waiting and, you know, Tigo some of the hesitation that when we talk to home sellers or people who want to sell their houses, they want to make sure they have a house to buy. So some people are moving out of New Mexico or moving out of the Albuquerque Metro area, moving out of Santa Fe and, and, and they are moving to markets where it’s tough to find a home also.

Tego (00:44):

Well, it’s the country, it’s the classic catch 22, right. I want to sell, but I can’t find anything. So I can’t sell, which means I can’t put my home on the market and make it available for somebody else. So we’re, we are in that, that place. And, and, but, you know, th th th the thing is, if you’re in a starter, let’s say level home in our market, now I’d call that under even 200,000 now. Yeah. Yeah. that market is very strong. There’s more choices in the higher prices, but even then, it’s, it’s kind of like

Tracy (01:18):

It is, and there’s still competition for those higher priced or luxury homes. So, yeah, but, you know, we have lots of solutions for that, and it’s not uncommon. We help people sell and buy every day and make it work. And so we’d be happy to chat with you to figure out how to put a strategy together that would work for you if you’re ready to sell, but you also need to buy a home. So we would love to hear from you four, four, eight, 88, 88, we enjoy coming in doing this radio show every week to go, there’s a new way. People can find information, right. And shows and things.

Tego (01:56):

Oh, you mean on Eddie’s new site? Yeah. Rock of talked.tv. He’s got our, the archive of all of these shows. I’m sure that’s what everybody wants to do. And go back and watch us talk about real estate in Albuquerque, but this is what we love to do. So, so Tracy I want to talk about this whole idea of the selling and selling in this market. And are you leaving money on the table as a, as a home seller? The reality is this is the strongest sellers market that I think we’ve ever seen in the Albuquerque area. And it’s, it’s not just Albuquerque it’s across the country, right? I mean, there’s a select few markets that aren’t that way, but it is a strong seller’s market, which means you put a home on the market it’s most likely going to sell, right. It obviously price matters. But you know, you could get a, let’s say a lower price point home that’s in fair condition, take some cell phone photos, throw it in the MLS and you’ll, you’d get some offers right away. But the question is, are you leaving money on the table? Are you leaving money behind when, when you do that? So just Tracy, can you talk to folks that are thinking of selling of, of the things they need to be thinking about?

Tracy (03:11):

So, you know, we know from years and years of doing this, that our website gets people from all over the world, right? We’re seeing people buying houses here that haven’t stepped foot here to buy that house. We’re seeing people from all over the United States. We’re seeing people from actually in the last month or so, we’ve had several that are international. They might be PCs incoming back to Kirtland air force base, or for some other reason or out of the country and coming,

Tego (03:41):

Come on, you said it real quick. You guys say with PCs, and if people don’t know, I mean, anybody in the military knows what that means.

Tracy (03:47):

Pcs thing is a permanent change of station. So military people, when they get assigned to a new base, they PCs permanent change of station to the new one. So that happens. But we know that there’s a lot of people online, shopping and choosing what houses they’re interested in. And even though it’s a great time to be a home seller, we feel like it’s a disservice to our sellers to not present it as professionally and high quality as possible. We’ve seen some houses that are getting cell phone photos or really crooked, you know, th they’re not good. And, you know, we feel like perhaps money is being left on the table sometimes. Plus the negotiating skills.

Tego (04:30):

Yeah. Well, that’s what I wanted to ask you because obviously presenting the property, merchandising it, making it show, well, you know, be the model home. That’s going to get you the most from the presentation side. But what about, you know, you get multiple offers what’s important there, and what should your agent be talking to you about your real estate agent?

Tracy (04:53):

Right. So multiple offers, it’s lovely, right? From a seller’s perspective, being able to choose among a foe of three or four or five offers. But the highest priced offer is not always the best offer. And, you know, just this past week with our team, I can think of at least two instances where there were multiple offers and the highest priced offer was not the one selected. So all the other terms are very important, closing timeframes, inspection deadlines, the quality of the financing or the cash, even sometimes cash without any documentation to prove that your buyer has the cash available or ready cash. So to speak something that can be converted into cash quickly might, might mean that there’s not faith, that, that cash exists.

Tego (05:42):

You know, I’m going to say, we know all the tricks right on, on, you know, when we’re representing a seller, we’re looking at more than just the bottom line price, because there’s so much more to it. You know, the pre-qualification, you know, have they actually pre-approved or that a lender just kind of take a phone call and get some basic information said, Oh yeah, it looks like you qualify. Or they actually approved for the loan. They’re ready to go.

Tracy (06:07):

So that’s a really good sidebar. Right? So there’s pre-approval and pre-qualified right. So alone letter that comes to us along with a buyer’s offer that says they’re pre pre qualified. So a lot of times the language in those letters says based on the information you’ve given and given us, you appear to qualify. However, we have not checked your credit. We have not verified your employment. We haven’t checked your taxes. This does not mean we will lend you that money. So you’re going, what’s the point, right? Why would, why would we give much credibility to that type of letter when it says it’s only based on what you told us, you haven’t even filled out a loan application to give us all your data. We haven’t even pulled your credit yet, versus pre-qualified where somebody actually has already pulled their credit and done some of the due diligence to verify some of the information

Tego (07:01):

I want to just make something clear here. We’re not, we’re not throwing lenders under the bus. You know, what happens is the buyers call up and say, well, I don’t want to do all that. Now just give me my prequalification. Well, the buyers are doing themselves a disservice by doing that. I assure you that lenders want to do the due diligence and give you as a buyer, a very strong pre-approved, you know, qualification letter that you submit with your offer. And so buyers need to not try to shortcut that step because it’s going to make a big difference in them winning or losing when they make, make offers right now, when you get multiple lines.

Tracy (07:38):

Right? So the other part of that is, you know, having an experienced agent that does a lot of transactions in this market right now that really knows the ins and outs of how to look at one offer over another for a seller is pretty important too, to really give good advice and help the seller make a good decision based on what we, what we have and the relationships we might have with other realtors and with local lenders, because obviously working with a local lender is preferred in our market over out of area.

Tego (08:11):

You know, we we’ve talked about this many times, but I’m going to say it again, local lenders that have an office that have a reputation to protect in town. They want to make sure that they’re keeping that reputation strong and doing the right thing. And unfortunately, we’ve seen it. And I, again, I’m not trying to like slam anybody here. I’m just saying we’ve seen it when you have these kinds of out-of-state online lenders. They just don’t have quite as much skin in the game to make sure that everything’s good to go and that the the buyers are taken care of.

Tracy (08:42):

Well, and that’s oftentimes the out of area lenders don’t know about some special programs that might be available here. They don’t have a down payment assistance program for first-time home buyers, right? Yeah. They, they, they’re just more limited on the products that they can offer to home buyers. So that’s, that’s things to consider when I’m wondering if you’re leaving money on the table. So who you choose to sell your home with. You does matter

Tego (09:07):

Again, it’s not just about price. It’s about, you know, working those offers and negotiating the best deal for you

Tracy (09:14):

And presenting the proper property in the best light possible.

Tego (09:19):

So you can tell I’m just like ready to jump out of my skin. Cause I want to talk about January numbers. I know, I know. Well, it’s the first week of February, 2021 and here we are. And, and I’ll go through a couple of things. I know it’s a little more difficult on radio. You guys can’t see this, but let me just give you a couple of things, Tracy. So the number of homes sold in January this year is up 14% versus January last year.

Tracy (09:47):

Incredible. Isn’t it considering that if we had more houses on the market, think how far up it would be?

Tego (09:53):

Well, that, that goes right into what I was going to say next, which is the number of homes for sale. So again, set that in your mind, 14% increase in sales in January, that was with a 64% decrease in the number of homes on the market versus last January. So give you an idea. Last January, you had 1,752 homes on the market. This January 630, you know, that was just for the Metro Albuquerque. Currently there’s about 850 or so in Metro Albuquerque single family homes for sale. And as I keep saying, you know, we could easily have three, four, 5,000 homes in the market and still be in a quote balanced market, you know, with the, with the current demand that we’re seeing in the market. And I, I know there’s a lot of people talking and I was on a training where I was talking to some other realtors about, you know, what’s going on, doing what I do here, which is talking about the market. And some people are concerned that the, the prices are going to tank and 21. And I I’ll just say, I’ll put my, you know, I’ll put my name on it, that I don’t see it. I just don’t see it.

Tracy (10:59):

I don’t either prices can’t tank that fast. It’s no move, slow. It moves slow. So I’m sure you have some other stats for us from January before.

Tego (11:11):

I want to talk about was the the, yeah, let me go back to that one. Sorry about that is the, the luxury market Tracy, because that’s one place where we’ve really seen a huge move in the last year. And just to give you an idea homes over 600,000, if we look at closed sale.

Tracy (11:33):

So did you increase that from 500,000? We always talk about homes over 500,000

Tego (11:40):

Particular stat. I’ve got it set up a 600 and above. But just to give you an idea, there was a 45% increase in the number of homes over 600,000 that closed in the last 12 months. Okay. If you look at it just for January, there was, Oh, I’m on the wrong chart. We, we get this in January of 2020 homes, over 600,000, we had 18, or excuse me, had 18 sales this year, 41 sales in January over 600,000. That’s 128% increase. Yep. So that market’s really strong. Yeah, I mean, we don’t need to beat this to death. The reality is it’s, you know, the market is very strong. It’s a very strong seller market in all segments of the market, all parts of town. And, and I don’t I don’t see that change in any time real soon. Speaking of parts of town, I’ll, I’ll, I’ll leave you with this. Somebody was doing a story for one of the newspapers. I think it was business first. And of course they called me to get some stats and they want to know, okay, what’s the hottest zip code in Albuquerque right now? Like what’s the craziest busiest, you know, Titus supply demand. And do you want, do you want to take a stab at it, Tracy?

Tracy (12:57):

I would guess maybe eight, seven one two zero Northwest Heights area. Get a high really. I haven’t seen this stat, but it’s Northwest

Tego (13:07):

Close. It’s eight seven one two one and eight seven one two. Oh, those are the, the two, the two hottest. Well, and they’re both in that same part of town.

Tracy (13:16):

So those are West of the river and North of [inaudible] I 40 generally one of it dips a little bit South of the freeway.

Tego (13:25):

Yeah. So it, you know, and, and, and, and I can see why right there, you know, the reality is that part of town, the average price for homes for sale in that area around two Oh five versus the overall market where the homes are, you know, I think list prices are now two 60, two 86.

Tracy (13:42):

Yeah. You know, the other thing about that part of town, the (871) 208-7121, there are new schools there and new neighborhoods, new construct, a lot of new construction, the prices of new construction is higher, but it’s not always reflected as well from the, our numbers because not all the new homes are going through our multiple listing service. So,

Tego (14:04):

Okay. We’ve got a fun story here, Tracy. Let’s just talk about this. I, this came up in one of those, but let’s be honest. It’s kind of one of those, you know, clickbait stories, you know, that pop up and said, we did a survey and we found out, and what are the sunniest cities in the United States? And so

Tracy (14:20):

They did actual data for the national oceanic and atmospheric administration. So it wasn’t just a, Hey Tega where do you think is sunniest?

Tego (14:30):

Well, you know, it’s interesting. You’ve got the usual suspects, right? Uma, right. That’s number one.

Tracy (14:34):

Well, that’s not anything I would have rolled off my tongue, Yuma, Arizona. I mean, I’ve heard of it, but I’ve never been there. I wouldn’t have thought a human

Tego (14:42):

It’s pretty dry. They’re ready in California, which is, you know, in that same general vicinity kind of in,

Tracy (14:47):

I would’ve thought Phoenix, number one, if you’d asked me. Yeah, well, it’s Las

Tego (14:52):

Vegas and Phoenix in Tucson, all tie. Now that’s Las Vegas, Nevada. I know we have you know, it’s not Las Vegas, New Mexico, even though Las Vegas, New Mexico is lovely, but no, but Las Vegas, Phoenix Tucson, all tied El Paso was right there. Fresno. And I would have

Tracy (15:13):

Don’t don’t think of Fresno as sunny

Tego (15:16):

As farm country, right?

Tracy (15:17):

Yeah. I guess it’s, it’s a little inland. I don’t know.

Tego (15:20):

I guess it’s the irrigate I’ve never been there. So I shouldn’t, I can’t talk Reno. I thought that was interesting. Again, we’re talking to sunny cities in the U S going down the list Sacramento, again, one of those inland California cities. I wouldn’t really thought that

Tracy (15:34):

Then it sounds like just ahead of key West Florida, number 11. So

Tego (15:40):

It’s interesting. Everything in the top 11 are all Southwestern cities. You have to get to number 12 before you hit, he hits Florida, Florida. So I thought anyway, interesting. Look that Roswell’s number 15. Pueblo just up the road is 13. So you know, some of our neighbors around here, I mean, the reality is people like New Mexico because of our weather, right.

Tracy (16:02):

Our four seasons, our sunshine, and it doesn’t get too cold and it doesn’t get too warm. So it’s pretty good

Tego (16:08):

Us that grew up in the Midwest. Tracy, we can still have our seasons here and they’re perfect, but yeah,

Tracy (16:15):

I don’t miss some of the seasons from the Minnesota days. Don’t you know? Yeah, yeah, yeah. Okay.

Tego (16:23):

So Tracy, I wanted to talk about let me pull it up here. Hold on one sec. Here is I’ve, I’ve heard this and I don’t know why this keeps coming up, but why people think you need 20% down to buy a home?

Tracy (16:38):

You know, I heard people this week, somebody on our team asked the rest of them, said, how do I tell somebody, no, you don’t need 20% down to buy a home. And I’m like, really people still think that, and this was millennial, this was millennials that felt like you couldn’t buy without 20% down. And it wasn’t wise, even if you could buy with less than 20%,

Tego (17:00):

If you’re a fan of Dave Ramsey, obviously the financial guy. I mean, he, I mean, that’s his thing, right? He says, put 20% down and do a 15 year mortgage. Now, I don’t know if he still believes that with a 3% interest rate, the money is so cheap. I mean,

Tracy (17:15):

Yeah, but he doesn’t believe in debt. He doesn’t, he doesn’t believe in debt or credit cards. Right. So it depends on who you’re listening to.

Tego (17:23):

I think part of his thinking is he deals with so many people that get themselves in trouble with debt. That may be that’s part of his paradigm. Yeah.

Tracy (17:31):

I think, I think he realizes there are a lot of people who can’t manage a credit card or finances. And so they just have to like, not, it’s just cut it, cut it all off and pay it all down and don’t open up credit cards again or have debt, however, with interest at 3% and sometimes below. Yup. I don’t know, locking in a monthly mortgage rate right now, even if prices are up is still a great time to be a buyer.

Tego (18:01):

I think so. And, and I, you know, had this conversation with another realtor that was saying, well, what do I do? You know, I don’t know how to tell my buyers because I’m afraid they’re going to overpay. And then I’m going to have to sell the home for them last year. And I’m like, well, hold on a second. Do they need a place to live? Is this is what homes are selling for right now. Okay. Do we know what’s going to happen in the future? You know, so I mean, it’s like, it’s tough. Cause Tracy, we went through 2009, 2010, 2011, when people were having to sell their homes for $50,000 less than they paid for them. Right. I mean, we saw some of that. I just do not see that in the card anytime in the next few years, I just don’t. I mean, we’re going to have a slowdown. Absolutely. I just don’t see a big decrease in, in home prices anytime soon. Right.

Tracy (18:55):

So it’s a big myth, 20% down for buying a home is a big myth. I really took that off track. Yeah. Getting back to where we were at,

Tego (19:03):

Getting back to what we were actually talking about. So this study, Tracy want to talk about that it was a profile of home buyers and sellers that national association does. And they said, you know what, actually people really put down

Tracy (19:14):

And what they really put down first time, home buyers about 7%, which is interesting because three and a half percent down is an FHA borrower loan minimum. And a lot of first-time home buyers are FHA borrowers with 3.5% down. But that means there’s a bunch of them that are putting 10% or more down, which is great. And hopefully, hopefully families are helping them if they don’t have more than three and a half percent down in their gifting, them that money so that they can have more equity in their homes. Because yeah, I’m saying if you’re in a position to give to what a better gift you can give your child than to build wealth through you know, through real estate all home buyers though, it’s a average of 12% down, down payments. So the 20% hasn’t come in yet 20% doesn’t even come in with repeat buyers they’re at 16%. Yeah.

Tego (20:08):

So it’s, it’s, it’s interesting. And you know, the reason and just to clarify, why somebody would want to put 20% down is because of mortgage insurance, right?

Tracy (20:18):

Some loan programs. So mortgage insurance is something that’s insurance, that’s money that’s paid. Every time you pay your payment, that’s given to a company that’s ensuring to your lender, that if you default and stop paying there, they’re responsible, not the bank or the lender. Right.

Tego (20:34):

Right. And so, you know that financially, that does make sense. Because you, now, you’re not having to pay that if you have the wherewithal to come up with the 20% down payment. Right. But there’s

Tracy (20:48):

The great VA loan, right? The, the VA loan is the best loan out there. And there is no mortgage insurance on that. And that, and there shouldn’t be no, it’s a benefit to our veterans that qualify for a VA loan. There’s no down payment required and no mortgage insurance. So it’s a great loan. Great, great. Yeah.

Tego (21:07):

Th th that, that is by far the best program out there and

Tracy (21:11):

Everyone qualifies, qualified to do your time.

Tego (21:14):

No, Tracy, what other, I’m going to do this as a, as a, as a, as a jeopardy question test. What other program in New Mexico is available for zero down payment and they are out there.

Tracy (21:28):

I know the answer, it’s the USDA for rural areas in some rural areas are in Sandoval County are in Valencia County are in Torrance County. Yeah. I don’t know that there’s any in Bernalillo County,

Tego (21:41):

Bernalillo County, but Santa Fe County. So you get out to Edgewood. If you go to the East mountains, Moriarty you know, down South, like you said, there’s, there’s areas where you can get those USDA programs in there.

Tracy (21:53):

It might be better to do the FHA though, versus that, you know, it just kinda depends, but getting a great lender to help, you know, the difference and pick, help you pick which loan program, you know, a lot of times buyer buyers have no idea, you know, that there’s all these different loan programs and it takes a really good lender to talk with them, to find out what product is going to be right for them. Yeah. So Tigo, yes. March will be here before we know it. It’s going to blow in right. Our windy season. So March

Tego (22:24):

The March is going to mean it’s mean that we’ve been in this for a year.

Tracy (22:27):

I know. Well, we’re almost there right now. That’s right. So we sent our staff 15 shall not be mentioned. Yeah. Yeah. So March starts our busiest season for people putting their homes on the market to sell. I would say, let’s talk sooner than later, give us a ring four, four eight, eight, eight, eight, eight. And let’s talk sooner about what your goals are for putting your home on the market. This spring, we know that mid to late March is when things really heat up here and houses come on the market. We have a lot of buyers waiting. You might want to beat that rush, or you might want to have that list of bullet points that you want to do before you get your home on the market. We’d be happy to be a part of that and talk through it with you. And you know, really April may are our busiest months for selling homes. So if you’re thinking you’re going to sell your house, you know, July, you might want to move that

Tego (23:25):

Well, 10 and really a lot of the pending start kicking in, in March, March.

Tracy (23:32):

Exactly. That’s what we were just talking about. So, so let’s talk. Yeah. If you were busy looking at something else,

Tego (23:38):

Looking at this new listing in the North Valley that I think we need to talk about, it just

Tracy (23:43):

Has Saturday. Yep. 11 to one, one Oh four [inaudible] road pick Kenya road is close to rent Chitose road and close to Edith, then second street. Yep. It’s 350,000. And I think it’s just under an acre yeah.

Tego (24:02):

Point eight, seven is what I’m seeing here. Yeah.

Tracy (24:06):

To, you know, 2200 square feet Northern New Mexico look house a two car garage. You know, it, it has five bedrooms though. So if you’re looking for something in the Valley and it’s pretty easy to get in and out of the Valley from there Paseo Del Norte stays right there. And Tanya’s not too far. Oh, Suna. Yep.

Tego (24:25):

So it’s open

Tracy (24:27):

House Saturday 11 to one,

Tego (24:30):

I’m going to say, well, there’s not a lot to choose from there. And I realized, well, there’s not a lot to choose from anywhere right now. So yeah. But it is, it is a nice one. If you do want that kind of rural feeling in the city, you know, if you don’t, if you’re not familiar with the North Valley or corral us, for example, you get that rural kind of New Mexico feel, but you’re kind of right in the middle of suburbia, which is kind of odd, but, but you know, that’s why people love, you know, the North Valley and Corolla, right.

Tracy (24:56):

Ditches nearby to walk or walk your pets or whatever. So that’s the only open house I know of for this weekend and, you know, Sunday, Sunday, Sunday, Superbowl. Right. So we know that starts early on Sunday, getting things together and having, having yourself ready and watching all the pregame and watching my guy, my home’s come out. Oh, sorry. So we’re, we know that,

Tego (25:20):

Hey, I’m going to root for the old guy Brady. Cause you know, I gotta, I gotta stick with the old guys. Okay. He’s he’s way younger than me, but he’s still an old guy as well.

Tracy (25:30):

It’s a very interesting matchup for sure. You’ve got young ma Holmes and Tom Brady. So it’s going to be interesting even though if your team isn’t in it and I know a lot of the teams are not in it you can still be interested in it just because of the repeat possibility of the up and coming chiefs and Tom Brady at a new, a new organization. So it’s pretty exciting. So we don’t have any open houses that I’m aware of on Sunday, but it could happen. We could have somebody that wants one,

Eddy (26:03):

That’d be a good event. Something where you could do, are you ever raised for bowls Sunday to have like a, the morning super bowl before everybody goes and a great marketing Floyd? I don’t know.

Tracy (26:14):

Yeah. It’s possible. Yeah. Open houses early 10 to 12 or something. Although Saturday we do have two open houses. It just dawned on me besides that one, once somebody is holding the one on it’s a name, it’s like a woman’s name from 10 to two. And then another agent on our team is holding it open from 77 21 Roberts. It’s a man’s name. Right. Roberts tend to tend to 12 and 12 to two. It will be held open.

Tego (26:46):

That was impressive. How she pulled that out. Right? Eddie, you just like, like out of the, out of the search search and the hard drive for it,

Tracy (26:55):

77 21 Roberts is going to be a great house in the Northeast. It’s a four bedroom on a third of an acre. I think it’s near like Paseo. And let me just see Wyoming. Yeah. It’s it’s the Southwest corner of Paseo and Wyoming. It’s a, it’s a nice, good size home. So that one’s going to be open Saturday 10 to two with two different agents. So that is typically kind of by appointment. So you might want to call us if you want to schedule a time. Cause those that’ll be the first showings for four, eight 88, 88.

Eddy (27:33):

Yeah. Well we got to go places in the market where he just started the show and then yeah. They’re all appointments and they’re all offered. That’s literally where we are right now, right? Yeah.

Tego (27:41):

Yeah. A hundred percent at EA. It’s just it’s you know,

Eddy (27:47):

So wait, wait, let

Tego (27:47):

Me tell you this one story. I know we’re out of time, but we’re going to go over anyway. So, so we put one active Thursday night, meaning meaning active in the MLS available for, for agents to start scheduling it.

Tracy (28:02):

We did it Thursday night, but they could start scheduling on Friday.

Tego (28:06):

No, they started scheduling on Thursday night for Friday. Within one hour of that Thursday, making an act of there were 20 appointments for Friday to see this home. And

Eddy (28:17):

So we got to a contract that one only had eight,

Tracy (28:22):

But, but the, the showing system that the board uses now only allows you to schedule half hour increments. So you can’t overlap. So I think we could’ve had more showings if, if they were allowing overlapping showings.

Tego (28:41):

And I know it was that beautiful marketing and merchandising that made the difference to Eddie

Eddy (28:46):

Call it. What, what were you getting over talk all you want to leave any money on the table? In a COVID environment they’re going to you one family or one group. We go four, eight 88, 88 does or four, eight 88, 88. Welcome home, maybe.com. That’s the website. You go to Tracy. Thanks for joining us here on a Wednesday.