Eddy Aragon, the rocket talk. That’d be here with you for another edition of new real estate. Talk with the Ventura receipt from Keller Williams Realty. All you have to do is pick up the phone and dial them directly. Or for age 88 88, that’s four four eight 88 88. Or of course you can go to the number one real estate website here in New Mexico as well. Tom. Welcome home. Abq.Com. Don’t forget, you can find us on Roku, fire, Apple TV, and download our apps as well. Take a Tracy. Good morning. Good morning, Eddy. It’s Easter. It is happy. Easter happy, Passover and happy
Friday and good Friday.
Yeah, we’re here into, we’re here into spring in April and a year away from all the stuff, the bad stuff. And now we’re looking forward at all the good stuff and there’s a lot of good housing data. We just wrapped up a big month. There you know, the human computer, we have the doubts 3000 for my show. And here we have the Tego 9,000 for his show with all the drill down on the data. Don’t forget folks. You can get this information by just going directly to their website. Welcome home. Abq.Com. Sons’ the personality of course, cause Tega and Tracy have great personalities. Go ahead to go. Awesome. Well, thanks. I don’t know if I can be ahead of Dow though. Come on now. Really? I mean, now I don’t know. He’s he’s a computer. He knows. It’s like, I love how, when you’re just talking with him. Yeah. Doubt. What about that? And he’s like, Oh yeah. And then he just rattles it off. Like, you know, he just knows. All right. Let’s drill down a week as well about rural buying. And while you may want to go ahead and look at some of those rural properties out there, that’d be a lot. Alright, thanks Eddy. And you know, we’re going to talk about this new program, Tracy, that I’m super excited about.
Yeah, really good rent to own lease to own. And it’s a really great property that, or a great program that we just started offering this week. So that’s getting to help a lot of people get into home ownership or maybe just find a rental. Cause they’re hard to find right now.
Yeah. Yeah. It’s a really, really unique program. It’s one of those things where you hear about it and you go, what am I missing? This is too good to be true. Right. But once you understand the, the, the big picture of it, you’re like, Oh, well this makes sense for everybody. It’s a win-win win. Yep. So well we’ll, we’ll just tee that for now, but, but Tracy, first off we got to talk about March,
Of course, this data medic here. How could we not talk about March? So March is typically the kickoff to our biggest selling season, right? We start getting some warm weather. We had some snow. We also had some warm weather in March. So the warm days really get people thinking about housing. And what happens
Traditionally is the homes as home start to come on the market, usually seasonally, we see most people start listing them in March. April is usually a huge month, month for homes coming on. The market may is usually a very strong month for new listings or people, you know, saying, okay, it’s time to put the home on the market. And of course last, you know, April, halfway through March and of course, April and may last year
It was a bust. We were, we were shut down pretty much. I mean, it was a big, we were all home trying to figure out what was next. Yeah.
And so what happened was there was that big pause in a number of homes coming on the market and just statistically, we’ve just never caught up. And so now we’re down to this just ridiculously low number of homes available and anybody that’s in the market or, you know, paying attention to it at all. Especially if you’re a buyer, you know, it’s, it’s, it’s tough out there cause good homes are going. I mean, literally we’re not even talking days on market, right. We’re talking hours on market. And in many cases, especially those really great homes that are ready to go. Right. Exactly. Why are you laughing at me?
I’m laughing because we’ve been trying to buy a house ourselves. Oh. And you know, experiencing it from a buyer side. Right. You’re laughing, you’re laughing because every time we work, you know, I think every time we are buyers or sellers of properties, which we do we experienced the same things, our clients experience, and it’s hard, it’s hard to be a buyer. It’s hard to be a seller. And I really appreciate that we do buy and sell houses. And even if it’s a house that we’re going to keep as a rental, or if it’s one that we’re going to have as a second home or something, it’s still, it’s, it’s a tough process to
No, it is in, yeah. Yeah, for sure. And it, it’s interesting that you get, you get to put yourself in the shoes of our clients and what they’re dealing with every time. So so a couple things that really, I just want to hit on it. We’re just like I was joking. I don’t know if you saw my Facebook live. Of course you watched my first of course you did.
I liked it. I don’t think I know I watched it. I’m just teasing.
You knew what it said. Yeah.
I know every day after coffee, everything that’s going on in the real estate world.
Yeah. The, the thing I was joking about, I said, I, I said, well, I’m not going to do that. I looked at it on the first and I said, well, I’m not going to do this on the first cause everybody just think I’m joking. Right. April fool’s joke. But then the one that really resonated or jumped out at me was percent of list price, Tracy. So this
Last list price.
Yeah. So that’s a stat that, you know, you and I, and, and anybody that’s, you know, experienced in the real estate market pays attention to and what it is is, and it gives you an idea on an average, how much homes are being discounted off of the list price when they closed, when they
Go into closed status
To final sale price. Right. Right. And it has, it’s an all time high. It’s not only an all time high it’s over a hundred percent. Oh boy. For the first time ever, even, even if we go back to, you know, Oh five when things were kind of insane it’s over a hundred percent. So, so on average homes are selling over list price across the board.
Right. An important thing for home buyers to know. Right. If they think that they can go in and make an offer on house and get something below list price accepted, it’s probably not going to happen. Well, let’s be
Just fair about that because there are homes that go on the market and they’re just priced too high. Right. Right. And so, yeah. I mean maybe, you know, but, but,
But the average is that they’re selling for above what they’re being listed for. So important thing for buyers to know. So as they’re planning their strategies with their realtor, they know what, what the market’s like,
Just, you know, I think this kind of goes without saying average price, median price, average price per square foot. All of them are at all time highs in our market. Average price per square foot is the one that I really like to watch because there’s a better gauge of, you know, how the market’s moving and average price per square foot. Now for March close link closings was $155 per square foot. And you put that in just perspective March of last year. That’s 14% less. I mean, higher.
Yeah. You know, what’s interesting about that. When you think about 155, a square foot, you can’t build a house for 155, a square foot on land right now. But when you watch those TV shows on Bravo or wherever, you know, million dollar listing, New York million dollar listing LA or all those other home shows that are doing house house shows, buying and selling. I mean, sometimes they’re talking like 1500 a square foot on those shows. Right. So when you think about affordability in New Mexico, compared to a lot of States around us, including Texas, Colorado, Arizona, our homes are way more affordable without a doubt.
Yeah. I mean, if you look at comparable markets to us, Phoenix, Tucson, Colorado Springs, Denver yeah. San Antonio. I mean, I know people are going to say, well, that’s not really the same as like, okay. But, but I’m just saying, you know, from an affordability stand point, we’re not talking affordable housing, but just an affordability standpoint, we are still better than most of those markets. The only one that’s better than us as LTL
And affordability means how much of take home income you have to use towards housing.
Yeah. And to clarify that, that that’s based on the median income of the market too. So it’s gauging it to what the median take-home income is in Albuquerque to clarify that. Yeah. Yeah. Because it’s not the median take-home income in Manhattan. Right.
Right. But when you look at Denver, you know, how much of their take home they have to use towards housing versus how much of our take home, you know, it’s, it’s still very affordable here even with prices up.
So a couple of things I wanted to mention to folks, if you know, you want to geek out on market data and look at some of the trends you can, you’re laughing. Well, Hey, that’s what I do. I geek out on market data. If you go to our website at welcome home, abq.com. It is our main website. We have a couple of websites, but there’s a tab called market and I’ve got all kinds of stuff there. I’ve got it by month, by year, by longterm trends, by weekly trends, you can see it all there. If you want it
By neighborhood. Can you go in, dig down to, so if someone wants to kind of look up generally their area of town
By zip code, by zip code, by zip code, you can, you can dig into zip code, you know, and that’s like, we’ve talked about, okay, what’s the hottest zip code in Albuquerque. We were saying a seven one 21. Right. Is, is the, the tightest supply versus demand in the whole market right now. Right?
Right. So we have a house that’s available here over Easter weekend, came on the market ready for showings. It started showing on Friday and they’re going to look at offers on Tuesday. So you do have time. It’s in Rio, Rancho 1561 hour road, North East, it’s on a half acre. It’s just, it’s just over 1700 square feet, three bedroom, two bath, nice Pueblo style home. TWA is just North of Northern in unit 17, just West of five, 28.
People kind of know where that area is, but yeah, it’s just, yeah.
So that one’s a three 24, 500 and that one’s available. I believe there’s no open house because of Easter weekend, but if you want to see it, give it a S a ring four, four eight, eight, eight, eight, eight, and we’d be happy to schedule a time for you to see it. We do have quite a few houses coming on the market, right this next week. Next weekend is the statewide open house splits. So we have a lot of homes that we’ve kind of kept in the hopper waiting for that. So you can go from house to house next weekend. So if you have a house that you’re looking for, give us a ring, we might have it coming and we can get you the information on it.
I talked to a lot of realtors every week, just kind of seeing what’s going on. And I’m hearing that, that there is there are homes coming. There are homes in the pipeline. Thank you for fixing grammar. That was, that was clunky. Yeah, I know it. And so, yeah, let’s, let’s,
We’ll talk, we’ll be good. It
Would be really good. You know, there’s a lot of buyers out there waiting. There’s a lot of people that want to move that just haven’t been able to. And so maybe this will get things flowing so people can, you know, move on to their next part of their life. Okay. What do we got?
Let’s talk about the lease purchase program. We have a lot of people call us that are looking for rentals, or they’re looking for lease purchase. They’re looking for some creative deal that maybe because they’re relocating here and they don’t know what neighborhood they want to buy in yet. Or maybe because you haven’t been in your job for two years, the same type of industry. So you can’t get a regular loan yet, or for whatever reason you are, aren’t in a position to do a full purchase, but you want to lock in a home, right? We have a great new program and it’s basically you lease it. If you love it, you buy it. You lock in your rent rate by year for five years, you lock in the price of the home as it goes up over five years. And at any point during that five years, you can convert it to a purchase. And the price you pay for the house is predetermined upfront.
So just to make this clear, the, the, this program, that’s a company that’s been doing it now for many years, they will actually go buy the home.
Yep. You pick the house, you go shopping,
You go shopping, you pick the house, they buy it with cash, you rent it from them. And once you’re renting it, you’re going to know what your, what your rent, your monthly rent is going to be. You’re also going to, and there’ll be escalations, you know for up to five years, obviously. And it’s three, three and a half percent. It wasn’t a big, I mean, just normal, you know, rent appreciation. But at any time during that five-year period, you can buy the home and they were calling it. Or I saw a thing that was called. It was the, the lease. It love it, buy it program. That that was interesting.
Well, of course you get to pick the house. So you believe you’re going to love it. Right? And sometimes you get in a house and you don’t love it for some reason, right? It might have a neighbor with a dog that barks all night or whatever. For some reason you don’t love it, but you know, you get to move in rent. It you’ve picked it. They buy it for you. And in this competitive market, we have some people who have been unable because maybe they’ve got a loan program that isn’t favorable right now. And they keep getting beat out by cash buyers. So now you can put the power of them as cash buyers behind you have them buy the house, you move in, and then you can choose how you want to take it from there. So it’s a great program.
And this is not, I understand that there’s a lot of little things you have to understand about this. So we’ve, we are, we’re certified to, to help people with this program. There is a process, you know, obviously the person has to apply. They don’t have to have crazy stellar credit. They have to have at least five 80, I think,
Income household income above 40,000 a year.
Yeah. Those are the two big ones. And then there’s, you know, other qualifications. So the process is somebody would say, Oh, this, this might be just for me. I’m I’m maybe I got it. Well, who, who would this program be ideal for Tracy?
It would be ideal for a lot of situations. Like I said, so relocation people, people new in jobs, people who want to rent, who want to buy, but for some reason they need a year or two before they’ll be in a position to be able to buy. And it’s, it’s a great program. You know, part of the beauty is you’ve already moved in, you’re renting. You can convert it to a buy and you don’t have to move and pack up. Then, you know, have that disruption, disruption of your neighborhood and your friends and packing and moving, and maybe new schools and things you get to put roots down and know you can buy the house when you’re ready.
So if it’s and understand that not every home qualifies, there is a criteria that of the homes. But I think last, I looked at about 150 homes in our market that that would qualify that are on the market. Again, these are homes that are currently on the market that this company would just come in and buy. And you, you lease it from them. So if you’re interested in this or, you know, know somebody that’s interested in this, have them reach out to us so they can talk to one of our people that are specialists on this program. And we’re at of course, five Oh five, four, four, eight 88, 88. And that’s a Venturi Realty group with Keller Williams Realty.
Let’s talk about rural properties. Yes.
I’ve got some, I’ve got some great notes on that because with the way the market has been Tracy, you know, people are starting to look out a little further, maybe because of COVID people are going, you know, I need a little more elbow room. I want to move out. I want to get out of the city. And, you know, around Albuquerque, we have a lot of good options.
And some people know that they don’t have to go back to work in a building. They can work from anywhere. So we’re seeing people take advantage, move out a little bit further because they don’t have to do the daily commute.
The commute is not as important anymore. So first off, Tracy, what are, what are, if somebody’s thinking about first off, let’s talk about the areas of the Metro Albuquerque that we kind of call rural areas. What would you say?
Well, Edgewood, Moriarty, Berlin, really all the East mountains, all of the East mountains, they’re rural, you know, there’s also Santa Fe area in Los Alamos area. And so, you know, to Espanola Ribeira up to Las Vegas, you know, just whatever rural properties there might be. Yeah.
It’s just kind of, you just start getting out outside the Metro itself. Yeah. Some of the rural properties
We’re talking about might be in a town versus out in the country.
Well, you think about the South Valley or Valley farms as we call it, there’s some great rural properties down there. There’s Corolla. So there’s the North Valley, which even though they’re kind of in the city, you still get that rural feel. Right. And you’re dealing with some of the things we’re about to talk about, which are you know, w what are you looking for, right. That would be the first consideration. Right. What would it be? It’d be, you know, do you need space for the animals?
Are you looking for barn storage, you have a hobby or collection, and you need that. Right. is it for animals? Is it for privacy? Is it just, you need a big view wide open spaces. Yep. Yeah. Sometimes we like what we grew up.
I just need to make a side note. We have a home listed for sale in a Stanley right now, which is North of mariachi Moriarty, and it’s wide open spaces, but it was a 78 acres, a Homeland, 70 acres, all fenced. And yeah. So, I mean, there’s, you know, and really, that’s not that far you know, from Albuquerque. Right.
And you know, some of those properties are for farming, you know, especially the Estancia Valley. Right. They’ve got the Pinto beans, they’ve got sweet corn. There’s the whole pumpkin patch out there. So, so the other things that you want to think about on rural properties is what’s the water source. Is it private? Well, are you still in some sort of community water or is it, you know, city or village type water so they can vary.
We do live in the desert and, you know, you have to figure out the water situation. And I I’ll hear people say, Oh, East mountains, you don’t want to go out there because you know, those Wells, those Wells have problems. Well, ease mountains is a huge area. So it just depends on where it is. And, and having somebody that’s familiar with the East mountain areas like Melissa Romero on our team, she grew up out there. She’s an expert in that, that part of the world. So Wells and or private water systems, right? Yeah. Yeah.
What else? Power, you know, what, what is the power situation? Do you have reliable power and backup sometimes do you know, having backup generators are pretty important when you’re in a rural area, right. If a wind storm comes through and you lose power, it could be a couple of days when there’s only one person to fix the line for versus 10,000 people who are without power. You might not be top person on the totem pole.
Yeah. And a lot of the close in areas, you know, South Valley, Los Lunas, you know, Valencia County East mountain, most of that is P and M still, except there is a central New Mexico electrical co-op,
There’s some rural collapsing, which,
Which is more Torrance County and down in that area. So, yeah.
So the other thing you see in rural areas, Tego septic systems,
Septic septic. So septic jet, I mean, obviously these areas we’re talking about that are kind of outside of the city have, you know, you see septics a lot. I can only think of some areas in the East mountains, like Pako has their own water treatment system, right. For the most part in the East mountains, you’re going to be having a septic.
Right. Right. And septics are, you know, they’ve been around a long time. They are pretty simple technology and they work, you just have to maintain them. And they work really well. The other things, you know, is there a natural gas, are you on some other form of propane propane, so propane tanks that you can lease or you can own, and having reliable companies, you know, you can get on a maintenance schedule for propane and that nice truck just comes down your road every once in a while and make sure that they top off your propane tank. So it’s, it doesn’t ever have to get too low.
So a couple more things here, Tracy is the actual w when we sell a house, that’s in a subdivision subdivided neighborhood, you know, let’s call it track neighborhood development point. There we go. Thank you. You know, the survey, it’s pretty clear where the property lines are. You still need a property location report when you, when you sell the property. But when you’re out in the rural, you may want a state survey, right?
Put you on the spot here,
Do a steak survey for 70 acres. It’s going to cost a pretty penny. Right. some of, some of the land in the rural areas is by meets and bounds. And some of it’s, you know, just identified by markers and things, but it kind of depends, you know, why do people need a steak survey? A lot of it is because if there’s fences the fence lines, aren’t always on the property line.
We’ve seen that in. It’s just one of those things when you’re, when you’re looking at a property that maybe is out there the survey’s going to be something that’s going to be a bigger consideration. And again, that’s in a, a subdivided neighborhood with, you know, block walls between each house.
We should get a surveyor to be on because we have this question come up a lot. Yeah.
Yeah, the road. So a lot of times you’ll have private roads and, you know, who’s responsible for that. Who’s going to maintain it. You know, sometimes it’s public, sometimes it’s public. And if you’re in the mountains, maybe they don’t plow it. It’s like on the third tier of, of what gets plowed when it snows. That’s another thing you know, something we didn’t talk about when we were talking about water, Tracey was shared Wells. Let’s just hit on that real quick. Cause I think that’s that we do see quite a bit
So shared well is where, you know, to split the cost of putting in a, a very deep, well it might be that more than one house uses that one. Well, I’ve seen up to five, I think, in the East mountains on one. Well, so maybe one builder has five and they do one well, and they have it for all the properties. So typically what happens is the homeowners, each pay a portion of the electricity to pump the water up. But obviously the water’s free. Well, right. Well, equipment, right?
So everybody shares in the cost.
The pump goes out, everybody shares in the cost of it.
What’s the name of the neighborhood up here off the lose the road going up to Lulu’s in San Diego. No, no, no, no, no, no, no. The one that has the community water system. So it’s a small, small, it’s not a big neighborhood. Vista something. I can’t think of it anyway. It, it has, you know, there’s maybe
In, you know, 50, some homes are built. Some are a lot, but it’s, you know, if you take the road up to Lulu’s toward, at the top going up toward Lou’s and you take the turn off, what’s the name of that neighborhood? It’s driving me crazy. Sorry, everybody. Okay. Tierra, Monte, thank you. So there’s that has its own private water system. It’s not really a shared well, but it is only, I don’t know how, what 50 properties in there, maybe something like that. Okay. All right. So loans, when you’re doing a loan in rural areas, there’s opportunities, but there’s also challenges. So the opportunity is USDA loans, right?
A hundred percent loan for rural areas to make sure that they have funding to buy those rural properties. One of the things that comes up is like speaking of water, some of the properties that we deal with have no water source. They just have holding tanks for water. And so they have what’s called hauled water, right? We’re a, literally a water truck comes in and fills up their tank every once in awhile. And a lot of the lenders, traditional lenders don’t lend on houses that have hauled water. So we have to get, you know, really talk to lenders to make sure that they cover those areas. But then also that it’s common for the area. So if all of a sudden you’re in the North Valley of Albuquerque and they don’t have a well, and they’re not on city water. And they say, no, we have hauled water, a tank. Nobody would lend on that because it’s not normal for the area. But if you go down to [inaudible] or Tory own, or you know, places that are a little bit rural, especially on South, is it three 30, seven and South 14,
I still call it South 14,
South 14, but there’s also three 37. They kind of come together down there. And your, your sorry. Yeah. But you know, hauled water is not uncommon in that area. So a lender would go, okay. Yes, but not every lender would do it. So a little due diligence there,
Th the other thing on lending challenges, if you’re buying a a house with a large parcel, or maybe an additional parcel next to it, you may have some challenges. They may loan on the one parcel with the house on it, but they may not loan on an additional know parcel. Let’s say because it’s
Vacant land perhaps, and they don’t vent. They don’t have programs. Buying vacant land is hard to find loans. There’s only a couple and some of the credit unions that will,
It is, it is definitely a challenge. Although, well, anything else on that subject before we talk about vacant land real quick, even though we’re almost out of time, I think that covers it. Yeah. So, so vacant land, Tracy. I know you’ve been a land expert for years. You’ve sold hundreds and hundreds and hundreds of lots.
I’m in dirty boots right now to go. They still have dirt all over him from the lowland I was on.
Yeah. So first off, you know, obviously lending can be a challenge. Just real quick, what should people be thinking about with vacant land?
So I’m going to talk about vacant land that you want to put a house on. Now you’re not talking about I’m going to hold this vacant land and it may, maybe it’s vacant land. That’s really far out rural that doesn’t have utilities. So what I want to talk about Tego is land that you want to find right now to build a house on. We see a lot of houses going up a lot of custom properties. And, you know, we want to just say, be careful, do some due diligence. There’s a lot of things to consider that people don’t think about. You know, we, we heard a story about somebody buying a lot and
Beautiful lot. Well, great. It was a bargain
Bargain, beautiful San Diego Heights, like, you know, city lot. And after they bought it, they found out they had about a postage stamp size that they could actually build on
And very small. So it’s
Important to do the due diligence.
I think one of the most important things to do, if you’re going to be buying land to build on, if you don’t already own the land, which a lot of people do get a builder involved really early, don’t choose the land before you’ve actually talked to somebody that kind of gives you an idea what it’s going to cost to make that land ready to build. So,
Or get your architect or your drafts person to look at it with you. So some of the things, when we see, let’s say we talking about Valley land Corollas, Placido is a North Albuquerque acres, Southwest Albuquerque. You know, the places where we see a lot of people wanting to build custom homes right now, which goes out to the rural areas too. But some of the things to think about where are the utilities, how far away, what utilities are there there’s properties in North Albuquerque acres that are not close to utilities. There is no water. And North Albuquerque acres, the depth of Wells there varies greatly from one side of North Albuquerque acres to the other. It can be a 500 feet difference. Right?
Well, one of the things that we get, a lot of people calling us, you can buy a half-acre in Rio Rancho for $5,000, for example, even, even relatively close in, but it’s totally undeveloped, you know, to get, even to get a well, there is going to cost you 30 grand. You need electricity for
Well electricity. And so sometimes they say, well, it’s only a half a mile away and go, have you priced out what it’s going to cost to bring it there. So when you think about, okay, North Albuquerque acres example, again, there’s some streets there that have fire hydrants. And so people assume there’s water lines in the streets. And just because there’s a fire hydrant doesn’t mean that there’s a water line that you can tap into.
I think, you know, when we’re talking vacant land due diligence, extra due diligence is definitely an order.
Yeah. We’ll talk about it again because there’s a lot of things that we didn’t get to. So
There is a lot of construction going on out there right now. People are saying, I can’t find a home, so I’m going to build, and then they go and talk to a builder and get serious sticker shock on what it’s costing to build today. Build costs have gone up. I’ve heard anywhere from 20 to 30%, just in the last year, just the build costs for new construction because of all the supply problems and labor problems and, you know, go down the list. So just giving everybody a heads up on that, don’t open that can of, you know, what, with me is something I know a lot about it. I know the real estate end and my dad knows the instruction. I gotta tell you. It’s just, it’s interesting. So I don’t say words. Yeah, here we go. As always the very best in real estate they’re Tego and Tracy Venturi, the Venturi real estate group, Keller Williams Realty. All you have to do is mention me the rock of talk and well, we’ll get a little bit of credit here for the radio station because we’re up there in Santa Fe and Los Alamos. And if were.
ABQ Real Estate Talk #360 April 3, 2021