Episode 501: Navigating the New NAR Rules and Beyond
Introduction: Big Changes and Cautionary Tales for Sellers
Welcome back to Albuquerque Real Estate Talk—this is episode 501, recorded in mid-August 2024. We’ve got some big changes to discuss in the real estate world, particularly concerning new rules introduced by the National Association of Realtors (NAR). We’ll also be sharing important information for home sellers, especially about a certain type of transaction that could cause problems if not fully understood. And for all you pet lovers out there, we’ve got some fun insights on how pets are influencing home buying decisions more than ever.
So, let’s dive in!
Home Seller Alert: Beware of “Subject To” Transactions
Let’s kick off with a crucial topic for anyone considering selling their home, particularly in New Mexico, where we see a lot of unique real estate practices. One of these is seller financing, which, although not common in many parts of the country, is fairly typical here. But we want to talk about something that’s been raising red flags—transactions known as “Subject To.”
In a “Subject To” deal, a buyer takes over the ownership of a property and assumes any existing mortgage without the seller having much recourse if the buyer defaults. The problem? The seller is handing over their property with very little protection. Unlike a traditional real estate contract where the seller can repossess the property if the buyer defaults, a “Subject To” deal leaves the seller with virtually no leverage.
We recently heard from a broker who struggled to find an attorney willing to draft a “Subject To” sale, which tells you a lot about how risky these deals can be. If you’re considering selling your property through any non-traditional method, especially “Subject To,” it’s crucial to consult with a knowledgeable attorney to ensure you fully understand the implications.
Shopping for Homes with Your Fur Babies in Mind
Now, let’s lighten things up a bit and talk about something close to many of our hearts—our pets! Did you know that 66% of households in the U.S. have pets? That’s two-thirds of us who are factoring our furry (or feathered) friends into our housing decisions. And it’s not just about finding a place to live—it’s about finding a home that meets our pets’ needs, whether that means a big backyard, proximity to dog parks, or pet-friendly neighborhoods.
We’ve noticed more and more clients prioritizing their pets when house hunting. We’ve had people turn down homes because the floors were too slippery for their dog, or because the yard wasn’t fenced. It’s clear that pets aren’t just influencing where we live—they’re playing a huge role in how we live.
And if you’re in the market for a pet-friendly home, Albuquerque has some great options. From homes with large, fenced yards to neighborhoods with nearby dog parks, there’s something for every pet lover. Search Albuquerque Homes For Sale
The New NAR Rules: What You Need to Know
August brought a significant shift in real estate practices, particularly concerning how realtors operate under the new NAR rules. The biggest change? Everything is negotiable, and it’s causing a bit of confusion.
Let’s break it down. The new rules emphasize that there is no standard or fixed commission rate across the board—it’s all negotiable. This clarification came about as part of a broader legal push to ensure transparency and fairness in how real estate professionals set their fees. In the past, there may have been a misconception that commissions were standardized, but this change makes it clear: what one realtor charges can differ significantly from another.
Another key change is that realtors must now have a written agreement with a buyer before showing any homes. This agreement outlines the fees and the working relationship, ensuring transparency from the get-go. If your realtor isn’t asking you to sign such an agreement, it’s a red flag—they may not be following the new rules.
Spotlight on Mossman Homes: A Blast from the Past
Let’s shift gears and talk about something nostalgic—Mossman Homes. If you’ve been in Albuquerque long enough, you’ve probably heard of them. These homes, built between the 1950s and 1980s, are highly sought after for their quality construction and timeless designs.
Mossman Homes are known for their solid build, hardwood floors, and classic ranch-style architecture. They’re a big part of Albuquerque’s mid-century modern charm. Neighborhoods like Stardust Skies and Bear Canyon feature many Mossman-built homes, and they remain popular for buyers looking for that blend of quality and character.
In the past year, 111 Mossman homes have been sold, with prices ranging from $259,000 to $698,000. Whether it’s the hardwood floors, the spacious layouts, or just the nostalgia, Mossman Homes have stood the test of time.
Real Estate Stats of the Week: How Are Homes Being Sold in Albuquerque?
Let’s wrap up with some interesting stats on how homes are being sold in Albuquerque this year.
Nationally, cash sales account for about 25% of all home sales, but here in Albuquerque, it’s a bit lower—around 14.5%. Conventional loans dominate, making up 60% of sales, followed by FHA loans at 14% and VA loans at 8%. Interestingly, seller financing, which we talked about earlier, accounts for just over 1% of sales.
One trend to note is the rise in assumption loans, where buyers assume the seller’s existing mortgage. While still a small portion of the market, this method has doubled in popularity compared to last year, reflecting the creative ways buyers and sellers are navigating today’s market. See more Albuquerque Housing Market Data.
Conclusion: Navigating Changes and Embracing the Future
That’s a wrap for episode 501! As we navigate these changes in the real estate world, it’s more important than ever to stay informed and work with professionals who understand the ins and outs of the market. Whether you’re selling, buying, or just curious about what’s happening in Albuquerque real estate, we’re here to help.
If you have any questions or need advice, don’t hesitate to reach out to us at the Venturi Realty Group. Thanks for tuning in, and we’ll catch you next time!