For this week…
- Buyer Wants. Buyers waiting for the right home in certain areas. We list them.
- Hot or Not. What areas and price ranges are advantage Sellers, and what areas are Advantage Buyers. See the Albuquerque area supply vs. demand charts.
“Homes below median are in much higher demand and in some case the MSI is half of the higher priced homes (for example, area 100 North Valley is about 2.5 for under $265k and 12 months for over is $485k). Hot areas (Low MSI) 21, 30, 32, 40, 41, 50, 51, 92, 102, 121, 140, 150. Not so hot (Higer MSI) 31, 80, 103, 130, 180.
Areas List… http://welcomehomeabq.com/albuquerque-mls-areas-map/
- In the News. January home sales strong. http://rismedia.com/2017/02/22/existing-home-sales-begin-2017-bang/
- NAR Buyer and Seller Surveys. https://drive.google.com/open?id=0B1AUMysOe4uROFdvZjRvTURFVms
- Homes of the Week. http://search.welcomehomeabq.com/idx/results/homes?idxID=b038&pt=1&fl=y&per=50&srt=newest
- Affordability compare to other States. https://www.nar.realtor/topics/realtors-affordability-distribution-curve-and-score
Earlier this month I did a quick update as well as the Q3 numbers. Here is a full Video Market Update Report including the HPI numbers for the 3rd quarter as well as a November 2016 update. Two big things I am watching… Home Price Index, and Supply vs. Demand ratio. The HPI has had a 4.49% increase through the 3rd quarter, largest move in 10 years, a healthy move. It will be interesting to see how Oct, Nov, and Dec come out. At this point it looks like we will end up at 5%+ appreciation for 2016 Y/Y. The Supply is low and if the demand trend continues, this could create some challenges. However, the fact the prices are going up will help some people who have been in the position of wanting to sell but having negative equity. As the negative equity goes away that can help bring more homes on the market.
We just received the latest Home Price Index numbers for Albuquerque and as expected… prices are up. For 2016 we have seen a 4.49% increase in the index through the 3rd quarter. The last time the ABQ housing market has had gains greater than this was 2006. The Albuquerque Home Price Index has averaged 3.9% since 1978.
I was looking at the home prices in the Albuquerque area and have this great chart that shows the Average Price per sqft. I like this number vs average or median price to get a better indication of appreciation/depreciation. Some takeaways… The avg price per sqft is at the same levels as Summer of 2006 and of Fall of 2010. The appreciation from 2012 to today is about 2.5% annually and from 2004 to 2008 it was about 7% annually. Tego
Albuquerque Real Estate Talk Radio – June 6, 2015
Eddy:Am 1600, KIVA; 95.9 FM. Brand new fox news ABQ here on 95.9 and 1600 and email@example.com and yeah, not just anybody, it’s Tego and Tracy. And this is the weekend Albuquerque Real Estate.
And Tego and Tracy have done plenty of stuff for me, in now both personally and professionally and they’re just great people and they’re doing a lot of things here in this community. I can’t thank them enough and you hear there at all the time and let’s give a warm welcome to Tego and Tracy. Good morning guys!
Tego:Wow! What an introduction there Eddy.
Eddy:Well, you guys are great! We appreciate that.
Tego:Well, we appreciate this platform and you know, real estate affects everybody so much, everything. I mean most people even if they are a renter, real estate is so important. Obviously, one of the basic needs of mankind is shelter and so… I know we’re getting pretty deep here.
Tego:Okay, I am! This Tego Venturi with the Venturi Team and Keller Williams Realty. We’re here every week with myself and Tracy Venturi whose been chiming in here. And, how is it going Tracy?
Tego:It has been busy right?
Tracy:It has been. It’s been a great week for real estate and meeting lots of new people which is always fun…
Tracy:And we love to come together to see Eddy and doer radio show. So we really appreciate the opportunity.
Eddy:I want to ask you one quick question before we get started. Last week one of the things that stood out in my mind was the fact that there had been and if you can restate that fact again because this a hot real estate market. Let’s say that, right?
It’s currently a hot real estate market; hotter than it’s been. It can always get better, right?
Tracy:Hotter than 7 years.
Tracy:In 7 years.
Eddy:Hottest in 7 years.
Tracy:We don’t need that big long description of…
Tego:Okay, come on!
Eddy:Because it totally stood out to me and I said, “There’s more houses that sold this Spring.”
Eddy: Tego as you said than have sold in…
Tego:Since 2007 basically.
Tego:The last time we’ve seen this many units or homes selling. I hate units, it sound so impersonal but that’s what it is. It’s a number of homes sold.
We just finished May. Now, we have the May statistics and we were up 10% in number of home of homes sold, this year May versus last year May.
Tego:Actually I take that back goes 11; it was actually 10% year today versus last year. And so, there’s less homes in the market. There are more buyers in the market. Obviously, there are more homes selling a good 10% bumps.
You know, there’s some increase. There’re some frustrations are too, right Tracy?
Tracy:There are! There are some neighbourhoods and some price points where we’re not seeing quite the activity. So with our hearing the news that things are really good and the market is hot and more homes are selling, however they’re not getting the numbers of showings and things and they’re not getting offers on their house. So it can be frustrating when they see the news.
Tego:Yeah. And speaking of the news; there was a journal article here this week. The headline was this was Richard Medcalf from The Journal, who is a real estate reporter over there and he does a good. He had an article here a couple of weeks ago, week so or ago and I think he does fair reporting because it’s local as oppose to sometimes they’ll pull in those national stories that don’t really to us regarding real estate.
But this one, he had some statistics from a company called Core Logic which is kind of a national real estate trend tracking. They’re saying that 3 1/2% gain in home prices which I just haven’t seen this. I don’t know how they’re coming up with that number versus last April, as the way you read it.
I mean, what I’ve seen in some other statistics or some others stores like FHA or what is it Tracy? The FHFA, who tracks. And they’re saying about 3% but I think if we say 3% gain year over year is kind of what we’re in right now, as it what it looks like.
Tracy:Yeah. Three percent is what’s healthy. If you look back 50 years in our market, 3% a year is sort of where we’ve been at.
Tracy:And it’s a nice healthy steady gain.
Tego:And of course we don’t see that month to month, because it’s a very slow appreciation. And one thing we have seen Tracy is homes are getting listed for sale. The increase in that list prices have gone up dramatically, not necessarily the sale prices.
Tracy:Right. And I think some of that is when you see headlines and you don’t read the fine print sort of. The headlines are the market’s great and people translate that into prices but maybe its home selling versus prices.
Tego:Yeah. I wanted to teach something because we’re going talk about Home Owners Association. I think there some confusions are Home Owners Association’s what they do versus Covenants, Conditions and Restrictions or what we call CC&Rs. And we’ll talk about that a little later.
Back to market data, one thing, one real bright spot is the bank properties also known as foreclosures, also known as real estate owned or REO property. Basically they’re homes that were foreclose in one way or another, came back on the market by the bank. This month or the May stat that 12% was the number of those properties on the market versus we seen as high. You know, we’re up at 30%, but this by far the lowest we seen in many, many, many years.
Tracy:Yeah. It’s great.
Tego:That’s a good sign because that also helps in stabilizing prices.
Tracy:It does and you know what we found when there were a lot of distressed homes on the market, the regular sellers had to compete.
Tego:Yeah. And there’re lots and lots and in just certain extent it’s very regionalize in certain parts of town.
Tracy:Yup. So one other thing we want to talk about besides home owners Associations, Covenants, Conditions and Restrictions or CC&Rs is appraisals. And just to cover it a little bit about what we’re seeing in the appraisal world.
Tego:So let’s go right into that one. I know we didn’t even list off our topics here. We’re just jumping right into them.
Eddy:That’s okay. We’re just following right along.
Tego:Oh, yeah sure.
Eddy:No, really. I wanted to say one thing before we start on the appraisal portion. By the way, this is Tego and Tracy Venturi, the Venturi Team. It’s Keller Williams Realty here in each every week, starting the real estate hour.
There’s a story in the Portland and they’re actually giving away pizzas now in order to try… it was kind of side story, right? And the side story was that there’s only X amount of months of inventory left because of the huge traction they’re getting.
Eddy:Four and a half months they said of all the inventory they have left in Portland, Oregon. And I thought, Portland always been a city that’s compared to Albuquerque in so many ways and I just thought that that I haven’t heard a story like that literally in years. And I’m just glad to hear some worthy country where there’s only that much inventory left in the market.
Tego:Texas manages. It’s booming in Texas. Even Denver is right up in the streets from us. They’re booming. And they just don’t have enough homes to sell. There are more buyers than homes available.
Tracy:And in Miami, those million dollar houses are flying off the shelves. Those 3 to 5 million aren’t but there’s still selling at it. Okay pace but they’re saying if it’s a million, two and under, they’re getting multiple offers.
Eddy:Wow! Looks exciting.
Tego:Yeah. And it’s interesting because I’ve looked at some of the stats, We look at like when we peaked out in Albuquerque, our market peaked out in May of 2007. That’s when we hit the highest prices we’d ever seen.
However the entire country peaked out in May of 2006. So, if you look at it that way, we’re basically a year behind the rest of the country in many ways. And we see that in a lot of things, right Eddy? I mean, not just real estate.
Tego:We see that many other things.
Tego:And nothing’s wrong with that. We’re the land of the Miñata. We’re okay with that, right?
Eddy:Yeah, we’re okay. We make it work here.
Eddy:And we can anticipate the things that are coming here too.
Tracy:We pay attention.
Tego:You know, last year a lot of the country had a lot of… you know, it’s booming like crazy. This year, we seemed to be seeing some of that as well.
Tracy, let’s talk about appraisals. This comes up all the time. Obviously, any each time a piece of property changes ownership, in most case is you’re going to have an appraisal. If there’s a loan on it, you absolutely are going to have an appraisal. If it’s a cash sale, you won’t necessarily have to have an appraisal. But, what is an appraisal? Why do we get it done?
Tracy:An appraisal is for the lender typically. So that somebody’s got the eyes and ears for the lender to say, “Yup, that’s a good loan to make.” Because the lender’s not going to go out and inspect the property themselves.
They might be underwritten in California, even if you’re doing it locally. They’ve got the appraisal process there that’s a third-party independent that goes in and says, “Yup. This house is worth what you’re buying it for.” Well, which brings up another subject.
A lot of people think it’s a shot in the dark that the lender doesn’t know how much the house is being sold for. Well, of course they know. They’re given the contract and all of their doing is saying, “Okay. This house is schedule to close for this amount. Let me look and see if that’s justified and I’ll tell the lender.
Tego:In general, they use the comparable method, correct? So they go back three months, similar homes in that neighbourhood, that area and then they make adjustments up and down based on square footage, amenities and stuff like that.
Tracy:Exactly. And the rebuild cost isn’t usually the method. We know that typically and it probably be more?
Tego:You mean what you paid for isn’t how they come up with that?
Tego:Yeah. And that’s first trade-in thing for home owners; like what you paid for it, unfortunately doesn’t matter. It wouldn’t matters for as what somebody’s willing to pay for it as well as what the appraisal can show that other people have paid for similar type properties, right?
Tracy:Yeah. What’s reasonable and what the lender would feel construable making a loan on.
Tracy:it’s good but the one thing that I wanted to bring up in addition is we have been having some appraisal problems for our home sellers.
Tego:And I put this way. You know, the appraisal generally is looking backwards. And, nothing against appraisals understands. They have a very difficult job to do.
They have very strict guidelines on what they can do. Obviously, with everything imploding in 2008. The appraisal guidelines got very strict and there’s a lot of over sight in that world. And that makes sense, right?
You know, large sums of money being loan. However, they have to look backwards and they only have to look at what things have sold. They can’t necessarily look out. Well, there’re five other homes on the market that are higher than this price but they can’t use it. They can’t use that to justify the price.
Tracy:They can’t! But I have seen sometimes where they’re putting active listings in an appraisal in situations where they aren’t enough houses within a one mile radius or whatever their criteria is. I know they can expand their criteria. They have to.
Tego:So Tracy when we come back we are going to talk about the Home Owners Associations. I know there’s kind of some pluses and minuses to Home Owners Association. We got a home on the week right?
Tego:You want to tease that right now?
Tracy:Oh, we got a great house in Ocotillo. We’re going talk about.
Tego:Ocotillo! And Ocotillo is up off Paseo Del Norte in North Albuquerque acres area.
Tego:Tune-in in here. We’re going to take a break. This is Albuquerque Real Estate Talk. We’ll be right back.
Eddy:Am 1600, KIVA; 95.9 FM. This is Albuquerque Real Estate Talk with Tego and Tracy Venturi, the Venturi Team from Keller Williams Realty.
Tego:Eddy, thank you. This is Tego Venturi with the Venturi Team. And we got right to so many topics; we didn’t talk about how to get hold of us. So if do want to get hold of us, Talk Real Estate, our realtor on duty line is in Albuquerque 505-933-6881. We also have that as a toll free number at 855-933-6881. And our website Tracy is…
Tracy:Our website which is really useful. It has great search tools is welcomehomeabq.com but what we know is most people just Google our names and they find our website.
Tego:Yes, we do. Eddy, you know all about Google Analytics and we’re tracking in all that fun stuff. Yup, yup, yup!
Eddy:Yeah. It’s not just the future. The future has arrived, it’s here.
Tego:It is here, for sure. So, yeah. We really spend a lot of time in the website to make a very useful resource for folks looking for homes, looking for market values, looking for what is the home down the street, the listed for sale for.
Tego:Tracy, we we’re talking about appraisals and valuations and valuation problems. Tell me which you meant by that.
Tracy:Sure. We are seeing some of the houses we were get an accepted offer with the buyers willing to pay and the appraisal is coming in lower than what the agreed upon sales prices.
Tego:Why does that happen?
Tracy:Well, for the reasons you said earlier, where they’re looking at past data and if the home prices are kind of edging up towards a little bit. They’re looking at past sales and that’s what they have to look at to justify the price. So it’s really hard for prices to go up quickly because the past sales are what the appraisers are looking at.
Tego:Right. And so what happens when you’re a seller or your buyer, put them on both sides in the appraisals comes in low. What happens?
Tracy:Yeah. There’re four or five things that can happen as possible outcomes so to speak. So the seller can agree to sell at the appraised price. The buyer can agree to bring money in to pay for the difference to buy at the purchase price that was previously agreed upon. Buyer and seller can meet somewhere in the middle. The deal can fall apart and people can go their own ways.
Tego:And one of the things in our contract that we use here in New Mexico, it does have standard language about that that basically, if the appraisal doesn’t match the contract price there’s basically an out option for the buyer or a new renegotiate option for all the parties involved, correct?
Tracy:Yup. We see it happening variety of ways because as the market is increasing a little bit in prices, buyers are willing to pay that new price and they are willing to pay the different between…
Tego:Right. Because when a buyer is out looking for home, they’re not looking out what stuff sold for, they’re looking out with this are for sale for. And so they are comparing to whatever else’s available for them to purchase, correct?
Tracy:Right. And they’re saying, “Hey, this was the nicest house out there and it’s worth what they’re asking or what we agree upon.” It’s interesting because we had [00:15:13:17] we put on the market in the Northeast, kind of by Trader Joe’s off for sale by the week and a half ago or less and we have three offers that we’re working at this moment on it.
That house we’ve said is hard to find. Four hundred and twenty five thousand, a very nice high-end, executive type home. But, you know right now, we’re going. There’s not a lot of camps…
Tracy:So we have to justify the price.
Tego:Sure. That’s one thing, again, that’s part of what we do as realtors; is we work through all these issues, right?
Tracy:We do. And what we know is that house that can’t find it anywhere else.
Tracy:If there were 20 of them for sale right now, we wouldn’t have three offers.
Tego:Be a different story. So, okay Tracy, let’s segway into this whole Home Owners Association. Questions came up this week. We had a client where they ask, “Hey! Is there a Home Owners Association here?” And we said, “No, there’s no Home Owners Association in this neighbourhood.”
That’s part of the disclosure process when you’re purchasing a home; if it’s a Home Owners Association neighbourhood that must be disclosed. But then, once we got under contract, you know, Tyler Company does the title search, which they normally do and they sent out the CC&Rs. And they’re like, “Well, I thought there’s no Home Owners Association.” It’s like, “Well, there is not. It’s different. CC&Rs are different things.”
The question came up; what is the difference between Covenants, Conditions and Restrictions versus a Home Owners Association?
Tracy:That’s a great question. Almost every house we sell has some sort of Covenants, Conditions and Restrictions. Just by nature of what the city code is.
Tego:Right. And so anytime a subdivision is put together in most cases the developer is going to record these CC&Rs as we call them Covenants, Conditions and Restrictions on that neighbourhood, correct?
Tracy:Right. And some of it is city codes. So it says, “Walls can’t be more than 6ft on the sidewalls or the back walls. Or the height of the two-storey can’t be more than 26ft.” And I don’t know if that’s what it’s still.
Tracy:But what it used to be that.
Tego:Yes. So you’re going to have the city zoning, right?
Tego:That’s going to dictate a lot of stuff and then you’re going to have the CC&Rs, way more specific to a neighbourhood.
Tego:And it can be stuff about chickens in your backyard, right?
Tego:And some other stuff.
Tracy:But, that’s a great example though. Chickens in your backyard versus having that Home Owners Association actually enforce it.
Tracy:Who’s going to enforce it if you have chickens and it’s in the Covenants, Conditions and Restrictions?
Tracy:You can complain to the city or the village or the township or county or wherever you are located.
Tego:What’s a Home Owners Association then? What’s their role?
Tracy:The Home Owners Association is an association to basically enforce the covenants and restrictions of the neighbourhood.
Tego:And then they offer additional amenities such as… let’s say you have a community swimming pool or you have a tennis court or you have some sort of facilities or you share in all the landscaping, the cost of all the landscaping in the neighbourhood or if you have a gate at your neighbourhood. Who is going to manage that? Who’s going to collect the fees to pay all for all those services?
Tracy:Exactly. So they’re the ones that are the body that’s supposed to be representative of the Home Owners and making sure that your neighbourhood stays nice and people are taking care of things.
Tego:Okay. So this is where we get in to the negatives and the positives about Home Owners Association, okay? Some people and we had these clients Tracy. They come to us and say, “I absolutely do not want to live in a neighbourhood with a Home Owners Association,” correct?
Tracy:That happens a lot.
Tego:And why do you think that is?
Tracy:They don’t want somebody telling them their trashcan has to be off the curve by 6 o’clock on trash day.
Tego:Correct. In most cases and correct me if I’m wrong; it’s because they’ve had a bad experience with a Home Owners or an HOA, right?
Tracy:I would like to correct you and say you’re wrong, but no.
Tego:Yeah. Oh, darn it, man!
Tracy:No. That’s exactly it. They had a bad experience with a Home Owners Association just kind of dictating and they feel like it’s their house, their yard, their land. But when you look at neighbourhoods that have Home Owners Associations, I know Eddy has a neighbourhood that’s maintained and beautiful and people keep it up. And if somebody leaves the car on blocks on the side walk or on the driveway, somebody’s going to ask them to take care of that.
Tego:To certain extent it’s more like I call it a police force but its group that going to mandate if you’re not taking care of your property, they’re going to send you a little love letter that says, “Hey! You need to pull those weeds under your front yard.” And that can be frustrating to people. But you know what? It keeps the neighbourhood looking great.
Tracy:It does, yeah.
Eddy:I actually love it until I’m the subject of the course.
Tego:Of course! Exactly! It’s just like anything, right?
Eddy:Absolutely it is, right?
Tego:Yeah. I want to speed until I get caught speeding.
Eddy:I get caught, right.
Tego:Yeah, yeah. Okay, no I don’t speed. No, I didn’t say that.
Tracy:That’s funny. Well, I want to get to our home of the week.
Tego:Yeah. Anyway, that was enough about Home Owners Association. What is our home of the week Tracy?
Tracy:We have a really great house and I said it’s in the Ocotillo subdivision. Ocotillo is a small in film neighbourhood that is by Trader’s Joes, northeast to Albuquerque by the Paseo…
Tego:And these are larger custom homes for the most part, correct?
Tracy:Very much so.
Tracy:Yes. On smaller lots. So you know, in that North Albuquerque acres.
Tracy:Area. And they’re not necessarily single storey, which is kind of I don’t know why I think executive of single storey…
Tracy:[00:20:58:21] Single storey because we have bad knees and backs from all the abuse we’ve taken on our bodies. So, Eddy wouldn’t know about that though, he’s still so young.
Eddy:Yeah. Oh, you guys are nice.
Tracy:So we have one it’s on Sand Verbena Trail and it’s in that gated Ocotillo neighbourhood that’s in Paseo Boulevard and it’s a single storey with four bedrooms, plus an office and it was built by Panorama Homes.
Eddy:If you’ve ever done parades over the last, parade of homes, over the last 10 years, you’ve probably seen a Panorama Home. They do a great job.
Tracy:They’re beautiful constructions; great to work with. If you’re looking to build a house, we can find that great builder like Panorama Homes.
Anyways, it’s 3500 sq. ft. It’s listed for $690,000, beautiful single storey, really great layout with a really plush master, backyard is very manageable. It had a nice little water feature.
Tego:Well, that’s a really good point because you can get the big lot, you can go North Albuquerque Acres and get that almost an acre but then you got to take care of it, right? In many times, it’s like having that nice larger home, executive home, custom details, but yet not having that huge lot that have to take care off, right?
Tracy:Correct. And this is house is in an HOA.
Tracy:And the HOA in this case pays for… you may pay in and its $40 a month which is really cheap, you go to big cities and a $40 HOA is non-existent. But its $40 and it’s gated. So they care of the gate and all the common areas.
Tego:Again, tell us the address and the price again.
Tracy: Sure. It’s 10004 Sand Verbena Trail…
Tracy:Yeah. So Google it. Go to our website and take a look at it. It’s $690,000. We’d love to show it to you.
Tego:Yeah. If you want to call us on that or anything else real estate related, we are at 505-933-6881 and then our website is welcomehomeabq.com. If you go to the homepage, there is a place that shows all our featured homes which are all the homes that we represent.
You know, we have one cool thing on our website I want to mention. We have “Real Time” Just Listed, right on our homepage. And what that means as new homes come on the market, they are displayed there and it’s maybe at most to 15-minute delay from when somebody enters a new MOS…
Tego:Until it ends up in our website. So if you’re one of those people that like to kind of view the latest and greatest, we got it right there, welcomehomeabq.com.
Eddy:Edge there Tego. We can just hangi in your new website at welcomehomeabq
Tego:Yeah. We sit there all day and watch all the new homes come in to the market.
Eddy:Alright Tego. We’ll see you again next week. Thank you both for being here. And this is been ABQ Real Estate Talk, back again with Tego and Tracy next week. Up next, Ward Arnold.
The big highlight for this month is a 41% increase in the number of homes that went Pending (received a contract) vs April 2014. To me this shows that the demand for real estate market is healthy in the Albuquerque area and should lead toward some strong appreciation this year. The strongest demand is in the average home prices (around $200,000). Homes that are updated, look good, show well, and are priced “In the market” are selling quickly in the northeast heights in particular.
The number of homes sold so far this year (through April) is 9.1% ahead of last and the number of pending sales is up substantially, 23% more year to date than 2013. The other trend that I am watching is the Supply vs. Demand spread. We are currently at the lowest since 2007 and it appears that this trend will continue.
For buyers… prices are going up. Waiting another year will most likely cost you more not just in home price but also interest rate. For sellers… demand is strong in the median price range and demand is still a little soft in the higher prices. If you are thinking of “moving up” from your current home, the timing of doing that this summer looks perfect.
Albuquerque Real Estate Talk Radio shoe for March 14, 2015. Appraisals and how a homes value is determined.
good morning and welcome back to market
makers and risk takers here on
I near her slaney semantic work along
with Aaron Henry
years and we are here with Tego
with the venturi team Realtors with Keller
Williams good morning
good morning lenient karen thanks yes
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board here as well I know you you and I
serve on a board together there
regarding the MLS and will you know
appreciate that as workers we need
as a as a real estate community people
like you involved
I appreciate that sat on the board now
Southwest MLS Multiple Listing Service
for thirteen years now
while while I just wanna keep your show
I dis is a lame in a regular homeowner
I always was at when it when it comes
time for the appraiser is always a
little bit of a scary sorta
all the appraisers coming get everything
ready it’s it’s an essential part but
you’re saying is just one part of it is
just the natural flow but I think
there’s got to be a little bit a change
the mindset for people because
to get I think the latter little fear
going on new should be
there shouldn’t be any fear about the
appraisal process of course it it is a
bit of a mystery because we just kinda
show up and say
let me look in your cabinets in your
closet yeah look
everywhere and I’m going to determine
the value is stated in your hand
and worthy yes are worthy in
also have quickly I mean there’s here in
New Mexico oil so no
you’ve been doing it for years but in
New Mexico I don’t think you
there you actually have to be license is
that true and actually in all states in
the country you have to be
unlicensed at some level is there is
regulatory arm burden when it deals with
appraisers your new mexico yes so %um
chime in there specially after 2000
a let’s say that change and some other
things change but a licensing has been
in place now since about ninety
1992 when we had the first really big
crash the S&L krakow
yeah and that’s when they first started
certifying appraisers and as I said I
started in the 80s lines here
pre licensing but we are actually
okay week the hot all highly under
et cetera yeah I’m in and I wanna get
know the minutiae love
the rules and stuff but things did
drastically change for you
in your industry in latte 2008-2009
they basically cut off our ability to
communicate in 2008 yeah
yeah it’s been in we don’t want to get
into detail but it’s been interesting
appraiser so let let’s back up here what
let me ask you as an appraiser what
how do you determine the value of a home
in lemme establish one thing you don’t
as the appraiser establish value correct
in in is it fair to say yes we report
thank you so that debt I think a myth
that’s out there that everybody thinks
all the appraisers gonna tell me what my
home is worth
and that’s not necessarily the case
perhaps the way I put in you agree with
me or not
months all is the appraisers job
is to determine if the bank is making a
in essence it’s true yes I mean kids the
banks are going to loan
based on the appraised value not
necessarily what people are willing to
pay for the proper correct and those are
two different things fracture
so how tall
just a real quick snapshot Howard does
an appraiser determine when a home is
well the first thing we learn and what
we call a square foot driven market
so the square footage is gonna come into
play and then your neighborhood and then
of course a condition of your property
that the the Sentul so you always want
to be looking at apt
have in that that thats condition have
the property that you can have because
we do notice at upgrades updates
and then the amenities the garage is a
bath rooms that sort of thing come into
yeah and you know I there something that
I think people get confused about
the appreciation a property isn’t
the building buildings actually
depreciate correct correct
im so it goes back to that old location
location location thing right
that’s a big factor in so obviously
the exact name same house bill let’s say
some were in high desert
is going to be very different value than
in gonna pick on any neighborhood but
let’s just say Ventana ranch just
there you know very much different part
of town yeah
absolute extremes end and that’s totally
and and of course a course a
custom-house versus what we call a
production house your your tract
yep that’ll plays into a DOS of course I
read many appraisal reports and there’s
you know whatever 50 100 different
things that you guys have to document
at least yeah yeah and in what it would
have the big 12 said square footage
arm what other types of things are you
looking at compare to other homes will
talk to compare apples in a moment okay
I mean that the things we really start
to look at it of course is
like I said the square footage the
location the neighborhood comes into
the number of garages: a big factor of
course is the number of bathrooms:
bedrooms play a little bit but mostly
that’s handled within the square footage
arm and their and you landscaping
in this is one that I get in debates
with other Realtors with actually is a
three bedroom house verses a
four-bedroom house if it’s the exact
same square foot in everything is the
I usually just tell people me the same
yeah there’s not a value difference to
yeah that a lot of builders will build
the same square footage with either 345
well it’s still the same square footage
rain and some people want bigger
bedrooms and some people want more
even other smaller so absolutely it’s
kinda it’s kind of a trade-off
arm let’s talk about compare apples
obviously we talk
in our industry we call on comp trade I
mean we all talk about Compton all kinds
of things but
E that is really where you go to to
what the market value of a property is
and how do you do that %uh very
I know yes especially when we talk about
places like the North Valley
or maybe you know that there’s some
certain parts the town it’s pretty tough
absolutely if you’re in in in somewhere
like Ventana ranch that you brought up
tends to be a lot easier because one
other person he appraisers gonna do of
is we’re going to run it close to the
square footage in Ventana ranch you can
try to stay with the same builder
which means you get a similar quality
across all your your
comparable selections we’re gonna try to
stick with a similar age a similar style
if we can stick with 01 stories will do
that and compare one story to one story
if you can’t role will look at two
stories and find if there’s value
armed and sold that’s kind of where we
start but we we have to start with the
in the neighborhood not in in and then
again if you have a situation where it’s
at where you
unique home in a certain area you can
kinda expand from there but you have
rules and regulations regarding what you
can do correct he technically
yet but most almost everything
appraisers deal with his guidelines not
hard fast rules
I mean you can always right around an
you said the North Valley yeah um we’re
supposed to keep our comparable
selection in an urban area
within a half mile in the North Valley
that can’t happen yet since that’s
outsell in let me just say as a Realtor
generally we basically do the same thing
we do what we call the the CMA
for competitive market analysis I for
recall both things and im we do the same
we look at okay would at home down the
street sell for that very compatible
on down the street sell for this very
compatible and then we kinda
you know dig through it and filter out
what may be is a true compare bowler we
might add a little bit %uh valuer take a
little value way depending on
you know condition to the home we talk
about that if the home has landscaping
or not landscaping and in some things
make a big difference
in some things make no difference
whatsoever even though people may
think they do like a swimming pool is
that fair to say oh yes
yeah yeah it’s really get to talk about
all the mess in in legends and what’s
not many more in the next section
just before we and head out here on this
first break what
land must go ahead and give her call
numbers out in website culture
sure if you wanna our talk with us at:
go venturi with the
been to reteam with Keller Williams
Realty in our website is welcome home
a BBQ dot com our team line is
of 933 6881 and that’s our kinda realtor
on duty to
lines 0933 6881 there’s there should be
some in there to
help you out anytime even on Saturday
even on Sunday and even at you know
7 o’clock at night we get those calls so
or attacking real estate here with Tito
then Terry in you are listening to
ninety five point nine FM
and 16 any keeper we’ll be right back to
so much more I need the key data them
with market makers and risk takers I’m
anything hun take work along with Aaron
Henry D is on ninety 5.9
FM in 1618 Kia if you haven’t downloaded
a app here AB ke .fm he should give it a
backpack yeah day Desert Eagle venturi
yeah I know I’m I get it is the yeah
well that nothing’s awesome I think it’s
the future radio
I mean in you guys eternity in and I’m
sorry forget his name
does bats ke yeah burdine
the same oh yeah about yeah um
that things cool it really is it BBQ .fm
arm you guys just headed by two stations
online right here fan of music stations
we have the Bloomberg network Fox News
and of course our listeners can listen
are saturday lineup raat ki .fm ap every
exactly yeah sleazy she’s going down
I’m gonna download HQ to here show
land frontage: so ok is we’ve been
talking about a
appraisals and and market values upon
how that would an appraiser does and how
it’s the term in one thing came up on
the break when we were chatting is
arm you’re hired as an appraiser and I’m
I should say when talking to absolutely
yeah i’m talking about. for henry who
residential appraiser here in
Albuquerque been doing it for quite a
while so thanks again for being here
happen so in one of the things is that
his change sort of since 2000 a or at
least that’s been in force more
is that use an appraiser have to be
from the actual loan officers are
cracked pretty much that’s a case week
we cannot actually interact
week we can talk to the loan officer
technically but we cannot talk
values so basically the lenders feel
that they shouldn’t topped with a dollop
feel that they should never be talking
to the lender either yeah
however you can talk with real estate
agent to greater degree again you can
talk values and I understand that right
if you have a copy of my appraisal
report and and
want to ask questions on it I’ll be
referring you back to your lender
I see understand I know it in in a
course with everything that blew up back
you know in the end the bubble arm you
know that was one of the things you got
cracked down on of course it wasn’t
widespread but it happened in there was
a little bit of stuff going on in
and you know some people went to jail
and you know
thats that some lenders and appraisers
yeah understand I understand so
I wanna just talk about something else
really quickly if you don’t mind it
inventory it because I’ve been
tracking you know i i do Obama the video
I put on our website going on you know
monthly market update
and won the things that really jumped
out at me the last two months is the
the inventory basically the number of
homes for sale
in our market and yet certain price
ranges in particular its it down quite a
there’s less homes available to purchase
in the number buyers pretty much stayed
said is that raised the prices other
homes eventually yes
if it if that trend continues and so we
do this thing called month supply
agreement Teresa basically means how
if the had the same number buyers and
you had no new homes come on the market
how soon would you be out of homes to
sell in Seoul
and in your New Year’s heard the term by
buyers marker solar market right yes
okay so you know
generally six months is kinda the middle
it’s neither nor well if you look in
Albuquerque we’ve dropped down below
right around five months supply for our
I mean there is a point there we were
what 18 months pumps all twenty months I
mean it was
yeah it was tough but in the two hundred
under price range weird at three and a
half months supply
in one thing I found really fascinating
about that is
the average days on market has increased
a little bit which means
to me this summer those homes that were
just sitting there not selling because I
are starting to sell to do so I don’t
know this by
maybe just putting is a seasonal as well
let me know it’s busy season for
the whole industry usually this time
years when you have the most supply
right and you know so I don’t know
something to see a
listen now me just add to that date
if you look at the $400 and above the
jumps up to
its 11 months supply you look at 800,000
27 months supply where you’re gone yes
%uh actually down
which is actually down right and I think
there’s quite a few in that kinda luxury
market people that have just don’t have
their home on the market with they would
sell if they were they could but
they’re just gonna stay for now
considers not that market was still tops
generally we should somebody asked me
you know housing market in Albuquerque
real estate market I say well
which market are you talking about hands
yeah and depends on the neighborhood
right but it all depends on
we’re talking about location so let’s
about estimates moves
standing and customers customers at guys
okay guys cell big national website
okay now extra seating the real estate
saying they’re they’re big national
site there there really a marketing
companies what they are they’re not
what they do is they take our listings
the display I’m on their website and
they sell advertising back to pass as
that’s a market that’s their business
planning at what they do
doing well it they’re doing really well
out yeah arm
yeah I mean they’re whatever 100 billion
dollar couple hundred million dollar
company not billions are million it
its day you know it’s a big ol thing arm
one of the unique things a
they created is a a piece of software
that doesn’t automated home value in so
they’ve got some algorithms that look at
you know went on to star
for sale you know what the assessed
values are in a calm
crunches all these numbers and comes up
with this thing that the year
with their colleagues estimate mean it
automated home valuation system
a problem with that once all the one to
take that one well as were non sales
disclosure state which means that
information that they’re trying to
generate the numbers from ins
well based on third-party data that they
and their little arm estimate somewhat
the neighborhood should be selling for
thirty no sales data that they’re taking
that information yes aware
were willing what we call in on
self-disclosure state there seventeen
oven in the country
which means that sale home sale data
cannot be publicly displayed anywhere
hear that so there’s goin’ she and
in the dark sinead your name and in New
Mexico why is that because that’s just
that’s been on the books for long time
forever pretty much its its New Mexico
they private property rights and they
want to keep it private
is that is that good is a good is a good
law or regulation for prop property I
I think so I mean think about your buyer
for home and you just bought the home in
in you know you don’t really wanna know
everybody did know what you pay for the
brain and I think it’s just a
that the privacy thing of course we
lived in this world a big data now so
there’s not a whole lot that’s private
Butler T can go and see what everybody’s
right human decency their backyard
I’m so that delivers estimate is not
accurate it is not accurate
can Indian in so the reason I put that
out there is
unfortunately people that are buying
homes are selling homes
they go there they see it in all the
sudden they get stuck on that number
in really bright from Zillow’s website
it says they give her a ranking them by
state by state county by county
you know how accurate their quote
estimates are in New Mexico is the very
lowest in this is what it says it says
on able to compute zestimate: accurately
thats for all of New Mexico so in
a hundred thousand whatever mores online
auto estimate systems and there’s gonna
be out there
for Roberts really the way you determine
is a professional a professional they
can find that
much welcome home a DQ dot com right or
and in some people will rate bonds are
up front before they put their home on
the market cracked sometimes
yeah it’s expensive I mean it’s not
something I typically recommend because
we’re gonna charge you in that appraisal
we do is
then good for no other purpose except to
provide you a
number one a day yeah if you’re just
tuning in here listening to ninety five
point nine FM in 1618 key event i cant
TT Coventry friends and terry keenan
Realtors at Keller Williams and so want
to just get into real quick were
we have such a great discussion we’re
going going through our time so quickly
is you know how to get the most for your
home how much
you know how do you get the most value
when you sell your home we talked about
earlier that most value of the property
is in the land
to a certain extent obviously the
improvements have something to do with
it but most appreciation happened
in the location in the land but when you
get a home ready in you ready to sell it
you need to just do that mine shipped in
we’ve talked about this before that it
now it’s a product and now you
need to market that product its
in so you think about this way if you
sell a car and it’s dirty and it’s
you in you got the exact same car next
to it in its
blacks in its beautiful smells good
looks good you know which ones gonna
have more value
sure its it’s pretty simple in Fort Lee
some reason people miss that sometime
from they put their home on the market
right but absolutely
would what are the other big things you
would say bon solve it affect
the home’s value to basically bring the
to bring it up you’re gonna wanna make
sure that you look at things like the
condition make sure your carpets are
make make sure it’s tidied up it doesn’t
have a major impact on the pressure but
but just like anyone else going into the
property what we’re looking at how it
feels when you walk in the door
in you know you can tell it there’s been
some deferred maintenance just by the
condition of the home race
and I’m deferred maintenance does affect
value it does absolutely
N and it’s noticeable in if the the roof
is a perfectly you know if they’re a lot
a shingles are starting to it
to show curling are falling off it
deferred maintenance and it does
impact value yeah yeah as a if there
something happening there’s prior the
areas that have not gone
that see a side issue yeah so I just
want to bring up one less thing we’re
almost at a time but I want to highlight
a home a home for the week here is 28
its in the Tom Allegria neighborhood the
kashmiri where that is its
for it well it’s technically and burn a
Leo but it on the
the west side of the river so you feel
like you’re in Rio Rancho Buena
but it’s a it’s a 55-plus to community
it’s saddam there’s not we don’t have a
lot of those in the clinton Italian
active adult community it’s a Dell web
community I’m we have a home for sale in
there is listed for 276 nine
it’s a it’s a great neighborhood because
you know it’s it’s a beautiful community
and again we’re talking about location
location is wonderful if you want to be
active adult lifestyle this is the place
in its its really well done so you’re
interested in at home a time desert
willow court desert willow court just
give us call
at 933 6881 where at a time already this
was a great show
month of thanks for being here we really
appreciated in look forward to having
little bit more going on here on
Saturday morning AB keygen FM you listen
to any semantic work we’ll be right back