DATELINE SANTA FE

Santa Fe Real Estate Blog

Protesting Property Taxes

Nothing seems to invigorate the great American debate more than the topic of taxes and no tax hits home harder than the property tax. Lately our local media has been filled with stories of outraged homeowners on the verge of war over their property taxes so we thought we would post this blog to the show shed light on the civil and constitutional approach to protesting your property tax.

 

The County Assessor’s office determines property tax values and if you plan to challenge your property tax this is the place to begin. There are several categories to protest such as agricultural use, residential classification, but if the core of your protest is market value then you will need to focus on the appraised value that the county assessor has determined for your property. Once you identify that amount compare it to comparative values in your neighborhood and if you have an unfavorable discrepancy then you should file a protest.

 

It is the responsibility of the County Assessor to determine and maintain current and correct values of property and many times discrepancies can be resolved by meeting with your assessor and sharing with them the comps you have and compare them to the comps that they used. This is one of those cases where you get better results with sugar than salt and if you are friendly and honest with your presentation you will get better results. If you do not get the result you want dealing directly with the assessor’s office you have the right to have your case heard before the County Valuation Protest Board.

 

The Protest Board is comprised of impartial, objective local residents who volunteer their time to resolve these disputes before they go to district court.  Once you have a hearing scheduled, focus on preparing your case so that it is accurate and organized.  It is really important to keep in mind that the taxes you pay this year were from appraisals done the previous year, so if you are protesting 2010 taxes your case will need to be built on 2009 comps. Your evidence can come from a real estate broker who will compile sales of homes from 2009 that are similar to yours and can even appear as a witness to help your case. Appraisals are also helpful but make certain that you order a retroactive appraisal, as the board will not consider a current market appraisal.

 

When you get to the hearing you should know all the players. The assessor who appraised your property will be there and often an attorney for the county (you can have an attorney, too).  A representative from the State Taxation and Revenue department will chair the hearing and then there will be the two board members.  The property tax code states that there is a presumption of correctness and values are presumed to be correct. This means that the burden of proof falls on the shoulders of the property owner and therefore you will present your case first. State the value you believe for your property and present your comps to the chair to enter as evidence and don’t be unnerved by the county attorney who will probably object to most of your evidence. The chair does not rule on objections, only acknowledges that objections are made so keep on going. Focus your presentation towards the board because they are the ones who will rule on whether or not to make a change in your valuation. Once you finish, the county will make their presentation which will likely be well organized and professional. Be ready to refute their comps if they are not representative of your neighborhood and keep in mind that your goal is to defend the value you stated. Be respectful and courteous and even if you don’t slam dunk the county, the board may give you the benefit of the doubt if both arguments are reasonable.

 

Fiery rhetoric often accompanies disputes over taxes so before you begin your campaign for property tax fairness, be sure of what you are disputing. If your goal is to vent anger over unfair discrepancies between your taxes and your neighbors, or to argue the constitution, or recite a list of government waste and corruption accusations, you will be wasting a valuable opportunity and your efforts will fall on deaf ears as the only jurisdiction the board has is over valuation of your property and nothing else. If you have the comps and keep your protest within parameters then you stand a really good chance to have your taxes adjusted. Our government is a reflection of ourselves and if we want it to be honest and civil, again the burden is on us.

 

January 27, 2011 Posted by | Op-Ed | , , | Leave a Comment

Land Bottoms Out?

Land sales just barely hold on to last years numbers but the price has come down.

January 27, 2011 Posted by | Realtor 121 | Leave a Comment

Feng Shui – Santa Fe

In Santa Fe, the city different, feng shui is spoken of and referred to in the most common real estate conversations. But while many of us are familiar with the term, the basic principles behind it may not be so familiar. It would be impossible in these few paragraphs to give you even the most succinct of explanations. But we can give you a very general understanding and a few tips to improve the feng shui of your experience.

Feng Shui, pronounced “foong shway” or “feng shoe-ee” is a science created by the Chinese over 2600 years ago. The words “feng shui” are translated simply to “wind water.” Feng shui is concerned with nature, the elements, and the energy behind life itself which is called ch’i. If we think of ch’i like a flowing river, we can better understand what a beneficial flow of energy would be like. Too much ch’i, like a raging flash flood in an arroyo, is destructive. A stagnant pond is like stale energy and does not promote positive growth.

The five elements in feng shui are fire, water, earth, wood, and metal. The Chinese believe that the elements are constantly changing energy. Fire is the transformation of oxygen to heat energy and gas. Water is nourishing and carries the energy for growth. Wood is the growth of vegetation and metal is both the mineral as well as the energies of man made fabrication. Earth is the focal point used to balance the other elements. These elements produce and destroy each other in a cycle of constantly changing energies. An important aspect of feng shui is to promote the balance of these energies and how to use them beneficially.

Feng shui becomes increasingly more complicated from there, but the basics relate to the waxing and waning cycles of yin and yang. These energies can be seen relating to the directions as well as the seasons and to our life as a whole. These theories are then applied to the feng shui diagrams to promote the greatest aspect of ch’i and avoid the bad ch’i in your environment.

Some basic principles of feng shui that you can apply to your own experience would be to remove any clutter around the front door so that good ch’i can flow in easily. Do not place chairs with its back to any doorway otherwise you would be in a ch’i draft. . Make sure that all rooms are reasonably lit and a centrally positioned chandelier is very good feng shui. Children’s rooms are best on the yang eastern side where the energy is stronger for growth. Avoid computers in the bedroom as it will drain the calming energy.  Place the bed against a wall for adequate support and avoid windows or empty space. Good feng shui principles can increase abundance, improve familial relationships, heighten romance, and calm the soul. Whatever you seek, feng shui properly applied in your home can bring about that desired result.

Feng shui principles are practiced by millions in the US. Indeed, even Donald Trump used them in his Trump Tower in New York. There is a great deal of literature available and many practitioners in Santa Fe who can help you bring out your greatest feng shui. After all, the Chinese have lived by these principles for thousands of years so there must be something to it.

 

December 22, 2010 Posted by | Musings | , , , , , | Leave a Comment

Foreclosures: Deal or No Deal

Last month several of the nation’s top banks announced a suspension in the sale of their foreclosure (REO) inventory in the 24 judicial foreclosure states which includes New Mexico. Concerns over fraudulent filings and improper procedures only compound the potential problems in store for those seeking deals on foreclosed properties. RealtyTrac, which tracks foreclosure data, reported that for the third quarter of 2010 foreclosure filings were up 4% from the previous quarter to a record of 930,437 properties. Halting the sale of these properties will create pressure in the market and we anticipate a corresponding spike in sales once the moratorium is lifted. If you are a homebuyer looking to find a deal on a distressed property, we would like to share some insights with you.

First and foremost, don’t go it alone. If you are thinking you can double down on your savings by negotiating with the bank on your own, you may be woefully mistaken. Foreclosures are challenging purchases and an experienced broker is your best strategy for success. All too often we see homebuyers who think they are getting a deal but end up overpaying on a foreclosure with many latent defects and little to no recourse.

Just because a house is a foreclosure doesn’t mean that it is priced below market value. Many banks list their REO’s at appraised value and take a wait and see approach. Use a knowledgeable agent to evaluate the property and ask him to provide you with a comparative market analysis, CMA. Keep in mind that what a home appraised for a year ago is of no value today.

Banks do not provide a seller’s disclosure and will sell a property “as is”. This means that it comes down to your own due diligence. Hire a good home inspector to provide you with a detailed report. Homes that have been winterized and utilities turned off require special attention. It is imperative that you have the bank turn on the water and electricity prior to your inspections. If they will not turn the utilities back on, back away.

If your foreclosure is a fixer upper, have a qualified contractor provide you with detailed estimates of the costs involved. Once you take the purchase price and add on the cost of repairs, it may no longer seems like such a great deal. If you are having trouble getting a loan because your lender doesn’t like that the dry wall is falling off and the kitchen has been ripped out, you may find help financing. The 203K is a mortgage that the F.H.A. offers to help homeowners buy and rehabilitate foreclosed properties.

Ask your title company to provide you with a current title binder and examine it carefully. The New York Times reported a story recently of a couple who thought they were getting a deal on a foreclosure at auction only to discover after the sale that they paid $137,000 for a second mortgage and there was a large, delinquent first mortgage in place. Ouch! In our state, the previous owner has the right to redeem their property within a certain time period so be clear that you know what that time frame is.

It’s too early to tell if this moratorium will become a major story but it is clear that foreclosure concerns will be with us for a while. Although opportunities are out there, buying a foreclosure is in no way a guarantee of value. Create a team of professionals to aide you in your purchase of a foreclosure and increase your chances of getting a deal.

November 22, 2010 Posted by | Realtor 121 | , , | Leave a Comment

Seller Financing

With the real estate market struggling, homes languishing unsold on the market and with mortgage options drying up due to the tightening regulations on lenders, an optional way to get your home sold may be to offer seller financing. Especially common when money is tight, seller financing or real estate contracts can be useful because it gives more buyers a choice and perhaps even the ability to purchase your home. This option can be attractive to both buyers and sellers so here are some tips to better understand what it is and whether it could be beneficial to you.

The sale works the same whether there is seller financing or a mortgage. The buyer and/or their Realtor present a purchase contract, conduct due diligence, present objections and work to resolve and close the purchase. The difference is in the financing whereby the seller becomes the banker. After the transaction closes, the buyer has equitable title while the seller holds legal title. Only when the terms of the real estate contract have been satisfied is a warranty deed for the buyer recorded.

For a seller whose property has not sold in these hard economic times, the real estate contract may be an option if they do not need the lump sum cash settlement. Sellers can negotiate better terms than most banks, which could mean a higher interest rate or a balloon payment at the end of the term of finance. Because of the seller’s flexibility, buyers who may not otherwise qualify for a traditional mortgage would be drawn to this option. The seller receives long-term cash flow and in some cases the tax advantages are considerable.

The restrictions on mortgage lending have pushed many motivated buyers to the sidelines due to lack of enough money down and the aspect of paying PMI (private mortgage insurance) which may just push that mortgage payment off the balance sheet. Newly married young couples and recent college graduates are good and likely candidates for a real estate contract since both have the promise of increased incomes over time. The buyer does not have to save for the large cash down payment and can purchase at today’s prices. With mortgages becoming increasingly harder to obtain coupled with the lowest prices on real estate in years, now is certainly a great time.

Concerns for sellers include the buyer’s ability to pay. If the buyer defaults then the process to clear the title can become litigious and time-consuming. And for buyers, the seller is required to deliver clear title only after the terms have been met by the buyer, which means clouds may appear on the title during the course of the term. For sellers to mitigate risks, have an attorney write the “contract for deed” and make certain you are named as an insured on the property on the insurance policies taken out by the buyer in case of catastrophe. Buyers should have an attorney review all documents and insist that an escrow company manage the payments to make certain that the payments are actually going toward the seller’s mortgage, if one exists.

Chances are that for most sales, seller financing is not the way to go. There are risks involved with this type of contract and it is best to seek legal advice prior to entering into any type of real estate contract. But it is an option that should be on the table for certain situations. Sellers can increase the pool of possible buyers while receiving better than market returns and tax benefits. Buyers who would otherwise be on the sidelines may realize the dream of home ownership and begin creating equity. This win-win situation can and does happen and may be an option for you.

November 2, 2010 Posted by | Realtor 121 | , , , , , , | Leave a Comment

Canyon Road Paint Out

The temperature was a perfect 70 degrees without a cloud in the sky so the organizers of the ‘Canyon Road Paint Out’ couldn’t have been happier. The ‘Paint Out’ is an annual fall event on Canyon Road where artists are encouraged to set up their easels and paint outside and visitors can stroll along watching them paint, talk with the artists, and yes you guessed it, even buy some art.

We started at Melissa’s Mom’s gallery at the corner of Canyon and Delgado and enjoyed a picture perfect day walking up Canyon Road taking in the sights. We reached our zenith stopping at the Tea House for some wonderful snacks before heading back down. Events like these really bring the community together and makes for a wonderful day.

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October 16, 2010 Posted by | Around Town | , , , | Leave a Comment

Aspen Vista Revisited

The second most important annual pilgrimage (Canyon Road on Christmas Eve being the first) for Santa Fean’s to take is the Aspen Vista Trail to see the fall foliage.  The changing seasons remind us that it is important to get out of our normal routines and look around and appreciate where we are. One sleepy morning while on dawn patrol (when I was younger that used to mean surfing, now it means getting our daughters ready for school) our youngest daughter Zoe said, “You know when you are under water, you don’t feel wet”! I thought about her simple yet profound statement while driving through downtown Santa Fe, dropping them off at their respective schools, and it occurred to me that she was right. The same is true when you are submerged in beauty like we are here in Santa Fe. Hiking the Aspen Vista Trail is the way we come up for air and feel how much beauty we have all around us all the time. Zoe inspired us to get an early start on our annual autumnal pilgrimage this year to renew our appreciation for Santa Fe and see the changing leaves. Here are a few pics from the day.

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September 25, 2010 Posted by | Around Town | , , | Leave a Comment

Sneak Preview

The third quarter is coming up so here is a sneak preview.

easy to read

2010 data continues to support/reject/defy what experts have been saying all along.

easy to read

The National Bureau of Economic Research announced on September 20th that the recession had officially ended in June 2009. While that appears to be good news, the announcement did not rule out the possibility of a second recession nor address our still struggling economy. The backbone of our economy is the housing market and the National Association of Realtors announced at the end of August a decline in existing homes sales of 27.2% nationally from the previous month. In Santa Fe, there was a 30% decline in sales from June to July. Since all of that news is like sour grapes, we thought we would look at the various areas of Santa Fe and do our own analysis. With information from the Santa Fe Association of Realtor’s Multiple Listing database, here is our snapshot of the year to date.

All agree that 2009 was the worst year in real estate and while 2010 is not yet over, let’s look for reasons to believe we are on the path to recovery. The largest part of Santa Fe, Southwest city limits saw almost a 25% increase in sales year to date, with 157 units sold in 2009 to 190 units sold so far this year. The average selling price dropped 4% from $249,000 to $239,000 which translates to a new average selling price per square foot of $163. Nearby, the Airport road area saw a small decrease in sales YTD, with only 69 homes selling over the 71 sold last year. Average selling price dropped a mere 2.5% to $200,700 which may signal that prices are close to bottoming in that area.

In Southeast city limits, homes that have sold had slightly longer days on market, from 264 to 327 days, but 132 units have sold versus 87 in 2009. The average selling price dropped close to 8% overall with an average selling price per square foot of $271. In the Southeast county, Eldorado was not immune to the downturn. While sales number YTD remain close to constant with 67 homes sold, the average selling price did fall close to 10% to $343,000. All the neighborhoods surrounding Eldorado along 285 saw their sales rise close to 50% over 2009’s paltry 18 home sales. 37 properties have sold so far with an average selling price of $462,000 at $180 per square foot.

In the Northwest city limits, property sales remain constant with 42 units sold YTD versus 41 in 2009. This is one of a couple of areas that saw an increase in sales price. With 9% appreciation over last year, homeowners in this area will be happy to hear their average selling price is up to $376,800 with an average price per square foot of $216. Conversely, in the Northwest county while the units sold did increase from 47 to 64, the sales price fell 11%. With 177 properties still available for sale and an average asking price of $210 per square foot this area is still challenged. Las Campanas saw a 33% decrease in sales this year to 19 homes sold YTD. The average selling price saw a modest drop to $275 per square foot but with 150 properties available for sale the data suggests that number will likely fall further.

The winner in our market snapshot goes to the North city limits. While inventory levels there remain high sales increased almost 35% to 112 YTD and an increase in the average selling price per square foot of $289. Even the old adage rings true in the worst of times: location, location, location!

So, what’s the bottom line? Our market is changing weekly influenced by the volatility of the financial market, pressured by the incoming stream of foreclosed homes, and squeezed by the lack of qualified buyers. But, overall our market is improving slowly but surely. If you are in the market to buy, stupendous deals are available in almost all areas of Santa Fe and properties are selling. While we are not out of the woods of this housing recession, improvement is in sight and recovery is in the future.

September 15, 2010 Posted by | Realtor 121 | , , , | Leave a Comment

Second Quarter 2010 Sales Data For Santa Fe Market

Second Quarter on track to top 2009!

July 3, 2010 Posted by | Realtor 121 | , , | Leave a Comment

What are we going to see today?

As Realtors, we know the challenges to selling in today’s market. There is a great deal of inventory, buyers are scarce, and financing can be tough but what about those unforeseen circumstances that really throw you for a loop? Well, we just take it in stride.

Last summer we were out showing a couple a ranch in the Pecos area. It didn’t take long for us to catch on to the fact that Mrs. Buyer was not as excited about the wild things we have here in New Mexico as her husband. It started by her nervously asking if there were any bears in the area. We answered that although bears are not common, you may encounter one. She grimaced a little and looked at her partner for comfort. He thought that bears were a good thing, kind of a sign that the land is still natural, so the showing continued.

A little later she asked if there were any mountain lions in the area. Again, we answered that although they are not common, you may encounter one. Through the course of the showing it went this way. She never got the answer she was hoping for. From coyotes and bears to mountain lions, we could not comfort her. But her partner was not discouraged. In fact, her partner declared that this is why they were moving out west.

Mrs. Buyer was still hesitant but her partner’s enthusiasm allowed her to openly consider the ranch as their new home. Providence however, had something else in store. As we were leading the way up the lower meadow towards the main house the nervous Mrs. Buyer asked if there were any rattlesnakes. This required a different answer because they are more common than bears and mountain lions so we stopped on the trail to address the question properly.

It really was a perfect summer afternoon with the late sun shining low ahead of us and we were all standing there with our hands held like visors over our eyes sipping on our water bottles. Just as we began explaining about snakes, Mrs. Buyer stepped slightly forward so she could hear us better. Suddenly a sound started up from the deep grass. It was like a cicada sound, only muffled. We started looking around for a cicada to fly from the grass but there was nothing. The sound got louder and was clearly coming from where Mrs. Buyer was. We were all leaning in to see what was going on just as she lifted her foot.

It was like one of those classic horror movies. Up from the bottom of her boot came an unbelievably large rattlesnake head with fangs flashing, head lurching upward, the snake’s thick body writhing and twisting in the tall grass. It was like the nature channel in 3D and boy was this was a real monster! It was only chance that she had been stepping on its head rather than its tail because she had it pinned it down for a while and it couldn’t bite anybody.

We quickly made it back to the cars and Mrs. Buyer was safe and unhurt but from the ivory color of her skin, clearly shaken. Needless to say we didn’t hear from them again. It’s hard enough selling a property today without clients having a life-altering scare. We did however find another buyer for the ranch, someone who loves bears, mountain lions, and yes, even snakes.

June 21, 2010 Posted by | Around Town | , , | Leave a Comment

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