Real Estate Information Archive

No matter how you slice it, moving is exhausting. Packing up, moving, and then unpacking an entire house is the worst.

Yet there are ways you can cut down on all that aggravation, effort, and anxiety. Here's a few pro tips that can help during your next move.

Do a Pre-Pack Photo Shoot

Here's an idea that can save your memory and sanity. Trying to remember where all those cords go and how you had your bookshelf looking so good can get mind-numbing when you mix it in with the rest of the process.

Save yourself some grief by taking pre-packing photos of all those things that were hard to arrange int he first place, so you won't have to figure it out again. With photos in hand, you’ll be able to recreate it all in record time.

Corral Cords With Toilet Paper Rolls

There's nothing more frustrating than not being able to find extension cords when you need them during a move. You know you've seen them laying around, but where?

When you pack, wind up each cord in a 6-inch coil, then insert it in a toilet paper roll. You’ll have lots more room in the box, and no tangled mess to unpack later. Just remember to clearly label the box!

Create a "Moving Toolbox"

Keep all your moving tools, such as your Sharpies, packing tape, box cutter and such together in a “moving toolbox” that you can take from room to room as you pack. This will keep you from misplacing small essential items when your house is full of boxes.

Tape Appliance Cords to Their Homes

You could be exploring your new neighborhood, but you're too busy trying to find the right power cord for your appliances.

You can save more time by taping the plug to the appliance it belongs to. Then go get a taco on the corner with your reclaimed time.

Use Your Towels, Blankets as Packing Materials

Another way moving day gets frustratingly extended? Your third trip to the store to buy more bubble wrap.

Kudos on treating your breakables with care, you don’t need the store-bought stuff. Pot holders, oven mitts, and even those old paper and plastic grocery bags you were planning to recycle make great packing materials. Also consider towels, pillows, blankets, the kids’ stuffed animals — whatever’s soft!

Color-Code Boxes

If you’re paying movers, really get your money’s worth by making it easy for them to deposit every box in the right room.

Assign a color to each room, then mark that color on the outside of each box. Before movers arrive, add the correct color label to each room’s door. They’ll love the simplicity, and you’ll love not having to haul everything that was supposed to go in the office out of the playroom.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Are you buying a home for the first time in Albuquerque and trying to figure out how to save for that crucial down payment? You're certainly in good company. Saving for a down payment is a struggle that many first time buyers have. But younger buyers have been getting creative, suing modern methods to help save money.

One creative way that young buyers have been using to save money is crowd sourcing. This method is really starting to gain traction, and it's a great way for family and friends to help you buy your first home in Albuquerque.

Here's how they do it. When the young couple gets married, instead of a wedding registry or buying traditional gifts, they invite guests to contribute to a “Down Payment Fund." The new couple may already have the things they need to start a new life. What they really need is a new home to put it all in. It's the perfect collective wedding gift!

When you do the math, it works out, since most weddings average about 120 guests. The average gift costs about $186. That would give the new couple over $22,000 for a down payment! Of course this figure could vary greatly. But as any newly wed couple knows, anything helps. And those who contribute to the fund know it's going to be used wisely.

And as you've already no doubt guesses, there's online services to do this, such as HomeFundMe. These services make it easy for friends and family to contribute. Plus the ones contributing can decide if their gift is  ‘conditional’ or ‘non-conditional’ on the beneficiary buying a home.

According to a recent Wall Street Journal article report, “about 400 borrowers have used HomeFundMe to help buy homes since the program launched in October and on average, they raise about $2,500.” The article goes on to show that these funds are used by the borrower along with their own savings to help them reach the down payment.

The other major factor helping new home buyers is programs that let first-time buyers make a down payment of as little as 3% such as with Fannie Mae and Freddie Mac loan programs. Also, FHA programs require as little as 3.5%, and VA Loans are often approved with 0% down!

Gone are the days when you had to come up with a whopping 20% down. And with this creative solution, now even more first-time buyers in Albuquerque can make owning a home a dream come true.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

When you buy or sell a home in Albuquerque, the home inspection is a critical part of the process. A home inspection benefits all parties involved in the transaction, as it reveals what the condition of the home is and what needs work.

How can you get the most from your home inspection?  Here’s the steps of the process and how you can maximize the results.

Why Have Your Home Inspected?

If you’re selling a home in Albuquerque, the home inspection gives you the opportunity to make needed repairs, and as such, list your home for a higher value. Your home will also sell faster with fewer issues. Most people in Albuquerque want to buy a turn-key home rather than a fixer-upper.

Make sure you do your research when you hire a home inspector. The internet is a powerful way to look at reviews and work history. If you find a home inspector with a good track record, but they cost more, it’s worth it.

During the Home Inspection

Make sure you’re there during the inspection. This way, the inspector can show you the issues in person and explain options for repair. You can also ask questions and take photos. This will also help you learn about what to look for when you buy a home in Albuquerque.

Recheck and Take Notes

After your home is inspected, go back over the issues for a closer look. Whether you’re buying or selling a home, this will help with negotiations. Then you can increase or lower the asking price depending on the repairs needed.

Discuss and Negotiate Repairs

For home sellers, you can either do the repairs before the home is listed and ask for a higher price, or you can skip the repairs and lower the price. It all depends on how much time you have to put into it.

If you’re the buyer, you can ask for an asking price deduction that is equal to the estimated cost of repairs if you’re buying the home as-is. Another option is to suggest that the current owner get repairs done and then you buy it after a re-inspection following the repairs. This would be best for very expensive repairs such as for changing the entire roof or re-plumbing the entire home.

A good home inspection can make the difference between a smooth transaction and a disaster.  Make sure you find the right inspector and be involved in the process.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Is buying a second home in Albuquerque something you’ve considered? Buying a 2^nd home for retirement or a vacation home can be a great investment, as well as an indicator you’re planning well for retirement. And since finance rates are low, now is a great time to buy.

The big question though is why you should buy a 2^nd home in Albuquerque? Answering this question will help you see where your priorities are.

You Can Afford It

Can you really afford a 2^nd home in Albuquerque? Usually, people buy a 2^nd home after their children leave home and they’re headed for retirement. People tend to earn more or have more saved up by this point in life, giving them more financial freedom.

A Good Investment

Buying a second or retirement home in Albuquerque can be a great investment. But there are risks. Try to choose a home in an area that is growing, which can improve the property value over time.

Comfortable Retirement

As we’ve noted, usually its individuals in their 40s – 50s that tend to buy 2^nd homes. Most people are planning for retirement or at least thinking about it by that age. Owning a second home can be a great way to plan for retirement.

Let’s say you want to retire to a community with a sunny beach? Why not search for a home in the area you want to retire? That way you’ll already have the home and it will have increased in value until then.

Tax Benefits

If you own a home, you have to pay taxes on it, so of course we need to talk about the tax benefits. The good news is that you can write off the property taxes on a second home. And it doesn’t matter if it’s an investment, rental, or for your own use. You can also deduct interest, insurance, and depreciation against your home’s value.

Buying a second home may not be for everyone. But if it’s something you can do, take time to consider the advantages and disadvantages before you make the big move.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home for the first time can be an exciting time in your life. However, there are misconceptions floating around that may give you cause for concern. Maybe you’ve heard things from family or friends that could deter you from buying your first home. But what was true about home buying years ago may not be the case today.  What are some of the misconceptions of buying a home?

1. You need a 20% down payment to get a mortgage.

A few decades ago this was true. In fact, you needed almost perfect credit and had to pay 20% - 50% down for a mortgage.  To make it possible for more people to own a home, the government created the Federal Housing Administration and began offering “FHA Loans”. The FHA will now back a loan from a home buyer who only has a credit score of 500 and a 10% down payment. And for those with a better credit score of than 580, you only need 3.5% for a down payment! This is a big reason why more people can afford to buy a home today.

1. You Can’t Qualify For a Mortgage With Student Loans

Having student debt doesn’t mean you can’t get a mortgage. Lenders look at your total debt-to-income ratio to see how much you make each month compared to all of your debt, no matter who you owe. So if you’re handling all of your debt responsibly and can still afford the payments, that’s what matters.

1. You can save money by not using a real estate agent.

More people use a real estate agent today than ever before. You may think that agents are just out for the money. Sure they get paid for their services with a 3% commission.  But you don’t pay that fee as a home buyer.  Instead that fee is part of the selling price. Don’t be lured into thinking that you’ll save money by not using an agent. And don’t forget that they will also take care of all the paperwork, appraisals, inspections, and other matters that are part of the process. Imagine having to do all that by yourself. Let a professional with years of experience handle the process.

1. It’s cheaper to buy a home that needs a lot of renovating.

Perhaps you’ve been inspired by TV shows that make it look like fixing up a house is the way to go. They make it almost look easy, but don’t be fooled. All of these repairs take time and money and in the end you may end up getting tired of all the renovations. So if you need to renovate the whole house to make it livable, it may not be the best choice.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Here's the scenario: You're buying a home in Albuquerque, and the seller has accepted your offer.  The contract is signed and you've paid the deposit.  Then you have the home appraised and it turns out that the home is worth less than what you offered. And now the bank won't grant the mortgage.  So how do you avoid this kind of situation? Appraisal contingencies are the answer.

What are appraisal contingencies?  They are conditions that have to be met on a real estate contract before it becomes legally binding.  Most real estate contract include these conditions:

1. The appraisal contingency: This states that the home has to be appraised at the sale price or higher.  This will help keep the mortgage from falling through.
2. The finance contingency: This mandates that the deal is based on the bank granting the loan.
3. The inspection contingency: The home must pass inspection.

These conditions must be met in a specified time.  If they aren't then there's no deal and you get your deposit back.

The appraisal contingency works like this: the bank hires an appraiser to assess the fair market value of the home.  This value is based on similar Albuquerque homes in the area, and is referred to as comparative sales, or comps. The bank will only loan the amount that the home is appraised for.  So if the appraisal is lower than what the seller is asking and they refuse to lower the price, you can walk away from the deal and get your money back.

So you might wonder if this is the same thing as a finance contingency. The finance contingency can sometimes cover the same things. If the bank refuses to write a mortgage based on a lower appraisal, then you can leave the deal.  But the bank may agree to a smaller loan that meets the finance contingency. In that case, the seller can demand that you pay the difference.  So if you don't also have the appraisal contingency, then you're left having to come up with that extra money, or be in breech of contract and possibly lose your deposit. And that's why you should have both the appraisal and finance contingency in a contract.

What if the appraisal is too low and you still want the home?  You can ask the bank for another assessment, as well as present evidence that represents what you believe makes the home worth more.

Should you ever enter a deal without contingencies? In this hot Albuquerque real estate market, sellers can entertain offers from multiple buyers.  The easier the deal is for them, the better chance you have of getting the home.  But you run the risk that you won't get the loan you need. In the end, it's up to you, based on the market and what risks you want to take either way.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home in Albuquerque should be an investment that gives you safety and security, along with financial security. Before you buy a home in Albuquerque, you should make sure you can afford the mortgage and that it fits in your budget.

Prepare a Detailed Budget

The standard rule of thumb says that you can afford a home that costs 2 to 3 times your gross income for one year. In other words, if you earn $100,000 in a year, you should be able to afford a home between $200k to $300k.

There is one problem with this rule. It doesn't factor in your monthly expenses and debts. If we use our previous example of $100k per year income, and you have $1000 monthly debt payments, this leaves you with less money to pay the mortgage.

You should prepare a family budget that takes into account your ongoing monthly bills for everything — credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings.

Now you can see what's left to cover the costs of owning a home, such as your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable.

Factor in Your Down Payment

Having enough for a down payment is also an important factor to consider. It's simple: the higher the down payment, the lower your monthly mortgage costs will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment.

The lower your down payment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger down payment, you may end up paying more for your home.

Consider Your Overall Debt

Lenders generally follow the 43% rule. Your monthly mortgage payments covering your home loan principal, interest, taxes and insurance, plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 43% of your gross annual income.

Here’s an example of how the 43% calculation works for a home buyer making $100,000 a year before taxes:

1. Your gross annual income is $100,000.
2. Multiply $100,000 by 43% to get $43,000 in annual income.
3. Divide $43,000 by 12 months to convert the annual 43% limit into a monthly upper limit of $3,583.
4. All your monthly bills including your potential mortgage can’t go above $3,583 per month.

You might find a lender willing to give you a mortgage with a payment that goes above the 43% line, but consider carefully before you take it.

Use Your Rent as a Mortgage Guide

If you currently are renting, then you can use an online calculator to compare the costs of renting vs owning a home to see which makes the most sense for your financial situation.

If you’re struggling to keep up with your rent, buy a home that will give you the same payment rather than going up to a higher monthly payment. You’ll have additional costs for home ownership that your landlord now covers, like property taxes and repairs. If there’s no room in your budget for those extras, you could become financially stressed.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home in Albuquerque can have moments that can get emotional. Yet it doesn’t need to be that way. If you stick to a plan and follow the lead of your agent, you can get through this. Although your agent may offer advice, it’s ultimately you that needs to make the final decision.

Here are six tips for negotiating the best price on a home.

Get Prequalified for a Mortgage

Prequalifying for a mortgage does two things – it shows the seller that you’re serious about buying their home and that you can afford it. This also put you in the lead of those who don’t take this important first step.

Ask Questions

Questions are a good thing. Ask all the questions you want. You need to know many things about the home and seller you’re interested in. What's the seller's motivation for selling? What is their financial position? Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

Work Back From a Final Price to Determine Your Initial Offer

Decide beforehand what you're willing to pay. Then you can work back from that number to make an initial offer. If you bid too low, you may offend the seller. If you bid too high, you may end up spending more than you need to.

You agent can work with you to compare homes in area that have sold recently to come to a fair initial offer.

Avoid Contingencies

Sellers don't like taking chances. Nobody does for that matter. So keep the bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Try to keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

Remain Unemotional

Remember that buying a home is a business deal. Treat it that way. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.

Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

Don't Let Competition Change Your Plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions — such as waiving an inspection — that aren’t in your best interest.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

No doubt, you've already hear about being "pre-approved" if you're planning on buying a home in Albuquerque. Yet many people don't fully understand the process.

What is Pre-Approval?

In short, being pre-approved for a mortgage means that the lender decides if you're eligible for a loan and how much you can borrow. This decision is based on your finances and credit rating.

Why Do I Need to Get Pre-Approved?

Being pre-approved is necessary for a number of reasons. It gives you clearer picture of how much money you need to complete the buying process. The more you put down, the lower your monthly payments will be. You will also get a better idea of how much you can afford for the total price of the home.

Many people make the mistake of thinking that the loan product that a friend used will work the same for them. Even though that's a possibility, it's not safe to assume so. No two loans are alike, just as no two lives and circumstances are alike.

Loan products also have different costs, such as varying lender origination fees. Your loan officer can work with your to learn the costs of a loan and how the loan process works.  This will give you a good idea of what costs to expect.

Knowing these things will make you more comfortable when deciding on a home to buy. It also shows sellers that you're serious about making an offer, giving you an edge over buyers who haven't been pre-approved.

Getting Pre-Approved is Easy

Pre-approval is an easy process, so there's no reason not to do it. You just need to know how much money you make, assets, and debts.

What Will My Lender Need to Check During Pre-Approval?

• Your credit score. Yes, your lender will then have to pull your credit. Don’t worry, pulling your score once shouldn’t affect your score. 
  
• W2s or 1099s
  
• Pay stubs
• Tax returns
• Bank statements
• Account statements
• Your list of monthly expenses

Gathering all these documents can feel like busy work and is typically the hardest part for you. 

If you want to have an idea of whether you’ll get pre-approved before choosing a lender, a good first step is finding out your debt-to-income ratio, or DTI. Your DTI ratio helps a lender understand how much of your monthly income goes to paying debt and what you have left after those debts are paid. You can calculate the ratio by dividing monthly debt payments by gross monthly income.

The lower your debt-to-income ratio is, the better. A lower DTI will make you seem less risky to lenders.

Although each loan product is different, most lenders would prefer your debt-to-income ratio to be at 36% or lower.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.