June 2, 2021

Should We Be Worried About a Housing Bubble?



Here’s why we’re not in a housing bubble.


Are we in a housing bubble? Is everything going to burst soon? Are prices going to change or will they keep climbing as they have been? 


I’ve always heard that what goes up must come down, and truthfully, over time, we’ve seen rises and falls in the market. Overall, we know that houses are much more expensive than they were 20 years ago (...50 years ago...100 years ago...etc.). Over time, houses will always increase in value. In shorter periods, though, sometimes we see setbacks—whether that means a housing bubble forms and pops or homes lose value due to deterioration or obsolescence. 


That said, a few things have changed since our last housing crisis. First off, that housing crisis was motivated by poor debt. Many people couldn’t afford to pay their debts, and it changed the way housing was able to artificially create demand from people who couldn’t actually afford homes. In our current situation, most of the demand is real. 


Where is this demand coming from? The first source is population growth. We’ve seen more people forming households over the last five to 10 years, but builders haven’t been building as many houses as they used to. New home construction dropped off a cliff in 2009, and between 2009 and 2019, roughly 5.5 million homes that were expected to be built weren’t built.


   Our market has a lack of inventory in general compared to the demand.


Also, access to data and information has changed, meaning institutional investors can now purchase homes. In the last five years, we’ve seen hedge funds and large corporations (even multinational ones) buy up thousands and thousands of homes. Additionally, pension funds, hedge funds, and foreign corporations are buying homes and holding them for rental investment portfolios or to sell them down the line. With so many homes institutionally owned, we have even fewer listings available to the average homebuyer. Since supply is low and demand is high, prices are increasing. 


Between those factors—a lack of inventory, increasing household formation, and increasing demand from institutional investors—we’re seeing a different set of circumstances than we’ve seen in the past. This means we’ll probably see another few years of this environment. Even though builders would like to start building more new homes, a lack of land or lack of ability to develop that land may be holding them back. On top of that, it takes time to gather capital, form permits, figure out resources, deploy building plans, etc. 


Another short-term problem as far as home building goes is that many builders had to put their plans on hold when COVID first hit. It’s a similar situation to the one we saw the previous decade in that a lot of homes that were supposed to be built in 2020 weren’t built. This will cause a short-term shortage of homes for sale, but our market has a lack of inventory in general compared to the demand. That’s what’s causing what feels like a housing bubble, but it may actually be a housing boom. 



As always, if you have questions about our market or there’s anything I can help you with, don’t hesitate to reach out to me. I’d love to hear from you.

Posted in Market Update
May 18, 2021

5 Reasons FSBOs Fail in a Fast-Moving Market


Here are five reasons why FSBOs often fail in a fast-moving market like this:


1. The distribution problem. Most people who list their own homes don’t realize that they have to expose them to enough buyers to create a frenzy for them. Even in a hot market, FSBOs may not get the reach they need in order to be exposed to the right number of buyers. 


2. Marketing. This includes where the channels are, which websites the house is on, where it’s being advertised, how it’s being exposed to buyers, and its presentation (e.g., pictures, videos, tours, and everything else a team like ours offers). We’ve found that if a home goes live without quality pictures, it will get passed over. It will get a ton of views but no showings. The market is not a free-flowing river of information. Just because a home is available doesn’t automatically mean buyers are notified of that fact or understand what they need to know about the home. There’s so much information buyers are bombarded with these days; your home has to be presented in the right light from the moment it goes live on the market. 


3. Condition. Photography is one side of a home’s presentation—condition is the other: how it looks, how it’s staged, etc. Sometimes this requires small tweaks. My team and I always consult our clients about condition tweaks that could generate a higher sale price or a quicker sale. Sometimes small condition issues can cause a slowdown in your home sale. Part of the reason why is that HGTV has made us a little superficial, to the point where we expect all homes to look great when they’re on the market. 


    Just because a home is available doesn’t automatically mean buyers are notified of that fact or understand what they need to know about the home.


4. Dealing with the buyer directly. When buyers and sellers talk directly, emotions can run high. This can leave each side frustrated and disgruntled with the other and cause sales to fall apart. Realtors often act as a buffer between buyers and sellers and help keep contracts together. 


5. Pricing. This is probably the most obvious reason, even though it doesn’t feel like it’s the most obvious. Even in this fast-moving market, you can't demand any price you want. We see plenty of homes sit on the market for days on end or come off the market because they weren’t priced appropriately. There are several pricing strategies your home can make use of. It’s not just a matter of whether to price low or high. It’s about pricing in a way that’s appealing to buyers and will generate the most online views and showings.


If you’d like to know more about this topic or want a free seller consultation, don’t hesitate to reach out to me. I’d love to hear from you.

Posted in Home Seller Tips
April 22, 2021

Understanding Appraisals in Our Market

                            Here’s what buyers and sellers need to know about appraisals.


Today’s topic is more technical than the usual real estate chatter: appraisals. I’ll explain what they are and how they impact the value of a home you’re planning to buy or sell. Appraisals play an important role in a real estate transaction because unless the home is being paid for all in cash, the transaction can’t happen without an appraisal. Understanding the appraisal process is key to getting the best deal possible for yourself. 


Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety, or use these timestamps to browse specific points at your leisure:


0:39—Introduction to today’s topic 


0:55—Why appraisals exist and what role they play in a transaction


2:17—Why they essentially function as a cooling effect on home values 


2:55—Low appraisals and appraisal waivers


4:54—Selling and buying while respecting (instead of worrying about) appraisals 


6:04—Wrapping things up


As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

Posted in Home Buyer Tips
April 9, 2021

How to Sell When You Also Need to Buy

                        Here are a few options for buying a home when you also need to sell.


How do you buy a home when you have another home to sell first?


I get that question all the time, and usually, the person is trying to convey that they simply don’t understand what their transition will look like. Will they have 30 days to move? 60 days? Will they even be able to find a home in this hot market? Here are a few of my quick tips and recommendations as far as options for getting your home sold and then buying on the other side:


1. iBuyers. If you live in some of the major markets in the U.S., there are new buyers out there called iBuyers (instant buyers) who are willing to buy a home before it even goes on the market. They can then give you a timeline in which they’ll allow you to stay in the house for a set period while you search for a home.

2. Long leaseback period. As a seller in this market, you get to demand the terms you want. One of the terms we’ve been getting for our sellers is a long leaseback period. We can get you closed in 30 to 45 days, and then we’ll ask for a leaseback of another 60 to 90 days. That extra time will allow you to find somewhere else to move.

3. Bridge loan company. Though not available in every market, you can use a bridge loan company’s cash to buy the home you want first, and then you’ll have another six months to sell your home or the company will buy your home at a discounted rate.

4. We can sell your home. This is the most common and available option for our clients; we can sell your home, do a leaseback, and then list your home for a short period in which we handle all the showings and sort through the multiple offers. If we can sell your home quickly, which is very common in this market, you might consider renting before you buy again.


"Ultimately, if you’re trying to sell and buy a home at the same time, there are options for you, so don’t stress."


One of the best things you can do as a buyer is be ready, willing, able, and not in a rush. The hardest part about combining a sale and a purchase when you have a restricted time frame is that there aren’t many options for homes to buy. It can often feel like you won’t be able to find anything, which creates a sort of paralysis that can keep you in your current home.


Some buyers are turning to rental opportunities for six- or 12-month leases while they search for another home. Recently, some friends of mine decided to put all of their things in storage and live in an Airbnb for a while before traveling around the world until they came back and found a home.


Ultimately, if you’re trying to sell and buy a home at the same time, there are options for you. Feel free to reach out to us and we’d be happy to discuss a strategy to help you make the transition between homes as smooth and stress-free as possible. Hope to hear from you soon!

March 30, 2021

To Renovate or Not to Renovate Before Selling

Should you renovate your home before selling? Let’s discuss.

If you’re thinking of selling your home, I always recommend bringing it to the market in good condition. It has to look nice, incorporate a little staging and presentation, and feel a bit like an HGTV home. 


That doesn’t mean you can’t sell a house as a fixer-upper, though. My team and I know a number of buyers who’ll buy off-market and have an investor list that we send houses to that need some work ahead of time. In certain markets, you’ll also find iBuyers who aren’t as picky about a home’s design. 


Consider which renovations will make the most difference in terms of your sale price and general buyer interest.


If you’re not sure which renovations to make to your home, call my team first. We’ll do a full renovation consultation and discuss which renovations matter. We’ll also do a cost-benefit analysis of selling to an investor versus going to market. Recently I met with a seller who was convinced that they needed to put up a new fence, get their baseboards installed, and make a number of other small repairs. I recommended that they only make a couple of repairs because I knew they wouldn’t get a full return on their investment for every repair they intended to make. 


So consider which renovations will make the most difference in terms of your sale price and general buyer interest. I don’t want you spending money you didn’t need to spend. If you have questions about this topic or want to take advantage of my consultation offer, don’t hesitate to call or email me today. I’d love to help you.

Posted in Home Seller Tips
Feb. 19, 2021

Refinancing Options for Homeowners, Home Sellers, and Investors


Here are your refinancing options if you’re a homeowner, home seller, or investor.


What are your refinancing options if you’re thinking of selling your home or turning it into a rental? What if you’d just like to refinance for the sake of refinancing? Before I answer these questions, let me say that I’m a real estate advisor—not a loan officer. If you’d like to dive deeper into this topic, I know plenty of amazing lenders I’d be happy to put you in touch with.


My team and I have seen a number of homebuyer clients recently purchase homes with interest rates as low as 2.3% to 2.5%. Similarly, we’ve seen homeowner clients refinance with rates as low as 2.8% to 3%. 


This means if your current mortgage rate is at or above 3.3% or 3.4%, it makes sense for you to consider refinancing and getting a lower monthly payment. The other benefit of refinancing is that it allows you to take cash out for a renovation. You can also get rid of your mortgage insurance if your home has gone up in value enough. 


One of the drawbacks of refinancing, though, is that you’ll have to pay closing costs, which will get rolled into your loan. These new costs will be taking money away from you, more or less, so if you’re saving $100 or $200 but paying $2,000, it’ll take you about 10 months to pay everything in full. This is why, before refinancing, you want to make sure you’re staying in the home longer than the payback period.


I’d love to chat with you and go over your options.


If you plan on renting your property out in the future, you definitely want to refinance now. You’ll secure a low rate, lock in a low payment, and allow yourself a larger gap between the rental price and your payment. Plus, you get to enjoy that cash flow. However, you should know that you have to intend to stay in the home for at least a year from the time you sign the documents to refinance. If you wait too long, you might find yourself in conflict with what you sign as an owner-occupant. 


If you’re thinking about selling in the next two years, this is a great year to do so. Inventory is as low as I’ve ever seen it. Buyers are scrounging for homes and we’re seeing multiple-offer situations across all markets. You don’t want to refinance, though, because you won’t recoup the expenses you’ll have to cover by the time you sell. 


No matter what your plans are, I invite you to book a Zoom call with me. I’d love to chat with you and go over your options, especially if you’re thinking about investing. Whether you want to convert your current property into a rental or buy other rental properties, my team and I host investor workshops all the time that you’d benefit from tremendously. We also have a number of resources available for first-time investors. One of my favorite podcasts, for instance, is called “Bigger Pockets,” and I highly recommend checking it out. I’m happy to be a resource for you moving forward!

Posted in Home Seller Tips
Jan. 29, 2021

We Help Sellers Get the Most Value From Their Homes

No matter your situation, you can still maximize your home’s value; here’s how.


There’s a big difference between adding value to your home and simply preserving its existing value. One of the saddest things that we often come across when helping people sell their homes are properties that have not been maintained well. We’ll walk into a home and it’ll be glaringly obvious to us that there is a mountain of deferred maintenance that needs to be taken care of. Instead of enjoying the appreciation that the real estate market offers in the long term, those homeowners now possess an asset that has actually lost value in the market through completely avoidable means. 


There is a certain amount of maintenance that has to be done every year and every few years in order for you to increase the value of your property. The best way to add value to your home is to renovate it, at least to the degree that today’s market expects. As I often tell my sellers, buyers these days have gotten a tad superficial because they watch way too much HGTV. They’re constantly being blasted with superb model houses, which are usually the work of niche builders who have much more resources and production tricks available to them than what we see on camera. The good news, though, is that you don’t have to upgrade your house to that degree. Nevertheless, many buyers want to walk into your home and be visually stunned; they want a modern, move-in ready home with all the fixings. 


If you find yourself in a position where your home needs some work but you don’t want to put the energy into it, you can push “the easy button.” In fact, our team actually offers several different easy buttons to our clients, one of which is an investor offer. With that option, we can get multiple investor offers from trusted individuals who we work with all the time. They’ll give you a fast cash offer—a very fair one, at that—allowing you to pick both your closing and move-out dates and have money ready to go. You’ll never have to worry about the hassle of showing your home, either. We also have several institutional buyers that purchase homes nationally. They tend to buy homes that maybe don’t need as much work but whose owners still want to sell quickly and move on. 


There is a certain amount of maintenance that has to be done every year and every few years in order for you to increase the value of your property.


Of course, we could always consult on which specific renovations you need to do to fetch the highest price on the fair market. No matter which course of action you want to take, we’re here to help. Just give us a call and we’d be more than happy to give you some recommendations that fit your particular needs. You’re also welcome to email me. I’d love to set up a Zoom call where we can discuss our wide range of options. In the meantime, I invite you to download our book and start reading a bit more about how to properly prep your home for the market. 


Regardless of your situation, we want to make sure you’re getting the most value out of your home—not just preserving or losing value. So if you or anyone you know needs to sell quickly, you know how to call. We look forward to hearing from you.

Posted in Home Seller Tips
Jan. 18, 2021

Where Are Prices Headed for the Next 12 Months?


Here’s a look at whether home prices will continue to rise throughout 2021.


With the new year underway, we’re getting bombarded by questions (understandably so) about what the trajectory of home prices will be over these next 12 months. Should we expect another monster year of appreciation, or will there be a market-swinging influx of inventory? We don’t know for sure, but we do know inventory is insanely low at the moment and people are paying high prices to get into the homes they want; in some cases, prices have already shot up so quickly that the appraisals can’t support the offer prices. Today we’re exploring whether high demand and low inventory will continue to be the tale of the market or if a glut of foreclosures will give frustrated homebuyers more leverage.


Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety, or use these timestamps to browse specific points at your leisure: 


 0:22 — Our exciting new resources for 2021 buyers and sellers 


1:14 — Why Q1 is a fantastic time to list your home for sale (especially this year): low inventory


1:50 — How COVID-19 is affecting home prices, and the power of virtual tours 


3:08 — The biggest threat to our strong seller’s market: mortgage forbearances ending  


4:14 — Saving grace: Homeowners facing foreclosure can leverage their strong equity positions


5:13 — Given the potential for a shift in the market, jumping in now could be your best bet


If you’ve taken some major financial hits this past year and want to seek a financial review to help you gauge where you stand and create a strategy for regaining stability, don’t hesitate to reach out; we’d love to have a chat with you about managing your most important asset: your home. Whether it’s getting your home on the market as soon as possible and selling quickly, navigating a short sale, or hammering out a loan modification with your lender, don’t worry—you have options, and we’re here to help you make sense of them. 


Always feel free to reach out by phone or email with any other general questions or real estate needs. We want to be your go-to real estate resource.

Posted in Market Update
May 24, 2019

Inheriting a Property

What happens when you inherit a property?


Talking about this topic can sometimes make people feel uncomfortable because it’s usually related to the recent loss of a loved one. Additionally, because it’s still an emotional time, they often aren’t prepared to deal with the situation. Either they don’t take the right steps to get the home ready to sell or they don’t get the necessary documents processed correctly.


If you know you’re inheriting a property soon, the best thing you can do is reach out to us.



If you’d like to sell it, we’d be happy to put you in touch with one of several great estate attorneys we work with. If you prepare ahead of time, you can save on taxes. If the house is in a state of disrepair and needs to be cleaned, we have several vendors we can refer you to who will help you get the home ready for sale (if that’s what you decide to do).


No matter what your intentions are, we’re here to help

If you want to keep the property for sentimental reasons and perhaps turn it into a rental, we can advise you on that as well.


No matter what your intentions are, we’re here to help, so don’t hesitate to reach out to us or let anyone who’s going through a similar situation know about all the services we offer. We look forward to helping you.

Posted in Home Seller Tips
May 23, 2019

What it Truly Means to Build Wealth Through Real Estate

Investing in real estate is one of the best ways to build wealth, and today I’d like to explain why this is true and how you can get started.


Many times, people assume that building wealth through real estate means fixing and flipping properties or setting up rental properties. However, this isn’t exactly the case.


There are many ways to build wealth through real estate.

Whether it's through appreciation, cash flow, tax benefits, or debt paydown, there are so many ways to build wealth through real estate.

Our team has been helping people all over Albuquerque and the surrounding areas build wealth through real estate recently, so if you’re thinking of doing the same, give us a call or send us an email. We look forward to hearing from you soon.

Posted in Home Seller Tips