Today’s digital world and online workplace come with many benefits. For instance, one of the most significant is the ability to choose where you live based on desirability rather than proximity to the office or a specific industry. The COVID-19 pandemic has proven most office jobs can be done completely remotely, and many workers are now insisting on transitioning their roles seeking out new work from home jobs.

Is embracing the remote work lifestyle for you? If so, consider the reasons to work remotely from New Mexico. The state is one of the best choices for remote workers who have the freedom and flexibility to choose their location.

From a laid-back lifestyle to cultural opportunities, adventure to low cost of living, read on to find out why you may want to buy a home in New Mexico.

Benefits of Working Remote from New Mexico

Known as “the Land of Enchantment,” New Mexico is a diverse, unique, and extremely enjoyable place to call home. Work-life balance is achievable due to a lower cost of living and ample opportunities to enjoy the outdoors, food, and culture.

Here are some of the reasons you should consider New Mexico as a remote worker:

  1. Weather – Enjoy favorable weather year-round in New Mexico. On average, you can expect 320 sunny days per year. Additionally, the dry climate means those few days with less sunshine are more comfortable than humid cities.
  2. Clean Air – New Mexico is known for its clean air in rural, suburban, and urban areas alike. Happily, both Albuquerque and Santa Fe have appeared on lists of the least polluted cities in the U.S. The state’s clean air is also partially responsible for its stunning sunrises and sunsets.
  3. Nature – Choose your preferred landscape. New Mexico has mountains, rivers, deserts, valleys, canyons, and hot springs for you to enjoy at any time. Truth or Consequences has some of the most relaxing hot springs. And, there are seemingly an unlimited amount of hiking trails in the state.
  4. Stargazing – Light pollution is low in New Mexico. This means you can stargaze to your heart’s content on a clear night—no telescope required!
  5. Cost of Living – The cost of living is much more reasonable than in many other parts of the country. This includes housing, grocery, utilities, and childcare costs.
  6. Explore – New Mexico has the most UNESCO World Heritage Sites of any state in the U.S., including Taos Pueblo, Chaco Canyon National Historical Park, and Carlsbad Caverns National Park.
  7. Wine – For over 400 years, New Mexico has expertly produced wine. This is thanks to Spanish colonists who first brought vines to New Mexican soil. Monks smuggled the vines out of Spain and cultivated them in New Mexico starting around 1629! In fact, there are over 40 wineries for you to visit once you make New Mexico home.
  8. Culture & Entertainment – There are dozens of annual celebrations in New Mexico that draw a global crowd every year. There are hot air balloon festivals, wine festivals, chile festivals, art festivals, and alien festivals, to name a few.

Tips for Making New Mexico Your Home

The real estate market in New Mexico moves quickly. While beautiful and affordable homes are found throughout the state, many buyers are relocating to New Mexico, making it a seller’s market.

It is important to work with a Realtor familiar with the market in each neighborhood, town, and city. A well-versed Realtor with a deep understanding of the unique real estate market in New Mexico is the key to finding your dream home and starting your vibrant New Mexican lifestyle.

Contact us today to speak with a knowledgeable area Realtor and get started on your New Mexico home search today! We’re ready to help.

What Happens When There is a Low Supply of Existing Homes

Because of the current low supply of homes, sellers have a great deal of leverage in a transaction. To avoid having to bid with multiple buyers with bids running well above asking price, many home buyers seek out a newly constructed home. There are some nuances of buying a new construction home, one of which is who should the buyer get to represent their interests. Unfortunately, many buyers go to a builder’s model home in a subdivision and “negotiate” with the representative in the model home. The low inventory in the market provides less opportunity for negotiation – or does it?

Who Does the Model Home Representative Actually Represent?

Most individuals in a model are of two types, a builder’s representative or a licensed agent. A builder’s agent is generally a person employed by the builder and paid to sell the builder’s homes. By law in most states, unlicensed reps cannot legally represent “you” as the buyer. Since they can’t legally represent “you” and since the builder compensates them, who do they owe their allegiance to? It certainly isn’t the buyer!

As for the “agent,” that is someone that the builder or listing agent hires to assist in selling the builder’s homes. As sitting in the model home awaiting buyers to come in is an “opportunity” for most agents, they are reticent to actively represent the best interests of the buyer in fear that the builder will eliminate their “opportunity.” In short, they are going to look out for the builder and themselves first, not the homebuyer. Additionally, many times the agent is also working with the same brokerage as the listing agent for the builder. That puts an agent representing a buyer in an immediate position of being nothing more than a scribe to complete the necessary paperwork. Legally, they can’t serve the best interests of both the builder and the buyer.

The listing agent certainly can’t and won’t represent the buyer.

Your Own Agent Makes a Difference

You will not save on the purchase price by using the builder’s representative. You will not get more or better appliances because you buy from the builder’s representative. The only ones who benefit are the “builders” and the rep or agent selling model homes. The builder may save commissions or the agent or rep may make more commissions.

It is significantly better for a buyer to have an agent who represents them. It makes a big difference to have someone that can and will properly advise them and knows the building process. Also, it helps to have someone objectively analyze the builder’s history and understand the changes this current market climate has produced. They can assist you with understanding your options if the builder increases the price, knowing if closing can reasonably occur when represented, and determining if the home will appraise at the price you require. These steps can dramatically affect the loan approval, the loan interest rate, and the cost of the loan. An experienced new homes agent can help you determine if using the builder’s preferred lender is really in your best interest.

How Do I Know if My Agent Knows New Homes?

When researching an agent to help you purchase your new construction home, ask the following questions:

  • How many new home purchases have you done?
  • What experience do you have with new home lending?
  • How well do you understand the building process? How did you learn it?
  • What experience do you have with new home lending?
  • How familiar are you with how loans are priced?
  • What is your process for buyers when buying new construction?

Keep asking until you get an agent with the right answers! It could make the difference between moving into your new home or starting the process of looking for a new home all over!

For representation when buying a new construction home, contact Grind Real Estate Group and we’ll make sure you get the best deal.

Who represents who?

Let’s start by understanding what makes purchasing new construction different than other home sales. If you are dealing with someone sitting in a model home or that works for the brokerage listed as the selling brokerage, you are dealing with someone who is loyal to the builder. Legally and practically, they cannot provide you with advice on the purchase. At least, not advice that is in your best interest. Worse yet, many buyers think that by dealing with the builders’ representative, they will save money or get benefits that would not otherwise be available.

You can be certain that when dealing directly with the builder’s representative it will not save you money or get you extras that were not otherwise available. The builder simply gets to keep more money. They can’t afford to reduce the price of the home because it affects their ability to maintain appraised value for other homes. A good buyer’s representative can negotiate you the same extras. If purchasing new construction, you need a licensed real estate agent that understands new homes.

What difference does representation make?

Plenty. Is it really in your best interest to use the builder’s lender? Sometimes it is, sometimes it isn’t. Make sure to perform a thorough analysis of the different costs, interest rates, and loan payments.

An experienced buyer’s representative understands the process of building, completing, and closing on new construction. It dramatically impacts when you lock your interest rate, what rate you pay, and when you will be able to move in. A buyer’s representative assists you in monitoring construction. This is meant to assure you that your new home is ultimately what the builder represented and promised. It is now more critical than ever to be able to accurately project when you will be able to close, when you can give notice or close on your other home, and when you can begin to incur costs to move.

In the current market, your representative should conduct a thorough analysis of the terms.

  • Can the builder simply cancel the contract?
  • Can the price you negotiate increase at the decision of the lender?
  • If so, did you plan for that contingency with your lender so you are not left without a home? Then there is the ability of the home to appraise for the amount you are paying.

Your agent should be able to provide you with a comparable market analysis. This demonstrates the reliability of getting the necessary appraised value.

Lastly, get an agent who understands the process of building. They should know what a finished product should look like. They should also be present when you do the inspection of the home and/or the final walk-thru. Someone representing the builder simply cannot afford to be pointing out the flaws of the product they are selling. Getting it right prior to closing keeps the leverage with the buyer.

Get an expert to represent you

Most real estate agents don’t fully understand new construction and the subtleties involved with representing new home buyers. Find out how many new home buyers they have represented. Ask about their building expertise. Make certain they understand new home lending. You will be glad you did.

For representation when buying new construction, contact Grind Real Estate Group and we’ll make sure you get the best deal on your new home.

Why do you need a licensed real estate agent?

Many people see the current market as just setting a price and waiting for the offers to roll in. Because of this, there are more sellers trying to sell their own home or believing that this is really easy. Perhaps they are looking for a deeply discounted agent to simply do the paperwork. In fact, good agents will tell you that they are spending far more time on each transaction now than ever before. The knowledge required to sell and CLOSE a home in this market is much more than the normal market of two years ago. We’ll explore how a licensed real estate agent can more the process go smoothly when selling your home.

Pricing a home

Typically, sale prices are based upon closed sales that are comparable in size, location, and features. Those comparables help determine the amount that you can expect to be borrowed. Today, comparables often only reflect what we can expect an appraisal to look like but not necessarily a purchase price. When you hear homes are selling “above listing price,” it is not that the agent or seller did not know the proper price, but rather listed it at what they expected it might appraise for.

Until we catch up with actual closings on homes, there truly are two prices:

  • what the home will appraise for
  • what the home will sell for

Does it make a difference?

Buyers not properly represented may offer whatever they think it takes to get their offer accepted. They believe they can still borrow based upon sales price or believe that they can talk the seller into reducing the price if the appraisal is less than the purchase price. As a seller, it is important that you know if your buyer is capable of closing the purchase even with a lower than hoped-for appraised value. The question becomes, can it close?

If not, you took your home off the market for 30-45 days just to find out you have to go through everything to sell it again. Worse yet, you now know what it appraised for and therefore exactly what other buyers can get in maximum loan value. That means fewer qualified buyers.

So how else does an agent help?

In this market, they have to prepare to coordinate a multitude of showings in a relatively short period of time. With more Realtors® than homes for sale, every agent with a prospect that can afford your home (and many who really can’t) is going to try to be first to see and first to offer.

Your agent must then receive any and all offers and transmit them to you. Each offer should be analyzed for:

  • price
  • loan to value ratio
  • type of loan
  • likely appraised value, and
  • the likelihood the buyer can close.

Oftentimes, the highest price is not the best price.

Your agent may have to juggle all these offers to request from each agent submitting an offer to resubmit with their “highest and best.” Then the process of analysis starts anew. For buyers, we talk about losing home offers here.

When Your Offer is Accepted

Once you accept an offer, the fun really starts. Agents have to verify that Earnest Money was received and escrow (title) was opened. There are time limits to provide paperwork to the buyer and to negotiate on whether repairs will be made. Next, there is coordinating the inspection, analyzing the inspection recommendations and the buyer’s requests.

After that, there is tracking the loan officer of the buyer. It is important to make certain that there are no surprises in timing. Has that appraisal been ordered? Will it get to the lender on time to close? Did the closing disclosure get out timely to assure a timely closing? We haven’t even discussed getting the inspectors and appraisers in and out of the home.

Now, how about the title commitment? Anything to worry about there? Does the escrow/title officer have everything they need to close? Will they get paperwork soon enough that your agent can review your closing statement before you go down to sign?

Then, there is the fact that many states only allow the contracts to be put together by the regulatory people to be used by agents licensed through them. Will a seller know what has to be covered and where they will get the contract? Will you know what all the elements of this agreement mean to you?

The Bottom Line: You Need a Licensed Real Estate Agent

More than ever, this market requires an experienced, knowledgeable, and educated team of agents to assist sellers in maximizing their bottom line. You need licensed real estate agents to guide you through this challenging and detailed process. Going at it alone could result in the sale resulting in significantly more time, stress, and fewer dollars to take home.

Tired of overcrowding, expensive property rates, property tax, and state income tax in San Francisco? Move to Las Cruces, New Mexico instead!

If you’re retirement age, will you be able to live comfortably with the ever-increasing expenses of San Jose, California? Move to Las Cruces instead.

Have you bid on multiple homes only to have your offer passed on or rejected? Many folks are looking to buy their first home, relocate because they can now work remotely, or upgrade their home to a more appropriate space. The market right now in many locations is a competition like no other. Just take a look at our recent market report to see what’s going on.

This is most certainly a seller’s market! It has been caused by several things coming together at the same time. First, COVID stay-at-home orders initially caused many sellers to remove their homes from the market. That shrunk supply. As the pandemic raged on, interest rates stayed low and caused many buyers who had been on the sidelines to decide it was a great time to buy. That increased demand.