We were extremely proud and excited to have finished in the top 3 for the 2021 Santa Fe Chamber of Commerce Business Achievement Awards. We wanted to thank the nominating committee, the Santa Fe Chamber of Commerce, and voters for thinking of us.  We will continue to work hard for our clients and be the best Realtors we can be in 2021 and beyond!  

2021 Housing Market Off to Great Start

More sales were reported to the New Mexico Association of REALTORS (NMAR) for January 2021 than in January 2020 - pre COVID-19! “1,681 sales were reported for this January,” according to Danny Wm Vigil, 2021 NMAR President. “This is just over 50 sales more than reported for the same month last year.” “A new high in median prices for January and a 20% drop in average days-on-market from January 2020 reflect the continuing low inventory in most areas,” adds M. Steven Anaya, NMAR CEO. “Median sales prices rose gradually in 2020 and January 2021’s $250,000 median is over 12% higher than January 2020’s $219,500.” Median price means half the properties sold for more, half sold for less. During January 2021 properties were on the market for an average of just 60 days. Both Bernalillo and Sandoval Counties reported just 23 average days-on-market last month. “January pending listings give a glimpse into what we can expect as far as sales during February, says Vigil.

“December 2020’s 1,699 pendings resulted in 1,681 sales in January 2021. There are a reported 2,005 pending listings in January 2021.” Record low mortgage rates along with extra lean inventories are prompting a buying frenzy across the nation. The number of homes for sale was down 43% in January year over year, a record low, realtor.com® reports. About 40% of potential buyers who’ve been searching for a home say they haven’t bought a house yet because they keep getting outbid, according to a new survey by the National Association of Home Builders. Buyers and sellers of properties in New Mexico have adapted to virtual tours, social distancing, mask wearing, and other features implemented by REALTORS to keep up safe practices in the home buying process. 2021’s real estate industry should continue to be a bright spot in New Mexico’s economy. The trends and numbers reported are only a snapshot of market activity.

Current reporting participants are: Greater Albuquerque Association of REALTORS, Las Cruces Association of REALTORS MLIS, New Mexico MLS (Artesia, Carlsbad, Clovis/Portales, Deming, Gallup, Grants, Hobbs, Las Vegas, Sierra County areas), Otero County Association of REALTORS, Roswell Association of REALTORS, Ruidoso/Lincoln County Association of REALTORS, Santa Fe Association of REALTORS, San Juan County Board of REALTORS, Silver City Regional Association of REALTORS, and the Taos County Association of REALTORS. Reports represent single family residential data only. Information does not necessarily represent all activity in any market/county. Figures based on reports run 2/14/2021. Visit www.nmrealtor.com (housing trends) for county statistics. The New Mexico Association of REALTORS is one

When it comes to evaluating offers, what’s good for the goose may not necessarily be good for the gander. One seller may be overjoyed with their offer, while another may be disappointed.

That means, in order to figure out whether an offer you receive is “good” —and whether you should negotiate — you’ll need to do two things:

1. Think back to your original goals, and ask yourself whether this offer helps you meet them.
2. Get advice from your agent, who can help get the best deal for your specific situation, wants, and needs.

So what do you, the seller, need to know before negotiate with a home buyer? We’ve got answers to some commonly asked questions.

What’s a Counteroffer?

When you receive an offer, you can accept it as-is, reject it outright, or make a counteroffer — a move that opens negotiations with the buyer.

Unless you’re being offered an amount equal to or above the full listing price, many buyers expect you to make a counteroffer — which is why a lot of people make an initial offer that's lower than the asking price. And why a lot of buyers make an initial offer that’s lower than what they’re ultimately willing to pay.

What Should a Seller Prioritize?

Before you start negotiating, you’ll want to know what you’re hoping get from the buyer. Obviously, money is important. But it’s not everything. There are other factors to consider when crafting a counteroffer, particularly timing.

So, sit down with your agent and have an open discussion about your goals. Do you want more money? A faster closing period? Fewer contingencies? When you review these types of questions with your agent before you respond to an offer, and have a crystal-clear sense of your priorities, the negotiation process will go a lot more smoothly.

Who Has More Leverage?

Ready to play hardball? Hold up, slugger. First, you have to consider your position on the field. How much negotiating power do you really have? The answer depends on several factors.

A lot depends on your local market conditions. If you’re in a buyer’s market — meaning the supply of homes exceeds demand from buyers — you may have to make some concessions to secure an offer. If you’re in a sellers’ market —  and homes are flying off the proverbial shelves,  selling at or above list prices — you may be able to persuade a buyer to offer more money for the house, for instance, or to let go of some contingencies (aka provisions that must be met for the transaction to go through).

Your timetable will also impact whether you have the upper hand. If you’re not in a rush to sell, you may be free to negotiate more aggressively. If you’re in a time crunch because, say, you already bought your next home and don’t want to pay two mortgages at one time, your hands may be tied.

In any case: Confer with your agent. They can help you objectively assess your position and determine the right negotiating strategy.

How Long Can This Go On?

Don’t worry. It may only feel like forever. 

When you make a counteroffer, the buyer can either accept the new offer, reject it, or make a new counteroffer. (Sound familiar?)

This volley can go back and forth, and potentially end in a stalemate — unless you or the buyer put an expiration date on your counteroffer. This can be a smart strategy for you as a seller because it puts pressure on the buyer to make a decision. It also gives you the ability to move on to the next bidder if the buyer tries to stall (chances are, they’ll do this so they can look at more homes without giving yours up).

It’s not unusual for the first offer to be best one — depending on market conditions, of course. And often, sellers see the most interest from buyers in the first month of the home being on the market. 

If you get a good offer right off the bat, start negotiating. You may get a better offer. On the other hand, you may not.

Which Negotiation Tactics Are Most Useful?

The actual negotiation is the job of your agent, who will be experienced in real estate deal-making. That being said, you should still strategize with your agent before they make that counteroffer for you. Here are five ways you can nab a better deal:

1. Avoid making an emotional decision. It’s easy to get caught up by the emotional bond you’ve formed with your home. The backyard just might be where you got married. And that cozy office could be where your small business was born. But the important thing to remember is this: You have to detach yourself from your home. This is business — nothing more.
2. Know your bottom-line. Before moving forward, figure out what you need to get from the deal, at a minimum. That will give your agent a baseline when opening negotiations.
3. Negotiate a “clean” offer. You want an offer with as few contingencies as possible, since contingencies give the buyer the opportunity to back out of the deal. But some contingencies — such as an appraisal, an inspection, or a financing contingency — can’t be waived by home buyers who are obtaining mortgages because they’re typically required by a mortgage lender in order to approve the loan. Still, if you have multiple offers to choose from, you may be able to persuade a buyer to waive certain contingencies, such as a radon contingency or termite inspection contingency.
4. Offer a home warranty. In a buyers' market, a low-cost way to make a deal more appealing to a buyer is to offer a home warranty — a plan that covers the cost of repairing home appliances and systems, like the air-conditioner or hot water heater, if they break down within a certain period of time (typically a year after closing). Home buyers love this extra security blanket, and the standard one-year basic home warranty will only set you back about $300 to $500.
5. Don’t overlook the closing date. Typically, the sale process — from accepting an offer to closing — takes about 30 to 45 days (sometimes a little longer). But in most cases, the faster you can close the better. Especially if you need cash to buy your next home. A quicker closing period has to be feasible for the buyer, however, and some types of home loans take longer to obtain than others.

Should I Start a Bidding War?

If you have more than one offer on the table, you might be tempted to pit buyers against each other and watch them duke it out for your home. (Anyone who’s seen The Bachelor knows that kind of drama can be fun, after all.) But think twice before you do: This strategy can backfire. Buyers may walk away in frustration. 

Rather than starting a bidding war, ask all buyers to come back with their “best and final” offer by a certain deadline (say, within the next 24 hours), and then choose the one that’s right for you.

Remember: It’s Good to Give and Receive

At the end of the day, receiving an offer is a good thing! It means you’re getting closer to a sale. But remember, you may have to give a little in the negotiations, too. Keep your head on your shoulders — don’t make an emotional decision — and you’ll be all the more likely to get what you want.

Below is an update regarding the City of Santa Fe's proposed changes to the Short Term Rental Ordinance.  If you have questions please contact us and we would be happy to weed through all this with you.

At the City of Santa Fe’s Planning Commission meeting held on Thursday – June 18, 2020, the Planning Commission members postponed action on the proposed Short Term Rental law changes.  The Planning Commission agreed to take up the proposed changes at its July 16, 2020 meeting and will accept written comments through July 9, 2020.  Additionally, the Planning Commission agreed that there will be no public hearing at the July meeting to allow members to fully debate, amend and craft a final recommendation to the City Council regarding these changes.  Based on the advice from the Planning Commission’s attorney, Sally A. Paez, the ordinance changes will continue to be reviewed by city committees as the patrons of the legislation are committed to advancing the proposed changes to the City Council for its consideration by early August.

At the June 18^th Planning Commission meeting, members offered:

• Concerns about removing the Business Commercial District (BCD) from existing special exemptions in the current law;
• Concerns about eliminating the ability for corporate entities, LLCs, and trusts from owning Short Term Rental permits;
• Concerns with a new method of limiting the density of Short Term Rentals by creating a 75’ radius between existing and new permit holders;
• Support for allowing the transfer of an existing Short Term Rental permit to another family member or trust; and
• Raised a series of editing inaccuracies in the extensively rewritten draft.

Approximately, 30 individuals provided testimony at the City Planning Commission’s Zoom meeting with 12 individuals generally supporting the proposed changes and 17 individuals raising concerns or opposing the changes.  SFAR President, Susan Orth, provided public testimony urging the City of Santa Fe’s Planning Commission to postpone action and seek clarification on the proposed changes.

The City’s Quality of Life Committee will hear the proposed changes to the Short Term Rental ordinance on July 1, 2020.  It is unclear whether public comment will be permitted.  SFAR will provide meeting details as they are publicly announced.

The City of Santa Fe is proposed changes to its Short Term Rental laws; specifically:

• Grandfather all existing units with a caveat on existing permit owners that upon expiration, the owner may be eligible to timely renew, while
• Prospectively limiting the number of short term rental permits to one per natural person, as defined as an individual human being, as opposed to an organization of any form or a business entity.
• Prospectively limiting the proximity of short term rentals on residentially-zoned property, if the subject property is located within a 75 foot radius of a residentially-zoned property that has a permitted short term rental unit.
• Require a local operator for short term rental units to adopt recordkeeping and reporting requirements for short term rental unit owners and host platforms.  If the host platform collects rent for a short term rental unit, then the host platform must also maintain such records. Specifically, for current calendar year and three immediately preceeding years, the following:
  • The total number of times and number of nights that the unit was rented to guests each calendar month;
  • The total amount of rent paid by guests by month, and
  • The total amount of each type of tax and fee paid to the city for in connection with rental of the unit by month.
• Limit short term rental permits to 25% of a multi-family development that contains four (4) or more dwelling units.
• Reduce from 3 times to 2 times the number of legally allowed occupants (guests) for any gathering.
• At issuance of permit or renewal notify neighborhoods within 200 feet of the short term rental with information regarding its operation as required by law.
• Require host platform operators to list city business license number with rental and a monthly report to the city to include:  total number of short term rental unit listings and owners in the city; total number of times and nights each unit was rented to guests each calendar month; and the total amount of revenue collected from all rentals through the host platform in the city, including rent and each type of taxes and fees.
• Require local operators to reside within the boundaries of the City of Santa Fe.
• Reduce the annual short term rental fee from $325 to $290.
• Eliminate the requirement for adequate insurance or proof of insurance.
• Adds the ability of the Land Use Director to request additional information, documentation, and submittals.
• Prior to issuance of a short term rental permit, the owner of the unit must have a certificate of occupancy to ensure compliance with all applicable codes and a city business license.

The City of Santa Fe is proposing Changes to the Short Term Rental Laws.  These could affect your property rights.  We suggest reviewing the proposal and if you have any questions please feel free to contact one of the talented Realtors at Leyba Real Estate LLC.   www.LeybaRealEstate.com

Proposed Changes to City Short Term Rental Laws

• Grandfather all existing units, while
• Prospectively limiting the number of short term rental permits to one per natural person, as defined as an individual human being, as opposed to an organization of any form or a business entity.
• Prospectively limiting the proximity of short term rentals on residentially-zoned property, if the subject property is located within a 75 foot radius of a residentially-zoned property that has a permitted short term rental unit.
• Require a local operator for short term rental units to adopt recordkeeping and reporting requirements for short term rental unit owners and host platforms.  If the host platform collects rent for a short term rental unit, then the host platform must also maintain such records. Specifically, for current calendar year and three immediately preceeding years, the following:
1. The total number of times and number of nights that the unit was rented to guests each calendar month;
2. The total amount of rent paid by guests by month, and
3. The total amount of each type of tax and fee paid to the city for in connection with rental of the unit by month.
• Limit short term rental permits to 25% of a multi-family development that contains four (4) or more dwelling units. 
• Reduce from 3 times to 2 times the number of legally allowed occupants (guests) for any gathering. 
• Require host platform operators to list city business license number with rental and a monthly report to the city to include:   total number of short term rental unit listings and owners in the city; total number of times and nights each unit was rented to guests each calendar month; and the total amount of revenue collected from all rentals through the host platform in the city, including rent and each type of taxes and fees.
• Reduce the annual short term rental fee from $325 to $290.
• Eliminate the requirement for adequate insurance or proof of insurance.
• Adds the ability of the Land Use Director to request additional information, documentation, and submittals.
• Prior to issuance of a short term rental permit, the owner of the unit must have a certificate of occupancy to ensure compliance with all applicable codes and a city business license.
• As of May 28 2020, the city has the following short term rental permits: