About Otero County, NM

As long as I can remember in this business, I have been told that "buyers are liars". Buyers will tell you what they want in a home and then choose a home that is the exact opposite. While recently working with a buyer client, they told me that they wanted 4 bedrooms, 2 full baths, two car garage, attached, with at least 1800 square feet of living space and would like to have an in-ground pool. And of course they wanted all of this for under $180,000! After extensive research of homes in our MLS, we visited over 30 homes in the area, 8 of which had the required pool (half way through the "pool" list they decided that a pool would be too much work in this desert climate). Once we had viewed all the homes that met their criteria, they decided they wanted to look at new construction. Mind you, the wife insisted that she would not look at anything under 1800 square feet. I explained that with new construction cost in our area it would be impossible to find anything over 1800 square feet for under $180,000. Long story-short--they wrote a contract on a new home, 1465 square feet, 3 bedroom, 2 bath home with no landscaping in the back, no refrigerator or w/d for $173,500!

My question is--are buyers liars or are they just confused as to what they want? I don't think they really know what they want until they start looking at homes that are available in their price range. Maybe I need to do a better job of educating them in the office before we go into the neighborhood and start looking at homes.

A team of economists who created a variety of forecasting models concludes that predictions of further large housing price declines are greatly overblown.

They point to the house price index of the Office of Federal Housing Enterprise as most reflective of reality. Its data reveals that only four states - Arizona, California, Florida, and Nevada - have had declines of more than 4 percent in home prices over the past year.

How are we faring here in New Mexico, particularly in Otero County? Records from the Otero County Association of Realtors (OCAOR) indicate that homes are selling for 95-97% of their asking price, which is usually based on a Realtors® CMA (Comparative Market Analysis), or a home Appraisal. New Mexico ranks in the top 5 states in the United States where housing prices have actually appreciated over the last year.

So why do we refer to this market as a "Buyers Market"? There is a glut of homes on the market now. Therefore, buyers have a variety of homes to view. Buyers can be picky about little things while shopping for the right home for their family. Sellers have to be meticulous about the small details that set their home apart from the home down the street. The favorite saying for real estate sales has changed from "Location, Location, Location" to "Price, Price, Price". Remember, we are in a pricing war and a beauty contest. Homeowners have to be realistic in establishing the price for their home. You may believe that your home is the "best home on the block", but buyers may not see it that way. When you overprice your home, you are actually helping sell the home down the street, that may have the same features as your home.

Do you find it hard to keep a positive attitude? I was talking with a fellow agent this morning while we were looking at homes on our weekly office caravan about the future of the market in our area as well as the nation. He mentioned that with all the job loses recently, he does not see how the market can get better, only worse. There was some discussion about the number of jobs available and how some people will only work in jobs that they specialize in. Our market has not been hit as hard as some but I am wondering, how do you keep a positive attitude around some who see only "doom and gloom"? I believe the answer is in the numbers. Knowledge is power. Know your market, know the numbers and keep up with what is happening. It is so easy to fall into the habit of seeing the glass half empty. Attitude is everything.

http://www.lebronlittlerealestate.com

I am a newbie to ActiveRain blogging. I will try to post a new blog at least once a week. I promise that this blog will be informative, interesting and, sometimes, entertaining. For now, if you are interested in home buying or selling information in south-central New Mexico, contact me. If you are interested in golf, contact me, that is one of my passions. If you home-brew your own beer, contact me, that is one of my hobbies. If you like real blues music, contact me, we have something in common. If you just want to get to know me better, well, you know, contact me!

A year has passed and I survived being a REALTOR during my first year licensed in New Mexico. Probably wouldn't have if it hadn't been for my military retirement and a good savings. It has been hard, even in our community where sales have only declined a little. Our market lagged here only because people read newspapers and listened to our wonderful news we have on television and radio. Our community didn't suffer layoffs, or businesses moving elsewhere. We've even had new large businesses move to our neighborhood. My partner and I do local advertising... hell we've advertised so much, I lost track of who we advertised with. Sales have been good since March and seem to improve everyday, so I believe the advertising is paying off.

So, heading into year two with smiles on our faces... let's get back to what we do best... sell real estate.