Red River Homes

Recap of 2009 Red River, NM. Real Estate market

2010-01-21T14:12:00.000-07:00

Recap of 2009 Real Estate market in Red River, NM.

Red River has once again proven that this is a great place to invest or buy a vacation home.

Heres some numbers from 2009:

Although Red River did experience a slight decrease, prices and volume held up remarkably well.

Volume went from 45 units sold in 2008 to 40 units sold in 2009 (11% decrease)

Total dollars sold went from 9.5 million to 7.7 million (9% decrease)

The average sale price did drop from 213,000 to 193,000. (9% decrease)

One interesting thing was the days on market actually dropped 10% meaning that the properties that sold were on the market 10% less time than they were in 2008. So the buyers are there.

So overall we had about a 10% decrease in activity but lets compare this with the stock market. From it's peak to the date of this writing the stock market has lost about 25% of it's value. Many real estate markets have had up to 50% decreases in value. OK, I know we haven't kept up with Gold prices but we also aren't hawking Red River Real Estate on prime time TV and I can promise you having a vacation home in Red River is way more fun than the Gold or the Stock Market.

In 2009 properties in Red River sold for an average of 90% of asking price, and remember they sold in 10% less time than they did in 2008.

So is Red River the Shangri La of Real estate investment?

mmmm, yes!, and right now it's snowing like crazy. I think I'll go skiing this afternoon.

Please call or stop by if you have any questions about buying or selling your Red River home.

Rob Swan

swan754@gmail.com

Resort Realty

575.770.2958

Red River, NM, October list of home price reductions

2009-10-13T13:13:00.001-06:00

Here is the October list of selected homes that have had significant price reductions. If you are looking for a deal, use this list as a starting point.
Click here for a link to the MLS listings for more detailed information on each property listed below.

If you would like further information or would like to schedule a showing feel free to give me a call.

MLS #	Asking Price	Original Price	Type	Beds	Baths	Address
82349	$240,000	$325,000	House	3	1.5	20 Riverside Drive
86909	$249,000	$310,000	House	3	2	1 Sangre De Cristo Dri.
85597	$249,500	$299,500	House	3	2	720 E High Street
86527	$250,000	$299,500	House	2	1	212 Heartbreak Tr.
85102	$259,000	$285,000	House	3	2	62 Upper Valley
87351	$299,500	$329,500	Townhouse	3	2.5	1102B East High St.
85219	$335,000	$415,000	House	2	2	35 Mt Shadows #1
84134	$375,000	$750,000	House	4	2	324 A Stagecoach Bend
84186	$495,000	$675,000	House	3	3	1638 Bobcat Peak
83877	$990,000	$1,500,000	House	5	5	1533 Youngs Ranch Rd.

Don't give potential buyers a "To Do" list

2009-10-12T16:19:00.000-06:00

Selling your home? Don't give buyers a "To Do" list.
As soon as you put your home on the market, you are in the home selling business. Most sellers want top dollar for their properties but then leave a lot to be desired in the condition of the home. Now nobody expect sellers to do a full remodel before selling, but how about cleaning the carpet if it's dirty, replacing rotten boards in a deck, touch up the landscaping a bit or just cutting down the weeds around the house. None of these things cost much but can go a long ways in making your house look better to a potential buyer.
It is a very normal occurrence for a buyer to walk into a house and start thinking about what they can do to make it better. Every time they mention an improvement, the more money they may attempt to discount from the asking price, or if the list gets too big they will just move on to the next house.
When you list your house, ask the Realtor what you should do to get the fastest sale at the best price. Then work with them to achieve your common goals and keep that potential buyers "To Do" list as small as possible.

What will you do to sell my home?

2009-10-01T16:02:00.000-06:00

How exactly are you going to try and sell my home? This is the question that any potential seller should be asking, but far too many do not. It used to be that an ad in the paper and a Polaroid picture on a flyer would suffice as advertising. Those days are long gone.
Then there was a time when a seller would be impressed when the brokerage would tell them that their property would be on "The Internet", not knowing that even in it's infancy, the internet still had millions of pages and websites without an effective way to sort through them.
Now the seller needs to ask, exactly where and how do you advertise on the Internet. Internet advertising can and will vary widely between brokerages. Almost every brokerage these days has a website and some may only place your listing on their brokerage website. Then there's brokerages which not only have their own websites, but also use many Internet syndication techniques in order to maximize the exposure for their clients. This is the broker you want to look for.
So how can you tell who is doing what, and which brokerage should you use to list your property? The first step is to ask. Where on the internet do you advertise? If they mention their website and can't offer anything else, then you need to look for another broker. "The proof is in the pudding", if the brokerage is truly doing a great job of internet advertising then it will show up when you compare the listings sold with other brokerages. According to the National Real Estate Association, 80% of home buyers use the Internet to aid in their search so a potential buyer better be able to easily find your property.
The internet is a dynamic place that is always changing. Internet marketing is a lot of work and has to be continually managed. Ads expire and are automatically deleted from websites. Website traffic can change, making a formerly insignificant site very relevant, so you can see how important routine maintenance and diligence can be. What worked last month may have to be re-adjusted or changed to work this month.
Make sure you are comfortable with how your property is being marketed and be sure to ask a lot of questions. If you are thinking about listing your property, ask us how we advertise at Resort Realty, we have lots of answers.

Seller Financing, it never hurts to ask

2009-09-25T10:49:00.000-06:00

Seller Financing, it never hurts to ask. The last piece I wrote consisted of a list of properties in Red River where the sellers had made it public knowledge that they were willing to seller finance. But what about all the other properties out there? Will those sellers finance? The only way to really find out is to ask.
Property owners may be more or less likely to be willing to owner finance depending upon their situation.
Situations that may be beneficial for the seller to finance:
1) The seller has title free and clear with no existing mortgage in place
2) The seller has an existing mortgage in place and the seller is willing to do a wraparound so that the payments received from the new buyer will eventually pay off the existing mortgage and possible make the seller some extra money also.
3) The seller would like to receive the interest income that would otherwise go to the bank.
Situations that may not be beneficial for the seller to finance:
1) The owner will need to receive all the money in one lump some in order to purchase a replacement house for themselves.
2) The property has been inherited by the heirs and now there are several people involved.
3) The owner plans on using the proceeds in a 1031 tax deferred exchange to purchase more property.
There is always the chance that you may want a piece of property and not know anything about the sellers situation. In this case just ask. The easiest way to ask is to have have me write up an offer with a "Seller Financing Addendum" attached to it. Your purchase agreement will now be contingent upon the owner agreeing to finance all or a portion depending upon what you specified in the addendum. If the seller doesn't agree, then you have no further commitments and the entire agreement is void.
The more enticing you make your offer, the more likely the seller will be interested. Make sure the terms of your offer are fair, and remember that all of this is negotiable. The more down payment you can come up with, the more comfortable this will make the seller. If you need lower payments then you can amortize over a longer period of time, but keep in mind, most sellers don't want to wait 20 or 30 years to be paid off. In this case you can still do a 30 year amortization to keep the payments low, but just add a balloon that will come due at an earlier time. This just means that you will have to refinance when the balloon comes due. If you have been prompt on payments, the original seller may even do the refinance for you. Again, all you can do is ask and everything is negotiable.
In the past year, I have sold one of my own properties with seller financing and have two more on the market, both with seller financing options. With banks asking for more and more from prospective buyers, seller financing has worked out well for me and the buyers.

National Georaphic Adventure Magazine article on Red River, NM

2009-09-15T19:12:00.000-06:00

I have been in Red River, NM for over 21 years and I have always known what a great place it is. Apparently now, so does National Geographic. The article below is a re-print from the Oct. 2009 issue.

Q: Just Graduated?
A: Wait out the worst job market in 20 years in...

RED RIVER, NEW MEXICO

Pop. 515

Carved into a sandstone canyon in the Sangre de Cristo Mountains, Red River is an ideal recessionary hideout: Lift tickets at the Red River Ski Area are almost half of what you’d pay in most Rockies resorts. Fat Tire drafts are $3. And when your parents (inevitably) come to check in, you can even pick up the tab—a night’s stay at the Alpine Lodge on Main Street is $83 in peak season. Bucky Thrash, 27, came to visit a college friend and liked the cheap, no-stoplight living so much that he quit his job as a marketing consultant in Fort Worth and relocated, quickly landing gigs as a bartender and ski instructor. “Nothing is corporate here,” he says. “Not even the ski area. You have to drive an hour just to find a McDonald’s.”
Red River began as a prospecting town, but powderhounds gave it new life after the mines went bust. Today the ski area has 57 trails and seven lifts connecting the mountain directly to Main Street’s hodgepodge of Old West and Swiss Alpine facades. Après ski season, Red River, at 8,750 feet, stays cooler than much of the Southwest (July temps rarely top 75&176;F) with easy access to the cottonwood-covered mountains of Carson National Forest. Hike eight-mile Wheeler Peak Trail to the state’s 13,161-foot high point. Or raft the Class III Rio Grande with New Mexico Adventure Company (bighornsports.us ).
Closer to home, Red River’s community center organizes free activities up to five times a day—outdoor movies, group hikes, BBQ cook-offs. Our advice: Take advantage of them; career options are limited. (The mayor not only sells real estate but owns the lone food market with her husband.) And when the economy picks up, be ready to get creative with your résumé: “Mixologist” has a much better ring to it than “barback.”
$400 monthly rent gets you: A one-bedroom apartment, ten minutes’ walk to the ski area.
Job market:Bartending and ski instructing pay the bills. Careers outside of tourism are hard to come by.
Know before you go: Red River is entirely surrounded by national forest—1.5 million acres of it.
BY THE NUMBERS:
$61:Lift ticket at Red River Ski Area
28: Hot springs within an hour’s drive
218: Inches of powder a year

Buy property in Red River, NM. through owner financing

2009-09-14T17:46:00.010-06:00

Banks aren't any fun any more. They are wanting more down and higher credit scores, and the reality is, many people have less to put down and lower credit scores.

This creates a large void between buyers and sellers. One way to fill this void is through owner financing. This is a relatively simple process that can work well for everyone involved and speed up closings, which should make everybody happy.

I have put together a list of properties currently available in Red River that the owners are willing to consider financing the purchase themselves. I have listed some single family homes, a vacant lot, and even a couple commercial properties.

Take a look and let me know if you would like more information or would like to see them in person.

There is a lot more information available on these properties if you click the link to the MLS listings I have provided below.

MLS #	Type	Address	Acres	Price	Sq. ft
87355	Home	911 Tenderfoot Trail	0.2	$195,000	1200
86977	Home	1612 Bitter Creek Rd.	0.22	$239,000	1525
87490	Lot	4-3 Cabresto Creek Rd	5	$100,000	0
85300	Comm.	518 E Main Street		$345,000	1400
87833	Comm.	601 W Main Street	0.28	$550,000	5000

Link to actual MLS listings for more details

Top Ten best deals on Red River, NM Homes

2009-09-05T14:58:00.011-06:00

Top ten best deals on Red River, NM homes

Everybody is always looking for a great deal, so I put together a Top Ten list of the best deals on Red River homes based solely on price per square foot. The average asking price per square foot in Red River is currently $186 with prices ranging from $83 - $415.

Below the list I have added a link to the actual MLS listings, that include photos and more detailed information about the particular properties. If you have further questions or would like to schedule a showing, pease don't hesitate to Email me or give me a call. (575) 770-2958

MLS #	Square Feet	Price	Price per Sq. Ft.	Address	Bedrooms	Baths
85854	4600	$379,900	$83	101 Black Copper Canyon	5	3
84716	1440	$149,900	$104	320 Stagecoach Bend	3	2
86846	2011	$249,000	$124	910 Tenderfoot Trail	3	2
86591	4000	$498,000	$125	920 Tenderfoot Court	4	3
87383	2083	$279,000	$134	302 Stage Coach Bend	4	2.5
85504	1300	$175,000	$135	24 Valley Drive	4	1.5
85347	2200	$312,500	$142	12 Valle Verde Drive	3	3
86909	1700	$249,000	$146	1 Sangre De Cristo Drive	3	2
82349	1540	$240,000	$156	20 Riverside Drive	3	1.5
86977	1525	$239,000	$157	1612 Bitter Creek Roak	3	2

Link to photos and more information about the above listings

I will continue to post this Top Ten list and other useful information about homes in Red River. If you would like to stay updated, just subscribe to the RSS Feed in the column to the right to have updates posted to your Reader or your Yahoo, or Google front page, or you can always send me an email and I will be happy to deliver them directly to your inbox.

Recent price reductions on Red River Homes

2009-09-03T11:20:00.001-06:00

Recent price reductions on Red River Homes

The Red River Real Estate market has really done a great job of holding steady. Fortunately we haven't seen the drastic price decreases that have effected so many other markets. However, I have recently gone through the inventory of homes for sale and selected some desirable properties that have recently experienced price reductions. I have given a brief description of each property below and attached a link to the actual listing if you would like more detailed information.

MLS# 86306 - Valley Condos, Unit 104, 2 bed, 1 bath condo, $94,500 reduced to $89,500 MLS# 86909 - 1 Sangre De Christo Dr., 3 bed 2 bath house, $310,000 reduced to $249,000 MLS# 86846 - 910 Tenderfoot Trail, 3 bed, 2 bath house, $269,000 reduced to $249,000 MLS# 86527 - 212 Heartbreak Trail, 2 bed 1 bath house, $275,000 reduced to $250,000 MLS# 85102 - 62 Upper Red River Valley Rd., 3 bed 2 bath house, $285,000 reduced to $259,000 MLS# 86825 - 1305 Powder Puff Trail, 3 bed 2.5 bath, $398,000 reduced to $367,000 MLS# 85219 - 35 Mountain shadows #1, 2 bed 2 bath house, $415,000 reduced to $335,000 Link to listings for more detailed information on the above properties

What recession? Red River business is up.

2009-05-21T10:40:00.000-06:00

Although I don't believe any area of the country is immune to the effects of the recession. There are some areas that seem to still be doing Ok. Red River has seen gross receipts taxes up over 12% for the month of April and up almost 7% year to date.

I think much of Red Rivers success comes from the fact that it is a drive market and relatively inexpensive compared to many of the Colorado areas. People are still choosing to go on vacation but they are tending to do it closer to home and spend a little less if they have the option. Northern New Mexico is well located to those within our region, particularly those from Texas and Oklahoma. Red River is on average anywhere from two to four hours closer than the Colorado resorts which doesn't sound like much but it does appear to be making a large difference in maintaining and growing business throughout the recession.

Now may be the time to buy Red River

2009-05-21T10:36:00.000-06:00

As the cost of Ski Area properties have continually climbed over the past decade, Red River has remained an affordable option for vacation home ownership. In general ski areas have not experienced the vast drops in property values that has plagued the rest of the country. For the most part, ski area real estate has either remained stable or experienced slight devaluation.

Now may be the time to buy. Prices per Square Foot have devalued slightly in Red River over the past year. This may or may not be the bottom but it appears that most of the devaluation has already taken place. There are some great properties on the market for vacation or retirement homes and if you are looking to relocate and run a business, there are some turn-key operations now available.

Keep in mind that a vacation home can also generate revenue to help offset the cost of ownership. Many home owners do rent their properties, either themselves or through a property management company and receive rents anywhere from $100 to $400 per night. Feel free to contact me at anytime to explore the possibilities.

Red River Ski Areas Main Chairlift to be replaced

2009-05-21T10:24:00.000-06:00

Say goodbye to the old Red Chairlift and hello to a brand new Dopplemayer triple chair. This summer Red River ski area will be replacing one of Red River's most recognizable structures. Seeing the old Red Chair leave is a bit sad, as I have spent the last twenty years riding it. However, the sadness quickly dissipates when I think of the ride being shortened from 15 to 11 minutes. That didn't sound like a lot until I figured out that I can now get in at least one more run on a powder day before I have to go to work. Also, the added capacity and speed should almost completely eliminate lift lines during the peak times of Christmas and Spring Break.

So what does this mean for us homeowners? To start with, it means that our the ski area is doing a great job of investing in infrastructure. History has shown that ski areas that have upgraded and invested significantly in their infrastructure have not only seen increases in skier days but also increases in commercial and residential property values in their communities. Sun Peaks ski area, a similar sized resort in Canada started investing heavily in itself in 1994 and have since realized a 17% annualized increase in skier days over a 14 year period and a 10% annualized increase in residential property values over the same period bringing current values to between $500 and $600 Canadian dollars per sq. ft.

Now is Red River going to see this kind of increase over the same period? That I don't know, however, history has shown that every other ski are that has invested in itself has not only helped itself but also the community in which it resides. Even in the midst of the current recession, The Red River Ski Area had a fantastic season. The management has done a great job of not only maintaining current Ski Area operations but also investing in the future of Red River.

Tax benefits of renting your Red River property nightly

2009-05-21T10:22:00.000-06:00

According to the IRS, if you rent your property 15 days or more per year, the property can be treated as a residential rental property. Rental properties, as with any other business are eligible to deduct certain expenses that relate to the operation and upkeep of the property. One of the major expenses that a lot of people don't realize is that depreciation can be written off. According to IRS publication 527

" You begin to depreciate your rental property when you place it in service for the production of income. You stop depreciating it either when you have fully recovered your cost or other basis, or when you retire it from service, which ever happens first"

So, if you rent your property for 15 or more days a year, you have essentially converted it from a residence to a business, and therefor are eligible for certain tax exemptions that businesses enjoy.

The IRS rules in regards to residential rental property are not complicated, but I would highly suggest referring to the above publication or consulting with your tax preparer for more details.

Some other expenses that you may be able to use as a deduction include, but are not limited to:

- Cleaning and Maintenance

- Insurance

- Mortgage Interest

- Property taxes

- Utilities

- Phone costs, PO Box, internet costs related to your rental property

- Building repairs

- Education

- Attorney, Accounting, and other professional fees

- Management Fees

- HOA Fees

- Insurance

Keep in mind that not all rental properties in Red River can be rented nightly. Red River has different zones where this is allowable. If you are interested in renting, let your Realtor know this before you begin your search.

Many properties in Red River have the potential of generating significant rental income. This income can significantly reduce the cost of ownership or even generate a profit. Many owners of homes, town houses and condos, rent their properties either themselves or through a property management company. Property Management companies charge anywhere between 40 and 60 percent depending upon the company and the services provided. Even with this additional expense, renting your property may be the way to go. Please feel free to contact me for more details.