Several local independent Santa Fe real estate brokers (yours truly included) were interviewed several years ago by the Santa Fe New Mexican newspaper and asked, “What is it like to be an independent real estate broker when in competition with large firms?” Here is the link to the article:

http://rismedia.com/2004-09-26/neighborhood-watch-small-realty-firms-carve-out-niche-in-santa-fe-nm/

I think the article provides some insights into why an official in the Santa Fe Association of Realtors was quoted as saying that 20 percent of agents, many of those in small agencies, make 80 percent of the real estate sales in Santa Fe.

In my humble opinion, no matter the size of the brokerage for which the broker works, the broker's emphasis should always be on providing the highest quality, most ethical service to all concerned in the transaction while working to achieve professional results for the customer.

Santa Fe County, New Mexico has recently published a marvelous document entitled the "Code of the West or How to Avoid Surprises and Be a Good Neighbor When You’re Buying, Building, and Developing in Santa Fe County".

The "Code of the West" is written to dispel common misconceptions that may arise when people are considering buying or developing real estate in unincorporated areas of Santa Fe County, NM. Just a few of the topics covered are:

You can't mess with Mother Nature and expect to get off easily;

Neighbors may allow hunting activities on their property;

Keep your best friend in your own yard;

What can I do on my property;

Deference to Native American Pueblo sovereignty;

and, my personal favorite,

What to do when you encounter a livestock drive. 

There is much vital information. I strongly recommend the "Code of the West or How to Avoid Surprises and Be a Good Neighbor When You’re Buying, Building, and Developing in Santa Fe County". It is very well written and compelling reading. The complete document is free and is available at Santa Fe County's website: http://www.santafecounty.org/userfiles/CodeoftheWest2010.pdf

I received a call from a friend this morning asking me what the mysterious pieces of colored fabric which suddenly and mysteriously appeared tied to trees and wooden stakes around and on his neighbor’s lot mean. My immediate question was “What color are they?”

Those who work with real estate often encounter these fabric markers, called “flags”, tied to wooden or metal stakes driven into the ground, around tree trunks, on the tips of tree branches and other anchors. Marking may also be accomplished by using paint for these markings. When spray paint is used for these markings, fluorescent colors are typically used.

This process, called “flagging”, is most commonly identified with surveys.  However, in addition to flagging for surveys, another need is for marking or identifying underground utilities. It is important to mark underground utilities and underground structures so that they will not be disturbed during excavations, to enable location for repairs, and for avoidance of unseen encumbrances or dangers.

A uniform color code has been developed by The American Public Works Association (APWA).  The APWA Uniform Color Codes for temporary markings are:

A downloadable card of the APWA Uniform Color Codes in pdf format is available at www.apwa.net. The complete link is

 http://www.apwa.net/Documents/About/TechSvcs/One-Call/COLORCC.PDF. I carry a copy of the Uniform Color Codes in my briefcase and another in my glove box so that I always have a handy reference when I am on a property and encounter mysterious flags.

A highly significant, yet little-known change was made to EPA Lead-Based Paint Rules by the George W. Bush administration in 2005. The change will impact all homes built prior to 1978. The effective date for the new rules is April 22, 2010.

According to EPA Administrator Stephen L. Johnson, "Under President (George W.) Bush's leadership, we are addressing one of the greatest environmental challenges facing our most vulnerable residents: childhood lead poisoning....''

Lead is a highly toxic metal that was used for many years in paint. Lead can cause a range of health effects, from cognitive impairment and learning disabilities, to seizures and death. Children under six years are most at risk because their developing nervous systems are especially vulnerable to lead's effects and because of their more frequent hand-to-mouth behavior.

EPA is proposing that contractors must be trained in the use of lead-safe work practices, renovators and firms be certified, providers of renovation training be accredited, and renovators follow protective work practice standards. These work practices include posting warning signs, restricting occupants from work areas, arranging work areas to prevent dust and debris from spreading, conducting a thorough cleanup, and verifying that cleanup was effective.

The rules would apply to all persons who do renovation for compensation, including renovation contractors, maintenance workers in multi-family housing, painters and other specialty trades. See: http://www.epa.gov/lead/pubs/renovation.htm

My summary:
If you hire a contractor to replace a window, you trigger the rule and a "white-glove" test.
If you hire a contractor to disturb 6 sq.ft. of interior surface, you trigger the rule and the white-glove test.
If you hire a contractor to disturb 20 sq.ft. of exterior surface, you trigger the rule and the white-glove test.
Spot tests may be performed to determine whether lead-based paint exists in the home.
Spot tests must be done by a certified tester.
If you hire a contractor, you have to use a certified renovator as your contractor.
The certified renovator must keep records and provide those records to the homeowner.
Records must become part of all future disclosures.
Penalty is up to $37,500 per DAY per VIOLATION.
Any citizen (neighbor, passer-by) can sue and collect legal fees.
Do It Yourself for owner-occupied home is exempted.

As of July 6, 2010, contractors performing renovations on owner-occupied properties are required to perform said renovations in compliance with the Rule requirements regardless of who lives in the home.

To read the entire rule, go to www.epa.gov/lead.

One question that is universally considered in real estate transactions is “Who pays the real estate agent?”

In years long past, the seller always paid the real estate agent, whether the real estate professional had “both sides” (procuring both seller and buyer), or whether the real estate professional represented only the listing in the transaction while another agent brought the buyer to the transaction. For many decades after the great depression, the courts considered all agents as “sub”-agents of the seller. As such, the agent who brought the buyer to the transaction was actually working for the seller, even if it seemed as though the selling agent was representing the interests of the buyer.  Unfortunately, buyers’ best interests were not always well-represented.

With the advent of buyer agency in the 1980’s and 1990’s, sub-agent status began to disappear.  Many jurisdictions began to accept the concept that buyers could and should have their own agent representation.  The problem was that the buyers were expected to pay their agent separately from the sellers who paid only their seller’s representative.

This was an improvement for protecting buyers’ interests; however, for many buyers, compensating their agent-representative required a significant dip into the pocket.  For many buyers, this was an unreasonable burden.

The reasonable solution lay in the concept of the “transaction” paying all the compensation for both seller and buyer in the transaction.  After all, it is the transaction that is responsible for passing title and it is the transaction that is responsible for collecting proceeds.

The recent acceptance of the concept of the transaction paying compensation on behalf of both seller and buyer has given rise to the notion of “sides” in a real estate transaction.  The seller has a “side” and the buyer has a “side”. Thus, the agent representing the seller represents the seller’s “side”, as does the agent representing the buyer’s “side” of the transaction.  The transaction pays each side their pre-determined share, not the seller or buyer. This method has given rise to much greater transparency and fairness to real estate transactions

The answer to the question of “who pays the real estate agents their fees?” is now simple: the “transaction” pays the real estate agents their fees.

Welcome to the Gilded Village Blog, a site devoted to issues of real estate in Santa Fe, NM, USA. This is the first of a series of helpful marketing tips I call "Don's Marketing Mantras".  All our readers are encouraged to contribute your own helpful ideas, hints and tips.

Don’s first marketing mantra: “We get only one opportunity to make a first impression.”
 
An intriguing question related to real estate marketing is “When there are two highly similar homes next door to each other, same bedroom count, same bathroom count, same floor plan, similar location within the neighborhood, why does one sell before the other?”  For real estate analysts and appraisers who deal strictly with empirical numbers, the answer may be obscure because there is an emotional component of real estate that is very real, but very difficult to quantify.

I think of marketability in much the way an artist approaches a blank canvas.  An artist is very interested in a good plan in order to get it right first time; it is very difficult to “make-over” a completed, unappealing painting.  If we think of an existing home as a work of art waiting to happen, it is very easy to “make-over” an unappealing home.
 
Typically, enhancing marketability comes down to recognizing a need to de-emphasize our own personal tastes in order to successfully appeal to the larger universe of buyers.  It may be that our personal treasures are viewed by the market as confusing clutter; it may be that a touch of color in an otherwise bland room may make the home “pop”, or that the seller prefers subdued light by day when the market prefers bright and sunny.  Perhaps the winter woodpile is most convenient when placed by the front door, when the prospective buyer finds the placement unattractive and transfers the immediate and negative emotional reaction to the whole property before they’ve been inside the home.
 
Most marketability issues can be easily recognized by an experienced Realtor® and appropriately overcome with a minimum of expense. What is absolutely required is that the seller “let go” emotionally and make necessary changes.

The key to successful marketing is to make the tough decisions early in the process, hopefully before the home goes on the market, so that the first buyer's first impression is positive. Most sellers happily discover that when they take the difficult steps early, the rewards come more quickly.

Welcome to the best in Santa Fe's real estate overviews