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Buyers Concerns

Introduction

We have outlined the following concerns because this may be your largest purchase or sale of your most valuable asset, your home. This information simply reflects some of the major concerns we have experienced when working with Buyer and Seller over the years. All information should be confirmed for accuracy, as most codes and information are in a continuous state of change. Our intention is to help you purchase and sell your property in a knowledgeable manner with as few surprises as possible. The information that follows is in no way related to, or reflects the opinion of, Santa Fe Properties Inc.

1. Closing Costs:
The Buyer's Closing Costs are usually under $1000, plus any research, Legal Fees, Inspections, Lender's Fees, and Appraisals.
Title Insurance Cost, Title Exceptions and the cost to delete them

2. Inspections:
  1. Obtain any information on the house you can get i.e., Plans, Prior Inspections, Surveys, Well permit, Drillers Log, Septic Permit and Seller's Disclosures (if available).
  2. Have the house professionally inspected. Your Inspector, the state of New Mexico and the city of Santa Fe Building Department, are not responsible for anything they may have missed when they inspected, therefore, be there in person during the inspections and ask questions. Have a Contractor or "knowable" friend join you, if possible.
3. Know where your water comes from.
  1. Call the supplier for the most recent test, if the property is on a well, and have it tested. Understand the limitations on the use and amount of water, whether on a well, community or municipal water system. You may be limited to a ¼ acre foot per year = 233 gallons per day in most cases. The fines and penalties kick in for over use on a monthly basis, not averaged over the year.
  2. If on a septic system, please see: Seller's Concerns, State Required Septic Certification.

4. Radon
  • Have it tested. The test is performed with all windows and doors closed, no air disturbance or outside airflow. However, understand that the standard test does not account for "lifestyle" or how you live in the house, e.g., opening windows and door traffic. Also be aware that a future test may affect the re-sale value of your home. In general, the EPA assumes people live with all windows and doors closed with maybe air conditioning (a closed system) and relatively no out door ventilation. Ask your Inspector.

5. Lead Based Paint
  • As of 1978, the use of Lead Based Paint is no longer legal. However, because painters and suppliers had excess stock, it may have been used in houses built through the 1980's, if a concern, you should probably consider testing.

6. Cracks (Expansion and Contraction)
  • As the saying goes, wood has knots and plaster cracks. This is just natural. Have your Inspector qualify the size and extent of the plaster and slab cracks, and then determine if hiring an Engineer might be an appropriate next step. All plaster and concrete floors have some cracking through natural expansion and contraction (Parapet cracks, that might allow rain and snow melt to penetrate, are the most common repairs.) Our outdoor temperatures sometimes deviate up to 50 degrees to 60 degrees from day to night in the winter.

7. Title, HomeOwner Associations and Related Fees
  1. Title Binder, Covenants, and Home Owner Associations: (these may apply to Lots as well as homes).
  2. Whether Buying a home, townhouse, condominium or a lot, know the history and future cost, restrictions and obligations associated with that you are buying.
  3. Read you Title Binder, require legible backup documents. In my experience, most buyers are advised to delete standard exceptions 1, 2, 3, 4 and 5. This could be at the seller's or buyer's expense.
Title Insurance Cost, Title Exceptions and the cost to delete them

8. Home and Lot Owners Associations
Get the name and phone number of an Association officer to:
  1. Find out what the dues are and what they cover.
  2. Find out if there are any special assets planned in the future.
  3. Get a copy of the minutes from the last Association meeting.
  4. In the case of a condo, a Resale Certificate for Resale, a Declarant's Certificate for a new unit.
  5. In general the county does not maintain most subdivision roads. In the city and county you can't count on snow removal, so this will most likely be an Association expense.
9. Insured Access
  • Depending on where you buy, in some cases, it is a good idea to have the access to your property insured to the nearest public road. You want to have the existing access that you drive on insured; not an easement on a Plat as they may be different.

10. Mineral, Oil and Gas Rights
  • For Santa Fe County Oil and Gas Drilling Ordinance, go to: www.SantaFeCounty.org, then Home, Search, type in Oil and Gas, hit Santa Fe County: County Attorney Oil and Gas Drilling Ordinance, then download the Final Ordinance. For any update or clarification call Santa Fe County Land Use at 505-986-6225

11. Home Occupancy
  • The City of Santa Fe and County have very specific guide lines concerning working in your home, however, your neighbors and subdivision covenants may over rule.
  • Some major issues:
    1. Noise and odor
    2. Added traffic and employees (this includes UPS and Fed Ex)
    3. Size of work space versus size of living space
    4. Number of Employees
Call the city or county for the current ordinance.

12. Renting my Property
  1. Short and Long term rental of your property:
  2. Call the city or the county and check your covenants. If your neighbors complain, most likely you are out of luck. People tend to party when just renting for a short time. This can be disturbing to your neighbors.
  3. See link: City of Santa Fe - Short Term Rental Ordinance
13. Road Noise and Other Distractions
  • Check for road and other city noises e.g., hospital, ambulance siren and medical helicopter. Road and city noises are carried by the wind, normally from the west or south west. Check at peak traffic times. If around the Airport, check for flight patterns. Planes must take off and land into the wind. Sound is generally magnified by snow, similar to water. And don't forget our new (green) diesel commuter train that stops multiple cars at every intersection it crosses. (Affectionately known as the Traffic Jamer.)
  • Check for future roads, developments and commercial projects.
  • Because development and roads are an evolving or moving target, for current information contact:
  • Santa Fe County Land Use, 505-986-6225
  • City of Santa Fe, 505-955-6585
  • Or I would suggest hiring someone likeJim Seibert, (505-983-5588) a Planner, owner of Seibert and Associates to investigate your concerns.

14. Guest Houses (Check your covenants first)
  • A guest house may not be easy in general. In the county you need 2 times the minimum lot size and two water meters or 1/2 acre of water and still there is no guarantee. Most municipalities assume a second house (Guest House) will at some time be a full time residence. Also you may or may not be able to rent it out. Generally speaking, you may have a studio with either the bathroom or kitchen but not both.

15. Swimming Pools
  • Generally not allowed. If allowed most likely you must tank in or import the water for the pool. (We live in a high desert draught sensitive environment).

16. Caution: Protective or restrictive covenants versus City or County Codes - the most restrictive applies.

17. Crime

18. Legal Advice
  • I personally always use my Attorney when I purchase or sell property for myself. Find a Real Estate Attorney you are comfortable with. Limit his or her input to what you need help with. Try and get them to give you an estimate of cost. Ideally have the purchase agreement reviewed after you and the seller have negotiated the major terms and conditions of the contract. Have an Attorney "review period" after agreement by the parties in the purchase agreement. As my attorney says, "It is much less expensive to have it done properly the first time". For free legal advice concerning the title binder use a Title company, that has a full time Attorney on staff, in the office, a Title Company you intend closing with. Most Title companies don't have an "in house" Attorney. Don't accept one that doesn't. The Title Company and their Attorney have to be neutral facilitators of the transaction. They cannot take the side of the buyer or the seller, but in most cases they can clarify your questions and concerns regarding title and title exceptions.

19. Santa Fe Public Schools

In Conclusion

river ranch sale
These concerns will be clarified and revised as new issues evolve. This is not intended to address all matters of a transaction; just the major ones that come to mind now. Please feel free to email us with your comments, questions and inquiries. Phone numbers are most welcome and in our opinion enhance the communication process.

Helpful phone numbers:
  • PNM Electric: 1-888-342-5766
  • NM Gas Co.: 1-888-664- 2726
  • City of Santa Fe Water Dept: 505-955-4333
  • Eldorado Water Dept.: 505-466-1085
  • Santa Fe County Land Use: 505-986-6225
  • City of Santa Fe Land Use: 505-955-6585
  • City of Santa Fe Police: 505-428-3710
  • Santa Fe County Sheriff's Dept.: 505-986-2455

  • Your Realtors:
  • John DeVito, 505-690-1998
  • Don DeVito, 505-690-1866