Welcome To Santa Fe The place that's affectionately called "The City Different." It is called this because almost everything here is different - sometimes 'Muy Diferente' and this includes the way real estate is bought and sold. Dougherty Real Estate Co., LLC knows that this difference exists and that it may cause confusion and issues for people who want to buy real estate here. For this reason we have created this primer to help, you, the buyer of property in Santa Fe.
As a potential buyer of real property here, you need to know that you are participating in a market where, if the past is any indication, prices will continue to rise in real terms today and tomorrow. You also need to understand that there are many potential buyers in the market and that having a substantial knowledge about the market and market conditions is more important than ever.
La Villa Real de Santa Fe de San Francisco de Asis was founded in 1609 upon a royal land grant from the King of Spain. Surrounding areas were granted to Spanish families and to Pueblo Indians. The Treaty of Guadalupe Hidalgo, between the United States and Mexico in 1848, upheld these land grants and brought New Mexico into the United States as a Territory. In 1912 New Mexico became a State. More surrounding lands were then set aside for Federal and State use Santa Fe is the city at the end of The Santa Fe Trail from Missouri, The Camino Real from Mexico City and The Old Spanish Trail from California. In 1625 the population of Santa Fe was about 5,000 souls, by 1848 it had only doubled to 10,000, by statehood it was 15,000, and immediately following WWII it was 25,000. Since then, the population has been growing at the rate of about two and a half percent per year. In 2019 the population of Santa Fe is approximated at 83,700 and Santa Fe County's present population is approximately 148,750. In addition to this year-round population in the City and County, the area receives some 1,750,000 visitors each year. Many want to stay! The point of this history lesson is to demonstrate that available property for purchase and use, in and around Santa Fe, has actually decreased over the years while the number of people wanting to own it has risen.
Authentic Santa Fe ™
Dougherty Real Estate Co., LLC is a small, quality-oriented firm composed of long-time Santa Fe real estate brokers. We have over 100 years experience among us in every segment of the Santa Fe market. Entering into a buyer's brokerage agreement with us costs you nothing, may save you many dollars on your purchase, and certainly will ensure that you have an advocate who will look after your interests before, during, and after the transaction.
People have been coming to this ancient capitol city and county seat for centuries, in fact, for almost 400 years. Today, less than 45 percent of the lands in the State of New Mexico can be privately owned.
Sellers of real estate in and around Santa Fe, in order to address these numbers of potential buyers and to take advantage of these rising prices, are creating a new supply of properties by applying to the city and county for subdivision and other developmental permits. With these permits in hand, sellers are putting everything and anything on the market.
As a potential buyer of property in the City or County, you need to understand that the pressure created by "new" supply properties in the past has caused a myriad of new restrictions and limitations on the purchase, ownership, and development of these properties. Because the origins of real estate law are old, and in the case of New Mexico, ancient, these newer rules and regulations can be, and often are, in conflict with older ones. Sometimes in "The City Different" there is no single or simple answer to a question. However, understanding the history of various issues can make all the difference in understanding what the conflicts are and what your options can be.
Some of the restrictions and limitations include: water use, both historic and current, as mandated by county government and by litigation such as the Aamodt Water Suit and its settlement; the permissibility of guest houses, studios, second story additions, rental units, stables, swimming pools and tennis courts; historic styles ordinances affecting remodeling and additions; building codes; individual subdivision declarations, covenants, and restrictions; buildable site locations and envelope positioning; all commercial uses everywhere, and much, much more.
Many of the people who come to Santa Fe don't understand that despite our wide-open spaces, there really is not an infinite supply of land. We are like an island surrounded by an ocean of reserved Federal, State, and Indian lands. The land that is available is conveyed with strict county, city, and private covenants that stipulate just what can and cannot be done with it. Half-acre lots can sometimes cost more than ten-acre lots, and yet large parcels without utilities can cost a fraction of smaller ones with them. It is often less costly to build a new house than it is to remodel an old one, yet tax credits still exist for renovation of historic buildings. 'Asi es la vida.'
Finally, somewhere between the potential buyer of real property and the seller stands the real estate broker. This person is, most often, hired by the seller to represent the seller, not the buyer. This person is paid by the seller when the property is sold (regardless of its restrictions) to any one of the many competing buyers and for the highest dollar possible. This seller's broker is the person who puts the advertisement of the property in the newspaper or color magazines; this is the person who answers the telephone when you call; this is the person who tells you about the property and shows it to you, this person is the seller's representative, not the buyer's representative.
As a potential buyer, you need to know that you have the right to have your own real estate broker. Your buyer's broker will guide you through the competition, address your confusion, inform you about problems, and represent your interests exclusively in your purchase of real estate in Santa Fe and the surrounding areas. Thanks to a change in New Mexico Law, a Buyer's broker can be paid by the seller. This is most often the case in Santa Fe real estate transactions.
Such a relationship is termed a "buyer's brokerage" or "buyer's agency agreement." When you enter into an agreement with Dougherty Real Estate Co., LLC we function to ensure that you are a well-prepared buyer able to compete effectively, to understand fully, and to succeed readily in your purchase.
So, if you are thinking about purchasing real estate in Santa Fe, please call us. Let us tell you about who we are and what we can do for you. Our agents are here to provide you with knowledge, information and service. "Hasta la vista."