From The Taos News by Matthew van Buren

Acting forest supervisor Diana Trujillo signed a record of decision allowing Phase 1 projects under the Ski Valley's Master Development Plan to go forward. They include replacing several lifts, adding lifts to Kachina Peak and the West Basin, thinning about 72 acres for two new gladed areas, adding a lift-served mountain bike trail, developing a snowtubing center, constructing a snowshoeing "adventure center" and reconfiguring parking lots.

Concerns raised in the appeals ranged from larger crowd sizes to negative impacts on wildlife.

Taos Ski Valley's master development plan notes fluctuating annual visitation and the need to respond to consumers' demands with the addition of new lifts, "which are vitally important to meet customer expectations," among other measures. The plan also suggests developing additional activities to attract more guests in both winter and summer.

The Forest Service has responded to a number of comments that were made earlier in the process, and the record of decision approved the plans proposed by Taos Ski Valley.

Among the appeals the Forest Service received was one by "Carson Forest Watch," a Llano-based group organized by Joanie Berde. Berde's appeal focuses mainly on the area's wildlife and argues that the Forest Service failed to take the "hard look" at environmental impacts required by the National Environmental Policy Act.

"The (EIS and record of decision) fail to adequately analyze and disclose the cumulative effects of past development at TSV and adjacent areas, combined with current and future projected uses of this part of the Carson National Forest," Berde wrote.

Berde wrote that she worries future projects at the Ski Valley could "threaten the persistence of white-tailed ptarmigan, pine marten, boreal owl and Canada lynx in New Mexico." Her appeal argues that the Forest Service should have further considered the quality of adjacent habitat and the loss of habitat associated with climate change as part of its review of cumulative effects.

"(The record of decision and EIS) fail to address this important issue and how this project will only further threaten animals already under stress from a changing climate," Berde wrote.

She claims in her appeal that the Ski Valley area is the "last holdout" for a number of threatened species, including marten and ptarmigan.

"Surveys have found few of these species in other areas of Northern New Mexico or in the Carson National forest," the appeal states.

Berde wrote and that bringing more people to Kachina Peak and the West Basin ridge, constructing new lifts and removing trees "will further fragment and degrade this fragile area." She argues that the approval of Phase 1 projects "effectively opens the door" for future phases, as well, which should also be addressed.

According to a Forest Service response to a similar concern raised earlier, future projects would have to undergo "site-specific" analyses. Remaining projects from the Master Development Plan include a "Summit Lift," which would take skiers from the base to the top of Lift 2, a new beginner area on private land, a new restaurant at the top of Lift 2 and "miscellaneous trail improvements and construction."

Patrick Grace, of El Prado, also submitted an appeal, writing that he believes "the Kachina and West Basin lifts are a bad idea on many different levels," including the "visual impact" a lift to Kachina Peak would have. He argues in his appeal that bighorn sheep could be negatively impacted, as well.

"The installation of the West Basin chair, in my opinion, is only aesthetically a bad idea," the appeal states. "As an active skier at TSV, I see that the increased traffic in the West Basin will result in more injuries and a generally more impacted experience in that area."

Grace asks that the Forest Service not "overlook the responsibilities and duties as the stewards of our common lands to maintain what we as a collective community consider our birthright and inheritance of our children."

"The decisions you make today for the economic good of the few can rob our future generations their sanctuary from an increasingly modernizing and mechanical world," he wrote. "It can rob them of their actual identity through their connection with the real world (the mountain wilderness)."

The third appeal came from Emily Sadow, of El Prado. She wrote that she is "dumbfounded" that the approval was signed by an "interim" supervisor, and that the decision "should be made by someone who (has been) the supervisor for years." In her appeal, she also argues that the proposed projects could have a "huge impact" on the watershed and that the visual impacts of the projects would harm the area's "wilderness characteristics."

Grace and Sadow both wrote that they fear the addition of the lifts would lead to "open gates" into adjacent public lands. Grace wrote that it is "almost a given" that the ski area would petition for access into the "side country." He wrote that "there are about a dozen of us that are consistently active in the wilderness" and that the "wilderness experience" would be negatively impacted if the proposed projects are allowed to go forward.

"I know this is all speculation, but when you give an inch, they tend to take a yard or so," Grace wrote.

The EIS, dated Aug. 2012, does attempt to address most of the concerns raised in the appeals. The chosen alternative "is not expected to produce negative impacts to any of the analyzed federally or state-listed species," the EIS states, specifically listing species including the American marten, bighorn sheep, Canada lynx, white-tailed ptarmigan and boreal owl. Thinning would be done in a mosaic pattern, according to the EIS. It suggests taking mitigating actions, including surveying areas prior to glading and leaving downed logs and lower branches in place when possible.

"Keeping lower branches will provide habitat security for Canada lynx, snowshoe hare and American marten," it states.

Regarding concerns about out-of-bounds skiing, the Forest Service's response in the EIS states that boundary management is an "operational issue and is the responsibility of TSV" and that the boundary would continue to be roped and signed.

A Carson National Forest representative declined to comment on the appeals, stating that the regional office will provide a decision around late November.

Taos Ski Valley Chief Operating Officer Gordon Briner said he has read the appeals and that Ski Valley leaders believe the EIS addresses the concerns raised "in a pretty thorough way," though they are appreciative of a "healthy" appeals process.

Regarding concerns about "open gates," Briner said that issue should be separated from the addition of lifts. He said the idea of opening gates has been discussed for "over 15 years," but that it wouldn't be predicated upon the construction of new lifts.

"We have not made a decision to proceed with that ... It's certainly not a new concept," he said. "If we thought gates were a great idea today, we could go to the Forest Service today to talk about that."

Briner said the Ski Valley is waiting for the Forest Service to respond to the appeals before prioritizing projects and developing timelines. The Ski Valley's "preferred alternative," according to the EIS, would take place over 5-10 years.

Buying a money pit can nearly drive a new homeowner to lose their mind - and their shirt.

Here are 5 steps that will help you avoid a money pit when investing in the Taos Real Estate market.

1. Attend Inspections. When you're there in person, the inspector is able to physically show you the items that may need repair, and give you their professional opinion of how serious and large needed repairs may actually be at a level of clarity a written report may lack.

Sometimes, written inspection reports convey minor items (like reversed hot and cold faucets) as a red-flagged health and safety issue, and more major items (like a problematic foundation) as something that needs further inspection. If you are at the inspection in the flesh, you can brief the inspector on what level of cost and effort you consider major (and vice versa), and ask them to help you understand roughly where the property overall and any individual repairs needed fall, from that perspective.

2. Read the Reports and Disclosures. Attending your inspection is just the first step. Reading the inspectors' reports is critical to avoiding a money pit - both the reports generated by your own inspectors, and any reports and disclosures provided to you by the seller. Things to watch for and investigate further in the sellers' reports and disclosures include: repairs the seller completed themselves, repeated repairs to the same home system, water and leakage issues, and any reports of non-functioning mechanical or other systems in the home. In your inspectors' reports, make sure to notice: repair estimates they offer, items that seem like they will have to be completed soon (versus upgrades you can do over the long run) items that seem like they might run into big ticket dollar amounts, and especially watch for any recommendations that you get a specialist to look at something - some of the largest potential repairs are often dealt with in this way by a general property inspector. It behooves you to follow up on your reading of reports and disclosures by working with your agent to: list your questions and concerns, ask the inspector(s) and seller any follow-up questions you have, obtain follow-up inspections (including obtaining an extension of your inspection contingency, if needed) and obtaining reliable repair estimates. 3. Get Multiple Repair Bids. Most general property inspectors do not offer you a repair cost estimate with your report - many states even forbid it by law. Money pits often occur when buyers take a place knowing it needs what they thought was a little work, that actually turns out to be a much more costly or involved repair, once the actual repair contractor takes a look or starts the work.

Avoid surprises by getting multiple repair bids from reputable contractors while you are still within the inspection contingency time frame of your contract. These repair estimates can also provide the basis for any renegotiation you and your agent choose to initiate with the seller for price reduction, repairs or increased closing cost credits.

4. Stop Overconfidence In Its Tracks. Unless you are a construction professional (and sometimes even then!), all but the most minor home improvement or repair projects tends to take more time and money to do yourself than you expect at the outset.

Even if you expect to cut costs by doing some work yourself, I urge you to contact and obtain bids on the repairs and upgrades you plan from actual professionals, so you can at least be armed with the information about what it will cost to get them done if you can't complete them for any reason.

5. Prioritize Price Reductions and Credits over Seller Repairs. For the most part, I feel that buyers will select their own materials and repair contractors with more care and are generally more deeply invested in ensuring that repairs are completed to their satisfaction than an outgoing seller. If you are negotiating with your home's seller over repairs that need to happen, discuss with your agent whether it might make sense to ask for a price reduction or a closing cost credit to offset the cost of the repairs so you can have them completed to your standards, and with the materials and by the contractors of your choice, after closing.

When it comes to buying a home, your negotiation smarts can go a long way toward protecting your best interests and your cash. Here are 9 critical negotiation tips to help ensure you're getting the best deal:

1. Set your priorities early

Knowing what's really important early on is critical to getting a great deal. Ultimately, the bar for whether your negotiation is successful is determined by what the home and contract terms are worth to you.

2. Know your local environment

The best negotiators are the most informed. To get the best deal when buying, ask your Angel Fire or Taos real estate agent to provide data on these critical local factors: • Recent sold prices for similar homes • Average difference between asking and sold price • Average days on market for similar properties

3. Get the inside scoop

Don't make a blind offer. Make sure you ask your Angel Fire or Taos real estate agent to explain market data and how the numbers relate to your transaction. In addition, he or she may know valuable transaction specifics that can strengthen your position, like whether or not the sellers need to move quickly.

4. Problem solve for all parties

Traditionally, negotiations were a twoway power struggle between buyer and seller. Now, buyers have to consider banks, appraisers, and sometimes even property associations that all have their own guidelines and needs that impact the terms of the deal. It's more important than ever to approach your negotiation as an exercise in problem solving with the aim of meeting the needs of as many parties as possible.

5. Bond with your bank

Too often transactions fall through at financing. Work in advance to make sure your deal doesn't die at closing. For buyers this means working with your agent and mortgage broker to secure back-up financing in case things go awry with your first loan.

6. Manage your own mindset

Remember, when negotiating, the least emotional parties usually have the most power. The more attached you are to a particular home, price point, or set of terms, the more likely you are to panic or cave in on important points, like price, unnecessarily. Lean on (and listen to) your agent for objective support throughout the transaction. It's their job to help ensure you're making the best business and life decision.

7. Learn (and accept) the "negotiables"

To manage stamina during the negotiation, find out early what is and isn't within each party's control. Your Angel Fire or Taos real estate agent can help you stay clear on this and avoid the emotional exhaustion that results from trying to haggle in areas that aren't really negotiable(e.g., the bank's bottom line, cosmetic repairs on most foreclosures, etc.).

8. Minimize time pressures.

When buying or selling a home, moving deadlines can cost you thousands of dollars and cause you to make needless compromises because you're in a rush. When buying or selling, here are a few ways to buy yourself time: • Plan and search early when possible, • Locate temporary rentals, and • Develop a plan-B for closing day in case you encounter last-minute hurdles.

9. Act quickly - not impulsively

When you find 'your' place, make an offer. When you get a counteroffer or response, respond to it. In real estate, time is always of the essence, and prolonged hesitation often results in lost opportunities. There's nothing wrong with sleeping on a decision overnight, if the 'right' move is unclear. But keep in mind, there are competing buyers and changing interest rates lurking, which can change the whole bargaining dynamic at any minute.

While home prices are nowhere near their peak of 6 or 7 years ago, the nationwide data is clear: the housing market this summer has been hotter than at any time since the recession:

The Census Bureau just revealed that new home starts rose 6.9% in June to their highest level in four years - up 23.6% from a year earlier. In April, home prices rose for the first time in seven months, according to the S&P/Case-Shiller home price index. The number of home sales pending rose 9.5 percent year-over-year from June 2011 to June 2012, as reported by the National Association of Realtors.

Given this rapid turn of the market, what's a buyer to do? Maybe take a new approach to prepping for the hot market house hunt. To that effect, I submit that savvy buyers will find more pitfall-preventing power in learning what not to do. Inspired by the last time we had a market heated up by short times on market, low inventory and multiple offers, here are five hot market mistakes home buyers should avoid making:

1. Acting out of desperation. Deep inhale - aaaaaand exhale. It's extremely easy to get caught up in the lightning-fast pace at which the great homes come on and off your local market, growing panicked and even desperate - especially when you see 'just-right' homes go from 'New' to 'Pending' status before you can even get an appointment to see them!

But know this: desperation has no place in a home buying transaction. Panic does nothing but cause people to make impulsive and otherwise unwise decisions, ranging from talking themselves into a home that isn't quite what they really want, to paying way more than they can truly afford to spend (see #s 4 and 5, below). If you're in the market for a home, and your local market is so hot it's causing you to feel freaked-out, panicked or overwhelmed, remind yourself that:

There are probably hundreds of homes in your neck of the woods that will meet your needs. When one goes off the market, another is on it's way on. There is no 'perfect' home. If you didn't get that one that seems like 'the one,' then, by definition, it's not 'the one.' Every home you see or make an offer on, and don't get, equips you with a better understanding of the market, putting you in a better position to get the home that will eventually be yours. In life generally, I believe every experience is either a stunning success, or a successful education. Look at the homes you miss out on as an opportunity to get a successful education about the market.

Desperate is bad. Urgent, however, is good. If you know, for example, that single family, 3+ bedroom homes, near downtown under $400,000 move very, very quickly, then act on that knowledge:

Ask your agent to notify you as soon as they hear of homes coming on the market that meet your needs - even before they are on the MLS, if possible. Give your contact information to the listing agents at Open Houses similar to what you're looking for and ask them to drop you a note if they get similar listings. As soon as you see a new listing that seems like it might work for you, go see it - don't wait for the weekend. And if you see a home and really like it, make an offer without further ado.

2. Hesitating. What's worse than seeing great properties come and go before you can get out to see them? Seeing them go into contract after you view them, but before you make your own offer. When the market is hot, often buyers who have been sitting on the fence or simply window-shopping for ages will stumble into a great Open House and decide that it's time to make an offer, only to realize that their loan approval has expired and it will take a day or two to get a new one. At the other end of the spectrum, buyers who have just started house hunting can come across a home they love, but drag their feet in making an offer because (a) they're used to a slower-paced market, so don't recognize the urgency and (b) they aren't 100 percent sure something better won't be coming right along.

On a hot real estate market, hesitation can be costly. You can end up in a multiple offer situation where you would have been the only offer a few days prior, or can even end up losing out on a property entirely because another, more decisive buyer swoops the place right out from under your nose.

Morals of the story: Make sure you maintain a current loan approval in place at all times - in fact, I say you shouldn't be out house hunting if you don't have a current loan approval. And, for those new to the house hunt, go Open House hunting even when you aren't completely in love with the listings you're seeing online. Once you've seen a good number of homes, you'll have more material against which to compare every other home you see, making you less likely to dither before making an offer when you do find a good one.

3. Ignoring the market entirely. I'm not an advocate of making your decisions about whether and when to buy or sell based on what's happening in the market. Rather, I recommend making your real estate decisions based on what's happening (and what you forecast and envision will be happening in the next 5-10 years) in your family, your career and your life.

That said, when it comes time to execute your decision to buy, it's foolhardy not to take market dynamics into account. I've seen many a buyer over the years decide to stick their heads in the sand and their ears in their fingers, tuning out all of the market 'noise' as though it doesn't apply to them. Unfortunately, in a hot market, this usually results in them getting beat out for 5 or 10 different houses, then having the emotional kneejerk reaction of throwing every single dollar they have at the next house they fall in love with - whether it's the right house or not, and whether they can truly afford it or not.

You don't want to fall under the panic-inducing spell of the market, but neither do you want to ignore it. Rather, ask your local agent to help you pay attention to neighborhood-specific information, like:

which types of properties move quickly, how many days they generally stay on the market, whether multiple offers are a reality you need to face, and how much over-asking homes like the one you want are selling for.

Then, use this information to make strategic decisions about your home buying process, covering everything from which properties and areas you'll focus on, how quickly you'll need to get out to see listings and - most importantly - what price range you should focus your search on. If you know homes are selling for over-asking, engineer your search price range to be low enough that you can be successful, rather than exclusively looking at properties priced at the top of the range you can afford.

4. Financial fogginess. Don't run the numbers in your head. Don't ballpark your income, the big bills and such on a notepad, stick your finger in the wind, and decide you can afford X number of thousands of dollars a month for a home. Home buying is the big leagues, financially speaking, so you need to be sparkling, crystal clear on precisely what you can afford. This universal truth of home buying is especially critical in a hot market, where you may be faced with the need to make decisions about whether to increase your price range or your offer price on relatively short notice.

Either keep an income/expense journal, use an online money app like Mint or Manilla or sit down and do a deep dive into your last few months' checking and other account statements to get a complete picture of what you can afford and to get conscious about what sacrifices might want or need to make. It is not overkill to bring your tax advisor or financial planner into this conversation, so they can help you understand how your tax situation as a home owner may change, freeing up some extra monthly budget room for your mortgage, property taxes, insurance and HOA Dues or Private Mortgage Insurance (PMI), if applicable. Also, make sure you include line items for your savings, retirement investing, gifts, school tuition, travel and recreation - the sorts of things that lenders will not account for when they tell you what their guidelines say you can afford.

5. Overpaying. There are several ways to overpay for a home. You could pay more than the place is worth, which is difficult to do if you are buying the place with a mortgage loan which requires an appraisal. You could pay more than you need to in order to get the property, which sometimes happens to buyers in multiple offer situations, and buyers who have experienced the trauma of losing out on home after home, and who just decide to make a high offer to get closure and secure a place they like. Whether any price meets this second definition of 'overpaying' is difficult to ascertain, as it would require us to know what would have happened in the hypothetical world in which they didn't offer such a high price and so, might not actually have been the successful buyer.

The antidote to both these forms of overpaying is simple: pulling the comparables before you decide what to offer. It only takes a minute, your agent will help you, and it's just not prudent, in 2012, to decide on an offer price without a fresh pull of the sales data on the similar, nearby homes that have recently sold. If your agent includes active and pending sales in their pull of the comparable data set, you may also find out useful information like whether several other competitive properties have just hit the market, or that all of the competition is now pending - things that might also inform your motivation levels or price strategy.

And there is a third, more insidious form of overpaying that haunts hot market buyers as well: paying more than you can truly afford for a home. It's fine, even expected, that if you thought you were buying into a depressed market and instead end up buying in a hot one, you might have experienced some upward 'creep' in what you're willing to spend for a home. But that doesn't excuse letting that creep go beyond what you can truly afford, overextending yourself.

This form of overspending is also more difficult to do now than it was before the housing market recession began, as lender guidelines a much tighter now than then. But it's still possible - especially as lenders don't account for what you should be putting aside for savings, for retirement, for your children's education and other essential monthly budget items that impact what you can truly afford to pay for a home.

The only cure for this form of overspending is for you to both know (see #4, above) and to set in stone what your actual, top-line maximum home purchase price is - even if you are the only one who knows this number, in your own head. Your mortgage professional can help you work backwards from the amount of cash you have to invest in the transaction and the maximum amount you can devote to your housing costs on a monthly basis, to arrive at your maximum home purchase price.

Long story short - if you've been pondering the prospect of buying a home for long, you might feel like you've been sitting in the economy section of an emotional rollercoaster. Prices fell so fast you might have doubted whether buying makes sense at all. Now, with barely a plateau, they're on the upswing - and every other buyer in town seems to be dropping offers on the choice homes before you can even get out to see them. Use these tools to avoid repeating the mistakes of the last generation of homeowners.

Trulia.com

Taos real estate is repleat with authentic old adobe homes loaded with charm and character. Then there are the brand new state of the art homes and everything in between. The decision whether to buy an older home or a newer one can pose a mixed bag of pros and cons. Some buyers have a strong inclination to an older home's charms or a new home's conveniences. Sometimes your area or your price range will dictate your decision for you, one way or the other.

If you're not a buyer who is completely clear on whether you want to buy an older home or a new-ish one, here are some of the factors to consider, pro and con, as you compare and contrast homes built in different eras:

1. The Charm Factor. Obviously, "older" and "newer" are relative terms. If your area is one where "older" homes are those which were built in the '60s or '70s, you might not find them to be particularly charming. But many buyers do find there to be a particular charm and aesthetic detail in homes built in the early part of the last century - from the 1900's to the 1940's, say - that is uber-attractive and decidedly craveable. (To be fair, in some areas, the Eichlers and other modern styles of the mid-century are seen as having similar cachet as much older homes, especially when compared to 80s, 90s and later construction.)

The classic styles and eras tend to have strong appeal to large groups of home buyers, as do the maturity of the trees and other details.

Buyers who are committed to having this "Charm Factor" in their lives and their homes are not likely to find this particular feel in newer neighborhoods, though many builders and subdivisions do make an effort to replicate the best qualities of older homes and neighborhoods with reproduction features.

2. House history. Newer homes have little or no history - anyone who has ever bought a brand new home can attest to the relatively blank slate of disclosures they receive from the builder. A blank slate sounds great, but also means you really don't know about what glitches the property may have, and my experience has been that every home - even brand new ones - have glitches or quirks. The sun might create a funny bleach spot on the floor in one room, or the place might settle over the first few years to have an unexpected slope. A roof on which it has never rained might even turn out to have a design flaw or leak. And the fact that the home hasn't been lived in means that no one can flag these issues - or fix them - for you in advance. (Most newly built homes do have warranties that cover the worst of such 'lemon' home issues.)

Older homes may come with a lovely family history or even just a detailed record of what has and hasn't worked - and what has and hasn't been repaired and replaced over time, with which newer homes can't compete. But they also may come with the tough-to-erase remnants and consequences of historical occupants and their activities on the property, from lead paint remains in the soil that prohibit you from growing vegetables in the ground to the very unfortunate (and extremely toxic) consequences of illegal activities like the manufacture of methamphetamine.

3. Conveniences. One would think that newer homes would almost always have conveniences that older homes lack, especially in the realm of newer appliances and mechanical systems like plumbing, air conditioners, heating and even insulation. But there can critical periods at issue, here - while very new homes are likely to have the latest of everything, homes built 20, 30 even 40 years ago can be more out of date than homes built 70, 80 or 90 years ago - especially in areas where very old homes are very desirable, as the latter might be more likely to have been updated by a recent owner.

However, as you look at and compare older homes with newer ones, also give thought to the less easily updated differences across the construction eras, like:

Layout: Older homes are less likely to have wide open floor plans, sky-high ceilings and the massive windows that allow in the natural light that more contemporary styles let in. Size: Some eras of older construction simply didn't focus on building homes beyond a basic 1,500 or 2,000 square feet - in areas where those homes predominate, it might be difficult to find a home much larger than that, if that's what your household requires. Room Size: Older homes tended to be designed around smaller rooms - and especially smaller bedrooms and fewer, smaller closets and storage spaces - than newer homes. Accessibility: Depending on the era, older homes might not have the space and layout suitable for homeowners who are looking to 'age in place,' or care for an older relative; early-century eras of construction may include stairways, hallways and doorways too narrow for wheelchairs and walkers to easily fit through.

4. Maintenance. Unless you're able to find that best-of-both-worlds older home with recent upgrades, with an older home you should take extra care to understand the age and condition of all the home's mechanical and electrical systems, and to get a good sense for the cost of any upgrades you'll want to do - before you finalize the purchase. Also, be aware that some of the ornate classic home styles may have intricate woodwork, like the so-called gingerbread adorning many a Victorian home, that is both prone to damage (from water or termites) and costly or impossible to replace.

Flip side: new homes *can* pose a lower maintenance cost, but the fact is that new home buyers still face the 'potential lemon' problem of being the first to discover any glitches or design/construction flaws.

Ultimately, there's no one right answer to the older/newer home decision. It's really a matter of fit.

By John Waggoner, USA Today

It's pretty easy to see both sides of an investment argument. But it's hard to argue against buying a house now, assuming you can get a loan.

The housing cycle is a long one, in part because buying a house moves at a glacial pace, at least compared with the time it takes to buy a stock or bond. If you're not pre-approved for a mortgage, you have to submit to a credit check, which, these days, is only slightly less intrusive than a CIA background check. You have to get the home inspected. You have to figure out the various fees your bank charges, including the one marked "Just because we can."

STORY: Mortgage rates top 3.5% for a second week COLUMN: Timber could be growth industry if housing soars How long is a housing cycle? Pretty long. A relatively modest housing bubble, by today's standards, occurred in Boston in the late 1980s. Average home prices, adjusted for inflation, hit $310,000 in October 1987. Home prices didn't hit that level again until May of 2000. Someone who bought at the high had a long wait to get even -- particularly in light of the standard broker's commission of 6%.

Home prices bottomed, however, in March 1993 -- roughly six years after the top. History doesn't repeat itself precisely, but it's interesting to note that the top of the last housing bubble was six years ago, in 2006.

Why be bullish on housing?

•Prices. You can always buy low and watch prices go lower. But by many measures, home prices are still cheap. The median single-family home price -- half higher, half lower -- hit its nadir in January, dropping to $154,600, the lowest since October 2001, according to the National Association of Realtors. That's down from a high of $230,900 in July 2006.

Existing-home prices rose in June to a median $190,100, up 8% from June 2011. Those are still 2003 levels.

•Supply. The good news is that the enormous supply on the market is shrinking. It takes a wearisome amount of time for supply to shrink, in part because there are people who have been wanting to sell their homes for many years, but haven't been able to get the price they want. As prices rise, more homes come on the market.

Nevertheless, Ned Davis Research, a respected institutional research firm, estimates that excess supply of houses on the market should be eliminated by the end of 2013. When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally.

•Mortgage rates. The average 30-year fixed-rate mortgage rate is 3.59%, according to mortgage giant Freddie Mac. That's above the all-time low of 3.49% the week of July 26, but close enough. It's conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation.

Assuming you financed 80% of the median single-family home, or $152,080, your mortgage payment would be about $691, excluding taxes and other irritations. About $5,589 of your first year's payments would be tax-deductible mortgage interest.

Thanks mainly to low home prices and interest rates, the NAR's housing affordability index rose to its highest level on record. (The higher the index, the more affordable the average home. The index also takes into account average family income, which has been falling since 2008.)

What could go wrong? All sorts of things. You may not be able get a loan. Bankers are insisting on checking things that seemed far too troublesome during the housing bubble, like whether you have a decent credit rating, a down payment, or a job.

The other problem is that houses are leveraged investments -- that is, you borrow money to buy them. Let's consider the example above, where someone buys a $190,100 house and finances $152,080. Your investment is $38,020. Let's say that the worst happens: home prices fall, and you have to sell the house for $175,000.

Unfortunately, the bank won't split the loss with you. You'll get back $22,920 from the sale, and wave goodbye to $15,100 of your down payment. That's a 40% loss, even though your house has fallen 8% in value.

There are other risks with homeownership, ranging from termites to ghosts in the hall closet. But if you're planning to live in your home for a long time, you have the money, and you can get financing, it's a fine time to buy.

John Waggoner is a personal finance columnist for USA TODAY.

1. Property tax increases. So, you got a 30-year-fixed home loan, and you set up an impound account with your bank so as not to have to worry about paying big lump sums for your property taxes twice a year. Fact is, the day could still come where you get a note from the bank advising you that your payment is going to go up - because your property taxes have increased! Property taxes are based on your home's value, so as the value of your home rises, your property taxes will likely also go up over time.

Talk with your Taos real estate mortgage professional about how homes are reassessed for tax purposes in your area: how often they are reassessed, when, and whether there are any limits on how much your taxes can go up in a given year. Understanding how tax increases work and what their limits are allows you to predict and project your worst case scenarios in terms of extra costs, years in advance. It also helps to know that in a down market, your homes value - and property taxes - can also decrease, and to know that your property taxes are deductible on your income tax return. So, if you do have increases, you'll have a corresponding tax break.

2. Utilities. Garbage, gas, water - these all cost money, something that's easy to forget when your landlord is covering them. But when you own a home, you also own these bills. During the buying process, it can be very difficult to predict exactly how much these bills will run. Your best bet is to ask the seller if they will kindly provide you with copies or at least the amounts of their recent utility bills, so that you can have some sort of basis in reality for your own budget and spending plan. Also, it's not a terrible idea, once you own the place, to go through and do an energy audit to find places where you can stop leaks of heat, cool air and water, and otherwise put a cap on those utility bills.

3. Unexpected repairs. Obviously, the reason we get disclosures and inspections and such is to minimize the likelihood of buying a lemon of a home - and minimize the spectre of unexpected repair costs. Your first line of defense at managing these costs is the one-two punch you have to execute during escrow: (1) reading your disclosures and inspection reports and getting repair bids for any issues that arise therein, and (2) obtaining a home warranty to cover things that arise later on.

Most people get #2 right, but don't pay as much attention to disclosure and inspection report follow-up as they should. The other common fail is that people allow their home warranty to expire after a year, rather than paying the annual renewal fee (new home owners: expect to see this in the mail 10 or 11 months after closing). Don't fall into either of these pitfalls: if you own a home long enough, chances are good that you'll eventually have some unexpected need for a repair come up, whether it's a plumbing snafu or a roof leak. Keep a handle on your home repair bills by keeping a home warranty in place, and keeping your home's systems well maintained (see #6 on this list).

Beyond that, stay smart about your financial planning by diligently saving so you have funds to tap into in an emergency, and by making informed decisions about your insurance policies (e.g., exploring flood or earthquake insurance if you live in an area where these are common hazards). Ask your home owners insurance provider to brief you on what is and isn't covered, to be sure you're not unduly exposed to repair costs if bad things happen.

4. HOA dues increases. If you choose to buy a home in a Home Owner's Association (HOA), you'll be given a number of disclosures about what the HOA dues are during escrow, so the dues themselves should be no surprise. What can come as a surprise, though, is the fact that dues can go up over time - sometimes in relatively shorter order. I'd encourage you not to skim lightly over what may seem like the least important of the HOA documents you'll receive: the newsletters and board meeting minutes. You might expect them to be full of minutae like stories about Mrs. Cranston's rogue tabby cat - and indeed you might find that in there - but you're also likely to find discussions of proposed HOA dues increases far in advance of them being enacted, as well as discussions about major building or complex repairs and upgrades that need to happen and how they will be paid for.

The other thing you can and should do to avoid getting blindsided by an increase in your HOA dues is to simply be a present and active participant in your HOA, including attending board meetings, sitting on the board or simply building relationships with your neighbors. The board makes many decisions which impact the HOA dues and assessments that will be levied on all members.

Associations nationwide have been plagued by high rates of dues default since the start of the recession, and when one or five or eight members default repeatedly, everyone else's dues are likely to be raised to cover the shortage. Having your neighbor over for coffee on occasion or watering their plants while they travel boosts your chances of keeping a handle on your HOA dues and are just nice neighborly things to do - if they help keep a lid on your costs of homeownership, too? All the better.

5. Special assessments. There are two types of special assessments for homeowners. The first are assessments imposed by the City, County or State on top of your property taxes, to pay for things like street lighting, parks, first responder agencies and to help the schools out - these are often imposed after a city or district-wide vote, which helps you predict for them. If you're planning to buy a home, often the seller's tax bill - which you can get from them or even, in most areas, on the county tax assessor's website - will list the existing special assessments separately from the property taxes, so you can know how to budget for them.

The second type are assessments imposed on HOA members when the building or complex needs a major repair that the HOA has insufficient funds saved up for, or a large, unexpected repair needs to be made. For example, I know of a number of California HOAs that imposed special assessments to replace the buildings' roofs when many insurance companies stopped covering buildings with wood shake roofs.

Again, staying involved with your HOA and board helps keep you apprised and avoid being completely shocked by special assessments, but it also behooves buyers of homes in HOAs to look carefully over the HOA financials, including their reserve account statements and their plans for maintaining the buildings over the years. Many HOAs do a great job of planning to replace roofs, windows, private roads and walkways years in advance - and saving up for these projects - to minimize the chances of having to make surprise special assessments. And others, well, don't.

6. Basic maintenance. When I bought my current home I gutted it to the studs and remodeled it completely, including all new appliances and systems,so I haven't had to do many fixes on broken things - knock wood. Yet and still, every year, Spring rolls around and I end up spending a nice chunk of change just keeping the place in tip top shape, from having the gutters and carpets cleaned, to having the windows and exterior power washed, to having my backyard (known affectionately by my friends as Jurassic Park) weeded and the paint touched up inside and out. Being aggressive about maintaining your home on an ongoing basis allows you to avoid bigger, scary repair bills later on - but it does cost.

Here are seven questions to ask yourself as part of that decision-making process, in order to avoid a DIY disaster:

1. What's the project? Define the project, in writing, as completely as possible. This will equip you from the very start to outsource some or all of a project that is beyond your skill set, rather than running to a contractor in a panic in the middle of a project (when you'd certainly be charged a panic premium price). Depending on your aptitude level and the time you have, what seems at first glance to be a highly DIY-able room refresh with paint and new wood floors can snowball beyond the realm of reasonable DIY-dom if you add in a lighting or plumbing project.

To do this, sit with your project, your magazines or your Pinboards for a few days, weeks or even months, keeping a running list of the things you want included in your project as you live in your house and your desired post-project lifestyle changes come to mind.

2. Does it require permits? Generally speaking, electrical, plumbing, major renovations, erecting new walls and structures and adding square footage to your Taos real estate are all projects highly likely to require permits. Hint: if you use the word "gut" when describing what you're planning to your friends and relatives, chances are good you'll need a permit. If you're not sure, a quick website visit or phone call to your City's Building Services or Building Permits Division should clear things up.

Building code requirements can be exceedingly arcane, and the process of applying for and obtaining permits if you're not well versed in them can be tedious, stressful and time-consuming. It can also be full of unsuspected pitfalls, like doing one home improvement that triggers a City requirement to add a slew of new outlets or a new sewer line.

Call the city and/or talk to a couple of licensed contractors as soon as you've fully defined your project - but before you've started any work - and get a good sense for whether it will require permits to stay in good graces with the City.

Cities are required to grant permits to homeowners, but the more complicated the permitting process gets for a given project, the more sensible it becomes to have a professional contractor or at least a professional permit expediter involved to avoid running afoul of the city, incurring penalties for unpermitted work and to maximize your ability to get an increased resale value for your home as a result of the upgrades.

3. Are there health and safety issues? I'm a big believer that high decks (i.e., decks, balconies and similar structures that are tall enough that a collapse would cause injuries to those standing on it), additions and gas/electrical work are things home owners should rarely do on their own. Now, I'm not saying you can't install track lights or change a light switch to a dimmer. Rather, I'm cautioning that that if you're doing work in these categories beyond that level, calling a contractor can avoid a disastrous outcome.

4. What are the relative hard costs? "ANYONE can paint a room," I've heard time and time again. I've done it, so I know this to be true. But I also know that from the first time I got actual paint bids from my trusty neighborhood handyman, I have never painted a room since! In my humble opinion, the money I've spent was well worth the time and other resources I saved (see #5, below), and I'm certain they've done a better job than I could or would have. Just because you can do a project DIY, doesn't mean that it's necessarily the smart thing to do. It also doesn't mean that the hard, financial costs of doing it yourself are necessarily much cheaper than hiring a professional.

Don't automatically assume that doing a job yourself is the cheap route to go, or that it will save you scads of cash. Until you've actually gotten 3 bids from reputable contractors or vendors, based on the full scope of the job, and have compared that with the cash you'd spend to DIY, you cannot know for certain which is the less expensive way to go. They might qualify for bulk discounts on materials that you can't get, and you might have to rent a truck, equipment or tools that they already own. In any event, calling contractors out can be educational in terms of understanding every element of the job and troubleshooting things you might not otherwise have anticipated.

So, unless you're uber-handy and just love to do projects, or know for certain the project will be uber-cheap for you to do, I'd strongly urge you to get a few pros to come out and give you real bids for what it would cost (including supplies, labor, any subcontracting, permits - soup-to-nuts), and compare that to your own DIY cost estimate. (Hint: I'd also encourage you to add a little buffer on the top of all the estimates - theirs and yours - for unforeseen costs that might arise.)

5. What are the relative soft costs? Cash is just the beginning of the resources required to get a home improvement project done. They also take time - which some might see as opportunity costs. Ask yourself the question: what could I do with the time I'll have to spend on this project?

There are also the energetic and emotional resources involved. Some people simply have sharp mechanical and logistical aptitudes, have the spare time and love to use it bettering their homes and have infinite patience for figuring out workarounds when the project doesn't go as planned. And then there are people like me! So, if you're like me, you should definitely account for that when you're deciding whether to do-it-yourself or whether to hire your home improvement projects out.

6. Is it really DIY-able? Remember, the 'Y' in DIY stands for YOURself. The decision whether to DIY or call a contractor in for a job is not based on whether your Dad, your neighbor down the street or Bob Vila made a similar project look simple. Rather, it needs to be made based on your own, personal:

skill and experience level aptitude for whatever sort of work you're completing patience level frustrate-ability spare time available for the job, etc.

If you're not excited about the prospect of doing the project, and you can afford to have someone else do it, don't let the wanna-be handypeople in your life talk you into biting off more than you can chew.

7. What could go wrong? If your project is uber-simple, like replacing a toilet or painting a wall, there are a limited number of worst-case scenarios which might be annoying and inconvenient, but are far from the end of the world. The kitty-cat wallpaper might be harder to get off than you thought - that sort of thing. But as the project grows larger in scope or more complex, the more potentially disastrous your worst-case scenarios are - and the more costly calling someone in to fix a DIY-gone-wrong will be.

Generally speaking, I'm not one to advocate worst-case scenario thinking. But when it comes to home improvement projects, the many moving pieces and relative inexperience of the average home owner suggest that an abundance of caution is just plain old smart. If your project's DIY worst-case scenarios conjure up visions of bodily harm to your family members, buckets catching the rain or virtually anything caving in think long and hard before you take it on yourself, versus calling in a pro.

1. Any remodeling project will add value to your home.

While many remodeling projects will add value to a home, some can be seen as a negative by future buyers. For instance, combining two smaller bedrooms to create one larger bedroom may better fit one homeowner's lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.

2. Buying the highest-quality materials attracts more buyers to your Taos real estate.

Installing high-end materials may seem like a wise decision, but it can backfire. For instance, using the most expensive tile in a bathroom may create an impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.

3. Adding square footage always adds value.

A better way to think about this statement is to insert the word useable into the sentence. Finished attics and basements – even if considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.

4. Colors and textures – safe and simple is better.

Keeping a home "vanilla" so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don't have the ability to visualize the home differently. Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.

5. Inside improvements are better than outside improvements.

Not necessarily. If a home's exterior has been neglected or doesn't offer a good curb appeal, a buyer might stop there – and then the seller's efforts on on the inside may not net them any more dollars. To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.

6. Adding a bedroom is better than adding a bathroom.

It depends on the starting point. If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise choice since most buyers are more attracted to three-bedroom homes. On the other hand, if the home already has three bedrooms and only one bath, the sellers's next investment should probably be in a new bathroom.

7. Paint hides a multitude of sins.

Dry rot? Fungus damage? Mold problems? Carpenter ants? Termite issues? Nothing a can of paint can't fix, right? Wrong! Not only does this practice violate disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.

8. Converting a garage to living space is a great trade-off.

Nope. A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and storage space of equal size.

9. Sellers can save money by doing improvements themselves.

For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they have to have the work redone by a professional. Another consideration is local and state laws regarding remodeling work: In many states if a buyer has purchased a home to remodel and resell, they must either hold a contractor's license or hire a contractor to do the work for them.

10. Pools add value to your Taos real estate.

This is only true in areas where pools are must-have amenities. In most areas of the country, pools have more limited appeal – and the idea of maintaining a pool for ten months out of the year when it can't be enjoyed won't appeal to most buyers.

Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects. But don't stop there. To keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.

If you're struggling with the mind-spinning condundrum of whether any given moment is the 'right' time to buy or sell your Taos real estate, look for some or all of these signs:

Sign #1. It's the time of your life. If you're buying the home you plan to live in (versus an investment property), don't even bother trying to align your buy or sell with market peaks and troughs. It's a better practice to time your transaction in accordance with your life, your vision and your finances. Then, take the market more deeply into account when you're executing your decision to buy or sell, like deciding how much to offer, when to lock your interest rate, setting a list price, deciding the precise month and week to list it, etc..

So, if you're just at a point in your life where you feel ready for or excited about stepping up or down the responsibilities, stability and upsides of home ownership - or you feel that your vision for the next phase of your life involves owning a home, freedom from home ownership, moving to a new town or owning a different home than the one you have, these are all good reasons to consider buying or selling (assuming you see some of the other 'signs' listed here).

For many, these 'times of your life' align with life transitions like marriage, divorce, having kids (or other relatives) move in or out, relocating for work, or simply just maturing to the place where you feel 'grown up' enough to take on the obligations of owning a home.

If you feel like 'it's time,' it just might be.

And in the same vein, it's also a sign that you should explore buying or selling if you simply really want or need to - no matter what others say, no matter what's going on in the market, again, assuming the other items on this list are also in place.

Sign #2. You need the tax write-off or other advantages. The one person whose urgings to buy a home you should at least take into account is - no, not your Mother: your accountant! There's no hard and fast rule of thumb for how much income you have to earn before you'd be crazy not to own a home and take advantage of the mortgage interest and property tax deductions for homeowners. There are too many inputs into any given person's tax situation for such a black-and-white rule.

But if you feel like you are paying too much in income taxes every year, you should be aware that these are two of the meatiest deductions the average wage-earner (i.e., non-self-employed individual) can take. If you're feeling crunched by taxes, talk with a local CPA or other tax professional and get some help projecting how various home purchase price points may alleviate some or all of your tax burden.

Tax considerations are less of a pressing motivator for home sellers, for the most part (again, we're talking about personal residences, and not investment properties, here). For example, the fact that you are approaching the capital gains tax exemption limit (i.e., $250,000 of profit on your home for single people, $500,000 for married couples) is not a good reason to sell a home you otherwise love and could be happy with for years to come.

On the other hand, if you're a seller considering a short sale, be aware that there is a major massive tax exemption currently in place under which the IRS will not charge you the normal income tax on your forgiven mortgage debt - so long as your short sale closes by the end of this year. It's likely that Congress will pass an extension to the Mortgage Debt Forgiveness Relief Act, but that hasn't happened yet. Given the lengthy timetable of the average short sale, if you need to close yours by the end of this year, your home should be on the market now.

Sign #3. Your financials and the market are in alignment. Buying a home before your financials are truly ready for it is a grave, grave mistake - the same mistake that was responsible for so much of the mortgage and foreclosure mayhem we've seen over the last few years. Back then, the norm was to buy as soon as you could possibly qualify, no matter what it took (which wasn't much). But that created a whole generation of home owners who had (a) very shaky financial foundations and (b) bad mortgages, so that a layoff or a mortgage adjustment was all it took to devastate their home owning dreams.

Now, I'm not suggesting that you should wait until you can pay cash for your home, or that everyone should make a 20% down payment and make sure they still have oodles of cash in the bank. But here are some signs you might be financially mature enough for home ownership:

Your income is relatively secure (i.e., you didn't just start a new business or leave a job to find yourself). You have money in the bank (enough that you'll still have a cushion once you've paid out for down payment and closing costs). Your consumer debt is well under control (or non-existent). You have good financial habits around spending and saving in place. Also, it's essential that your financial resources map to current home values in the geographical area you're looking to buy in, so you can actually afford to buy the sort of home you'll need in order to stay put for 5-10 years. Best practice is for you and your co-buyers, if any, to sit down, run your monthly budget numbers, assess your savings and decide how much cash you have to close the deal, as well as how much you can afford to allocate to housing every month, then to take that information to your team of real estate and mortgage pros.

You tell them what you can afford - not the other way around.

Ultimately, talking with a local real estate agent, mortgage broker (and maybe even an accountant or financial planner) is the only way to get a clear, detailed picture of what your income and expenses will be after you buy the sort of home in which you're interested – including the tax implications of ownership. Often, people who are right on the cusp of feeling too pinched to afford a home on a monthly basis are able to change their monthly payroll income tax withholdings and bring home a little more cash every month after they calculate the home ownership-related tax advantages they stand to realize.

If you're a home owner considering selling, the same principles apply. If you have been holding onto a mortgage that is not sustainable throughout the course of the recession, going into more debt to pay the bills or just struggling to make ends meet, the uptick in buyer demand and home values this summer might present a great opportunity to sell or refinance and get back on solid financial ground, even if it means you have to rent for a while or downsize into your next home.

Sign #4. Your space needs are predictable for at least 5-10 years. During the recent recession, I saw at least 4 responsible, professional men I know personally take huge real estate losses, because they: a) bought lofts with concrete floors or cable-suspended staircases b) fell in love and got married, and c) had kids (who, by the by, aren't known for being loft-appropriate).

- all within a few years from when they bought their bachelor pads! Unfortunately, these turned out to be the same few years in which the market (and their HOAs) tanked. Forced to move and unable to sell at a profit – or even a break-even! – and facing new financial obligations to support their families, these men were forced into short sale situations - and worse.

None of these guys are idiots - they just bought at a time when the market was ascending and figured they'd sell at a profit if they needed to sell in the short term. If asked, most of them would probably have guessed that they'd be likely to start a family in the next decade. The issue was that none expected that they'd be unable to unload their homes, quickly, for at least what they paid in the couple of years after they bought them.

Post-recession, it behooves every smart buyer to make their decisions expecting that they won't be able to break even or profit for at least 5 or 10 years following the buy. This conservative approach will help reduce the risk of avoidable losses.

So plan out how much and what sort of space you'll need 5 or 10 years from now, and aim to buy that home. Make sure to account for future space needs like a single story layout (if a member of your household might have trouble getting around in that time frame) or an in-law unit (if you anticipate having an adult child or a parent move in during that time frame).

And if you can't project your space needs out that far in advance, you may want to wait to buy until you can, so that a market downturn won't find you stuck with a bizarrely inappropriate home for your lifestyle.

Sellers-in-waiting should heed precisely the same advice, but in the opposite direction. If and when your home stops meeting your space and living needs, as it did for the gentlemen I mentioned above, that is a serious and valid motivator for at least exploring the prospect of selling. With rates low, buyer demand high and home prices still relatively low, right now could be a good opportunity to try to sell for more than your home has been worth in a while, while still buying for a great price. Just make sure the place you buy will work for you, space-wise, for years to come.

Sign #5. Your location will be predictable for at least 5-10 years. Are you ready to stay put for a while, geographically speaking? If not, home ownership is probably not the best move to make, unless you're comfortable with the idea of being a landlord when you move and you won't need to use the cash you put into your home to make a move. This is why many young adults who do decide to buy homes prefer to buy in or around bustling cities with thriving job centers, rather than buying a home in a one-company or one industry town. It helps to know that if your employer goes under or your industry has a downturn, there are other opportunities for making a living near your home.

The flip side applies for sellers: if you are concerned about the future job, educational or other important prospects for yourself or your family members in your town, that's certainly a valid reason to think about making a move. Just make sure you don't wait until everyone else makes the same move. That's a surefire way to do the opposite of every seller's goal: selling at the bottom.