Home appraisals and house inspections. Many first time Albuquerque home buyers aren’t sure of the difference, and don’t know if either are necessary or required. But it’s an important distinction to make if you plan to buy a home for the first time in Albuquerque. Here’s a breakdown of what to expect with each.
Home Appraisals
An appraisal is the value of a house based on factors including comps. A comp, or comparable homes, is the value of Albuquerque homes in the area that have recently sold. An appraiser looks at those values, and other things like amenities in the house, and determines the market value of the home you want to buy. The appraisal helps determine how much money your lender will give you to buy the house. A seller will hope for a high appraisal. So as a buyer you want a lower value. Sometimes this amount differs from appraiser to appraiser, but it’s usually a close assessment of the area homes and values.
Inspections – Necessary or Optional?
An inspection may not be required, but it’s still a good idea. This includes pest inspections, which will tell you if the home has termites, carpenter ants or other pests, or if it had them in the past. Your decision to buy the home may be based on this assessment. Or you may make a lower offer or have the seller take care of any issues that are discovered.
A home inspection will cover not only the main structure of the home, but also a look at the roof, the heating and cooling system, plumbing and electrical. And with hot summers here in Albuquerque, you want to make sure the AC is in good working order. Since a home inspection is not “exhaustive,” it may not uncover every possible issue. However, home inspections are generally a very important step in buying a home in Albuquerque.
Well and septic inspections are generally paid for by the seller and are most often included in the standard agreement most real estate agents have. This inspection covers the septic system and wells where the home is not tied to city water lines. While some mortgage programs may require specific inspections, they’re not generally a requirement for every mortgage option. However, buying a home without inspections could potentially leave you open for some major issues. Spending a few bucks early in the process could save you thousands down the road.
If you have any questions about home appraisals and inspections, or any part of the home buying process, please feel free to contact us. Our mission is to make buying your first home in Albuquerque an enjoyable process.
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