Home Buying in Santa Fe>Question Details

Bb, Other/Just Looking in Santa Fe, NM

i am thinking of buying a home that I recently looked at in Santa Fe. Should I have an appraisal done?

Asked by Bb, Santa Fe, NM Wed Apr 4, 2012

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8
Simple answer- ALWAYS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Drew Myers
Barker Realty
0 votes Thank Flag Link Mon Jul 9, 2012
We always advise our cash buyers to make any offer contingent on an appraisal as well as inspection, review of title documents, survey etc. If you are seeking financing, it will be a requirement of your lender as well. I do not know if you are being represented by a Realtor or agent, if so, I would recommend they provide you with recent (90 day) comparable sales. If you need more information about the home buying process, do not hesitate to call/text me.
0 votes Thank Flag Link Mon Apr 30, 2012
Hi, that's a great question. In a standard purchase agreement you'll have the option to have an appraisal done and if you're obtaining financing the lender will require it. It's a good to have an independent third party opinion of price to ensure you're paying fair market value.
0 votes Thank Flag Link Wed Apr 4, 2012
Good Morning,

You can have an appraisal done. An appraisal can cost about $450. The fee is non-refundable, so you may first wish to have a real estate agent perform a market valuation on the home to give you an idea of what similar homes have been selling for in the past six months.

This will tell you if the list price of the home is high, low or at market value. There should be no cost to you for this market valuation. If an agent charges, find a new agent.

As for the appraisal, you can negotiate it into the contract as well as ask for the Seller to pay this in addition to other closing costs. This way, if something comes up during the home inspection or your financing unexpectedly falls through, you're not stuck paying for an appraisal that the Seller can now use for their next Buyer.

I wish you the best on the purchase of your new home.

Leigh-Jo
Syan Real Estate
Call.Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Wed Apr 4, 2012
Your Realtor should be showing you the comps so you can make an educated and fair offer. Then, once you go to contract, if you are financing the property, the bank will require an appraisal. If you're making a cash offer then no appraisal is required - but it may help you make an even more educated offer, or renegotiation of the original offer (if your contract price is higher than the appraised value), and, if nothing else, help you sleep better at night.....
0 votes Thank Flag Link Wed Apr 4, 2012
If you haved looked at many homes with a quality broker, it should be apparent what you think the value is and are willing to pay. With your broker's expertise, you should negotiate the best possible final price. If you will be financing the home, an appraisal will be required by the lender to reassure them they are loaning against something of adequate value. If you do not trust your agent or their expertise, you might consider an appraisal, but first I would consider a new agent. Appraisals are now running almost $500 and they are not an exact science. True market value of anything, including a house, is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper/adequate marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion/duress. In short, a willing buyer determines what s/he is willing to pay for the property and that is in fact the true value. An appraiser can not do this, because there is no consideration for things like style or emotional appeal to their valuation. However, the bank does not want to loan on a property when "emotional appeal" might have swayed someone into paying too much. They need to make sure their investment is safe, in case they need to recover it. Buyers should not be looking for appraisers to protect them, although they are trying to protect the bank. Buyers should rely on expert real estate brokers who can show them with data and in person (by visiting enough homes) what values really are. If you have further questions, feel free to send them to me anytime. Best of luck!
0 votes Thank Flag Link Wed Apr 4, 2012
Hi Bb,

Instead of forking over your money right now for an appraisal, have a real estate agent pull comps for you first to get an idea of what the home is worth.

If you're financing the purchase there is no reason for you to order an appraisal until after you're under contract at which point the appraisal will be ordered by your lender.
0 votes Thank Flag Link Wed Apr 4, 2012
Unless you are buying with cash the bank or lender will require an appraisal that will have to be at or more than the contracted amount of they will not make the loan. If you are buying with cash, yes, get one. The $350 is good protection to make sure the price is fair.
0 votes Thank Flag Link Wed Apr 4, 2012
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