Real Estate Information Archive

Due diligence is an important term in real estate, as well as in other contexts. It refers to the process of conducting thorough research and gathering information before making a significant purchase. In the case of buying a home in Albuquerque, due diligence involves learning about the neighborhood, school district, property history, proximity to amenities, and the specific terms of the mortgage loan. It is akin to doing your homework before making a decision.

When researching a home, it is crucial to gather information about its current condition. Assuming a home is move-in ready without proper investigation can lead to unexpected repairs or renovations.

During the house buying process, it is common to have a period of due diligence outlined in the contract. This timeframe varies depending on the state and can extend until the closing.

During the due diligence period, it is crucial to thoroughly understand the house and the neighborhood. This allows for any potential surprises to be identified, and if necessary, provides the option to cancel the contract.

Due Diligence During Your Home Search

During your home search, it is crucial to conduct due diligence. This involves taking steps to ensure that you are well-informed throughout the process. Working with a real estate agent who listens to your needs and is knowledgeable is essential. Before making an offer on a home, it is important to gather as much information as possible about the current housing market in your desired location. Your real estate agent can provide valuable insights on current property values, average list prices, and home sale trends. From there, you might start to narrow down neighborhoods.

During the pre-offer due diligence period, it is important to compare mortgage loans and lenders. Additionally, it is crucial to consider the necessary steps to insure the home. Once all necessary preparations have been made, it is time to make a competitive offer.

Due Diligence Before You Close

Before closing on a property, it is important to complete certain steps of due diligence. As a buyer, you should request a home inspection and appraisal to ensure the condition and value of the property. Additionally, it may be necessary to request a land survey review. These steps are crucial in avoiding any unexpected issues or surprises.

You might also want to talk to your real estate agent about a home warranty.

Having contingencies in your contract provides you with the option to back out of the transaction if necessary. It is important to note that sellers typically do not allow buyers to back out after making an offer unless there is a valid reason.

Once the seller accepts your offer and both parties sign the sale contract, the official period for due diligence begins. At this point, you are under contract.

The due diligence period poses a risk for sellers as it prohibits them from showing the home to other potential buyers once they accept an offer. If a buyer decides against purchasing the house at the end of the 30-day period, it goes back on the market. However, the longer a house is on the market, the less desirable it becomes, causing sellers to lose out on potential buyers during that month.

A due diligence fee can be helpful because it incentivizes the seller to accept your offer and take on the risk of removing their home from the market during your due diligence period. While it is not typically required, paying a due diligence fee can improve your deal and increase the chances of it being accepted. If you proceed with the purchase, the fee is credited towards your closing costs.

However, if you decide not to buy the house, the seller keeps the due diligence money as compensation for their lost time. It is important to note that due diligence fees are non-refundable if you cancel the sales contract, but the seller may refund the money if they back out of the sale.

Earnest money is different from due diligence money. It shows the seller that you're acting in good faith and won't breach the contract. If you breach the contract after paying earnest money, the seller keeps the money. However, earnest money can be refunded if you back out of the sale, unless your contract says otherwise.

HOT ALBUQUERQUE LISTING OF THE WEEK

Welcome to the community of La Orilla Contemporary living in a Great location with quick access to Paseo del Norte, I40, Bosque Trails, Restaurants & shopping! Views of Sandia mountains from spacious primary suite's balcony. Pulte luxury townhome, Ocotillo floor plan, open concept, connecting great room, dining room & kitchen. Kitchen offers an expansive island, room for seating 4, Beautiful granite counters, ample cabinets & pantry. Energy efficient appliances. Covered patio for alfresco dining, easy maintenance yard, room for small garden. 3 bedrooms on second level & separate Primary suite with sitting room/flex space, separate spa like bathroom. 2 car garage with finished floors & walls, tankless water heater, enter from the back. Must see 4 years young, easy living, low maintenance!

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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It’s National Home Buyer’s Month and today we’re going to look at the top features buyers are looking for in a home right now. As homeowners look to update or improve their homes, possible for a sale down the road, it’s important to not only look at your current needs, but what will be a selling point to home buyers. It’s what will ‘add value’ to your home at the sale. Below are the Top 10 Features most wanted today:

1. Laundry Room- 87% of today’s buyers put this at the top of their list. Even if you have a small space, a fresh coat of paint, shelves & a hanging unit, along with a folding table can create a lovely area.
2. Exterior Lighting- Maximizing our outdoor living space is a natural extension of our overall square footage, and a beautiful way to incorporate our stunning outdoor landscape. The use of great exterior lighting not only beautifies the area but gives way to greater hours being spent outdoors. PLUS, what a way to accent the area for buyers!!
3. Energy-Star Windows- More and more home buyers are putting the focus on energy savings. Investing in Energy efficient windows is one of the best returns on your investment you can make. Whether YOU plan to live in the home for years to come, or you’re looking to sell, this is a GREAT investment.
4. Patio- Whether you have a small or large yard, home buyers look for a yard with a patio and this is one investment that will not only pay off, but does add that outdoor living space to your home as well. This doesn’t just need to be a cement patio either…have some fun!  Patio’s today come in all shapes, sizes, and elements. They can become a true work of art in your yard.
5. Walk-in Pantry- I don’t know about you, but I think this is every homeowner’s and buyers’ dream. An organized pantry for food, oversized countertop appliances, stock-up food purchases, wine fridge and more. The time it saves each and every day from looking for items to putting things away is worth it on its own. Personally, I’d put this at the top of my list!
6. Side-by-Side Kitchen Sink- Are you surprised? Most people are ready for that statement to say Farmhouse kitchen sink, however, most buyers are looking for side by side’s as they feel they are far more functional.
7. Energy Star Appliances- This really goes without saying. As we are all conscience about money saving, and the effect of our choices on the environment, we look for energy-saving appliances wherever and whenever possible. Upgrading these in your home is an excellent return on investment if you plan to convey the appliances with the sale of your home.
8. Full Bath on the main living area. Many floor plans include a half bath on the main floor/living area. Today’s home buyers are actually looking for a full bath on the main level, making it much easier and accessible for overnight guests.  If you are looking to update your home, considering a full bath on the main level could be a game changer when it comes time to sell. It would certainly separate your home from others on the market.
9. Hardwood Flooring- Not surprising at all. This has been, and remains, one of the highly-sought-after flooring elements in a home and a home buyer top 10 for a long time. One big tip- buyers like the real deal. Laminate and vinyl varieties won’t garner the same reaction that actual hardwood will. While they are more durable and lasting, actual hardwood is still the gold standard.

10.Full front porch! Who says the days of sitting on your front porch and chatting with the neighbors is in the past?!  Today’s home buyers are still yearning for the wonderful front porch nostalgia of yesteryear. Now we’re not talking about the ‘old-time’ façade, although we still love that era, todays front porch is functional, beautiful in design, and has stunning curb appeal. Plus, it gives you another natural extension of your living space and neighborhood entertainment area.

Excited to get started on your HOME BUYING journey? We’re excited to partner with you!  Call or email us today to get started.

HOT PROPERTY OF THE WEEK!

12 DUSTIN COURT, PLACITAS, NM

Magnificent VIEWS of the mountains & mesas!! Featuring an IN-LAW/GUEST SUITE! Lower-level walk-out game room/media room! Lots of natural light, wood beam ceilings, open plan, separate study/office. NEW HVAC (2021)! SILICONE ROOF RESTORATION (2022)! The living room features cozy Kiva fireplace & wall of windows with mountain views! Formal dining room & butler pantry. Beautiful kitchen has Southwest style cabinets, island, built-in oven, gas cooktop, breakfast bar & nook with banco. The primary suite features a sitting room/office, fireplace, sauna, tub, separate shower, huge walk-in closet & covered patio with views! Secondary bedrooms with Jack-N-Jill bath! 3 car garage. Paved driveway & cul-de-sac location. Natural landscape, 2 waterfalls, covered portals & private courtyard!

GET YOUR MORNING INSPIRATION WITH THE Sandi Pressley TEAM!

Congratulations, you’ve decided you’re ready to purchase a home. It’s such an exciting time and you want to dive right into looking at homes, but you need to slow down and prepare accordingly.

Purchasing a home is a big decision and a huge financial step, so you want to make sure you are fully prepared financially to be in a position to get the home you want, and can afford, at the best rates possible.  Of course, if you have an abundance of cash at your disposal and can offer cash for the house, then you won’t need to read further, but for most of us, planning is crucial.

So, let’s break down the process to ensure your success.

1. Get your finances in order. Make sure you are ready to meet with a lender to get your pre-approval. Check your credit ahead of time just so you know where your credit score stands. You can utilize sites such as Credit Karma or Credit Sesame to get a good overview. If you find issues, it is better to take time to repair those issues before seeing your lender.
2. Down payment and closing costs- How much have you saved toward your down payment and closing costs?  The more you can put down, the less you need to finance. Thus, making your payments lower each month. You’ll also need to budget for closing costs, which are typically 2-5% of the total cost of the home purchase price.
3. Getting your Pre-Approval. This is the key. The housing market is tight right now, meaning inventory is low so there are more buyers per home. You need to make sure you are pre-approved for your loan amount- not only so you know exactly what you can spend, but so the sellers know you are serious, qualify for the loan, and can purchase the home. Often buyers who are not pre-approved will not have their offer even considered.
4. Once you are pre-approved for a home loan, it is very important that you do not make any large purchases or take out any loans, credit cards, etc. You need to keep your credit profile clean and consistent with where it was when approval was made. You’ll want to continue making all payments on current rent, mortgages, car, credit cards, etc on time.
5. Your real estate agent partner is also your fiduciary in the real estate transaction and is there to protect your interests every step of the way. This is why it is critical to partner with an agent/team that is experienced and knowledgeable in the local market and the field. Small mistakes can be costly ones.

At the Sandi Pressley Team we’re here to help you realize your dream of homeownership and partner with the best lenders, inspectors, attorney’s, appraisers and more in this industry to offer the most complete services to our clients.  Ready to make your DREAM COME TRUE?  Call us today.

HOT LISTING OF THE WEEK!

13908 INDIAN SCHOOL ROAD NE, ALBUQUERQUE, NM

Stunning home in the foothills with incredible views! SOLAR OWNED! POOL & HOT TUB! TWO PRIMARY SUITES! So many upgrades! Amazing outdoor living space with heated pool, hot tub, outdoor kitchen, wood burning fireplace, covered patios & balconies with mountain views & city lights! Grand staircase, open floorplan with lots of natural light! Entertainer's kitchen has Quartz countertops, backsplash, island, walk-in pantry, induction cooktop, wall oven, butler pantry/bar, sink & wine fridge! Beautifully updated flooring. The luxurious primary suite features private balcony with views, gas fireplace, his/her closets, separate study/office, jetted tub, two-way fireplace & separate shower. 2nd primary suite on the main level w/private bath & access to pool. Secondary bedrooms have Jack-N-Jill bath! 3CG with storage & workshop

GET YOUR MORNING INSPIRATION WITH THE Sandi Pressley TEAM!

When obtaining a home loan in Albuquerque, selecting a lender is the first step. A lender can refer to all parties involved in the loan process from the borrower's perspective, but in actuality, they do not handle all aspects.

Mortgage servicers may take over the loan after closing and handle day-to-day administration until it is paid off. Mortgage lenders can be a group of investors or a financial institution that provides funds to borrowers for purchasing or refinancing homes.

Some lenders service their loans, but most are too small to make a profit doing so, which is where a loan servicing company becomes part of the situation.

The Role of a Mortgage Lender

Mortgage lenders are responsible for the origination of loans. This process involves working with homeowners to select a loan, taking their application, and processing the loan. Additionally, the origination process includes underwriting the loan, creating the necessary documents, funding the mortgage, and ultimately closing it.

After your loan closes, the administration is needed on an ongoing basis until it’s paid off. This administration is known as servicing.

When you obtain a mortgage, the lender may transfer it to another company for loan servicing. This transfer may occur without prior notification, but the loan documents should indicate whether it will occur.

What Is a Mortgage Servicer?

Mortgage servicers are responsible for taking over tasks that lenders may leave unfinished. As a borrower, it is important to note that the servicing of a loan includes payment processing, which means that you are paying the servicer directly. Additionally, mortgage servicing involves keeping track of loan balances and interest payments. It is worth noting that your servicer will provide you with tax forms that show how much interest you have paid each year.

The servicer is responsible for managing your escrow accounts, which includes collecting and paying your homeowners' insurance and property taxes. In the event of a loan default, the servicer initiates the foreclosure process.

Additionally, servicers can provide loss mitigation services to help borrowers avoid foreclosure. If you wish to cancel your mortgage insurance and have a loan servicer, you must go through them to make the request.

Mortgage servicers can report the payment history on loans to credit bureaus, so if you think there’s been an error, you will contact this company rather than your lender.

Finding the Servicer on Your Mortgage

It's common to have multiple servicers throughout the life of a home loan. To find out who your servicer is, check your mortgage statement or contact your original lender. Another option is to use the Mortgage Electronic Registration System (MERS), which allows you to search for your loan online using your property address, name, or Social Security number.

When a mortgage is transferred to a servicer, the terms of the loan remain the same. The only difference is that you may receive a new account number and your payments will be sent to a different entity than your original lender.

When it comes to mortgages, your servicer can greatly impact your experience as a borrower. A good servicer will have reliable customer service and be easily accessible for any questions or concerns you may have. Unfortunately, you don't have the option to choose your servicer or switch to a different one. Your only option is to file a complaint with the Consumer Financial Protection Bureau or work with a lender that services its own loans if you're unhappy with your servicer.

Finally, when applying for a mortgage, lenders must provide a Mortgage Servicing Disclosure Statement. This statement informs you whether the lender plans to service the loan themselves or transfer it. It is a legal requirement for lenders to provide this information.

HOT ALBUQUERQUE LISTING OF THE WEEK

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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Currently, prospective homebuyers are facing a challenge due to the limited amount of properties on the market. Building a custom home is an excellent solution to this issue, and there are numerous other benefits to consider.

It is essential to consider the potential drawbacks of any decision. Whether the advantages outweigh the disadvantages depends on your individual circumstances and preferences. Here are some of the benefits and drawbacks to be aware of before making a choice.

The Pros of Building a Custom Home

When you’re thinking about building a custom home in Albuquerque, the following are some of the upsides.

You Can Get Exactly What You Want

When you purchase an existing home, you may have to compromise on certain features. You may be able to make changes or updates later, but you likely won't get exactly what you want. On the other hand, when you build a custom home, you can design it to perfectly suit your lifestyle and taste. However, be mindful that you don't create a home that is so unique that it will be difficult to sell in the future.

You Can Customize Your Location

When you choose to build a custom home, you are not only getting all the features you desire in the house itself, but you are also gaining the opportunity to select the perfect location. Perhaps you are drawn to the idea of purchasing land with no neighbors in sight, or you may prefer a stunning view of the Sandia Mountains. Either way, building a custom home gives you the freedom to make the decision that best suits your needs.

You’ll Have Less Maintenance

If you purchase an existing home, you are likely to spend a significant amount of your free time and money on upkeep and repairs. 

However, when you buy a brand new home, you can save thousands of dollars annually on maintenance. You won't have to spend your weekends making repairs, and you can use that time to do other activities. 

Of course, you will still need to take care of certain tasks, such as lawn maintenance, but this will be much less of a burden if you bought an existing or older home.

The Cons of Building a Custom Home

It’s not all upsides when it comes to building the home of your dreams. Downsides to think about include:

It’s Expensive

Constructing a custom home in Albuquerque will almost always be more expensive than purchasing a comparable existing home. You will need to collaborate with a builder, and labor costs will account for approximately 40% of your total expenses. 

In addition to labor, you will be responsible for paying for permits, design fees, and the building materials. You can reduce your costs to some degree depending on the materials and finishes you select, but it is difficult to get labor costs much lower than the initial quote.

Construction Loans Are Challenging

When you build a home, you may need to secure a construction loan. It is important to note that construction loans typically require a 20% down payment, and lenders consider them to be higher risk investments. 

To secure a construction loan, you will need to provide the lender with the same documents you would typically provide when getting a traditional mortgage. Additionally, you will need to provide plans for your project, estimated costs, and information about land value. 

You must also give the lender a signed contract with the plans for your project, specs, and the timeline for construction. With the right preparation, you can confidently secure a construction loan for your home.

Building Can Take a Long Time

Ultimately, you must consider the fact that constructing a custom home can be a lengthy process. Even a basic, small house will take a minimum of three months to complete. If you are constructing a larger home, it could take up to a year or more to finish. 

Additionally, there are a variety of potential delays that could arise, such as inclement weather or difficulty making decisions on certain aspects. Therefore, it is important to be prepared for the possibility of a lengthy construction period.

If you want expert advice to help you decide if you should build or buy, give the real estate experts at the Sandi Pressley team a call. They will prove to be a valuable resource in your journey to live in the home of your dreams in Albuquerque.

HOT ALBUQUERQUE LISTING OF THE WEEK

Phenomenal private North Valley oasis located on one of the most coveted streets in Los Ranchos. Entering this magnificent property will take your breath away. Single level. Elegantly and completely renovated in 2018. The entire home encompasses high end finishes, impeccably done with exquisite taste. Two very large living areas, options for formal and casual dining, tremendous windows with exclusive custom drapery. Kahrs white oak wood floors. Chef's kitchen with massive island, custom cabinetry, quartz counter tops and high end appliances. Each bedroom has its own bath and walk-in closet. Separate office with gorgeous builtins. Grounds are simply stunning. The property is gated and fully fenced. Mature trees, fruit and nut bearing, beautiful grass. 

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

If you plan on buying a home in Albuquerque, you likely will need a mortgage. The process of finding a mortgage might involve the assistance of a mortgage broker. An experienced mortgage broker can help you secure the best interest rates and terms. There is, however, still some residual doubt about working with these professionals after the 2008 real estate market crash.

There is a possibility that a mortgage broker is not really looking out for your best interests. It is true that working with someone who is experienced and ethical is an asset. Using a mortgage broker has its pros and cons, just as anything else.

Mortgage brokers are an alternative to banks. Banks and mortgage companies are direct lenders. The financial institutions in this category originate, process, and fund loans. Money is lent by the company handling your loan process.

A mortgage broker is a middleman, and the goal is for the broker to match you with the right lender for your needs. Brokers work with wholesale mortgage companies, so they’re your primary and unified point of contact to compare multiple loan options.

The following are some of the pros and cons of working with mortgage brokers.

What Are the Pros of a Mortgage Broker?

When you work with a broker, benefits include:

Brokers have access to interest rates and loan program options from various lenders, so they might be able to get you a more specialized product that’s well-suited to your needs.

In addition to everything else that comes with buying a house, comparing lenders is time-consuming. Brokers can help manage the legwork, and they can also make sure you steer clear of lenders with adverse payment terms that might be otherwise buried in the fine print. While brokers do a lot of the heavy lifting, so to speak, you still need to do some of your own research before meeting with someone so that you’re going to be better prepared to assess the skills and qualifications of the broker.

Since brokers work exclusively with lenders, they might have better access. Some lenders won’t let you directly get in contact for a retail mortgage.

Brokers can get special rates if they generate a lot of business for a lender, and you wouldn’t be able to do this on your own.

Brokers might be able to manage the fees. There are a lot of fees that come with getting a mortgage, including application, origination, and appraisal fees. A mortgage broker may be able to negotiate with lenders to waive some or all of these, which can end up saving you thousands of dollars.

What Are the Downsides of Working With a Mortgage Broker?

There are some downsides you have to weigh that come with working with a broker.

Mortgage brokers aren't guaranteed to act in your best interests. Brokers earn a commission when they refer business to lenders, so if you were working with someone, they could steer you toward a loan that's higher than you want. After the 2008 housing market crash, many brokers earned a negative reputation for maximizing their own compensation.

Some mortgage brokers may offer you the same terms and rates that you’d get from the lender anyway. You should probably still shop around to make sure what you’re getting from a broker is the best deal, increasing the amount of work you need to do and negating some of the benefits of working with a broker in the first place.

A mortgage broker might be paid by a lender or by you. In such a case, you might also need to inquire about whether you are being guided toward a loan that ends up being more expensive just so the broker can earn a higher commission. It is essential that you know all fees upfront before you agree to anything or work with a broker.

For many buyers, particularly since you have access to online comparison tools, a broker might not be worth it as you secure a mortgage.

HOT ALBUQUERQUE LISTING OF THE WEEK

Majestic Custom Tuscan style home with over 3500 square feet, featuring an open & bright floorplan & thoughtful architectural & design details throughout! Grand foyer leads to stunning great room boasting a raised, beamed ceiling; floor to ceiling 'stack' stone fireplace; picture windows to enjoy the Sandia Mtn views; & surround sound extending out to covered patio. Gourmet kitchen graced w/beautiful cabinets & granite cntrs; high end SS appliances w/dbl ovens & 2 microwaves; oversized eat-at island; large pantry & sunny nook. Exquisite custom etched glass doors open o the formal dining room! Privately situated primary suite is a true retreat with its own east facing patio & spa like en suite.

Learn More!

Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

High atop in Placitas with magnificent sunrise & sunset views of mountains & mesas!!

12 Dustin Ct, Placitas, NM

4 Bedrooms/ 4 Baths/ 4959 SqFt

Featuring amazing natural light, wood beam ceilings, an open plan, three living areas, separate study/office plus an In-law/guest suite! The cozy living room boasts a Kiva fireplace & wall of windows with incredible mountain views! Entertain in your formal dining room with butler pantry. The beautiful kitchen has Southwest style cabinets, island, built-in oven, gas cooktop, breakfast bar & nook with banco. A serene private master suite features a sitting room/office, fireplace, separate shower, huge walk-in closet & covered patio with more fantastic views! Secondary bedrooms with Jack-N-Jill bath! The lower level features a walk-out living room/game room/media room-talk about great family time and entertaining!! A three-car garage, paved driveway, and great cul-de-sac location. Wonderful natural landscaping includes 2 waterfalls, covered portals & private courtyard. Your own oasis away from it all!  NEW HVAC (2021)! SILICONE ROOF RESTORATION (2022)! This is MUST-SEE.  Don’t wait to make this home your own!

So many more gorgeous photos and details to see! Click here to view.

Are you searching for a specific type of home, in a certain neighborhood?  Give us a call and let us do the work for you!  We'll sit down and have a conversation to find out all about your needs and requirements and get to work finding you the perfect home.  Call us today. You can also create a customized home search right here on our website. Click here to begin.

We can't wait to help bring your dreams to reality.  

It's already a stressful process when you buy a house in Albuquerque. Home inventory is low right now, despite falling prices in many markets and rising interest rates. The shortage of inventory has led some buyers to waive home inspections or use escalation clauses in their contracts, which they wouldn't normally do.

Whatever you do to get your dream home in Albuquerque, don't skip the final walk-through.

You should walk through the house again after making an offer to ensure it is still in good condition. It is your responsibility to ensure that the seller completed the repairs or improvements you negotiated.

Who Comes to the Final Walk-Through?

The final walk-through is usually attended by the buyer and the buyer's agent. Buyers can inspect everything at their pace without feeling pressured by sellers or their agents since they're usually not present.

A builder or contractor may come if the house is new. A walk-through of a new build is primarily intended to identify cosmetic issues. There will be high expectations since the home is brand new.

In cases where issues were discovered during a home inspection that needed to be corrected before closing, the inspector may need to return to make sure everything was done correctly. If you have another inspection, you should schedule that before you do your final walk-through.

Scheduling

Usually, you'll do your final walk-through within 24 hours of closing. Your agent can help you schedule and coordinate access times with the seller's agent.

The final walk-through is often performed the night before or even on the way to the closing. 

It depends on you, your agent, and the house how long a final walk-through takes. If the home is small, it can take 15 minutes. Extra time might be needed if you have a pool or a detached building. If the house is larger, it may take an hour or more.

Do not feel rushed, so take your time. Make sure you check everything.

It’s Not a Home Inspection

It's important to remember that your walk-through isn't an inspection. This is an opportunity to address any issues raised during the inspection.

During the walk-through, your agent should bring documents that provide guidance and confirm everything is as it should be. A seller's disclosure form, inspection report, and repair amendments agreed to by the seller will be included in this documentation.

If the seller made repairs after the inspection, ask for receipts, which they should bring with you to the walk-through.

There’s no fee for a walk-through either—it’s just part of the process.

What If You Find An Issue?

Finding a major issue during a final walk-through can be a serious issue. Approximately 5% of contracts were terminated in January of this year due to non-compliance.

A minor issue doesn't necessarily mean it's a deal breaker. What might end up happening is that you delay your closing a few days to fix the problem or request a credit at closing so you can deal with the repairs needed after you move in.

Negotiations are usually the best way to resolve issues. If it isn't a big deal, your agent might even recommend proceeding with the closing. Unfinished repairs like missing appliances or major property damage cannot be overlooked. At this point, most sellers will want to make things right.

Can You Back Out?

Unless there's a significant change in the property's condition, it's tricky to end your purchase agreement after a final walk-through. It's better to try and work it out so that the seller gives up the money needed to make the repairs if there's something small.

Depending on your real estate contract, you may be able to back out if the property doesn't meet your expectations.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

This gorgeous Roger Smith built home is located in a very private quiet compound in desirable Sandia Heights! Lots of natural light and windows to enjoy the peaceful scenery. This 1800 sf 3 bedroom 2 bath home features a mid century modern vibe with soft clean lines that are timeless in nature, raised T & G wood ceiling, remodeled kitchen and baths, beautiful wood floors in all bedrooms. Private owners suite with spa like bath and access to the inviting backyard. Please see all updates/improvements in documents to many to list. Artistically landscaped yard with mature trees, flowers and plants. Close to Sandia Tram, walking and hiking trails. Home has been meticulously maintained with enormous pride of ownership.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

There is a range of emotions that can arise from inheriting a house. Perhaps you feel sad because you have lost someone close to you. Knowing what to do next and the financial impact can also be overwhelming. A house is also a very valuable asset, so it can be exciting as well.

How should you proceed if you inherit a house in Albuquerque?

In this situation, you essentially have three options. Sell it, move into it, or rent it.

Concepts to Consider

You will first need to consider your legal and financial obligations when inheriting a house. A loan, for example, might be owed. Inheriting property may also incur tax responsibilities, such as capital gains and federal estate taxes.

It's not a federal inheritance tax if you inherit a home, but some states have them. In most situations, inheriting property does not automatically result in a tax liability.

An asset, such as a house, can generate capital gains taxes. If you sell the house, you may have to pay capital gains taxes. There are tax implications when a home's fair market value is less than its sale price when it is inherited.

You may be eligible for an exclusion if you keep the home.

Is There Currently a Mortgage?

Having a house that's already paid for means fewer financial considerations.

A property with an open mortgage can be assumed, which means you take over the payments as an heir and pay off the debt based on the original terms of the mortgage.

Reverse mortgages and some other loans become due at the time of the borrower's death or the sale of the property. In such a case, as the heir, you would be required to sell the home and settle the remaining debt if a reverse mortgage is open.

Did You Inherit a House with Your Siblings?

Having several siblings or family members inherit the same house is common and complicating. Therefore, multiple opinions could play a role in the decision on what to do with the property.

A buyout may be an option if there are multiple stakeholders. For whatever reason, one sibling can purchase the other sibling's home if they want to keep the house.

The simplest thing to do is to sell the home and split the profit. The home can also be rented out and the profits split.

You may need to file a lawsuit for partition if you cannot agree on what to do. In this case, the court will order the sale of the home. Due to the legal fees and time involved, you'll receive less than you would have without this step.

Can You Move into the House?

You might want to move into an inherited home if there are no complicating factors or if the people who share ownership agree to it. Again, if there is an outstanding mortgage, you'll need to determine whether or not taking on that debt makes financial sense.

Not only do you have to consider the mortgage payment, but property taxes as well as any other costs associated with owning a home.

Selling your current home and moving in without taking on debt may be possible if you have no obligations.

In order to sell the home you inherited, you have to pay for any needed repairs as well as real estate agent fees and closing costs.

Again, if you fall into a particular tax bracket, you'll have to pay capital gains on the difference between the fair market value of the property when you inherited it and what you sold it for.

When inheriting a home, many things come into play, from whether or not the home is currently debt-free to how many people share it with you. Make sure you research all financial implications before making any decisions.

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Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

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During a period of expansion, there is always a recession, which is often referred to as a pause in the economic cycle. Even though recessions end, they still cause damage along the way. In addition, they affect the Albuquerque real estate market and interest rates.

Low unemployment, manufacturing growth, income security, and steady or climbing interest rates are all signs of a healthy economy.

Recessions can happen suddenly or gradually. During a recession, unemployment is high for several months. Uncertainty may cause people to spend less, so business earnings decline. When companies tighten their budgets, jobs may be lost in manufacturing.

How Does a Recession Affect Mortgages and Interest Rates?

In an economy with less spending, money does not flow as freely. In times of recession, the Federal Reserve often adjusts interest rates to minimize economic disruption. This can stabilize the markets and increase consumer confidence, which can encourage more spending.

Mortgage and loan rates are then set using the adjusted interest rate.

When the economy is struggling, people are less likely to spend and prefer to save, so loans aren't as in demand. Home prices during a recession will often decline.

What Happened During the Great Recession?

Because of the housing crash that triggered it, the Great Recession lasted from 2007 to 2009, and it had a huge impact on mortgages and the housing market.

The price of homes fell quickly across the country, while employment soared. The average homeowner owed more on their mortgage than their home was worth. Many homeowners faced foreclosure.

That’s not always what happens during a recession, though. In most modern recessions, house price appreciation has stayed relatively steady, and year-over-year growth in home sales has only declined a bit.

Home prices and the sales of existing homes don’t inherently go down because there’s a recession.

What typically happens is that the housing market can benefit during a recession. Monetary policy is loosened to stimulate the economy, leading to lower mortgage rates. This increases homebuying power, and homes become more affordable if people are willing to spend.

You Could Refinance

If there were a recession and mortgage rates went down because of it, in theory, if you had an existing mortgage, you could use it as an opportunity to refinance. Of course, to refinance you have to be approved by a lender.

That can be more difficult during a recession both because of economic factors and things happening in your personal finances.

What About Buying During a Recession?

While it can seem scary, buying a home during a recession can be a good long-term financial decision if you’re in the position to do it.

You may face less competition among buyers, lower housing prices, and lower interest rates. Since there’s diminished consumer confidence during a recession, you’re not likely to face the bidding wars that homebuyers are dealing with.

Of course, you’d have to have a steady income and be confident that it would stay the same for the foreseeable future.

In the end, recessions come and go. Understanding how they affect Albuquerque home values  and mortgages will help you ride the next one more smoothly.

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Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team