How to Make an Offer When Buying a House in Arizona
After spending some times touring multiple properties with your Realtor, finally you’ve found a house you love, and now you are ready to make an offer. This is where the process really begins to get serious and the paperwork starts to build. Buying a house is not a handshake deal and verbal agreements just don’t count. In fact in Arizona all little detail expected to be a part of the terms of sale — must be written down and specifically agreed to. If you are buying a house with a Realtor, we Realtor use variety of standard forms, including Arizona Residential Purchase Contract to kept up to date with the changing laws.
What to Include When Making an Offer
An offer is just a contract with only buyer signature on it. It will become a binding sales contract after the seller agrees to it and signs it. It’s important, therefore, the offer contain every element needed to serve as a blueprint for the final sale. These purchase offers should include the following:
- Offer price
- Earnest money
- Down payment
- Closing date
- Personal property included, if any
- Seller Concession, if any
- Escrow company
- Home warranty
- Additional terms
- Offer expiration
Offer Price
Your real estate agent will research recent comparable sales and help you decide on the price you want to offer.
Earnest Money
Earnest money is the “good faith deposit” that shows you are serious buyer. This deposit shows the seller that you’re serious about the offer to purchase the property and to complete the transaction.
Down Payment
The amount of down payment to put down is depending on how much cash you have and loan program that you use for your purchase.
Closing Date
The closing date is the date the transaction complete and buyer taking possession of the property. In Arizona, it typically take about 30 days to 45 days to complete the transaction. This time frame is determined by your lender most of the time.
Personal property included, if any
Is there any personal property included into the sale? Personal property such is refrigerator, washer, dryer, hot tub and others. If there is personal property included, it must be list down inside the contract.
Seller Concession, if any
Is buyer asking for seller’s concession or closing cost? If buyer is asking, will seller concession in percentage or dollar amount? These information need to be included inside contract too.
Escrow company
Which escrow company does buyer choose to handle the transaction? Normally buyer will select the escrow company, but seller can counter offer that. Your Realtor will guide to through which escrow company to choose.
Home Warranty
Most home warranty coverage start on the first day you own the house, if you buy home warranty at the same time when the purchase of your house. Is buyer getting home warranty? If so, by what company and what kind of coverage option? All these information need to be included inside contract. Home warranty purchase can be paid by buyer or seller. Remember, everything inside real estate transaction is negotiable.
Additional Terms, if any
This is where you might add custom clauses such as, “Seller to remove shed in backyard before close of escrow.”
Offer Expiration
Lastly, your offer must be include an expiration date and time for seller to response. If seller did not response (either accept counter offer or reject) by the expiration date and time, it will consider seller has rejected your offer. It is not uncommon for offers to be valid for only about 24 hours in Arizona.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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