Making an offer on a house
Once you’ve found the home that you want to buy, you and your Realtor will go through some required information to write the contract. Your agent will prepare the documents needed for officially making an offer on a house. You need to review the documents and make sure that they properly presents your best interests. You will sign the purchase offer and your agent will present it to the seller’s agent along with your mortgage pre-qualification letter.
Arizona Residential Resale Real Estate Purchase Contract
The 11 pages Arizona Residential Resale Real Estate Purchase Contract is a legal document that outlines the duties, requirements, and other information when buying a house in Arizona. The contract has been created over time to offer clarity and protection to both buyers and sellers of real estate in Arizona. There are key elements that will be part of the negotiating process when making an offer on a house. Here is the list:
- The purchase price
- The amount of earnest money deposit you will provide to be held in trust with a Title company chosen.
- How much down payment are you putting down. This should be discussed with your lender on making a decision, any amount over 20% does not require PMI (private mortgage insurance)
- The closing and possession dates
- Addenda Incorporated. If the property has HOA, must include HOA addendum
- Inclusion of certain fixtures and personal property
- Financing type, what type of loan
- The amount you are asking the seller to pay for your closing costs on line 100.
- Who will pay for the appraisal
- What title and escrow company that will be used
- The length of time of the inspection period. Typically 10 days, but shorter inspection periods are more attractive. You will respond with a Binsr, here is a sample document, click here.
- Paying for a home warranty
Legally binding agreement
It is imperative to fully grasp that upon the mutual signing of the contract by both parties, namely the buyer and seller, it transforms into a legally binding agreement. Breaching the terms of this agreement could result in the forfeiture of your earnest money deposit. Furthermore, there exists the potential for legal recourse by the seller if they deem your breach to have incurred losses upon them. Therefore, it is essential to promptly communicate any changes in your circumstances that may prevent you from fulfilling the obligations outlined in the purchase contract. Additionally, it is crucial to be aware of the contingencies integrated into the purchase contract, which afford avenues for withdrawal under specific circumstances.
Good faith
As a buyer, it is imperative to uphold honesty and sincerity in all interactions with the seller. When submitting an offer to purchase, it is crucial to commit to completing the transaction. Transparency is key—if there is any possibility that you may encounter obstacles in finalizing the deal, it is essential to disclose this information to the seller from the outset. Remember, a contract represents a series of commitments. It is essential to be fully prepared to fulfill the obligations you agree to within the terms of the agreement.
Time is of the essence
To save $20,000 on your contract will depend on the days on market, price point, condition, and market. The main areas to focus on are:
- Purchase price, always try and get the better deal arguing condition, last sales, and just throwing it out there. Every seller is different.
- Line 100 – Seller concessions: Depending on the market, you can ask for up to 6% of the purchase price on this line. Click here to find out what this can be used for.
- Home Warranty: Ask the seller to pay for the home warranty of $500-800 on average to ensure there are no unexpected surprises in the first year.
- Hoa Addendum: If the subject house is in an hoa, some transfer and cap fees can get into the $1000’s I always check the box where the seller pays these fees.
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