Buying Your New Home in Arizona
The Buyer Consultation
At your first meeting with us, we like to arrange a brief consultation during which we explain the details of Buyer Agency and go over the whole process of finding and purchasing your new home. We go through the purchase contract so that you will know what it contains and how it protects you. We also review your goals and desires about your new home and, if you are fairly certain of the criteria for your search, we can do a computer based search of the MLS and print out listings which appear to work for you. Once you decide which ones you want to see, we can arrange showings.
Looking for Your Next Home
The search begins with your wants and needs. Think about what you must have and what you would like to have. If your family demands five bedrooms and lots of kitchen, it's a need; if the kids really want a big pool, it's a want. By considering both wants and needs plus the price range and area where you want to live, you can arrive at your "dream home" criteria. When we receive your criteria, we will e-mail you a link to the properties that match. You can view the listings at your leisure and arrange for viewing at your convenience. If there is a change in the search results, you will be notified by e-mail. No pressure.
While you are in the "search" mode, you will no doubt spend time driving around and may have a look at open houses or new construction. The agents you meet at these places have an obligation to represent the seller or builder's best interest. Remember, as your agent we can represent you in the purchase of any home in the area, but you must inform other agents or site salespeople you meet that you are working with a buyer agent. In the case of site sales of new construction, your agent must be with you when you register. So if you are asked to register, just say you'll return with your agent if you are seriously interested in the development.
Making an offer
You have found the right home, just what you were looking for. You have had a chance to look at it and ask some questions. Now you are ready to make an offer. Here we become your best friend. When looking at a certain market, we have a feel for the trends and values in the area. You may want to offer less than the asking price while we may know you should offer full price or more. (We have seen full price offers lose out.) On the other hand, a lower offer may be called for, in which case we are prepared to present valid reasons why the seller should consider the lesser price. Remember, even top agents don't win every negotiation, but it is best if everyone is satisfied with the final deal. There are many elements to an offer which increase or decrease its strength in the eyes of the seller. We can work with you on all areas of the offer, from the amount of earnest money you wish to put down to any contingencies you may impose. Once you sign the offer, it becomes a potential contract requiring only the sellers' signatures to become binding on all parties (given that all contingencies are met).
Negotiations
Counter offers and addenda are often the reply to an offer. Here again, we consult with you as to what the counter offer means and how you can respond. As always, the goal is a successful transaction that pleases all parties.
Inspections
The offer is accepted! In the normal contract, you now have ten days (the time can be changed in the contract) to perform any and all inspections that you desire. (A list of possible inspections is included in the purchase contract, but you may desire others as well.) Any concerns you have regarding the property should be addressed during this inspection period. If square-footage is a concern, have it measured; if there are concerns about mold or other environmental issues, have them checked. In Tucson, typical inspections include those for termite and other wood infesting organisms and a home inspection carried out by a state licensed inspector. All the information about the property that you have collected should be verified if possible. You only get one chance to do this, so be thorough and use well the time you have. After all the inspections have been completed, make one list of any "reasonably disapproved items." (Cosmetic items are not considered apropos.) A "final walk-through" is made the day before closing to make sure that everything is in the same condition as when the offer was made and any agreed upon repairs have been made.
Homeowner Insurance
In recent years the insurance industry has developed a database of people and houses which have had claims in the past. It works something like a credit report and is called a CLUE report. The result has been that some home buyers wind up paying exorbitant premiums for their homeowner insurance. You must make sure within the inspection period that you will have insurance coverage and at what premium. For answers to common questions check out The New Reality of Property Insurance .
Transaction Checklist Insurance Issues
- Discuss current insurance market conditions with your insurance agent and any problems you may have in obtaining insurance on the home you are purchasing
- Review offer to purchase to identify insurance issues/contingencies or need for such contingencies with your attorney
- Contact one or more insurance agents immediately following acceptance of purchase contract by both parties to begin process of obtaining necessary insurance.
- Obtain commitments to issue an insurance policy from an insurance company in writing and carefully review it with your attorney or insurance agent to determine scope of that commitment.
- Be aware of alternative insurance sources that may be available if a problem develops:
- Know available sources of insurance (i.e., what other insurance companies are in market by calling different insurance agencies in the community)
- Check with Seller's current insurer to determine if that insurer will continue to insure property with new owner
- Check with Buyer's current insurer to determine if that insurer will continue to insure buyer in a new property
- Alternative forms of coverage that may allow transaction to proceed (FAIR Plans, Fire & E.C., etc.)
The Escrow Process
When your offer is accepted, an escrow account is opened. The earnest money check and the Purchase Contract, which constitutes the escrow instructions, are placed with an escrow officer at the selected title company. The title company acts as a disinterested third party collecting funds from the buyer and/or lender, ordering title insurance, pro-rating taxes, etc., preparing buyer and seller statements to reflect payment of various costs and pro-rations, and finally disbursing funds and recording new title. There are a number of ways a person or persons may take title in Arizona. The title company can provide a list of the possibilities, and we recommend you obtain legal and tax counsel in regard to this important decision.
Good Funds Law
Arizona law requires that all funds needed to close must be cleared to the escrow company prior to closing. Out-of-state checks, including cashier's checks, usually take five or more banking days to clear. Even local checks may take a few days to clear. Local title companies recommend wiring the funds to your escrow account, but even this method is not instantaneous. In order to help ensure that the transaction will close on time, you need to get the funds to the escrow company well in advance of the closing date.
The Closing
The parties do not meet at closing. The sellers and the buyers go separately to the title company to sign the final papers. In Arizona, title changes when the deed is recorded, or upon "recordation." Only then can the keys be turned over to the new owner. We will go to the closing with you and check the closing statement for you.
Moving Day
We are dedicated to your complete satisfaction in the purchase of your new home. Through our Concierge program, we provide you with access to almost every possible kind of assistance you might need. The companies involved offer discounts and superb service. We enroll you in the program at our first meeting so that you can enjoy their special offers and discounts right away.
Welcome Home
Once you have had a few days to settle in, we check with you once again to assure that your move has gone satisfactorily and to ask whether we may be of any further assistance. Seeing you enjoy your new home is our greatest reward.
