Making Offer to Buy a House: Arizona Real Estate Residential Purchase Contract
If you are buying a home with your Arizona licensed Realtor®, they are required to use the Arizona Association of Realtors ® (AAR) pre-printed purchase contract forms. A good real estate agent will help you prepare and negotiate so you can make an offer that considers all of the factors that are important to you and your family.
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
- How much down payment are you putting down
- 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
- Who will pay for the appraisal
- What title and escrow company that will be used
- The length of time of the inspection period
- Paying for a home warranty
- Whether or not the earnest money deposit is refundable (you can negotiate amount and timing)
Legally binding agreement
You need to clearly understand that once the contract signed by both parties (buyer and seller), it become legally binding agreement. If you breach the contract you will probably lose your earnest money deposit. It is even possible that if the seller can sue you if the seller believes that your breach has caused him or her to suffer losses. As such, you need to communicate any changes in your circumstances that would cause you to not honor the purchase contract. You also need to know that there are certain contingencies included in the purchase contract that allow you back out of the contract under certain circumstances.
Good faith
As buyer, you must act in an honest and sincere manner with the seller at all times. If you make an offer to purchase, you must be prepared to complete the transaction. If you know there is the potential that you may be unable to close, for any reason, you must provide the seller with this information up front. A contract is basically a set of signed promises. Be prepared to deliver what you promise.
Time is of the essence
You and the seller are at the top of an information pyramid and there are literally 10-20 people who need that information from you to do their job and amke sure the transaction go through in a timely manner. Pay attention to the timeline, especially the contingencies. Act as quick as possible if your lender is asking for more documentations. The 3 days you sit on that paperwork, may be the reason your transaction closes 5 days late!!!
Also read: Parties and responsibilities involved in real estate transaction 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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