Buying a home in Arizona is a very strait forward experience no matter if your an investor, first time home owner, moving into Arizona, or just want a better home for your lifestyle and needs. There are basic steps along the way that make it easy and simple, especially when you utilize a Realtor that excels at keeping his clients informed about the process while smoothing out the road to find a home that fits your criteria, in a community that fits your needs. So as a Buyer / Investor, if your interest happens to be in Short Sales, Bank Owned (REO), or traditional homes for sell, I can assist you in finding a home that meets your criteria.
The following is a quick, basic, 7 steps of buying a home in Arizona.
(To receive a very nicely organized, in depth, step by step guide, request my FREE Homeowner’s Guide to Buying & Selling in Arizona. Simply send me your name and email by using the easy request link noted on the right side bar.)
1. Find the Right Realtor.
One reason I am asked to represent Buyers is because of the many tools and experiences I can bring to the process. generally you want to work with a Realtor that you feel you can trust and has your interest foremost. Someone you feel comfortable with and has a personality you would like to work with. Someone who is also available and easy to reach. Someone who can be flexible to work within your time frame and stays within the criteria and budget you decide on. Never let an Agent push you into a purchase that does not fit your criteria as the Agent should let YOU make the final decision.
2. Getting ready to start looking.
Once you have selected the right Realtor, you might be asked to enter into an Agency relationship with your Realtor for a specific time frame. The Agent then has a responsibility to work in your interest only. This also creates a loyalty and responsibility from both parties to work toward the common goal of finding and securing the purchase of your home. Many Realtors, myself included, will not hold a client to an Agency agreement for the duration of that agreement if the Client for some reason becomes no longer comfortable working with that Agent. However any introduction to a Buyer or Seller during the time of the Agency relationship that leads to an actual transaction later on will most likely still lead to you having to compensate that prior Agent, which is only fair.
You will also want to have, or soon secure, an indication of your prospects for mortgage financing or cash reserves that convey that you have to ability to purchase the home within the buying price you have selected. For mortgage financing you can use your own lending institution, or, shop your financial ability to various mortgage lenders and brokers to determine your lending qualification and of course look for what you feel is the best offer and terms. I do have access to very good mortgage brokers that will evaluate your qualification for a mortgage loan and will provide you with that status for free! You do not have to use them and still may shop around for the best deal. Whichever lender you decide to use, one very important item to understand is that you will need a Loan Pre-Qualification Form from a Lender to identify yourself as qualifying for a mortgage loan, and approximately how much. This simply is a brief statement, usually 1 page, which you can use to justify any offers you wish to make towards purchasing a home. Think of it as a cursory OK letter from your Lender. Most contracts written in Arizona now require a Loan Pre-Qualification Form to be included as part of the contract.
3. Shopping for your home.
Now the fun begins as your Agent will utilize the tools available to him to seek out the home that fits your unique requirements. I often set up what is called a Portal by an email link that provides my Clients up to date selections to the homes on the MLS that I have found to fit your criteria. This gives you ready access by internet allowing you to notate which homes have your highest interest and thus defining your selection to only those of the highest match. Once you have found a few that really define what your looking for, then we will arrange a time to take a first hand look at these homes. Usually you will look at a number of close matches. That is why I provide, and encourage, my Clients to use a Home Comparison Chart in order to keep track of what you like most, did not like, or other features that was of interest on each house you look at. This chart will help you remember more detail of each house and help in selecting the best one, especially after you have seen a few.
4. Making an Offer.
Yeah! You found the home you were looking for! Now an Offer must be made to the Seller. I will discuss with you what the best Offer to make. Sometimes it might be less than the list price. Sometimes due to other offers, or the particular nature of the market, you may want to Offer the full asking price or even a bit more. You will also want to make sure that any terms and conditions that you require, or that I have suggest you consider, be included in the Offer. As your Agent, I will write the offer up and present it to the Seller’s Agent. If the home is a Short Sale or Bank Owned (REO) property, the offer process can vary and responses can take significantly longer. These are special cases and you will be informed and guided accordingly before submitting your Offer.
6. Escrow
Your Offer will be decline, countered, or hopefully accepted. If you receive an accepted Offer between you and the Seller, you will most likely be required to place a deposit of earnest money in an escrow account to demonstrate your sincerity to proceed with the buying process. This actually begins the Escrow process. The size of the earnest amount depends on a number of factors but is usually not too significantly large. It is held for eventual use as part of the of the closing costs and is even refundable if certain expected conditions do not materialize during the escrow process. The earnest deposit can also be forfeited if you do not proceed in good faith within the terms of the accepted Offer. Another reason to use a Realtor is to protect your interest and help you understand your requirements.
Escrow is a neutral independent third party and account. It is created to process the sales transaction in accordance to the instructions contained within the Purchase Contract. It protects ALL parties involved and favors neither Buyer or Seller by acting as the depository for all monies, instructions and documents pertaining to the transaction so that a legal smooth transaction can occur. It is also allows time to complete financing qualification, appraisals, structural and pest inspections if desired, check into insurance, secure a home warranty, and other items specified in the Purchase Contract or desired by time of conclusion.
7. Close of Escrow
The close of escrow (COE) and transfer of ownership occurs when the transaction has been recorded at the County Recorder’s office, as noted by law.The close of escrow date in the Purchase Contract is usually noted as the date that the transaction was given to be concluded, in terms of all contractual and other items to be considered, such that on this date the final exchange of funds and document signing between the Buyer and Seller will occur. It is also known as a settlement date. You must bring a valid ID and any funds not already sent to escrow that you might be required to bring. These funds should be in the form of a Cashier’s Check or wired previously.
Once actual recording of your transaction takes place and is confirmed (usually electronically the same day or next day), you may have the keys to your new home! Congratulations!!
