Tucson Real Estate Blogs » Tucson Real Estate � Home Buying 105

Tucson Real Estate & Golf Properties

Douglas Trudeau , Assoc. Broker
Prudential Foothills Real Estate
64 N. Harrison Road, Suite 160
Tucson , AZ 85748
Mobile: 520-954-2209
Contact Me

Tucson Real Estate � Home Buying 105

Making an Offer and Writing A Purchase Contract

You are pre-approved by your lender, are comfortable with your REALTOR®, know how you want to take title and found the right home. Now you are ready to make the offer. Let’s consider a few things in writing an offer.

Price

What have like or similar homes in that area sold for? If in a neighborhood or community with homes built by the same builder with the same square footage it will be easier to find comparative sales. If the home is unique with little or nothing to compare to, it will be harder to determine the right price.

In Arizona the Residential Purchase Contract clearly states that the home must appraise for the sales price acceptable to the lender. If you are paying cash, insist that a clause referencing appraisal for the sale price be written into the contract. The Residential Purchase Contract is a nine page contract with years of revision and legal review designed to protect the buyer and seller. However, it does not cover everything. Your REALTOR® will prepare this contract based on your instructions.

Fixtures and Personal Property

Tucson Real Estate - Kitchen What personal property and fixtures did you as the buyer see that you feel is part of the sale of the home? There is standard verbiage in the contract for personal property and fixtures to protect buyers. Assuming that something is included in the sale is a point of conflict. If in doubt and you want it, make sure it is written into the contract. If you want it removed, make sure it is in the contract. Leaving nothing to guessing or assumption will save head ache later.

Closing Date

What date do you want to take possession of the home? Closing date and signing dates are two separate dates. Depending on your lender, you may set the Close of Escrow (COE) for the 30th of the month, and need to sign on the 27th.

Earnest Money

Tucson Real Estate - Money Though earnest money is not mandatory, it does show the seller that you are serious about buying their home. There is no set amount. It depends on what you can afford, and what you can afford to lose if you walk away from the deal. It is difficult to lose your earnest money. It has happened to those who have been in serious breach of contract.

Inspections

This is a whole topic in itself. I’ll try to be brief and focus on this area in Home Buying 106.

How much time do you need for inspections? For home purchases in Arizona the standard is 10 days; for vacant land it is more. You are advised at minimum to get a home inspection and pest inspection.

In Arizona, ask for an SPDS (Seller Property Disclosure Statement). Ask for a CLUE (Comprehensive Loss Underwriting Exchange) report. This is the area most overlooked. Insist that you get the SPDS, CLUE, applicable CC&R’s, By-Laws, and anything else that may impact on your decision, make sure this request is in writing in the offer. Do not assume anything.

Loan Status Report

Tucson Real Estate - Bank In Arizona Buyers are required to submit a Loan Status Report (LSR) for proof of preliminary approval for a loan. Your Lender needs to work closely with your REALTOR® if there are special considerations or conditions. What is written in the contract must meet lender requirements. This is where special instructions from the lender can save problems at closing.

Additional Conditions

Any additional conditions you may request. For seller assistance in costs, removal or inclusion of items, professional cleaning, etc.

Deadline For Response

Reasonable amount of time is recommended. Not too short, and not forever. Normally 24 to 48 hours is enough time for a response. In some circumstances a few hours or a week may be appropriate.

Summary

When writing an offer to buy a home what is written is the agreement. Verbal agreements have no bearing. As humans we will get side tracked and forget. Writing notes about what you want, and then verifying that what you want is in the contract prove beneficial. The seller may counter offer on price, personal property, closing date, or any other condition. Once both sides agree with the offer and any counter offers it then becomes a contract.

Now you are ready for Home Buying 106 – Inspections and Appraisals

More Reading

This entry was posted on Wednesday, June 20th, 2007 at 8:37 pm and is filed under Tucson Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.