Six Steps to Home Ownership
Step 4: The Offer
Once you find the perfect home we’ll make a competitive offer. We will help to negotiate:
The Arizona Purchase Contract is ten pages long. We are experienced at writing contracts so that your best interests are protected.
- Price – we’ll determine fair market value and offer what you feel to be a fair price for the home.
- Terms – we’ll determine factors we’d like such as buyer or seller paid home warranty, buyer or seller paid appraisal, pest inspections and other applicable terms.
- Inclusions – the seller may have personal property you’d like to include in the sale, such as a washer or dryer or refrigerator. For other items you may consider a separate bill of sale, independent of the home purchase.
- Possession – will you take possession of the property at close of escrow? Often the seller requires the successful close on their home to purchase another and will ask to remain in the property for a day or two after close. Details should be worked out and included in the contract.
- Contingencies – other terms or conditions that may affect the sale, such as the sale of another home, a loan application, or specific inspection phases.
How do you know what to offer? When you decide - this is it! - it is important to get a comparative market analysis. Look at similar properties that are or have recently been on the market, just like an appraiser will do. Sellers can ask whatever price they want - you need to decide what the home is actually worth - and worth to you.
Step 5 - From Offer to Close
Typically, you will compare elements such as square footage, age of the home, number of bedrooms and baths, size of major rooms and amenities such as fireplaces and swimming pools. You may also review property taxes and school districts, and how long each property has been or was on the market. Using all this information, you can come up with a probable market value for the home you’re interested in.
It's also important to take into account the market and competition. If is a strong buyers’ or sellers’ market? In a buyers’ market or a neutral market, you may have more leeway on some of the elements of your offer (price being just one). In a sellers’ market, where houses can become the objects of bidding wars and end up selling well above their asking price, your options may be rather more limited. Other factors will come into play in determining your offer price and our job is to help you make the best qualified offer for your needs. Please allow us to help you navitgate this challenging step of the process.
Some Useful Documents
Sample Arizona Residential Purchase Contract
Arizona Assoc of Realtors® Buyer's Advisory