In Arizona, buying/selling real estate is a relatively simple process, especially compared to some eastern states. The major simplifying factors in Arizona are:
- the use of title insurance, rather than exhaustive search of the transaction history of the property
- use of escrow companies to facilitate the transactions
- customary use of the ARMLS (Arizona Regional Multiple List System) Contract in re-sale transactions, which is designed to be fair and neutral between buyer and seller, and to produce timely closings
Despite the relative simplicity, dedicated professionals are truly essential because difficulties are likely, to some extent, in every transaction. Some of the critical factors are:
- careful documentation of the purchase offer and negotiations
- fulfillment of the agreement by both sides
- financing tailored to your specific needs
- conveyance of good title
- a properly functioning residence, in all respects
- timely performance
But how do you, as a buyer, be sure that these things happen?
The sections below provides some of the answers.
"Musts" for every Arizona Real Estate Purchase - A short-but-important list.
- Select a REALTOR® to represent you exclusively for the purchase of your home - the highest priced item you own.
- Communicate early and often with your agent.
- Get pre-qualified before you start looking. This is a major plus to a seller considering your offer, and could save time and frustration.
For your purchase offer:
- understand it before you sign it
- address all issues in first offer
- list all personal property you expect to stay. If in doubt, list it.
- Get copies of and read the CC&R's, plus HOA financials and newsletters.
- For new construction, the Public Report is also a very important document.
- Do your final shopping for a loan commitment with your purchase agreement in-hand. Lenders tend to be more specific then. Get the terms & commitment in writing.
Getting What You Thought You Bought
and NOT Buying Problems
Professional Home Inspections
Even for a brand new home, Buyers should use a professional inspection service to thoroughly assess the condition of the property. The cost ranges up from about $175, depending on the size of the home and amenities (pools, spas, & some other items involve minor additional cost). The inspections are comprehensive, covering the entire structure and adjacent drainage. Where problems with major elements are apparent, such as a roof or pool, additional specialized inspections should be done. The cost is minor compared to the investment being made. The inspection company should be a certified member of the American Society of Home Inspectors®, and be properly bonded and insured. To avoid any possibility of conflicts, such inspection companies do not make repairs. Their service is advisory only.
Third-Party Home Warranty
These are simply annual insurance policies for repairs that may be required by the appliances and systems of a home, such as plumbing and electrical. The items covered must be in good working order when the Home Warranty is purchased. If a covered item ceases to work properly during the policy period, the warranty company is called and a repair company is sent to fix the problem for a flat fee - typically $35 to $50. The fee is the same no matter what repairs are needed - but for covered items only ... read and understand what is, and is not, covered. Especially for the first year of ownership of a home with older systems and appliances, these warranties are a prudent purchase. The annual warranty cost ranges up from about $350, depending on the systems included - pools, spas, solar heating equipment, etc, involve added cost. Such warranties do not cover the structural components of the home - such as a roof – although roof coverage is optional with at least one company.
Lead-based Paint
High concentrations of lead in the body can cause major health problems, particularly in small children as they grow. Such concentrations are usually created by eating or breathing dust from lead-based paint. It has been illegal in the USA to make paint containing lead beginning in 1978. 75% of the homes built in 1977 and prior used paint with lead. Buyers who are considering the purchase of a property built in 1977 or prior should have the property tested for lead, especially if small children are to live there. We can provide you with a HUD pamphlet that gives more details.
Superfund Areas
These are areas designated by the EPA of the US Government or the State of Arizona as possibly having contaminated soil and/or groundwater, which is more than 100 feet underground. Contamination was caused years ago by improper use and/or disposal of toxic chemicals in manufacturing operations. The metro-Phoenix area has several such areas, the most serious of which is located near Indian Bend Wash south of Chaparral in Scottsdale. Contaminated groundwater is NOT likely to affect the lives of people anywhere in metro-Phoenix as long as the contaminants are not allowed to get into municipal drinking water. Most drinking water for metro-Phoenix presently comes from Lake Roosevelt, which is 80+ miles east of these problems. Wells used for drinking water are continuously tested and are not used if any sort of dangerous contaminants are detected. The City of Scottsdale sponsored appraisals and studies of properties in Superfund areas. Appreciation inside the areas was at least equal to comparable properties outside.
Flood Zones
Some areas in metro-Phoenix are subject to flooding - very rarely, of course. In most all areas, the damage is from flowing water during or immediately after heavy storms, rather than from standing water over a length of time. The following governmental agencies will determine the flood hazard potential for property within their boundaries on request:
Phoenix – 602-262-4960
Scottsdale – 480-312-7696
Maricopa County – 602-506-150
Other Great Sources of Guidance
| Buyer Advisory - AZ Assn of Realtors | Many brokers require their sales agents to deliver and get a receipt for this document from every Buyer client. It will be e-mailed to you from the AAR website. |
Buyer's Agent - How it works in Arizona |
What a "pro" agent should do for you as a buyer. |
