Searching for a new home can be an exhausting and overwhelming experience, but it’s worth it when you find your dream property. After you make an offer on your potential new home, you will end up reading pages and pages of documents written in legalese can be tedious. Below are Things to Consider When Buying A Home.
This is your contract, and it dictates the terms of the sale. Outside of the purchase price and address of the property, there are a host of other items that should clearly be spelled out in the document. Here are some important things that should be addressed:
Unless you’re planning to tear the home down and build a new one, it’s imperative that you invest in a home inspection. Trained inspectors will determine if there are pests or lead paint, check the plumbing, electrical components and overall structure of the home. If such inspections reveal expensive or irreparable flaws, you should have a contingency clause that states that you’re permitted to retract any offer previously made. Inspections not only includes investigating the home status, but also the area, schools, amenities, commute time and any other material fact important to you. In a competitive market like the Phoenix market many buyers are waving inspections (not recommended) or shortening the inspection period.
Unless you’re able to purchase a home in cash, you’ll need to take out a mortgage to pay for your new property. It’s important in our current market to be well qualified. This means that you must see where you fit as far as the interest rate that’s being offered based on your credit score and current income. If you’re seeking a VA loan or an FHA loan or cash, this will be specified in the contract. If you’re able to pay for the property in full – this is the best situation in our current market climate because it’s a much better alternative for sellers—and makes your offer stand out.
Closing costs are common fees that are part of any typical real estate deal. These include escrow, recording, title search and notary fees, transfer tax and title insurance. The contract clearly stipulates which party pays for which expense. In a competitive market like to Phoenix area, many buyers are paying all or most of the costs associated with the purchase of a home to have a competitive edge in a multiple offer offer situation.
The closing date is when the conveyancing of ownership officially takes place. You and the seller will need to decide how long it will take to complete all the steps necessary to seal the transaction. This, of course, depends on many conditions. Is the buyer subject to a rental lease? Does the seller have a new home? Are the funds from the sale of the buyer’s current home going to be needed to purchase the home in question? Sometimes in our current climate, there are factors beyond the control of the lender, underwriter, attorneys and title company which can hold up proceedings, so this is something that needs to be planned for or adjusted as necessary. Many sellers fear putting their home on the market without having a home secured to move into. In these cases a post possession agreement of a rental lease back may be necessary especially if the seller is constructing a new home.
Arizona Association of Realtors® real estate contracts are standardized with many clauses and addendums to address different situations. These documents are proprietary to Realtors®. It’s important to utilize a great real estate agent and an experienced attorney if necessary (not required in Arizona) on your side can ensure that these crucial items are covered. Liz Dobbins will work hard in this competitive climate in Arizona. Call her today.