Buying A Home

When should I call the mortgage company?
This should be your first step for many reasons. See Mortgage Information for important facts that can save you time and MONEY!

How much cash will I have to come up with?
This depends on the house you purchase and the type of loan you use. You will generally have to come up with cash for a down-payment, your portion of the closing costs and a few out-of-pocket expenses. It is negotiable as to whether the buyer or seller pays for many of the closing fees. These items should be addressed during the negotiations and the contract will set forth who pays for what. Certain types of loans will cost the buyer more out-of-pocket. As a rule of thumb, the buyer’s portion of the closing costs usually range from 2-3% of the purchase price. But remember, this can vary drastically depending on the lender and the type of loan you use. Your lender should provide you with a "good faith estimate" to give you a better idea of what your loan will cost. When you find a property and make an offer, you will be required to pay a small amount of earnest money (usually about 1% of the purchase price). This is basically a deposit and will be applied toward your down-payment and/or closing costs. Depending on what your contract says, it is usually refundable under certain circumstances. For example, if you cannot obtain financing or if you find a material defect during your inspection period, you will usually be entitled to a complete refund of your earnest money. Other out-of-pocket expenses to the buyer often include the appraisal ($200-$400), credit report (usually $35) and home inspection, of course! Click here for Inspection Fees!

Should I use a Real Estate Agent?
Absolutely…it usually costs you nothing! As a buyer, your Real Estate Agent’s commission is usually paid by the seller. Therefore, it would be foolish not to have someone representing your interest. Let the Real Estate Agent do the work for you! Real estate transactions are complex and the contract establishes much more than just the purchase price and the closing date. It determines who pays for what, how long the inspection period is, under what circumstances the buyer is entitled to a refund of their earnest money, etc. The standard Arizona real estate contract contains 9 pages of legal gibberish, and once signed, both the buyer and the seller have a legal obligation to meet numerous deadlines. Also, Real Estate Agents have access to a variety of tools, such as MLS, that the general public does not. This allows them to search the entire county for properties that meet your criteria. This can save you from driving all over town to see houses that are NOT even close to what you want or can afford. Real Estate Agents also have keys that will allow them to enter virtually any property that is listed for sale. This lets you view the home without the pressure of the seller or seller’s agent being present. Many buyers think that if they do not use a Real Estate Agent, they can negotiate a lower price on the house they buy. This is a MYTH! If the buyer doesn’t have a Real Estate Agent, the selling agent gets to keep the entire commission instead of splitting it with the buyer’s agent. For this reason, SELLING AGENTS LOVE BUYERS WITHOUT REAL ESTATE AGENTS!

How do I choose a Real Estate Agent?
These days, Real Estate Agents are a dime a dozen. Most are very good at what they do, but a bad Real Estate Agent can cost you dearly. Talk to many and go with the one you trust. Ask friends and relatives if they can recommend somebody. Don’t be afraid to ask questions. Do NOT let anybody high-pressure you into signing anything you feel uncomfortable about. If you are not already working with a Real Estate Agent, click here for help finding your dream home with no pressures and no obligations!

I found a house I want to see. What’s next?
Call your Real Estate Agent. Many buyers make the mistake of contacting the Real Estate Agent that is selling the home. BE CAREFUL! While it is legal in Arizona for the selling agent to also represent the buyer (referred to as dual agency), this is usually NOT advantageous to the buyer. It is a conflict of interest because first and foremost, the selling agent has a duty to the seller. This duty includes selling their house for AS MUCH AS POSSIBLE. How can this same person truly negotiate the best deal for the buyer at the same time? While the seller generally pays the buyer’s agent commission, there are certain rules that must be followed. The buyer’s Real Estate Agent must accompany them to the property the FIRST time they see it. This goes for new homes as well as used homes. Most builders will require that you sign in before viewing models. If you show up with a Real Estate Agent to write a contract several weeks, or even months after visiting the models by yourself, the builder will usually refuse to pay your Real Estate Agent’s commission.

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Selling a home? Be sure to visit 'Selling Your Home' and fill out our 'Property Evaluation Form' for help determining the proper price.

Don't just take our word for it...see with your own eyes why you need a home inspection! Visit Common Defects and the Homer Page because a picture is worth 1,000 words!

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Buying a Home