6 Steps to Closing on Your New Home in Arizona
Offer Accepted, Now What?
You’ve found the perfect home and your offer has been accepted by the seller. So, what’s next? If you have partnered with a professional and knowledgeable REALTOR® you have been given a thorough review of what’s to come and you feel prepared to take the next step. This will be a nice refresher for you!
If you haven’t been educated on the process, however, we hope you find this article informative as you embark on your homeownership journey. We encourage you to read through, ask questions, and learn from our extensive experience in the field.
1. Opening Escrow
First things first, what’s an ‘escrow’? After you offer is accepted, you will need to make an earnest money deposit. This is different from your down payment and is a good faith deposit that shows your intent to purchase the home. These funds do not go directly to the seller. Instead, they’re placed in an account with an escrow officer.
An escrow officer is a neutral third party that collects and distributes funds, financial documents, and deeds on behalf of the buyer and seller until all conditions of the contract are met. Your escrow officer protects both, you and the seller, from fraud or non-payment issues.
All you have to do to open escrow once your offer has been accepted by the seller, is make your earnest money deposit as soon as possible. Your escrow officer will contact you with instructions on how to make your deposit. That’s it! The rest will be handled by your REALTOR®.
2. Inspections
In Arizona, the Residential Resale Real Estate Purchase provides the buyer with 10 calendar days to inspect the property after the contract acceptance. However, you and your representative may have agreed to a different time period. Be sure to know what your contract says!
Whether you are buying your first home or your tenth, we recommend you hire professionals to do a home inspection, a roof inspection, and a termite and pest inspection. If your home has a pool, septic tank, or any other special features, be sure to get a specific inspection for those as well.
If you’re working with us, then you know we got you covered and all you need to do is sit back and wait for the reports to come back. Otherwise, check with your REALTOR® to ensure inspections are coordinated accordingly and that the reports will come back in a timely fashion.
3. Asking for Repairs
Inspections are done and you have all the reports on hand. Now you will work with your REALTOR® to decide what items will be requested for repair by the seller, if any. It’s important to note that the seller is not required to perform any repairs whatsoever, so partnering with an expert negotiator is crucial at this stage.
Once you have determined what you'd like to request from the seller, your REALTOR® will draft a Buyer's Inspection Notice and Seller's Response, often referred to as a BINSR or repairs request. We don't recommend you ask for any minor repairs or cosmetic items. Ask your REALTOR® for their opinion and rely on their expertise to guide you through the process. Your REALTOR® should be able to make recommendations and provide insights. Ultimately though, the decision is yours.
4. Appraisal
An appraisal is an estimate of the value of the subject property (your new home) by a licensed appraiser. Most lenders require a home appraisal to ensure you’re not taking out a loan for more money than the home is worth. The appraisal will take place at a scheduled date, and the report will follow usually about a week after the appraiser does their inspection of the home.
You’ll want the appraisal to come back either at the purchase price as established by your purchase contract, or higher. In the event the appraisal comes back lower though, don’t panic! Again, your REALTOR® can use their negotiation skills to talk to the seller’s agent and come up with a solution that works for everyone.
5. Pre-Closing Walkthrough
Before you close on the sale of your new home, you and your REALTOR® will do a final inspection called a Pre-Closing or Final Walkthrough. During this visual inspection, you will walk the home to ensure it’s in the same condition as it was when you first saw it. If the seller agreed to do any repairs, then this is also a time for you and your agent to ensure all repairs were done according to the contract. If there were any repairs that you cannot visually inspect, such as the roof, then your agent should make sure a receipt is provided to you prior to signing your closing documents.
6. Signing and Closing
Signing day is here and you’re super excited! Though this is a memorable and important moment, it is worth mentioning that your signing date is not necessarily the day you receive the keys to your new home. In Arizona, you receive your keys on the closing date and only after the deed has been recorded with the county. Don’t worry, there’s not much you need to do on that end. Your escrow officer will ensure the county has everything they need to make it happen. Once it’s done, either your escrow officer or your agent will give you a call to break the great news.
Hopefully you’ve made it all the way through to the finish line and you have the keys to your new home on hand! Whether you live in Tucson, or are planning on moving to Southern Arizona, we’d be honored to answer your questions and give you all the tools you need to make an informed decision. Click here to schedule a free private consultation.