The Arizona Residential Purchase Contract includes several important dates that keep the sale of your home on track.  If the buyer or the seller does not adhere to these dates certain steps can be taken to cure the missed date.  Here's 5 important contract dates for sellers to be aware of:

1.  10 Days for Inspections 

The Buyer has 10 days from contract acceptance to inspect the property and request repairs from the Seller (unless otherwise noted in the purchase contract).  The Buyer can have multiple inspections during this time.  Typically it starts with a licensed home inspector and the inspector will let the buyer know if a specialist should come out to further inspect something.  For example if the home inspector noted something about the A/C unit, the inspector would recommend an A/C company to come out and examine it further.

2.  Loan Status Update 10 Days after contract acceptance

The Buyer must provide a Loan Status Update (LSR) from their lender to the Seller within 10 days after Contract acceptance.  This document will update the seller on the progress of the buyer's financing.

3.  5 Days after receiving BINSR with repair request  

After the Buyer has completed all inspections, the buyer will send a Buyer's Inspection Notice and Seller's Response, referred to as the BINSR, to the seller.  The Buyer can choose to accept the house in it's current condition with no repairs (Seller warranted items still need to be in working order), request that the Seller make specific repairs or cancel the contract.  If the Buyer is requesting repairs, the Seller should respond to the repair requests in writing.  No response is deemed refusal to repair by the Seller.  The Buyer can cancel the contract within 5 days of receiving the seller's response to repairing the requests if the seller chooses not to repair some or all items.

4.  Low appraised value

The buyer has 5 days after receiving an appraisal with an appraised value that is lower than the sales price to cancel the contract if the buyer cannot negotiate and come to terms with the seller.  

5.  3 Days prior to Close of Escrow:  repairs complete 

The Seller must correct the repairs agreed upon on the BINSR.  The Seller must complete the repairs in a workmanlike manner and provide receipts to the Buyer 3 days prior to the closing date.  

What happens if a Buyer or Seller misses a deadline?  It depends on the deadline and the terms in the contract, but typically a Cure Notice is issued giving the party 3 days to "Cure" or fix the missed deadline.  If the party does not complete this within 3 days, that party is in breach of the contract.  At that time the other party can cancel the contract. 

Your credit and your income are essential parts of financing a new home.  When you first speak with a lender you can review your credit score and history to see if there is anything that you need to do to help your purchasing power.  You can also find out how much down payment you will need as well as the closing costs involved in the purchase of a new home.  Together you can get a game plan together for making the financial process as smooth as possible.

Once you have your financing lined up and ready to go, it is crucial that your credit and your financial picture does not change during the process.  Your lender will recheck your credit just prior to your closing date and also verify that your employment status has not changed.  Buyers unknowingly put themselves in the position of losing their financing for their new home.  

Here are 10 things to avoid when buying a home:

1. Don't quit your job or change jobs. 
2. Don't change banks.  
3. Don't apply for new credit or have inquiries made into your credit.
4. Don't close any credit accounts unless your lender advises you to.  
5. Don't make large purchases on your credit and increase your debts.
6. Don't buy a car, boat, appliances, furniture, etc. on credit.
7. Don't miss a credit card or loan payment or make a late payment.
8. Don't make large cash deposits.
9. Don't move around money without a paper trail.
10. Don't spend the money you need for a down payment and closing costs. 

Remember, this advice applies up until the loan is completed and you have possession of the property.  Speak to your lender for more details.  

Keeping these Ten Commandments in mind can help you set yourself up for a successful road to homeownership.  Do you have a game plan together for buying a new home?  Schedule a free buyer consultation phone call to help you determine your best plan of action.  I look forward to connecting!

Is the property affected by a Superfund site or hazardous waste site?

During the sale of a property, it's the job of the seller to disclose any known material facts about a property to a buyer, in fact, it's required by law.  The Arizona Association of Realtors (AAR) created the Seller Property Disclosure Statement (SPDS) to assist sellers with disclosing these material facts to buyers.  One important item included on the SPDS is if the seller is "aware if the property is located within or subject to any of the following ordinances?" One of the choices is if any Superfund/ WQARF/ CERCLA ordinances exist.  Since there are numerous Superfund sites that exist throughout the Valley, including the West Valley, it's important that sellers and buyers investigate if the property is affected.  

The Arizona Department of Environmental Quality (ADEQ) has an interactive map that sellers and buyers can use to find Superfund sites, hazardous waste sites, and other valuable disclosure information.  The ADEQ map can be a great resource for both sellers and buyers to determine the location of any sites.  Since a seller could be unaware of such sites as well as unaware of the map, buyers should perform their due diligence and investigate the locations of these sites on their own.  In fact, on the AAR Buyer Advisory, buyers are advised to investigate the "numerous sites in Arizona where the soil and groundwater have been contaminated by improper disposal of contaminants."  The Buyer Advisory also suggests utilizing the ADEQ interactive map as well as visiting the website of the United States Environmental Protection Agency.

Click below to view the interactive ADEQ map:

Arizona Department of Environmental Quality Superfund Interactive eMap

The ADEQ also has individual maps based on areas that you can view by clicking below:

Arizona Department of Environmental Quality Superfund Area Maps

There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph.  Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.

Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.

Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA is known for 3.5% down payments. And FNMA and Freddie Mac have down payments as low as 3% and 5%.

There are gift provisions available for buyers who have an “angel” who would like to help them with their down payment.

There are ways to borrow against a person’s qualified retirement program for a down payment. It isn’t necessarily limited to the buyer but could include a relative. Interestingly, a son or daughter can borrow against their retirement to benefit their parents.

In some respects, having good credit and sufficient income is more important than the down payment. Don’t rely on “common knowledge.” Get expert advice and counsel to see if there is a way to advance your dream of owning a home.

If you haven’t heard of a CLUE report, it has nothing to do with the table game searching for a murderer. It is a report showing the insurance claims on your home and car for the past five to seven years.

This database is used by insurance companies to evaluate risks and determine rates. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. Rates can be increased not only due to legitimate claims but data entry errors also. Sometimes, simply asking a question without filing a claim can be logged as a claim.

For that reason, similar to verifying the accuracy of your credit report, it is important to check out the CLUE report on your home and car. The reports are free and there is a process for correcting mistakes.

An interesting and sometimes costly surprise occurs during the home buying process. The claim experience of the prior seller could impact the price of the premium of the new buyer. For that reason, you can ask for a copy of the CLUE report on the home you’re interested in buying prior to writing a contract.

When buying a home in Arizona, a home seller must provide a 5-year insurance claims history report to the buyer.  Often times this is mistakenly referred to as the "CLUE" report.  

Goodyear AZ Market Statistics

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Litchfield Park AZ Market Statistics

These statistics are updated once a month as soon as the data is available which is typically the 8th, unless it's a holiday. If the next month hasn't been updated simply check back.

If you have any questions about the statistics don't hesitate to contact us. You can click the envelope in the top right hand corner of the website to send an email or give us a call. We'd love to hear from you!