1. Purchase Contract

A legally binding contract for the purchase and sale of a property that defines the agreed upon terms and conditions.  The purchase contract will include the sales price, items included in the sale, earnest money, and type of financing used by the buyer, just to name a few items.

2.  Counter Offer

After the Buyer has submitted an offer to purchase a home, the seller can either accept the Buyer's offer, reject the offer or send a counter offer back to the buyer.  Once the counter offer is received by the Buyer, the Buyer also has the right to accept, reject or counter back to the seller.  The counters can continue until the Buyer and Seller reach an agreement.

3.  HOA Addendum

The goal of the HOA Condominium/Planned Community Addendum (HOA Addendum) is to give the opportunity to the Seller to disclose the HOA dues, as well as any other HOA fees that will be charged, like the transfer fee or disclosure fee.  This Addendum is provided to the Buyer on the MLS and the Buyer fills out the last section.  This form becomes part of the Buyer's offer and the Buyer details who pays certain HOA fees.  The Seller can choose to counter back as who is paying the HOA fees.

4.  BINSR  

The Buyer has 10 days (unless agreed in writing to a different amount of days) to inspect the property.  Once the Buyer has completed all inspections, the Buyer submits the Buyer's Inspection Notice and Seller Response form (BINSR) to the Seller.  In simple terms, on this form the Buyer can reject the property, accept the property in the current condition, or ask the Seller to make repairs.  The Seller can choose to make all of the repairs, part of the repairs or no repairs at all.  The Seller returns the form letting the buyer know and the buyer can choose to either move forward or cancel the contract.   

5.  SPDS 

After an mutually accepted or executed Purchase Contract is created the Buyer begins inspecting the property.  The Seller should provide a Seller's Property Disclosure Statement (SPDS) along with an insurance claims history report to the Buyer to assist with the investigation of the home.  On the SPDS the Seller discloses all known material issues about the property and it's condition.  The Seller should disclose any known defects or damages.  The property's history and condition may affect the Buyer's decision to move forward with purchasing the house.

Of course your Realtor will be there ever step of the way, ready to prepare the necessary documents within the required amount of time, and ready to explain each document as you make your way through the process of purchasing a new home.

I have a book that is over 500 pages long, which is full of real estate terms! There are definitely a lot of terms to know when you buy or sell a home!  Of course, your Realtor will guide you through the process and explain any terms that are unfamiliar to you; however, here's a list of 5 real estate terms that are important to know:

Closing Costs

When a home is sold, both the Buyer and the Seller will have closing costs.  If the Buyer is getting a loan to purchase the house, there will be fees charged by the title company and their lender.  Common Buyer closing costs are the title escrow fee, title insurance, appraisal fee, home insurance & loan fees. Common Seller fees are the title escrow fee and title insurance.  In addition, real estate taxes are prorated to the buyer and seller depending on the close of escrow date.

Due-Diligence

An expressed or implied requirement stating that a person use good-faith efforts to perform obligations under a contract.  For example, the Buyer must show due diligence during the inspection period and inspect the home thoroughly within the specified time.

Contingencies

Items in a contract that require the completion of a certain act.  For example, the purchase contract is contingent upon the Buyer obtaining financing as well as the home appraising for the sales price.  

Escrow 

The process is where a third party (title company) holds money (such as earnest money) and documents until all terms and conditions are met and the sale closes.

Settlement Statement

A form created by the title company that shows the settlement fees of the transaction and who pays them, either the seller or the buyer.  This statement must be approved by all parties, including the buyer's lender, before closing.  This form is set to be replaced August 1st 2015, by the Closing Disclosure.

Step 1:  Qualifying for a Home

Speak to a mortgage professional about being pre-qualified or pre-approved for a new home loan.  Almost all sellers require this form when you submit an offer and sometimes it may take a few days to finish the pre-qualifying process.  For more information check out our blog:  Qualifying for a New Home.

Step 2:  Find a Home

Create a wants and needs list for your new home and try to be realistic.  Search for homes on our MLS search tool at TheWestValleyHomeTeam.com.  Save your favorites and schedule a day to look at homes.  For more information visit our blog:  Finding a New Home.

Step 3:  Make an Offer

It may take a few showing days before you find the right property for you.  Be ready to make an offer quickly in order to not miss out on the home.  Your Realtor will do a market analysis of the home and show you homes that are comparable and what they sold for or are currently listed at.  Based on that information decide an offer amount and your Realtor will write up the appropriate documents for you to sign.  For more information visit our blog:  Making an Offer on a House.

Step 4:  Inspect the Property & Appraised Value Determined

You have 10 days to inspect the property (unless otherwise agreed in the contract).  After inspections are complete you can request repairs from the seller, accept the property in the current condition or cancel the contract.  You will also be looking at the Seller Property Disclosure Statement, the insurance claims history report to determine the properties history.  Your lender will have an appraiser go out to the home to determine the appraised value.  For more information check out our blog:  Inspecting the Property.

Step 5:  Close on Your New Home

After the home inspection and appraisal hurdles are cleared your lender will complete the underwriting of your loan.  Once complete your lender will send the loan documents and instructions to title.  Title will coordinate a time for you to sign all of the necessary documents.  You will bring a certified check for any down payment or closing costs that apply.  After approval from your lender, your lender will wire the title company the funds and the title company can request the recordation at the county recorder.  Once confirmation of recording is received you are officially the owner and will be given the keys to your new home.  Check out more information on our blog:  Closing on Your New Home.

The AAR Buyer Advisory

A MUST-Read Document For Arizona Home Buyers!  

*Updated 9/10/25

Looking to purchase a house in Arizona?  The Arizona Association of Realtors (AAR) has a great tool for buyers, the Buyer Advisory.  It was designed to simplify the buying process for buyers.  The Advisory includes common documents that a buyer should review, physical conditions in the property that the buyer should investigate, and conditions affecting the surrounding area that the buyer should also investigate.

This is a must-read for all home buyers in Arizona! 

Here's a link to the AAR Buyer Advisory:

AAR Buyer Advisory