Today I’ve 3 outstanding tips for purchasing real estate in Tucson, AZ. I’m not going to tell you how to fleece your realtor (that would go against me, too!), but these 3 little tips can make yours and your realtors life just that little bit easier. And who knows, you make your realtors life easier, and just maybe that cosmic karma cycle will repay you at some point.
Okay, here we go.#1: Actually Writing an Offer
Seems simple, but offers are often written at the wrong time, on the wrong paper, then given to the wrong person. You could write an offer on a post-it note, and stick to your realtors door, and it might get done – but why mess around when your real estate is at stake?
There is a difference in the type of contract you’ll see, depending on the real estate you’re buying. New build contracts, i.e. you’re buying directly from the builder, will usually be written on a builder specific, specially written contract. This contract will usually favor the builder, but your realtor and solicitor can help you with this.
A resale contract, i.e. purchasing a house from another individual, will likely be written on a purchase contract, pre-created by the Arizona Association of Realtors. The AAR have your real estate needs in mind, and will provide equal representation between you, your realtor, and your purchaser. After all, we’re all equal.
Here, take a look at a sample Purchase Contract to see what information is needed.
It’s a Contract
Remember, you are signing a legally binding document. When you write your offer, the document is just that: an offer, with terms, conditions, stated price, and more. Once this is given to a seller, and they sign it, it becomes a binding document, signifying the agreement of the sale between both parties.#2: Understand Negotiations
You don’t have to be Donald Trump to do well at the negotiation table. Far from it. All you need is an understanding of the system works, patience, and some general politeness.
You made an offer. It was a massive document, you didn’t really enjoy writing it, but once submitted you were buoyant – your real estate will finally be notarized as your own. That’s until you received a counter-offer.
A counter-offer can alter any details the seller is unhappy with. This can range from the outright purchase price, down to individual clauses in the purchase document. Regardless, if you sign the counter-offer this then becomes the legally binding document, so ensure you thoroughly explore each and every altered detail.
Counter the Counter
You don’t have to accept the counter-offer. If you don’t agree with the new terms and conditions, you can send back your own, reworked counter counter-offer. Just be sure to keep an itemized list of each article that changes. If your negotiations are prolonged with many counter-offers, you can easily lose track of each change. Stay ahead of the game by tracking each and every change.#3: Strengthen Your Hand
My last tip is a short one. You can significantly strengthen your hand in negotiations with a pre-approved mortgage. I completely understand that this isn’t readily available for everyone, but if you can, do it.
A pre-approved mortgage application shows the seller how serious you are about purchasing their real estate – you’ve seen fit to explore the financial implications of purchasing real estate, both for you and your seller, and you’ll have little issue completing the transaction should you come to an agreement.
Remember that to your seller, you are effectively Joe Bloggs, walking up off the street, waving a piece of paper declaring your intentions to appear with hundreds of thousands of dollars. Whilst this is a regular system, consider the strength in appearance of the first and second scenario. The first one takes the prize, almost every time.
I hope these 3 quick tips have helped you a little. If you need more information, give me a call, or email, and we can take things further.