Co-Founder, Ben Gottlieb, put together some helpful hints for you to consider if you are selling, or buying, a property in today’s times.
Q: Currently, Arizona is in a ‘hot” real estate market with multiple offers on a property leading to a potentially longer process for some. What are some legal items I need to consider when getting into a purchase agreement on a property during this time?
A: 1) It is, in many cases, taking longer to obtain appraisals. Therefore, if you are financing a home you are buying, you should account for potential delays that may occur during escrow with respect to obtaining the appraisal.
- Low inventory is causing bidding wars in many instances and buyers are sometimes willing to offer “extra” in order to lock in the contract. Many appraisals are then coming back “short” – meaning appraisers are estimating the value of homes and the appraised value is less than the contract price. Under the standard purchase contract in Arizona, when this occurs, the parties are generally free to negotiate a new price, or the buyer can decide to get back his or her earnest money.
- Make sure as the buyer you hire a well-qualified inspector. A good inspection report can identify issues that can save a lot of heartache (and lawyer fees) later. Also, make sure as the buyer you carefully review the Seller Property Disclosure Statement, and ask any necessary follow-up questions.
- After you receive your inspection report, make sure you review it carefully, and timely request that the seller repair the items most important to you.
- It is important to hire an experienced realtor you trust, who can help answer important questions, assist with negotiation strategy, and provide advice as to how to proceed through all aspects of the transaction.