If you’ve been considering purchasing a home, vacation home or rental property in Lake Havasu City, Arizona the time is now, as the prices are low and there are some amazing properties on the market. Don’t be intimated by the purchase process. Instead, be prepared.

Find a Lender

          Before you start shopping, contact a lender to determine what you can afford to pay, and if you are in the financial position to purchase real estate at this time. You may discover you need to boost your credit scores or build up your saving’s account. We recommend using a local lender, familiar with the Havasu market and licensed to do business in Arizona. One way to locate a lender is to visit the Lake Havasu Association of Realtor’s website, and click on the “Affiliate” link.

Hire a Realtor

          Not all real estate licensees are Realtors. Licensees that belong to the National Association of Realtors are Realtors. Hiring a Realtor normally cost you nothing, as the seller’s agent typically pays the buyer’s agent. If you intend to look at properties listed by Realtors, you might as well hire your own agent, to work on your behalf. Calling the listing agent directly won’t save you money. Let the Realtor know what you are looking for, and let them do the work. They have the resources to locate the property that best fits your criteria.

Make an Offer

          When making an offer, the Realtor will help you complete a purchase contract. Local Realtors use a standard purchase contract approved by the Arizona Association of Realtors. Normally the buyer selects the title and escrow company, yet in some situations the seller decides. You’ll also be asked to put up an earnest deposit, which should only be deposited after the seller accepts your offer. The check for the earnest deposit is normally made out to the title company, not to the agent or seller. During the negotiation process, another buyer can swoop in and purchase the property. Just because you and the seller are countering back and forth, trying to agree on an offer, does not mean the seller can’t or won’t accept another offer before finalizing yours.

Inspection Period

Once the buyer and seller accept the purchase contract, the clock starts ticking for the inspection period. The standard inspection period in the Arizona purchase contract is ten days, yet the buyer and seller has the option of altering that during the negotiation process. During this time, you can hire a home inspector to check out the property. You should also verify with an insurance company that the property is insurable. Before the inspection period ends, instruct your Realtor to make any repair requests in writing to the seller. If you wait until after your inspection period ends, you forfeit the right to request a repair. For more on the home inspection, click here.

Home Appraisal

When purchasing real estate using a loan, the lender will typically require you pay for an appraisal on the property. This is to prove the property is worth what you are paying. If the appraisal comes in low, below your purchase price, you have the option (under the standard Arizona purchase contract) to cancel the offer. Yet, you will still be obligated to pay for the appraisal. If you still want to purchase the property, you can either put in additional cash, or negotiate with the seller to lower the price.

Insurance and Utilities

Don’t forget to arrange for your insurance policy to be in place when title transfers to you. Another item on the to do list, contact all the utility companies, to arrange for service.

Walk Through

Before escrow closes, you can arrange with your Realtor to do a final walk through. This is to verify the property is in the same condition as when purchased, or that the agreed upon repairs were actually made.