Making an offer in Arizona.
Once you are pre-approved and have found the house, Chris writes the offer, walks you through every term, and sends it for e-signature. After it is accepted you wire earnest money to the title company, usually within a day. Expect three costs early on: earnest money, the inspection, and the appraisal.
How do you make an offer on a house in Arizona?
Your agent prepares the Arizona residential purchase contract with your price, financing, close of escrow date, earnest money, and any requests such as seller concessions. Chris reviews each line with you, sends it for e-signature, and presents it to the listing agent with your pre-approval letter.
Before that, Chris emails a pre-offer package so nothing is a surprise: the Buyer Advisory, the agency disclosure, the market conditions advisory, the HOA addendum if there is one, and the home inspection notice reminding you of your 10 calendar days.
What goes into the offer
- Purchase price and close of escrow date
- Loan type, down payment, pre-approval letter
- Earnest money amount
- Seller concessions toward closing costs
- Any other terms you and Chris agree on
It’s offer time.
Chris explains what happens once you have your pre-approval and have picked the house: the pre-offer documents you have already reviewed, the offer itself, and the e-sign process.
What is earnest money, and how much is it in Arizona?
Earnest money is the good-faith deposit you make once the buyer and seller agree to the contract, and the amount is negotiable. Chris has generally seen it range from about $500 to $5,000 depending on price, and his rule of thumb is about $1,000 on homes under $400,000. In another video he describes it as up to 1% to 2% of the price.
It is wired to the title company, usually within 24 hours of acceptance, and comes back to you as a credit at closing toward your down payment or closing costs.
Wire-fraud warning: always call the title company at a number you already know to verify wiring instructions before sending money. Chris repeats this because wire fraud is real.
What money is due in the first 10 days after the offer is accepted?
Three things, in Chris’s experience: the earnest money (due within about 24 hours of acceptance), the home inspection fee (typically about $350 to $450 depending on size and location, paid by the buyer), and the appraisal fee.
Chris does not order the appraisal until the inspection is done and repairs are agreed, so that cost may land after day 10 or 15.
Due early in escrow
- Earnest money, wired to title
- Home inspection, paid by the buyer
- Appraisal, ordered after repairs are agreed
- All amounts depend on the home and the loan
What are seller concessions?
Seller concessions are funds the seller agrees to pay toward the buyer’s closing costs. Your lender decides what is allowed, and the limits differ for FHA, VA, and conventional loans. Chris often asks for a little more than he expects to need, so there is room to negotiate.
Every dollar of approved concessions is a dollar you do not have to bring to closing.
What happens when a seller gets multiple offers?
The listing agent lines up every offer side by side. When Chris represents a seller, he compares price, close of escrow, terms that help or hurt, earnest money, the type of financing, and the down payment. That is why a clean offer with a strong pre-approval stands out, even when it is not the highest price.
More on writing a strong offer.
Click any video to play it here.
Your questions, answered.
How much earnest money is normal in Arizona?
It is negotiable. Chris has generally seen roughly $500 to $5,000 depending on price; his rule of thumb is about $1,000 on homes under $400,000.
When is earnest money due in Arizona?
Typically within about 24 hours of contract acceptance, wired to the title company. Chris notes that if acceptance falls on a Friday, it is usually due Monday.
Do I get my earnest money back?
At closing, your earnest money is credited toward your down payment or closing costs. Whether it is refundable if you cancel depends on the contract terms and timing, so ask your agent.
Who pays for the home inspection in Arizona?
The buyer. Chris says it typically costs about $350 to $450 depending on the size and location of the home.
Can the seller pay my closing costs?
Often, through seller concessions negotiated in the offer. Your lender sets the limit based on your loan type.
Keep learning.
Mortgage Pre-Approval in Arizona
What a pre-approval is, the documents a lender asks for, and what not to do once you are approved.
Read the guideStep 3 · Due diligenceThe Arizona Home Inspection Period
The 10-day inspection period, what the inspector checks, and how repair requests (the BINSR) work.
Read the guidePaperworkArizona Buyer Documents
The buyer-broker agreement, Buyer Advisory, agency disclosure, and other forms you sign before an offer.
Read the guideStep 4 · ClosingClosing on a Home in Arizona
Appraisal, title and escrow, closing costs, wire-fraud safety, the final walkthrough, and signing day.
Read the guideAsk The Real Estate Guy.
Tell Chris where you are in the process and what you are trying to accomplish. He will reply with a practical next step for your Arizona purchase or sale.
- Chris Dunham, The Real Estate Guy™ · Brokers HUB Realty
- Buyers, sellers & investors across the Phoenix metro and Pinal County
- Email: [email protected]
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