Most people don't know what the true cost of purchasing a home in Arizona is.
Let's go over some of the costs of purchasing a home in AZ:
The first fee you are going to experience is right after your offer gets accepted on the home you are purchasing. Within 24 hours of getting a fully signed contract on the home, youâre purchasing you will have to put down an âEarnest Money Depositâ.
What is Earnest Money? Itâs a âGood Faithâ deposit showing the Seller that you are serious about purchasing the home and plan to move forward.
This fee is held in a local Title Company which is a âNeutralâ third party to the transaction. The cool part is, you get the money back as long as the transaction closes. That money will be applied toward your down payment, your closing costs or even, depending on your loan program, can be put back into your pocket at closing.
***IMPORTANT*** There are areas in the contract where you are protected even if you donât purchase the property. During certain situations, you will get your earnest money back. For example, during your âInspection Periodâ or during the âAppraisalâ process (all to be discussed in full detail in an email coming soon).
Your Earnest Money deposit is typically about 1% of the purchase price. If you are buying (just to make the math easy), a $200,000 home, your earnest deposit will be $2,000. There is no set amount, and I will do everything I can to get this amount as low as possible for you, but I want you to be prepared for the industry standard.
Again, your Earnest Money is due 24 hours after your offer is accepted and will be deducted from your account and placed with the Title Companyâs (the Neutral 3rd party that performs the closing here in Arizona) account, so you will need to be prepared for that.
Author:Joshua Smith Phone: 623-703-7445 Dated: February 27th 2017 Views: 1,332 About Joshua: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate team that believes in delivering world class service to our clients. We will do everything possible to ensure our clients real estate goals are met. Joshua Smith Real Estate Group has been rated the 30th top Real Estate Team in America by The Wall Street Journal and the only way to achieve this type of success is by providing extraordinary service to our clients. We look forward to helping you and your family accomplish your real estate goals!