The Arizona home buying process, step by step

Most Arizona home purchases use the Residential Resale Real Estate Purchase Contract published by the Arizona REALTORS® (AAR). That form sets the order of events and most of the deadlines below. Two things to know up front:

• Days are calendar days. Weekends and holidays count unless the contract says otherwise.
• The contract also serves as escrow instructions. A title and escrow company, acting as a neutral third party, follows it to close the sale.

Default deadlines can be changed by agreement, and forms are updated from time to time, so always read the version you sign. This guide explains the process in general terms. It isn't legal or lending advice; for those questions, talk with an Arizona real estate attorney or your lender.

Before touring homes with a REALTOR®, you'll sign a written buyer-broker agreement. This became standard practice nationwide in 2024, and Arizona REALTORS® forms reflect it.

There are two common AAR forms:

• Buyer-Broker Agreement to Show Property. A short form used for touring. It doesn't tie you to one broker; you can sign one with more than one broker.
• Buyer-Broker Employment Agreement. A fuller agreement that names one broker to represent you through the purchase and spells out duties and terms.

Either way, broker compensation is not set by law. It's negotiated between you and the broker and must be stated as a specific, ascertainable amount. Read the agreement before you sign and ask questions about anything that isn't clear.

Teigh Wade, REALTOR® with HomeSmart Elite Group, HomeSmart, offers mobile buyer consultations: she comes to you to explain the agreement, the process and what to expect.

A pre-approval letter from a lender shows sellers you've been reviewed for a loan amount.

• Gather pay stubs, tax returns, bank statements and ID.
• Ask about loan types, down payment options and estimated closing costs.
• Ask what your payment would include: principal, interest, property taxes, homeowner's insurance and any HOA dues.

Teigh refers buyers to lenders in her network. She doesn't set or promise interest rates; your lender does that. Once you have a budget, you can start looking with the home search. First-time buyer? See first-time home buyers.

When you find the right home, your agent prepares an offer on the AAR resale contract. It covers:

• Purchase price and how you'll pay (loan type, down payment).
• Earnest money amount and form.
• Close of escrow date.
• Seller concessions, if any, and which items stay with the house.
• Addenda, such as an HOA addendum, a solar addendum or a counter offer.

The seller can accept, reject or counter. The contract becomes binding once the seller's signed acceptance is delivered by the deadline written in the offer. That date, contract acceptance, starts most of the clocks that follow.

Earnest money is a good-faith deposit. After acceptance, it's deposited with the escrow company (or, less often, a broker's trust account), and it's applied toward your purchase at closing.

Whether earnest money is refundable depends on the contract. For example, if you cancel properly within the inspection period, or under the appraisal contingency, the contract generally provides for its return. If a buyer breaches the contract and doesn't cure after notice, the earnest money can be subject to forfeiture. Know your deadlines.

Escrow also orders the title commitment, which shows who owns the property, the liens and easements recorded against it, and what the title insurer won't cover. Under the AAR contract, you have five days after receiving the title commitment to disapprove items.

Wire fraud is a real risk in real estate. Never wire money based on emailed instructions alone. Call the escrow officer at a number you've verified independently before sending funds.

The Seller's Property Disclosure Statement (SPDS) is the seller's written disclosure of what they know about the home: ownership, HOA, utilities, the roof, plumbing, pool, solar, past repairs, permits and environmental issues.

• The seller delivers the SPDS within three days after contract acceptance.
• The seller provides a five-year insurance claims history (or for the time they've owned the home, if shorter) within five days.
• You have until the end of the inspection period, or five days after receiving the document, whichever is later, to disapprove.

Read it closely. Items mentioned in the SPDS are good leads for your inspector.

The inspection period is your due-diligence window. Under the AAR contract it's ten days after contract acceptance, unless the parties write in a different number.

During this time you can:

• Hire a home inspector, and specialists for the roof, pool, HVAC, sewer line or termites (wood-destroying insects) as needed.
• Get homeowner's insurance quotes and confirm coverage is available.
• Check the flood zone designation.
• Review pool barrier rules, if the home has a pool. The seller provides the Arizona Department of Health Services pool notice, and the buyer is responsible for checking state, county and city barrier requirements.
• Research anything else that matters to you, such as square footage, zoning, nearby planned development or commute routes.

Finish every inspection before you send your repair request. The contract expects all disapproved items in one notice.

The Buyer's Inspection Notice and Seller's Response (BINSR) is the AAR form you use before the inspection period ends. On it, you choose one of three paths:

1. Accept the premises as they are.
2. Cancel the contract (earnest money is generally returned when you cancel properly within the inspection period).
3. List items you disapprove of and give the seller a chance to correct them.

If you list items, the seller has five days to respond. The seller may agree, refuse, or offer an alternative such as a credit. A seller who doesn't respond in time is treated as refusing. If the seller doesn't agree to everything, you have five days to cancel or accept the seller's response. If you don't cancel in that window, you're agreeing to close without the items the seller declined. Verbal conversations don't extend these deadlines; only a signed written agreement does.

If you're financing, your lender orders an appraisal to confirm the home's value supports the loan.

• Appraisal contingency. If the property doesn't appraise for at least the purchase price, the AAR contract gives you five days after notice of the appraised value to cancel and have earnest money returned. If you don't cancel in time, the contingency is generally waived. Buyers and sellers may also renegotiate the price.
• Loan application. You provide basic information to your lender and authorize a credit check within three days of acceptance.
• Loan Status Update (LSU). Your lender completes the AAR Loan Status Update form, which goes to the seller within ten days after contract acceptance. Updated forms may follow as the loan progresses.
• Stay steady. Avoid new debt, large unexplained deposits or job changes during escrow without talking to your lender first.

Many Arizona homes are in a planned community or condominium association. When there's an HOA, escrow notifies the association of the sale. Under state law, an association with 50 or more units delivers its resale disclosure package within ten days after receiving notice; in smaller associations, the seller provides it.

The package includes the CC&Rs, bylaws and rules, current budget, dues and special assessments, recent board minutes, the reserve study if there is one, any pending lawsuits, and any unresolved violations on the home. Read it with these questions in mind:

• What are the dues, and what do they cover?
• Are there rules on parking, rentals, exterior changes, solar or pets that affect your plans?
• Are any special assessments planned?
• Are there transfer or capital fees due at closing?

If something in the documents is a concern, raise it with your agent right away so it can be addressed within your contract deadlines.

Before closing, you walk through the home to confirm agreed repairs were made and the property is in substantially the same condition as when the contract was accepted. The seller provides receipts for agreed repairs at least three days before close of escrow, and the seller keeps all utilities on through closing so you can test everything.

Arizona REALTORS® recommends doing the walkthrough at least three days before the scheduled closing so any problem can be addressed. Run faucets, test the AC, open the garage door, check appliances and look at the items listed on the BINSR. Skipping an allowed walkthrough can limit your options if you find a problem later.

A few days before closing, you sign your loan and closing documents with the escrow officer or a mobile notary. Federal rules require your lender to give you a Closing Disclosure at least three business days before you sign the loan, so you can compare it with your Loan Estimate.

Deeds and vesting

The AAR resale contract calls for the seller to convey title by warranty deed. Other Arizona deed types you may hear about include the special warranty deed, the quitclaim deed, the disclaimer deed (used when a spouse disclaims an interest) and the beneficiary deed, which lets an owner name who receives the property at death. You'll also choose how to hold title, called vesting. Vesting has legal and tax effects, so ask an attorney or tax professional; escrow officers and agents can't advise you on that choice.

Before closing, you'll wire or deliver your closing funds to escrow. Confirm the wiring instructions by phone at a verified number.

On closing day, the lender funds the loan, escrow confirms all conditions are met, and the deed and deed of trust are sent to the county recorder. For most West Valley homes, that's the Maricopa County Recorder.

Close of escrow happens when the deed is recorded. Under the standard contract, that's also when you get possession and keys, unless you agreed otherwise in writing. Then it's time to set up utilities in your name and move in.

Ready to start? Call or text Teigh at 480-550-2871, or learn more about buying a home with Teigh.