Offer Guidance & Contract Education

What Is It?

The Arizona Association of Realtors (AAR) Residential Resale Real Estate Purchase Contract is the standard form used for most home purchases in Arizona. It outlines the terms of the sale including price, financing, contingencies, and timelines.

Key Sections to Understand

• Purchase price and earnest money deposit amount
• Financing contingency — your right to cancel if you can't get a loan
• Inspection period — typically 10 days to complete inspections
• Close of escrow date — when the sale is finalized
• Seller concessions — credits toward your closing costs
• Personal property inclusions/exclusions (appliances, fixtures)

Common Mistakes

Waiving the inspection contingency to make your offer more competitive can be risky. Missing deadlines in the contract can cause you to lose your earnest money. Always track your contract timelines carefully.

What Is It?

The SPDS is a detailed questionnaire that sellers complete to disclose known issues with the property. Arizona law requires sellers to disclose material facts that could affect the property's value or desirability.

What to Look For

• Previous water damage, flooding, or mold issues
• Roof age and any known leaks
• HVAC system age and condition
• Pest history (termites are common in Arizona)
• HOA violations or pending assessments
• Neighborhood nuisances or planned developments
• Previous insurance claims

Red Flags

Pay attention to vague answers like "unknown" on items the seller should reasonably know about. If the SPDS reveals significant issues, discuss them with your agent and inspector before proceeding.

What Is It?

The BINSR is the formal document you use to request repairs or credits after your home inspection. It's one of the most important negotiation tools in the Arizona home buying process.

Your Options

• Accept the property in its current condition (no repairs requested)
• Request specific repairs be completed before closing
• Request a credit toward closing costs in lieu of repairs
• Cancel the contract within the inspection period (with earnest money returned)

Strategy Tips

Focus on significant issues — structural, safety, and major systems (roof, HVAC, plumbing, electrical). Cosmetic issues are generally not worth negotiating. Your agent can help you prioritize what to request.

What Is It?

Following the 2024 NAR settlement, buyers must sign a written buyer-broker agreement before touring homes with an agent. This agreement outlines the agent's services, compensation, and the duration of the relationship.

Key Terms to Understand

• Duration — how long the agreement lasts (negotiate a shorter term if unsure)
• Compensation — how much the agent will be paid and by whom
• Exclusivity — whether you can work with other agents simultaneously
• Termination — how either party can end the agreement
• Services provided — what the agent will do for you

What Changed with NAR Settlement

Previously, buyer agent compensation was typically offered by the seller through the MLS. Now, compensation must be negotiated directly. You can still ask the seller to cover your agent's fee as part of your offer, but it's no longer automatic.