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Before you spend much time looking at property, if you are going to need a loan you should determine how much you are qualified for. Looking at higher priced properties will only lead to dissatisfaction later, if you should find it necessary to lower your price range. Here's a place you can go to get a preliminary qualification in minutes:
Even better is to get fully pre-approved with a solid lender. This means your maximum price point will be determined, and all that is necessary is to fill in the address and exact amount of the property you select. This will insure that you don't default on your purchase contract by failing to complete the loan package within the time frame allotted.
Don't get a new credit card, or make a significant purchase between the time you apply for your loan and the closing.
To check your credit:
Determine What You Need
First, list what you absolutely NEED in your home/property. For example if you have young children, a play yard may be non-negotiable for you. Your list may contain one to four items. When we first shopped for a home here, we thought we needed a family room, four bedrooms, and a single level home. After lots of looking (our poor REALTOR), we discovered that the single level was not a need, just a want - the other two items were still needs.
Also, understand why you are leaving your current residence, and what you are looking for from Prescott. Then don't settle for less, in that respect.
Then Determine What You Want
The Prescott tri-city area offers a wide range of topography, from dense, tall Ponderosa Pines, to rolling hills dotted with Scrub Oak and Junipers, to grassy plains. Drive around, and decide what is really best for you. Do you want to be in town? Is a view critical? Do you want to minimize hot days? (Stick to the pines!) Do you want to grow vegetables and flowers? (Get out from under the pines!)
Expect To Refine Your Requirements
After you start looking, expect to refine your requirements. You may originally think you want a cabin on at least an acre, and after seeing what is available in your price range, decided to either settle for less land to get more cabin, or go for the land only. Don't be mad a the REALTOR for initially showing you things that don't please you. After working together a little though, they should be able to recognize what you are looking and preview property, screening it for you, before future showings.
Be Nice To Your realtor
If, after being shown properties, you decide to buy a lot from a development, let your REALTOR take you in on your first visit. It won't cost you any more or less, and your REALTOR will get paid. Also, if you find a "For Sale By Owner" let your REALTOR approach the seller for you. More often than not, a seller will happily pay the REALTOR's fee, having saved himself the listing fee.
Once you have found a suitable property, ask for the Seller's Property Disclosure Statement and any CC&Rs (covenants, conditions and restrictions) and/or Homeowner's Association documents on the property. If the information is acceptable, go ahead and make an offer. It's a Buyer's market in Prescott now. There's more property available for sale than we've seen in years. Prices are starting to settle down. You used to practically have to offer more than the listing price to get what you wanted, but now you can negotiate the price.
Inspections And Investigations
Ask for a professional home inspection. If the property has a fireplace, get a separate inspection from a qualified expert. If the property has a septic or well, have those items checked. Get a termite inspection. Do not respond to the seller based on any inspection results until they are all back to you. You only have one shot to go back to the seller for requesting repairs based on the inspection reports.
You also might consider asking the seller to provide a one year home warranty.
Be aware of potential environmental hazards. Homes built before 1978 could have lead-based paint.
If you have children, check for registered sex offenders living in the prospective neighborhood at www.azsexoffender.org.
The minute your offer is accepted, talk to your insurance agent and arrange an insurance policy on the property. Get the cost and confirm availability in writing. You may need to contact the Arizona Department of Insurance at www.id.state.az.us and ask for a CLUE report also.
Check to see if your property has contaminates requiring cleanup at www.adeq.state.az.us/environ/waste/sps/phx.html.
Search for road construction plans at www.azdot.gov/Highways/Active_Project_Information.asp.
Taking Title In Arizona
The following is a sentence or two about some of the various ways to hold title in Arizona. Only an attorney can go through all the ramifications, and help you decide what is appropriate for your situation.
Joint Tenancy With the Right Of Survivorship: Two or more persons may hold title to real property as joint tenants with equal interest and with the right of survivorship. The advantage of joint tenancy is that upon death of one of the joint tenants, their interest is transferred outside probate to the surviving joint tenant(s).
Tenancy in Common: Two or more persons may hold title as tenants in common. Each owner has a distinct and proportionate interest without the right of survivorship. Their undivided interest need not be equal. A tenant in common may transfer his undivided interest without destroying the co-tenancy estate.
Community Property: Only persons married to each other may own real property as community property. Each spouse owns an undivided one-half interest in their community property. Each spouse may provide by will for the disposition of his or her community interest in the community real property. However, Arizona law requires both spouses to join in a conveyance or encumbrance of community real property.
Community Property With the Right of Survivorship: Only persons married to each other may take title this way. One spouse is entitled to the whole of the property upon the death of the other and both halves of the community property receive a new tax basis equal to the fair market value as of the date of death.
Sole and Separate: If a married person acquires title as sole and separate property, his/her spouse must execute a disclaimer deed.
Other ways to hold title include Trusts, General Partnership, Limited Partnership and Corporation. Seek the advice of an attorney before deciding which method to select.
Creating a Fire Safety Zone in the Tall Pines
The experts prefer a 10 foot safety zone containing no stacked firewood, no bark or wood chips, and no non-irrigated plants. Further, within a 30 foot swath around homes in the tall pines, they prefer no trees though many owners are unwilling to cut down their large specimens in that boundary. Trees left within the 30 foot safety zone should have dead limbs removed, and all lower limbs up to 8 feet off the ground removed. Check with your home owner's association before modifying existing vegetation!
Keep your roof and gutters clear of pine needles and leaves. This is a twice a year job.
Screen all chimneys. Make sure your roof tiles are 1 hour fire rated.
If your lot slopes down from the home, the safety zone should be enlarged. A 20 degree slopes calls for a 48 foot safety zone, and for a 50 degree slope it should be 100 feet!
Miscellaneous Home Ownership Info
For information on living with the wildlife in our area, read this article at the Arizona Game and Fish Department's web site.