Making an offer

← The Arizona Buyer's Guide

You found the house. Now the offer. In Arizona this is a structured, deadline-driven process built on a standard contract — which is good news, because it means fewer surprises and a clear set of protections if you know how to use them. My job here is to help you write an offer that's both competitive and safe.

The AAR Purchase Contract

Almost every resale home purchase in Arizona uses the Arizona Association of REALTORS® (AAR) Residential Resale Real Estate Purchase Contract. It's a standardized, multi-page document that spells out the price, the deposit, what's included, and — critically — a set of built-in deadlines. Because it's the norm, listing agents and title companies know it cold, which keeps transactions moving. New-construction purchases from a builder are the main exception; those usually run on the builder's own contract.

The contract does a lot of quiet work for you. It sets the timeline for your inspections and financing, defines what happens if a deadline is missed, and lays out how and when your earnest money is protected or at risk. Read it — I'll walk you through every section — because the deadlines inside it are real and the clock starts at acceptance.

Earnest money

When you make an offer, you include earnest money — a good-faith deposit showing you're serious. It's commonly around 1% of the purchase price, though there's no fixed rule and a larger deposit can strengthen a competitive offer. The money isn't paid to the seller; it's deposited with the escrow/title company and held in trust. At closing it's credited toward your down payment and costs. If the deal falls apart within your contingencies, you generally get it back; if you walk for a reason outside the contract's protections, you can lose it. That's exactly why contingencies matter.

Contingencies — your safety net

Contingencies are the conditions that let you exit the contract and keep your earnest money if something isn't right. Waiving them makes an offer stronger but riskier; the art is knowing which risks are worth taking.

Inspection contingency (BINSR)

The AAR contract gives you an inspection period — commonly ten days from acceptance — to investigate the property. At the end of it you deliver the Buyer's Inspection Notice and Seller's Response (BINSR), which lets you approve the home, ask the seller to correct items, or (if you find something disqualifying) cancel and recover your deposit. It's one of the most important protections you have. We go deep on how to use it in Chapter 4.

Appraisal contingency

If you're financing, your lender orders an appraisal to confirm the home is worth what you're paying. The appraisal contingency protects you if it comes in low: you can renegotiate the price, cover the gap in cash, or, depending on the terms, cancel. In a hot market some buyers offer an "appraisal gap" guarantee — agreeing to bring extra cash if the value falls short — to compete. That can win a bidding war, but only offer it if you genuinely have the funds.

Loan contingency

The financing contingency protects you if your loan doesn't come through despite good-faith effort. This is why a solid pre-approval (Chapter 1) matters so much — it lowers the chance you'll ever need to lean on this contingency, and it makes the seller more confident you'll close.

Escalation clauses

When you expect competition, an escalation clause automatically raises your offer by a set increment above the next-highest verified offer, up to a cap you choose. For example: "$5,000 above any bona-fide competing offer, not to exceed $X." Used well, it keeps you in the running without overpaying from the start. Used carelessly, it can reveal your ceiling or commit you past what the appraisal will support. I'll tell you honestly whether one helps in a given situation — they're a tool, not a default.

Seller concessions

Price isn't the only lever. Seller concessions are credits the seller agrees to give you — typically toward your closing costs or a rate buy-down. In a balanced or buyer-friendly market, asking for concessions can be more valuable than a lower price, because it reduces the cash you need at the table. Loan programs cap how much a seller can contribute, so we structure the ask to stay within your lender's limits.

Reading a counter-offer

Sellers rarely accept a first offer outright. A counter-offer changes one or more terms — price, closing date, what stays with the home, who pays for what, the length of the inspection period — and hands the decision back to you. The key is to read the whole counter, not just the price. Sometimes a seller holds firm on price but gives on the closing date or throws in the refrigerator and washer/dryer; sometimes a small concession from you unlocks the deal. Each side can counter back and forth until you agree or walk. When you sign an acceptance, you're under contract and the deadlines begin.

Common questions