Yes. And there are some very good reasons why you may want your own representation. We sell quite a few manufactured homes throughout the Phoenix area, partly because there are so many manufactured-home communities near us. Many of these communities work differently from a traditional neighborhood. You may be buying the home but not the land underneath it . Instead, you pay monthly lot rent to the community. The park may also have its own rules, application process, age requirements, pet restrictions, fees and other requirements. And there is another big difference buyers often don't realize. The Salesperson at the Park May Not Be a REALTOR® Many manufactured-home communities have their own sales office or salespeople who help sell homes within the park. That does not automatically mean they are Arizona real estate agents or REALTORS®. Arizona has a separate licensing system for people who sell manufactured and mobile homes. Depending on the situation, a salesperson may be licensed through the Arizona Department of Housing and work for a licensed manufactured-home dealer or broker rather than being licensed as a real estate agent. Why does that matter? Because when you walk into the park sales office, you should understand who that person represents. Someone who is helping sell a particular home is not automatically your buyer's representative. Those are two very different jobs. Can I Bring My Own Real Estate Agent? Yes. We regularly represent buyers purchasing manufactured homes in land-lease communities. Just like any other real estate representation, it is important to discuss with your agent before you begin shopping how they will be compensated. In a traditional Arizona residential resale transaction, a buyer may request that the seller contribute toward the buyer's broker compensation as part of the purchase offer. That request is negotiable, and the seller is not required to agree to it. Manufactured homes located on leased land may be sold using a different process and different paperwork, and the park, dealer or seller may not offer or agree to pay a buyer's agent. That does not mean you can't have your own representation. It simply means you and your agent should discuss the transaction and compensation ahead of time so you understand your options and any potential cost before moving forward. For many buyers, having someone at the table whose job is specifically to represent their interests can be extremely valuable. Don't Skip the Inspection Just Because Someone Says You Don't Need One This is probably one of my biggest concerns. I have personally heard salespeople tell buyers that they don't need an inspection or that inspections aren't done on manufactured homes. Nope. Manufactured does not mean maintenance-free. These homes can still have expensive problems involving: HVAC systems Plumbing Electrical systems Water heaters Roofs Windows and doors Subfloors Appliances Additions and Arizona rooms Structural or support components An inspection on a manufactured home may look somewhat different from one on a traditional site-built home, and you want an inspector familiar with manufactured housing. But the idea that you should simply buy one without inspecting it because "that's how it's done here" should make you ask more questions, not fewer. "It's Being Sold As-Is" Doesn't Mean Nobody Will Negotiate Another statement I recently heard was that homes in a particular community were sold AS-IS with no repairs. The words "as-is" can sound pretty intimidating. But here's what buyers need to understand. Even the standard Arizona residential resale contract states that the property is being sold in its present condition. That doesn't mean buyers shouldn't inspect the home or that the parties can never negotiate after problems are discovered. We've represented buyers who had inspections performed on manufactured homes and discovered problems. And guess what happened? We've had sellers agree to make repairs. We've had sellers offer credits. We've negotiated solutions that worked for both sides. Why would a seller agree to that? Because sometimes the alternative is losing the buyer. If there are 20 other manufactured homes for sale in the same community and an inspection uncovers an expensive problem, a seller may decide that working something out makes much more sense than watching the buyer move on to another home. What a buyer can request, and what happens after an inspection, will depend on the particular agreement being used. But hearing the words "as-is" should never be confused with "don't inspect it." Be Careful How Much You Tell the Park Salesperson This one doesn't get talked about enough. I've toured manufactured homes with buyers while a community salesperson accompanied us. And I've been amazed at some of the information I've heard. Things like: "The seller has cancer and really needs to sell." "They're getting divorced." "They need this sold immediately." "They'll probably take just about any offer." From a buyer's perspective, that information can certainly affect negotiations. But here's the other side of that coin: What is being said about you after you leave? Suppose you tell the salesperson: "We absolutely love this one." "This is the only community we'll consider." "We have to move before the end of the month." "We could probably go another $15,000 if we had to." You may have just handed over information that could weaken your negotiating position. When we represent a buyer, we're careful about what information gets shared and why. You don't need everyone involved in the transaction knowing your maximum budget, your deadline, how emotionally attached you've become to the home or how badly you need the deal to work. There's a time for showing your cards. Negotiating the purchase price usually isn't it. You're Also Buying Into the Community With a land-lease manufactured home, evaluating the house is only half of the homework. You also need to understand the park. Before purchasing, buyers should investigate things such as: Current monthly lot rent What the lot rent includes Community application and approval requirements Additional monthly or annual fees Pet restrictions Parking and vehicle restrictions Rules regarding occupants Rules regarding improvements to the home Amenities Utility responsibilities Any applicable age restrictions Community rules and regulations How and when lot rent may change A beautiful home can become much less attractive if you discover afterward that the community rules or monthly costs don't work for you. One More Important Difference: The Title Arizona manufactured and mobile homes that have not been permanently affixed to real property generally have certificates of title issued through the Arizona Motor Vehicle Division. That's one reason these transactions can look very different from purchasing a traditional house and lot. If the manufactured home has been permanently affixed to real property, however, the ownership and title process is different. This is another area where buyers should make sure they understand exactly what they're purchasing: the home only, or the home and the land. The Bottom Line You absolutely can have your own real estate agent represent you when purchasing a manufactured home in a land-lease community. The park salesperson may be perfectly helpful and knowledgeable about the community. But that doesn't automatically make that person your representative. Those are two different things. Independent representation gives you someone who can help you evaluate the purchase, review comparable sales, think through an offer, protect your negotiating position, coordinate inspections and help you understand what you're agreeing to before you sign. Manufactured homes can be a great option for buyers looking for affordability, amenities or a particular lifestyle. Just don't confuse a simpler-looking purchase with a purchase that doesn't deserve proper due diligence. Frequently Asked Questions Can I use a REALTOR® to buy a manufactured home in an Arizona land-lease community? Yes. Buyers can choose to hire their own real estate agent for representation. How that agent is compensated should be discussed before beginning the home search. Depending on the transaction, the seller, dealer or park may or may not agree to contribute toward the buyer's agent compensation. Your agent can explain your options before you make an offer. Do manufactured homes have titles in Arizona? Generally, Arizona MVD issues certificates of title for mobile and manufactured homes that are not affixed to real property. A home permanently affixed to real property is handled differently, so buyers should verify how the particular property is titled. Should I get an inspection on a manufactured home? We strongly recommend buyers consider an inspection. Manufactured homes can have many of the same costly problems as other homes, including HVAC, electrical, plumbing, roofing and water damage. Look for an inspector experienced with manufactured housing. If a manufactured home is being sold as-is, can I still ask for repairs? Depending on the purchase agreement, inspection findings and circumstances, buyers and sellers may still negotiate repairs, credits or other solutions. "As-is" should not be interpreted as "don't inspect it" or "don't ask questions." Does the salesperson in the park represent me? Don't assume so. Ask directly who the salesperson represents and what type of license they hold. A manufactured-home salesperson working for a dealer or broker is different from hiring a real estate agent specifically to represent you as the buyer. What should I investigate besides the manufactured home itself? The land lease and community rules are extremely important. Review lot rent, fees, application requirements, utilities, pet rules, parking restrictions, occupancy requirements, amenities and other community regulations before committing to the purchase. This article is intended for general educational purposes and is not legal advice. Manufactured-home transactions, community requirements, contracts, title status and representation agreements can vary significantly. Buyers should rely on their specific purchase documents and community agreements and consult the appropriate licensed real estate professional, manufactured-housing professional, title professional and/or attorney regarding their individual transaction.
At Rover Realty, we believe that supporting our community goes beyond real estate. Each month, we’re proud to give back to organizations making a meaningful difference, and this month, we’re honored to support SauerPower Veterans Empowerment Alliance (SPVEA) .
When should a seller turn off utilities when selling a home in Arizona? And when should a buyer have utilities turned on? It sounds like a small closing detail, but getting the timing wrong can create a big problem. Our general recommendation is simple: Sellers: Schedule utilities to turn off the day AFTER closing. Buyers: Schedule utilities to begin in your name ON closing day. Here's why. Sellers: Don't Schedule Utilities to Shut Off on Closing Day Under the standard Arizona residential purchase contract, the seller is generally required to keep the property's utilities on through the close of escrow. That's important because the buyer may need the utilities for the final walk-through and to verify that agreed-upon repairs have been completed. For that reason, we generally recommend that our sellers schedule their utilities to be turned off the day after the scheduled close of escrow. For example: Closing Tuesday? Schedule shutoff for Wednesday. Why not Tuesday? Because telling the utility company to shut off service "on Tuesday" doesn't necessarily mean they will wait until the transaction closes. They could disconnect service early in the day. Now imagine the buyer arrives for the final walk-through and there is no electricity. They can't properly check the lights, appliances, air conditioning or repairs involving electrical systems. That can create an unnecessary problem right before closing. The Extra Day Gives Sellers a Safety Net Real estate closings don't always happen exactly as planned. A lender could need another document. Funding could be delayed. A last-minute title issue could arise. Recording could be pushed into the following business day. Scheduling utilities to end the day after closing gives the seller a little breathing room. If we learn that closing isn't going to happen as scheduled, there may still be time to contact the utility providers and extend service another day. That's much easier than discovering the utilities have already been disconnected and trying to have them turned back on—possibly with additional fees. But There's an Important Distinction Scheduling the shutoff for the following day is meant to protect the seller before closing . It is not intended to provide utility service to the buyer after the property has closed. Once the transaction closes, buyers should have established their own utility accounts. A seller certainly doesn't want to remain financially responsible for a buyer's utility usage after closing. Imagine a buyer immediately draining and refilling a swimming pool while the water is still being billed to the former owner. That could potentially mean hundreds of dollars in water charges. That's why both sides need to coordinate their utility dates properly. Buyers: Schedule Utilities to Start on Closing Day For buyers, we recommend scheduling utilities to begin in your name on the scheduled closing date. Don't wait until closing day to start making phone calls. Contact the utility providers ahead of time and arrange for the account to transfer or begin on your closing date. This is especially important if you plan to move into the home immediately. You don't want to get your keys at 4:00 in the afternoon and discover you don't have electricity, water or gas. Arizona in August is a particularly bad time to learn that lesson. Watch Out for Fridays, Weekends and Four-Day Workweeks Timing becomes even more important with some Arizona municipalities and utility providers. Some government offices and municipal departments operate on four-day workweeks or have limited Friday availability. Let's say your home closes on a Thursday. You get busy and forget to arrange for water service. Friday morning you try to establish your new account, only to discover that the department is closed or has limited availability. Your request may not even be reviewed until Monday—and that doesn't necessarily mean your service will begin Monday. This is why we encourage buyers to start working on their utility transfers several business days before closing. Special Instructions for City of Phoenix Buyers If you're purchasing a home in the City of Phoenix, pay particular attention to your City Services account , which includes water and related municipal services. Phoenix requires additional documentation when a homebuyer establishes service. The good news is that you don't necessarily have to wait until after closing to submit the request. The City currently allows a buyer who is closing soon to provide a PDF copy of the estimated OR final Settlement Statement from the title company as evidence of the purchase. That means this is something you can work on before closing. Ask Your Title Company for the Document If you're buying in Phoenix, ask your title or escrow company for an estimated Settlement Statement before closing. Once you receive it, you can use it as part of your City Services start-service request rather than waiting until you have the final statement after closing. The City currently advises allowing at least three business days for processing, excluding weekends and City holidays. That makes planning ahead especially important for a Thursday or Friday closing. Don't wait until you receive your keys to start figuring this out. Utility requirements and processing times can change, so buyers should always verify the current requirements directly with the City of Phoenix before closing. Buyers: Be Prepared for Deposits and New-Service Fees Another surprise for some buyers is the upfront cost of establishing utility service. Depending on the provider and your account history, you may be required to pay a deposit, connection charge or other new-service fee. Some deposits can be substantial and may not be refunded or credited until you've established a history of on-time payments, sometimes for a year or more. If you're moving to a new city or using utility providers you've never used before, ask about these charges ahead of time. Closing already comes with enough expenses. Nobody enjoys discovering another few hundred dollars in deposits after they've signed their closing documents. Sellers: Confirm Your Accounts Are Actually Closed Sellers have one more important job after closing. Confirm that your utility accounts have been closed and that any automatic payments have been stopped. Don't assume everything happened correctly just because you submitted a shutoff request. This can become particularly important when a buyer doesn't immediately establish service in their own name. This sometimes happens with second homes or properties that won't be occupied right away. If the utility provider continues billing the former owner's account, you don't want to discover weeks later that you've been paying for utilities at a home you no longer own. After closing, verify that: Electricity service has ended in your name. Water service has ended in your name. Gas service has ended in your name, if applicable. Trash or other municipal services have been stopped or transferred when applicable. Automatic payments have been canceled. The utility providers have your forwarding address for final bills or refunds. Keep copies of your final statements as well. Our Simple Rule for Arizona Closings Here's the easiest way to remember it: SELLERS: Schedule utilities to turn off the day after closing. BUYERS: Schedule utilities to begin on closing day. BOTH: Handle the requests ahead of time. Don't wait until closing day. And if you're buying in the City of Phoenix, get your estimated Settlement Statement from title and submit your City Services request early enough to allow for the City's processing time. A five-minute utility phone call made early can prevent a much bigger headache on closing day. Frequently Asked Questions When should a seller turn off utilities when selling a home in Arizona? We generally recommend scheduling utilities to be disconnected the day after the scheduled close of escrow . This helps ensure the utilities remain available through closing as required by the standard Arizona contract and provides a small cushion if closing is unexpectedly delayed. Why shouldn't I shut my utilities off on closing day? The utility provider could disconnect service early in the day, before the buyer completes a final walk-through or before the transaction officially closes. When should an Arizona buyer put utilities in their name? We generally recommend scheduling service to begin on the scheduled closing date . Make the arrangements several business days ahead of time rather than waiting until closing day. What does a City of Phoenix buyer need to start water service? The City of Phoenix currently allows a buyer who is closing soon to provide an estimated or final Settlement Statement from the title company as evidence of the purchase when establishing City Services. Buyers should request the estimated statement from their title company before closing and verify the City's current documentation requirements. How far in advance should I contact the City of Phoenix? The City currently recommends allowing at least three business days for processing a start-service request, excluding weekends and City holidays. Give yourself additional time when possible, especially around weekends and holidays. What happens if my closing is delayed? Contact the utility providers immediately. Sellers may need to extend their service through the new closing date, while buyers may need to adjust the start date for their accounts. Should a seller leave utilities in their name for a few days after closing? No. The recommendation to schedule shutoff for the day after closing is intended to protect against an early shutoff before the transaction closes , not to provide utilities for the buyer after closing. Buyers should establish service in their own names effective on the closing date. Should sellers cancel automatic utility payments after selling? Yes. Once the transaction has closed, verify that each account has been closed and review your automatic-payment settings. Keep your final statements in case there is a billing issue later. A Little Planning Goes a Long Way Utilities aren't the most exciting part of buying or selling a house, but they are one of those details you definitely notice when someone gets them wrong. For our clients, we help keep track of these little closing details because buying or selling a home already comes with enough moving pieces. Nobody wants their first memory in their new Arizona home to be sitting in the dark wondering when the air conditioner is coming back on. Contract Disclaimer: This information is intended for general educational purposes and is based on common provisions and practices involving Arizona residential real estate transactions. Contract terms, utility requirements and provider policies can vary and may change. Parties may also negotiate different contract provisions. Always review your specific signed agreement, verify current requirements directly with your utility providers, and consult your REALTOR® or an Arizona real estate attorney regarding questions about your contractual obligations.
