How To Buy A House In Arizona

Buying A House In Arizona 

No matter if you are buying your first home or relocating to the state of Arizona, you must learn about all the nuances of the area’s real estate. Follow these few steps on your journey toward homeownership. 

Find A Trusted Real Estate Agent

The most important step of the process is finding an experienced real estate agent that you trust. Make sure you talk to many agents to find the right one for your situation. Your agent needs to know the ins and outs of the Arizona market, including laws and practices. 

Budget

Check to see if there are any first-time home buyer programs available, if applicable. You also must understand that Arizona is considered a seller’s market right now. This means home sellers will typically have plenty of bids to choose from. 

Enjoy Low Property Taxes

This state currently has a law that will cap the tax rate on owner-occupied homes. So, as long as you are at least renting your home out, you can enjoy property taxes that fall well below the national average. There are some property tax exemptions available, such as ones for the disabled, seniors or those individuals who meet certain income brackets.

Purchase Homeowners Insurance 

Due to flood risks and other uncommon weather events, home buyers should be prepared to pay higher homeowners insurance premiums. You will need flood insurance if you live in an at-risk area, as well. 

Steps To Buying A House In Arizona

Use these steps as your guide to buying a home.

1. Save For Down Payment

You may need a minimum down payment of 3-5%, depending on the lender and type of loan. In order to avoid paying private mortgage insurances, most mortgages will need 20% down.

2. Mortgage Approval

Just like a real estate agent, find a mortgage lender you want to work with. The lender will gather your information and decide how much to lend to you. 

3. Decide What You Need In A House

This is the most important step of the home buying process. You need to decide what you need in a house, want in a house and what could be considered a dealbreaker. 

4. Tour Homes

The longest part of the process is typically touring several different properties. Check out many homes and decide what you do and don’t like. 

5. Make Offer(s)

Work with your real estate agent to figure out an appropriate offer for your dream home. 

6. Close On The House

The final step is closing on the home! Get the appraisal and home inspection, then complete all the paper work and you are set to move in. 

Where To Buy A House In Arizona

Arizona is a very desirable place to live. From its low cost of living to the fewer tax burdens, more and more people are flocking to the valley. So which areas are the most attractive for homebuyers right now?

Chandler

Chandler is home to a popular historic downtown area and some of the top golf courses in Arizona.

Phoenix 

Phoenix is not only the state capital, it is also the most populous city in Arizona. This city features historic neighborhoods surrounded by world-class views. There is no better big city life found in the desert than in Phoenix. 

Scottsdale

One of the most desirable places in the state, is also one of the priciest today. The median sold price on a home in Scottsdale has increased over 20% since the year 2020. Yet, it’s blend of culture and nature makes it one of the best spots to live in the valley. 

Flagstaff

The population of Flagstaff continues to grow, rising above 70,000 residents recently. Located in Northern Arizona, prospective homebuyers love the fact that they won’t have to deal with any harsh summers, compared to the majority of the desert. 

Tucson

Just a few hours south of Phoenix, Tucson is consistently ranked atop the best places to live in the state. Tucson has a plethora of upscale neighborhoods for affordable rates. 

When To Buy A House In Arizona

One way to ensure the home buying process is as simple as possible is to shop at the right time. Now, of course, this can be a tricky thing to figure out. Arizona, unlike most other housing markets, has varying housing prices and mortgage rates by the month. Housing prices in Arizona were at their lowest level in the month of May during 2021, for example. Homes were listed at an average of $40,000 less during May than any other point this year. November was actually the month with the highest housing prices in the valley of the sun.

Arizona’s real estate market is truly unlike any other market in the country due to its harsh summers and mild winters. Most homebuyers do find better deals in the summer because the area is less desirable at that point in the season. While most of the country has lower prices during the winter, the exact opposite is true in Arizona. Currently, Arizona is categorized as a seller’s market, meaning you’ll likely face a lot of competition when bidding for a new home.

The best time to buy will really depend on both the market and your specific situation as potential homebuyers. The first step towards home ownership is getting preapproved by a licensed lender. Even after you have been preapproved, it’s still possible to find lower rates that can pay dividends over the life of the loan. Look around at as many options as possible.

Cost To Build A House In Arizona

On average, building a house in Arizona costs a total of $412,000. Prices can range all the way from $200,000-$625,000 in 2021, according to HomeAdvisor. Another way to get an accurate price estimate is to figure out square footage of the home. Typically, custom and luxury homes cost $200-$500 per square foot.

• 2,000 sq. feet: $200,000-$400,000
• 2,500 sq. feet: $250,000-$500,000
• 2,700 sq. feet: $270,000-$540,000
• 3,000 sq. feet: $300,000-$600,000
• 4,000 sq. feet: $400,000-$800,000
• 5,000 sq. feet: $500,000-$1,000,000