8 Tips for Buying a Home in Arizona
There are lots of reasons to move to the Grand Canyon State. Picturesque desert landscapes, a burgeoning food and wine scene, and 300 days of sunshine per year are just a few. There’s also the lure of affordable real estate. According to Realtor.com®, the median list price for homes in Arizona is $475,000, just above the national median, but far lower than California’s and many other Western states. If you’re thinking of buying a home in Arizona, here are five things to keep in mind:
1. Understand the AZ housing market
Like any real estate purchase, it’s important to understand the local market before making an offer on a home. In Arizona, the median list price has increased steadily over the past few years, but deals are still available, especially if you’re looking in a less-populated area.
Some areas in Arizona, such as Sedona, are excellent areas to purchase an Airbnb rental because of the high demand for vacation rentals. Other areas, like Phoenix, are better to buy property in if you want to live there long term as the market is more stable and there is much more to do. Do your research and consult with a local real estate agent to find the best area for your needs.
2. Research tax implications
Before making the move, you'll need to clearly understand the tax implications of buying a house in Arizona. If you're relocating from another state, there may be some significant changes and benefits.
If you have a credit score over 640, you can take a federal tax credit of up to $2,000 per year as a first-time homebuyer in the state. There are income and home purchase price limits, but this is something to consider if you're looking to get a mortgage in the state.
Arizona is one of thirteen states that does not levy a real estate transfer tax, meaning there's no tax on the sale of your home when you buy it. This could save you a significant amount of money, depending on the purchase price of your property. When buying your Arizona home, talk with a CPA or tax advisor to see what implications there may be come tax time.
3. Moving to Arizona means extreme summertime heat
For some, the heat is not a problem, and for those who don't like the rain or snow, a sunny and dry state like Arizona may be a perfect fit. However, if you're from a place like Boston, New York, or Seattle and have never experienced a 120-degree day, the high temperatures will be something to get used to.
Be sure to have your home inspected for things like proper insulation and cooling systems—things that may not have been a concern in your previous home. If you need to get a storage unit for some of your things, many facilities in Arizona offer climate-controlled units to help protect your belongings from the heat.
4. Arizona has lots of beautiful scenery and outdoor activities
Similar to Colorado, Arizona is a mecca for outdoor enthusiasts. With world-renowned hiking trails, like the Bright Angel Trail in the Grand Canyon, and plenty of opportunities for camping, mountain biking, and rock climbing, there's no shortage of things to do outdoors. If you love golf, you'll be in heaven—Arizona is home to more than 300 golf courses. Particularly in Scottsdale, golfing is a way of life.
5. Arizona architecture is unique
From the iconic mid-century modern homes in Palm Springs to the Adobe-style dwellings in Tucson, Arizona's architecture is as varied as its landscape. You'll find everything from contemporary condos to rustic ranches and luxury homes. Since Arizona is so sunny, eco-friendly design and architecture are becoming more popular. Many homes in the state are designed to take advantage of natural light and minimize the need for artificial lighting and cooling.
6. Solar is a great investment for AZ homeowners
Investing in solar is one of the smartest things you can do as an Arizona homeowner. With an average of 300 days of sunshine annually, Arizona is the perfect place to take advantage of solar power. You will save money on your energy bills and may also be eligible for state and federal tax credits. Solar is a great way to reduce your carbon footprint and help the environment. In many cases, solar energy can integrate with your Arizona home security systems and smart home installations as well, making your home more efficient and safe.
7. You must use some kind of transportation in Arizona
Since everything is spread out in Arizona, you'll need to have a form of transportation. If you don't have a car, you may be able to get by using public transportation, ride-sharing services, or even biking. Keep in mind that the heat can be brutal, so you may want a mode of transportation with air conditioning. If you plan to do any hiking or camping, you'll need a way to get to and from the trailheads.
In a city like Phoenix, getting around without a car will be easier, and if you're moving to a college town like Tempe or Tucson, you may be able to get by without a car as well. In more rural areas, you'll certainly need your own set of wheels.
8. Arizona's job market is strong, especially in Phoenix
If you're moving to Arizona for a job, you'll be happy to know that the state's job market is strong. Phoenix in particular is a hot spot for job growth, with many industries—including healthcare, technology, and education—thriving in the city. While Phoenix's cost of living is 4% higher than the national average, the average salary in the city is $63,704, which is also higher than the national average.
Endnote
Moving to Arizona is a big decision, but it can be a great one. With so much to offer—from its beautiful scenery to its strong job market—the state is an ideal place to call home. Just be sure to do your research and be prepared for the heat.
