September 23, 2020|Arizona Phoenix homes, Arizona Real Estate, Buy House, Buyer’s, Cash offer for houses, Chandler Realtor, COVID Real Estate, Home Improvements, Invell Homes, Investing, Mortgage Loan, Phoenix Rentals, Sell House
Arizona. Red mountains, sparse desert, cacti of all types and warm days. This is what comes to mind. Home to one of the world’s seven natural wonders – the Grand Canyon – Arizona’s beauty is no mirage. If colorful sunsets, warm weather and open spaces are for you, Arizona may be your dream. Read more to understand what it means to become an Arizonan.
Buying A House In Arizona
According to World Population Review, Arizona’s population has increased by half a million since 2010. From 2010 – 2015, Arizona was the seventh fastest-growing state and in 2018, it was named the fastest-growing state in the country by the U.S. Census Bureau.This kind of growth and popularity has made Arizona real estate a solid investment. It consistently ranks as one of the most attractive states to retire. The growing economy and its low cost living has made Arizona a magnet to many. A property in Arizona can provide a good return, whether it’s a primary residence, semi-annual as a snowbird or a rental.
Arizona Housing Market
Statewide, it is safe to say that Arizona is a seller’s market. While there is variability by city and its neighborhood, on average, homes don’t stay on the market long and many are selling above asking price. As a buyer, you need to be competitive and assertive to get the house you want, for the right price. Making a competitive offer is crucial.
Popular Real Estate Cities In Arizona
Phoenix
Phoenix is the state capital and the most populous city in Arizona. For a long time, its economy was founded on the “Five C’s” – cotton, cattle, citrus, climate and copper. Nowadays, the economy leans toward military, finance and medical.
As the biggest city in Arizona, it’s also the state’s cultural center. Fine arts, performing arts, professional sports and excellent cuisines from around the world are all at home in Phoenix.
If you’re looking for big city life in the desert, look no further than Phoenix.
Scottsdale
Part of the greater Phoenix area, Scottsdale borders the Tonto National forest and is home to a booming tourism industry. Scottsdale is home to more destination spas per capita than any city in the country.
It’s also one of the pricier real estate markets on this list. According to our listings, as of August 2020, the median sold price was $516K, up 9.1% from August 2019.
It’s position, sandwiched between thriving Phoenix and the McDowell Mountains, make it a perfect spot for anyone looking for a balance of nearby culture and nature.
Chandler
Chandler is another suburb of Phoenix, situated to the east of the city. Its major employers include Wells Fargo, Bank of America, PayPal and the tech company, Intel. The city’s population is estimated to have grown over 10% since 2010.
The town is full of historic homes, some of which have been included on the National Register of Historic Places. Homes like the McCullough-Price house, which display a Pueblo Revival-style.
It’s more affordable than Scottsdale, has a growing job market, good schools and is close to larger cities like Mesa and Phoenix. What more could you want?
Mesa
Just east of Tempe and north of Chandler sits Mesa, Arizona. Mesa is the largest suburban city in the U.S. With over 518,000 residents, the city is the third largest in Arizona. It’s home to the Mesa Arizona Temple, a large Church of Jesus Christ of Latter-Day Saints temple, as well as the Mesa Grande Ruins, which date back to 1100 A.D.
The median age of its residents is 32, with a median income of just over $42,000. Its top employers include the Banner Health System, Mesa Public Schools and the City of Mesa, bringing thousands of jobs to the area. And those jobs are needed since the population has grown 18% since 2010.
Based on it’s extensive business and shopping districts, cultural history and growing economy, buying a house in Mesa could be a great investment.
Gilbert
What once was a small agricultural town is now a bustling economic center. Gilbert is located southeast of Phoenix, sandwiched between and east of Mesa and Chandler.
The town’s population growth is an incredible story. In 1980, there were 5,717 residents. Fast-forward 40 years and you have a city with over 208,000 people. That’s over 36 times its size in 1980.
The growth of the town is not stopping or slowing, either. The Gilbert, Arizona Office of Economic Development claims that, “By 2030, Gilbert is expected to be fully built out, with an anticipated population of over 300,000.” This means now is a good time to buy a house in Gilbert.
Things To Think About When Buying A House In Arizona
Whether you’re relocating to Arizona or buying your first home, it’s important to understand the nuances of real estate in Arizona. Keep reading to learn more tips when buying a house in Arizona.
Find A Trusted Arizona Real Estate Agent
Finding the right real estate agent can be crucial for finding the right a home. Linking up with an agent who is familiar with the desired area is the first step for house hunting in the areas you’re interested in. They’ll know the market, what will meet your needs, as well as the laws and practices specific to Arizona.
Know Your Financing Options
Do your research. There may be state-specific first-time home buyer grants and programs available. For instance, Home Plus Arizona offers a Day Payment Assistance program geared to making home ownership a reachable reality for first-time buyers.
Be Prepared To Pay Earnest Money
Arizona is a competitive seller’s market, meaning that they often have their pick of bids. While putting down 1% of the price of the home as earnest money is standard, a larger amount can strengthen your offer. Earnest money shows the buyer you’re serious. To make your offer stand out, include more earnest money, if possible.
Enjoy Low Property Taxes
Arizona has a law that caps the tax rate on owner-occupied homes. This means that, as long as you aren’t renting out your home, you can enjoy property taxes that are well below the national average.
It should be noted that the state does have a vehicle property tax rate of 0.69%.
Plan To Pay More For Homeowners Insurance
Because of intense weather and flood risk, be prepared to pay higher homeowners insurance premiums. If your home is in an area that floods, you will need flood insurance. Also be aware that the state is a hotbed for wildfires.
Know Your Rights To Property Tax Exemption
Property Tax exemptions are limited in Arizona. If you’re disable, a senior or meet certain income brackets, you could be eligible and avoid paying property tax.
How To Buy A House In Arizona
While it’s a huge decision, there are 7 easy steps to buy a house in Arizona. Follow these steps and you’ll be moving into your new house in no time:
1. Save for a down payment. Depending on the lender and loan type, you will need a minimum down payment of 3% to 5%. Though to avoid paying Private Mortgage Insurance (PMI), most mortgages will require 20% down.
2. Get mortgage pre-approval. Find the mortgage lender you want to work with and get pre-approved for a mortgage. They will take your info, check your credit and determine how much to lend you. Be sure to shop around if possible to find the best rate.
3. Decide what you want in a house. Know what’s a deal-breaker, what’s a necessity and where you’re willing to compromise. Needs vs Wants is something that will help your Realtor find you the best home for your specific lifestyle.
4. Find an agent. Working with a licensed real estate agent can make the whole home buying process better. Whether it’s Goodyear, Tucson or Flagstaff, a good agent will take the market conditions and your budget and combine them with your needs to find the right house for you.
5. Tour homes. Get out there and see the houses. You’ll get a good idea what you like and what you don’t like.
6. Make an offer. Make it competitive. Work with your real estate agent to put together an offer that beats out the rest. Be ready to think on your feet because houses do not sit long in Arizona.
7. Close on the house. This is where everything falls into place. Get the appraisal, the home inspection, complete the paperwork and sign your name on the line.
The Bottom Line
Arizona is a competitive market. The population is booming and shows little signs of stopping. Whether it’s your first house or your retirement home, investing in real estate in the state of Arizona could payout in your favor. Phoenix and the surrounding communities draw in people from far and wide, whether for tourism or to stay. Your home in Arizona could be your refuge among the mountainous desert.
For more information or to get started looking for your Arizona Home, call or text us at (602) 892-3000. We will connect you to one of our partnered agents to help you decide what desired city and style of home will be right for you!
