With over 300 days of sun, affordable housing, and the Grand Canyon in your backyard, Arizona is a great place for first-time home buyers to lay down some roots. Here are 4 tips to help you buy your first property in AZ.

Gain Clarity on the Various Costs

Buying a home is a big expense and understanding the various costs that go into the home-buying process is extremely important. One decision could end up costing you thousands more than you should actually be paying if you’re not careful.

 

Each state can vary in the prices that you might pay for certain items. For example, buying a home in Arizona may look drastically different than buying a condo in New York. As you’re researching and looking for a good realtor, make sure that you’re targeting the area you actually plan to live in.

 

Ask a realtor specific questions to gain clarity on items like who pays the broker fee, if there are any additional realtor fees, and how much are closing costs in AZ. An experienced and reputable realtor in Arizona should be able to easily answer these questions.

Find an Experienced Real Estate Agent

Take time to find a realtor that is knowledgeable and trustworthy. If there is a certain area within Arizona that you’re interested in buying property in, make sure to ask the realtor about their experience in helping other home buyers purchase in that area.

 

When looking for a realtor, remember that you don’t need to go with the first one you talk to. It’s advised that you interview a few realtors to see who you like best, and who you think will help you in buying the right home at the right price. There are a couple types of realtors in AZ that you can connect with:

  • Flat Fee Realtors: These realtors can provide you with the same services that commission based realtors do for a fraction of the cost. You’ll pay one, flat rate.
  • Commission Based Realtors: These realtors are paid on commission, which is based on a percentage of the cost of the property that is sold/ purchased.

 

As a final tip on picking an agent, try to determine how good they are at negotiating. Their ability to negotiate well could help you save a lot of money on the home you buy!

Know Your Budget

Having a strong understanding of your financial situation is absolutely vital when buying a home. Once you get pre-approved, you’ll know how much you’re able to afford for a house. However, just because your lender says you can afford a certain price point does not mean that you should necessarily aim to spend the maximum amount.

 

For example, the current median sale price in Phoenix is $381,000 (and this is changing each month due to how competitive the market is). If you’re approved for $500,000, you may not actually need to spend all of that to buy a house you’d be happy in. Knowing your budget and being realistic about the type of house you want, and need could end up saving you hundreds of thousands of dollars!

Explore Different Neighborhoods

Even if you think you want to live in a certain city within Arizona, be open to exploring different neighborhoods. You might initially think that you want to live in the heart of Phoenix, but if you have kids, your realtor might suggest also looking at neighborhoods within Gilbert, due to its strong family-friendly community.

 

Remember, the location of your home is the one major thing you can’t change, so taking time to truly see what various neighborhoods have to offer and envisioning yourself in that community is important.

Conclusion

As the real estate market continues to change, various types of homes will be going up for sale. Purchasing your first home is a huge milestone, and you want to make sure you’re buying something within budget that you love.