The largest cities in Arizona include Phoenix, Tucson, Mesa, Glendale and Scottsdale. to join the Union, Arizona has 7.408 million residents. Details of Arizona Housing Marketĭespite being the last state in the contiguous U.S. Arizona, however, voted in 2008 to ban real estate transfer taxes, and in 2009, the Protect Our Homes Act was approved and signed into law. One last fee, which is usually the responsibility of the seller is real estate transfer taxes. Arizona has a document that helps homebuyers understand title insurance. You can also buy an owner’s policy to protect your own interest in the title. This protects the lender by covering the cost of the loan if a title defect causes you to lose your rights to the property. Most lenders also require title insurance, in the form of a loan policy. ![]() This varies and will depend on what services you use during the transaction. Third-party fees include your attorney’s charges, flood certification, survey costs, appraisal and credit reports. Some lenders charge for certain services, while others don’t, so shopping around before committing to a lender is prudent if you’re trying to save on costs. For the first, your lender can charge fees for loan processing, commitment, document preparation, tax service, origin points and underwriting. Once we calculated the typical closing costs in each county, we divided that figure by the county’s median home value to find the closing costs as a percentage of home value figure.Ĭlosing costs include origination fees, which is what your lender charges, and third-party fees, which will depend on what services you use during your home-buying journey. We considered all applicable closing costs, including the mortgage tax, transfer tax and both fixed and variable fees. Our Closing Costs Study assumed a 30-year fixed-rate mortgage with a 20% down payment on each county’s median home value. ![]() In Arizona, average closing costs as a percentage of home value vary on a county basis from 1.39% to 3.97%. Along with signing paperwork, you’re responsible to pay the remaining fees for services involved with your homebuying experience. Once you’ve finalized your offer and move forward with the home purchase, you’ll set a closing date with your lender. For additional tests such as radon, pest or mold, you’ll pay additional fees. You can expect your home inspector to observe structural components (interior and exterior), plumbing, electrical, heating and cooling, interior walls, ventilation and appliances. The cost depends on the square footage of the home. The average price for a home inspection in Phoenix, for example, is between $200 and $425. One of the first you’ll come across is paying for a home inspection. Costs to Expect When Buying a Home in Arizonaīefore you even start paying your monthly home costs, you’ll have to contend with a number of costs during the homebuying process. You have to purchase flood insurance ahead of any disasters (policies take 30 days to go into effect), which you can do through the National Flood Insurance Program. ![]() In Arizona, wildfire can alter the landscape which in turn can result in urban and flash flooding, according to the Arizona Department of Emergency and Military Affairs. Arizona’s Department of Insurance has information regarding whether your fire-related loss is covered by your homeowners insurance policy.įlooding, the other hazard in Arizona, is usually not covered by homeowners insurance. In 2021, more than 524,428 acres burned in the state. While you won’t find coastal issues in this landlocked state, you may experience wildfires or flash flooding, two of the insurance hazards in Arizona.Īccording to the Insurance Information Institute, Arizona is the third-most wildfire prone state as of 2021 when it came to number of wildfires. According to, Arizona residents can expect to pay about $1,701 for their annual premium. ![]() In addition to property tax, you’ll have to pay homeowners insurance, which is often rolled into your monthly mortgage payment as part of your escrow account. The money collected goes to these districts to help pay for regular expenses as well as day-to-day operations. The average effective property tax rate in Arizona is 0.51%, but fully depends on the county you live in.Īrizona counties collect property taxes that include local jurisdictions, such as school districts, college districts, cities and state. That’s over $1,000 less than the national average. For the latter, Arizona is quite affordable, with the average homeowner paying $1,707 in property taxes. After you calculate your monthly principal and interest payments, you’ll add home insurance and property taxes.
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