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When buyers begin looking for a home in Arizona, the purchase price naturally gets most of the attention. But Arizona home ownership costs can tell an equally important story—especially when comparing luxury homes, golf communities and second homes.
That’s why I encourage buyers to consider another number: What will Arizona home ownership cost?
Being able to afford a home and deciding that a home represents good value are two very different things.
For today’s buyers, the ownership equation can include property taxes, homeowners insurance, utilities, HOA or community expenses, pool and landscape maintenance, mechanical systems and the improvements a home may need over the next several years.
And in Arizona, some of those expenses deserve particular attention.
Arizona Home Ownership Costs include Property Taxes: Not Just the Purchase Price
Arizona’s property-tax system is different from what many relocating buyers are accustomed to.
In Maricopa County, the Limited Property Value is an important component used in calculating property taxes. Under Arizona’s Proposition 117, increases in that value are generally limited to 5% annually, although certain circumstances can result in different treatment.
That is one reason I encourage buyers to review the actual tax history and valuation of the property they are considering rather than simply estimating taxes based upon the purchase price.
It is especially important for buyers relocating from another state not to assume Arizona’s system works the same way as the one they are leaving.
Insurance Deserves an Earlier Conversation
Homeowners insurance used to be something many buyers addressed fairly late in the transaction.
Today, I think it deserves to be considered much earlier.
The Arizona Department of Insurance and Financial Institutions reports that homeowners insurance premiums have been increasing across the state. Among the factors are higher construction and labor costs, increasing home values, storms and natural-disaster exposure.
Wildfire risk is another consideration, particularly for properties near open desert, mountain or wildland areas. Arizona officials are actively studying insurance availability and affordability in areas with heightened wildfire risk.
That doesn’t mean buyers should be alarmed.
It means get the information early.
An insurance professional can help a buyer understand the insurability of a particular property, appropriate coverage, replacement costs, deductibles and estimated premiums before those questions become a surprise late in the transaction.
Energy Efficiency and Arizona Home Ownership Costs
Beautiful finishes photograph well.
Efficient HVAC systems usually don’t.
But after someone owns an Arizona home through a summer, those less glamorous features can become very important.
The age and efficiency of HVAC systems, windows, insulation, orientation of the home, solar exposure, window coverings, pool equipment and smart-home energy controls can all affect energy consumption.
Even the utility rate plan can matter. For example, some APS residential plans charge different rates depending upon when electricity is used, with higher-cost periods during summer weekday afternoons.
So when comparing two homes at similar prices, the home with newer mechanical systems and better energy efficiency may offer value that isn’t immediately obvious in the listing photographs.
Pools, Landscaping and the Arizona Lifestyle
The features many of us love about Arizona living also come with ongoing care.
A pool requires equipment, electricity, water, chemicals and maintenance. Desert landscaping still requires irrigation and maintenance. Larger properties may have multiple HVAC systems, extensive outdoor living areas, water features or sophisticated home-automation systems.
None of those things makes a property undesirable.
Quite the opposite—they may be exactly why someone loves the home.
The important question is simply whether the buyer understands what is involved in owning it.
For Arizona Home Ownership Costs, Community Costs Matter, Too
For buyers considering golf and lifestyle communities such as Rio Verde, Tonto Verde, Trilogy at Verde River and communities throughout North Scottsdale, there may be another layer to the ownership equation.
Depending upon the community and property, buyers may want to understand HOA assessments, club memberships and community fees can all become part of the overall Arizona home ownership costs a buyer should understand before making a decision.
Two homes with similar purchase prices can have very different ownership structures.
Understanding those differences makes it much easier to compare them fairly.
Don’t Forget the Things You Can’t See
One of the most valuable questions a buyer can ask is:
Besides your normal Arizona home ownership costs, what will this house likely need over the next five years?
Consider the age and condition of:
- HVAC systems
- roof and underlayment
- pool equipment
- water heater
- windows and doors
- irrigation systems
- appliances
- exterior finishes
- major smart-home or mechanical systems
A beautifully updated kitchen may capture your attention, but knowing that the HVAC systems, roof and pool equipment have recently been replaced can be equally valuable.
Conversely, a home priced below its competition may not necessarily be the better value if significant capital improvements are approaching.
Affluent Buyers Still Care About Value
Having the financial ability to purchase a home doesn’t mean ownership costs are irrelevant.
In my experience, thoughtful buyers want to understand what they are purchasing—not only what it costs today, but what ownership is likely to look like tomorrow.
That becomes especially important when comparing luxury homes, second homes and properties in Arizona’s golf and lifestyle communities.
The best question may not be:
“Can I afford this home?”
It may be:
“Does Arizona home ownership costs for this home make sense for the lifestyle and value it gives me?”
Looking at Arizona home ownership costs alongside the purchase price can give buyers a much clearer picture of the property’s long-term value. That’s a much better conversation to have before you buy.
If you’re considering a move to Rio Verde, Tonto Verde, Trilogy at Verde River, North Scottsdale, or Troon North, I would be happy to help you compare not only the homes, but the lifestyle and ownership considerations that come with them.
Monica Condomitti
Luxury Real Estate Advisor
MC Luxury Real Estate at Coldwell Banker
Life’s Next Adventure
