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5 questions to evaluate when purchasing Arizona real estate

A tax deferred 1031 exchange in real estate allows investors to maximize leverage.

Arizona real estate

Even though you think you have found the home of your dreams, it’s important to look at the overall picture and affirm you haven’t overlooked something that could be a costly pitfall. When purchasing Arizona real estate, here are 5 questions you should evaluate when shopping for a new home:

1. Do I qualify for the loan?
Many first time homeowners will fall in love with an Arizona home, and then find out they don’t qualify for a loan to purchase. Before looking at Arizona real estate, talk with a loan officer FIRST and find out how much you are expected to bring as the down payment, the amount needed for closing costs and what type of home you are qualified to buy. (for example, certain manufactured homes won’t qualify for a particular loan) Knowing how much you quaify at the beginning allows you to narrow your focus, saves time and makes you a more appealing buyer.

2. Is this the right neighborhood for me?
Evaluating certain neighborhoods before looking at Arizona real estate is crucial in the home buying process. Examining in-depth neighborhood profiles can be done online or by an experienced Arizona realtor. Factors to consider are property taxes, commute time for work and errands, median age, and safety. It won’t matter how much a home is perfect for you, if the neighborhood has a poor quality of life.

3. Can I really afford this home?
The house many be in your price range and have an affordable mortgage payment, but there are additional expenses that can sometimes shock first-time homeowners. Details you should analyze include: price fluctuations with property taxes, monthly utility costs, and condo or homeowners association dues. Failure to budget for additional costs can break your bank if you don’t plan for them.

4. Will my furniture fit?
There is nothing worse than moving into your “dream home” and then discovering that your bed won’t fit in the bedroom, or your living room will now be overcrowded with furniture. When looking at Arizona homes, always measure the dimensions of each room. Comparing square footage and visualizing how your furnishings will look in a space may keep you from spending money on new furniture that wasn’t in the budget.

5. Are there any major flaws with the home?
It’s necessary (and usually required) for homeowners to have a home inspection before the close of a sale. Many homeowners let emotions take control and miss huge problems that will be expensive to fix in the future. If the inspector finds issues such as poor wiring, weak foundation, mold or termite damage, negotiate with the seller to see if they will fix the problems. If not, it’s probably wise to say goodbye and keep looking.

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