By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

The affordability case is real and the tax picture is better than most relocation content explains — Arizona limits how fast the value used for primary property taxes can rise, and the state imposes essentially no real estate transfer tax, which is a genuine contrast with New York. Two things a Long Island buyer won't think to ask about. Water supply is the defining regional issue and whether a property sits within a provider with an assured supply designation is a real question. And pools, which are common here, carry statutory barrier requirements, insurance implications, and maintenance costs that a New York buyer has no framework for.

Start With the Long Island Sale

At twenty-four hundred miles, coordinating simultaneous closings is impractical and the Long Island transaction sets the budget.

Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.

A seller who establishes Arizona residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.

For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.

Sell first.

The Tax Picture Is Better Than the Headline

Arizona property taxes are meaningfully lower than Nassau County's, and two structural features are worth understanding rather than just asserting.

Arizona limits how fast the assessed value used for primary property taxes can rise. The state maintains a limited value for that purpose, with statutory constraints on annual growth. That produces a different dynamic than Nassau's reassessment cycle, where a county-wide reassessment can move a homeowner's taxable value substantially. For a long-term owner, the constraint compounds.

And Arizona imposes essentially no real estate transfer tax. For a New York seller accustomed to paying four dollars per thousand — plus, in Queens, a city transfer tax on top — this is a genuine and unmentioned contrast. It doesn't affect the purchase directly; it matters when the property is eventually sold, and it's the opposite of the situation in Washington or San Francisco, where sellers carry substantial transfer costs.

Rates, limits, and exemptions are set at state and county level and change. Pull the actual current tax bill on any specific property rather than relying on averages, and confirm with the county assessor.

The Water Question

This is the defining regional issue and it appears in no relocation content, including the version this replaces.

Arizona regulates water supply in designated management areas covering the Phoenix metro, and new residential development generally must demonstrate an assured water supply — a showing that water will be physically, legally, and continuously available for a hundred years. In recent years, groundwater modeling in parts of the region has affected the approval of new subdivisions relying on groundwater rather than on a municipal provider.

For a buyer, the practical questions are narrow and answerable.

Which water provider serves the property, and whether that provider holds a designation of assured water supply. Established municipal providers across the metro generally do.

Whether the property relies on a private well, which raises an entirely different set of questions a New York buyer has no framework for, and which belongs with local counsel before an offer.

What the water bill actually runs, since desert landscaping and irrigation costs differ from Long Island.

None of this makes buying in the Phoenix metro imprudent — millions of people live there and the established municipal systems are well developed. What it means is that a buyer should know which situation a specific property is in, and that's a question worth asking rather than assuming.

Pools Are Not a Feature, They're a System

The original called pools an inspection consideration. They're more than that, and a Long Island buyer has no reference point.

Arizona has statutory pool barrier requirements — enclosure, gate, and latch standards intended to prevent access by young children, with local jurisdictions layering their own rules. A property with a pool that doesn't meet current requirements may need work, and a buyer should know before offering rather than after inspection.

Insurance treats pools differently. Carriers may require specific safety features, may exclude certain diving configurations, and generally price a pool property differently. Confirm coverage on a specific address.

Maintenance and running costs are real. Chemicals, cleaning, pump and filter replacement, resurfacing on a cycle, and the electricity to run it through a long hot season. A buyer comparing two similar homes where one has a pool should compare total carrying costs rather than purchase prices.

And the inspection is separate. Pool equipment, plumbing, and surface condition are typically inspected by a specialist rather than the general home inspector.

Pools are a genuine benefit in this climate. They're also a system with its own costs and obligations, and the useful version of that conversation happens before an offer.

Heat Is a Line Item

The original treated climate as lifestyle. Financially, it's a cost structure.

HVAC carries the load that heating carries on Long Island, in reverse and for longer. Summer utility bills are substantial, and a system's age and efficiency matter more than a New York buyer expects. Ask what the actual bills have been over a full year rather than assuming.

Roof life is shorter under sustained heat and intense sun, and roofing systems common in the Southwest differ from what a Long Island buyer knows. Ask about the roof's age, type, and last service.

Exterior materials weather differently — paint, seals, and anything exposed to sun degrade faster.

Termites are a genuine consideration in Arizona, and wood-destroying organism inspections are close to standard in transactions there. That's unfamiliar to a New York buyer and worth expecting rather than being surprised by.

Buying Works Differently

Arizona is a title and escrow state. A title company handles the closing and issues title insurance, and no attorney is necessarily involved on either side. In New York, contract drafting and negotiation are reserved to licensed attorneys and the seller's attorney runs the closing — so this is a real adjustment.

A buyer who wants legal review retains counsel separately and pays for it. Worth deciding before the transaction starts rather than partway through. The fuller picture of what the attorney handles on the New York side describes what you'd be giving up.

HOAs are extremely common across the metro, particularly in newer master-planned developments, with monthly or annual dues and covenants governing exterior appearance, landscaping, and use. Read them before offering. Where a community association is involved, request its financial statements and any special assessment history — the same diligence that applies to any association purchase.

Solar is common in Arizona given the climate, and a system's ownership structure determines whether it complicates the transaction. The full treatment of selling a home with solar covers the distinctions, and they apply to buying as well.

A Worked Example

Consider a composite case — a Nassau County household relocating for a Phoenix-area position, selling a colonial that comped near $1,070,000.

Three things they learned by asking. The two properties they were weighing were served by different water providers, and they confirmed the designation status of each rather than assuming — a question their New York experience gave them no reason to think of.

The home they preferred had a pool. The barrier didn't meet current requirements, which surfaced before their offer rather than during inspection, and became a negotiated item.

And their summer utility estimate was materially higher than they'd budgeted. They asked for twelve months of actual bills, which changed their view of what the home cost to run.

On the New York side they sold first. Their attorney's early title review found an old mechanic's lien from a 2009 contractor dispute, cleared in five weeks before listing.

Where to Start

Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.

On the Arizona side: ask which water provider serves any property under consideration and whether it holds an assured supply designation. If there's a pool, ask about barrier compliance, insurance, and running costs, and budget for a specialist inspection. Get twelve months of actual utility bills. Ask about the roof's age and type. Expect a termite inspection. Read HOA documents before offering. And decide whether you want your own counsel, since none comes with an escrow closing.

Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value.

The Honest Bottom Line

Phoenix is substantially more affordable than Long Island, property taxes are genuinely lower with a structural constraint that helps a long-term owner, and Arizona's near-absence of transfer tax is a real advantage nobody mentions.

What a Long Island buyer won't think to ask about is water and pools. Neither is a reason to avoid the market — millions of people live well there — but both are questions with definite answers that a New York buyer has no framework for, and both are better asked before an offer than discovered after one.

For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.

This is general information, not legal, tax, insurance, or financial advice. Arizona property tax provisions, water supply regulation, pool safety requirements, and insurance availability vary and change. Confirm current specifics with an Arizona attorney, the county assessor, the relevant water provider, and a licensed insurance professional, and confirm New York specifics with a licensed New York real estate attorney and a CPA.

FAQs

Are property taxes lower in Arizona than on Long Island?

Meaningfully, and two structural features explain it. Arizona limits how fast the assessed value used for primary property taxes can rise, with statutory constraints on annual growth — a different dynamic than Nassau's reassessment cycle, where a county-wide reassessment can move taxable value substantially. Arizona also imposes essentially no real estate transfer tax, unlike New York's four dollars per thousand plus the city tax in Queens. Pull the actual current bill on a specific property rather than relying on averages.

What should I know about water when buying near Phoenix?

Which provider serves the property and whether it holds a designation of assured water supply — a showing that water will be physically, legally, and continuously available for a hundred years. Arizona regulates supply in designated management areas covering the metro, and groundwater findings have affected approval of new subdivisions relying on groundwater rather than a municipal provider. Established municipal providers generally hold designations. A property on a private well raises entirely different questions that belong with local counsel before an offer.

What do I need to know about buying a home with a pool in Arizona?

More than a New York buyer expects. Arizona has statutory pool barrier requirements covering enclosure, gate, and latch standards, with local jurisdictions layering additional rules — a pool that doesn't meet current requirements may need work. Insurance treats pools differently, sometimes requiring specific safety features or excluding certain configurations. Running costs are real: chemicals, cleaning, equipment replacement, periodic resurfacing, and electricity through a long hot season. And the pool is typically inspected by a specialist rather than the general inspector.

How does the heat affect the cost of owning a home in Phoenix?

It's a cost structure rather than a lifestyle note. HVAC carries the load that heating carries on Long Island, in reverse and for longer, so summer utility bills are substantial and system age and efficiency matter more than New York buyers expect — ask for twelve months of actual bills. Roof life is shorter under sustained sun and heat, and Southwestern roofing systems differ from what a Long Island buyer knows. Exterior materials weather faster. And termite inspections are close to standard in Arizona transactions.

Does Arizona require an attorney to buy a home?

No. Arizona is a title and escrow state — a title company handles closing and issues title insurance, with no attorney necessarily involved on either side. For a New York seller accustomed to counsel drafting the contract, negotiating, and running the closing, that's a real adjustment. A buyer who wants legal review retains an attorney separately and pays for it, which is worth deciding before the transaction starts. HOAs are also extremely common across the metro, and their documents deserve review before offering.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com