Sun City, Arizona, is a unique and popular destination for those seeking an active, outdoor and vibrant retirement lifestyle 7.23 months out of the year. You either shelter in-plACe for a few months and hang up the golf spikes or temporarily move to a cooler climate in Northern, AZ or wherever you call “home”. It’s one of the last few affordable places to move to in the valley. Historically, all age restricted communities have always fared well even in down housing markets. Del Webb’s vision for Sun City is to be known as “an entire community dedicated to leisure and recreation for the active retired adult”, so he made sure to set aside plenty of land for all of the recreational and social activities you could ever want. Luckily there’s also a few other developers like Pulte Homes who have added on to this concept and we now have places like Sun City Festival in Buckeye, Ventana Lakes, Westbrook Village, Arizona Traditions, and more! If you're 45+ (yes, I said 45+ not just 55+) and are considering buying a home, already own a home and are considering selling, or if you recently discovered that you are going to be inheriting a home in Sun City and you need some information about the process. Well, you are in luck. Let’s get into it!
1. Understanding the Community
Sun City has been around since the 60’s. That’s equally awesome and annoying at the same time. On one hand you have some of the absolute coolest, well kept, retro 70’s architecture with a vast array of options for singles or couples. There’s nothing cooler than mid-century modern architecture that’s been pristinely preserved and modestly updated with modern day features. Sun City has a plethora of these hidden gems just waiting for you. However, if you don’t know what to look for in your search you could end up forking over thousands and thousands of dollars that was easily avoidable.
There’s mandatory HOA fee’s that are sometimes negotiable or exempt and cast-iron sewer lines that were laid down more than 60+ years ago that cost approximately $15-$25K to replace and insurance won’t cover.
Not to mention all of the roofs and AC’s that are still original or replaced during the hailstorm of 2011 but are now at the point where they are showing signs of age again. The time to discover all of these material facts is during the inspection period so we can properly negotiate with the seller to have them cover those expenses as much as possible.
There are 3 different types of properties you will find in Sun City.
A. The remodeled or highly updated and super well-kept diamond of the block with an immaculate view and location.
B. The original builder grade home that has been mostly well cared for, doesn’t have new bathrooms or kitchens but everything is still functional and useable. Could it use a few updates? Sure. Could you move in right away and use everything? Absolutely.
C. You wouldn’t let your toddler walk around on the ground. If you dropped a cookie, it wouldn’t matter how quickly you picked it up. It’s going in the trash. Truly, anything that needs a lot of repairs, updates and issues. No matter what, there is always a buyer for every single type of property in Sun City as long as you price it correctly.
2. Age Restrictions
One of the most crucial aspects to understand before purchasing a home in Sun City is the age restriction. In Sun City proper, at least one resident in the household must be 55 years of age or older, and no one under the age of 19 can live in the community permanently, visiting children may stay a maximum of 90 days in one year. There are a few communities that have the 45+ age restriction instead of the 55+. Sun City Grand in Surprise, AZ is one of the largest and best located options where you only need to be 45+.
3. Types of Homes Available
Sun City offers a variety of housing options, including single-family homes, patio homes, garden apartments, and condos. There is a style for everyone’s taste and budget. Absolutely none of which are more than 1 level and you won’t find any sunken living rooms or troublesome front entry way steps either. You will come across the occasional two-story lookouts above the patio on those prime golf course lots. Your doctor’s office might have a second level too, but don’t worry they’ll have an elevator.
4. Affordability, Cost of Living & Taxes
One of the major draws of Sun City is its affordability. Home prices in Sun City are generally lower than the national average, making it an attractive option for retirees on a fixed income. Additionally, Arizona’s lack of a state tax on Social Security benefits and the relatively low property taxes makes it an economically viable place to live. If you don’t like paying taxes, you’ve come to the right place! Real Estate taxes are much lower because you don’t have to pay for all of the stuff you don’t use! However, there are HOA fees in certain areas, yearly Recreation Center Fees, Capitalization Improvement/Preservation Fee’s. None of these dues/fees are usually wasted as Sun City is known for being well organized with articulate finances, just like your grandpa.
HOA Fees: While Sun City doesn’t have traditional homeowners’ association (HOA) fees, it does have a Recreation Centers of Sun City (RCSC) fee. This fee, which is mandatory for all residents, grants access to the community’s numerous recreational facilities, including golf courses, swimming pools, fitness centers, and more.
Annual Property Assessment – $575/year/property (as of January 1, 2024)**
Every Deeded Real Estate Owner of a Sun City property, or their successor, has signed a Facilities Agreement that obligates them to pay an annual property assessment whether or not they occupy the property or use the recreational facilities.
This fee is typically paid by the buyer when you purchase a home.
Preservation & Improvement Fee – $4,000/occurrence (as of January 1, 2022)
A Preservation and Improvement Fee shall be imposed on the purchase, acquisition, transfer, inheritance, gift or any change in ownership of legal or beneficial interest in the title to property located in Sun City, Arizona pursuant to any deed, contract for sale, will or other instrument or document transferring an interest in such property, so long as the original payor of said Preservation and Improvement Fee no longer retains a majority ownership interest in the property.
Sun City has a Preservation & Improvement Fees which is currently $4000 and some neighborhoods having what they call a Capitalization Improvement Fee which could easily range from $300-$5500+ and don’t forget about transfer fees. Lucky, AZ state law requires transfer fees to be capped at $400. Guess what happened in January of 2024? As of January 2024, there is now a brand-new $1000 Capitalization Improvement Fee in addition to the $4,000 Preservation and Improvement Fee. We’ve usually got a random $250 document transfer fee thrown in for good measure as well.
In a slower market a buyer has plenty of leverage to ask the seller to cover these fees. You might not come to an agreement on a lower price but if the buyer is able to get the seller to cover these thousands of dollars in fees, it will free up a lot of money when it comes to the closing table. As a seller, it is very important to know and understand these fees and who is required to pay what. Knowing about them is more than half the battle, using them in your negotiation is the other 88%.
Who pays these fees? The buyer or the seller? Well, all of the fees are negotiable except for a Resale Disclosure Fee. If there’s anything labeled as a Resale Disclosure Fee, then the seller must pay it under Arizona Law. Other than that, every mandatory HOA fee can be paid by either the buyer or the seller. They just have to be paid.
Buy, Tear Down, Rebuild
If you’ve got the bank roll and you don’t want to keep the lower ceilings, narrower hallways and split floor plan but you want a perfect golf course view in Sun City. There’s really only one option. Find it, destroy it and start over from scratch. I’ve noticed that this trend is becoming more and more popular in Sun City proper. Make sure you use a trustworthy local contractor.
Conclusion
Buying a home in Sun City, Arizona, is an excellent option for those looking for an affordable, active, and social retirement lifestyle. With its wide range of amenities, low cost of living, and strong sense of community, it’s no wonder that Sun City continues to be a top choice for retirees. By understanding the community’s unique aspects and carefully considering your needs, you can find the perfect home to enjoy your golden years in this vibrant desert oasis.
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