From the blog
What Does It Cost to Sell a Home in Arizona?
Arizona sellers typically pay negotiated brokerage compensation, owner's title insurance, escrow and settlement fees, county recording fees, an HOA resale disclosure and transfer fee where applicable, prorated property taxes, and any repairs or concessions negotiated during escrow. Arizona has no state real estate transfer tax, which keeps closing costs lower than in many states. The largest variable is brokerage compensation, which is negotiable and must be agreed in writing before a home is marketed.
What are the line items on an Arizona seller's closing statement?
Brokerage compensation. Negotiated, agreed in writing, and typically the largest single cost. Whether the seller offers compensation to a buyer's broker is a separate decision with real consequences for showing volume.
Owner's title insurance. In most Arizona transactions the seller pays for the owner's policy that insures the buyer's title. The buyer typically pays for the lender's policy.
Escrow and settlement fees. Usually split between buyer and seller by local custom, and negotiable in the contract.
Recording and county fees. Small, fixed, and paid at closing. Arizona has no state transfer tax on residential real estate.
HOA fees. A resale disclosure package fee, a transfer or capital contribution fee, and prorated dues. These add up faster than sellers expect in master planned communities.
Prorated property taxes. Maricopa County taxes are paid in arrears in two installments, so proration at closing is normal and can go either direction.
Repairs and concessions. Negotiated after inspection, and often the difference between the contract price and the number you actually net.
How do I estimate my net proceeds?
Ask for a written net sheet before you list. It starts with the projected sale price, subtracts every cost above plus your existing mortgage payoff, and produces the number that actually matters. Any agent who cannot produce one before listing is not ready to price your home either.
Where do sellers waste money?
Three places, repeatedly. Renovating rooms that do not return their cost, particularly high end kitchen work done specifically to sell. Skipping professional photography to save a few hundred dollars on a listing worth over a million. And overpricing, which costs more than any of it, because homes that require two reductions typically net less than homes priced correctly at launch.
Can I negotiate the commission?
Yes. Brokerage compensation is negotiable and always has been, and it is agreed in writing before marketing begins. The useful question is not only the rate, it is what the marketing plan includes at that rate. Cheap marketing on an expensive home is a false economy.
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Read itFrequently asked questions
Does Arizona have a real estate transfer tax?
No. Arizona does not levy a state transfer tax on residential real estate sales, which keeps closing costs lower than in many states. County recording fees still apply.
Who pays title insurance in Arizona?
By common practice the seller pays for the owner's title policy protecting the buyer, and the buyer pays for the lender's policy. Escrow fees are typically split. All of it is negotiable in the purchase contract.
Are real estate commissions negotiable in Arizona?
Yes. Compensation is negotiable and is agreed in writing before a property is marketed. Compare what each proposal includes, not just the percentage.
How much are HOA fees when selling in Arizona?
Expect a resale disclosure package fee and often a transfer or capital contribution fee, plus prorated dues. Amounts vary by association, and statutory limits apply to some of these charges. Request the figures from your association early, because the disclosure package can take days to produce.
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