Confused about Arizona closing costs? This guide breaks down exactly what Phoenix buyers and sellers pay, plus who typically covers each fee in Maricopa County transactions.
Typical Arizona Seller Closing Costs
On a $400,000 Phoenix Home Sale:
| Fee | Amount | Who Pays |
|---|---|---|
| Realtor Commission (6%) | $24,000 | Seller |
| Title Insurance (Owner's Policy) | $1,600 | Seller (Phoenix custom) |
| Escrow/Settlement Fee | $400-600 | Split 50/50 |
| Transfer Tax | $0 | None (AZ has no state transfer tax!) |
| Recording Fees | $50 | Seller |
| HOA Transfer/Docs | $200-400 | Seller |
| Prorated Property Taxes | Varies | Prorated |
| TOTAL | ~$26,250-26,650 |
💰 Arizona Advantage
Arizona has NO state transfer tax, saving thousands vs states like California (0.11%) or New York (up to 2.075%). On a $400K sale, that's $0 vs $4,400-$8,300!
Typical Arizona Buyer Closing Costs
On a $400,000 Phoenix Home Purchase:
| Fee | Amount |
|---|---|
| Lender's Title Insurance | $800 |
| Loan Origination Fee (1%) | $4,000 |
| Appraisal | $500-700 |
| Credit Report | $50 |
| Home Inspection | $400-600 |
| Escrow/Settlement (half) | $250-300 |
| Recording Fees | $100 |
| HOA Transfer Fee (half) | $100-200 |
| Prepaid Items (taxes/insurance) | $2,000-4,000 |
| TOTAL | $8,200-10,850 |
Buyer closing costs = 2-3% of purchase price in Phoenix
Phoenix Custom: Who Pays What
In Phoenix/Maricopa County, local custom dictates:
- Seller pays: Owner's title policy, realtor commission, most escrow fees
- Buyer pays: Lender's title policy, loan fees, inspection, appraisal
- Negotiable: Home warranty, HOA transfer fees, repairs
Cash Sales in Phoenix (No Lender)
Seller Pays:
- Owner's title policy: $1,600
- Escrow fee: $300
- Recording: $50
- Total: ~$1,950 (if selling to cash buyer with no agent!)
Buyer Pays:
- Escrow fee: $300
- Recording: $100
- Total: $400
💡 Save Thousands
Selling to a Phoenix cash buyer like C&D Wholesale eliminates:
✓ $24K realtor commission
✓ Appraisal fees
✓ Lender delays
You pay only ~$2K to close vs $26K+ on MLS!
How to Reduce Closing Costs in Phoenix
- Negotiate seller concessions: Ask seller to pay part of closing (up to 3%)
- Shop title companies: Fees vary $200-500 in Phoenix
- Sell to cash buyer: Eliminate commission + most fees
- Close at month-end: Reduces prepaid interest
- Ask for lender credits: Higher rate, lower upfront costs
Arizona-Specific Rules
No Transfer Tax
Arizona is one of 12 states with $0 state transfer tax. Some cities (like Scottsdale) have none either.
Affidavit of Value Required
Sellers must file with Maricopa County ($44 fee) disclosing sale price for tax assessment purposes.
Community Property State
If married, both spouses must sign all closing docs in Arizona.
ALTA Surveys Not Standard
Unlike Texas, Arizona doesn't require surveys unless lender demands (rare in Phoenix).
Key Takeaways
- Phoenix sellers pay ~$26K on $400K sale (mostly commission)
- Phoenix buyers pay 2-3% ($8-12K on $400K purchase)
- Arizona has NO state transfer tax—major savings
- Cash sales eliminate most fees for both parties
- Negotiate seller concessions to reduce buyer costs
Minimize Your Phoenix Closing Costs
Sell to C&D Wholesale: No commission, minimal fees, we cover most closing costs.
Get Cash Offer