Closing costs are one of the most misunderstood parts of a real estate transaction — whether you’re buying your first home or preparing to sell. And in a market as active as Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, Phoenix, and Paradise Valley, understanding these expenses helps you plan confidently and avoid surprises.

As someone who guides buyers and sellers throughout the Valley, my goal is to make every step clear, predictable, and stress-free. Let’s break down what closing costs really include, who pays what, and how you can plan ahead.

What Are Closing Costs?

Closing costs are the fees and expenses that come with finalizing a real estate transaction. They vary depending on price, loan type, location, and your lender or title company — but in Arizona, they’re generally 1%–3% for sellers and 2%–5% for buyers.

Here’s what actually makes up those numbers.

Closing Costs for Buyers in Arizona

Buyer closing costs typically include items related to the loan, appraisal, inspections, and title work.

1. Loan-Related Fees

• Loan origination fees

• Underwriting fees

• Credit report charges

• Interest prepaid at closing

These vary depending on your lender and loan program.

2. Appraisal & Inspection Costs

• Home appraisal

• Home inspection

• Termite or pest inspection

• Additional inspections (roof, sewer, HVAC), if chosen

These help protect your investment by verifying the property’s condition and value.

3. Title & Escrow Fees

In Arizona, buyers often pay:

• Title insurance (lender’s policy)

• Escrow account setup

• Document recording fees

Title companies ensure a clear, legally transferable ownership.

4. Prepaid Taxes & Insurance

Buyers commonly prepay:

• Homeowners insurance

• Property taxes (depending on timing)

• HOA dues, if applicable

These deposits help fund your new escrow account.

Closing Costs for Sellers in Arizona

Seller costs are typically fewer in number, but the total can be higher depending on your agreement and market conditions.

1. Title & Escrow Fees

Sellers generally pay:

• Owner’s title insurance policy

• Escrow closing fee (split with buyer)

• Recording fees

2. Transfer-Related Costs

These may include:

• HOA transfer fees

• HOA disclosure statement

• Sewer or trash account clearance

• Any city-specific charges

In communities across Gilbert, Chandler, and Queen Creek, HOA-related fees are very common.

3. Additional Seller Costs

Depending on the situation, sellers may also handle:

• Repairs agreed upon after inspection

• Home warranty (if offered to buyer)

• Buyer concessions (if negotiated)

These vary by contract and market conditions.

Who Pays What in Arizona?

While every contract is negotiable, here’s the common breakdown in Arizona:

Buyers typically pay:

• Loan fees

• Appraisal

• Inspections

• Lender’s title policy

• Recording fees

Sellers typically pay:

• Owner’s title policy

• HOA transfer fees

• Escrow closing fees (shared)

• Seller-specific disclosures

A customized strategy determines the final breakdown — something I walk all my clients through step-by-step.

How Much Should You Expect to Pay?

Here’s a simple estimate based on typical Arizona transactions:

Buyers:

3%–5% of the purchase price
(Varies depending on lender fees and insurance/tax timelines)

Sellers:

1%–3% of the purchase price
(Does not include agent compensation or repairs, which vary case-by-case)

These are estimates — but they give you a reliable starting point for planning.

How Buyers Can Reduce Closing Costs

You can lower costs through:

• Lender credits

• Seller concessions

• Shopping different lenders

• Using down payment assistance programs

I help my buyers explore every option to keep upfront costs manageable.

How Sellers Can Reduce Closing Costs

You can save by:

• Reviewing HOA charges early

• Completing repairs proactively

• Comparing title company fees

• Strategically timing your sale

Smart planning means fewer surprises.

FAQs: Closing Costs in Arizona

Q: Can closing costs be rolled into the loan?
A: Some loan types allow it, depending on lender guidelines.

Q: Do buyers or sellers choose the title company?
A: It’s negotiable, but many transactions default to the seller’s choice.

Q: Are closing costs due upfront?
A: Yes — buyers typically pay at closing, and sellers see deductions in the final settlement.

Q: Do closing costs change based on where I live?
A: Yes. HOA requirements, taxes, and local fees vary in different parts of the Phoenix metro.

Q: Can I get a clear estimate before listing or buying?
A: Absolutely — I prepare custom net sheets for sellers and cost breakdowns for buyers.

Why This Matters

Closing costs are one of the final pieces of your real estate journey — and understanding them helps you feel prepared, confident, and fully in control. Whether you’re buying or selling, my role is to guide you through each detail so you always know exactly what to expect.

I’m here to make the process smoother from start to finish.

Thinking About Buying or Selling in the Phoenix Metro Area?

Let’s walk through the numbers together and build a plan that supports your goals with clarity.

📞 480-980-4400
📧 [email protected]
🌐 www.denisehurd.com

Let’s move forward with confidence — together.