10 Major Selling Costs for Sellers in Phoenix

Real Estate Agent with Keller Williams Realty Sonoran Living

How much does it cost to sell a house?

10 Major Selling Costs for Sellers in Phoenix picture of a house

So, what are the 10 Major Selling Costs for Sellers in Phoenix? The cost to sell a house may vary in different markets. And, in the state of Arizona, we do not use attorneys for real estate transactions.  Real Estate agents are licensed to practice contract law as it applies to the sale of residential and commercial real estate.  Additionally, buyer's and sellers certainly can have an attorney review documents and consult as necessary.  However, most buyers and sellers to do not use attorneys, which also helps reduce buying and selling expenses.  But, if any buyer or seller would like an attorney to review any documents related a house sale they can certainly have them reviewed. Here are typical selling costs in Phoenix.



man with question marks around his head - 10 Major Selling Costs for Sellers in Phoenix

#1 Seller Loan Payoff

Once the seller is under contract with a buyer, a copy of the purchase contract goes to the title company.  Also, the title company obtains permission from the seller to get the final loan(s) pay-off.   Additionally, the lender will show the amount of the loan to be paid off by a specific date.

The loan payoff will also include any interest due.  Some lenders may charge a fee to give the pay off information at the time of sale.

#1 Real Estate Agent Commissions

The seller pays for the sales commissions for the selling agent and the buyer's agent.  Additionally, the amount of the real estate commission is agreed to by the seller and the real estate agent when the property is listed.  Commissions are negotiable between the two parties.  Also, different agents have different fee structures and can vary by the amount of work involved in selling the house.

#2 Title Fees

So do the 10 Major Selling Costs for Sellers in Phoenix include title fees? A title company typically handles the process to make sure the title to the property is correctly conveyed. Also, they get the loan information for pay off of the seller's lender.  Additionally, they receive the buyer's earnest money.  They also receive the buyer's loan to buy the property. And they ensure taxes and HOA dues are paid and distribute sale proceeds. Also, the Title company is a neutral third party in the transaction.  Typically, the buyer selects the title company of their choice.




stick figure at at desk 10 Major Selling Costs for Sellers in Phoenix

Title company fees can vary.  However, title companies are regulated by the state and each title company files their rates with the state.  Some title companies "bundle" their fees, providing one escrow fee.  Other title companies my list fees line by line.   Fees can vary also by the services the title company provides.  For example, if a seller would like a mobile notary to come to the home or office, there may be an additional fee for this service.  If the seller has a loan to pay off there may be courier fees to send payoff and final documents back to the seller's lender.

#3 Buyers Title Insurance Policy

In Arizona, the seller buys a title insurance policy for the buyer that ensures the buyer has clear title to the property. The title company conducts a search to make sure the seller is the only legal owner.  They search county court records to find any other legal property owners, any liens or loans on the property.  This insurance policy ensures the buyer that the seller has a clear legal title to sell the property.

#4 Property Taxes

Property taxes in Arizona are paid in arrears, so the seller pays all taxes due up to the date of closing.  If the seller had a loan on the property, their lender would refund any tax money held in their impound or escrow account.

You might also enjoy reading more information about Home Owner Associations

#5 HOA Fees

Typically a Home Owner's Association will charge a seller the cost of sending the Covenants, Conditions & Restrictions (CC&Rs) to the buyer.  This is typically called a Disclosure Fee.  Arizona state law requires the seller to pay this fee.  Once notified by a title company that the seller is under contract to sell the property, the HOA is notified of the pending sale.  Typically the HOA will schedule a drive-by of the property to decide if there are any outstanding HOA violations, such as overgrown shrubs, damaged fencing, etc.  The HOA determines the existing homeowner is in violation of the Covenant, Conditions, and Restrictions (CCR) of the community.  And If so, any corrections need to be made and any fines paid at or before the closing.

If you enjoy reading this, you may also like to read "Selling a house with a Realtor"

For Sale - Sold Sign 10 Major Selling Costs for Sellers in Phoenix

The seller's HOA Fees will be prorated for the dates the seller actually owns the property.  If the seller has paid the HOA fees beyond the closing date, they would receive a credit for the prorated amount at closing.

#6 HOA Transfer Fees

This is a fee the HOA charges to update their records to change the name on the property from the seller to the buyer.  The fee can be paid by the buyer, the seller or split between the two.

#7 Reconveyance Tracking Fee

If the seller has a loan on the property, there is also a reconveyance fee charged by the title company.  This is a service to make sure their lender shows the ownership transfers property and releases their lien on the property.

 #8 Buyer Closing Costs or Credits

Sometimes a buyer will ask the seller to agree to pay some of their closing costs.  This agreement is part of the initial purchase contract.  If the seller agrees to help with buy buyer closing costs, this will be identified as a debit to the seller at closing.

Man with money 10 Major Selling Costs for Sellers in Phoenix


#9 Home Warranty

If the seller has agreed to offer the buyer a home warranty as part of the initial purchase offer, this charge will appear as a debit to the seller on the final settlement statement and paid as part of the closing.

#10 In Closing

So now you know the 10 Major Selling Costs for Sellers in Phoenix.  The costs to sell a house in Arizona will vary from seller to seller. At a minimum, and loans need to be paid, taxes and HOA fees (if any) need to be paid.  There are typically fees for a title company to handle the escrow, complete the title search, receive buyer funds and record the sale with the county.  Buyers and sellers will be asked to give information for the title company in a timely manner.  The title company will verify the identities of the buyers and sellers.

They will ask the seller if they want to have cashier's check made out for any proceeds from the sale or whether the funds should be wired. Title companies stay in constant touch with the buyer's real estate agent and the seller's real estate agent to make sure any addendums to the contract are executed correctly.

The title company follows the directions in the contract to make sure the rights and responsibilities of buyers and sellers are contractually adhered to.  They make sure the sale records with the county to make sure the appropriate legal transfer from the seller to the buyer.

 Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living

Mountain Park Ranch Real Estate


or Text: 602-770-0643 for more Real Estate Information.

Posted by

Shirley Coomer

Keller Williams Realty Sonoran Living


15905 S 46th St, Ste 160

Phoenix, Az  85048




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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Shirley,  Excellent blog and one that buyers and sellers do not realize the cost to buy and sell.  Can I re blog this sometime?


Aug 13, 2019 08:21 AM #1
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Shirley Coomer,

It really is good to have a conversation with your seller prior to closing so they don't get "sticker shock"  when they see the settlement costs!  This post is a good way to start that conversation. 

Aug 13, 2019 11:57 AM #2
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Shirley Coomer

Realtor, Keller Williams Realty, Phoenix Az
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