Arizona Home Buying Closing Costs: What to Expect in 2024

Closing costs for buyers in Arizona are about 2%-5% of the home’s contract price. Although sellers are expected to pay around 6-10% of the home’s purchase price. Exact closing costs depend on a variety of factors, such as the type of loan buyers choose, the value of the home, any sale contingencies written into the purchase agreement, and local laws that determine closing fees.

Key Takeaways

  • Closing costs range 2-5% of home price for Arizona buyers
  • Sellers pay around 6-10% of sale price in closing costs
  • Exact fees depend on multiple factors like loan type and price
  • Buyers handle lender charges, inspections; sellers cover transfer taxes
  • Average home closing time frame is 30-45 days in Arizona
  • Shop around and negotiate to reduce closing expenses

What are Closing Costs in Arizona

Closing costs refer to various administrative fees and taxes charged to execute the real estate transaction and transfer ownership. Both home buyers and sellers have to pay these recurring closing charges.

Some common closing costs in Arizona include:

  • Title fees – For title search, insurance, curative work
  • Escrow charges – By third-party escrow companies
  • Recording charges – To record the deed with county
  • Transfer taxes – State and local transfer duty
  • Commissions – For real estate agents
  • Lender fees – Origination, application, underwriting fee
  • Prepaids – Home insurance, property taxes, HOA dues
  • Inspections – Termite, sewer, structural inspection
  • Appraisal fee – For home appraisal report
  • Credit check – For mortgage loan approval

These fees can vary significantly based on the specific transaction, property location, lender policies, and more.

Also read: How Much are Arkansas Home Buying Closing Costs

Different Types of Closing Costs

There are two main categories of closing costs in a Arizona home sale:

Buyer’s Closing Costs

These costs are paid by the home buyer, including:

  • Origination and underwriting fees
  • Appraisal and credit report fees
  • Lender’s title insurance premiums
  • Escrow charges
  • Home inspection and survey fees
  • Recording fees and transfer taxes

Prepaid recurring costs like homeowners insurance premiums, property taxes, etc.

Seller’s Closing Costs

These costs are owed by the home seller:

  • Agent commissions
  • Payoff of existing loans and liens
  • State/local transfer taxes
  • Title search and insurance costs
  • Legal fees
  • Escrow fees
  • Document preparation charges
  • Recording fees

Also read: What to Expect for Nevada Home Buying Closing Costs

Factors Influencing Closing Costs in Arizona

Closing costs can vary significantly from transaction to transaction in Arizona due to these key factors:

  • Home Price – Higher priced properties have higher taxes and fees
  • Down Payment – Lower down payments have higher loan fees
  • Loan Type – FHA and VA loans often have higher upfront mortgage insurance
  • Lender – Each charges different origination/underwriting fees
  • Credit Score – Lower scores increase loan fees and interest rates
  • Location – Cities have higher transfer taxes and fees
  • New Build vs Resale – New builds may have higher fees
  • First Time vs Repeat – First timers may save on title insurance

Who Pays Closing Costs in Arizona

Customarily, the buyer pays their loan fees, title searches, and inspections while the seller covers transfer taxes and commissions. However, the purchase agreement determines the exact split of who pays which closing fees.

It is common practice in Arizona for buyers and sellers to divide the closing costs, with buyers paying around 2-5% and sellers paying 6-10% of the final sale price of the home.

Who Pays Closing Costs on FSBO in Arizona

In Arizona, both the buyer and seller typically share closing costs in a For Sale By Owner (FSBO) transaction. However, the breakdown differs from traditional sales. Sellers usually pay less, covering fees like recording and escrow, while buyers handle loan-related costs and potentially some seller concessions. Remember, specific costs can be negotiated in the purchase agreement.

Also read: Closing Costs in Louisiana: A Buyers and Sellers Guide

How Much are Closing Costs in Arizona

Expect to pay 2% to 5% of the purchase price in closing costs. This translates to roughly $8,626 to $21,566 for the median home value in Arizona of $431,330. Closing costs typically range from 6% to 10% of the selling price. For the same median home value, this translates to $34,506 to $43,133.

Here is an estimate of buyer and seller closing costs for different home price points in Arizona:

$100,000$2,000 – $5,000$6,000 – $10,000
$200,000$4,000 – $10,000$12,000 – $20,000
$300,000$6,000 – $15,000$18,000 – $30,000
$400,000$8,000 – $20,000$24,000 – $40,000
$500,000$10,000 – $25,000$30,000 – $50,000
$750,000$15,000 – $37,500$45,000 – $75,000
$1,000,000$20,000 – $50,000$60,000 – $100,000

What is The Average Closing Time On a House in Arizona?

While there isn’t a specific “closing time” for houses in Arizona, the average closing period typically falls within the range of 30 to 60 days, with cash purchases potentially closing even faster.

Here’s a breakdown of the timeframe:

  • National average closing period: 30-60 days with a mortgage [source]
  • Arizona average time to sell a house: 70 days (including both offer acceptance and closing)

This translates to roughly:

  • 35 days: Finding a buyer and accepting an offer
  • 35 days: Closing period

How are Closing Costs Calculated

Closing costs are itemized fees that buyers and sellers owe to various parties to legally transfer property ownership. Exact calculations follow:

  • For Buyers – Origination charges from lenders follow lending formulas based on credit scores, down payment amounts, etc. Third party fees are fixed rates set by providers. Prepaids are calculated off property taxes, insurance premiums, etc.
  • For Sellers – Agent commissions and transfer taxes are percentage-based off the final sale price. Legal and document prep fees follow fixed rate schedules filed by attorneys and title companies. recording and transfer tax charges are also percentage-based.

Buyers and sellers receive a master HUD-1 statement breaking down all calculated closing costs prior to finalising the home sale.

Steps to Prepare for Closing

Buyers and sellers in Arizona can take some key steps to prepare for a smooth closing process when buying or selling a home:

For Buyers

  • Save closing funds needed – from 2-5% of total mortgage
  • Gather identity proof and documents needed
  • Ensure loan approval and interest rates are locked in
  • Complete final walkthroughs
  • Review all closing disclosures sent by lender and title company

For Sellers

  • Review sales contract and comply with contingency terms
  • Gather home records and documents for buyer
  • Give utility account details to buyer
  • Forward any home repair receipts and warranties
  • Review closing statements and wire instructions
  • Gather final funds owed, including commissions

Ways to Reduce Closing Costs in Arizona

Home buyers and sellers can use some key strategies to lower their closing fees in Arizona:

For Buyers

  • Opt for lower rate with lender credits
  • Pay discount points for a lower long term rate
  • Negotiate seller contributions
  • Shop and compare title insurance rates

For Sellers

  • Offer to cover some buyer closing costs
  • Shop multiple agents to reduce commissions
  • Review all title company and legal fee estimates
  • Time sale to maximize profit above new home purchase

How to Avoid Paying Closing Costs When Buying a House

While rare, some home buyers in Arizona may get lucky and avoid paying closing costs using these options:

  • Make a cash offer – Requires no lender and bank fees
  • Find for sale by owner (FSBO) deals – Avoid agent commissions
  • Ask seller to pay all closing costs – Competitive market required
  • Bundle closing costs into loan amount – Increases payment though
  • Negotiate closing credits with lender – May raise interest rate

However, most Arizona properties do require 2-5% closing costs from buyers at minimum. It’s best to budget accordingly.

How to Find a Trusted Real Estate Agent

Tips for finding a trusted real estate agent in Arizona:

  • Get referrals from friends, family, coworkers
  • Check online reviews on Google, Zillow,
  • Look for 5+ years experience with 75+ deals
  • Find an agent who knows your local market
  • Ask about average days on market data
  • Schedule intro calls with 2-3 agents
  • Verify licensing at the Arizona Department of Real Estate
  • Go with someone you feel comfortable with

The right agent guides you through the entire home buying process including help estimating and understanding your closing fees.


In summary, home buyers and sellers in Arizona face thousands in closing costs averaging 2-5% and 6-10% of the purchase price respectively. Final closing fees depend on the home price, loan type, down payment, property location and other deal-specific factors. Understanding what comprises closing costs and who pays what is key to being prepared financially for a real estate transaction. Seeking professional guidance can help optimize these costs when buying or selling property in Arizona.

Frequently Asked Questions (FAQ)

Who pays most closing costs?

In Arizona, sellers typically pay more in closing costs compared to buyers. While buyers pay 2% to 5% of the home’s sale price, sellers can expect to pay 8% to 10%, with a large portion going towards real estate agent commission.

How does closing work in Arizona?

Closing in Arizona, like in most states, involves the buyer and seller coming together to finalize the real estate transaction. This includes signing legal documents, transferring ownership, and exchanging funds. A neutral third party, typically a title company, facilitates the process to ensure a smooth and secure closing.

Is it expensive to buy a house in Arizona?

Closing costs are just one factor impacting the overall expense of buying a house. While Arizona’s closing costs are within the national average, other factors like the property value, loan type, and market conditions all play a role in determining the total cost of buying a house in the state.

Which state has the highest average closing costs?

According to available data, states like Hawaii, New York, and Texas generally have higher average closing costs compared to Arizona. It’s important to note that closing costs can vary significantly even within the same state, so it’s crucial to get specific quotes from lenders and title companies for accurate cost estimation.

What are the typical closing costs for buyers in Arizona?

Closing costs for buyers typically range from 2-5% of the purchase price. On a $300,000 home, closing costs would be about $6,000-$15,000.

What closing costs do sellers pay in Arizona?

Sellers can expect to pay about 6-10% of the home’s sale price. This includes the real estate commission, title insurance binder fee, transfer taxes, legal fees, etc.

Who pays the escrow fee for a real estate transaction in Arizona?

The escrow fee is customarily split 50/50 between buyers and sellers in Arizona.

Does the seller or buyer pay property taxes at closing in Arizona?

Taxes are prorated between the buyer and seller based on occupancy date. The seller pays up to the occupancy date, and the buyer starts paying after.

What is included in origination charges on a mortgage?

Origination charges include lender fees for underwriting, processing, document preparation and more. These charges are paid by the buyer.

How can I estimate my closing costs in Arizona?

Online closing cost calculators can provide estimates. Your lender and real estate agent can also help give estimates specific to the home and loan details. Getting a Loan Estimate early on also helps estimate overall costs.

Who gets the title insurance, buyer or seller?

Both the buyer and seller receive a title insurance policy. The buyer receives an Owner’s Title Insurance Policy while the seller gets a Owner’s Title Insurance Binder.


Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

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