Closing costs for selling your AZ house can sometimes come as a surprise for many first-time home sellers and often total around 10% of the total selling price. Here are many of the most common expenses to keep in mind:
- Real estate agent commission – between 5 to 7% of the selling price of your property, which is the broker’s cost to sell your home.
- Escrow fees – for escrow agent handling the transaction, split equally between buyer and seller and will cost several hundred dollars.
- Recording fees – this verifies that your mortgage has been paid off (released) by the sale proceeds and runs about $20 to $150.
- Owner’s title insurance – in some cases, the seller will provide a policy of title insurance for the home buyer. The cost depends on the sales price of the home and can range from $300 into the thousands.
- Prorated property tax and HOA fees – you are responsible for paying these amounts due up to the day of closing.
- Termite inspection – typically required by lender and costs around $200 to $300
- Home inspection – $250 to $500. If there are problems with the home, you may need to have these issues corrected before you the buyer will accept the terms of the purchase contract.
- Home warranty for buyer – many homes are sold with a home warranty, which guarantees the buyer all of the mechanical and electrical appliances are working and will continue to work during the first year of ownership.
- Additional buyer credits – in certain situations, some sellers give credits to buyers for things that do not work or are aging in their home. The cost for this will vary greatly.
- Unpaid liens or HELOC – at closing, the seller needs to pay off any liens or home equity line of credit (HELOC) related to the property being sold.
