The buyer and seller closing cost guide.

In Arizona, closing costs typically run 1-3% of the purchase price for buyers and 6-8% for sellers (most of that is the agent commission). Here is what each side actually pays for, and where the surprises hide.

Buyer costs

Lender fees: origination, underwriting, appraisal, credit report
Prepaid items: first-year homeowners insurance, property tax escrow, prepaid interest
Lender's TITLE policy (required by the loan)
Half of the escrow fee (Arizona convention)
Recording fees for the deed and deed of trust
HOA transfer and disclosure fees, when applicable

Seller costs

Real estate commissions (the largest line item)
Owner's TITLE insurance policy for the buyer (Arizona custom)
Half of the escrow fee
Mortgage payoff, plus any prepayment fees and per-diem interest
HOA transfer disclosure fee, capital contribution if required
Prorated property taxes through the closing date
Negotiated repair credits or seller concessions

Surprises to plan for

HOA capital contributions and transfer fees can total $500-$1,500
Property tax prorations can land either way depending on the closing month
Wire fees, courier fees, and notary fees are small but stack up
If the loan changes terms late, prepaids and escrow reserves shift

How to control the number

Ask for a preliminary Estimated Settlement Statement from escrow as soon as the file is open. Review it the day it lands. Most surprises at signing are simply line items nobody checked early.

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