What Are Closing Costs When Selling A Home In Phoenix

What Are Closing Costs When Selling A Home In Phoenix

Are You wondering what are closing costs are when selling a home in Phoenix?

Seller closing costs typically are approximately 1% of the sales price.  This does not include Realtor fees.

    Seller Closing CostsSelling a house is not an easy task even in the best of markets.  Some closing costs can be negotiated between the buyer and seller and some can not. In Arizona, some title companies “bundle” their fees within their fee structure while others identify each charge individually.

Keep in mind that a buyer may ask the seller to contribute towards buyer closing costs. This may be a dollar amount of a percentage of the sales price.  Sellers should understand their closing costs plus any additional seller concessions they agreed to when anticipating their net proceeds.

When selling a home in the Phoenix area, be sure to hire a great Realtor to help you get the most money for your home.  Not all agents are created equally!  Be sure you understand how to get your home ready to sell!

Here are some sample fees based on the sale of a $275,000 home in the Phoenix area. Costs will vary depending fees charged by a Home Owner's Association (HOA).  Seller's loan payoff (if any) will vary by seller.

When a home is sold, there are closing costs associated with the sale.  Seller Closing costs will be charged whether you use a Realtor or sell the house yourself.

Realtor Fees - This is the fee a Realtor will charge to sell you home.  These fees are negotiable.  Keep in mind the agent with the lowest commission fee may not get you the most money for selling your home.  To sell a home for the most amount of money, your house first needs to be in great selling condition.  You want an experienced agent who will provide recommendations to get your house ready to sell.  You want someone who will be honest with you about the condition of your house.

As a seller, you want an agent experienced in negotiation.  Not only does the agent need to negotiate with you regarding commissions, they need to negotiate with the buyer's agent. There are three key negotiating components to negotiate on a house sale.  First, the agent needs to be able to negotiate with the buyer's agent regarding price, closing date or any other key items in the initial purchase contract.  Once the buyer completes a home inspection, there may a request for the seller to make repairs.  This is, in fact, more negotiation.  The next negotiation may be the appraisal if the appraisal does not meet the contract price.

Some discount brokerages may give you a percentage to sell your house, but be sure to ask about any fees.  There is a new trend for real estate companies to buy a house directly from the owner for a quick close.  This may work for some homeowners, however, you likely are receiving less for your home than you would if you listed with an experienced Realtor.  You typically get the most money for your house when it is exposed to multiple buyers.

Owner's Title Policy - This is a title policy that the seller buyers for a home buyer. This policy guarantees the buyer clear title to the house.  If, for example, a year after the sale, someone contacts the buyer and claims rights to the house.  If he/she can prove legal ownership of the property, that second owner may be due proceeds from the sale.

Title or Escrow Fees - In Arizona, we use a Title or Escrow company as a neutral third party to handle the sale of a property.  The title company will conduct the title search, get fees due from a Home Owner's Association (HOA), ensure the HOA is paid monies due from the seller at closing.  They also request the Covenants, Conditions & Restrictions (CCRs) from the HOA and ensure the information is sent to the buyers.  The title company will also hold the earnest money, receive funds from the buyer and distribute funds to the seller.

Seller Loan Payoff   - The title company will obtain the loan balance(s) on the seller's loan and send payment to the lender(s) to pay the loan in full.

Any other Lender charges - Lender's pay have fees related to providing loan pay-off.

Home Warranty  - If the seller has agreed to purchase a home warranty for the buyer, the title company will send payment to that company.  Typically in Arizona, the home warranty is an item on the purchase contract and negotiated between the buyer and seller.  The amount the seller will pay for the home warranty can also be negotiated.

Home Owner Transfer Fee - Many HOAs will charge a fee for transferring the name on a property from the seller to the buyer.  This can be paid by the buyer, seller or split between the two.  This too is part of the purchase contract HOA Addendum and is negotiated at the tie a purchase offer is made.

Seller Disclosure Fees -  An HOA will charge the home seller a fee to provide the buyer the Covenants, Conditions, and Restrictions (CCRs).  These can be provided in paper or some today send a CD to the buyer with the rules of the community.

Outstanding HOA Dues - If a seller is behind on HOA dues, these will be collected at the tie of the sale of the property.  Also, many HOAs have someone drive by a property once it is under contract to look for any violations of the CCRs. This type of violation could include too many weeds in a yard, a fence or gate in disrepair, etc. Additionally, the HOA is looking for anything they that puts the seller in violation of the CCRs.  These items need to be resolved prior to the sale.  If the property owner has an outstanding fine from previous violations, this would need to be paid as well.

Courier Fees - Fees charged to send the loan payoff back to a lender, loan documents from the lender to the title company, etc.

Recon Tracking Fee -  A Recon tracking fee is charged to ensure the lender records the payoff loan and releases the lien on the property.

Are You wondering what are closing costs are when selling a home in Phoenix? This list will help you understand what to expect as you consider selling your house.    Every sale is different so fees will vary by sale and seller.  Not all sellers have loans, not all homes are in HOA communities.  Your Realtor can provide an estimate of your sales proceeds specific to your home. The key question for most sellers is how much will I net from the sale of my property.

Wondering what your home is worth?  Click here for an instant home valuation.

Looking for ideas on QUICK FIXES to your home? Looking for inexpensive ideas to increase your home value?  Click above.

To get answers about real estate, contact Shirley Coomer at Keller Williams Realty.  For most of us, our home is our most important asset.  We need to sell for top dollar.  You need someone experienced in sales and marketing.

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Phone: 602-770-0643
Dated: March 17th 2017
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