The True Cost to Sell a House in Arizona: Seller Closing Costs Revealed

Published January 26, 2023

Written by Steve Nicastro
Edited by Jamie Ayers

Cost to sell in Arizona | How much are closing costs? | Other costs | How to save | Closing cost calculator

The average cost to sell a house in Arizona is approximately 6.39% of a home’s final sale price.

That means it typically costs Arizona sellers at least $25,616 in total fees to sell a home priced at $405,983 (the average Arizona home value), not including any of the potential costs of preparing a home to sell.

The biggest costs of selling an Arizona house include realtor commission (5.43%) of the sale price) and seller closing costs (1.0%).

Thankfully, you can save thousands on your home sale by using an agent matching service like Clever Real Estate. Clever has negotiated a reduced listing commission of 1.5% – far lower than the Arizona average of 2.80%.

Here’s a complete breakdown of the costs of selling a house in The Grand Canyon State.

Average cost of selling a house in Arizona

Fee type	Average fee	Average cost
Realtor fees	5.43%	$22,045
Closing costs	1.0%	$3,571
Total costs	6.39%	$25,616

*Note: Numbers are rounded off and may not be 100% precise.

It’s cheaper to sell a house in Arizona compared to other states, at least on a percentage basis.

The table above shows that it costs 6.39% when factoring in realtor commissions and closing costs. That’s lower than the national average of 6.53%.

However, given Arizona’s soaring home values, it’s technically more expensive to sell on a dollar basis. Arizona sellers face an average cost to sell of $25,616, higher than the national average of $21,202.

Of course, home values vary quite a bit across the state. It likely costs Phoenix home sellers ($430,465 average home value) more to sell a home than homeowners in Sierra Vista ($277,699), for example.

Here’s a list of potential costs at various price points, including realtor fees and seller closing costs.

Sale price	Realtor fees (5.43%)	Closing costs (1.0%)	Total cost
$550,000	$29,150	$4,950	$34,100
$450,000	$23,850	$4,050	$27,900
$350,000	$18,550	$3,150	$21,700
$250,000	$13,250	$2,250	$15,500

*Costs assume a sale price of $405,983.

Factors impacting Arizona home sale costs include:

Typical realtor commission rates in your area

While Arizona has a state-wide average rate of 5.43%, rates may be higher or lower depending on your local market. Arizona home sellers typically cover both the listing agent and buyer’s agent commission.

How you find a realtor

You can potentially save thousands in Arizona realtor fees by connecting with an agent through an agent matching service.

For example, Clever Real Estate has pre-negotiated a 1.5% listing agent fee with agents in its network – much lower than the Arizona average listing commission rate of 2.71%.

Optional expenses

You may or may not need to pay other expenses to sell your home, like home staging, major home repairs and improvements, and a deep cleaning service.

Your negotiated contract

Home buyers might request you to pay for part or all of their closing costs, to cover the cost of a home warranty, or for repair credits.

Here’s a closer look at your expected home sale costs.

1. Arizona real estate agent commission (5.43%)

Realtor commission covers all of the services provided by your agent and gets paid out at closing.

Arizona home sellers pay an average of 5.43% of the home’s sale price. That covers both the listing agent and buyer’s agent commission.

This means that Arizona sellers pay an average of $22,045 per sale, split between the listing agent ($11,368) and the buyer’s agent ($10,677).

That’s certainly a lot of money. The good news is that listing agent commission is completely negotiable, and you can either shop around to save or negotiate a lower rate with an agent.

How to save on Arizona home sale costs

Use an agent matching service

An agent matching service connects Arizona sellers with top-rated local agents. Some companies also provide sellers with discounted rates.

For example, Clever Real Estate has pre-negotiated a listing fee of just 1.5%, compared to the average Arizona listing agent commission rate of 2.80%.

There’s no cost or obligation to use any agent you get matched with, so it’s worth starting your search here.

» MORE: Clever Real Estate Review

List your home without a realtor

You can avoid paying Arizona listing commission entirely by selling “for sale by owner.” It could save you 2.80% off of your home sale.

However, selling FSBO in Arizona comes with a few major drawbacks:

Studies show that FSBO homes sell for up to 26% less than agent-listed homes.
You’re in charge of everything, handling all of the duties and tasks that a realtor normally takes care of. That includes marketing and listing your home online, handling showing requests, and filling out important paperwork.
Your home won’t be posted on the multiple listing service, which nearly every agent uses to market properties. You’ll need to pay for a flat-fee MLS service to get it posted there and reach more potential buyers.

Selling without an agent is risky, with no guarantee of savings. We highly recommend consulting with a local attorney, realtor, or broker for more guidance before deciding.

Negotiate a lower commission

There’s no law regulating realtor commissions in Arizona or any other state. You can technically ask a realtor for a lower commission rate.

For the best results, shop around and meet with multiple agents, and get them to compete for your business. Some agents won’t budge on commission, but others may be willing to take a small cut.

» LEARN: How to negotiate lower realtor fees

2. How much are closing costs in Arizona? (1.0%)

Seller closing costs typically add another 1.0% or more to your home’s final sale price, according to our data.

Based on the average Arizona home value of $405,983, sellers pay $3,571 in closing costs.

Here’s a list of the potential closing costs in Arizona.

Title insurance

The average cost of owner’s title insurance in Arizona is $1,492, costing slightly more than the national average of $1,071.

Seller’s typically pay for the owner’s title insurance policy in Arizona, according to AZ Flat Fee, an MLS listing company.

Actual costs depend on your location, the insurance provider, and the price of your home.

What is title insurance?

Owner’s title insurance protects Arizona home sellers against legal claims made against the property.

According to the Arizona Department of Insurance, owner’s title policies usually cover:

Protection from financial loss due to claims against your title;
Payment of legal costs to defend against such claims;
Payment of successful claims against your title.

You can shop around for title insurance in Arizona – services, costs, and fees vary between companies.

Recording fees

Arizona charges average recording fees of , more than the national average of $0.

Recording fees register your property’s transfer of ownership, and the fee amount varies by county.

Title search or service fee

Arizona closing attorneys may charge sellers this fee to examine the public records and transfer title ownership to the buyer.

Typical title search costs range from $75 to $200 in Arizona depending on your type of property and location.

Attorney fees (optional)

Arizona sellers are not required to use an attorney to handle the closing. Escrow and title companies can handle all of your closing requirements.

You may still want to hire an attorney to review your contracts and legal documents – especially if you plan to sell FSBO.

For example, an attorney can make sure you properly fill out Arizona’s residential seller’s property disclosure statement, and protect you from potential issues that may arise during your sale.

If you need to hire an attorney, expect to pay at least $220 per hour, according to Thumbtack. However, fees vary widely by location.

» LEARN: Do I Need a Lawyer to Sell My House?

Prorated property taxes

Most home sellers are required to pay prorated property taxes based on the annual tax amount and the closing date.

Annual property taxes are “prorated” and divided between the seller and buyer, and due at closing. Your actual cost depends on how many days you live in your home up until the closing date.

Speak with your agent or attorney for more details on what you might owe in prorated taxes.

3. Other potential costs

Home preparation costs

While we’ve estimated that it costs Arizona sellers 6.39% or $25,616 in total costs to sell a home, there are other potential costs to consider.

Home staging

It costs between $940 to $1,150 to stage a home through Thumbtack, while HomeAdvisor estimates the average cost at $1,605.

However, actual costs depend mainly on your market, the size of your home and number of rooms furnished, and the amount of furniture required.

Deep cleaning

A deep cleaning is more extensive than a regular cleaning, as it covers your home’s hard-to-reach areas. It usually covers your appliances, baseboards and doors, and windows, for example.

It could be worth getting a deep cleaning before photography and home showings to present your home in the best possible light.

Expect to pay at least $200 to $220 to deep clean a 1,500 sq. ft. house in Arizona, according to Tuscon Maids.

Home repairs and improvements

Depending on your home’s condition, you might need to make minor or major repairs before putting your house on the market.

Pre-listing repairs could range from minor painting ($200–$300) to a roof replacement ($5,000 – $10,000).

» MORE: The most important repairs to make before selling

Seller concessions

Home warranty

Arizona sellers may or may not have to pay for a buyer’s home warranty, depending on what’s negotiated in the contract.

It costs over $700 per year for a home warranty in Arizona, according to ReviewHomeWarranties. However, costs vary based on the size of the home, type of home (single-family or multi-unit), and coverage levels.

Buyer’s closing costs

Closing costs are negotiable between sellers and buyers in Arizona. So, you may or may not have to pay part or all of a buyer’s closing costs, depending on your agent’s negotiation skills and the state of your housing market.

Currently, it’s not very common for sellers to offer to pay a buyer’s closing costs in Arizona.

Homeowner’s association dues

If your Arizona home is located in an HOA community, you may owe HOA fees at closing.

HOA fees vary widely in Arizona and can range from $30 per month for small condos to $2,500 per month for luxurious developments, according to Phoenix Urban Spaces.

There are two potential HOA costs facing Arizona home sellers:

1. Prorated HOA fees. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing, as well as an HOA transfer fee.

2. HOA transfer fees. This fee covers the transfer of HOA paperwork from the seller to the buyer. The one-time fee ranges from $100 to $400, depending on your HOA, according to Real Property Management Phoenix Valley.

HOA fees are usually negotiable. Ask your agent, real estate attorney, or homeowner’s association for more information on what you might owe at closing.

Termite inspection fee

Two types of wood-destroying termites are common in Arizona: Desert subterranean termites and western drywood termites.

Home buyers are usually responsible for setting up a termite inspection, but in some cases, the buyer might ask the seller to pay for the cost of the inspection.

A termite inspection costs an average of $100 nationwide but can cost up to $280, according to HomeAdvisor.

Capital gains tax

The IRS offers sellers a tax break on capital gains from the sale of a home. If you’ve owned your home for more than two of the past five years and meet other requirements, up to $500,000 of the profit on your sale is tax-free.

» LEARN: How to avoid capital gains on a home sale

Arizona closing cost calculator

Use our calculator to get a rough estimate of your closing costs in Arizona.

We included seller concessions and home preparation costs, but you can edit or remove these costs if necessary. You can also include your current mortgage balance if you have one.

Change your home price based on its estimated value – you can get a free comparative market analysis from an agent if you want.

For more accurate numbers, you need to find a local realtor to provide you with an Arizona seller’s net sheet: a personalized document that estimates how much you may earn in your home sale.

A realtor can provide you with an expected sales price and a clear breakdown of your estimated closing costs, reflecting what’s normal in your market.

Arizona Closing Costs: FAQs

How much are closing costs in Arizona?

Arizona closing costs average close to 1% of a home's final sale price, which includes common closing costs, such as title insurance and transfer taxes. However, that does not include real estate agent commission, which adds another 5% to 6% in expenses.

Our article breaks down all of your potential closing costs, and the best ways to save on Arizona realtor fees.

Who pays closing costs in Arizona?

Arizona home sellers and buyers pay separate closing costs. For example, sellers are usually responsible for paying owner's title insurance and recording fees, while buyer's pay for a lender's title policy, appraisal, home inspection, and loan underwriting fees.

Arizona seller closing costs can add thousands to your home sale expenses. However, actual costs depend mainly on your location and your home's expected sale price.

We recommend you find a local realtor to get a free seller's net sheet, which breaks down all of your potential home sale costs based on what's normal in your market.

Do buyers or sellers pay realtor fees in Arizona?

Sellers usually cover both the buyer's agent and seller's agent commission in Arizona. It amounts to at least 5% of the home's final sale price. However, Arizona home sellers might be able to negotiate a lower seller's agent commission rate, or hire an agent matching service for a pre-negotiated listing commission rate of just 1.5%.

What is the cheapest way to sell a house in Arizona?

The cheapest way to sell a house in Arizona (without sacrificing price or service) is to use an agent matching service like Clever.

Clever has pre-negotiated a 1.5% or $3,000 listing fee with its agents, much lower than the national average listing fee of 2.80%. That could save you thousands in Arizona realtor fees.

The True Cost to Sell a House in Arizona: Seller Closing Costs Revealed