What are closing costs for sellers in Arizona? On a typical resale, sellers often pay to pay off the existing mortgage, provide the buyer’s owner’s title insurance policy, cover HOA disclosure fees, and split escrow and recording charges—while property taxes and HOA dues are prorated. Broker compensation is negotiable, not fixed by statute.
How much will you pay? I won’t invent an “average closing cost percentage” or a fake dollar range. Your number depends on price, loan payoff, title and escrow fees, prorations, HOA charges and any credits you agree to give the buyer. The settlement statement is the source of truth.
Data note: Customary payer allocations come from First American Title’s Arizona “Closing Costs: Who Pays What” chart (AZ-04/2014). Consumer framing comes from the CFPB. Recording fees come from the Maricopa County Recorder. Compensation language comes from the Arizona REALTORS® Consent to Limited Representation sample (November 2024). No invented averages or market statistics.
Seller Closing Costs at a Glance
- Existing loan payoff (and payoff demand): seller, customarily
- Owner’s (homeowner’s) title policy: seller, customarily
- Lender’s title policy: buyer, customarily (when there is a loan)
- Escrow fee: split on cash/FHA/conventional; seller on VA, per the First American chart
- Recording fees: split, customarily
- Property taxes / current HOA dues: prorated
- HOA disclosure fee: seller, customarily
- Broker compensation: negotiable; chart shows seller as customary payer
- Seller concessions toward buyer costs: negotiable
For the buyer-side counterpart, see closing costs for buyers in Arizona.
What “Customary” Means (and What It Doesn’t)
First American Title publishes a chart titled “Closing Costs: Who Pays What in Arizona” and labels it as indicating who customarily pays what costs across cash, FHA, VA and conventional purchases. That is local custom and industry practice, not a law that freezes every line item. Your purchase contract can allocate fees differently.
The CFPB likewise notes that when you buy a home you generally pay costs associated with the transaction, but depending on the contract or state law, the seller may pay some—and a seller credit may be paired with other negotiated terms.
Title Insurance: The Owner’s Policy
On First American’s Arizona chart, the EAGLE Homeowners Title Policy (the owner’s policy protecting the buyer’s title) is listed as a seller cost for cash, FHA, VA and conventional. The lender’s title policy and endorsements are listed as a buyer cost when there is a loan.
That split is one of the biggest seller-side title items in Arizona practice. More detail: who pays title insurance in Arizona.
Escrow, Recording and Loan Payoff
Escrow fee
Per the same First American chart:
- Cash / FHA / conventional: escrow fee is split
- VA: escrow fee is charged to the seller
Recording
The chart shows recording fees as split. In Maricopa County, the Recorder’s published fee for recording documents (except plats and surveys) is $30 per document under A.R.S. § 11-475(A)(1)—useful context for the deed and related recordings, not a prediction of your full recording line.
Paying off your loan
Customarily the seller pays:
- The existing loan payoff
- The payoff demand fee
- Any prepayment penalty, if one applies
- Reconveyance / satisfaction fees (seller on most columns; chart shows split on conventional for that line)
Prorations, HOA and Assessments
Expect prorated property taxes and current HOA dues. The chart lists the HOA disclosure fee as a seller cost, HOA transfer as buyer or seller, assessments as a seller payoff/proration item on the cash column, and the tax service contract as seller on FHA/VA (buyer on conventional). Home warranties, when used, are buyer or seller.
Broker Compensation: Negotiable, Not a Fixed Percentage
First American’s customary chart lists Realtors®’ commissions as a seller cost. That reflects traditional practice. It is not a legal rate.
Arizona REALTORS® form language is explicit: “Compensation to the Broker is not set by law, is fully negotiable, and shall be paid pursuant to separate agreement(s).” I will not invent a commission percentage or a statewide average. Your listing agreement and any cooperative compensation terms control what you owe.
Seller Credits
Sellers can negotiate credits toward the buyer’s closing costs; the CFPB notes the economics may show up elsewhere in the deal. For net-proceeds planning, see cost to sell a house in Arizona and how long to close on a house in Arizona.
“When sellers ask me for a single ‘average closing cost’ number, I show them a worksheet instead: loan payoff, owner’s title, escrow split, prorations, HOA fees and negotiated compensation. The worksheet beats a made-up percentage every time, because your net is what funds your next move.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
What closing costs do sellers pay in Arizona?
Customarily: loan payoff, owner’s title policy, HOA disclosure, and often a share of escrow and recording, plus prorations. Compensation is negotiable.
Who pays the owner’s title insurance policy in Arizona?
Customarily the seller, per First American Title’s Arizona who-pays chart. Your contract can allocate it differently.
How much are seller closing costs in Arizona?
It depends—I won’t invent an average. Your settlement figures are the accurate number.
Do Arizona sellers always pay the real estate commission?
Not by law. Custom charts often show the seller paying, but form language says compensation is fully negotiable.
Selling Soon? Let’s Estimate Your Net—Not a Guess
I’ll walk through title, escrow, prorations and negotiated compensation so you see a clear path from list price to net proceeds.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate Specialist
Talk With Elizabeth · Call or text 602-885-7752
Sources: First American Title: Closing Costs—Who Pays What in Arizona (PDF) · CFPB: Closing fees and who pays them · Maricopa County Recorder: Recording fees · Arizona REALTORS®: Consent to Limited Representation (Nov. 2024 sample PDF) · Who pays title insurance in Arizona
Disclaimer: General information, not legal, tax or mortgage advice. Custom charts and contracts vary; confirm allocations with your title/escrow officer and advisor. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch