Closing costs can feel like the wild card in your budget. If you are buying or selling in Tempe, a clear estimate helps you plan, negotiate, and avoid last-minute stress. In this guide, you will see what buyers and sellers typically pay, how costs are split in Arizona, and the exact documents that show your final numbers. You will also get simple steps to estimate and manage your costs with confidence. Let’s dive in.
Tempe closing cost ranges at a glance
You can use these ranges to plan. Your actual costs will depend on price, loan type, HOA fees, and what you negotiate in the purchase contract.
- Buyers: plan for about 2% to 5% of the purchase price in closing costs, not including your down payment.
- Sellers: plan for about 6% to 10% of the sale price in total transaction costs. This usually includes broker commission, the owner’s title policy, prorations, HOA fees, and any agreed credits or repairs.
- Example budgets:
- $400,000 purchase: buyers about $8,000 to $20,000; sellers about $22,000 to $40,000.
- $600,000 purchase: buyers about $12,000 to $30,000; sellers about $33,000 to $60,000.
Buyer cash to close can be higher if a lender requires escrow deposits for taxes and insurance. For financed purchases, your lender must provide a Loan Estimate early and a Closing Disclosure with final numbers before you sign. You can see how these forms work in the Consumer Financial Protection Bureau’s guide to the Closing Disclosure and key timelines.
What Tempe buyers typically pay
Most buyer costs are lender or title related. Many items are negotiable, so always confirm your contract and the preliminary settlement statement from escrow.
Lender and loan costs
- Origination, underwriting, and application fees.
- Appraisal fee and credit report. Buyers usually pay these.
- Optional discount points if you choose to buy down your rate.
Title and escrow
- Lender’s title insurance policy if you finance the purchase.
- Escrow or settlement fee, often split 50-50 between buyer and seller in Arizona, but negotiable.
Government recording and third-party fees
- Recording fees for the deed and mortgage documents. Amounts are set by the county; check the current schedule with the Maricopa County Recorder.
- Small third-party charges such as flood certification or courier fees.
Prepaids and reserves
- First year of homeowner’s insurance and an initial escrow deposit for taxes and insurance if required by your lender. These funds increase cash to close but are not fees.
Inspections and due diligence
- Home inspection and pest inspection fees. Any repair costs are negotiated through your inspection period.
HOA-related costs
- Some associations charge buyer transfer or activation fees at move-in. Check your HOA’s fee schedule and your contract to confirm who pays what.
What Tempe sellers typically pay
Seller costs cluster around commission, title, prorations, and HOA items. Actual amounts depend on price, loan payoff, and the agreement you reach with the buyer.
Commission and representation
- Real estate broker commission is commonly around 5% to 6% of the sale price and is negotiated in your listing agreement. For national context on how commissions are structured, review the National Association of REALTORS resources.
Title and escrow
- Owner’s title insurance policy is customarily paid by the seller in many Arizona transactions, though this is negotiable.
- Escrow or settlement fee, often split 50-50 with the buyer, subject to contract.
Payoffs and recording
- Payoff of your existing mortgage and any liens.
- Recording and reconveyance fees related to your prior loan.
Prorations and HOA items
- Property taxes are prorated through the closing date. You pay taxes up to the day of closing, and the buyer takes over after that.
- HOA resale disclosure package is commonly ordered and paid for by the seller in Arizona. Associations may also charge transfer fees; your contract can shift who pays.
Repairs and credits
- Any agreed repairs or seller concessions negotiated during inspection or appraisal.
Arizona and Maricopa specifics you should know
- Independent escrow and title: Arizona closings are commonly handled by an escrow and title company rather than an attorney. Ask for a preliminary settlement statement early in escrow so you can see the cost split and estimates for both sides.
- Title premiums are regulated: Title insurance costs depend on price and policy type and are regulated at the state level. Request a quote from your chosen title company for accuracy.
- Recording fees: Maricopa County sets fixed and per-page recording charges. Review the current fee schedule on the Maricopa County Recorder site.
- Transfer taxes: Arizona does not generally impose a statewide real estate transfer tax. Expect county recording fees instead. Your escrow officer will confirm what applies to your file.
- Property tax proration: Taxes are prorated through closing and shown on the settlement statement. Escrow will calculate exact amounts based on the closing date.
- HOA resale documents: In Arizona, sellers typically order the HOA resale package. Ask your HOA or management company about fees and turnaround times early to avoid delays.
- State resources: For a high-level view of disclosures and consumer protections, visit the Arizona Department of Real Estate.
How to estimate your Tempe closing costs
Use these steps to build a reliable estimate and avoid surprises.
Start with a range. Buyers use 2% to 5% of price. Sellers use 6% to 10% of price, including commission. Adjust for your price point, HOA, and negotiation strategy.
If you are financing, apply with your lender and request a Loan Estimate. Lenders must provide this early so you can compare options. Review how this connects to your final numbers in the CFPB’s overview of the Closing Disclosure and timing rules.
Ask your escrow officer for a preliminary settlement statement. This draft shows title premiums, escrow fees, prorations, and who pays which line items based on your contract.
Check HOA fees. Request the HOA resale package fee schedule and confirm any buyer transfer or activation charges. Payment responsibility is contract driven, so verify what you agreed to.
Confirm county fees. Use the Maricopa County Recorder to understand deed and mortgage recording charges for your documents.
Revisit before closing. Buyers should review the Closing Disclosure at least three business days before signing. Both parties should confirm the final ALTA or settlement statement to verify cash to close and amount due to seller.
Ways to manage and reduce your costs
- Compare lenders. Rate and fee structures vary. The Loan Estimate helps you compare origination charges, points, and credits in a consistent format.
- Consider points carefully. Buying down your rate can make sense if you will keep the loan long enough to break even on the upfront cost.
- Negotiate allocations. Many fees are negotiable in Arizona, including escrow splits and some HOA charges. Your contract sets the final allocation.
- Time your closing. A month-end closing can reduce prepaid interest for buyers. Consider tax and HOA proration timing as you schedule.
- Prepare your home to sell. Sellers who present, price, and negotiate well can offset transaction costs through stronger offers and fewer concessions.
How to read your settlement statement
Your settlement statement or Closing Disclosure groups costs into clear sections. Here is what to look for when you review your draft and final copies.
Key sections to review
- Loan Costs and Other Costs: lender charges, appraisal, and third-party loan fees.
- Title Charges: owner’s and lender’s title policies and the escrow fee.
- Government Recording and Transfer: county recording fees and any document charges.
- Prepaids and Escrow Deposits: homeowner’s insurance, prepaid interest, and escrow reserves.
- Adjustments and Credits: property tax prorations, HOA dues, and any seller credits.
- Cash to Close or Amount Due to Seller: your final bottom line.
Items to verify before you sign
- Mortgage payoff amounts are accurate for the funding date.
- Commission matches your listing agreement and the contract.
- Owner’s title policy is allocated per Arizona custom or per your contract.
- HOA fees and the resale package show the correct payer.
- Property tax prorations match the closing date.
- All negotiated credits and repairs appear on the statement.
For a simple walkthrough of the forms and timeline, review the CFPB’s guide to the Closing Disclosure and borrower review period.
Tempe takeaways
- Buyers should plan for 2% to 5% of price in closing costs, not including down payment. Sellers should plan for 6% to 10% of price, with commission as the largest line item.
- In Arizona, seller-paid owner’s title, a 50-50 escrow fee split, and seller-provided HOA resale packages are common, but your contract rules.
- Request estimates early from your lender and escrow, and confirm county recording fees with the Maricopa County Recorder. Your final Closing Disclosure or ALTA statement will show exact numbers.
If you want a clear estimate for your Tempe purchase or sale, local guidance makes all the difference. For a personalized breakdown and strategy to manage costs from offer to close, connect with Celina Acosta. Our team can coordinate your lender, title, and HOA steps so your final numbers are accurate and your closing is smooth.
FAQs
What are typical buyer closing costs in Tempe?
- Buyers commonly pay about 2% to 5% of the purchase price, plus any lender-required escrow deposits, with exact figures shown on your Closing Disclosure.
Who usually pays for the owner’s title insurance in Arizona?
- In many Arizona transactions the seller pays the owner’s title policy, although this is negotiable and should be confirmed in your purchase contract and preliminary settlement statement.
Are there real estate transfer taxes in Tempe, AZ?
- Arizona generally does not impose a statewide transfer tax, so expect county recording fees instead, which you can confirm with the Maricopa County Recorder.
How are escrow or settlement fees split in Tempe?
- A 50-50 split between buyer and seller is common in Arizona, but the allocation is negotiable and should match your contract and escrow’s estimate.
What HOA fees do Tempe sellers often pay?
- Sellers typically order and pay for the HOA resale disclosure package, while transfer or activation fees may apply and can be allocated by contract, so verify with your HOA and escrow.
When will I see my exact closing numbers as a buyer?
- For financed purchases, you receive a Closing Disclosure at least three business days before closing that details final costs and cash to close; review this carefully with your lender and escrow.
Do buyers pay a full year of property taxes at closing in Maricopa County?
- Not usually; taxes are prorated through closing and your lender may collect an escrow deposit for future tax bills, with the amounts itemized on your Closing Disclosure and settlement statement.
