Phoenix, Arizona, is ranked second in the United States for home price cuts.
Do you want to get the most for your home? If so, it's essential to have a clear understanding of the financial aspects involved.
For sellers in Phoenix, Arizona, one crucial aspect to grasp is the fees paid by sellers at closing. Keep reading to learn about the major elements of seller's closing costs and more.
What Are Closing Costs?
Closing costs encompass all fees that come from the completion of a real estate sale.
It's common to split these costs between the buyer and the seller. It's usually not possible to put all these fees on the buyer's shoulders alone.
Home Purchase Price Is Vital
The home's purchase price serves as the foundation for all other financial considerations.
Sellers should be aware that the purchase price affects their closing costs. As the purchase price goes up, so do the closing costs.
Don't Forget About the Down Payment
While the down payment is the buyer's responsibility, it can affect the seller's closing costs. A higher down payment from the buyer could reduce the seller's expenses.
Sellers should remember that they don't have control over the buyer's down payment, and the buyer decides what this amount is.
A Typical Rundown of Seller Closing Costs
Remember that these upfront expenses can vary. Still, there are several common staples you'll come across.
One of the most significant costs for sellers is the real estate agent's commission. This fee tends to be around five to six percent of the home's sale price. It's important to note that this fee is negotiable, but it's standard practice in most real estate transactions.
Sellers are responsible for covering the title and escrow fees. These aspects are essential for ensuring a smooth transfer of ownership. These fees can fluctuate but often amount to a few thousand dollars.
Sellers may need to pay their share of property taxes up until the closing date. The exact amount depends on when the sale occurs and the property tax rate in Phoenix.
Is your property part of a homeowners association? If so, you must settle any outstanding HOA fees. You may also need to cover the transfer fees associated with changing ownership.
In some cases, sellers may agree to make repairs or provide credit to the buyer as part of the closing agreement.
Now You're Aware of the Fees Paid by Seller at Closing
There's no denying that the fees paid by seller at closing can take a decent chunk out of your profit. The key is to sell your home as fast as possible for as much money as possible.
That's where AZ Home Buyer comes in. Our qualified team is ready to sell your home for quick cash. You can even count on us to skip the inspection process.
Are you ready to get rid of your Phoenix home and start the next chapter of your life? Don't wait to touch base with an AZ Home Buyer expert today.
