Closing Costs and Fees When Buying Arizona Property

Closing Costs and Fees Associated with Buying a Property in Arizona?
  • Arizona does not have a real estate transfer OR sales tax.
  • Your biggest “closing cost” will likely be the fess you pay to your lender. Those fees vary greatly from lender to lender and from one loan program to another. Most Canadians are paying all cash so, of course, they are paying no loan fees.
  • You will also pay for most or all of these: a home inspection, a termite inspection, an appraisal, an escrow fee, title insurance, a county recording fee, and if the home has a Homeowners Association (HOA), additional HOA fees such as an HOA transfer fee (sometimes paid by the seller), working capital, reserves, etc. These will vary greatly from one HOA to another.
  • In addition, at closing you will pay for some future expenses in advance. These “pre-paids” may include property taxes and homeowners insurance.
  • Attorneys are not typically involved in Arizona residential real estate transactions, so that is an expense you will not have in Arizona. Instead, neutral third party Title Companies are used. (See Disclaimer)
  • To help offset the initial cost of the infrastructure of a resort like community, some neighborhoods have Special Assessment or Community Facilities District Tax (CFD), such as Anthem at Merrill Ranch in Florence, AZ. These are additional fees that you may not pay on another property in another neighborhood. It is always wise to use a Realtor® that specializes and has experience selling, in a neighborhood such as this, so that these fees do not come as a surprise at the last minute.