Trying to make sense of who pays what at closing in Old Town Scottsdale? Between condos, HOAs, and higher price points, the details can feel confusing. You want a clear picture of your bottom line before you write an offer or accept one. This guide breaks down typical buyer and seller costs in Arizona, what’s negotiable, and how Old Town’s condo-heavy market affects your numbers. Let’s dive in.
Closing costs overview
Closing costs are the fees and prepaid items due when ownership changes hands. They cover services like title and escrow, loan charges, inspections, recording, and prorations for taxes or HOA dues. Some charges are fixed, while others scale with price or loan amount. In Arizona, there is no statewide real estate transfer tax, and local transfer taxes are uncommon in Scottsdale.
Costs are shaped by local custom and your contract. In many Arizona sales, the seller pays for the owner’s title insurance policy and commissions, while the buyer pays loan-related costs and the lender’s title policy. Most items are negotiable, so your final numbers can shift based on the deal and timing.
What buyers typically pay
Loan and lender fees
If you finance your purchase, you usually pay your lender’s charges. These often include origination or points, underwriting, appraisal, credit report, and other verifications. Origination fees are commonly expressed as a percentage of the loan, such as 0.5 to 1 percent, while discount points are 1 percent per point. Total lender and third-party loan costs often range from a few hundred dollars to several thousand.
Title, escrow, and recording
Buyers typically pay for the lender’s title insurance policy and contribute to escrow or closing service fees. In Arizona, escrow fees are often split between buyer and seller, though this is negotiable. Buyers also usually cover the recording of the mortgage and may pay modest county recording charges. These line items are generally smaller dollar amounts compared to loan fees.
Prepaids and reserves
You will prepay interest from your closing date to your first payment, plus fund initial reserves for taxes and insurance if your loan requires an escrow account. Lenders often collect the first year of homeowners insurance and several months of taxes. The exact amount depends on your closing date and local tax schedule.
Inspections and reports
Most buyers pay for inspections. Common items include a general home inspection, pest inspection, and any specialty checks like roof, sewer scope, or condo document review. A general home inspection often runs several hundred dollars, with specialty inspections varying by provider and property type.
Buyer bottom line
When you add it all up, typical buyer closing costs in Scottsdale often land around 2 to 5 percent of the purchase price, excluding your down payment. Your total can be lower if you pay cash, secure seller concessions, or close at a time that reduces prepaids.
What sellers typically pay
Brokerage commissions
In many Scottsdale sales, sellers pay the real estate commissions agreed to in the listing contract. Historically, total commissions in many U.S. markets have been around 5 to 6 percent of the sale price, but every agreement is negotiable. Commissions are usually the largest seller expense.
Title insurance and escrow
It is common in Arizona for sellers to pay for the owner’s title insurance policy, which protects the buyer’s ownership. Escrow or closing fees are often split between both parties. These costs are generally a fraction of the price and vary by provider and property value.
HOA and condo fees
In Old Town Scottsdale, many properties sit within HOAs. Sellers often pay the HOA transfer and estoppel fees, which document the status of dues and assessments. Transfer and estoppel charges typically run a few hundred dollars combined, though amounts vary by association.
Payoffs and lien releases
Sellers pay off any outstanding mortgages and clear any liens. This includes per diem interest, reconveyance or release fees, and HOA payoffs if applicable. The amounts depend on your loan balance and any association or lien-related costs.
Recording and document prep
Sellers usually cover any document preparation they agree to in the contract, such as payoff statements and closing documents. If the seller agrees to concessions or credits, those appear on the closing statement and reduce net proceeds.
Seller bottom line
Including commissions, sellers commonly see total costs around 6 to 10 percent of the sale price. Your net depends on your payoff amount, agreed credits, HOA fees, and whether you cover the owner’s title policy.
Old Town Scottsdale factors
Condo and HOA prevalence
Old Town’s mix includes many condos and townhomes. This raises the odds of HOA transfer and estoppel fees, document packages, and possible special assessments. Dues and assessments are prorated at closing per the contract, and estoppel fees often fall to the seller.
Price and property type
Fixed fees like escrow or recording are a smaller percentage on higher-priced homes. Percentage-based items, like commissions, scale with the sale price. Luxury properties and second homes may add appraisals or specialized inspections and insurance, but the basic allocation of closing costs remains similar.
Investment and second homes
If you are buying as an investor or second-home owner, plan for HOA rules about rentals, short-term rental restrictions, and approval timelines. Your loan program and occupancy type can also affect allowable seller concessions and underwriting costs.
Negotiation and concessions
Seller-paid buyer costs
Buyers often ask for seller concessions to help cover closing costs. The amount a seller can pay is capped by the loan program and must be approved by the lender. Concessions are negotiable and can offset items like lender fees, title services, and prepaids.
Owner’s title and escrow splits
Although it is common for sellers to pay the owner’s title insurance, who pays is negotiable. The escrow fee split is also negotiable. The contract should clearly state these allocations to avoid surprises at closing.
Repairs and credits
Inspection findings often lead to negotiations for repairs or credits. Credits can be more predictable than managing repairs under time pressure and can be applied toward buyer closing costs within lender rules. For condo sales, confirm who is responsible for common-area repairs and any special assessments.
HOA special assessments
Large unpaid assessments or pending litigation can affect both buyer willingness and seller net. Verify assessments with the HOA early, and confirm how they will be handled in the contract. The estoppel letter should document amounts due or pending.
Tax and proration basics
Arizona property taxes are prorated at closing. Sellers typically pay taxes through the day of closing, and buyers pay from the next day forward. HOA dues and other recurring items are also prorated per the contract. For questions about capital gains or tax impacts related to selling, speak with a tax professional.
Timeline and prep checklist
Typical escrow
A typical escrow in Arizona runs 30 to 45 days from contract acceptance, depending on financing, appraisal, HOA timelines, and contingencies. Cash deals can close faster. Condo transactions may need extra time for HOA documents and reviews.
Buyer checklist
- Get a detailed Loan Estimate from your lender and compare it to your final Closing Disclosure.
- Budget for inspection costs, appraisal, title services, and prepaids.
- Confirm allowable seller concessions for your loan type and adjust your offer strategy.
- Review HOA documents promptly, including CC&Rs, budgets, meeting minutes, and any special assessments.
- Verify property tax schedules and expected escrows based on your closing month.
Seller checklist
- Request a net sheet early to understand commissions, title, escrow, HOA, and payoff costs.
- Contact your HOA to learn exact transfer and estoppel fees and confirm any assessments.
- Confirm your mortgage payoff and any lien releases or reconveyance fees.
- Decide on your stance for owner’s title, escrow splits, and potential concessions before negotiating.
- Prepare disclosures and gather invoices or warranties to streamline the buyer’s review.
Cost example: Old Town condo
To visualize how costs stack up, here is a simple scenario for a $700,000 Old Town Scottsdale condo. Actual fees vary by contract, lender, title company, and HOA.
Seller
- Commission at 6 percent: $42,000
- Owner’s title and share of escrow: about $1,500 to $3,000
- HOA transfer and estoppel: about $200 to $600
- Mortgage payoff and per diem interest: varies
- Estimated seller closing costs: about $44,000 to $47,000, plus any mortgage payoff
Buyer
- Loan, appraisal, lender’s title, and escrow: about $8,000 to $14,000
- Prepaid taxes and insurance reserves: several hundred to several thousand, depending on timing
- Estimated buyer closing costs: about $10,000 to $20,000, excluding down payment
How we help in Old Town
Closing in Old Town Scottsdale often involves HOA nuances, document timing, and careful proration. You deserve a clear, numbers-first plan that protects your time and your budget. Our team brings deep neighborhood expertise and strong title and mortgage fluency to keep your closing smooth and predictable.
Whether you are selling a condo off the Waterfront or buying a pied-Ã -terre near the Arts District, we tailor your strategy to your building, HOA, and price point. We help you compare concession options, set realistic expectations for title and escrow splits, and review closing statements so you know your net before you sign.
Ready to run your numbers and map your next move in Old Town? Connect with Phoenix Living: Joelle Addante + David Thayer for clear guidance and a tailored closing plan.
FAQs
Who typically pays title insurance in Arizona?
- In many Arizona sales, sellers commonly pay for the owner’s title policy, while buyers pay for the lender’s policy, but this is negotiable and should be stated in the contract.
Are there real estate transfer taxes in Scottsdale?
- Arizona does not impose a statewide real estate transfer tax, and local transfer taxes are uncommon in Scottsdale; confirm any minor recording fees with your title and escrow team.
Can a seller pay a buyer’s closing costs?
- Yes, seller concessions are common, but loan programs cap how much a seller can contribute, and the lender must approve the structure.
How are HOA fees handled at closing in Old Town Scottsdale?
- HOA dues and assessments are typically prorated at closing; sellers often pay transfer and estoppel fees, though allocations can be negotiated in the contract.
How are Arizona property taxes prorated between buyer and seller?
- Taxes are prorated so the seller pays through the day of closing and the buyer pays from the next day forward; timing affects the exact amounts.
What do sellers usually spend in total on closing costs?
- Including commissions, many sellers see about 6 to 10 percent of the sale price go to closing costs, depending on title, escrow, HOA fees, payoffs, and any concessions.
