Ever wonder why your cash to close feels higher than just your down payment? If you are buying in Scottsdale, a handful of required fees and prepaids can add up fast. You want a clear, local breakdown so you can plan with confidence and avoid last‑minute surprises. In this guide, you will see what buyer closing costs include, typical Scottsdale ranges, who usually pays what in Arizona, and how to lower what you bring to the table. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaids you pay to complete your home purchase beyond your down payment. They include title and escrow services, lender charges, government recording fees, prepaid items like insurance and interest, and any community or HOA transfer or resale fees.
As a rule of thumb, buyers typically pay about 2% to 5% of the purchase price in closing costs. Your final total depends on your loan type, price point, whether there is an HOA, and how you negotiate the contract.
Scottsdale cost breakdown
Title, escrow, and title insurance
Title companies in Arizona handle both title and escrow. You will see charges for the title search, lender’s title insurance policy, and the escrow closing fee. An optional owner’s title policy is often part of the deal, and in many Arizona transactions the seller pays for it by custom. Costs scale with the purchase price and the escrow company’s fee schedule. A rough range for title and escrow combined is about $800 to $3,500+.
Lender fees and required loan services
Most buyers see a mix of origination, underwriting, and processing fees. You may choose to pay discount points to lower your rate. The lender also orders a credit report and an appraisal.
- Origination is commonly 0.5% to 1.5% of the loan amount, or a flat fee.
- Appraisals for a Scottsdale single‑family home typically run $450 to $800.
- Credit reports are usually under $50.
These items appear on your Loan Estimate and your final Closing Disclosure.
Prepaids and escrow deposits
Prepaids are not fees. They are upfront amounts for items the lender needs to fund and service your loan.
- First year’s homeowners insurance premium
- Prepaid interest from the closing date to your first payment
- Initial escrow deposits so the lender can pay taxes and insurance when due
Depending on your insurance premium, tax schedule, and timing, prepaids can range from about $1,000 to $6,000+.
Government and recording charges
Expect recording fees for the deed and the mortgage with the Maricopa County Recorder. Arizona does not have a statewide real estate transfer tax. Recording charges are typically tens to low hundreds of dollars, often $50 to $300 total.
HOA and master‑planned community fees
Many Scottsdale neighborhoods are in HOAs or master‑planned communities. When a home resells, the association usually issues a resale or disclosure packet and charges a transfer fee.
- Resale or estoppel packets commonly cost $150 to $500. Some resort or gated communities can be higher, or charge more for rush service.
- Transfer fees are often $50 to $400.
- You will also see prorated dues for the month of closing.
Who pays which HOA item depends on your purchase contract and local practice. It is common for buyers to pay the transfer fee and for sellers to pay the resale packet, but this varies and is negotiable.
Other third‑party items you may see
- Home inspection and termite or pest inspections: about $300 to $800 total
- Survey if required: about $300 to $1,000 depending on lot
- Optional home warranty: about $300 to $700
Who pays what in Arizona
Customs vary by neighborhood and contract, but here is what is common in Arizona:
- Seller often pays the owner’s title insurance premium, the real estate commission, and may pay part of the escrow fee. Escrow fees are often split.
- Buyer typically pays lender fees, the lender’s title policy, appraisal and credit report, mortgage recording fees, and prepaids like insurance, interest, and escrow reserves.
- HOA fees are mixed. Many contracts assign the resale packet to the seller and the transfer fee to the buyer. Always check your signed contract.
You can negotiate credits from the seller toward your closing costs. Lenders limit how much the seller can contribute based on your loan program and down payment.
Timeline: when costs show up
- Loan Estimate: You receive this within 3 business days of your loan application. It outlines estimated lender charges and prepaids.
- Title closing estimate: The title company provides an estimate of title, escrow, and third‑party fees before closing.
- Closing Disclosure: You receive this at least 3 business days before closing. It shows your exact cash to close.
- HOA resale packet: Many associations need up to 10 to 14 days to prepare the documents. Plan ahead so this does not delay closing.
Example: estimate on a $700,000 home
Below is one possible scenario. Your numbers will vary based on loan terms, insurance, HOA, and negotiation.
- Title and escrow: about $2,000 to $3,000
- Lender fees and services: origination at 1% of a $560,000 loan is $5,600; appraisal about $600; credit and admin about $150; total about $6,350
- Prepaids and escrow deposits: about $3,500 to $5,000
- Recording and county fees: about $150 to $300
- HOA transfer and prorations: about $200 to $500, assuming seller pays the resale packet
In this example, total buyer closing costs land around $14,000 to $15,000+, which fits the 2% to 5% guideline for a $700,000 purchase. Your final figures will appear on your Closing Disclosure.
How to lower your cash to close
- Shop lenders. Compare at least two Loan Estimates to weigh fees, points, and credits.
- Negotiate concessions. Ask the seller to cover certain fees, like the owner’s title policy or a credit toward closing costs.
- Consider lender credits. A slightly higher interest rate can reduce upfront costs. Compare the long‑term interest impact to the immediate savings.
- Clarify HOA items early. Confirm who pays the resale packet and transfer fee in your contract and ask about any rush fees.
Plan with a local guide
You deserve a clear, Scottsdale‑specific roadmap to your cash to close. Our team helps you price out every line item early, request accurate title and lender estimates, and structure offers that align with your budget. We stay ahead of HOA timelines, confirm who pays what, and look for smart ways to lower your upfront costs without risking your approval.
If you are planning a purchase in Scottsdale or North Phoenix, connect with The RTT Home Group for a precise estimate and a strategy that fits your goals.
FAQs
What are typical Scottsdale buyer closing costs?
- Buyers usually pay about 2% to 5% of the purchase price, excluding the down payment. Your total depends on loan type, price, HOA fees, and negotiation.
Who pays for owner’s title insurance in Arizona?
- The owner’s title policy is optional for buyers and is often paid by the seller in Arizona by local custom, though it is negotiable and set in the contract.
Do Arizona buyers pay a real estate transfer tax?
- Arizona does not impose a statewide real estate transfer tax. Buyers typically pay recording fees for the deed of trust or mortgage, which are modest.
How do HOA resale and transfer fees work in Scottsdale?
- Many communities require a resale packet and a transfer fee. Resale packets commonly cost $150 to $500 and transfer fees $50 to $400, with payer set by contract.
When will I know my exact cash to close?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. It lists final costs and the exact cash to close.
Can I reduce closing costs without delaying closing?
- Yes. Compare lenders, request seller concessions, and consider lender credits. Confirm HOA fees early to avoid rush charges and timeline issues.
What inspections or optional items should I budget for?
- Plan for a home inspection and pest inspection, often $300 to $800 total. A survey, if required, can be $300 to $1,000, and a home warranty $300 to $700.
