Selling a home can be exciting and overwhelming, especially when considering the various closing costs involved. As a home seller in Peoria, Arizona, it is essential to understand and prepare for these costs to ensure a smooth and stress-free transaction. By knowing what to expect, sellers can make informed decisions and get the most out of their home sale.
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Understanding the Typical Closing Costs
In Arizona, sellers generally pay about 6% of the home’s selling price in closing costs, typically including a 5% agent commission and 1% for various fees such as a reconveyance fee and a transfer fee. On a median single-family home price of $450,000, sellers can expect to pay around $22,500 for the commission alone. Also, sellers are responsible for the remaining balance of their mortgage, which can be substantial if they have not owned the home for long.
Property taxes are another cost to consider, with Arizona property taxes averaging around 0.72% of the home’s value, which equates to a median annual payment of $1,356 for a home assessed at $187,700. Sellers are also usually responsible for the title policy, ranging from $1,400 to $4,000, and half of the escrow fee, typically around $750. Some sellers may also offer a yearlong home warranty policy that costs between $300 and $600.
Negotiating with Buyers
Buyers may request concessions in the form of a credit that the seller pays instead of making repairs, which are market-dependent. If the home is part of a homeowners association, sellers should be prepared to pay any remaining dues, an HOA disclosure fee, and a transfer fee. Sellers can negotiate these costs and concessions with the buyer to reach a satisfactory agreement for both parties.
Choosing a Realtor
Working with a professional realtor in Peoria, Arizona, can be a valuable resource for navigating closing costs. They can guide you through the process, provide valuable insights, and even help with negotiations. By understanding the typical closing costs in the area, a realtor can help you budget for these expenses and offer advice on negotiating with buyers.
Receiving Funds After Closing
The timing of receiving funds from the sale of your home can vary based on the state and chosen transfer method. According to Home Bay, in wet closing states, sellers typically receive their money on or the day after closing, whereas in dry closing states, the funds are held for 24-48 hours to ensure all paperwork is in order. In Arizona, funds are usually available to sellers within one to four days of closing. Sellers can receive their funds via wire transfer or check. A professional real estate agent can help oversee this process, ensuring a smooth transition and timely receipt of funds.
Understanding and preparing for closing costs is essential for a successful home sale in Peoria, Arizona. By being aware of the typical closing costs, negotiating with buyers, working with a professional realtor, and understanding the process of receiving funds after closing, sellers can navigate the process with confidence and ease. As a home seller, you can ensure a smooth and profitable transaction by staying informed and proactive throughout the process.
