This is one of the first questions I’d ask if I was thinking about selling my home. The other is how much is my home worth. This is especially true as home values have dropped and many owe more than their home is worth. Sorry I had to bring up this painful subject, yet reality is reality. Let’s get back to the subject at hand…
How much does it cost to sell my home in downtown or Greater Phoenix
Naturally, we can’t say exactly how much it will cost to sell your particular home, yet we can give you an estimate. We have some very nifty software that the good folks at Chicago Title have provided. On your part it just takes a phone call so we can collect some basic info. There is no obligation, no personal info is gathered and we don’t sell your blood type and mother’s maiden name to narco terrorists. You can reach us at 602-234-5777, by email at Ron@UrbanTeamAZ.com or simply use the form at the bottom of this page. How easy is that?
In the meantime, we can give you an overview of selling costs that will make you much more knowledgeable than the average home seller in Phoenix. The down and dirty formula is that it generally costs about 8.25% of the sales price to sell a home. This figure is just an average and each sale, home and contract is different. However, the 8.25% figure is on target a lot of the time and will make you sound quite intelligent at the next party you go to.
There are a number of fees and cost associated answering the question, how much does it cost to sell my home? We collected a list of common items and put them below. FYI: Not all the fees apply to every sale and there may be costs we have not included.
- Escrow Fees: The escrow company charges a fee to help conduct the transaction, hold funds in trust, create paperwork and more. See our article on what a title and escrow company does for more info or take a look at this piece from the US Government on title and escrow company services and fees.
- Title Insurance: The seller of a home in Arizona provides a title insurance policy to the buyer that insures clear title to the new owner.
- HOA Transfer Fees: If you live in a property with an HOA there will be fees associated with the transfer of the HOA, as well as the payment of an delinquent dues. There is an addendum to the Arizona Residential Purchase Contract known as the HOA Addendum that outlines who pays the transfer fee. If the box labeled “seller” is checked, guess who pays? I believe you got that answer right.
- Property Tax: Depending on what time of the year you sell your home and if you are current on your property taxes you may have to cough up a few bucks or you may get some credited back to you. This varies on every home sale.
- Real Estate Agent Commissions: When a home seller hires an agent to market, negotiate offers and sell their home they sign a listing agreement. In the listing document there is a section on commissions. What a lot of people don’t know is that the commission is not paid to the agent, it is paid to their real estate brokerage who in turn pays the listing agent and buyer’s agent a portion of the proceeds. I say this because some people think the listing agent gets all the gold and in fact the pie is split between four parties in most real estate transactions.
- Recording Fee: This is a fee the Maricopa Country Recorders offices charges to record the deed of trust and sale of the home.
- Home Warranty: Many home sellers offer a home warranty to the buyer. This fee can be paid by the buyer or seller depending on how the contract is written. Home warranty policies generally cost between $450.00 and $550.00 depending on companies and coverage.
- Home Repairs: There is no way to put a number on this one. Depends what is found during the inspection and if the seller agrees to make any repairs. Get some popcorn and watch our YouTube video on the Buyers Inspection Notice, Seller’s Response form. Its pretty good to watch when you’re having trouble sleeping too.
We’ve put together a sample Net Proceeds Sheet for you to take a look. In an actual transaction, the escrow company will supply you with a form called a HUD1 that breaks down all the costs in detail. Since it was partially created by the US Government, it is unnecessarily complex and has a section that absolutely no one can explain or understand.
I think we’ve made it to the end of this exciting article. We honestly hope it has been helpful and that you know more about how much it costs to sell a home in the Phoenix Arizona area. If you have more questions or are ready to talk to some great guys who would love to help you sell your place, let us know.
The Urban Team at Realty Executives
7600 N. 16th Street, Suite 100
Phoenix, AZ 85020
602-486-4839 – text
The Urban Team helps people purchase and sell homes, condos, lofts and land in downtown, north central, and the greater Phoenix area including Scottsdale and Tempe, AZ and is always… let us repeat ALWAYS happy to answer questions, bounce around ideas, and offer opinions.
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