Buying a home in Scottsdale? Your closing costs can shape your budget just as much as your down payment. It is normal to feel unsure about what these fees cover, who pays which items, and how to keep your cash-to-close manageable. In this guide, you will learn what to expect in Maricopa County, how buyer costs typically break down, and smart, low-risk ways to plan and reduce what you bring to the table. Let’s dive in.
What closing costs cover
Closing costs are the collection of lender fees, third-party charges, title and escrow services, recording costs, and prepaid items that are settled at closing. Your total cash-to-close equals your down payment plus closing costs and prepaids, minus your earnest money and any credits. Lenders must provide a Loan Estimate within 3 business days of your application and a final Closing Disclosure at least 3 business days before closing. Review these documents line by line so you understand changes and can ask questions early.
Common line items explained
Lender fees
These include application or processing, underwriting, loan origination, and any optional discount points if you choose to buy down your rate. Lender fees can appear as flat charges or a percentage of the loan amount. Exact amounts vary by lender and program, so compare offers.
Third-party charges required by the lender
Most buyers pay for the appraisal, credit report, and any flood certification or condo document review. Appraisals commonly range from about $450 to $900 based on property type and scope. Your lender will outline which reports are required for your loan.
Title and escrow services
Title work covers the title search plus title insurance policies. If you have a mortgage, the lender’s title policy is required. An owner’s title policy is optional but strongly recommended for your protection. The escrow or settlement fee covers the administration of closing.
Recording and transfer-related fees
Maricopa County charges per-document recording fees to record the deed and the deed of trust or mortgage. Arizona does not have a statewide real estate transfer tax. You will see county recording charges and any related filing fees itemized on your closing statement.
Prepaids and escrow reserves
Prepaids include your first year of homeowners insurance, prepaid interest from the closing date to month-end, and initial deposits to your escrow account to cover future taxes and insurance. These amounts change with your closing date and your lender’s requirements.
HOA fees and transfer items
Scottsdale has many HOA-managed communities. You may see an HOA transfer or estoppel fee and prorated dues at closing. Always request HOA documents and fee schedules early in escrow so there are no surprises.
Inspections and specialized reports
Most buyers pay for a general home inspection and may add pest, roof, septic, pool, or other specialized inspections as needed. These are typically paid outside of closing, though they affect your overall budget.
Miscellaneous
Courier or wire fees, notary charges, and optional home warranties may appear. Ask your escrow officer to explain any line you do not recognize.
Typical buyer closing cost range
A helpful planning rule is that buyer closing costs often total about 2 to 5 percent of the purchase price, excluding your down payment. That range includes lender fees, third-party charges, title and escrow, and prepaids. For planning only, here are illustrative examples:
- $400,000 purchase: about $8,000 to $20,000 in closing costs
- $700,000 purchase: about $14,000 to $35,000 in closing costs
- $1,000,000 purchase: about $20,000 to $50,000 in closing costs
These examples are not guarantees. Your lender’s Loan Estimate and your title company’s settlement statement are the sources for exact figures.
Who pays what in Scottsdale
- Owner’s title insurance: In Arizona, sellers commonly pay for the owner’s title policy, but this is negotiable. Sellers also typically pay broker commissions.
- Escrow and title fees: It is common to split escrow or settlement fees 50-50 between buyer and seller. This can also be negotiated in your purchase contract.
- Recording fees: Maricopa County recording fees for the deed and deed of trust are paid at closing and itemized on your statement.
- Transfer taxes: Arizona does not have a statewide real estate transfer tax. Government charges are mainly county recording fees and property tax prorations.
- Property tax proration: Arizona property taxes are paid in arrears. Taxes are prorated between buyer and seller at closing based on the closing date.
- HOA transfer and dues: In Scottsdale’s HOA communities, transfer or disclosure fees and prorated dues are common. Confirm amounts early.
Scottsdale-specific tips
- Higher price points: Scottsdale’s median pricing tends to run above the Phoenix-area average. Even if your closing costs land within the same percentage range, the dollar amounts can be higher.
- Special assessments: Some planned communities may include community facility district assessments or other special taxing district fees. Review the title commitment and seller disclosures carefully.
- Water and wells on fringe parcels: This is not typical for most urban Scottsdale lots, but if you are buying on the edges of town, confirm well and water rights, plus any needed title endorsements.
- Timing near tax due dates: Closing near property tax due dates can change your prepaid and escrow deposit amounts. Your lender may require larger initial escrow reserves in certain months.
How to plan your cash to close
Before you write an offer, build a simple worksheet:
- Down payment target
- Closing costs using the 2 to 5 percent rule of thumb
- Prepaid interest estimate based on the closing date
- Initial escrow deposits for taxes and insurance, often a couple of months for each, subject to lender requirements
- Subtract earnest money already deposited and any negotiated seller or lender credits
Ask your lender for a current Loan Estimate and request a sample settlement statement from your title company. Use both to refine your numbers.
Ways to reduce cash-to-close
You can lower up-front cash without weakening your position when you plan early.
- Seller concessions: Ask for a flat seller credit or for the seller to pay specific items, such as a portion of title or escrow fees or HOA transfer fees. Lender limits apply and vary by loan type. Conventional, FHA, VA, and jumbo programs have different caps on seller contributions, so confirm with your lender.
- Shop and compare lenders: Compare interest rates, points, and lender fees. A lower rate with upfront points may not be best if you do not plan to hold the loan for long.
- Lender credits for a higher rate: You may take a slightly higher rate in exchange for lender credits that reduce closing costs. The right choice depends on your time horizon in the home.
- Finance allowable fees: Some programs allow certain fees to be rolled into the loan amount. This increases your monthly payment and total interest cost, so review the tradeoffs.
- Use local down payment assistance: Arizona and Maricopa County programs can reduce cash-to-close for qualified buyers. Availability and rules change, so verify current options and eligibility.
- Compare optional costs: Shop homeowners insurance, home warranties, and any survey or specialized report if needed.
Items you should not cut include the appraisal if required by the lender and a thorough home inspection for your own protection. Avoid waiting until the last minute to review your Closing Disclosure. Early review gives you time to fix errors and ask for clarifications.
Your timeline, from offer to close
- Offer accepted: Open escrow and deposit earnest money per the contract.
- Within 3 business days after loan application: Your lender provides the Loan Estimate.
- During escrow: Order inspections and the appraisal, and request HOA documents if applicable.
- Final week before closing: Your lender must deliver the Closing Disclosure at least 3 business days before closing. Review it line by line and flag questions right away.
- Closing day: Confirm the final cash-to-close with your escrow officer and lender. Send your wire or bring a cashier’s check as instructed.
Wire safety tips
- Confirm wiring instructions by calling your escrow or title officer using a phone number you look up independently.
- Never act on wiring changes sent by email alone. Verify the account name and details by voice.
- Send a small verification wire if your bank allows it, then confirm receipt before sending the full amount.
Buyer checklist for Scottsdale
- Get quotes from 2 to 3 lenders and compare Loan Estimates.
- Ask your title company for a sample settlement statement and escrow instructions.
- Order a general home inspection and any needed specialized inspections.
- Request HOA documents and fee schedules if applicable.
- Confirm who pays each title and escrow item in the purchase contract.
- Verify tax prorations and any special assessments on the title commitment.
- Confirm acceptable forms of funds for closing. Many offices require a bank wire for large amounts.
- Review your Closing Disclosure at least 3 days before closing.
Where to get exact numbers
- Your lender: For a precise Loan Estimate, prepaid interest, escrow deposits, and your final Closing Disclosure.
- Your title or escrow officer: For title insurance premiums, escrow fees, HOA transfer amounts, and county recording charges on the settlement statement.
- County offices: The Maricopa County Recorder and Assessor provide fee schedules and property tax calendars, which inform proration and escrow planning.
Ready for clarity at closing
Closing costs do not have to be a mystery. With early estimates, clear expectations on who pays what in Scottsdale, and a plan to manage prepaids and credits, you can arrive at the closing table confident and prepared. If you want a concierge-level partner to help you compare estimates, negotiate credits, and keep your timeline on track, the NEWHAUS Real Estate Team is here to guide you from offer to keys.
FAQs
What are typical buyer closing costs in Scottsdale?
- Most buyers plan for about 2 to 5 percent of the purchase price for closing costs, excluding the down payment, though exact figures depend on your loan, vendor choices, and timing.
Who usually pays for owner’s title insurance in Arizona?
- It is common for the seller to pay for the owner’s title policy in Arizona, but this is negotiable and should be defined in your purchase contract.
Does Arizona have a real estate transfer tax?
- No. Arizona does not have a statewide real estate transfer tax. Buyers and sellers typically pay county recording fees and any applicable local charges.
How are property taxes handled at closing in Maricopa County?
- Arizona property taxes are paid in arrears and are prorated between buyer and seller at closing based on the closing date, with initial escrow deposits set by your lender.
Can I get the seller to pay some of my costs?
- Yes, seller concessions are common, but your loan type sets limits on how much the seller can contribute. Ask your lender for the current cap and structure.
What documents show my final closing costs?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. It itemizes every charge so you can verify amounts and ask questions in time.
What is the safest way to send funds for closing?
- Follow your escrow officer’s written instructions and verify by phone using a number you find independently. Be cautious of email-only wiring changes.
