Have you heard different answers to who pays what at closing in Mesa and wondered what is actually true? You want a clear picture of your cash to close if you are buying, and your net proceeds if you are selling. In this guide, you will learn typical closing costs for buyers and sellers in Mesa, what is negotiable, and how credits can reduce expenses, with simple local examples. Let’s dive in.
What closing costs cover in Mesa
Closing costs are the fees and prepaid items needed to finalize a home purchase or sale. In Arizona, buyers typically pay about 2–5% of the purchase price in closing costs, not including the down payment. Sellers often pay about 6–10% of the sale price, largely due to real estate commission plus customary seller fees.
These ranges are general. Your numbers in Mesa depend on your loan type, the title company’s fees, HOA charges, negotiated concessions, and prorations for taxes and dues.
Who typically pays what in Arizona
Buyer customarily pays
- Lender fees: origination, processing, and underwriting.
- Appraisal and credit report.
- Lender’s title insurance policy if using a mortgage.
- Recording fees for the mortgage, plus small county charges.
- Prepaid interest, first year of homeowner’s insurance, and property tax prorations as required by the lender.
- Inspections the buyer orders.
Seller customarily pays
- Real estate commission.
- Owner’s title insurance policy in many Arizona deals.
- Seller share of escrow or settlement fee.
- Payoff of any existing mortgage and related recording fees.
- Prorated property taxes for the period of ownership.
- HOA transfer or disclosure fees when applicable.
Shared or prorated items
- Escrow or settlement fee is often split 50-50 but is negotiable.
- Property taxes are prorated to the day of closing. Arizona taxes are paid in arrears, so the seller typically owes taxes for the time they owned the home and is credited accordingly at closing.
Fixed vs negotiable costs
Some costs are set by programs or county schedules, while others can be negotiated:
- Negotiable: real estate commission, who pays the owner’s title policy, how escrow fees are split, and seller credits toward buyer costs.
- Mostly fixed or regulated: county recording fees, prepaid interest calculations, and most lender-required prepaids.
- Shop-able: lender fees and rates, title and escrow providers, and inspection providers.
Typical buyer costs and ranges
Here are common buyer-side items in Mesa and what to expect:
- Loan origination and lender fees: often 0.5–1.5% of the loan amount or a set of flat fees. You can compare lenders and ask about credits.
- Appraisal: usually 350–800 dollars depending on property type and complexity.
- Credit report, flood certification, tax service: smaller fixed fees.
- Lender’s title insurance policy: typically paid by the buyer when financing. The premium varies by price.
- Escrow or settlement fee: often split with the seller and typically several hundred dollars for the buyer’s share.
- Recording fees: buyer usually pays to record the mortgage; county charges are set.
- Prepaids: first year of homeowner’s insurance, prepaid interest from closing to the first payment, and property tax prorations.
- Mortgage insurance or program fees: PMI for low-down conventional loans or FHA/VA program fees if applicable.
- Inspections: general home inspection often 300–600 dollars; pest inspection 75–200 dollars.
- HOA transfer or processing: varies by community and is negotiable between parties.
Tip: Compare at least two Loan Estimates and ask each lender about potential lender credits that could reduce your cash due at closing.
Typical seller costs and ranges
Sellers in Arizona commonly pay these items:
- Real estate commission: often the largest line item and commonly 5–6% of the sale price, but it is negotiable.
- Owner’s title insurance policy: customarily paid by the seller in many Arizona transactions.
- Escrow or settlement fee: seller share is often several hundred dollars.
- Mortgage payoff and any reconveyance or recording fees to release liens.
- Property tax prorations for the time the seller owned the home.
- Repairs or concessions agreed to during negotiations.
- HOA transfer, estoppel, or disclosure fees if applicable.
Your net proceeds are the sale price minus loan payoff, commission, seller-paid closing costs, and prorations.
How credits and concessions reduce costs
Seller credits can cover some or all of a buyer’s closing costs and prepaids, shown as a credit on the Closing Disclosure. Lenders set limits on how much a seller can contribute based on the loan program and down payment. As a general guide, conventional loans often limit concessions to 3% with a down payment under 10%, 6% for 10–25% down, and 9% for more than 25% down. FHA typically allows up to 6%. VA has its own limits. Always confirm the exact limit and eligible uses with the buyer’s lender.
You can also use lender credits or discount points. A lender credit reduces cash due at closing in exchange for a slightly higher interest rate. Paying discount points raises your upfront cost but may reduce your rate. Discuss the tradeoffs with your lender based on your time horizon.
For more on conventional program rules, review the current guidance in the Fannie Mae Selling Guide.
Sample Mesa scenarios
These simple examples illustrate how costs can stack up. Actual numbers vary by loan program, title provider, negotiated terms, and prorations.
Example A - $300,000 purchase
- Seller costs:
- Commission at 5.5%: $16,500
- Other seller costs at about 0.75%: $2,250
- Total seller closing costs: about $18,750, or roughly 6.25%
- Buyer costs:
- Closing costs at about 3%: $9,000
- Down payment example at 10%: $30,000
- Estimated cash to close: about $39,000 before any seller credits
Example B - $500,000 purchase
- Seller costs:
- Commission at 5.5%: $27,500
- Other seller costs at about 0.75%: $3,750
- Total seller closing costs: about $31,250, or roughly 6.25%
- Buyer costs:
- Closing costs at about 3%: $15,000
- Down payment example at 20%: $100,000
- Estimated cash to close: about $115,000 before any seller credits
Note: If a seller offers a 3% credit on a $500,000 sale, that is $15,000. It can offset most buyer closing costs in this example, subject to lender limits.
How to estimate your Mesa numbers
Follow these steps for a clear estimate specific to your deal:
- Get a lender quote
- Ask for a Loan Estimate with itemized lender fees and prepaids. The lender must provide this within three business days of your application per federal rules. For a plain-language guide, see the CFPB’s Loan Estimate explainer.
- Price title and escrow
- Request quotes from 2–3 Mesa title and escrow companies. Ask for premiums for the owner’s and lender’s title policies, escrow/settlement fees for each side, and recording estimates.
- Check county fees and taxes
- Review recording fees on the Maricopa County Recorder site.
- Review property tax timing and due dates on the Maricopa County Treasurer site. Remember that taxes are paid in arrears and prorated at closing.
- Confirm HOA charges
- If the home is in an HOA, request the transfer and document fees early. Decide in your offer who will pay which charges.
- Align concessions with loan rules
- If you are requesting or offering seller credits, confirm the allowable amount with the buyer’s lender before finalizing terms.
Closing timeline and required disclosures
By law, your lender must send a Loan Estimate within three business days of a complete application and a Closing Disclosure at least three business days before closing. These documents summarize your costs and the final terms of your loan. For a clear walkthrough, use the CFPB’s Closing Disclosure explainer.
Pro tips for buyers and sellers
- Compare two lenders and ask about lender credits to lower your cash to close.
- Decide early how you want to handle the owner’s title policy and escrow split so there are no surprises.
- If you need repairs, consider a closing credit instead of contractor work before close. It can simplify timelines and is easy to reflect on the closing statement.
- Price concessions and credits carefully. Raising price to cover credits can affect appraisal results.
- Model your net or cash to close with a conservative cushion. For buyers, estimate 3–4% for closing costs if you are not receiving credits.
If you want a precise estimate tailored to your Mesa property or offer strategy, reach out for a quick walkthrough. With a valuation‑first approach and a focus on risk and negotiation, Gina Wilkerson can help you align price, credits, and timing to meet your goals.
FAQs
What are typical buyer closing costs in Mesa, AZ?
- Buyers usually pay about 2–5% of the purchase price in closing costs, not including the down payment, depending on the loan, title fees, and prepaids.
Who pays for title insurance in a Mesa home sale?
- It is common in Arizona for the seller to pay the owner’s title policy and the buyer to pay the lender’s policy, but this is negotiable in the purchase contract.
Does Arizona have a real estate transfer tax?
- Arizona has no statewide real estate transfer tax; expect standard recording fees set by Maricopa County, plus any HOA or title-related charges.
How are Maricopa County property taxes handled at closing?
- Arizona property taxes are paid in arrears and prorated to the closing date, so the seller typically owes taxes for their period of ownership and is credited accordingly.
How much can a seller contribute to buyer costs?
- Limits depend on the loan: conventional loans often allow 3–9% based on down payment, FHA typically allows up to 6%, and VA has its own limits; confirm with the lender.
Who pays HOA transfer or estoppel fees in Mesa?
- Many Mesa homes are in HOAs; transfer and document fees are common and negotiable between buyer and seller, so clarify this in your offer.
