What will you actually pay at the closing table in Scottsdale? If you are buying your first home or moving up, the mix of fees, prepaids, and local rules can feel unclear. This guide breaks down each cost category, shares a simple 2% to 5% rule of thumb, highlights Maricopa County nuances, and gives you a step-by-step plan to avoid surprises. Let’s dive in.
What buyer closing costs include
Closing costs are the fees needed to finalize your purchase, separate from your down payment. In Scottsdale and across Maricopa County, they typically fall into five buckets:
- Lender fees: origination or points, underwriting, processing, credit report, and sometimes a rate lock fee. If you use FHA, VA, or another program, there may be upfront mortgage insurance or a funding fee.
- Title and escrow fees: lender’s title policy, optional owner’s title policy, title search, and the escrow or closing fee.
- Prepaid items: first year of homeowners insurance, prepaid interest from your closing date to month-end, and initial escrow deposits for taxes and insurance.
- Third-party fees: appraisal, inspections, HOA transfer or estoppel charges, and small items like notary, wire, and courier fees.
- Government and recording fees: Maricopa County recording charges for the deed and deed of trust.
Most buyers can plan for about 2% to 5% of the purchase price in closing costs, not including the down payment. The final number depends on your loan type, whether you pay points, HOA fees, and what you negotiate with the seller.
Scottsdale and Maricopa specifics to know
- Recording is per document and page. Maricopa County Recorder posts set fees for recording your deed and loan documents. Your title company will estimate these for you.
- Transfer tax is not typical in Arizona. Expect recording fees rather than a transfer tax, which keeps costs more predictable.
- Owner’s title policy is local custom. In some Arizona markets the seller often pays for the owner’s policy, but it can be negotiable. Confirm common practice for your specific Scottsdale property with your agent and escrow officer.
- HOAs are common. Many Scottsdale condos and planned communities charge transfer, disclosure, or estoppel fees. Amounts vary, and who pays can be negotiated. Get these numbers early.
- Property tax proration matters. Maricopa County taxes follow a county schedule and are prorated between buyer and seller at closing. Escrow will calculate proration and any required reserves for your lender.
How to estimate your cash to close
A simple framework works well early on: plan for 2% to 5% of the purchase price for closing costs. Use the lower end for cash purchases or low-fee loans, and the higher end if you buy with points, have larger HOA or title costs, or pay the owner’s title policy.
Quick examples
- $400,000 purchase with 20% down. At 3%, closing costs would be about $12,000. This covers typical lender, title, prepaid, and third-party fees. Your actual costs could be lower or higher.
- $750,000 purchase with 10% down and an HOA. At 3.5%, closing costs would be about $26,250. Points, escrow reserves, and HOA fees can move this number.
Always ask your lender for a Loan Estimate early and your title company for a closing cost estimate. These two documents will anchor your plan.
Common line-item ranges
These are planning ranges. Exact quotes will come from your lender, title company, and HOA.
- Appraisal: about $400 to $900, depending on property type and complexity.
- Credit report: about $25 to $50.
- Origination, underwriting, processing: roughly $400 to $1,500 total, varies by lender and program.
- Title insurance and search: scales with price. Combined lender and owner policies often range from several hundred to a few thousand dollars.
- Escrow or closing fee: about $300 to $1,000, often split in many transactions.
- Recording fees: set per document and page by Maricopa County.
- Homeowners insurance prepay: first year premium, often $600 to $2,000 or more based on coverage and property.
- Escrow deposits for taxes and insurance: commonly 2 to 3 months of reserves, depending on closing date and lender policy.
- HOA estoppel or transfer fee: often $100 to $500 or more. Amounts vary by community.
- Wire, courier, notary: usually $25 to $150 total.
Who pays which fees
Some fees fall clearly to the buyer, such as lender charges, appraisal, and inspections. Others are negotiable or follow local custom, including the owner’s title policy and the escrow fee split. HOA transfer or disclosure fees also vary. Discuss these items with your agent before you write an offer, since they can shift your cash to close by hundreds or thousands of dollars.
Prepaids, escrow, and property taxes
You will likely pay the first year of homeowners insurance at closing. Your lender may also start an escrow account that holds monthly reserves for taxes and insurance. Maricopa County property taxes are prorated at closing based on the county’s assessment and billing schedule. Escrow or title will calculate the exact credits and reserves based on your closing date.
Your key documents and timing
- Loan Estimate (LE): Your lender must provide this within three business days after you submit a complete application. It outlines loan terms and estimated closing costs.
- Closing Disclosure (CD): You must receive this at least three business days before closing. It shows your final cash to close by line item.
- Settlement statement and title commitments: Your title and escrow team will share an itemized estimate, then your final settlement statement for signature at closing.
Compare your LE to your CD and ask questions about any large changes. This is the best way to prevent last-minute surprises.
Steps to keep costs under control
Early, before you write an offer
- Get prequalified and request a sample Loan Estimate for your loan type.
- Ask your agent about typical local customs in Scottsdale, like who pays the owner’s title policy and how escrow fees are split.
- If the home is in an HOA, request HOA contact info from the listing side and ask about estoppel or transfer fees.
After your offer is accepted
- Ask title and escrow for an itemized preliminary closing estimate.
- Schedule inspections and your appraisal as needed.
- Obtain homeowners insurance quotes and be ready to pay the first year premium at closing.
- Confirm property tax proration details with escrow and review the county tax amount.
Final week before closing
- Review your Closing Disclosure and compare it to your Loan Estimate.
- Confirm wiring instructions by calling your escrow officer at a verified phone number.
- Make sure funds are in the required form, often a wire or cashier’s check, and that you meet the delivery deadline.
Protect your funds from wire fraud
Wire fraud attempts are common in real estate. Always verify wiring instructions by phone using a trusted number from your escrow officer. Never rely on emailed changes. If anything looks off, pause and call before you send funds.
Ready to plan your cash to close?
You deserve a clear, low-stress path to the keys. Our team pairs hyperlocal Scottsdale insight with concierge-level coordination so you know exactly what to bring to closing and why. If you are ready to map your numbers and strategy, connect with Timeless. Schedule a Consultation & Get a Free Home Valuation. Hablamos español.
FAQs
What are typical buyer closing costs in Scottsdale?
- Most buyers plan for about 2% to 5% of the purchase price in closing costs, not including the down payment. Your loan program, points, title allocation, HOA fees, and prepaids affect the final number.
How are Maricopa County property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the county’s schedule and your closing date, and your lender may collect 2 to 3 months of reserves for an escrow account.
Who usually pays for the owner’s title policy in Scottsdale?
- It follows local custom and negotiation. In some Arizona deals the seller pays, but it can vary by property and terms, so confirm with your agent and escrow company.
What HOA fees should I expect when buying a Scottsdale condo or home in an HOA?
- Many communities charge transfer, disclosure, or estoppel fees that often range from about $100 to $500 or more. Responsibility for these fees can be negotiated in the contract.
When will I know my exact cash to close?
- Your Closing Disclosure arrives at least three business days before closing and shows final numbers. Compare it to your initial Loan Estimate and ask about any differences.
Do discount points change my upfront costs?
- Yes. Paying points lowers your interest rate but increases cash to close. Have your lender model scenarios so you can weigh the breakeven versus your hold period.
