If you’re thinking of selling a house in Arizona or anywhere else in the country, it’s important that you take your time, do your research, and not rush into things.
One of the main considerations when selling a house is of course the cost. So how much does it cost to sell a house? There are a number of variables in play and things to consider.
The average listing house price in Arizona, as of June 2024, was $515K. The average price a home sold for was $575K. If you’re thinking of selling your home in AZ however, it’s important to know the hidden fees, and how much you can expect to pay.
But how much does it cost to sell a house in AZ? Here’s a look at everything you need to know.
What are the Costs of Selling a Home?
Selling a property isn’t the same as selling an old treadmill or piece of furniture you don’t use anymore. You can’t just list it on Facebook Marketplace of Craigslist, accept an offer, and sell it to a member of the public on the same day.
There are a lot of hidden fees and expenses associated with selling a home in Arizona, and if you aren’t aware of them, it can be a nasty surprise when the time comes to complete the sale. To help break them down, here are some of the most common costs associated with selling a home.
Location
Here in the States, location can play a huge factor in determining how much it costs you to sell a house. This is because different states have different laws and regulations. In Arizona, the average cost to sell a house, as of 2024, is 6.35% of the total value of the final sale price of the property. In some states this is more, whereas in others it’s less.
Real Estate Agent Commission
Perhaps the biggest cost when it comes to selling a house in Arizona, is the real estate fees. For sellers who are working with a real estate agent, the commission you pay to the agent will likely be the biggest cost when selling your property.
Now, as far as what percentage you pay your realtor, that all depends on which real estate agent you go with. Some real estate agents will charge a commission as low as 2% of the final sale value of the house, whereas others will charge as much as 6%. In Arizona, on average you can likely expect to pay around 5.44% in total commission, though all commissions are completely negotiable.
It’s worth repeating that real estate commission fees can always be negotiated, so see what you can work out before you commit to making a deal. Some real estate companies like Az Flat Fee charges a fixed flat fee instead 6-7% real estate agent commission.
You should also be aware that, as of August 2024, the National Association of Realtors lawsuit settlement took effect which changes the way real estate agents are able to share information regarding commissions, how contracts are written, and explicitly reinforces the fact that all commissions are negotiable.
House Refurbishing Costs
The condition that you sell your home is up to you. Before putting their home on the market however, most sellers will invest money in sprucing up and refurbishing their home to make it more attractive to buyers.
If there are general repairs that need carrying out, or if perhaps the exterior needs a coat of paint, you may wish to consider doing this before listing the house as this will help attract more interest.
Any repairs or refurbishments that you carry out, though, are going to cost money and will eat into your final profits once the sale has completed, so just be aware of this. If spending $2K means that you get an extra $20K upon completion however, it’s probably worth doing, but that’s entirely your call.
Home Sale Closing Costs
In terms of selling an Arizona home, even though buyers are responsible for paying most of the closing costs, you as the seller will still have a few that you need to cover on your end. Closing costs include things such as title insurance, settlement fees, HOA fees, property taxes, transfer taxes, concessions, and potentially wire transfers and escrow.
Moving Fees
Don’t forget, when you sell your home you’re of course going to have to move into a new place. Because of this, there are going to be moving fees whether it is the cost of a pizza to feed your friends as they help, or the cost of paying a full moving company to do it all for you.
According to research, the average moving cost for a two-bedroom house in the US is up to $1,440. Just be aware that the further you’re moving, and the more stuff you’re moving, the higher your moving costs are going to be.
Mortgage Payments
While it seems obvious, it is worth pointing out that unless you’ve already paid off your mortgage, you’re still responsible for paying what’s owed when you close the sale. You may also have additional fees if your mortgage carries a prepayment penalty (though not very common), so it’s important to check the terms and conditions beforehand.
So, How Much Does it Cost to Sell a House in Arizona?
Okay, so, the moment of truth. How much is it going to cost you to sell a home in Arizona?
Well, before we answer that question, it’s worth noting that this figure is changing all the time, and things such as house prices, inflation, and interest rates can all influence how much selling an Arizona house is going to cost you.
Generally speaking, seller closing costs in AZ are between 8% and 10% of the final sale price of the property. This is up from the 6.35% from the start of 2023. Roughly speaking sellers can expect to pay between $35,250 and $44,100, when selling their home, based on average sales prices.
