A good rule of thumb is that total selling costs land around 7-9% of the sale price, commission included. Your actual number depends on the commission in your listing agreement, whether the buyer asks you to cover their agent's compensation or closing costs, title and escrow fees, prorated property taxes and HOA dues, HOA transfer and disclosure fees, and any repair credits. Your loan payoff and any liens come out of the proceeds too. Ask for a net sheet before you list.
Selling a home in Chandler costs more than just the commission line item most sellers focus on, title fees, escrow fees, prorated property taxes, and any negotiated buyer concessions all factor into your actual net proceeds.
I'm a CPA as well as a broker, so this is the part of a sale I care about most. The price is the headline. The net is what pays for your next chapter.
Real estate commission
Commission is typically the largest single cost of selling, and it's negotiable and should be discussed openly and clearly before you sign a listing agreement, not buried in fine print.
You're obligated for the commission in your own listing agreement. If a buyer asks you to pay some or all of their agent's compensation, that's a term in their offer. Sellers often agree to it, but it's negotiated like any other term, and you'll see exactly what it does to your net before you decide.
Title and escrow fees
Arizona sales typically go through escrow, and the title and escrow company charges title insurance and escrow fees as a standard part of closing costs. These are relatively predictable and I'll give you real numbers up front, not vague estimates.
In many Arizona sales, the seller pays for the buyer's owner's title insurance policy, and escrow fees are often split. Who pays what is written into the contract, so it can be negotiated.
Prorated property taxes and HOA dues
At closing, property taxes and any HOA dues get prorated between buyer and seller based on the closing date. This is a normal part of every transaction, but it's worth understanding so it doesn't feel like a surprise deduction.
Arizona property taxes are paid in arrears, in two halves each year. That means at closing you may owe your share of taxes for months that haven't been billed yet. Escrow calculates it to the day.
HOA transfer and disclosure fees
If your home is in an association, expect fees for the resale disclosure package and the transfer. Some homes belong to more than one association, which means more than one set of fees. Ask the HOA management company early.
Repairs and concessions
Depending on inspection negotiations, you may agree to make repairs or offer a credit toward the buyer's closing costs. I help you weigh these requests against your actual bottom line so you're negotiating with real numbers, not just reacting emotionally.
Loan payoff and any liens
If you have an existing mortgage or any liens on the property, those get paid off at closing from your proceeds. I'll help you get an accurate payoff estimate early so there are no surprises.
A leased solar system is worth flagging here too. Leases are usually either transferred to the buyer or paid off, and the solar company has its own paperwork and timeline. Start that conversation the week you list.
What it costs while your home is on the market
The bills don't stop when the sign goes up. Mortgage payments, HOA dues, insurance, utilities, pool service and yard care all keep coming until closing. If your home will be vacant, keep the air conditioning running in summer and the water on, and call your insurance agent, because a vacant home may need a different policy. Those carrying costs are one more reason pricing it right the first time matters.
Taxes on the sale, from a CPA
If the home has been your main residence, you may be able to exclude a large part of your gain from federal income tax. The rule generally allows up to $250,000 of gain for a single owner and $500,000 for a married couple filing jointly, if you owned and lived in the home for at least two of the last five years. Any taxable gain may also be taxed by Arizona, which uses a flat 2.5% income tax rate.
Arizona does not charge a real estate transfer tax on home sales, which is a nice surprise for sellers coming from states that do. If you're selling a rental or a second home, the math is different, and depreciation you've claimed comes into play. Talk with your own tax advisor before you list, not after.
If you're not a U.S. resident
Sellers who aren't U.S. residents for tax purposes may be subject to federal withholding at closing under a rule called FIRPTA. Escrow will ask about it. If this might apply to you, tell me and your tax advisor at the very start, because it affects your net and your timeline.
The costs at a glance
| Cost | Who usually pays | Notes |
|---|---|---|
| Listing commission | Seller | Set in your listing agreement |
| Buyer's agent compensation | Negotiated | Only if the buyer asks and you agree |
| Owner's title insurance | Often the seller | Written into the contract |
| Escrow fee | Often split | Written into the contract |
| Property taxes | Prorated | Calculated to the day by escrow |
| HOA transfer and disclosure fees | Often the seller | Per association |
| Repairs or credits | Negotiated | After the inspection |
| Loan payoff and liens | Seller | Paid from proceeds |
What you actually walk away with
Before you ever list, I'll walk you through a full net proceeds estimate, every cost, laid out clearly, so you know approximately what you'll walk away with, not just what your home is likely to sell for. For the full selling process, see How do you sell a home in Chandler, AZ, from pricing to closing?
The bottom line
You deserve a real number before you list, not a surprise at the closing table. I'll walk you through your full net proceeds estimate honestly, up front.
Send me a message and I'll put your net sheet together.
Questions, answered.
What percentage of my sale price will go to costs?
A good rule of thumb is 7-9% of the sale price for total costs, though this varies based on your specific situation and any negotiated concessions.
Can I negotiate real estate commission?
Yes, commission is negotiable, and I'll have a straightforward conversation with you about it before you sign anything.
When do I actually pay these costs?
Nearly all closing costs are deducted directly from your proceeds at closing, you generally don't need to pay out of pocket separately.
Do I have to pay the buyer's agent?
You're only obligated for the commission in your own listing agreement. If a buyer asks you to cover some or all of their agent's compensation, that's a negotiated term in their offer.
What is a net sheet?
It's an estimate of what you walk away with after your loan payoff, commission, title and escrow fees, prorated taxes, HOA fees and any concessions.
Does Arizona charge a transfer tax when I sell my home?
No. Arizona doesn't charge a real estate transfer tax on home sales. You'll still have title, escrow, recording and commission costs, and any taxable gain may be subject to income tax.
Want to talk it through?
Bring me the specifics of your situation and I will tell you straight what I would do. No pitch, nothing to sign, and no obligation to work with me afterward.
Get your net sheet