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How much do Phoenix home sellers actually keep?
Most Phoenix sellers net between 92% and 95% of their sale price before their mortgage payoff — meaning total transaction costs run roughly 5–8%. Agent commission is the single largest line item and has been fully negotiable since the 2024 NAR settlement. Arizona charges no state transfer tax, so that cost simply doesn’t exist here. Your actual number depends on your negotiated commission, your remaining loan balance, your closing month, and whether you agree to buyer concessions.
By Dr. Kevin Shufford | July 17, 2026
Sellers rarely open with “what’s my home worth?” anymore. They open with “what do I actually walk away with?”
That’s the smarter question. Value is an opinion until someone writes an offer. Your net is arithmetic — and almost every input is knowable before you list. Here’s the whole calculation, with Phoenix numbers.
The Line Items That Come Out of Your Sale Price
I’ll use a $600,000 sale price as the working example — a realistic figure across much of Phoenix proper.
Agent commission. This is the biggest cost of selling, and the rules changed after the 2024 NAR settlement. You negotiate your listing agent’s fee directly; in Phoenix that typically lands between 2.5% and 3%. Whether you also offer compensation to the buyer’s agent is now a decision, not a default — many sellers still do it to reach the widest pool of buyers.
- Listing side at 2.75%: $16,500
- Buyer’s agent compensation at 2.5% (optional): $15,000
- Both sides: ~$31,500
Owner’s title insurance. In Arizona, the seller customarily pays for the owner’s policy that protects the buyer’s ownership going forward. On a $600K property: ~$1,800–$2,600
Escrow fee. The title company’s coordination work — documents, funds, recording. Typically split 50/50 in Arizona. Your half: ~$600–$900
Recording and miscellaneous fees. Arizona’s deed recording fee is a flat $2 plus small per-page charges. Recording and misc: ~$50–$150
State transfer tax. Arizona doesn’t have one. Here: $0
Property tax proration. Arizona property taxes are paid in arrears, and at closing you’re responsible for your share of the year up to your closing date. Arizona’s effective rate runs around 0.45% of value, so a $600K home carries roughly $2,700 a year. Depending on your closing month and what’s already been paid, expect: $500–$2,200
HOA transfer and document fees. If your home sits in an association — common across much of the Valley — the seller pays transfer and disclosure document fees: $200–$600
The working net sheet: $600K Phoenix sale
| Cost | Low | High |
|---|---|---|
| Listing agent commission (2.75%) | $16,500 | $16,500 |
| Buyer’s agent compensation (2.5%) | $15,000 | $15,000 |
| Owner’s title insurance | $1,800 | $2,600 |
| Escrow fee (seller’s half) | $600 | $900 |
| Property tax proration | $500 | $2,200 |
| HOA transfer and document fees | $200 | $600 |
| Recording / misc | $50 | $150 |
| Total transaction costs | $34,650 | $37,950 |
| Net before mortgage payoff | $565,350 | $562,050 |
Subtract your loan payoff to get cash at closing.
- Owe $280,000: net cash ~$282,000–$285,000
- Owe nothing: net cash ~$562,000–$565,000
What Doesn’t Show Up on the Closing Disclosure
The table above covers what escrow itemizes. The costs that surprise sellers happen earlier.
Your mortgage payoff isn’t your statement balance. Payoff includes interest accrued through the day funds are wired, plus any recording or demand fees your servicer charges. It’s usually a few hundred dollars more than the number in your app. Order the payoff demand early so it isn’t a last-minute swing.
Pre-listing repairs and updates. Phoenix buyers touring a home in the $400K–$800K range notice deferred maintenance immediately — an aging HVAC system, a roof at the end of its life, a pool needing resurfacing. You’ll pay for it either upfront or in the negotiation after inspection. If you’re weighing whether to fix anything at all, I’ve broken that decision down in detail in selling as-is versus fixing up in Phoenix.
Staging and photography. Presentation drives showings, and showings drive offers. Budget $1,500–$4,000 depending on size and scope.
Buyer concessions. This is the line sellers underestimate most. Closing cost credits, rate buydowns, and repair allowances all come off your net. On a $600K sale, a $5,000–$12,000 concession is a realistic planning number — build room for it rather than being surprised by it.
Appraisal risk. If the buyer is financing and the appraisal comes in under contract price, you’re renegotiating, the buyer is bringing extra cash, or the deal breaks. Accurate pricing on day one is your best protection, and it helps to understand how a low appraisal plays out under Arizona’s 5-day rule before you’re in it.
One note on service providers. You’ll hear title and escrow companies recommended throughout the process, sometimes by people affiliated with them. You are never required to use any particular provider — you have the right to choose your own settlement service providers, and it’s fair to compare fees. If you want the full picture of who pays what at the table, here’s how Arizona closing costs actually break down.
Your Disclosure Obligations Affect Your Net Too
Under the AAR purchase contract, you deliver a completed SPDS — Seller’s Property Disclosure Statement — within three days of accepting an offer. Arizona law requires disclosure of material facts that could affect value or the buyer’s use and enjoyment of the property.
This connects to your net directly: an undisclosed issue that surfaces during inspection becomes a credit request, a price reduction, or a cancelled contract. Work through the SPDS before you list, not after you’re under contract — it gives you time to fix or price around what you find.
Here’s what I tell every Phoenix seller who asks me this question: the 5–8% is largely fixed, but the sale price and the concessions aren’t. That’s where your net is won or lost — in the pricing decision and the negotiation, not in the escrow fee.
And because I’m a licensed loan officer as well as an agent, I can run your payoff and your next purchase in the same conversation. Most sellers are also buyers, and the two sides of that move should be planned together.
Want your real number? I’ll build a net sheet for your specific address — your loan, your closing timeline, your situation — before you commit to anything. Request your free Phoenix seller net sheet at thepropertyprofessor.blog or call or text me at 480-725-4658.
Frequently Asked Questions
Does Arizona charge a transfer tax when you sell a home in Phoenix?
No. Arizona has no state transfer tax, and the state constitution prohibits one. Your only recording cost is a minimal flat county fee, which is why Arizona sellers keep more than sellers in states like California or New York.
How much are realtor fees in Phoenix?
There’s no standard rate — commissions are fully negotiable between you and your agent following the 2024 NAR settlement. Listing-side fees in Phoenix commonly run 2.5–3%, and offering compensation to the buyer’s agent is a separate decision you make as the seller.
Who pays for title insurance in Phoenix?
By custom, the Arizona seller pays for the owner’s title insurance policy protecting the buyer, and the buyer pays for the lender’s policy. Escrow fees are typically split 50/50. All of it is negotiable in the contract, and you may choose your own settlement service providers rather than a recommended one.
Why is my mortgage payoff higher than my loan balance?
Payoff includes interest accrued through the exact day escrow wires the funds, plus any demand or recording fees your servicer charges. It’s normally a few hundred dollars above your app balance — request the payoff demand early so it doesn’t move your net at the last minute.
Do seller concessions come out of my net proceeds?
Yes. Closing cost credits, rate buydowns, and repair allowances are deducted at closing just like commissions. Planning for a concession in the $5,000–$12,000 range on a mid-priced Phoenix sale keeps your expectations accurate rather than optimistic.
Want your own estimate? Run the math with my seller net proceeds calculator to see what you’d likely walk away with.
About Dr. Kevin Shufford
Dr. Kevin Shufford holds a PhD in Communication and is a professor who teaches how to have healthy relationships — skills he brings directly to his real estate practice. As a licensed real estate agent and mortgage loan officer serving the Phoenix metro and Southern California markets, Kevin operates as The Property Professor under Real Broker and One Real Mortgage. He specializes in helping first-time buyers, move-up buyers, and higher-income professionals navigate the buying and lending process with confidence. Connect with Kevin at thepropertyprofessor.blog or call 480-725-4658.
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