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Title Fees, Typically split between the buyer and seller depending on the type of financing Escrow fees and title insurance are the main costs here.
Recording fees, Certain documents need to be record with the county recorders office in order for a closing to take place. Documents like the deed of trust and promissory notes are recorded at closing
Property Taxes, Property taxes are paid twice a year. The seller will be required to credit the buyer at closing the amount of the taxes from the last time they were paid until the day of closing. When the next tax payment is due the buyer will be required to pay the whole amount including when the seller owned the property.
Brokerage Commission, Typically paid by the seller to a real estate brokerage like RE/Max, This fee is to compensate the Broker(s) involved in the sale for services in marketing the property, finding a buyer, and assisting in the negotiations. Commissions are typically a percentage of the sales price, and are established between the seller and the listing broker in a listing agreement. The listing offers the buyer agent a co-broke commission as an incentive to find buyers for the property.
Points, Typically paid by the buyer for mortgage services. A loan origination point is used to pay the loan officer for their services in coordinating the loan. Discount points are typically used for buying down interest rates or other mortgage fees. Sellers can pay points for buyers as negotiation of the sale.
Appraisal Fees, Typically paid by the buyer. An appraisal is usually required by a lender giving a mortgage to a buyer to insure the property have enough value to justify the loan amount. An appraiser will compare other properties in the area that have sold recently to determine the value of the property in question. The appraiser will also make sure the home is in livable condition, especially in a VA or FHA loan. More on appraisals here.
Inspection Fees, The buyer will almost always have an inspection period where he can inspect the property for defects. We highly recommend buyers hire a licensed home inspector when appropriate. In a typical situation in Arizona the buyer can ask the seller to make repairs to the property. In the Arizona Association of Realtors standard contract the seller will also agree to make sure important parts of the home will be functional at closing like mechanical, electrical and plumbing. More on home inspections here
Home Warranties, It is very common for a seller to provide the buyer with a home warranty. A typical home warranty will cost between $300 and $350. This covers the home for one year from the day of closing. Their are several warranty companies to choose from and each company will have different products. Home warranty companies will charge a trip charge (typically $35 to $50) when called upon, but they will fix any problem that is covered under the warranty. Be aware that most of the time preexisting conditions are not covered. You may be required to provide an inspection report from a licensed home inspector to prove the issue was not preexisting. A real good reason to hire a home inspector. More on home warranties here
Property Insurance, Required by a lender when buying a home. If you pay cash for a home you are not required to have hazard insurance but should think about it seriously. Most insurance companies require payments yearly so you will be required to pay one year of insurance up front. You may also need to pay a few months for your impound account to insure the lender will have enought money to pay the next insurance bill
Homeowner Association Dues, HOA dues will need to be prorated so the seller pays up to the day of closing and the buyer from closing forward. HOA’s also charge fees for transferring the membership from the seller to the buyer. Weather the seller or buyer pays these fees is a negotiable item in the purchase contract
Prepaid Interest, I the buyer is getting a loan the lender will require payment of the interest on the loan from the day of closing to the end of the month at closing. The next mortgage payment will be at the end of the next month as mortgage payments are made at the end of the month not the beginning like rent payments.
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