Signing and closing
You'll typically sign closing documents 1 to 2 business days before the close of escrow date. That's normal in Arizona. You can sign at the escrow office or, in many cases, with a mobile notary. Escrow sends a settlement statement showing every debit and credit, including your net proceeds. Once the deed records with the county, your funds are wired.
Property tax proration
Arizona property taxes are paid in two halves: the first is due October 1 (delinquent after November 1) and the second is due March 1 (delinquent after May 1). At closing, escrow prorates the taxes for the year so you pay for the days you owned the home. Depending on timing, you'll either credit the buyer or receive a credit.
What stays and what goes
Under the standard Arizona contract, fixtures stay with the home unless you exclude them in writing. That includes light fixtures, ceiling fans, built-in appliances, window coverings, and in-ground pool and spa equipment. If you plan to take a chandelier, curtain rods, a mounted TV, or an outdoor kitchen item, list it in the listing and the purchase contract. Verbal agreements don't count.
Capital gains
Federal. If you owned and lived in the home as your primary residence for at least 2 of the last 5 years, you can generally exclude up to $250,000 of gain, or $500,000 if married filing jointly. Gains above that are taxed at 0%, 15%, or 20% depending on income, and higher earners may owe the 3.8% net investment income tax.
Arizona. Arizona taxes income at a flat 2.5%. Gain excluded federally isn't taxed by Arizona either. For taxable long-term gains on assets bought after 2011, Arizona lets you subtract 25%, which works out to an effective rate of about 1.875%. Arizona has no estate tax.
Talk to a CPA about your situation before you sell.
Moving checklist
- Forward your mail with USPS at least a week before closing, and update your address with banks and the IRS.
- Transfer utilities (APS or SRP, Southwest Gas, and city water) effective on the closing date, not before.
- Tell your HOA about the sale, make sure dues are current, and resolve any violations before listing.
- Cancel homeowners insurance after closing, not before.
- Keep your records: the settlement statement, closing documents, and receipts for improvements, for your tax return.
Common questions
Do I need to be at closing when I sell my house in Arizona?
No. Sellers usually sign 1 to 2 business days before closing, at the escrow office or with a mobile notary, and don't need to attend on recording day.
Do I pay capital gains tax when I sell my house in Arizona?
Often not. If it was your primary home for 2 of the last 5 years, up to $250,000 of gain ($500,000 for married couples) is generally excluded from federal tax, and Arizona follows the federal treatment. Ask a CPA about your specific case.
Does the pool equipment stay when I sell?
Yes. Under the standard Arizona contract, in-ground pool and spa equipment conveys with the home unless you exclude it in writing.
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Fees and tax rules change, so confirm current figures with me, your escrow officer, and your CPA before you rely on them.