How Much are Typical Seller Closing Costs in Pennsylvania
According to Zillow, the median home in PA sold for $198,377. Here’s how you can save approximately $5,951 in commissions on an average PA home by selling it For Sale By Owner on Houzeo.com
Congratulations! You’re just one step closer to complete your home-selling transaction. As a seller, closing on a property can be one of the greatest moments. However, it can also be exhausting and stressful alone if you aren’t prepared for the process. Pennsylvania can be an expensive state. Also, several real estate regulations make it a tedious state to sell a property.
As a Houzeo For Sale By Owner (FSBO) seller, we expect you to go to your closing prepared. Our comprehensive Pennsylvania Home Seller Guide will help you accomplish exactly that.
In this section, we’ll discuss the key documents and expenses you need to be aware of when closing on a home in Pennsylvania.
What Are the Different Home Seller Closing Costs in Pennsylvania?
Here are the typical closing costs in Pennsylvania.
1.Mortgage Payoff: This is one of the biggest fees on your list of closing costs. This could include any remaining balance or prepayment penalty on your property. Moreover, you have to pay the recording fee, principal balance, interest accrued from the last payment to the day of closing, and any penalty that the lender might charge you.
2. Real Estate Broker Commissions: The typical commission fees in Pennsylvania can run around 6%, usually split between the listing and buyer’s agents. In other words, the listing broker is paid for 3% and the other 3% is given to the buyer’s agent. However, it’s important to note that this fee varies greatly with the level of service, deal, or work done. If you’re selling FSBO via Houzeo, congratulations… You’ve likely saved thousands by paying $0 in listing agent commission! Go on. Pop a bottle of the finest Champagne or Scotch. You deserve it.
3. Title Insurance: This is usually required by the lender that protects the new homeowner from the title defects to a property. For instance, the seller often pays the owner’s title insurance to protect the buyer’s right of ownership in the property. The cost could be estimated at $1000.
4. Attorney and Escrow Closing Fees: The Pennsylvania law requires an attorney’s presence during the closing day. Although the fee varies entirely on the amount of work and what type of home is being sold. The estimated cost in the Pennsylvania attorney fee would charge between $150 to $500.
5. State, County, and City Transfer Taxes: This fee is charged for transferring your property title to the new owner. In Pennsylvania, they charge a rate of around 1% of the sales price and another 1% to the municipality and school district. This brings to a total of 2% which is, of course, split between the buyer and seller.
6. Property Survey: Usually charge a range anywhere from $300 to $950 (varies on the size, location, and the area’s shape), it could be requested by the buyer’s lender that may depend on the property.
7. Escrow Closing Fees. Most homeowners hire a third party or a mortgage lender for managing and paying real estate taxes, homeowners’ insurance, and even fire and flood insurance. The typical fee would be a one-year advance and two months’ worth of homeowner’s insurance.
8. Home Inspection: (average cost of $150-400) Some lenders want to perform a property inspection to ensure the house is in good condition. If you want to examine the HVAC system, interior plumbing, basement, and other structural components, you’ll likely need to pay a fee.
9. HOA Dues, Document Fees, and Transfer Fees: If the property falls under a Homeowners Association, you may be subject to various other charges. These include HOA dues, a document fee at the beginning of Escrow, and a transfer fee at the end of Escrow. You can check more details on this website.
10. Miscellaneous Fees can include Flood Certification ($8 – $10), PA real estate agency fee (roughly $500), Underwriting (roughly $225), Final Document Recording (roughly $335), Pest Infestation Inspection ($50 – $100), Mortgage Application Processing (approximately $700 – $1000 varies on the lender), Notary Services ($35).
How Should I Prepare for My Pennsylvania Home Closing?
Your closing agent will most likely schedule a certain date for your closing. Here’s how to prepare for your closing day.
1. Review Your Closing Documents in Advance: Make sure the closing documents are ready and available before the scheduled closing date takes place. Remember to review the documents thoroughly and understand the provisions stated. Here are some crucial documents that you’ll perhaps sign at closing:
Most properties in Pennsylvania are purchased with a mortgage. If that’s the case, then you’ll have to complete the Closing Disclosure, which contains the costs in detail. But if your transaction is all cash, you need to get the HUD-1—although it’s rare these days. The HUD-1 or Closing Disclosure detail the over-all amounts you’re being charged for, your loan payoffs, if any, and the net process you will take to the bank. Remember, depending upon how much equity you have in the property, you might be asked to bring a check (or send a wire) on the closing date. Ensure there are no typos in your name, address, property address, bank info, and other details. Then review every amount and the totals to ensure there are no mathematical errors or inadvertent costs. You’ll be surprised how many times these documents have errors – this is one of the reasons our founder launched Houzeo.
The Deed: This document enables the legal transfer of title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, deed book page, and the Property Identification Number (PIN), if any. We know of a case where a Seller sold a $94,000 property, but the deed also legally transferred over the Seller’s 5 other homes worth $680,000 over to the Buyer. There was a huge scramble post-closing to correct this mistake. It could have been a nightmare for the Seller if the Buyer didn’t honestly transfer the rest of the properties back to the Seller.
2. Ask Questions if You’re Confused. Make sure you schedule an appointment with your closing agent before the scheduled closing date. Before the closing day, ask for clarifications. Do some initial research and contact your lawyer for some legal matters you have doubts on.
3. Bring TWO Forms of Official Identification: A licensed notary will be present and require you to swear or promise your identity—and who you say you are. Don’t forget to bring your valid driver’s license or passport. Also, carry a secondary I.D. as well. Here’s a quick list of the things you need to bring in the closing date.
- Government-issued photo identification of all sellers on the home contract
- Any questions you have regarding your closing statement
- The deed of your home if you own it outright
- Access information, main keys and security codes for your home
- Documentation of repairs you’ve made per the home inspection
- Your lucky pen for signing papers.
Now you’re ready! You might’ve heard horror stories of people being blindsided by high closing costs in Pennsylvania – but that’s often the result of not preparing and educating themselves ahead of time. If you are a Houzeo For Sale By Owner Seller in Pennsylvania, we want you to be one of the most educated home sellers out there. Next step, log on to Houzeo.com and list your home for sale by owner. You’ll be in full control of your listing, and save thousands in the process!
Note: This is only a quick guide for all the sellers in Pennsylvania. Despite most information readily available online, seeking expert advice helps progress the process of selling a home.
Related Keywords: why are closing costs so high in Pennsylvania, real estate closing process Pennsylvania, closing costs in pa for cash buyer, seller closing costs calculator, taxes on selling a house in pa, closing costs Philadelphia, selling a house as is in pa, how much will I make selling my house in pa