Closing Costs in Pennsylvania: A Guide for Sellers
Selling a home in Pennsylvania comes with its share of expenses, including closing costs. Closing costs are various fees and expenses that arise during the final stages of a real estate transaction. These costs typically include taxes, agent commissions, and administrative fees.
Sellers need to be prepared for specific closing costs unique to Pennsylvania. Our guide will walk you through the essential costs to expect when selling your property in Pennsylvania, ensuring you know what to anticipate and budget for as you proceed with your sale.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are the expenses paid to finalize a home sale. These costs include property taxes, insurance, and administrative fees. Some closing costs, such as transfer taxes, can vary depending on where your home is located at the time of sale.
Understanding these fees will help you prepare for the financial obligations of selling a property. Learn more about who typically covers closing costs and what to expect in your transaction.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to settle the outstanding balance on your mortgage, known as the loan payoff amount. This amount includes the remaining principal balance and any interest accumulated over time. In some cases, additional fees such as late charges or prepayment penalties may also be part of the payoff amount.
The loan payoff amount must be clear before the sale can be completed. Ensuring the loan is fully paid off allows the seller to transfer a clear title to the buyer, free of any mortgage obligations.
Property taxes
According to WalletHub, Pennsylvania ranks 40th in the country in terms of property taxes, placing it above states like Ohio and Texas.
Real estate in Pennsylvania is taxed at a rate of 1.36%, with a median home value of $312,000. To get a better idea of what you might owe, consult a property tax calculator.
