Closing Costs in Philadelphia: A Guide for Sellers
Are you selling your home in Philadelphia? As you prepare for this major step, you might be wondering about the closing costs. Closing costs encompass a range of fees and expenses that sellers are typically responsible for during the final stages of a real estate transaction.
These include taxes, agent commissions, and other miscellaneous charges. In our concise guide, we’ll break down the different closing costs you can expect to encounter in Philadelphia and explain what sellers typically pay, helping you feel more confident as you complete the home sale process.
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?
When selling a property, closing costs refer to any fees you pay during the final stages of the transaction. These can range from standard charges like property taxes and insurance to location-specific expenses, such as transfer taxes. While some of these costs apply to nearly every home sale, others can fluctuate depending on your property’s location and local regulations.
Closing costs are an essential consideration when selling your home, as they help ensure a smooth transfer of ownership. In Philadelphia, understanding which fees you might be responsible for is key to a successful sale.
Mortgage/Loan payoff amount
One critical step before selling your home is settling the outstanding mortgage. The loan payoff amount refers to the remaining balance due on your mortgage, including any unpaid principal and accrued interest. This amount must be fully paid off to finalize the terms of the loan and complete the sale.
Additionally, the loan payoff amount may include extra fees such as prepayment penalties or administrative costs. It’s important to get an accurate payoff statement from your lender to ensure all terms are met before the closing.
Property taxes
According to WalletHub, Philadelphia ranks 40th in the country in terms of property taxes, placing it below cities in other states like Rhode Island.
Real estate in Pennsylvania is taxed at a rate of 1.41%, with a median home value of $312,000. To get a better idea of what you might owe, consult a property tax calculator.
