Seller’s Closing Costs in Pennsylvania

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When you put your house on the market your Realtor is going to show you a seller’s net sheet, or seller’s estimated closing costs sheet. This is basically a breakdown of what it’s going to cost you to sell your house.

Typically Realtors are going to give you a high end and a low end. A lot of times when this is slid in front of a seller there are a lot of questions because there are a lot of numbers on the page, so what’s it all mean?

You’re going to see a couple of things on the estimated closing cost sheet. The first section is going to say “charges to the seller.” “Charges to the seller” is everything that is getting charged to you, the seller.

Transfer Tax

Easy enough, right? The first thing you’re going to see is a transfer tax. In Pennsylvania, the transfer tax is two percent, and half of it the buyer will pay and half of it the seller will pay.

So essentially, as the seller, you’re paying 1%.

This is where things can get a little bit tricky – sometimes different townships and cities have their own transfer tax. So, it’s not necessarily going to be only 1%.

If you are in one of these cities it might be slightly different. Your agent will be able to help you with that. 

Commissions

On the seller’s net sheet you’re going to see Commission as a charge to you. Yes, the C word! You’re going to look at that and it’s probably going be one of the bigger numbers on your page besides the mortgage payoff.

Commissions vary, but a typical commission is 6%, and sometimes different real estate offices have an additional commission or a conveyancing fee that will also be on that line as well. 

Seller Assist

On the next line down you’re going to see “seller assist.” Now, that doesn’t always happen but you do have to be prepared as a seller that sometimes buyers are going to ask for seller assist to help them pay their closing costs.

We are in a generation now where some buyers can’t or don’t really save their money like they used to so not everybody has down payment money.

The buyers of your house might need some assistance to make the purchase and if you agree to it, that’s going to come out of your proceeds. 

Use and Occupancy

On the next line down you may see a Use and Occupancy fee. Some townships have a Use and Occupancy fee required when a property is sold and some don’t, so that’s going to be up to your specific municipality.

They’re all over the board with costs so, again, your Realtor is going to know that information and will be able to put an educated number in there for you.

Also in the Charges to Seller section, you’re going to probably see some notary fees, settlement fees, things like that. These are just standard costs that might be $50 here, $50 there for different things related to the settlement.

Credits to Seller

The next section is “credits to seller” so this is money that you’re going to be getting back. This is a good section for you! Things that you may get back include municipal, county and school real estate taxes that you have prepaid for the year.  

Settlement Summary

The final line is your settlement summary, this is basically your bottom line.

You will see the sale price, whatever is being paid for your home, and then the next line down is going to be your mortgage payoff, so whatever you owe on the home is going to come off of your proceeds.

Next, the charges to the seller are going to be taken off and then finally any credits that you have coming back to you are going to get added back on. So, that final line at the bottom of the page is what you walk away with.

You should be seeing estimated closing cost sheets when you sign listing documents when you do a price adjustment when you get an offer, and if you have to give some money back to credit the buyer for anything that might come up during inspections.

This is to keep you informed and help you prepare for closing and make sure that all your needs being met, and you know what cash you will have to move forward.

Contact us today to learn more about the closing costs in Pennsylvania so we can help you find the home of your dreams.