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What Are The Philadelphia Closing Costs When Selling?
Are you a homeowner in Philadelphia looking to sell your home? When looking to sell a home, we only sometimes own that home outright. There may still be a mortgage on the house, and we still owe some back taxes on our outstanding utility bill. If you are selling a home, you will need a new one after selling your residence. If you are in this situation, you should know how much the closing costs in Philadelphia are. Many different expenses go into selling a home, from title fees to transfer tax. This article will discuss every cost of selling your home in Pennsylvania, especially in Philadelphia. {How much are closing costs in Philadelphia | Philadelphia closing costs}
Agent Fees
When we use a real estate agent to sell our home, the first closing cost you need to consider is the 6% real estate agent commission which you, as a seller, are responsible for paying. You pay a 3% buyer’s agent commission, then your seller-side real estate agent commission of 3%. The median home value in Philadelphia is currently $250,000. That means if you sell a home around that price, you will pay $15,000 alone in real estate agent commission. If you are trying to walk with as much as possible, that could dip into your profit from your home sale.
When selling your home to a real estate investor in Philadelphia, you can save yourself that six percent commission since you pay a real estate agent to bring a buyer to purchase your home. When selling to a cash home buyer, they are the buyer, saving you from paying anyone to find a buyer and saving you time and money on closing costs.
Transfer Tax
Understanding transfer tax is significant when selling a home. It is 4% total, comprising 2% state and 2% local taxes (Philadelphia). No matter where you live, someone has to pay the state and local transfer tax on a home. Depending on the value of your home and your sale price, this number can start to add up. When selling your house the traditional method, you are responsible for covering this transfer tax.
If you use a company like Buying Property 215, the investor will cover both state and local transfer tax. In most sales, even on the market, this transfer tax can be negotiated on who pays for it or if it will be split. When you sell your home to us directly, we will cover the transfer tax on the sale of your home. We understand that some homeowners we come across need to walk with as much profit as possible. That is why we will cover the transfer tax when buying homes.
Title Fees
When it comes to title fees, there are a few things you must remember when selling your home. They only total a little but still, bite into your potential profit. The title search fee is the main one that you are responsible for paying. That pays the title company to perfect the title and clear any judgments, liens, outstanding bills, etc. That will usually run anywhere from $200 to $400, depending on the title company you use and how much work they must put into clearing title.
You may also have to pay a notary fee when you sell your home. Sometimes a title company has to send certain documents to be signed and notarized. Depending on how many documents need to be signed, you could be looking at a few hundred bucks.
When dealing with our company, we do not have the homeowner pay for any closing costs or title fees associated with selling a home. Our goal as home buyers is to make sure the homeowner walks with as much money as possible on the sale of their home. Our contract/sales agreement states that the seller is not responsible for paying any transfer tax or closing costs in Philadelphia.
Benefits of Selling to BP 215
Our primary focus here at Buying Property 215 is to ensure a homeowner walks with the utmost money when selling their property, which involves eliminating as many Philadelphia closing costs as possible. We often encounter homeowners who need to sell their homes quickly due to overdue taxes or mortgages. They may receive notice from the city or mortgage company looking to take their home from them. When you owe money to mortgage companies or the city, they will start to tack on interest- causing your window for profit on a home sale to go down. If you are selling a home, you may want to buy another one. If that is the case, then you need to be mindful of the closing cost in Philadelphia when selling a home. That several thousand-dollar difference could be the down payment on your next property.
Buying Property 215 is a family-owned company that understands people need to get the most for their homes. So why sell your home the traditional method if you know plenty of fees and Philadelphia real estate tax associated? If you want to sell a home in Philadelphia the easy way, check out how we can assist you, and let us make an offer today!
