bowlingforki…, Other/Just Looking in

Thinking of buying in Philadelphia, but I just heard that closing costs are as much as 5% of the sale price...

Asked by bowlingforkittens, Sat Jul 14, 2007

Can anyone provide some insight into buying a home in Philly (taxes, transfer fees, why closing costs are so high)? Thanks for your help!

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In most of PA the transfer tax is a total of 2%, with 1% paid by buyer and seller. In Philadelphia the total transfer tax is 4%, 2% paid by each buyer and seller. Take that 2% and add on title insurance, lender fees, escrows, and misc fees and it certainly could reach upwards of 5%. If you do not have much money to put down, make sure you have a strong buyers agent working for you and try to get the seller to "assist" you with some closing costs. You agent (and/or lender) should give you a fairly accurate estimate of closing costs before you go to look at your first home.
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3 votes Thank Flag Link Sun Jul 15, 2007
The acquisition costs associated with a home purchase are an unfortunate consequence, but necessary. Steps can be taken by you to mitigate these expenses. For example, search for properties that offer a tax abatement; seek mortgage programs that offer you reduced fees and lower interest rates; in this buyer's market, a seller assist certainly is not an unreasonable request; etc. The bottom line: enlist the services of a buyer's agent to be your advocate & guide to getting the best terms possible.
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1 vote Thank Flag Link Sun Jul 15, 2007
A great way to find out how much it will cost you to move to Philadelphia is to contact a PA mortgage company and ask them to give you a good faith estimate on a property that you like. They need the property so they can calculate the taxes into the mix. If you are working with a realtor in PA they should be able to help you with your costs to close as well.
1 vote Thank Flag Link Sat Jul 14, 2007
Not sure if you're still looking or if you've already learned the answer to your own question, but I figured I would send you a response anyway- just in case!
Basically, you need a minimum of 3.5% of the purchase price as a down payment on your home... Closing costs can often be rolled into your loan amount so that you don't need that extra cash up front at settlement. If you're looking to buy in the Queen Village/Pennsport area, give me a call or shoot me an email. I focus the majority of my business in the area and am also a resident of Pennsport.
Julie Arrick
0 votes Thank Flag Link Mon Sep 27, 2010
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