Hello BPs! How much is the closing costs in general in PA? by county/area etc.
4% usually split between the buyer and seller.
You want to figure $620 for title search, $1,000 for document preparation and recording fees $1,000 for title insurance maybe and 4% of the purchase price for State and City taxes.
agree with @David Bokman , i have run the numbers for my properties and they average about 4% of the cost of the property for closing.
@Donnell Evans you should switch title companies ASAP if they are charging you that much. Most charge about $250 for a title search. And as a wholesaler you should know its not maybe 4% it is 4% in Philadelphia! Transfer fee's and closing cost add up to 4% which in my case usually get's split between both buyer and seller so that's 2% each.
On a $50,000 deal expect to pay $2000 in closing costs and fees.
@David Bokman I pay $350 toward the title search which i get back from the end buyer on a wholesale deal but the title search costs $620 total so that's what the end buyer pays and I didn't say maybe 4% for the taxes I said maybe $1,000 for title insurance. I said all of this assuming he was asking in an attempt to figure out his end buyers total costs. I agree I pay too much for title searches but I get feed deals and buyers from my title guys so I don't complain.
@Jose Duarte To clarify some of the prior posts, transfer taxes in PA are generally 2% of the cost of the property you are purchasing (1% Commonwealth of PA and 1% local jurisdiction). In certain jurisdictions, such as Philadelphia, however, the local transfer tax can be higher 3% for philly, plus 1% PA, for a total of 4% as noted above). The exact % will depend on the actual location of property, but that can be determined online fairly easily once you have a particular property in mind. You will then obviously have to add additional costs, such as title search fees, title premium (which will vary depending on the cost of the property), recording charges, plus any loan fees (and escrows) depending on whether you are financing the transaction or not. I know this answer is not precise, but hopefully it helps frame the issue.
@Account Closed I cannot verify its accuracy, but please see the link below that I just pulled up for transfer tax issues at least.
Thank You All. Great help!
Jose, when you put an offer in on a property your realtor will give you an estimate for closing cost. That will tell you the typical fees, taxes, transfer fees. It is an estimate but if the realtor is good it will be a little over of the actual cost.
Here are the fees charged by my Settlement company recently for a purchase price of $105,000 in York County, PA. Please let me know if they are reasonable.
Insured Closing Letter = $125
Tax Certification = $20
Electronic Retrieval Fee = $50
Notary Fee = $45
Overnight Delivery Fee = $12
Incoming Wire Fee = $22
Good Standing Cert for PA LLC = $40
Lender's Title insurance = $50
Total Settlement company fees = $364
Owner's title insurance = $1154 (Sale Rate - for purchase price of $105,000)
Please let me know if these charges are reasonable?
Update: It's now 2.5% tax rate
Updated about 1 year ago
@Donnell Evans in Philadelphia it is now 2.05% per side not 2.5%. PA is 1%. The City of Philadelphia just raised its share from 3% to 3.1%. So 4.1% in total, split equally between buyer & seller.
Yes thank you @Gregory Hiban 2.05%.
Good Morning @Jose Duarte
Welcome to BP!
Since there are varied regulated costs to Title and Closing Costs you need to be precise in your numbers and completely respect that. As a lending professional we depend strongly with good solid Title Calculators provided by our Title Reps. County costs change time to time and also transfer tax. The PA title companies are always aware of updates and changes where there online calculators picks those up and the sites are free to use. I would not suggest just using a random %.
Let me know if you have any questions.
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