Read This Before Selling A House In Pennsylvania


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Your home is your castle. A place of refuge after a long day’s work and where you’ve no doubt made countless memories with friends and family. But there comes a time in many of our lives when selling our Pennsylvania home is necessary.

Perhaps the kids have moved out and it’s time to downsize, or you’ve outgrown your first starter home and are looking to expand your family. No matter the reason, selling a house in Pennsylvania can be a complicated process with numerous legal and other considerations to contend with.

For most Pennsylvania residents, their home is the largest financial asset they have. Not to mention, it often holds a certain amount of sentimentality, from pleasant memories to the hard work you put into remodeling the kitchen.

Because of this, selling a house in Pennsylvania isn’t a simple real estate transaction. It’s ok to be hyper-cautious about making sure it’s done right, and in a way that benefits you and your family to the greatest extent possible.

Although the process of selling a house in Pennsylvania is similar to that in other states, Pennsylvania does have its own unique local practices and real estate laws to contend with. Making yourself familiar with this process early on in the stages of selling your home can help you avoid major headaches and problems down the line.

This guide will walk you through the ins and outs of selling a house in Pennsylvania, making sure you don’t get hit with any major surprises along the way. From working with a listing agent to legally required disclosures, we’ve got you covered.

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Best Time of Year to Sell a Home in Pennsylvania

 

When it comes to selling a house in Pennsylvania, timing matters. But it’s not just the month or season you need to take into consideration. Certain property types sell better at differing times of the year, and homes (on average) may sell faster or slower, or even at a higher closing price during particular months.

Best Time of the Year to Sell in PA

They say location is everything in real estate, but when it comes to selling a home, so is timing. For example, listing a home in mid-winter when movers and buyers have to deal with difficult road conditions and sub-zero temperatures isn’t exactly optimal.

Average Time to Sell a Home in Pennsylvania

According to compiled real estate data, it can take an average of 45 days to get a serious purchase offer, and an additional 35 days on average to close on the deal. This brings the overall average amount of time to sell a home in PA to 80 days.

The Real Estate Market Outlook

The good news for home sellers is that the Pennsylvania real estate market has seen regular appreciation in recent years. In the last 12-months PA real estate has seen a 4% increase in appreciation. However, current forecasts for 2020 put the market at a -1.7% potential decline.

Timing for Sale for Pennsylvania’s Real Estate Cycle

The good news is that Pennsylvania has a very clearly defined real estate cycle, with property prices both rising and falling like clockwork. Using actual real estate transaction data we can easily chart the best time to sell your property in Pennsylvania based on your goals. This makes planning to sell a home in Pennsylvania an easier and more fruitful endeavor.

Seasonal Considerations

  • Summer – temperature AND competition heat up causes bidding wars and decreasing inventory as families try to move before the school year starts
  • Fall – market begins to cool down with lower competition (prices still remain marginally high, but deals begin to appear)
  • Winter – the slowest period for most markets with less inventory but great deals to be had and low competition
  • Spring – buyer demand picks up and the market is full of inventory for sale.

Best Time of the Year to Sell your House Fast in PA

Money isn’t always the primary motivator for selling a home. Life circumstances often dictate that you need to sell your home in Pennsylvania fast. Looking at actual data we can uncover which months are the best months to sell your home quickly in PA.

Selling a home fast is especially important for many Pennsylvania home sellers. Job transfers, a death in the family, changing needs and other major life events may require you to move quickly. But oftentimes the one thing holding you back is the sale of your existing home (likely so you can purchase another).

According to public data, the month you are likely to sell a home the fastest in Pennsylvania is May, with the average time on market a mere 32 days (plus closing times).

Months Homes Closed Faster Than Average (in order of fastest to slowest):

  • June  (fastest month to sell your home)
  • May
  • July
  • August
  • September
  • October
  • November

January and February are the worst months to sell a home if you’re trying to sell fast, followed by December and then November.

Months Homes Sold Slower Than Average (in order of most slow):

  • February
  • March
  • January
  • April
  • December 

PRO TIP: Remember, these figures are based on the moth the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across PA on average sit on the market for around 80 days.

Best Time of the Year to Sell for a Profit

If money is your primary motivating factor for when to sell your house, you’ll want to make sure you plan to unload it during the months most likely to net you the highest sales price and profit.

Although the exact timeframe can vary throughout the state sales data tells us that those homes sold between May – July netted home sellers in PA the most money, with June being the best month overall.

Months Homes Sold at Above Average Prices (In order of highest price to lowest):

*Keep in mind there are local variances. For example, in some areas of the state October and November brought in marginally above average sale prices. In others they resulted in lower than average closing prices.

  • June
  • July
  • August
  • May

Months Homes Sold at Below Average Prices (in order of lowest to highest):

  • February
  • January
  • March
  • October
  • September
  • November
  • December

PRO TIP: Remember, these figures are based on the month the homes closed/sold in, NOT when they were listed. Depending on your local market, homes across PA on average sit on the market for around 80 days from listing to closing. So plan accordingly and always compare LOCAL data for your county/neighborhood as location can greatly impact these figures.

Buyer / Property Type Matters

Single-family homes are an ideal candidate for those with children. Buyers for these homes generally start looking in the spring, with an ideal “move in” date early June when the school year ends. Those with properties in the Lake Region often see more interest and action in the market between Memorial Day and Labor Day when interested tourists seek out the purchase of summer homes.

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Cost of Selling Your Home in Pennsylvania

 
 

Selling a home comes with costs, and although the buyer typically pays for most of the costs associated with closing, this is negotiable. Let’s take a look at what you can expect when selling your Pennsylvania property.

When selling a home in Pennsylvania you have to contend with four core categories of expenses including:

  • Associated title/deed transfer and settlement costs
  • Closing cost (if negotiated by buyer)
  • Home Warranty (if negotiated by buyer)
  • Local recording fees
  • Mortgage payoff (if applicable)
  • Real estate agent commission

Detailed Breakdown Of Fees/Costs

Seller’s Closing Costs

  • Broker fees: Generally amounting to around 4-6% of the sales price
  • Attorney (if hired, cost varies)
  • State and City Transfer Tax
  • Document preparation fees
  • Occupancy permit (in some municipalities)
  • Deed transfer tax
  • Municipal dye test (required in some urban areas)
  • Property taxes: Prorated at closing
  • Recording fee
  • Courier and wire transfer fee
  • Home warranty fee: Varies, if applicable
  • Mortgage payoff: Subject to the loan balance
  • Miscellaneous condo fees
  • Condo or HOA fees: Prorated at closing, if applicable
  • Proof of removal of old heating tanks: Varies, if applicable

Buyer’s Closing Costs

  • Legal fees at closing
  • Title Insurance (unless negotiated for seller to pay)
  • Title Search
  • Property Inspection
  • Appraisal cost
  • Origination fee
  • Recording fee
  • Transfer taxes (split with the seller)
  • Settlement fee
  • Processing fee
  • Property tax: Prorated at closing
  • Surveying fee
  • Flood certification fee
  • Credit report
  • Mortgage recording or deed of trust fee
  • Mortgage insurance: Up to 1% of the mortgage amount, if applicable
  • Condo or HOA fees: Prorated at closing, if applicable
  • Homeowners insurance: Varies
  • Archive and courier fee

Major Seller Fees Breakdown

1. Title Insurance

By custom, in Pennsylvania, the home buyer generally pays for the owner’s and lender’s policy, however, this may be an item up for negotiation.

There two types of title insurance policies in Pennsylvania, each of which are paid at the time of closing, usually by the buyer of the home include:

  • Lenders Title Insurance – ensures the lender has a 1st line position on the property
  • Owners Title Insurance – protects the buyer by ensuring the buyer has a marketable title.

Prior to the transfer of any property, a title agent (or attorney) will have a title search conducted to ensure no outstanding encumbrances or liens exist.

Title Insurance Policies can Protect Buyers From Things Such as:

  • Liens
  • Unpaid mortgages
  • Missing heirs who may lay claim
  • Unpaid property taxes
  • And more… 

2. Transfer Tax and Grantor’s Taxes

The Pennsylvania Transfer tax is a tax that is levied against any transfer of real estate property. The state charges a number of transfer taxes associated with the sale and transfer of real estate between parties. By custom in PA, this tax is split evenly between the seller and buyer, however, ultimately the terms of your sales contract will dictate who pays what.

The current rate of transfer tax in PA is set at 1% of the sales price. In addition to this, the local school district and municipality often charge a an additional 1% combined, coming out to a total transfer tax cost of 2%.

3. Costs Associated with Remedying Title or Survey Issues

In the event that issues surrounding the title or survey emerge, contacting a local real estate attorney is the advised route to obtain counsel on your options and cost of resolution.

4. Local Government / Municipal Costs

Generally, there are localized costs associated with the sale of a Pennsylvania house. These may include local stamp taxes, recording fees, community association estoppel fees, or other fees imposed by the county, city or town such as those for utilities or local taxes.

5. Deed Preparation by Attorney or Title Company

The cost deed preparation is paid for by the buyer and generally ranges between $100-$150.

6. Seller Attorney Fees

It is important to note that in the state of Pennsylvania, a licensed attorney is not required for real estate transactions. This is contrary to several other states in the US in which a real estate attorney is required by law to be part of the closing process. Most attorneys charge by the hour, however, you may be able to find Pennsylvania attorneys offering “flat fee” real estate closing services.

7. Real Estate Agent Commission

While there are other ways to sell your home than going with the traditional real estate agent listing, if you do hire an agent they are paid based on a commission rate calculated against the sale price of your home. We’ll cover the costs associated with hiring a real estate agent later in this guide.

For now, understand that real estate commissions in Pennsylvania are defined as a percentage of the sale price of a home and that while standard rates do exist, they are negotiable.

8. Home Warranty Fees

Some Pennsylvania home sellers opt to offer a home warranty to cover components or systems of a house that may pose a risk of failure for the buyer. Although optional, offering a home warranty is a way to sweeten the deal, attract more buyers and remain competitive during months when the real estate market heats up.

Want to sell your Pennsylvania home and save thousands? Find out how

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Legal Requirements and Considerations

 

Do You Need a Lawyer?

There are a number of states across the US that require a real estate attorney to be involved in the sale of real estate. Pennsylvania does NOT rank among those 21 states where hiring an attorney is required.

Although hiring an attorney represents an additional cost, having a lawyer in your corner is never a bad idea for contract review, drafting, or to assist in negotiations. Real estate attorneys may also be useful for assisting with unconventional circumstances such as with a lease-to-own or owner-financed deal, and with any issues that might arise with contract disputes or title issues.

Pennsylvania Real Estate Disclosure Requirements

Sellers in the state are required by law to provide interested buyers with a Seller’s Property Disclosure Statement. This “statement” includes disclosure of legally mandated items such as the condition of the property and any “material defects” known to the seller.

Material defects include those issues with the property that could have a significant negative impact on eh value of the property or those that pose an unreasonable risk to the new home/property owners.

Required Disclosures Include Those Pertaining To:

  • Property Condition: including but not limited to any material defects or dangers
  • System Condition: foundation, walls, basement, roof, plumbing, electrical, heating and cooling and more.
  • Termites: disclosure of any termite treatments
  • Water and Sewage: disclosure of any water or sewage problems
  • Repairs / Remodeling
  • What is Included: Appliances, equipment, etc.
  • Environmental Hazards and Contaminants
  • Issues with Title, Insurance, Liens, etc.
  • Additional known material defects

Radon Gas, Lead Paint, and Arsenic

Any seller of real estate must inform prospective buyers about lead, radon or arsenic hazards.

Seller’s Federal Disclosure Requirements

In addition to the aforementioned disclosure requirements set forth by the Pennsylvania statute, sellers must also abide by federal disclosure requirements.

  1. If the home you are selling was built prior to 1978 you must disclose any lead-based paint hazards in the property
  2. You must provide any inspection reports relating to lead-based hazards in the home
  3. Provide an EPA-approved informational pamphlet to buyers
  4. Allow buyers to conduct their own lead-based assessment
  5. Include specific warning language relating to lead-based hazards in the sale agreement

Purpose/Benefits of Disclosure

Although the state’s mandates regarding disclosure are pretty standard, there are a number of long-term benefits that can be had from or by making such disclosures for sellers.

Benefits of Disclosure Include:
  • Improved negotiations at the deal table
  • Early discover of issues leads to better valuation
  • Opportunity to make improvements on the home
  • Ensures a fair deal from both sides of the table
  • Legal compliance
  • Reduced liability
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Options for Selling a House in Pennsylvania

 
 

Selling with a Real Estate Agent

When most Pennsylvania residents think about selling their home, they think of listing with a real estate agent. In the state of Pennsylvania, you may also see seller real estate agents being referred to as listing agents.

Not only does a real estate agent handle the listing and marketing of your property, but they also aid in helping you through every step of the process from showings and staging to contract negotiation and closing.

Listing agents will provide you with a comparative market analysis (referred to as comps), and provide pricing recommendations and strategies tailored towards your specific goals.

Real Estate Commissions in Pennsylvania

Commission paid out to a seller’s agent is generally calculated as a percentage of the final sale price of the home. The percentage of commission can vary, with lower levels of service usually corresponding to less robust services.

Full-service agents handle the listing, marketing, showing, staging, negotiation, and closing of your home. Marketing expenses are handled by the agent out of their own pockets. These agents on average charge between 5-8% in Pennsylvania. This commission rate is split with any agent that may be representing the buyer’s agent. Commission rates with your seller agent may be negotiable.

The commission is paid out as part of the sale price upon closing and is not required upfront.

Pennsylvania’s Multiple Listing Service

Developed by REALTORS®, the multiple listing service, also known as MLS, is a multimillion-dollar real estate technology. The fundamental principle behind the MLS is that it helps brokers and real estate agents share information on the properties they represent for sale through a singular network.

Sellers benefit by exponentially increased exposure for listed properties, while buyers benefit do to the ability to quickly identify ideal properties on the market for their clients to purchase.

This system facilitates cooperation between competing agencies, brokers and agents, leveling the playing field and providing value for every party involved.

As a consumer, you can access MLS listings published on brokers’ and agents’ websites, but the MLS itself is a private database created and maintained by licensed real estate professionals.

Listing Agreement

After interviewing and selecting a real estate or listing agent of your choosing, you will sign what is known as a “listing agreement”. This agreement grants the agent the legal right to market and coordinate the sale of your home on your behalf.

Listing Agreements Generally Cover the Following Terms:
1. Commission Rate

The rate of commission you agree to pay as a seller (usually ranges from 5-8% in PA). This fee, as mentioned earlier, gets split between the buyer’s agent and your agent at closing.

2. The Type of Listing

Listings can either be “exclusive” or “non-exclusive”. Exclusive listings are the most common type and require you to pay a commission to the selling agent no matter who or where the buyer comes from. With open or “non-exclusive” listings, on the other hand, you pay whichever agent brings the seller the commission.

3. Listing Duration

Each listing agreement will cover a specific time-frame, after which the contract expires and you are free to hire another agent to do the job, handle the sale yourself, or extend the existing contract.

4. Listing Price

Your agent should provide you with an in-depth market analysis and a detailed breakdown of comparable sales in your locale. Based on the data, their experience as an agent and your goals, the listing agent will provide you with advice on pricing strategy. The agreed-upon price will be included as part of the listing agreement.

5. Any Items NOT Included as Part of the Sale

In some cases, there may be instances where certain items are not part of the home’s sale. For example, perhaps you plan to take the refrigerator with you when you leave, or an heirloom chandelier. Any such items you wish to take with you must be included in the listing agreement.

6. Detailing of the Obligations and Duties of Both the Seller and Listing Agent

Each listing agreement should (in detail) spell out the obligations you have as a seller to the agent and the obligations the agent has to you as the real estate agent representing your property. For example, the listing agreement will specify the ways in which your agent will market your property, the type of insurance that must be maintained on the home, and the disclosures you are required to make.

Selling Without a Real Estate Agent or By Owner

Although most Pennsylvania residents opt to sell with the help of an agent, non-traditional options offer a range of benefits of their own, with a growing number of sellers flocking to these opportunities in lieu of paying out high commission rates to an agent.

DIY or For Sale By Owner

Selling your home going the DIY or For Sale By Owner in Pennsylvania route has its challenges, and is certainly more work, but the payoff can make it more than worthwhile if you do your homework and put in the effort.

In fact, on a $250,000 home with a 6% commission fee, you can save $15,000. Further, according to the National Association of Realtors’ Profile of Home Buyers and Sellers, homes sold by their owners also often sell more quickly, sometimes in as little as two weeks.

But before you decide to dive off the deep end and handle your home’s sale on your own, bear in mind that the process isn’t exactly a cakewalk. Apart from marketing, staging and negotiating the sale, you’ll also be responsible for both the financial and legal paperwork associated with the transaction, something you’ll no doubt want to hire an attorney to help with.

Tips for Selling the DIY Way:
  1. Prep your home for the market. This means professional cleaning, removing any clutter, and staging the property both inside and out for viewing.
  2. Competitively price your property. With real estate platforms and data readily available online from sites such as Zillow and Redfin, you can do your own market research to find comparable properties and price your home similarly to those that best represent your home and sold within a timeframe that you are comfortable with.
  3. Invest in a flat fee MLS listing service in Pennsylvania in order to exponentially expand your reach to prospective buyers both in the area and nationwide (more on this below).
  4. Get a marketing plan together. Consider listing your site online, in classified ads and platforms, your local newspapers, social media, and even starting a website where you can digitally showcase pictures, videos of the property and more.
  5. Know your home’s best-selling points and put a “pitch” together to “sell” them both in person and in print or online.

Flat Fee MLS Listings

As previously mentioned, MLS is short for “Multiple Listing Service”. The MLS consists of a network of over 900 individual MLSs nationwide in the USA. Each MLS is separate from each other, meaning that a real estate agent in Lancaster, PA cannot view listings in San Diego, CA. This makes it critical to ensure you are listed in the proper MLS.

Why is Paying for a Flat Fee MLS Listing Worthwhile?
  • The MLS essentially represents the entire “real estate market”
  • In the US, over 90% of all sold properties are the result (at least in part) of MLS listing exposure
  • Listing in the MLS means that all local Realtors®, agents and brokers will be able to find and promote your listing to their clients
  • Potential buyers can find your home listed on hundreds to thousands of public MLS websites
  • Those properties listed on MLS tend to sell faster and at a higher price
  • You can avoid Pennsylvania’s high real estate agent commission rage (on average 6%)
  • You retain the right to sell your house yourself
  • You have full control over your listing
  • Qualified buyers will call you direct
  • You set the terms of the contract offer and negotiate conditions directly
  • Your MLS listing can be canceled at any time if your situation changes

Want To Learn More About Flat Fee MLS Listings?

If you want to save at least 50% of the Realtor commissions, check out our article about 9 Things FSBO’s Need To Know About Flat Fee MLS Listings

 

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Pennsylvania Residential Purchase and Sale Agreements

 

In simple terms, this Standard Form of Real Estate Contract, also called a sale agreement or purchase contract, is a contract that details the conditions of the sale to which both the buyer and seller agree to. This agreement is legally binding, and it is advised that the agreement be both drafted and reviewed by an attorney you trust.

NOTE: The majority of clauses within the purchase agreement are designed to protect the buyer.

The agreement will cover such aspects of the sale such as

1. Sale Price

This will include both the actual sale price of the home as well as how much the buyer agrees to put down at the contract signing date, what amount will be financed and any balances due at closing.

2. Financing Contingency

Financing contingencies are a common rider included in many purchase agreements. Generally, they define a timeline during which the buyer must qualify for adequate financing in order to purchase the home.

Similarly, a rider may be included to protect the buyer, stating that the purchase is contingent upon them obtaining financing at favorable terms (such as within a specified interest rate rage).

Other Financing Clauses may Include:

  • Dates by which the buyer must have applied for a mortgage
  • Dates by which the buyer must have obtained pre-qualification, pre-approval and/or final approval by the lender

3. Property Description

The property description should accurately describe the property including:

  • Size of the home’s square footage and any additional structures such as a detached garage
  • Lot size
  • Number of lots included
  • Frontage on a road or body of water
  • Number of living units
  • Finished basement
  • Rights of way, easements or appurtenant rights
  • Etc…

4. Inspection & Repairs

Under the agreement, an inspection clause may dictate that the buyer has the right under the terms of the contract to inspect the property by hiring one or more contractors or licensed inspectors to look at the property.

The contract will need to specify which, if any, repairs the seller agrees to make as a result of the inspection prior to closing.

5. Title and Survey

The agreement will outline which party is responsible for title insurance and the duration of time the buyer has to review and/or object to the results. In the event that you, as a seller, provided a survey or the buyer ordered one themselves, the agreement will specify how long the buyer has to identify any issues. In the event that a resolution to a problem is required, a timeline for this solution will need to be established and incorporated into the contract. IN the event that you cannot or do not want to resolve the problem (due to finances or other considerations), incorporating a clause that states you have the right to cancel the agreement and return the deposit should be included.

6. Personal Property / Excluded or Included Items

Just because you are selling your home does not mean you have to sell everything in it. From furniture, to appliances, and even light fixtures, you get to decide. But, you must specify in the agreement which items are staying behind and which are not part of the deal. Both you and the buyer should make a list of the property they expect to sell/purchase. From there you can both negotiate a deal.

7. Closing and Move in/out Dates

Dates are very important with regard to the process of selling a home. Generally, the closing date for Pennsylvania properties lands around 30 days. However, this date is largely dependent upon the lender and may require an extension.

8. Other Riders

Standard Realtor forms also have a range of optional riders that cover such circumstances as those that involve:

  • Owner financing
  • Homeowners’ associations
  • Condominiums
  • And more…
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Negotiation Process – Offers, Counteroffers & Acceptance

 

Real estate deals are an evolving process with lots of moving parts, contingencies and more. All of which means that a lot can change between the point at which an initial offer is made and closing day.

Rarely is selling a home as simple as getting paid your list price without some form of concession and negotiation. These negotiations can go on for weeks until both parties reach (or don’t reach) an amicable deal.

Counteroffer

A counteroffer is the medium in which this negotiation is dealt with. Counteroffers are generally handled by either your real estate agent or attorney (unless you are selling DIY). Think of selling as a process vs a transaction.

Counteroffers arise when the terms of the initial offer are not agreeable. The counter-offer provides you with the opportunity to take a hard look at what items you are willing to compromise on and which are potential “deal breakers”.

Want to sell your Pennsylvania home and save thousands? Find out how

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Escrow Process in Pennsylvania

 
 

When a buyer decides on a property they are interested in buying, they first make a purchase offer. As part of this purchase offer they most often provide “earnest money”. This earnest money is a deposit made as a consideration to be held in escrow by an escrow agent.

The role of an escrow agent is to ensure the transaction closes on time and without a hitch. It is the duty of the escrow holder to validate that all conditions and terms of the buyer’s and seller’s agreement are met prior to the finalization of the deal.

This process ensures that all funds, required forms, documents are accounted for and that any loans or liens have been paid off as part of the transaction, and that the new buyer will have a clean title prior to the purchase of the property.

Money is held in what is known as an “escrow account”. Think of this account as a type of “holding tank” for the money a buyer will use to pay for your home.

Escrow Agents May Collect the Following:

  • Tax statements
  • Insurance and fire policies
  • Loan documentation
  • Title insurance policies
  • Terms and conditions of the sale
  • Any requests for payment of services to be covered by the escrow funds

Common Elements of the Escrow Process

Title Vesting: Refers to the way in which the buyer takes ownership of your property. The “vesting term” defines that the seller has the absolute right of ownership and title until such time as the transaction comes to a close.

Earnest Money Deposit: The buyer generally makes two separate deposits throughout the escrow process. The first is the “earnest money” deposit. Earnest money represents the buyer’s commitment to the purchase.

Title Report: The title report includes the results and findings of a title search (generally conducted by a title company). The search is designed to uncover any issues related to liens against the property.

Facts About the Escrow Process in Pennsylvania:

  • The seller (you), buyer, and your respective attorney’s or real estate agents all work together to draft terms amenable to all parties
  • Escrow amounts generally range from 3-5% at a minimum in Pennsylvania
  • The “escrow officer” holds the paperwork and is in charge of depositing the funds
  • Once an offer has been accepted the buyer will make a first installment deposit of earnest money (generally between 1-2% of the purchase price)
  • After a due diligence period, a second “earnest” deposit is made by the buyer. This deposit typically ranges between 3-20%
  • In the event that a buyer backs out of the deal without legitimate cause as defined in your contracts, they forfeit the earnest money which goes to the seller.
  • In the event that you, the seller, backs out of the sale, the earnest money is returned to the buyer.
  • The process of escrow does not complete until all terms have been settled and all the necessary signatures have been executed.
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Closing Process in Pennsylvania

 
 

The closing is the time at which you formally transfer ownership of your home to the buyer. This process can take place anywhere both parties agree to. In Pennsylvania, when the lender notifies that everything is ready, the closing attorney will coordinate with all involved parties and their respective agents to schedule the “closing ceremony”.

Generally, within three business days of closing the lender will provide the buyer with what is known as a “closing disclosure” that outlines and details the terms of the loan, and subsequently provides the funds the buyer needs at closing in order to make the purchase.

The closing ceremony itself takes around an hour or less. During the ceremony, the closing attorney will explain to each party what the closing documents mean and answer any questions either party may have. Presuming everything is agreeable, the attorney will collect and distribute funds from their trust account.

Once closing has come to an end, the attorney will record the deeds. One deed covers conveying the property and the other the lender’s security deed. In Pennsylvania it takes approximately one month for the original deed to be returned to the buyer.

The Closing Process in Detail:

  1. Title Search: ran just prior to the closing ceremony in order to uncover any assessments or liens on the title. If the title comes back as “clean” the closing can proceed unhindered.
  2. Attorney prepares paperwork for the transfer of the title/deed and will file the application for title insurance presuming the lender requires such.
  3. A final closing date will be scheduled that is amenable by both parties.
  4. Calculation of the total amount (in the form of a cashier’s check) that the buyer needs to bring to the closing.
  5. Final walkthrough, usually performed the day of or the day before the closing ceremony
  6. Buyer and seller, at closing (settlement table) sign all requisite closing documents and any final loan documents.
  7. Buyer remits remaining funds in their down payment to the attorney via cashier’s check
  8. Attorney or title company records the transaction and deed with the local municipality
  9. Buyer receives keys and legally takes possession of the property
Want to sell your Pennsylvania home and save thousands? Find out how

 

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Final Thoughts

 
 
 
We hope that you have found this guide informational and beneficial. Selling a home can be an emotional and exciting time in one’s life. But it can also be a stressful one as well. Knowing what to expect and how to best prepare for the process can help you remain calm and in control throughout.
 

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