Pennsylvania Closing Costs: Buyer And Seller Guide

Buying or selling in Murrysville and wondering what closing will really cost? You are not alone. Closing costs in Pennsylvania include several moving parts, and they can surprise you if you are not prepared. In this guide, you will learn what buyers and sellers usually pay, how transfer tax works, and how to estimate your cash to close with confidence. Let’s dive in.

Closing costs in Pennsylvania: the basics

Closing costs are the fees and prepaid items needed to transfer the property and fund the loan. You will see lender charges, title and recording fees, insurance, taxes, and prorations on your final settlement statement.

• Buyers in Pennsylvania often plan for about 2% to 5% of the purchase price in closing costs, not including the down payment. Your actual number depends on the loan, property, and what you negotiate.
• Sellers usually see the largest expense in the broker commission, commonly around 5% to 6% of the sale price, plus transfer tax, prorations, and any agreed credits or repairs.

Every deal is unique. Exact amounts depend on your lender’s fees, the title company’s charges, Westmoreland County recording fees, and local transfer tax.

Who pays what in Murrysville

Pennsylvania does not set a single rule for who pays each item. Many costs are negotiable and shaped by local custom.

• Realty transfer tax: The allocation between buyer and seller is negotiable and varies by jurisdiction. In many Pennsylvania transactions, parties split it or assign it in the contract. Confirm the current rate and allocation for Westmoreland County and Murrysville before you sign.
• Title and closing services: Closings in Western Pennsylvania are often handled by a title company or an attorney. Fees and who pays for the owner’s title policy can vary by local practice. Ask your title provider how charges are typically allocated in Murrysville.
• Recording fees: Westmoreland County charges modest fixed fees to record deeds and mortgages. The buyer usually pays to record the mortgage. The deed-recording allocation is negotiable.

Clear agreement in the contract prevents last-minute surprises.

Buyer costs to expect

Plan for lender fees, third-party charges, and prepaids. While your numbers will vary, these are common items:

• Loan origination and lender fees: Often 0.5% to 1.5% of the loan amount. Some lenders offer credits that reduce upfront cost.
• Appraisal: Typically 400 to 800 dollars, depending on property type and scope.
• Credit report and underwriting: Small flat fees collected by the lender.
• Title search and title insurance: Includes the lender’s policy and, if purchased, an owner’s policy. Premiums scale with price and can range from several hundred to a few thousand dollars. Ask for an itemized quote.
• Escrow deposits for taxes and insurance: Many lenders collect 2 to 6 months of property taxes and homeowners insurance at closing.
• Prepaid interest: Covers interest from closing day until your first payment date.
• Recording fees: To record the mortgage and deed. Amounts are set by Westmoreland County.
• First year of homeowners insurance: Often paid in full at closing.
• HOA fees, if applicable: Transfer fees and prorated dues depend on the association’s rules.

As a planning rule, set aside 2% to 5% of the purchase price for closing costs. Then add your down payment to estimate total cash needed.

Seller costs to expect

Sellers in Murrysville typically cover marketing and transfer expenses, plus prorations through the closing date.

• Real estate commission: Commonly around 5% to 6% of the sale price, split between listing and buyer brokers. Confirm your rate and services with your listing agreement.
• Realty transfer tax: Allocation is negotiable in Pennsylvania. Many deals split it, but your contract controls.
• Mortgage payoff and liens: Your settlement agent will pay off any loans and satisfy recorded liens from sale proceeds.
• Prorated property taxes and HOA dues: You reimburse the buyer for your share through the day of closing, based on local billing cycles.
• Settlement or attorney fees: Some sellers hire an attorney or pay a settlement fee depending on the closing provider.
• Repairs or credits: Items negotiated after inspections reduce your net proceeds.

Your largest predictable cost is the commission. Transfer tax, payoffs, and repairs can materially affect your net, so request a net sheet early.

Transfer tax in Pennsylvania

Pennsylvania charges a state realty transfer tax. Counties and municipalities may add their own local transfer tax. The total rate and how it is split between buyer and seller depend on local rules and your contract.

Since rates and customs vary, confirm the current total transfer-tax rate for Westmoreland County and Murrysville and document the allocation in your agreement. Your title company will calculate the exact amount on the settlement statement.

How taxes and prorations work in Murrysville

Real estate taxes in Murrysville are billed by the municipality and Westmoreland County. At closing, taxes are usually prorated based on the closing date and the local billing cycle.

• If the seller has paid ahead, the buyer reimburses the seller for the remaining period.
• If taxes are due soon after closing, the buyer’s lender may collect reserves to fund the first payment through escrow.

Ask the Murrysville tax office about billing cycles and how tax bills are handled at settlement so you know what to expect.

Cash-to-close examples

These examples are for planning only. Replace them with quotes from your lender and title company.

Example A: $300,000 purchase

• Buyer planning: 2% to 4% in closing costs equals about 6,000 to 12,000 dollars. With escrow deposits, insurance, appraisal, and title, total cash to close excluding down payment might land near 8,000 to 16,000 dollars.
• Seller planning: At a 5% commission, that is 15,000 dollars. Transfer tax depends on the total rate and your contract. Add any payoff, prorations, and agreed credits.

Example B: $500,000 purchase

• Buyer planning: 2% to 4% in closing costs equals about 10,000 to 20,000 dollars, plus down payment.
• Seller planning: At a 5% commission, that is 25,000 dollars. Add transfer tax, prorations, and any repairs or credits.

Your largest buyer cash item is usually the down payment and required escrow deposits. Your largest seller item is the commission. Transfer tax can also be significant, so confirm the exact rate early.

Steps to avoid surprises

• Request a Loan Estimate from your lender within three business days of application. Compare fees across lenders if you are shopping.
• Ask your title company or attorney for an itemized quote for title insurance, settlement, transfer tax, and recording fees.
• Verify Westmoreland County recording fees and Murrysville’s current transfer-tax practices before you sign a contract.
• Confirm who pays for the owner’s title policy and whether an attorney will be involved in your closing.
• Review your Closing Disclosure at least three days before settlement. Compare it line by line to your Loan Estimate.
• Keep a 10% to 20% cushion on top of your estimated closing costs to cover prorations or last-minute adjustments.

Local verification checklist

• Lender: Ask for a Loan Estimate, prepaid interest, and required escrow deposits.
• Title company or attorney: Request a preliminary title report, title premium quote for both policies, settlement fee, and local transfer requirements.
• Westmoreland County Recorder of Deeds: Confirm deed and mortgage recording fees and any document rules.
• Pennsylvania Department of Revenue: Confirm realty transfer tax rules and any applicable exemptions.
• Murrysville tax office: Verify local tax rates, billing cycle, and any municipal or utility transfers that show up at closing.
• Your agent: Ask for a buyer closing-cost estimate or a seller net sheet that reflects local customs and current market norms.

Work with a local guide

You do not have to guess at closing costs. With the right plan, you can set a clear budget, negotiate smartly, and reach the table with confidence. If you want a personalized buyer estimate or a seller net sheet tailored to your Murrysville property, reach out to a local expert who lives this process every day.

Have questions or want numbers for your exact address? Schedule a Free Consultation with Michele Trabbold for clear, local guidance from contract to close.

FAQs

Who typically pays the realty transfer tax in Murrysville?

• Allocation is negotiable and varies locally. Check your contract and confirm current rates with Westmoreland County and the Pennsylvania Department of Revenue.

How much should a buyer save for closing on a $350,000 home?

• As a planning figure, budget 2% to 5% of the purchase price for closing costs, not including the down payment. Ask your lender for a Loan Estimate to confirm.

Will the seller cover my loan costs in Pennsylvania?

• Sellers can agree to concessions or credits during negotiation, but lender limits apply and terms must be written into the contract and disclosed on the settlement statement.

Who usually pays for the owner’s title insurance policy?

• Local custom varies across Pennsylvania. In some markets buyers pay, in others sellers do. Ask your title company or attorney what is customary in Westmoreland County.

How are property taxes handled at closing in Murrysville?

• Taxes are typically prorated to the closing date. The seller or buyer is credited so each pays their share based on the local billing cycle.

Do I need an attorney to close in Western Pennsylvania?

• Many closings are handled by title companies, though some parties hire attorneys. Fees and roles vary, so confirm the approach and costs early with your provider.