Buyer And Seller Closing Costs In Delaware County

Wondering how much cash you will need to close on a home sale or purchase in Delaware County? You are not alone. Closing costs can surprise both buyers and sellers, especially with local taxes and title fees that vary by municipality. In this guide, you will learn who typically pays what in Pennsylvania, realistic cost ranges to budget, and simple steps to get accurate numbers for your situation. Let’s dive in.

Closing costs at a glance

Closing costs are the fees and taxes due when ownership changes hands. Buyers usually pay lender-related charges, inspections, and the lender’s title policy if financing. Sellers typically pay the real estate commission and often the owner’s title policy, plus transfer-related taxes and fees. Many items are negotiable and can be allocated differently in the contract.

In Delaware County, local customs and municipal rules influence the final tally. A practical planning range is 2-5% of the purchase price for buyers and 6-10% for sellers. Your final number will depend on loan terms, the agreed split of transfer tax, and property-specific items like HOA fees.

Who pays what in Delaware County

While your purchase agreement controls the final allocation, these are common Pennsylvania practices seen in Delaware County:

• Real estate commission: typically paid by the seller.
• Realty transfer tax: often split or allocated by local custom and contract.
• Title insurance: lender’s policy usually buyer; owner’s policy often seller, but negotiable.
• Settlement/closing fee: sometimes split or charged per side by the title company.
• Inspections and appraisal: buyer if financing.
• Recording fees: buyer often pays for mortgage recordings; deed recording can vary.

Always confirm your municipality’s norms and document everything in the agreement.

Typical buyer costs

Here are the common buyer-side items and realistic ranges:

• Lender and loan fees: 0.5-1.5% of the loan amount, plus any discount points if you choose a rate buydown.
• Appraisal: $400-800.
• Home inspection and specialty inspections: general inspection $300-600; pest, radon, or other specialists $100-500 each.
• Lender’s title insurance policy: buyer typically pays if there is a mortgage; the premium varies with price.
• Owner’s title insurance policy: sometimes the seller pays, but it can be buyer-paid if negotiated; roughly 0.3-0.8% of price when purchased.
• Settlement/closing fee: $300-1,200 per side depending on the provider.
• Recording fees: $50-300 per document; total depends on the number of recorded documents.
• Prepaids and escrows: property taxes and homeowners insurance deposits, often 2-3 months collected at closing.

A reasonable buyer budget is 2-5% of the purchase price, excluding your down payment.

Typical seller costs

Sellers usually see the largest single expense: the real estate commission. In many transactions, total commission runs 5-6% of the sale price. Other typical line items include:

• Owner’s title insurance policy: often paid by the seller locally, but negotiable; premium varies by price.
• Realty transfer tax: often shared or allocated by contract; combined state and local rates commonly total around 1% of the sale price, though exact municipal add-ons vary.
• Settlement or attorney fees: $300-1,200+ based on the provider and complexity.
• HOA/condo estoppel or transfer fees: $100-400 or more depending on the association.
• Mortgage payoff and any lien releases: amounts vary by your payoff and number of documents.
• Tax prorations: you may credit the buyer or receive a credit depending on what is already paid and the closing date.

A practical seller budget is often 6-10% of the sale price, with commission as the largest component.

Transfer tax and recording

Pennsylvania assesses a realty transfer tax, and some municipalities add their own amounts. In many Delaware County transactions, the combined rate is often around 1% of the sale price, but you must confirm the exact rate where the property is located. Who pays is negotiable and guided by local custom and your signed contract.

Recording fees are charged by the county to record the deed and, if applicable, the buyer’s mortgage. Expect $50-300 per recorded document, depending on what needs to be filed.

Title insurance and settlement fees

Title insurance protects against covered title defects. Most financed purchases require a lender’s title policy, which the buyer typically pays. An owner’s policy is optional but recommended. In many Pennsylvania counties, including areas of Delaware County, the seller often pays for the owner’s policy, though this is negotiable.

Title insurance rates in Pennsylvania follow filed schedules that scale with price. Combined title premiums for a typical home can range from several hundred to a few thousand dollars. Settlement or closing fees, which cover the work of coordinating and conducting the closing, often fall between $300 and $1,200 per side.

Prepaids, prorations, and escrows

Closing statements include prorations for property taxes, HOA dues, and occasionally utilities. Taxes are prorated based on the closing date and the local billing cycle. If the seller has already paid taxes for a period, they are usually credited for the unused portion.

Buyers with a mortgage typically fund an escrow account at closing. Expect 2-3 months of property taxes and homeowners insurance to be collected upfront. Delaware County tax rates vary by municipality and school district, so use the actual tax bill to estimate your prorations.

HOA and condo fees

If the property is part of an HOA or condo, there may be transfer or estoppel fees for documents and balances. These commonly run $100-400, though amounts vary. Who pays can be negotiated and is often guided by local custom.

Attorney and survey costs

Some buyers and sellers choose to hire an attorney for contract review or settlement. Fees often run $300-1,200+, depending on scope. A survey may be requested by the lender or title underwriter. Typical survey costs run $300-1,000+, depending on lot size and complexity, and the paying party varies by contract and requirement.

Example closing budgets

These illustrations show how the numbers can stack up. Your actual costs will reflect your loan, municipality, negotiated terms, and service providers.

Example: $350,000 purchase price

• Seller estimate: commission at 5.5% = $19,250; owner’s title policy $1,000-2,000; transfer tax about 1% of price = $3,500 (split varies); attorney/closing $300-900; tax prorations vary widely; HOA or payoff admin $100-500. Typical seller total: about 6-8% of price, or $21,000-28,000.
• Buyer estimate: lender fees 0.5-1.5% of loan amount ($1,750-5,250 for many loans); appraisal $450-700; inspections $400-900; lender title and recording $600-2,000; owner’s policy $1,000-2,000 if buyer pays by contract; escrow prepaids $1,000-4,000; other admin $100-500. Typical buyer total: about 2-5% of price, or $7,000-17,500.

Example: $500,000 purchase price

• Seller estimate: commission at 5.5% = $27,500; transfer tax about $5,000 (allocation varies); title about $1,500; attorney around $500. Typical seller total: about $36,000-45,000, or 7-9%.
• Buyer estimate: lender, appraisal, inspections, title, recording, and escrow deposits usually total $10,000-25,000, or about 2-5%.

How to estimate your numbers

Use this quick checklist to get precise figures before you make an offer or list your home:

1. Request a Loan Estimate from your lender as soon as you have a contract. It will outline lender fees and required escrow deposits.
2. Ask a local title company for a sample Closing Disclosure and a title insurance premium quote for your specific municipality.
3. Get the most recent property tax bill to calculate prorations accurately.
4. Check the local custom for splitting transfer tax in the municipality where the home is located.
5. If the home is in an HOA or condo, request estoppel and transfer fee amounts early.
6. Decide whether you will hire an attorney and add that fee to your budget.
7. Build a 1% buffer for unexpected items, rounding, or timing differences.

Smart ways to save or negotiate

• Compare lenders. Rates and fees vary, and points are optional.
• Ask about local custom on owner’s title policy and transfer tax. Many items are negotiable and can be addressed in your contract.
• Time your closing date thoughtfully. Moves near tax billing periods can change prorations and escrow deposits.
• Request updated quotes. Title, HOA, and recording fees can change based on document count and property details.

The bottom line

Closing costs in Delaware County are manageable when you know what to expect and how the local customs work. Buyers usually plan for 2-5% of the purchase price, and sellers often plan for 6-10%, with commission as the largest seller expense. Confirm your municipality’s transfer tax, get firm quotes from a lender and title company, and use the checklist above to dial in your budget.

Ready to plan your next move with a clear closing-cost strategy and a calm, step-by-step process? Connect with Cathy McClatchy for local guidance, detailed checklists, and a plan that fits your goals.

FAQs

Who pays the realty transfer tax in Delaware County?

• It is negotiable and guided by local custom and your contract; many deals split it, and exact amounts depend on the municipality’s combined rate.

How much should a Delaware County buyer budget for closing?

• A practical planning range is 2-5% of the purchase price, excluding the down payment; your lender’s Loan Estimate will provide a personalized figure.

How much should a Delaware County seller expect to pay at closing?

• Many sellers see 6-10% of the sale price, with commission at 5-6% as the largest line item, plus transfer taxes, title, and settlement fees.

Are title insurance rates negotiable in Pennsylvania?

• Premiums follow filed state rate schedules; who pays for the owner’s policy is negotiable, so confirm the allocation with your title company and contract.

Can buyers and sellers negotiate who pays which closing costs?

• Yes, many items are negotiable and allocated by contract; in some markets sellers may agree to cover more costs, while in others buyers absorb more.

What recording fees should I expect in Delaware County?

• Recording fees typically run $50-300 per document for deeds, mortgages, or satisfactions; totals depend on how many documents are recorded at closing.