Trying to budget for closing day in Peters Township or the Allegheny County suburbs? You are not alone. Local taxes, fees, and customs can shift your total by thousands and create last‑minute surprises if you do not plan ahead. In this guide, you will learn what closing costs usually include in Pennsylvania, how Peters Township often differs from nearby Allegheny suburbs, and simple steps to estimate your cash to close with confidence. Let’s dive in.
Closing costs at a glance in Pennsylvania
Closing costs are the non‑price expenses due at settlement. They include lender charges, title and settlement fees, recording and transfer taxes, prepaid items like taxes and insurance, and prorations.
- Buyers typically pay about 2% to 5% of the purchase price in closing costs, depending on loan type, rate points, local taxes, and whether you receive seller concessions.
- Sellers commonly pay 5% to 10% of the sale price, with the largest line item usually the real estate commission. Seller totals vary with concessions, repairs, transfer tax practice, and mortgage payoff.
Common buyer costs:
- Loan origination and lender charges, appraisal, and credit report
- Title search, lender’s title insurance, optional owner’s title insurance, and settlement or attorney fee
- Recording fees and local transfer taxes when applicable
- Prepaids and initial escrow deposits for property taxes and homeowners insurance
- Inspections such as home, radon, termite, or sewer
Common seller costs:
- Real estate commission
- Seller settlement or attorney fee
- Transfer taxes depending on local practice
- Mortgage payoff, prorated taxes or HOA dues, and any agreed repairs
What differs in Peters Township vs Allegheny suburbs
You will see the same core categories in both areas. The differences show up in local taxes, municipal requirements, and customary allocations.
Transfer taxes and recording fees
Pennsylvania allows counties and municipalities to set transfer taxes and recording fees. Combined rates and how the tax is split between buyer and seller can differ by township or borough. A 0.5% to 1.5% change is enough to shift cash to close on a typical home, so verify the current rate for the exact property address before you sign.
Property taxes and school millage
Total property tax bills come from the county, the school district, and the municipality. School millage often drives the largest share. If a Peters Township home and an Allegheny suburb home carry different annual tax amounts, you will see that difference in your tax proration at closing and in the initial escrow deposits your lender requires. Always base estimates on the most recent tax bill.
Title insurance and settlement fees
Title premiums follow state‑regulated schedules by coverage type. Settlement and closing agent fees can differ by provider and county. Shopping reputable title companies or attorneys can change your total by a few hundred dollars.
Attorney and closing agent norms
In Western Pennsylvania, either a title company or an attorney often conducts the closing. Fee structures vary between flat and itemized. Get a written estimate so you can compare like for like across Washington and Allegheny County providers.
HOA and municipal requirements
Some communities have HOA transfer or estoppel fees. Certain boroughs require municipal inspections or certificates that add costs at closing. Confirm HOA and municipal checklist items early so you can plan for timing and fees.
Market customs on who pays what
Payment of transfer tax and certain fees can be negotiated in the contract. Local custom may differ between Peters Township and specific Allegheny suburbs, so your agent should check recent comparable sales and advise how to structure your offer or listing.
Real‑world examples to estimate cash to close
Below are illustrative ranges for a $350,000 purchase with 10% down. Your lender’s Loan Estimate and the settlement statement will provide the exact numbers.
Buyer example at $350,000
- Lender fees: $1,500 to $4,000
- Appraisal: $450 to $700
- Credit report: $30 to $50
- Title search, lender’s title insurance, and settlement fee: $1,200 to $2,000
- Owner’s title insurance (optional but recommended): $900 to $1,400
- Recording fees and transfer taxes: $500 to $3,000 depending on locality and contract terms
- Prepaids and initial escrows for taxes and insurance: $2,000 to $5,000
- Inspections: $300 to $900
Estimated buyer closing costs excluding down payment: about $7,000 to $17,000, which is roughly 2% to 5% of price.
Seller example at $350,000
- Commission example at 6%: $21,000
- Seller settlement or attorney fees and transfer tax items: $1,500 to $4,000 depending on locality
- Repairs or credits: varies with negotiation
- Mortgage payoff and prorations: depends on your balance and timing
Total seller costs often land around 5% to 10% of price, primarily driven by commission and local tax practice.
How locality shifts your totals
- If the specific municipality applies an extra transfer tax, expect several hundred to a few thousand dollars difference compared with a nearby community that does not.
- Higher annual property taxes mean larger tax prorations for the seller and larger initial escrow deposits for the buyer. Two similar homes in different school districts can produce noticeably different cash‑to‑close numbers.
Step‑by‑step to avoid surprises
- Request your lender’s Loan Estimate within three business days of application. Review fees, rate points, and prepaids.
- Ask your title company or attorney for a preliminary settlement statement. Compare it with the Loan Estimate.
- Confirm transfer tax, recording fees, and any municipal inspection requirements for the exact address before finalizing your contract.
- Pull the current annual property tax figures from the county and school district to project prorations and escrow deposits.
- Shop where it makes sense. Compare lenders and settlement providers on the same day with the same scenario.
- Plan your funds. Ask the closing agent about certified funds or wires, verification steps, and cutoff times.
- If needed, negotiate seller concessions in your offer and align them with your loan program limits.
- First‑time buyers can explore state programs for down payment or closing cost assistance. Check eligibility and timing early.
Planning tips for South Hills buyers and sellers
- Buyers: Build a cushion. Budget at the high end of the 2% to 5% range until you have firm quotes, then refine. If you are comparing Peters Township with a specific Allegheny suburb, run two separate estimates so you can see the exact difference in taxes and fees.
- Sellers: Ask for a net sheet before you list. Confirm how transfer tax is typically split in your area and how potential repairs, buy‑downs, or credits could affect your bottom line.
- Everyone: Choose experienced local partners. A settlement team that routinely closes in Washington and Allegheny counties can confirm taxes, municipal requirements, and HOA fees early so there are no day‑of‑closing surprises.
When the lowest closing costs might influence your move
If two homes meet your needs and one municipality has lower transfer taxes or lower annual property taxes, that home could reduce your total cash to close. The savings may show up as a smaller tax proration, a smaller initial escrow deposit, or lower transfer tax. Run the numbers for both locations so you can compare the true cost of buying beyond just the purchase price.
Ready to plan your next move with local clarity and calm guidance? Reach out to Jonette Shanahan to get a tailored closing cost estimate and a strategy that aligns with your goals.
FAQs
Who pays transfer tax in Peters Township and Allegheny suburbs?
- It depends on local custom and your contract; verify the current rate and agreed split for the specific municipality before you sign.
How much should a Peters Township buyer budget for closing costs?
- Plan for about 2% to 5% of the purchase price for typical buyer closing costs, plus your down payment.
Are owner’s title insurance policies required in Pennsylvania?
- Lender’s title insurance is required with a mortgage, while an owner’s policy is optional but recommended to protect your equity.
Can closing costs be financed or covered with concessions?
- Some costs can be financed or paid through seller concessions, subject to loan program limits and negotiation.
How do property tax differences affect my cash to close?
- Higher annual taxes increase the tax proration at closing and the initial escrow deposits your lender collects, which raises your upfront total.
