✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Welcome to the vibrant real estate market of Pennsylvania, known as the Keystone State! If you’re considering selling a house in Pennsylvania, now is the perfect time to explore the opportunities.
In April 2024, home prices in Pennsylvania saw a 0.2% increase compared to the previous year, with a median price of $265,400. The real estate market in the Keystone State is showing promising signs.
📉 Pennsylvania Housing Market Update
- Median Home Sale Price Drop YoY: The median home sale price dropped to $364,366, down by 2.3% YoY, the biggest decline in more than a decade.
- Fewer Buyers are Applying for Mortgages: Mortgage purchase applications were down by 31% YoY. Due to expensive financing, fewer buyers are applying for mortgages.
- iBuyers are No More a Viable Option: Several iBuyers have either shut down or are suffering massive losses. As per our research, most iBuyers are not offering more than 70% of a property’s Fair Market Value.
- Bottom Line: In 2023, more sellers in the Keystone State are opting to sell their homes by owner. By listing on the MLS with the best FSBO sites in Pennsylvania, your Pennsylvania home gets maximum exposure, and you save thousands of dollars in commissions.
We have broken down the important steps in selling a house in Pennsylvania, so you can attract more buyers and sell for the best price.
Step 1: Determine How You Want to Sell Your House in Pennsylvania
How you choose to sell will determine all other aspects of selling your own home in Pennsylvania. These include the cost of selling a house in Pennsylvania, marketing strategy, the level of preparation you need, etc.
Home sellers in the Keystone State are no longer required to work with only 3% commission realtors to list and sell their houses. You have options now – MLS listing services, discount brokers, FSBO sites, etc. – who work at lower rates. Weigh the pros and cons of each option before you choose one.
- Sell With a Discount Broker: A discount real estate broker offers all the services similar to a traditional broker at discounted rates. Discount brokers in Pennsylvania charge a 1.5%-2% commission or a $3,000-$5,000 flat rate. They will help you with everything, from listing to closing, and offer decent savings.
- How to Sell a Home by Owner in Pennsylvania: You can sell your home without a Realtor, independently. You will save the entire 3% listing commission but won’t get MLS access. You can list your Pennsylvania home on For Sale By Owner websites. The best FSBO sites leverage technology to get you listed and connect you with potential buyers directly.
- Sell With a Traditional Realtor: We do not recommend working with a traditional Realtor. They charge a 5%-6% commission and control most aspects of the transaction. However, if you need guidance at every step, work with Pennsylvania Realtors in your area with expertise in the Pennsylvania housing market.
- Offer Your Home to a Cash Buyer: Selling a home as is in Pennsylvania can be a practical option for homeowners. Pennsylvania cash home buyers offer 30% to 50% of the Fair Market Value and offer flexible closing timelines.
✍️ Pro Tip: Offer your home to an iBuyer if your house is in good condition. iBuyers offer up to 70% of the Fair Market Value and make instant cash offers.
Step 2: Set a Realistic Listing Price
The listing or the asking price is the most important factor for a successful home sale. Typically, the Pennsylvania real estate broker will run comps and help you arrive at an asking price. However, in an FSBO sale, you can use online tools like Zestimate to determine the asking price for your Pennsylvania home.
Do not overprice your home. If you do, your home will spend more days on the market, and buyers may make negative assumptions about it.
On the other hand, underpricing can be a good strategy. Remember, the listing price is not equal to the sale price. The purpose of the listing price is to attract buyers for your home.
You can set the asking price at the lowest price acceptable to you. You might get multiple offers which may lead to a bidding war among buyers. Bidding wars can help you sell at a price higher than what you had in mind. Refer to this informative guide on how to price your home for sale for more such strategies.
Step 3: Market Your Home
A good marketing strategy will help you attract more potential buyers. You can work with a broker to market your home or do it yourself. Here are a few marketing tips that can increase your home sale value substantially:
- Stage Your Home: You can sell your home for up to $40,000 more by staging it. You can either DIY it or work with local Pennsylvania home staging companies. They will rearrange the interiors of your house to make it look spacious and presentable.
- Hire a Real Estate Photographer: With professional real estate photography, you could sell your home in Pennsylvania 32% faster. Professionally clicked pictures will make your property listing pop. It will also help you to market your home to 90% of buyers who search for properties online. Check out the top real estate photographers in Pennsylvania.
- List on MLS: With an MLS listing, you can sell faster and for up to 17% more. Your property listing will also get syndicated to 100+ real estate websites. But, only licensed real estate agents in Pennsylvania have access to the MLS. They charge a 3% commission which can burn a hole in your pocket. You can list your house on MLS in Pennsylvania with Pennsylvania Flat Fee MLS Companies. Houzeo will get you listed for $379, and that too within 48 hours.
- List on Free FSBO Websites: Several FSBO sites allow you to list your home on their website for free. Your Pennsylvania property can attract buyer traffic that visits a particular FSBO website. Some examples of free FSBO listing websites in Pennsylvania include Craigslist, Zillow, ForSaleByOwner.com, etc. However, you may attract unverified buyers or scammers as well.
- Post a Yard Sign: With a yard sign, you can attract unrepresented buyers and save the buyer agent commission. Ensure you get a yard sign with your phone number so that the buyers can contact you directly.
- Host Open Houses: In a hot market like Jacksonville or Miami, an open house can be a great way of showing your property to home buyers. Also, you can attract unrepresented buyers.
Step 4: Show Your Home to Potential Buyers
Showings are essential when selling a property in Pennsylvania or anywhere. The more the number of buyers touring your home, the greater the chances of you getting an offer. But this doesn’t mean showings should be inconvenient for you. You can use an online showings management tool like Houzeo Showings.
Houzeo Showings allows you to schedule slots for buyers to tour your Pennsylvania house. Home buyers can also request and reschedule or cancel showings.
Step 5: Negotiate Offers
Interested buyers will send written offers to your agent or directly to you, in case of an FSBO sale. In a seller’s market, buyers might make offers above the list price. But, experts predict 2023 to be a buyer’s market. So, be open to negotiations.
As a seller, you can accept, reject, or counter an offer. A counteroffer is a way of negotiating an offer for better terms or prices. It should be in written format and have a set timeframe for the buyers to respond. In the counteroffer, you can offer seller concessions, repair credits, etc., in exchange for selling at the list price.
In case of multiple offers, weigh all of them across various merits and do not accept the highest bid right away. You may want to consider the following before accepting an offer amongst multiple offers:
- Mode of payment (cash vs financing)
- Home buyer’s mortgage approval status (pre-approval vs pre-qualified)
- Buyer’s willingness to cover the closing costs in Pennsylvania or some part of it
- Buyer’s willingness to bypass some contingencies like a home appraisal, home inspection in Pennsylvania, etc.
- Closing timeline
In a traditional home sale, a real estate professional will negotiate for you. However, as an FSBO seller in Pennsylvania, you are on your own. In such a situation, you can use digital offer management tools like Houzeo Offers. With Houzeo Offers, you can counter an offer, call for the highest and the best offer, and more.
Step 6: Close the Sale
After the seller accepts an offer, the MLS listing status is changed to “house under contract“. You and the buyer have to complete a lot of tasks from contract to closing. Here are the key milestones in the closing process in Pennsylvania:
Allow the Buyer to Complete the Due Diligence
After you accept an offer, your Pennsylvania property goes off the market, and the buyer can perform the necessary due diligence. The buyer inspects their to-be-home to proceed with the purchase.
Post due diligence, the buyer works on securing a mortgage, known as the underwriting period. During this period, the lender verifies the buyer’s finances and inspects and appraises the property. An amount equivalent to the property’s appraised value is sanctioned to the buyer.
Pay the Closing Costs
As a seller, you will pay 5%-6% in Pennsylvania real estate commissions, equally split between your and the buyer’s agent. Additional seller closing costs in Pennsylvania that you may have to incur include:
- The escrow or the title fee
- Taxes on selling a house in Pennsylvania include the transfer tax, capital gains tax, etc.
- Outstanding HOA dues
- Real estate attorney fees
- Seller credits (if you have offered any).
» Pennsylvania Seller Closing Costs Calculator: Estimate the exact cost to sell a house in Pennsylvania.
Sign the Escrow and Title Documents
This is the final step in the process of selling a home in Pennsylvania. Here, you sign the escrow and title documents needed to sell a house by the owner in Pennsylvania. Additionally, you sign the deed and closing disclosure. Ensure you bring two valid ID proofs at the signing.
After the close of the escrow, the new homeowner’s details are registered in the public records. You receive a wire transfer or a check for the final home sale price, and the sale is complete.
Final Word
Selling a house in Pennsylvania presents a unique opportunity to take advantage of the state’s real estate market. Despite a slight decrease in the number of homes sold, the median home price has risen, indicating a positive trend for sellers.
By leveraging the current market conditions and following effective strategies, you can maximize your chances of a successful sale.
So, get ready to embrace the nickname “The Keystone State” and make the most of the Pennsylvania real estate market as you embark on your journey of selling a house in Pennsylvania.
Get on the MLS with a Flat Fee Realtor or a Flat Fee MLS company like Houzeo. With Houzeo, your home will be listed for $379 within 48 hours. Read Houzeo reviews to know what home sellers across Pennsylvania say about Houzeo.
Don’t let the complexities of the real estate market deter you from selling your home in Pennsylvania. With the right resources and approach, you can successfully navigate the process and move on to your next adventure.
FAQs
1. How much are closing costs for seller in Pennsylvania?
Closing costs for sellers in Pennsylvania typically range from 6% to 10% of the sale price of the home. These costs can include real estate agent commissions, title fees, transfer taxes, and other miscellaneous expenses. You can save thousands of dollars in the listing agent commission by selling your house by owner in Pennsylvania. You can work with a Pennsylvania Flat Fee MLS company to get listed on the MLS and manage the other aspects of the home selling journey on your own.
2. What disclosures are required when selling a house in Pennsylvania?
There are several required disclosures when selling a house in Pennsylvania, including a Transfer Disclosure Statement, a Natural Hazard Disclosure Report, and a Smoke Detector and Water Heater Statement of Compliance.
3. How to sell your house without a realtor in Pennsylvania?
Selling a house in Pennsylvania without a realtor can be a viable option for homeowners who want to save on commission fees. To sell your house without a realtor, you'll need to price the home correctly, market it effectively, and be prepared to handle all aspects of the transaction, including negotiations and paperwork. You can manage other aspects of selling real estate in Pennsylvania using Houzeo tools like Houzeo Showings, Houzeo Offers, and more. With a Flat Fee MLS listing, you will sell fast and save thousands in real estate commissions.
4. What are the taxes for selling a house in Pennsylvania?
In Pennsylvania, the taxes for selling a house include Capital Gains Tax, which is calculated based on the profit from the sale, and Transfer Tax, which is a percentage of the sale price. The Capital Gains Tax rate is currently 13.3% for high-income earners, while the Transfer Tax rate varies by county.
Selling a House in Pennsylvania Near Me
Click on your city or county to understand how selling real estate works in your area.
| # | County/City | Selling a Home in Pennsylvania Near Me |
|---|---|---|
| 1, | Philadelphia | Sell My House in Philadelphia, PA |
