If you've sold a house in PA....

Re: If you've sold a house in PA....

• nj67ws56qa21

  February 2010

  What exactly do you mean by closing costs?  Do you want to pay the buyer's closing costs, or just your own?  Typically, if you use a realtor and are just paying your own closing costs, you'll end up paying the realtor's commission/fee, and some relatively minor fees for document prep and that sort of thing.  If you are taking a loss, you may have to bring extra money to the closing table, too.  Your best bet is probably to talk to a local realtor in the area you plan to sell...and if you anticipate capital gains, maybe a tax lawyer, too.    

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• MrsJenniferS

  February 2010

  We're not planning on paying the buyers' closing costs, just our own. We don't expect to take a loss either. I remember as a buyer in NJ, the closing costs were unreal - like $10K. I know we'd have to pay realtor commission and document prep, etc...but anything else that would account for a large chunk of change?

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• nj67ws56qa21

  February 2010

  There shouldn't be much else (at least from when we sold our house last year there wasn't).  If you are expecting a profit on it, they'll just deduct your realtor fee (if you even use one) from your profit and you won't have to bring anything to the table.  And hopefully, you'll get to walk away with a nice check to take to the bank!

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• dimples41479

  February 2010

  Not as a seller, closing costs are minor unless you are helping the buyer out.

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• RaeAnt

  February 2010

  Agreed. Unless you are helping the buyer, you wouldn't be paying "closing costs" per se. Depending on the home area it's in, and homes price though, it may behoove you to pay at least something toward closing costs. Also just because you sell a home doesn't mean you will owe capital gains. However, since it's an investment property, I'm not positive on that. This worksheet may help.

  http://www.1031x.com/Capital-Gains-Pennsylvania.cfm

  http://taxes.uslegal.com/capital-gains/capital-gains-and-the-sales-of-homes/

  http://www.paytaxeslater.com/stepup.htm

  http://www.teenanalyst.com/taxes/capitalgainstaxsecondhome.html
  

  Warning No formatter is installed for the format bbhtml

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• nj67ws56qa21

  February 2010

  After looking at our taxes this weekend, I realized there was another bigger fee we had to pay at closing as a seller, the PA transfer tax.  The transfer tax is 2% of the sale price of the house, split between the buyer and seller.  So our % was 1% of the sale price. 

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