Pennsylvania Seller Closing Costs & Net Proceeds Calculator
calculate the PA home seller closing costs and seller "net"
proceeds with this calculator. Enter the property sale price or list
price on Line 1, column A and the various closing costs will calculate
based on the sales price. You can adjust the costs for real estate commissions,
seller paid closing costs and transfer taxes.
Often, sellers want to "net" a certain dollar amount. Simply enter the desired net on Line 5, column B, and all of the closing costs will recalculate to achieve the desired net and estimate a new sales price (Line 1). For detailed instructions on the use of this calculator, read the TUTORIAL. Please send me an E-mail if you see an error or want to make a comment or a purchase.
The Pennsylvania seller net calculator will estimate the net proceeds for a home sale. Simply enter the sales price in the input box, choose the municipality where the property is located with the drop down box (Line 10) and the calculator will estimate the deed transfer tax. By custom, the buyer and seller split the transfer tax 50/50. The total transfer tax percentage is "usually" 2%, however, some municipalities charge more. If you see one of the exception municipalities, select it. Read more about the Pennsylvania transfer tax
There are sales when the commission is "split" on the sales price. For example, the commission percentage of 6% is calculated on the first $100,000 and 5% on the balance. Enter $200,000 on line 27 and enter $100,000 on line 28. Line 29 will calculate automatically. The result is a fast and easy way to calculate split-commission.
How are real estate taxes prorated between the home buyer and seller?
Most Pennsylvania municipalities prorate the real estate taxes
on a "calendar" year. That means that when the tax bill is sent
to the home owner, the tax bill covers the current year from January
through December. If the tax bill is $1,200, and closing is on July
1st and the tax bill was paid by the seller, the buyer would reimburse
the home seller $600 (for July 1st to December 31st). Remember,
the bill was paid for the entire year. Now since the home buyer
will occupy the home from July 1st forward, the buyer pays the seller
back for July 1st to December 31st. If the seller did not pay the
tax bill, then the seller will owe the buyer 6 months of real estate
taxes. Makes sense. Everyone pays their fair share of the taxes
based on when they occupied the property.
Now here's where Pennsylvania tax proration can get confusing. The school districts in Pennsylvania bill on a "fiscal" year. The fiscal year runs from July 1st of the closing year to June 30th of the following year. Let's assume that closing occurs on July 1st, this year, the seller will not pay any taxes to the buyer, since the taxes owed to the school district start on July 1st, the date of closing. But what happens if the closing occurs in December? The taxes paid (or owed) are based on the seller's occupancy from July 1st to the settlement date. If the real estate taxes were paid by the seller, then the buyer reimburses the seller for the paid tax dollars from the date of settlement to June 30th of the following year. Still confused? Use the property tax proration calculator above to estimate the property tax proration.
Who chooses the settlement company in PA?
The settlement company is usually chosen by the home buyer. In practice, the real estate agent or lender suggest the settlement company. The settlement company can be a title insurance agent or an attorney representing a title insurance company.
Should I have an attorney at closing?
Having legal representation can't hurt, except your wallet. You and the buyer will receive the "final" numbers three days before closing. The 3-day rule moves around based on weekends and holidays and who is providing the settlement. In short, you will see the net proceeds before you sit down with the buyer and closing company. If your net proceeds are not what you expected, then it might be the time to contact an attorney.