If you're thinking about selling your home in Pennsylvania, it's a good idea to familiarize yourself with the process beforehand. Doing so can help you maximize your profits, minimize how long your house sits on the market, and reduce the likelihood that something complicates your next move.
It’s easy to believe that the housing market right now is doom and gloom if you go by the newspaper headlines. As often happens with real estate, however, news of its demise has been greatly exaggerated.
When it comes to the Pennsylvania housing market, home prices are up 4.1% year-over-year right now (putting it right in line with average historical appreciation). So if you’ve heard that the market is terrible for sellers, keep in mind: it’s only “terrible” compared to how incredibly amazing it was for sellers last year.
Rates were kept abnormally low during the COVID-19 pandemic, and we’re unlikely to see rates go that low again in the next decade. Demand has still remained high from buyers who are determined to get into a home, even with the shifting market.
So yes, it’s still a good time to sell. While the frenzy for homes may have died down - and interest rates have shot up - it’s important to keep in mind that this is probably the new normal for the market.
The months' supply of homes is under 5-6 months, indicating we're still in a seller's market (while slowly moving closer to a buyer's market).
The number of homes for sale is down - many sellers are likely trying to wait out the market for better conditions. Sell now and you stand out. Eventually, though, life circumstances will propel them to enter the market. And when they do, you as a seller will lose the advantage you have today of standing out among a relatively small pool of inventory.
“With continued supply shortages and high buyer demand, now is a good time to sell your home. And with interest rates on the rise, it may be better to sell sooner rather than later — if rates spike much more, some prospective buyers may retreat from home shopping,” explains Howard Smith, a Philadelphia-based Realtor.
If you’ve never sold a home before, it’s good to know what the entire process looks like from start to finish.
From start to finish, the process typically takes around three months - about half of this time will be closing (negotiations and financing).
You can opt to list your home For Sale By Owner (FSBO) in Pennsylvania. However, there are a variety of reasons that most people don’t opt to do this. While on the surface it may seem like you save money, in reality going this route often eats into profits - for a few reasons.
While it’s certainly possible to sell a home by owner, if you’re not an experienced real estate professional, chances are it won’t save you much money anyway.
“Selling a house yourself isn't the norm and it certainly comes with challenges. The research shows that unless you're facilitating a sale where you already know the buyer, you're much better off hiring a real estate agent who can do your property,” explains Smith.
When you sell a home in PA, you’re required by law to disclose the condition of your home. The PA disclosure form covers 20 different topics, including the plumbing system, heating, water supply, and more.
It’s in your best interest to disclose everything you know. Any issues will likely come up in the inspection anyway - but if you fail to disclose those issues ahead of the home sale, they can become a negotiation tool for the buyer (who can ask for a lower price to compensate for repairs).
Find out more: 20 Problems You’ll Need to Note in a PA Seller’s Disclosure
Houwzer is one of the top-rated brokerages for home sellers in Pennsylvania for several reasons.
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Sellers do pay closing costs in PA. Closing costs are the various fees and taxes that have to be paid when you buy or sell a home. In Pennsylvania, you can expect these closing costs:
*The average commissions for Realtors in PA is 2.72% for buyer's agent commissions, and 2.81% for listing commissions. Working with a company like Houwzer can lower the cost of agent commissions.
"Many agents do not discuss the Transfer Tax fee - it is usually split between the seller and buyer, in the suburbs in most areas (not all) the fee is 2%, in Philadelphia it is over 4%," notes Smith.
If you’re selling your home in PA, you’ll be able to exclude up to $500,000 in gains from taxable income (for joint filing - $250,000 for single) if your home has been your primary residence for at least two of the last five years.
Sellers are often operating on a tight timeline and the sooner they can sell their house, the smoother things go. Here’s a few tips you can employ in order sell your home fast.
“Price to sell: setting a realistic and competitive asking price is one of the best ways to sell your house fast,” recommends Smith. “Overpricing your home will just scare buyers away, leading to more time on the market. You might end up lowering the price during negotiation anyway—overpricing will just add steps to the process.”