Closing Costs in Montgomery County PA: What Buyers and Sellers Should Expect (2026 Guide)
Closing costs in Montgomery County, PA are on the higher side compared with many states, and it’s common for both buyers and sellers to pay several percent of the purchase price in total fees and taxes in 2026.
Closing Costs for Buyers
Buyer closing costs in Montgomery County typically include:
Lender-related fees (origination, underwriting, processing).
Appraisal and credit report fees.
Title insurance and settlement/attorney fees.
Recording fees and miscellaneous state/municipal charges.
Prepaid property taxes and homeowner’s insurance (escrows).
Across Pennsylvania, buyer closing costs (including transfer tax and prepaid items) commonly total about 2–5% of the purchase price, with statewide averages near 4.3–4.3% of the price depending on methodology. On a $450,000 home, that can easily mean high four to low five figures in closing costs before any seller credits are applied.
Typical Buyer Cost Range and “Prepaids”
For many financed buyers:
A working estimate of 2–5% of the purchase price is reasonable, with the exact number driven by loan type, rates, points, and escrows.
Some of what shows up on the Closing Disclosure as “closing costs” are prepaid items, not true fees, such as:
Property tax escrows.
Homeowner’s insurance escrows.
Per diem interest from settlement date to first payment.
These prepaid funds are not lost; they are set aside to cover future bills, but they still affect your cash needed at settlement.
Closing Costs for Sellers
Sellers in Montgomery County (and across Pennsylvania) typically pay:
Real estate commission, often around 5–6% of the sale price.
Their share of real estate transfer tax (commonly 1% of the price by local custom).
Title and settlement fees, recording fees, and any agreed credits or concessions to the buyer.
Mortgage payoff, prorated property taxes, and any municipal certifications.
Recent statewide estimates suggest sellers in Pennsylvania pay roughly 5.3–5.4% of the sale price in closing costs (transfer tax, title, fees, incentives), not including agent commission, which is another ~5.7–6% on average. On a $450,000 sale, combined closing costs and commission can therefore represent a substantial portion of the proceeds, which is why a clear net sheet is essential.
Pennsylvania Transfer Tax
For most standard residential sales in Pennsylvania:
Total real estate transfer tax is typically 2% of the sale price:
1% to the state.
1% to the municipality/school district, though some areas can be higher.
By custom, this 2% is split 1% buyer / 1% seller, but the Agreement of Sale can assign it differently.
Because transfer tax is a percentage of the sale price, it can be one of the largest line items in your closing costs on both sides of the transaction.
Negotiability and Seller Credits
Some components of closing costs can be negotiated:
Buyers may negotiate seller credits to offset closing costs, subject to loan program limits on interested-party contributions.
Parties can agree to shift more or less of the transfer tax to one side to strengthen an offer or accommodate a tight budget.
In slower markets, sellers may be more willing to offer credits or pay for repairs; in hotter markets, concessions are less common.
However, many third-party fees (title, recording, state tax) are not negotiable; only who pays them is.
Can Closing Costs Be Rolled Into the Loan?
In refinances, “no-closing-cost” structures or rolling some costs into the new loan balance are sometimes possible (in exchange for a higher rate).
In purchase transactions, most closing costs are paid at settlement; they are not simply added on top of the price, though seller credits can effectively cover part of them.
Your loan type and appraisal value both limit how much can be financed or credited.
Commonly Overlooked Costs
Buyers and sellers in Montgomery County often overlook:
HOA/condo capital contributions or move‑in fees for communities.
Special assessments for condos or planned communities.
Title endorsements or extra title-related charges.
Township or borough resale certifications, U&O inspections, and related fees.
Utility escrows or final utility balances at settlement.
These line items can be smaller than transfer tax or commission but still affect your final cash-in / cash-out numbers.
Want a Clear Breakdown for Your Scenario?
If you’re buying:
We can estimate down payment + closing costs + escrows and build a realistic cash-to-close plan.
If you’re selling:
We can start with price, then subtract commission, transfer tax, fees, and payoff to estimate net proceeds.
