Buying a home in Philadelphia is about much more than finding the right property. My role is to help you understand the neighborhood, the building, the value, the condition of the property and the entire process, so you can make a confident and informed decision.

Step one: get pre-approved before you seriously shop

One of my first recommendations is to become pre-approved before you start shopping in earnest. A pre-approval tells you what you can borrow, what your monthly payment is likely to be at different prices, and roughly how much cash you will need at closing. It also tells a seller that your offer is real. In a city where a well-priced home on a good block can draw interest quickly, walking in with financing already reviewed puts you in a much stronger position than trying to arrange it after you have found the house.

If you do not already have a lender, I am happy to connect you with local mortgage professionals who understand the Philadelphia market and can walk you through financing options, estimated monthly payments and closing costs. Ask any lender you speak with to include Philadelphia’s transfer tax in the closing cost estimate from the start. It is the line item that surprises buyers most, and a pre-approval built without it can leave you short at the table.

For a first look at payments, the payment calculator on this site is a useful starting point. Treat it as a rough guide, not a replacement for a lender’s written estimate.

Closing costs for Philadelphia buyers

Philadelphia closing costs are important to understand before you make an offer, not after. I help my buyers anticipate the expenses associated with a purchase, including transfer tax, title costs and other settlement expenses, so there are no unnecessary surprises along the way. The largest and least familiar of those is the transfer tax.

The Philadelphia realty transfer tax

The City of Philadelphia states the current realty transfer tax rate as 3.578 percent (City) plus 1 percent (Commonwealth), for a total of 4.578 percent. For an arm’s-length sale, the City applies that rate to the actual consideration, meaning the sale price plus any assumed debt. The Pennsylvania Department of Revenue confirms the Commonwealth’s portion: a 1 percent realty transfer tax on the value of real estate transferred, collected by county Recorders of Deeds, often together with a local realty transfer tax. In Philadelphia, the tax is paid when the deed is presented for recording with the City’s Department of Records.

To put the rate in scale, here is the City’s own formula applied to a round number. On an illustrative $500,000 purchase with no assumed debt, 4.578 percent is $22,890 in total transfer tax. If that total were split evenly, each side would pay $11,445. Your real figure depends on your price and on the terms of your agreement of sale.

Title and settlement costs

The rest of a buyer’s closing costs fall into a few groups, and the exact figures come from your lender’s estimate and your title company or settlement agent, not from a rule of thumb.

Property taxes, assessments, the Homestead Exemption and abatements

Property taxes require a closer look in Philadelphia. I review the current taxes, the assessed value and any applicable tax abatement or exemption for every property my buyers are serious about. The seller’s current bill is not always the bill you will pay, because exemptions and abatements belong to a particular owner or a particular period of time, and both can change when a home sells.

How the assessment works

The City’s Office of Property Assessment (OPA) determines what every property in Philadelphia is worth, and that assessed value is used to calculate the property’s real estate tax. OPA also handles the abatement and exemption programs that may reduce a bill, and it offers a review and appeal process if an owner disagrees with an assessment. You can look any address up on the City’s Property Search at property.phila.gov. The record shows the market value the City has assigned, the taxable and exempt portions of the land and the improvement, and whether the property currently has a Homestead Exemption.

The Homestead Exemption

According to the City of Philadelphia, if you own your Philadelphia home and live in it as your primary residence, you are eligible for the Homestead Exemption on your Real Estate Tax. The exemption reduces the property’s assessed value by $100,000 for tax purposes. The City states that, starting in 2025, most homeowners save up to $1,399 a year on their Real Estate Tax bill as a result.

A few points from the City’s page matter to a new buyer:

• You are still eligible if you have a mortgage, and even if you are a new homeowner.
• The exemption does not transfer from the seller. As the new owner, you apply for it yourself.
• Once the City accepts your application, you do not reapply unless your deed changes, for example when you refinance or add or remove a co-owner.
• The final deadline to apply is December 1 of each year. The City suggests applying by October 1 to see the benefit reflected on the next bill.
• You can apply online through the Philadelphia Tax Center, by phone on the City’s Homestead Hotline at (215) 686-9200, or by mail. Approval is the City’s decision.

Tax abatements

The City describes a property tax abatement as an exemption of all or part of an improvement from real estate tax for a set number of years, designed to encourage new construction or rehabilitation. OPA administers several types, including a 30-month abatement during residential construction, 10-year abatements for residential rehabilitation, and 10-year abatements for new residential construction. The terms depend on the type of abatement and when it was granted.

For a buyer, an abatement raises three questions: is there one on this property, what type is it, and when does it end. A home with an abatement can carry a low tax bill today and a noticeably higher one after the abatement expires. That deserves an answer before you make an offer.

The extra layer for condominiums and co-ops

If you are purchasing a condominium, there is another layer of due diligence. I help my buyers look beyond the individual unit and understand the condominium association: the monthly fees, the reserves, the insurance, any assessments, the rules, the rental and pet policies, parking, and the other factors that can affect both your experience of living there and your ability to resell later.

Every building is different, and those details change. A building’s fee, reserve balance and policies this year are not necessarily what they will be next year. I review the current documents with each buyer. If you are considering a specific building, ask me for its current fees and policies rather than relying on an older listing or a website.

A co-op is a different form of ownership. Instead of a deed to a unit, you generally buy shares in the corporation that owns the building and receive the right to occupy your home, and many co-ops have their own approval process for new buyers. Financing, monthly charges and the rules that govern a sale can all differ from a condominium, so the questions change too.

I cover both in detail in Buying a Condo or Co-op in Center City Philadelphia. If one building in particular is on your list, Living at Waterfront Square shows the kind of building-level questions I work through.

Inspections: rowhomes, new construction and high-rises

Inspections are particularly important in Philadelphia, where we have everything from historic rowhomes to new construction and high-rise condominiums. Each one asks different questions of an inspector.

Rowhomes and twins

An older rowhome or twin shares walls, and often roofing details, with its neighbors. The structure, the masonry, the roof, the sewer line from the house to the street, the electrical service and the plumbing can all be many decades old or partly updated at different times. A general home inspection is the starting point. When the findings call for it, I can connect you with contractors and specialists for additional evaluations of roofs, masonry, plumbing, electrical systems, sewer lines, HVAC systems and other property-specific concerns. A sewer line camera inspection is one of the additional checks I raise often on older homes. Buying a Philadelphia Rowhome goes further into what to look at on this type of home.

New construction

New does not mean inspected. A new home still benefits from an independent inspection, ideally before the walls are closed where the builder allows it and again before settlement. Ask what warranty comes with the home, who stands behind it, and whether the property carries a tax abatement, since that affects both your costs today and your costs later.

High-rise condominiums

In a high-rise, your inspector looks at the unit: its windows, its plumbing and appliances, its heating and cooling equipment and anything else the documents say you own. The roof, facade, elevators and central building systems are generally the association’s responsibility, and their condition shows up in the building’s reserves, budget and any planned assessments rather than in your inspection report.

Parking should never be assumed

Parking is another detail that should never be assumed. Depending on the property, a parking space may be deeded, separately deeded, assigned, licensed or leased, and those arrangements are not interchangeable. I help my buyers verify exactly what is included with a purchase.

• Deeded: the space is conveyed as part of the property you are buying.
• Separately deeded: the space is its own piece of real estate with its own deed, and it needs to be included in the purchase explicitly.
• Assigned: the association assigns a space for your use under the building’s rules, which can change.
• Licensed: you have permission to use a space on stated terms, which may be revocable or tied to fees.
• Leased: you rent the space under a lease, with its own term and cost.

Parking can affect both your daily life and your resale value, so the agreement of sale should say exactly what you are getting.

What to check before you make an offer

Here is the short list I run through with buyers before we write an offer. Most of it takes minutes, and all of it is easier to deal with now than during the inspection period.

Think about resale from day one

I encourage buyers to think about resale from the beginning. Even if you plan to stay for many years, I look at the property through the eyes of both today’s buyer and a future buyer. Location, layout, natural light, outdoor space, parking, building finances and comparable sales can all influence long-term value and marketability.

Buyers also tend to focus too much on price per square foot. In Philadelphia, value is much more nuanced. Parking, outdoor space, taxes, condo fees, views, floor level, condition, location within a neighborhood and even the particular block can all have a significant effect on what a home is worth. Two homes with the same price per square foot can be very different purchases.

The same thinking runs through the seller side of the market, which I cover in Selling a Home in Philadelphia.

Philadelphia is a block-by-block market

Most importantly, Philadelphia is a neighborhood and often a block-by-block market. Two properties only a few streets apart, or even two condominiums in the same building, can have very different values and considerations. Buyers often think Philadelphia is one market. It isn’t.

Choosing a home is not only about bedrooms, bathrooms and square footage. It is about your life. Can you walk to your favorite restaurant? Where will you walk your dog? How easy is it to get to the airport or 30th Street Station? Can you walk along the river in the morning? Will this location still feel right for you three years from now? Those answers change from one block to the next, and they are the reason I spend time on the ground with buyers rather than relying only on what shows up online.

If you are still deciding where to look, start with the neighborhood guides on this site, such as Society Hill and Washington Square, Queen Village, Bella Vista and the Italian Market, Old City and the Delaware River, Northern Liberties and Fishtown and Rittenhouse and Graduate Hospital, or browse them all on the neighborhoods page. If you are moving here from another city, Moving to Philadelphia from New York or Washington, DC covers what tends to surprise buyers coming from those markets, and What People Get Wrong About Philadelphia Real Estate covers the most common misunderstandings.

From the first showing through settlement and beyond

Throughout the process, I serve as your Philadelphia real estate resource. From neighborhood guidance and property analysis to lenders, inspectors, title professionals, attorneys, contractors and other local resources, I can connect you with the professionals you may need from your first showing through settlement. I work with buyers across price ranges and property types, including renters who are ready to become owners. My own business started that way.

My job is not to talk anyone into buying a home. It is to give you the knowledge, the resources and the confidence to make the right decision for you, and to stay hands-on from the first showing to settlement. My goal is not simply to help you buy a home. It is to make sure you understand what you are buying, feel supported throughout the process, and have a Philadelphia real estate resource long after you receive the keys. You can read more about how I work on the buyers page and in Naomi Kurzyna, Philadelphia REALTOR at Compass.

Frequently asked questions