Pennsylvania process · buyer view

The Pennsylvania Home-Buying Process: Your Step-by-Step Checklist

This checklist walks you through buying a home in Pennsylvania from getting pre-approved all the way to picking up the keys at closing.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-6 weeks

Pre-Offer

Get your money, paperwork, and representation lined up before you start writing offers. In PA you also need to handle a couple of state-specific forms before your agent can really get to work for you.

  1. Figure out what you can actually afford

    YouBefore you start touring homes

    Add up your savings, monthly take-home pay, and existing debts. A common rule of thumb is keeping your total housing payment (mortgage, taxes, insurance) under about 30% of your gross monthly income. You will also need cash for a down payment, closing costs, and a small reserve for surprises after move-in.

    You'll need

    • Recent pay stubs
    • Bank statements
    • List of monthly debts

    Cost: $0

  2. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Contact 2-3 lenders and apply for pre-approval so you know your real price range and so sellers take your offers seriously. Compare interest rates, fees, and loan types. A pre-approval letter is much stronger than a quick pre-qualification.

    You'll need

    • W-2s (last 2 years)
    • Tax returns (last 2 years)
    • Pay stubs (last 30 days)
    • Bank statements (last 2 months)
    • Photo ID

    Cost: $0

  3. Receive and acknowledge the PA Consumer Notice

    Your agentAt the very first in-person meeting with any PA agent

    Every PA real estate licensee must hand you the Consumer Notice at your first in-person meeting and before any real discussion about your price, motivation, or specific properties. It explains the different ways an agent can represent you in Pennsylvania. Sign the acknowledgment so the agent has a record.

    You'll need

    • Photo ID

    Cost: $0

  4. Sign a written Buyer Agency Contract before touring homes

    Your agentBefore touring any home with an agent

    Pennsylvania has long required a written agreement before an agent can represent you, and the NAR settlement that took effect August 17, 2024 added the requirement that the buyer agent's compensation be a specific dollar amount or percentage you both agree to in writing. Read the PAR Buyer Agency Contract carefully, ask questions, and feel free to negotiate the term length, geographic area, and compensation. You can also negotiate exclusivity.

    You'll need

    • Photo ID

    Cost: $0

  5. Choose the type of representation you want

    Your agentBefore signing the buyer agency contract

    PA recognizes five roles: seller's agent, buyer's agent, dual agent, designated agent, and transaction licensee. A buyer's agent owes you full loyalty. A transaction licensee does not represent either side and cannot advise on price strategy. Dual or designated agency requires informed written consent. Pick what fits your comfort level and confirm it in writing.

    Cost: $0

  6. Tour homes and build a shortlist

    YouAfter pre-approval and signing the buyer agency contract

    Use MLS listings, open houses, and showings with your agent to compare neighborhoods, layouts, and condition. Take photos and notes since homes blur together fast. Pay attention to commute times, school districts, and obvious red flags like water stains, sloping floors, or strong musty smells.

    Cost: $0

Phase 2 of 7 · typically 1-7 days

Offer

Decide on price and terms, talk through how the buyer agent gets paid, and write up the contract. In PA most deals use the standard PAR Agreement of Sale.

  1. Talk through how your agent will be paid

    Your agentBefore writing each offer

    In Pennsylvania every commission rate is fully negotiable. There is no standard rate, no minimum, and no rate set by the state, the MLS, or any trade group. You and your agent already locked in a number in your buyer agency contract; now decide whether you want to ask the seller to cover some or all of it in your offer, pay it yourself, or use a hybrid mix.

    You'll need

    • Signed buyer agency contract

    Cost: $0

  2. Write the offer using the PAR Agreement of Sale

    Your agentWhen you are ready to make an offer

    The Pennsylvania Association of Realtors Agreement of Sale (Form ASR) is the contract used in almost every residential PA deal. It covers price, deposit, inspection contingencies, financing, settlement date, and which fixtures convey. Make sure your agent uses the current version because the form is revised regularly.

    You'll need

    • Pre-approval letter
    • Proof of funds for deposit

    Cost: $0

  3. Decide whether to ask the seller to cover buyer agent compensation

    Your agentWhen drafting the offer

    Since the August 2024 practice changes, offers of buyer agent pay can no longer appear in MLS fields, so any seller contribution must be negotiated directly in your offer. Asking is a normal, legal part of the process. Your agent can write the request as a flat dollar amount or a percentage in the Agreement of Sale.

    Cost: $0

  4. Negotiate counteroffers and finalize terms

    Your agentWithin hours or days of submitting the offer

    The seller may accept, reject, or counter your offer with changes to price, dates, or what stays with the house. Each round is in writing. Stay reachable and decide ahead of time on your top price and your walk-away point so emotion does not push you past it.

    Cost: $0

Phase 3 of 7 · typically 1-2 weeks

Under Contract

Once both sides sign, the clock starts on deposits, disclosures, and contingencies. Read every disclosure carefully because they tell you what the seller already knows about the home.

  1. Deliver your earnest money deposit

    Escrow / titleWithin the deadline written in the Agreement of Sale (often 1-5 days after acceptance)

    Earnest money shows the seller you are serious. In PA the broker holding it must deposit it into a separate escrow account by the next business day after they receive it. Get a written receipt and never wire funds without verifying the instructions on the phone using a number you already know.

    You'll need

    • Signed Agreement of Sale
    • Wire instructions verified by phone

    Cost: Varies (often 1-3% of purchase price)

  2. Read the Seller's Property Disclosure Statement

    Seller's sideBefore signing the Agreement of Sale, or as soon after as the contract requires

    PA's Real Estate Seller Disclosure Law requires sellers of 1-4 unit residential homes to fill out a written disclosure of what they actually know about the roof, foundation, systems, water, sewage, flooding history, radon results, and more. 'Unknown' is allowed only if the seller truly does not know. Flag anything vague or worrying with your agent and ask follow-up questions in writing.

    You'll need

    • Completed Seller's Property Disclosure Statement

    Cost: $0

  3. Review the lead-based paint disclosure if the home is pre-1978

    Seller's sideBefore you sign the Agreement of Sale or within the federal 10-day window after

    Federal law requires sellers of homes built before 1978 to give you a lead disclosure, the EPA pamphlet 'Protect Your Family From Lead In Your Home', and any known lead reports. You also get a 10-day window to test for lead before you are bound, unless you waive it in writing. Take the window seriously if you have young kids or plan to renovate.

    You'll need

    • Lead-based paint disclosure form
    • EPA pamphlet

    Cost: $0

  4. Review condo or HOA documents if the home is in one

    Seller's sideAfter going under contract, before the contingency deadline

    If the home is a condo, the seller must give you a resale certificate from the association under the PA Uniform Condominium Act. If it is in a planned community with an HOA, the resale certificate falls under the Uniform Planned Community Act and the association has 10 days to provide it after request. Read the budget, current dues, special assessments, pending litigation, and rules carefully.

    You'll need

    • Resale certificate
    • Bylaws
    • Current budget
    • Rules and regulations

    Cost: Seller usually pays the certificate fee

  5. Check for the BMSA coal subsidence notice if the home is in a coal region

    Seller's sideBefore closing, as soon as you know the location

    If the home is in a county with bituminous coal mining, the Bituminous Mine Subsidence and Land Conservation Act requires a notice telling you that underground mining can cause the surface to sink and that your recourse may depend on who owns the coal rights below. Ask your agent or title company to confirm whether the notice applies and whether subsidence insurance is available.

    You'll need

    • Coal subsidence notice (if applicable)

    Cost: $0

Phase 4 of 7 · typically 10-15 days from acceptance

Inspection

Use your inspection window to learn the real condition of the house and decide whether to ask for repairs, credits, a price drop, or to walk away. PA does not require radon testing, but the home does.

  1. Hire a qualified home inspector

    InspectorWithin the inspection contingency window in the Agreement of Sale

    Schedule a general home inspection right after the contract is signed so results come back inside your contingency window. A good inspector spends 2-4 hours on site and gives you a written report with photos. Walk through with them at the end if you can; you will learn more in that hour than in the report itself.

    You'll need

    • Inspector's signed agreement

    Cost: $400-700 typical

  2. Order a radon test

    InspectorDuring the inspection window

    Pennsylvania's geology gives it about twice the national average radon risk. The EPA action level is 4 picocuries per liter. Anyone testing for pay must be certified under the PA Radon Certification Act. If results come back high, mitigation systems usually run a few thousand dollars, which can become a negotiation point.

    You'll need

    • Radon test report

    Cost: $150-300 typical

  3. Order any specialty inspections you need

    InspectorDuring the inspection window

    Depending on the property, you may want a separate inspection for the sewer line, septic system, well water quality, pests, chimney, oil tank, mold, or roof. These usually are not part of the general inspection. Older Pennsylvania homes especially benefit from a sewer scope.

    Cost: Varies ($150-600 each typical)

  4. Review inspection results and negotiate

    Your agentWithin the inspection contingency deadline

    Read the report end to end with your agent and split issues into 'safety', 'major systems', and 'cosmetic'. You can ask the seller to repair items, give a credit at closing, drop the price, or you can withdraw under your inspection contingency if the contract allows. Get every change in writing as an addendum to the Agreement of Sale.

    You'll need

    • Inspection reports
    • Repair request addendum

    Cost: $0

  5. Check the PA Megan's Law sex offender registry for the area

    YouDuring the inspection window

    PA does not require an agent or seller to research or disclose registered sex offenders nearby. If this matters to you, search the address on the Pennsylvania State Police Megan's Law site yourself. The registry is free and updated regularly.

    Cost: $0

Phase 5 of 7 · typically 3-5 weeks

Loan & Appraisal

Your lender finishes underwriting and orders an appraisal to confirm the home is worth what you agreed to pay. Respond fast to anything they ask for so the loan closes on time.

  1. Submit your full loan application

    LenderWithin a few days of going under contract

    Send your lender the signed Agreement of Sale and any updated pay stubs, bank statements, and tax documents they ask for. Avoid opening new credit cards, financing furniture, or changing jobs until after closing because any of those can change your approval.

    You'll need

    • Signed Agreement of Sale
    • Updated pay stubs
    • Updated bank statements
    • Tax returns

    Cost: $0 (application fees vary by lender)

  2. Lock your interest rate

    LenderSoon after going under contract

    Once you are under contract you can lock your rate with the lender for a set window, often 30 to 60 days. A lock protects you if rates rise but limits your benefit if they fall. Ask the lender about float-down options and exact lock expiration so you do not get caught past the deadline.

    You'll need

    • Rate lock confirmation

    Cost: $0 (some lenders charge a fee for longer locks)

  3. Wait for the appraisal and review the result

    LenderUsually 1-3 weeks after loan application

    Your lender orders an independent appraiser to confirm the home's value. If the appraisal comes in at or above your offer, the loan moves ahead. If it comes in low, you can renegotiate the price, bring extra cash to close the gap, dispute the appraisal, or walk away if your contract has an appraisal contingency.

    You'll need

    • Appraisal report

    Cost: $500-700 typical

  4. Get a homeowner's insurance binder

    You2-3 weeks before closing

    Lenders require proof of insurance before closing. Get quotes from a few carriers, decide on coverage limits and deductibles, and have the binder sent directly to your lender. If the home is in a flood zone you will likely need a separate flood policy.

    You'll need

    • Homeowner's insurance binder
    • Lender contact info

    Cost: Varies (typical first-year premium $1,000-2,500)

  5. Respond quickly to underwriter conditions

    YouThroughout underwriting until 'clear to close'

    Underwriters almost always ask follow-up questions: explain a deposit, document a gift, clarify a job change. Reply same-day with the exact format they ask for. Slow responses are the most common reason closings get pushed.

    You'll need

    • Whatever the underwriter requests

    Cost: $0

Phase 6 of 7 · typically 1 week

Pre-Closing

Final paperwork, the walk-through, and lining up the cash you need to bring. The Closing Disclosure is the single most important document to read carefully in this stretch.

  1. Review the Closing Disclosure (CD) at least 3 business days before closing

    LenderAt least 3 business days before closing

    Federal law requires lenders to deliver the Closing Disclosure to you at least three business days before settlement. Compare it line by line against your most recent Loan Estimate. Question anything that changed, especially the loan amount, interest rate, monthly payment, and total cash to close.

    You'll need

    • Closing Disclosure
    • Most recent Loan Estimate

    Cost: $0

  2. Confirm whether your closing uses a title company or attorney

    Escrow / title1-2 weeks before closing

    Pennsylvania does not require an attorney to close. In southeastern PA and the Philadelphia metro, title companies handle most closings. In western PA around Pittsburgh, an attorney often runs settlement. Ask your agent which is normal in your county and whether you want or need an attorney involved.

    Cost: Attorney fees, if used: $500-1,500 typical

  3. Do the final walk-through

    Your agentWithin 24-48 hours before closing

    Within 24-48 hours of closing, walk the home one more time with your agent. Check that any agreed repairs are done, the appliances that should stay are still there, the home is in the same general condition as when you offered, and there are no new issues. Document anything wrong with photos and call your agent before signing at closing.

    You'll need

    • Repair receipts (if seller did work)
    • Inspection report

    Cost: $0

  4. Wire your closing funds safely

    You1-2 days before closing

    Most title companies and attorneys require a wire for cash to close. Wire fraud is one of the most common scams in real estate. Always call the title company or attorney's office at a phone number you got in person or from their official website to verify wire instructions before sending money. Never trust wire instructions sent only by email.

    You'll need

    • Verified wire instructions
    • Closing Disclosure showing cash to close

    Cost: Bank wire fee: $20-50 typical

Phase 7 of 7 · typically 1-2 hours at the table

Closing

Sign the documents, pay the PA realty transfer tax, and walk out with the keys. Hold onto your closing packet because you will need it for taxes and any future sale.

  1. Bring valid ID and proof of cleared funds

    YouOn closing day

    Show up with a current government photo ID such as a driver's license or passport. If you wired your closing funds, bring the wire confirmation. If you are bringing a cashier's check instead, confirm the exact amount with the closing office that morning because numbers can shift up to the last minute.

    You'll need

    • Government-issued photo ID
    • Wire confirmation or cashier's check

    Cost: $0

  2. Review and sign the closing documents

    Escrow / titleAt the closing table

    You will sign a stack of documents including the deed, mortgage note, mortgage, closing disclosure, and various affidavits. Read titles before signing and ask the closing officer to explain anything you do not understand. The numbers on the final settlement statement should match the Closing Disclosure you reviewed earlier.

    You'll need

    • Closing Disclosure
    • Photo ID

    Cost: $0

  3. Pay your share of the PA realty transfer tax

    Escrow / titleAt closing

    Pennsylvania's realty transfer tax is 2% of the sale price in most of the state, split as 1% to the Commonwealth and 1% to the local taxing jurisdiction. Philadelphia is the big exception with a combined city plus school district rate around 3.278% on top of the 1% state share. Who pays which half is negotiable in the contract; in most PA deals it is split 50/50 between buyer and seller.

    You'll need

    • Settlement statement

    Cost: Buyer's share typically 1% of purchase price (higher in Philadelphia)

  4. Get your keys and a copy of the recorded deed

    Escrow / titleAt or shortly after closing

    Once funds are disbursed and the deed is recorded with the county recorder, the home is officially yours. You will get the keys at or shortly after closing depending on what the contract says. Your recorded deed will arrive by mail in the weeks after closing.

    Cost: Recording fees included in closing costs

  5. Save your full closing packet

    YouRight after closing

    Keep your signed closing documents, Closing Disclosure, deed, title insurance policy, inspection reports, and disclosures somewhere safe (paper and digital copies). You will need them for tax filings, future refinancing, and when you eventually sell. Your broker is also required to keep transaction records for at least three years, but always keep your own copy.

    You'll need

    • All closing documents

    Cost: $0

Sources

  1. [1] DOJ - Real Estate Antitrust Guidance
  2. [2] 49 Pa. Code §35.331 - Buyer Agency Agreements
  3. [3] NAR Settlement FAQs - Practice Change Requirements
  4. [4] 49 Pa. Code §35.331 - Written Buyer Agreements
  5. [5] NAR Settlement FAQs - Compensation Structures
  6. [6] NAR Settlement - MLS Practice Changes FAQ
  7. [7] Bituminous Mine Subsidence and Land Conservation Act - 52 P.S. §§1406.1-1406.21
  8. [8] PA DEP - Bureau of Mining Programs
  9. [9] 49 Pa. Code §35.286 - Retention of Documents
  10. [10] 49 Pa. Code §35.314 - Disclosure of Dual and Designated Agency
  11. [11] 49 Pa. Code §35.292 - Duties of Licensees Acting as Transaction Licensees
  12. [12] PA Department of Revenue - Realty Transfer Tax
  13. [13] Uniform Condominium Act - 68 P.S. §3402 and §3407
  14. [14] 49 Pa. Code §35.336 - Consumer Notice
  15. [15] RELRA §606.1 - Consumer Notice Requirement
  16. [16] 49 Pa. Code §35.321 - Escrow Requirements
  17. [17] Uniform Planned Community Act - 68 P.S. Chapter 51, §5407
  18. [18] EPA - Real Estate Disclosures About Potential Lead Hazards
  19. [19] HUD - Lead Disclosure Rule
  20. [20] PA Megan's Law - PA State Police Sex Offender Registry
  21. [21] PAR Standard Forms - Agreement of Sale
  22. [22] 49 Pa. Code §35.286 - Record Retention
  23. [23] PA Radon Certification Act - 63 P.S. §§2101-2116
  24. [24] PA DEP - Radon Division
  25. [25] PA Department of Revenue - Realty Transfer Tax
  26. [26] City of Philadelphia - Realty Transfer Tax
  27. [27] Real Estate Seller Disclosure Law - 68 P.S. §§7301-7314

Last updated May 15, 2026