Before investing in a Pennsylvania home, you'll want to take the time to determine what you can afford, the ideal neighborhood to live in, and what features you need or want. Also be aware of the legal issues involved in residential real estate transactions, such as required seller disclosures, what terms should go into purchase contracts, potential title defects, zoning issues, tax liability, and so on.
With proper preparation, careful choice of a real estate agent, and prudent use of other qualified professionals, buying a home in Pennsylvania should be a smooth, positive experience.
Are You Ready to Buy a Home in Pennsylvania?
The state of Pennsylvania offers a relatively cost of living, history and natural wonders, vibrant cities with popular sports teams, excellent colleges and universities, and great food, both traditional and ethnic.
That's why, despite ups and downs in the national housing market, the Pennsylvania market has remained strong, with home prices trending upward in 2024 (according to information from the Pennsylvania Realtors Association). The median price statewide was $305,00 in the second half of 2024. Unfortunately, the rising prices can make purchasing a home a challenge financially and otherwise, especially with the inventory of homes for sale low.
In order to compete with fellow would-be buyers, you'll want to start by researching your local market (as you're starting to do here), visiting homes to get a sense of what's available in your price range (allowing for possible bidding wars that take the selling price way over list), and getting your finances in order.
Have You Saved Up for a Down Payment?
Traditionally, home buyers put down up to 20% of the purchase price on a home. Lenders like to see that much (and are delighted to see more), because it reduces their risk if you stop making your monthly payments or otherwise default and they then have to foreclose.
You've probably been setting money aside for a down payment already, but now is the time to double down, and to avoid making major new purchases (particularly on credit). After all, 20% of a home priced at the median in Pennsylvania is about $61,000.
Pennsylvania also offers various homebuyer assistance programs, usually accessible via your county government.
Will You Need a Home Loan for the Purchase?
Assuming you'll need to take out a home loan (a mortgage) to purchase your Pennsylvania home, be sure to research what's available, including government-backed options. Also check on your credit report, which will be one of the first things a bank or other institutional lender looks at, to see whether you're a major risk. You can view your report for free through annualcreditreport.com). The next important step is to correct any mistakes you find there.
Next, consider consulting with a mortgage broker to see what price range of houses you'll qualify to borrow for. The broker can also help you obtain mortgage preapproval, which can be crucial if and when you're competing with other would-be buyers. You'll probably need to pay the broker a commission, in the 1% to 2% range, depending on the loan amount and other factors.
Particularly if money is tight, there's no shame in deciding to keep renting for now. Another factor is how settled your life is. As a broad rule, the upfront costs make buying a house financially risky unless you plan to stay in it at least five years. If you'd prefer to have the freedom to pick up and move, perhaps to attend school or accept a new (non-remote) job, now might not be the ideal time.
If you are ready to buy, though, you'll likely want to check in with prospective real estate agents, as described further below.
Where in Pennsylvania Do You Want to Buy?
Perhaps you already know you want to live in Philadelphia, Pittsburgh, or some other location. You might even have the precise neighborhood in mind. If not, a number of resources will allow you to narrow your search, ranging from simple online searches such as "Is X a good place to live?" to websites such as bestplaces.
Before getting overwhelmed by all the data, try creating a list of factors that are most important to you personally, such as:
- quality schools and universities
- gourmet or ethnic restaurants or groceries
- proximity to nature and culture
- excellent medical care
- coastal or inland location
- low crime levels, and
- thriving arts or crafts scene.
Many of these factors will increase your house's long-term value, too, thus making it a sound investment.
Working With a Real Estate Agent in Pennsylvania
A real estate agent can help you find your home and handle many of the complex procedures involved with its purchase. Some of the benefits of using real estates agent include their:
- knowledge of the community, comparable home prices, and market conditions
- access to information that will help you find properties meeting your needs and budget
- contacts with other professionals who can help you, such as home inspectors and mortgage brokers
- ability to help prepare a viable offer and handle other paperwork by scheduled deadlines, and
- role in negotiating the final deal.
Fortunately, working with a real estate agent might not cost you anything. Traditionally, the seller pays the entire real estate commission, around 5% to 6% of the house sale price, split between the seller’s agent and the buyer's agent. Although recent lawsuits might shake up this tradition, no major change has taken place yet.
Personal referrals from other home buyers are usually the best way to select a real estate agent. You can check licenses on the Pennsylvania real estate agents at the Pennsylvania Department of State’s website, and the website of the Pennsylvania Association of Realtors offers a "Find a Realtor" function. Online resources such as Zillow can also be helpful, as they give customer reviews of real estate agents.
Be sure the agent you choose has plenty of experience and good references.
Pennsylvania Seller Disclosure Statement Requirements
State law in Pennsylvania (68 Pennsylvania Statutes Section 7304) requires that home sellers provide buyers with lots of information about the property's physical condition (particularly any "material defects"), using a Seller’s Property Disclosure Statement form established by the Pennsylvania Real Estate Commission). The standard form covers such concerns as:
- property contents, such as specific appliances, and whether or not they need repair or replacement
- availability of working smoke detectors
- defects in the electrical, plumbing, and other property systems
- any homeowners’ association fees, deed restrictions, and
- other specified property details, such as the type of sewage system, when the roof shingles were replaced, whether the seller made structural additions to the property, and much more.
In addition, if you're buying a house that was built before 1978, the seller must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Seller disclosures are important for you as a buyer, since just looking at a property might not be enough to tell you what problems its owner encountered while living there. But not even the disclosures should be considered a complete guide to the property's condition. The seller could have become blind to some of the problems or entirely unaware of them (particularly concerning issues hidden within walls or the attic, or underground).
Importance of Getting a Home Inspection in Pennsylvania
Buyers should hire an independent home inspector to find out more about what sort of shape the property is in. Many buyers make their offer contingent upon a satisfactory inspection report that covers:
- termites and other pests
- soil settlement, drainage, and erosion issues
- conditions that could lead to mold
- foundation, walls, floors, and structural integrity, and
- condition of systems for heating and cooling, electricity, plumbing, and drainage, and
- other physical concerns, whether they're active or developing.
Virtually every house has repair issues, so don't look for a straight "pass" or "fail." The issues raised in the report most commonly become items for negotiation with the seller before the sale; or just alerts for you going forward with ownership of the home.
If you're in such a tight market that you're tempted to waive (go without) the inspection contingency so as to make your offer stand out, do what you can to protect your interests in other ways. For example, you might bring a contractor or friend with relevant knowledge and skills to your house visits, so you'll have some idea of what you're getting yourself into. Some home sellers also commission their own inspection report before putting the house on the market, but they might not have chosen the most nitpicky inspector out there, so read the report with a skeptical lens and research that inspector's reputation before staking your future on the results.
Real Estate Purchase Agreements in Pennsylvania
A purchase agreement is a legal document containing the terms and conditions of your real estate transaction. It must be in writing and signed by the parties (buyers and sellers).
When complete, it must include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property. Your real estate agent can provide you with the standard form used in Pennsylvania.
Title Issues in Pennsylvania
Your mortgage companies will likely require you to purchase a title insurance policy in connection with obtaining a mortgage. Its purpose is to protect against adverse claims by prior owners or lien holders or any other clouds on the title that turn up after the closing.
The title company will conduct a search before offering coverage. The search goes through public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that could affect the property. If the title search locates problems, you should require the seller to correct those as a condition to closing.
Working With a Lawyer in Pennsylvania
Unlike some states, Pennsylvania does not require that buyers involve a lawyer in the house-buying transaction. Even if it’s not required, you might decide to engage a lawyer at some point—for example, if you are buying property in a planned unit development with extensive CC&Rs or if you are purchasing a house jointly with others and need help structuring your co-buyer agreement. Or, you might want a lawyer’s help if problems show up during escrow or the house closing.
Check out our directory to find an experienced real estate attorney in Pennsylvania.