The price on a contract is not the money you walk away with. In Philadelphia the gap between the two is wider than in most places, mainly because of the city's transfer tax. Before you compare offers or decide whether to list, it helps to know every line that comes out of the sale price.
Realty transfer tax: 4.578% total
Philadelphia raised its share of the realty transfer tax from 3.278% to 3.578% effective July 1, 2025. Add Pennsylvania's 1% and the total is 4.578% of the sale price. Outside the city, most of the state pays a combined 2%. In Pennsylvania the transfer tax is customarily split between buyer and seller, so a seller often pays about half, but the sale contract decides. On a $200,000 sale, the full tax is about $9,156, so the seller's customary half would be roughly $4,578.
Liens, taxes and water
Before closing, the title company pulls certifications for real estate taxes and water and sewer charges, plus any other city liens. Anything owed is paid from your proceeds. Real estate taxes are also prorated: Philadelphia bills the full calendar year, so if you already paid this year's bill, you may get a credit back from the buyer for the months after closing. If you are behind, the arrears come out of your side.
Commissions and concessions on a listing
If you list with an agent, expect a listing commission and possibly a buyer-agent commission, depending on what you negotiate after the 2024 changes to how buyer-agent pay works. Financed buyers also usually inspect, and many come back asking for repairs or a credit. An older rowhome with knob-and-tube wiring, an old roof or a wet basement is likely to get that request.
Repairs and carrying costs
Every month a house sits, you pay taxes, insurance, utilities and any mortgage. If you fix it up first, you pay contractors and permits up front, and repairs on older city houses often run over budget. Write down a realistic monthly number and multiply by how long you expect the house to take to sell. For many Philadelphia sellers, this is the cost they underestimate most.
Comparing a cash offer
To compare, take the likely list price and subtract commissions, your share of transfer tax, repair credits and months of carrying costs. Then compare that to a cash offer's net, which should have no commission and no repair list. Ask any cash buyer to show the transfer tax split in writing. We put every cost on paper so you can run the comparison yourself.