If you’re planning to buy your first condominium in Center City Philadelphia, here’s a realistic look at the costs you should expect to pay at closing. These can easily be anticipated well before settlement. Understanding them early simply helps you shop more confidently.

2301 Cherry Street View - Rivers Edge Condos

1. Your Down Payment

The down payment is usually the largest upfront expense. Depending on your loan program, it may be as little as a few percent of the purchase price or considerably more, depending on factors such as building requirements and your credit score.

For example, on a $400,000 condominium:

  • 5% down = $20,000
  • 10% down = $40,000
  • 20% down = $80,000

Your lender can help you determine which option best fits your financial goals.

2. Closing Costs

In addition to your down payment, buyers should budget for closing costs. These typically include lender fees, title insurance, recording fees, and other expenses associated with completing the transaction.

With some information from your lender, we can usually provide you with a good estimate early in the process, allowing you to plan ahead.

3. Transfer Tax

Philadelphia real estate transactions include transfer tax fees. The fees are paid at settlement and are split evenly between the buyer and seller at closing. This is a standard part of buying property.

*Note: Title insurance and Transfer tax are based on the sales price and are regulated by the City/State.

4. Condo Fees

Every Philadelphia condominium building collects a capital contribution fee from every new buyer. This fee is usually equal to 2 or 3 months of condo fees, and it goes straight into the reserve fund for the building (which is a good thing!) Some buildings also charge move-in fees or elevator deposits that are due at closing. 

Here are Some Rough Examples:

A $250,000 condo with 20% is going to roughly cost you $65,000 to purchase.
Monthly payments will be $1950+/- (assuming $400/mo condo fees).

A $500,000 condo with 20% is going to roughly cost you $133,000 to purchase
Monthly payments will be $3900 per month+/- (assuming $800/mo condo fees

These are estimates. Actual costs will depend on a host of factors. The most influential factors will be the interest rate, condo fees, taxes, and amount you put down. Your mortgage broker will advise you on potential financing options, such as a variable-rate mortgage or an FHA mortgage, if applicable.

These costs vary from buyer to buyer and building to building, but are all worth considering in your overall budget.

MARK WADE, Realtor®
37 Years of Center City Condo Experience
BHHS Fox and Roach Realtors
530 Walnut St. #480 | Philadelphia, PA 19106
Cell: 267-237-3404
Email: Mark@CenterCity.com