How to Buy a House in Delaware
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$406,448
Closing Costs
$22,044
5.42% of price
Property Tax Rate
0.5%
$1,600/yr median
Days on Market
40
Median
FHA Loan Limit
$472,030
Attorney Required
Yes
Foreclosure Type
Judicial
Transfer Tax
3%
3% (split buyer/seller)
Delaware punches above its weight for homebuyers, offering no sales tax, moderate property taxes, and a tax-friendly retirement environment that keeps demand steady across age groups. The state's compact size means that virtually any home gives reasonable access to both Philadelphia and Baltimore employment centers, making it a popular choice for commuters priced out of those metro areas. Delaware uses an attorney-at-closing model and has a particularly notable real estate transfer tax structure — the total transfer tax of 4% is one of the highest in the nation but is typically split between buyer and seller. First-time buyers purchasing below $400,000 get a reduced rate, which provides meaningful relief on the state's most significant closing cost.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Delaware
- ✓Highest closing costs as percentage due to 3% transfer tax
- ✓Attorney required at closing
- ✓No general homestead exemption
- ✓Low property tax rate at 0.57%
The Home Buying Process in Delaware
Buying a home in Delaware follows a 10-step process. As an attorney state, you'll need legal representation at closing.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Delaware
DSHA Preferred Plus
Down payment and closing cost assistance
Cost of Buying a Home in Delaware
| Down Payment (3.5% FHA) | $14,226 |
| Down Payment (20% Conventional) | $81,290 |
| Average Closing Costs | $22,044 |
| Transfer Tax | $12,193 |
| Annual Property Tax (est.) | $2,032/yr |
Legal & Regulatory Details in Delaware
Homestead Exemption
Not Available
Licensing Authority
Delaware Real Estate Commission
Delaware Real Estate Law Overview
| Conveyance Document | Special-warranty, quitclaim and general-warranty deeds |
| Security Instrument | Mortgage |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | Yes |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | No |
| Seller Disclosures | Sellers must disclose known material defects, including lead-paint hazards, pest infestations, and toxic substances such as asbestos, radon and mold, along with major repairs and remodeling. |
