The final stage of a home sale is the closing process. During closing, also called settlement, the buyer receives the deeds, and the seller receives the payment. Both parties sign the final documents to officialize the real estate transaction.
On the same day, certain fees and charges are due – the closing costs. These costs can vary, depending on state laws and the property’s purchase price.
In this article, we are going to take a closer look at the closing costs in South Carolina.
What Are Closing Costs?
Closing costs are the fees and expenses associated with finalizing a real estate transaction, such as the sale of a house in South Carolina and transferring the ownership of a property from the seller to the buyer.
These costs can include fees and charges such as loan origination fees, legal fees, title insurance costs, and more. The distribution of these costs can vary depending on what state you’re in. In many cases, who pays for what is negotiable.
Average Closing Costs in South Carolina
Before we delve into the breakdown of closing costs for buyers and sellers, let us first answer this common question, “How much are closing costs in SC?”
The average closing costs in SC for buyers range between 2% to 5% of the home’s purchase price. For sellers, closing costs amount to approximately 8% to 10% of the home’s agreement value.
In 2024, the average home value in South Carolina is $294,353. Based on this figure the average closing costs for buyers ranges from $5,887.06 to $14,717.65. On the other hand, the closing costs for sellers may range between $23,548.24 to $29,435.30.
Breakdown of Closing Costs for Buyers
When buying a real estate property in South Carolina, buyers need to account not only for the home purchase price but for closing costs as well.
The following are closing costs for buyers in South Carolina:
Lender Fees
If you’re financing your home purchase with a mortgage, your lender will likely charge a variety of fees related to your home loan.
Title Search Fees
A title search ensures the property does not have any liens or ownership issues.
Appraisal Fee
Lenders require an appraisal of the home to make sure that it is worth at least the amount they’re lending the buyer.
Home Inspection Fee
A home inspection is not required by lenders, but it allows buyers to identify minor problems before they become worse. Also, any issues found might help you negotiate on either price or concessions.
Attorney Fees
South Carolina is one of 22 states that legally require homebuyers to hire a real estate attorney. This particular cost can range widely depending on the details of your individual transaction.
Breakdown of Closing Costs for Sellers
For home sellers in South Carolina, knowing which closing costs you are obligated to pay is vital in setting realistic expectations.
Below are some of the typical closing costs for home sellers in South Carolina:
Agent Fees
A real estate agent’s commission fee ranges between 2.5% and 3% of the home’s sale price. On an average-priced South Carolina home, this translates to $7,358.82 to $8,830.59.
Title Insurance
While the buyer usually covers the title insurance for their lender, South Carolina sellers may pay title insurance costs for the buyer, depending on their agreement.
Transfer Tax
The state’s transfer tax is levied at a rate of $1.85 for every $500 in home value. For an average-priced SC home, that comes to $1,089.10.
Ongoing Property Fees
Home sellers are required to pay for property taxes and HOA fees (if applicable) right up until the day the real estate transaction closes.
Attorney Fees
While South Carolina does not require sellers to hire an attorney, you may choose to do so to ensure your interests are protected.
Who Pays Closing Costs in South Carolina?
Another important question, whether you’re buying or selling a home, is, “Who pays closing costs in SC?”
In South Carolina, both the buyer and seller pay certain closing costs at the end of the real estate transaction in South Carolina.
Seller closing costs are typically higher as sellers pay the realtor commission. Other fees, like documentation charges and transfer fees, are shouldered by the buyer.
It is important to note that some closing costs are negotiable, while others are non-negotiable, like taxes charged by the state or local jurisdiction.
Conclusion
Buying or selling a home in South Carolina involves fees and charges called closing costs that must be paid apart during the settlement of the real estate transaction. Consulting a real estate professional ensures that you have sufficient funds to cover these costs.
If you need help with your home sale or purchase, please contact our team today at 843-310-6339. You may also send us an email at info@sequelsc.com to schedule an appointment.
Frequently Asked Questions
Can I negotiate closing costs?
Yes, some closing costs are negotiable, while others are non-negotiable, like taxes charged by the state or local jurisdiction.
Can closing costs be rolled into the mortgage?
Yes, buyers may opt to roll their closing costs into their mortgage, but it depends on your lender. This process is called “rolling in” the costs.
Why are closing costs higher for sellers in South Carolina?
In South Carolina, sellers pay higher closing costs because they shoulder the realtor commission, which ranges between 2.5% and 3% of the home’s sale price. On an average-priced South Carolina home, this translates to $7,358.82 to $8,830.59.