Average closing costs in South Carolina

The sultry charm of Charleston, the pristine beaches of Hilton Head, and the vibrant green landscapes of South Carolina captivate hearts and call for new beginnings. But before you settle into your Carolina dream home, understanding closing costs is crucial for a smooth transition. Fear not, future South Carolinian! This guide will equip you with the knowledge to navigate the closing cost maze and confidently plant your roots in the Palmetto State.

I. Unveiling the Hidden Dunes:

Closing costs, those essential but often overlooked expenses beyond the purchase price that finalize the property transfer, can be a bit of a hidden beachcomber’s treasure. In South Carolina, these costs can range from 2% to 5% of the purchase price, with an average of $3,160 for sellers and $1,220 for buyers according to ClosingCorp and Houzeo.

Several factors influence your final closing cost, including:

  • Seller vs. Buyer: Buyers typically have lower closing costs due to different fee structures.
  • Property type: Condos and townhouses generally have lower closing costs than single-family homes.
  • Property location: Costs can vary by city, county, and even neighborhood.
  • Loan type: FHA loans generally have higher closing costs than conventional loans.
  • Down payment amount: A larger down payment reduces the loan amount and associated closing costs.
  • Negotiation: Certain fees may be negotiable with the seller, lender, or service providers.

II. Exploring the Hidden Coves:

Let’s break down the common closing costs you might encounter in South Carolina:

For Sellers:

  • State conveyance tax: 0.5% of the purchase price, paid to the state for recording the property deed.
  • County real property tax prorations: Covering the remaining portion of the year based on the closing date.
  • Real estate commissions: Typically 6% of the purchase price, divided between the listing and selling agents.
  • Homeowner’s association (HOA) closing fees: Applicable for properties in communities with shared amenities.
  • Outstanding liens or judgments: Must be satisfied before the property can be sold.

For Buyers:

  • Origination fees: 0.5-1% of the loan amount, covering the lender’s processing costs.
  • Appraisal fees: $400-$600, for a professional assessment of the property’s value.
  • Underwriting fees: $300-$500, to evaluate your creditworthiness and loan risk.
  • Credit report fees: $25-$50, for obtaining your credit history.
  • Title insurance: Protects the lender’s interest, typically costing 0.5-1% of the purchase price.
  • HOA fees: Applicable for condos or communities with shared amenities.
  • Prepaid costs: Property taxes, homeowner’s insurance, and interest payments prorated based on the closing date.

Other potential fees:

  • Survey fees: $300-$500, to verify property boundaries and avoid encroachments.
  • Attorney fees: Optional, but recommended for complex transactions, typically ranging from $500 to $1,500.
  • Courier fees: For document delivery and processing, fees can vary depending on the service provider.

III. Mastering the Palmetto Trails:

Understanding these factors is key to minimizing your closing costs:

  • Sellers: Negotiate your real estate commission and consider offering buyer credits to cover closing costs.
  • Buyers: Shop around for lenders and compare closing cost estimates.
  • Both: Consider a larger down payment, negotiate certain fees, and explore first-time homebuyer programs or down payment assistance options.

IV. Cost-Saving Strategies for Savvy Carolinians:

Be proactive and utilize these strategies to trim your closing cost driftwood:

  • Get pre-approved: Lock in interest rates and avoid potential cost adjustments.
  • Negotiate like a pro: Don’t be afraid to negotiate certain fees, especially in a buyer’s market.
  • Ask for lender credits: Based on your creditworthiness or loan type, you might qualify for credits.
  • Compare and contrast insurance quotes: Don’t settle for the first option, shop around for the best deal on homeowner’s insurance.

V. Finding Your Carolina Paradise:

Closing costs may seem like a hidden riptide, but with knowledge and proactive strategies, you can navigate the South Carolina terrain and confidently claim your perfect Palmetto State paradise. Remember, research, comparison, and negotiation are your friends! Consult with a local financial advisor or real estate agent for personalized guidance and a smooth closing experience.


Q: What are the average closing costs in South Carolina?
A: The average closing costs in South Carolina typically range between 1% and 3% of the home’s purchase price.

Q: What factors contribute to the closing costs in South Carolina?
A: Several factors contribute to the closing costs in South Carolina, including lender fees, attorney fees, title insurance, appraisal fees, recording fees, and transfer taxes.

Q: How can I estimate my closing costs in South Carolina?
A: To estimate your closing costs in South Carolina, you can use online calculators or consult with your lender or real estate agent, who can provide a clearer estimate based on the specific details of your transaction.

Q: Are there any specific regulations or laws associated with closing costs in South Carolina?
A: Yes, South Carolina has specific regulations regarding closing costs. For instance, there are limits on some fees that can be charged and requirements for certain items to be paid by sellers or buyers.

Q: Can I negotiate the closing costs in South Carolina?
A: Yes, you can negotiate the closing costs in South Carolina. It’s recommended to compare quotes from different lenders, shop around for services, and negotiate with the professionals involved to potentially lower your closing costs. However, keep in mind that some fees may be non-negotiable.

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