click to read : For many homebuyers, closing costs represent one of the largest out-of-pocket expenses that comes with purchasing a property. In South Carolina, there is a specific set of closing costs you should expect and plan for when buying a home.
What are Closing Costs?
In simple terms, closing costs are fees charged by lenders, real estate agents, and various other parties involved in the transaction on account of services rendered during the purchase of your home. These can include anything from loan origination fees, title insurance, appraisals and surveys, attorney fees, and taxes.
How Much Are Closing Costs in South Carolina?
It’s impossible to assign a precise dollar amount to closing costs before entering into a sale agreement. Homebuyers typically pay anywhere between 2% to 5% of their home’s purchase price in associated fees and charges. According to national averages, however, the average home closes at a rate of 4-5% of their total purchase price.
As an example, if a homeowner purchased a house for $250,000, they can expect to pay around $11,250-$13,125 in closing costs associated with the sale. It’s important to note, however, that these are estimated figures — your actual closing cost will depend on several factors such as the lender, type of property, and prevailing market conditions.
What Are Common Closing Costs in South Carolina?
South Carolina closing costs usually include the following:
- Attorney fees: Homebuyers in South Carolina typically need to hire a lawyer to handle the paperwork associated with their real estate transaction. Attorneys typically charge a flat fee of around $800-$1,200.
- Home inspection costs: A professional home inspector will check for any structural concerns with the home. Home inspection fees vary based on the size of the home, but typically don’t exceed $500.
- Title transfer fees: Title companies in South Carolina charge a fee for transferring the deed to the buyer. This charge typically doesn’t exceed $600.
- Prepaid escrow items: Homeowners must complete a number of prepaid items prior to closing on their property, including property taxes and homeowner’s insurance premiums. The fees for these items vary depending on each particular situation.
Are There Options To Reduce Closing Costs?
There are a few steps homebuyers in South Carolina can take to reduce their closing costs and get an edge over the competition. First, borrowers should shop around to compare lenders and find the best deals available. Additionally, some lenders may agree to cover certain closing costs in exchange for a slightly higher interest rate. Lastly, buyers should take advantage of all vendor discounts possible. Negotiating prices with your chosen title company and lawyer could result in huge savings, so it pays to ask.
Buying a home involves more than just saving up for the down payment. Unfortunately, unexpected closing costs can add up quickly and create an insurmountable obstacle for some homebuyers. Being aware of closing costs in South Carolina and having a plan to manage them effectively can go a long way in preventing any last-minute surprises when signing on the dotted line.