Closing cost is one of the factors you need to consider when purchasing or selling a home in Charleston, South Carolina. These fees are the major upfront outlay for purchasers after the down payment, and sellers foot the bill for the majority of the agent commissions.
When you're negotiating, it's critical to know how much money you'll have to spend. Make sure you aren't caught off guard when closing approaches. Continue reading to learn more about Charleston's closing costs.
Cost of Closing at a Glance
But first, let's look at what Charleston and the rest of the country charge for average closing costs.
There are thousands in expenses involved with a mortgage, ranging from 2 percent to 5 percent of the loan's principle, which is referred to as
closing costs. Different states have different closing cost components. The borrower has the option of negotiating several closing-related things.
A number of criteria go into determining the exact amount you'll be required to pay. To give you an idea of what to expect, the typical total closing costs on single-family homes in the United States in 2019 were $5,749, including taxes.
When it comes to closing costs, there are generally two types to choose from two types of fees: Property-related and Mortgage-related.
Fees Related to the Property
If you're borrowing money to buy a house, your lender will analyze the property you're financing and consider the following:
* Appraisal fee
* Inspection fee
* Title search
* Title insurance
Fees Related to the Mortgage
All of the following charges are included in these fees:
* Credit report fee
* Origination fee
* Application fee
* Underwriting fee
* Local fees
* Legal fees
Buyer Closing Costs
The charges associated with the mortgage constitute the largest component of the closing costs for buyers . . .
* Title Insurance – Protects the buyer in the event that liens or clouds are placed on the property after the sale has been completed
* Mortgage preparation – Mortgage loan origination and drafting fees paid to the lender
* Buyer’s consents – Includes things like inspections
* Homeowners insurance – A percentage of the premiums has to be paid at the time of closing.
* Notary fees – Make sure to evaluate closing documents when signed anywhere other than an escrow office
* Government recording fees – For deed and mortgage recording at the appropriate Bureau of Conveyances
* Escrow and title document preparation fees – Typically split 50/50 by buyer and seller
* HOA dues – Usually, two months’ worth of prepaid dues
Seller Closing Costs
Sellers are normally responsible for these expenses . . .
* Mortgage loan payoff – To be fully reimbursed at the end of the transaction
* Agent commissions – Typically, the seller bears this cost, but buyers aren't exempt from it either
* Transfer taxes/recording fees – Inflicted by state or local authorities as a condition of transferring ownership
* Escrow fees – To the title company for conducting and producing papers in connection with the title search
* Attorney fees – Indemnified by the settlement of legal fees
* Survey fees – Verifying borders and looking for encroachments is most common for single-family homes
* Liens/judgments – Unpaid HOA dues and/or prorated property taxes are common sources of liens, and they are often included in the settlement fees
Closing Costs in South Carolina and Charleston
Closing expenses in South Carolina and Charleston vary widely depending on a number of factors, including the lender, the market, and the property's kind and price. But here's an idea of what you might anticipate paying in general:
Buyer Costs
* “Closing attorney: Varies
* Title search: $300
* Title insurance
* Appraisal fee: $200 to $400
* Property inspection fee: $300 to $700
* Recording fee: Usually $10 for the first page; $8.50 for additional pages
* Origination fee
* Surveying fee: $200 to $800 based on the size of land
* Settlement fee: $200
* Property tax: Prorated at closing
* Condo/HOA fees (if applicable): Prorated at closing
* Flood certification: $10
* Credit report: $25
* Recording of the mortgage (deed of trust) fee: $35
* Homeowners insurance
* Mortgage insurance — if the down payment is less than 20%
* Archive and courier fee: $50 to $100
* Miscellaneous condo fees: Varies”
Seller Costs
* “Broker fees: Usually 6% of sales price
* Own attorney: Varies
* Title insurance on buyer:
-$2.75 per $1,000 up to $100,000
- $1.75 per $1,000 up to $100,000
* Deed recordation tax: $2.60 per $1,000 of sales price
* State deed stamps: $1.10 per $1,000 of sales price
* Property tax (if applicable): Prorated at closing
* Document preparation fee: $150 to $250
* Recording fees: Usually $10 for the first page; $8.50 for additional pages
* Mortgage payoff: Subject to loan balance
* Courier and wire transfer fee: $20 to $50
* Condo/HOA fees (if applicable): Prorated at closing
* Miscellaneous condo fees: Varies”
Special Closing Considerations for South Carolina and Charleston
Closing costs in South Carolina range from 1.09% to 1.66% of the purchase price, which is significantly less than the national average.
The typical home costs between $200,000 and $300,000 to buy and sell. Closing costs for a home in that price range will range between $2,480 and $3,720. (before taxes). The costs include closing attorneys and title insurance, as well as property inspection, appraisal, and origination services.
Some homeowners may also be required to pay for mortgage insurance, flood certification, or post HOA or condo fees on top of their regular mortgage payments. Taxes are non-negotiable, but many other costs are. South Carolina levies property and transfer taxes, just like the rest of the country. To sum it up: after taxes, you should anticipate paying roughly $3,269 for closing costs.
That appears to be a significant sum of money to be out there. The cost of closing in Charleston and South Carolina, on the other hand, is extremely low. In fact, the state ranks 41st in the nation for these prices, even before taxes are deducted.
The Agent Advantage
The real estate market in Charleston, South Carolina, is flourishing right now. The fact that closing costs in Charleston are only on average 1.17% of the purchase price makes it clear that buying or selling a house in Charleston right now is a wise option.
Even so, your best bet is to work with a seasoned local agent. A small amount of money in closing expenses can add up to a lot when properties sell for more than $200,000. A qualified local agent can assist you in negotiating a better offer. So don't take a chance.
You should only engage with a leading agency that has a devoted team of experienced real estate agents who have worked in Charleston, SC, and the surrounding areas for many years.
Check out the original blog post at https://desirablecharlestonhomes.com/
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If you require a Buyer's Agent to represent you during your transaction, please feel free to contact our office at 843-400-3032. We would be glad to work with you to get the best deal possible for your transaction.
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POSTED BY:
Riverland Realty
843-400-3032
1 Henrietta Street,
Suite A Charleston, SC 29403
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