Whether you are buying your first home in Greenville or selling a house in Spartanburg, closing costs are one of the most common questions I hear. These are the fees and expenses due at the closing table on top of the purchase price, and knowing what to expect makes budgeting much easier.
How Much Are Closing Costs for Buyers?
Buyer closing costs are often estimated at roughly 2% to 5% of the loan amount, but the real number depends on your loan type, lender, purchase price and the terms you negotiate. Your lender is required to give you a Loan Estimate shortly after you apply and a Closing Disclosure at least three business days before closing, so you can review every fee in advance.
Common Buyer Costs
- Lender fees: origination, underwriting and processing charges
- Appraisal: ordered by your lender to confirm the home's value
- Closing attorney fee: South Carolina closings are handled by a real estate attorney
- Title search and owner's and lender's title insurance
- Recording fees for the deed and mortgage
- Prepaid items: homeowners insurance, property taxes and interest held in escrow
- Home inspection and any specialty inspections, usually paid before closing
What Do Sellers Pay?
Sellers in South Carolina typically cover a few standard items, though everything is negotiable in the contract:
- Deed recording fee: South Carolina charges a deed recording fee (often called a transfer fee) based on the sale price, currently $1.85 per $500 of value, which is customarily paid by the seller
- Mortgage payoff for any existing loans
- Real estate commission as agreed in your listing agreement
- Seller attorney fees for deed preparation
- Prorated property taxes through the day of closing
- Any agreed repairs or buyer concessions
Can Closing Costs Be Negotiated?
Yes. Buyers sometimes ask the seller to contribute toward closing costs, especially when they want to keep more cash in reserve. Sellers may agree when it helps a sale move forward. Loan programs set limits on seller contributions, so your lender should confirm what is allowed for your loan.
Tips to Prepare
- Ask your lender for an early Loan Estimate and compare offers.
- Keep extra savings for prepaid items and moving expenses.
- Review your Closing Disclosure carefully and ask questions before closing day.
- Sellers can request a net sheet before listing to estimate their proceeds.
Thinking about buying or selling in the Upstate? I am happy to walk you through estimated costs for your situation. You can also learn more in our First-Time Home Buyer Guide or see what your home could sell for with our Home Comps Analysis.
This article is general information, not legal, tax or lending advice. Fees and rates change, so confirm current figures with your lender and closing attorney.
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