Are you trying to pin down who pays what at closing in Charleston? You are not alone. Closing costs can feel murky, especially when local customs and HOA fees enter the mix. This guide breaks down typical buyer and seller costs in Charleston, what is negotiable, and how to budget with confidence. Let’s dive in.
Closing costs at a glance
Closing costs are the fees, taxes, prorations, lender charges, title and settlement costs, and prepaids due at closing in addition to the price. Totals vary by loan type, price point, and contract terms. As a rule of thumb, buyers often pay about 2% to 5% of the purchase price. Sellers often pay about 6% to 10% when commission is included, or roughly 1% to 3% if you exclude the commission.
Your actual numbers will depend on timing within the tax year, whether the home is in an HOA or condo, and whether you negotiate concessions.
Buyer costs in Charleston
Most buyer charges relate to the loan and title process, plus prepaids and recording.
- Lender fees: origination, application, underwriting, processing, and any discount points.
- Appraisal and survey: the appraisal is often required by the lender; surveys vary by property.
- Credit report, flood certification, and any lender-required inspections.
- Title charges: title search and the lender’s title insurance policy; an owner’s policy is negotiable by local custom.
- Recording fees for the deed of trust or mortgage.
- Prepaids and escrows: initial homeowners insurance premium, property tax escrows, mortgage insurance prepaids if applicable, and prorated taxes from the closing date forward.
- Home inspections: general inspection plus specialized inspections if you choose them.
Buyer budget examples
These examples are illustrative. Verify your exact figures with your lender and closing attorney.
- As a percent of price: typically 2% to 5%
- On $350,000: $7,000 to $17,500
- Lender fees: about $500 to $3,000
- Appraisal: about $400 to $700
- Inspections: about $300 to $1,000
- Title search and lender’s policy: about $700 to $3,000
- Recording fees: often $50 to $500
- Prepaids/escrows: often $1,500 to $6,000
- On $600,000: $12,000 to $30,000 using the same categories and ranges scaled to price and loan terms
Seller costs in Charleston
For sellers, commission is usually the largest line item, followed by title or transfer charges, prorations, and any agreed credits.
- Real estate commission: commonly about 5% to 6% of the sale price, typically split between the listing and buyer brokers.
- Owner’s title insurance policy: who pays is negotiable by local custom.
- Closing attorney or settlement fees.
- Transfer or recording fees for the deed, subject to local practice.
- Prorated property taxes and utility adjustments up to the closing date.
- HOA transfer or resale fees and any outstanding assessments or fines.
- Payoff of existing mortgages or liens.
- Repairs or seller credits negotiated in the contract.
Seller budget examples
These do not include your mortgage payoff or any negotiated credits. Verify with your listing agent and closing attorney.
- Excluding commission: typically about 1% to 3% of the sale price
- On $350,000: $3,500 to $10,500
- Common items: owner’s title policy if customarily paid by seller, attorney fees, HOA transfer/resale fees, prorated taxes and utilities
- Including commission at 5% to 6%:
- On $350,000: commission of $17,500 to $21,000
- Combined estimated total: about $21,000 to $31,500 plus any negotiated credits
HOA and condo fees to expect
Many Charleston-area communities and condos charge administrative fees at resale. These often include:
- Resale or resale certificate: commonly $150 to $400, sometimes higher depending on the association.
- Transfer fee: typically $100 to $500, sometimes a flat fee or a small percentage.
- Estoppel certificate: often $100 to $300, sometimes bundled with the resale package.
- Prorated dues or assessments: split between buyer and seller based on the closing date.
- Special assessments: usually the seller’s responsibility to clear at closing if outstanding.
Order the resale or estoppel package early. Some boards require 10 to 14 business days to prepare these documents, which can delay closing if you wait.
Who pays what in Charleston
Local custom matters, and many items are negotiable. Here is what you will typically see.
- Buyer usually pays: loan costs, appraisal, lender’s title policy, inspections, deed of trust or mortgage recording, and prepaids such as insurance and tax escrows.
- Seller usually pays: real estate commission, prorated taxes through closing, owner’s title policy in some cases, deed transfer or recording charges depending on custom, HOA transfer fees, and any agreed repairs or credits.
- Negotiable: owner’s title policy and seller-paid buyer closing costs or rate buy-downs. These concessions can help a buyer qualify or smooth a deal.
Always rely on your contract for the final allocation. Your closing attorney and lender will reflect these details on the Closing Disclosure.
Taxes, title, and recording in Charleston County
A few Charleston-specific notes to keep on your radar:
- Recording fees: the county charges to record deeds and mortgages. Amounts are usually modest but vary by document type and page count.
- Transfer or deed stamp taxes: state and county charges may apply at recording. Who pays can depend on local practice and the contract.
- Title insurance: premiums follow state schedules and company rate filings. The owner’s policy and who pays it are often negotiated in our market.
- Closing attorneys: in South Carolina, attorneys commonly handle settlements. Fees vary by firm and complexity.
- Property taxes: taxes are prorated at closing. The amount depends on the assessed value, tax calendar, and whether prior bills are paid.
Confirm current figures with your closing attorney, lender, and the Charleston County offices. Rates and procedures can change.
How to plan your closing budget
Use these steps to avoid surprises and keep your transaction on track.
- Ask your lender for a Loan Estimate within three days of application; it outlines buyer charges and rate options.
- Review your Closing Disclosure at least three business days before closing to confirm final fees and who pays what.
- If you are selling, request a detailed seller net sheet from your listing agent with several commission and concession scenarios.
- If the property is in an HOA or condo, order the resale or estoppel package early and confirm transfer fees and timelines.
- Check tax timing with Charleston County and ask your attorney about prorations and any short-year settlements.
- Clarify title insurance responsibilities in your offer. Decide early who pays the owner’s policy.
When you want a steady hand on these moving parts, a local advisor can help you budget, negotiate, and close smoothly.
Ready to talk through your numbers and strategy in Charleston? Schedule a Free Consultation with Jack Huguley to get a clear plan tailored to your purchase or sale.
FAQs
What are typical buyer closing costs in Charleston?
- Buyers often pay about 2% to 5% of the purchase price, including lender fees, appraisal, title charges, recording, inspections, and prepaids.
How much do sellers usually pay at closing in Charleston?
- Sellers often pay about 6% to 10% including commission or roughly 1% to 3% excluding commission, plus any negotiated credits.
Who pays for the owner’s title insurance policy in Charleston?
- It is negotiable by local custom, so confirm the allocation in your contract and with your closing attorney.
Are HOA and condo transfer fees common in Charleston?
- Yes, many communities charge resale, transfer, or estoppel fees and dues are often prorated based on the closing date.
What taxes and recording fees should I expect in Charleston County?
- Expect deed and mortgage recording fees and potential state or county transfer charges, with exact amounts verified at closing.
Do South Carolina closings use attorneys?
- Yes, closing attorneys commonly handle settlements in South Carolina and their fees vary by firm and transaction complexity.
