Closing Costs in South Carolina: A Guide for Sellers

Reconveyance fee

After you’ve completed the sale of your home and your mortgage has been paid off, you’ll typically be responsible for a reconveyance fee. This fee covers the process of receiving a reconveyance deed, which officially releases you from the mortgage debt. Your lender will handle the recording of the deed, and the cost of the reconveyance fee can vary based on your city, state, or county.

Realty transfer tax

You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.

These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.

In South Carolina, for example, the seller is typically responsible for covering transfer taxes as part of the closing costs, but this can fall to thebuyer, depending on the terms of the sales agreement.

Statewide, South Carolina charges a deed recording fee when property changes hands, though this is functionally the state’s transfer tax.

This is levied at a rate of $1.85 on realty values of $100-$500 and an additional $1.85 for each $500 increment thereafter. It is composed of both county and state fees, at a rate of $1.30 for the state portion and $0.55 for the county portion.

Real estate agent commission

Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.

Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.

It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.

Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.

Attorney Fees

Some states require an attorney to be present when closing the sale of a property.

South Carolina is one such state, and a licensed attorney is required to conduct real estate closings in person.

Homeowners Association/Condo Fees

One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees.

Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.

The average monthly HOA fee in South Carolina is $390.

Seller’s concessions

Sellers may owe money at closing due to financing concessions agreed upon during the negotiation process. These concessions typically cover items such as cash for closing costs, repairs, or home warranties.

One common concession is repair credits, which can be offered when a buyer includes a contingency related to the home inspection. If the inspection uncovers issues that need addressing, buyers may have the option to withdraw from the deal while keeping their earnest money, unless the seller agrees to handle the repairs.

Instead of doing the repairs themselves, sellers might offer repair credits at closing to cover the estimated costs. However, these concessions tend to be less frequent in strong seller’s markets, where contingencies may discourage potential buyers from making offers.

Miscellaneous closing costs/fees

These are some of the typical closing costs you might face as a seller in South Carolina. However, many of these expenses can be negotiated. Your buyer may agree to share some of the costs, or a real estate attorney or agent might help you secure a more favorable deal.

If you’re looking to avoid the complexity of working with an agent or managing closing costs, HomeLight’s Simple Sale program is an option. Selling your home becomes a straightforward process: provide basic information about your property, connect with one of our Home Consultants, and you could sell your home in as little as 10 days.

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