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Do Sellers Pay Closing Costs in SC?

On Behalf of | March 01, 2024 | Estate Planning

The decision to purchase a home is not one that should be taken lightly. Closing costs may sneak up on a first-time homebuyer, who may not realize that the downpayment is only part of what needs to be set aside to purchase a home.

Both the seller and buyer will each be responsible for certain closing costs. Blackacre Law LLC would like to discuss the closing costs sellers normally have to pay in South Carolina.

Seller Closing Costs

Although the buyer will be responsible for paying the lender’s costs, the seller will not walk away without paying a share of the closing costs.

Seller closing costs in South Carolina real estate transactions include:

Deed Preparation & Recording Fee

The seller will pay for the preparation of the deed, which transfers the property to the new owner. The deed preparation may cost between $100-$200. There will also be a cost to record the deed. As of date, the Greenville County Register of Deeds charges $15 to record a deed.

Transfer Tax Stamps

Taxes will also be applied to the transfer of the property, commonly referred to as tax stamps. In South Carolina, the tax stamp rate is currently $3.70 per thousand dollars of the purchase price.

The seller may not need to cover the entire tax stamp cost. In some situations, the buyer may agree to cover 50% of the cost or the entirety of the tax stamps.

Broker Commission

The average real estate commission rate across the country is 5.8%. In South Carolina, the seller generally pays the closing costs for their own agent and the buyer’s agent. That being the case, the broker commission will probably be the largest percentage of your closing costs.

Property Taxes

South Carolina property owners pay taxes in arrears. As a result, at closing, the seller would pay upfront the property tax cost for when they owned the property, and the buyer would pay the full cost of the bill once it is due (January 15th of the following year).

Attorney Fees

Both the seller and buyer will have to pay attorney fees. The seller should anticipate to pay their attorney between $250-$750 at closing. It is always important to ask what the fee will be before hiring an attorney.

Why Do Sellers Often Agree to Pay Buyers’ Closing Costs?

Even though sellers pay a chunk of the closing costs, a seller may agree to pay a portion of a buyer’s closing costs. This is done to expedite the sale, making it more appealing for a buyer. Buyers do withstand most of the closing costs. A seller agreeing to take on certain closing costs can be extremely helpful to a first-time buyer.

Preparation in a Real Estate Transaction is Key

If you are planning on selling your home, it is important that you are prepared for additional costs. Selling a home can be a stressful process, but when you have Attorney H. Stewart James representing you, you are hiring an attorney who will help you every step of the way. Contact the office today by calling 864-775-5400 or filling out our online contact form to schedule your consultation.