Let’s talk about a phrase that gets tossed around a lot—closing costs—but no one ever really explains them until you’re knee-deep in paperwork. I’ve got you covered. Grab a cup of tea and settle in. I’m breaking it all down in plain English—what closing costs really include, how much to expect here in Upstate South Carolina, and why each item matters. I’ll even show you a real-life example from a $255,000 sale with a conventional loan. You can also check out my Saturday Morning Chat: Quick Overview on Closing Costs if you’re more of a short-and-sweet video watcher.
What Are Closing Costs, Anyway?
Before we break it down, let’s get clear on what closing costs actually are.
Closing costs are all the extra expenses that come with finalizing a real estate deal—on top of the price of the home. Think of it like this: you’re not just buying (or selling) a house, you’re also paying the people who helped make it happen—like your lender, attorney, appraiser, and the folks handling the paperwork. It covers things like loan fees, legal fees, title services, insurance, and taxes. It’s not the fun part, but it’s a necessary part to officially transfer the home from one person to another.
Now let’s look at what that really means for you…
💰 Closing Costs for Buyers
So, you’re buying a home and you’re told to expect closing costs. You think, “Okay, probably a couple hundred bucks, right?” I hate to be the one to say it, but no. Most buyers in our Upstate SC should budget for about 2% to 4% of the purchase price in closing costs. On a $255,000 home, that’s roughly $5,100 to $10,200—not pocket change!
Let’s break down what’s typically included:
1. Lender Fees
This is the cost of doing business with your mortgage company. If you’re using a conventional loan (like in our example), this usually includes:
- Origination fee – Around 0.5%-1% of the loan amount. This pays the lender for setting up your loan.
- Credit report fee – Usually $30-$50. They’re checking to make sure your financials look solid.
- Underwriting fee – Often $400-$600. It covers the behind-the-scenes team that approves your loan.
2. Appraisal Fee
Expect around $500-$600. This is required by your lender to make sure the home is worth what you’re paying.
3. Homeowner’s Insurance & Prepaids
You’ll often pay the first year of homeowner’s insurance at closing—say $1,200-$1,500—plus some property taxes and interest to cover the time between closing and your first payment.
4. Title Services
- Title search – About $200-$400. Makes sure the seller actually owns the property and no one else has a claim to it.
- Lender’s title insurance – Around $500. This protects the lender in case there’s an issue with the title down the road.
- Owners’s title insurance – Around $500. This protects you in case there’s an issue with the title down the road.
5. Attorney Fees
In South Carolina, we always use an attorney for closing. You’ll pay around $500-$900, and they handle all the paperwork, disbursements, and legal side of things.
💵 Closing Costs for Sellers
Now let’s flip the script. You’re the one selling—so you must be walking away with all the cash, right? Well… yes and no.
Most sellers in Upstate SC pay 6%–7% of the sale price, and yes, most of that goes to agent commissions. But there are a few other things too.
Here’s what you can expect:
1. Agent Commission
The commission rate is negotiable and varies from transaction to transaction, but using our example, on this $255,000 home, Realtor commission was $12,750.
2. Attorney Fees
Just like buyers, sellers pay around $600-$900 for closing with a licensed attorney. On the statement example, you’ll see those spread out over several different line items.
3. Title-Related Fees
- Deed preparation – Around $150-$350.
- Recording fees – $20-$50, to file the new deed with the county.
- Lien satisfaction (if needed) – Varies. If you’ve got a mortgage or any liens, the attorney will make sure they’re paid off so you don’t have to worry about it.
4. Property Taxes (Prorated)
If you’ve already paid your taxes for the year, you may get a little back. If not, you may owe a prorated amount. Here is how that works. The attorney takes last year’s taxes and divides them by 360 (weird, I know and I can’t explain why) to get a daily tax rate. That daily rate is then multiplied by the number of days the seller has owned the property. If the seller hasn’t paid the taxes for the year, then they give the buyer a credit for that amount on the closing statement. If the seller has paid the taxes for the year, the buyer gives the seller a credit for the number of days they will own the property for the rest of the year. HOA fees work the same way.
Let’s look at our example. We closed on May 26th, so the seller had not paid the taxes for the year. As a result, the daily rate was used to calculate the cost of taxes from January 1 – May 6. The seller gave the buyer a credit of $398.15. When the tax bill came out in October or November of that year, the buyers’ mortgage company paid the entire bill out of the buyers’ escrow account.
It can be confusing, so if you have any questions on this, don’t hesitate to click here to email me now!
📄 Want to See the Real Numbers?
If you’re a visual learner, I’ve got a sample closing statement from a $255,000 sale with a conventional loan that shows exactly what each party paid. You can see where every dollar went. Obviously it is heavily redacted because I can’t reveal anything that would let you know to which property or parties this refers, but hopefully the visual will help you understand.
Final Sip of Tea
Closing costs may not be the most glamorous part of buying or selling a home, but they are one of the most important. Knowing what to expect—and why each cost matters—can help you plan better and avoid those last-minute surprises at the closing table.
Have questions? Ask away by emailing me at April@AllStarSC.com. I’m always here to help you navigate every part of the journey, tea in hand.
☕ We’re Spilling All the Tea This Week
If you liked this deep dive on closing costs, you’ll love what else we’re sharing! We’re spilling a lot of tea this week—on appraisals, what’s really going on in the Upstate real estate market, down payments, and the best places to spill (and sip!) the tea in Upstate, SC.
Come hang out with us on Facebook and Instagram for real talk, helpful tips, and behind-the-scenes peeks at what it’s like buying and selling homes right here in Upstate SC. Go give us a follow—you will not regret it!
