Wondering how much you will pay at the closing table in Spartanburg? You are not alone. Closing costs can feel confusing, and they vary with your loan, price point, and local customs. In this guide, you will learn what buyers and sellers typically pay in Spartanburg County, what is negotiable, and how to budget with confidence. Let’s dive in.
Closing costs 101
Closing costs are the third-party fees, lender charges, prepaid items, and prorations due at closing in addition to your down payment. They change by loan program, purchase price, and provider choice. Some costs are set or administered by Spartanburg County offices, such as recording and deed filing.
Federal rules require your lender to give you a Loan Estimate early in the process and a Closing Disclosure at least three business days before closing. These forms itemize your fees, so review them closely and ask questions. Who pays what often follows local custom and your purchase contract, so confirm details with your lender, closing attorney or title company, and your agent.
What buyers typically pay in Spartanburg
Lender fees and points
Most lenders charge an origination fee. A common range is 0.5% to 1% of the loan amount, though some lenders use flat administrative fees. Discount points are optional. One point equals 1% of the loan and can reduce your interest rate.
Appraisal and credit report
Lenders usually require an appraisal, often $400 to $800 depending on the property. Credit report fees are modest, typically $25 to $75. Some lenders bundle processing and underwriting into origination.
Title and closing services
Expect a title search and settlement or escrow fee, often $300 to $800. Buyers typically pay for the lender’s title insurance policy, which is based on the loan amount. In many South Carolina transactions, the seller often covers the owner’s title policy, but this is negotiable.
Insurance, interest, and escrow setup
You will prepay your first year of homeowners insurance, which varies by property. You will also pay prepaid mortgage interest from the date your loan funds until your first payment. Your lender may set up escrow reserves for taxes and insurance.
Recording and association items
Spartanburg County charges recording fees to file the mortgage and other documents. If the home is in an HOA, you may see transfer or capital contribution fees set by the association.
Surveys and inspections
A survey may be required or recommended. Costs often run $200 to $700. Home inspections are separate from closing costs, but you should budget for them while planning your total spend.
Mortgage insurance and loan program costs
If you use a low down payment loan, you may have mortgage insurance. FHA loans include an upfront mortgage insurance premium. Conventional loans can require private mortgage insurance based on down payment and credit.
Typical buyer total
For planning, buyer closing costs commonly fall around 2% to 5% of the purchase price in many scenarios, not including your down payment. Your exact number depends on your lender fees, title costs, prepaids, and HOA items.
What sellers typically pay in Spartanburg
Real estate commission
Commission is usually the largest seller expense. In South Carolina, market averages often range 5% to 6% of the sale price, split between the listing and buyer’s agents. Commission is always negotiated in your listing agreement.
Owner’s title insurance
In many South Carolina closings, it is customary for the seller to pay for the owner’s title insurance policy. This can vary by county and by contract, so confirm with your closing attorney or title company.
Payoffs and recording
Sellers pay off their existing mortgage balances and any related release or recording fees. You may also see small charges for deed preparation or lien releases.
Prorations and HOA items
Property taxes are prorated at closing. Sellers typically pay taxes for their period of ownership up to the day of closing. HOA estoppel or transfer fees can apply if the home is in an association.
Repairs, credits, and warranties
Buyers and sellers can negotiate repair completion or closing credits during inspections. Some sellers offer a home warranty, often $300 to $600, as part of negotiations.
Typical seller total
Total seller costs often come to 6% to 10% of the sale price, with commission as the dominant line item. Your net depends on the commission you negotiate, who pays the owner’s title policy, and any concessions.
Local customs in Spartanburg
- Owner’s title policy is often paid by the seller, while the buyer pays the lender’s policy and loan-related fees. This is custom, not law, and negotiable.
- Recording and deed fees are set by Spartanburg County and can change. Your closing attorney or title company will confirm the current amounts when preparing your file.
- Property taxes are prorated through the closing date. Check current millage rates and tax schedules with county offices if you want an early estimate.
How much to budget
- Buyers: budget 2% to 5% of the purchase price for closing costs, plus your down payment.
- Sellers: plan for 6% to 10% of the sale price for total selling costs, with commission as the largest part.
- Remember, these are illustrative ranges. Your exact costs depend on your loan program, price point, and negotiated terms.
Ways to reduce out-of-pocket costs
- Shop your mortgage. Compare Loan Estimates. Ask about lender credits versus paying discount points. A lender credit can lower your upfront costs in exchange for a slightly higher rate.
- Compare closing providers. Title and settlement fees vary. Request quotes and ask what services are included.
- Negotiate seller concessions. Buyers can request a seller credit toward closing costs, subject to loan program limits. Sellers can use concessions to attract buyers without cutting price as much.
- Fine-tune the commission. Sellers can discuss the commission structure with their listing agent. Small changes in percentage can have a big impact on net proceeds.
- Time repairs wisely. Sellers who complete repairs before listing may reduce inspection-related credits later. Buyers can prioritize must-do items to keep credits focused.
Simple examples
These examples are for budgeting only. Your specifics will differ.
Example A, $200,000 purchase
- Buyer closing costs at 2.5%: about $5,000.
- Seller costs: 5.5% commission $11,000, owner’s title and fees about $1,500, prorations and recording about $1,000. Total seller costs around $14,500 (about 7.25%).
Example B, $300,000 purchase
- Buyer closing costs at 2%: about $6,000.
- Seller costs: 5.5% commission $16,500, title and fees about $2,000, prorations about $1,500. Total seller costs around $20,000 (about 6.7%).
Buyer checklist
- Get preapproved and request a Loan Estimate to see itemized closing costs.
- Budget 2% to 5% of the price for closing costs. Ask your lender for a refined estimate.
- Confirm who pays the owner’s title policy in Spartanburg for your deal.
- Set aside funds for the first year of homeowners insurance, property tax proration, prepaid interest, and escrow deposits.
- Get quotes for appraisal, inspection, survey, and any HOA transfer fees.
- Review your Closing Disclosure at least three business days before closing and ask about any changes.
Seller checklist
- Estimate commission and discuss strategy with your agent.
- Ask your closing attorney or title company about who typically pays the owner’s title policy in Spartanburg County.
- Order payoff statements for your mortgage and any liens early.
- Estimate prorated property taxes and HOA fees through your target closing date.
- Decide if you will offer buyer concessions or a home warranty, and confirm any limits tied to the buyer’s loan program.
- Gather HOA documents and any required association disclosures.
Next steps
Your exact closing costs come down to your contract, loan, and local fee schedules. Start by requesting your Loan Estimate, then compare quotes from closing providers if you have a choice. As you move toward the finish line, your Closing Disclosure will give you final numbers.
If you want a local, straightforward take on what to expect in Spartanburg, reach out for a quick planning call. Whether you are buying or selling, you will get clear next steps, honest numbers, and a calm path to closing. Connect with Rhonda Stevens to map your budget, review options, and get your instant home valuation.
FAQs
What are typical buyer closing costs in Spartanburg?
- Many buyers pay about 2% to 5% of the purchase price, covering lender fees, appraisal, title services, prepaids, and recording, though exact costs depend on loan and property.
Who usually pays for owner’s title insurance in Spartanburg County?
- It is common in South Carolina for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy, but this is custom and can be negotiated in the contract.
When will I get final closing numbers for my home purchase?
- Federal rules require your lender to send a Closing Disclosure at least three business days before closing, and your settlement statement will reflect final amounts at or before closing.
Can a seller help pay a buyer’s closing costs in Spartanburg?
- Yes, seller concessions are allowed and negotiated in the contract, but lender and loan program limits apply, so confirm with the buyer’s lender in advance.
How much do sellers typically pay to sell a home in Spartanburg?
- Sellers often spend 6% to 10% of the sale price, with commission as the largest cost, plus items like owner’s title insurance, prorated taxes, payoffs, and any negotiated credits.
