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Columbia Real Estate Closing Costs 2023: Fees & Who Pays

December 02, 20236 min read


Buying or selling a house in Columbia, South Carolina, involves more than just the price of the home. There are extra costs called "closing costs". These costs cover various fees and services needed to complete the sale.

What are Closing Costs?

Closing costs are those extra expenses you'll encounter when sealing the deal on a real estate purchase, and they go beyond the property's actual price.

These costs cover a range of fees and payments that are part of the process of finalizing the transaction.

It's like when you buy a video game, and in addition to the game's price, you also pay for things like a special controller or a strategy guide.

In a real estate deal, these expenses can include payments for a lawyer to make sure everything is legally sound, or for a home inspector to check the property's condition.

These costs are essential but can add up, so it's crucial to be aware of them when you're planning your budget for a real estate transaction.

So, you're curious about what closing costs are, right? Think of it like this: when you're buying a house, there’s the big price tag for the house itself, and then there are these extra costs, kinda like the extra charges when you buy something online.

These are your closing costs. They cover all sorts of stuff like paying the person who checks if the house is valued right (appraisal fee), the cost for making sure the house's paperwork is clean (title insurance), and even fees for the legal work (attorney fees).

It’s like the behind-the-scenes financial stuff to seal the deal on your new home. Pretty important to keep in mind when you're budgeting for your house!

Typical Closing Costs in Columbia for 2023

These costs often include fees such as property taxes, title insurance, appraisal fees, and attorney charges. Property taxes are based on the property's assessed value and can vary. Title insurance ensures that the property's title is clear and can protect both the buyer and the lender.

Appraisal fees cover the cost of assessing the property's value. Attorney charges may apply if legal assistance is needed during the closing process. It's crucial for both buyers and sellers to be aware of these typical closing costs to budget effectively and navigate real estate transactions smoothly.

Loan Origination Fees:
This is what the bank or lender charges for processing the mortgage. It's usually about 1% of the loan amount.

Appraisal Fee:
Before a bank gives you a loan, they want to make sure the house is worth the money. An appraisal fee covers the cost of having a professional appraise, or value, the house.

Credit Report Fee:
The lender will check your credit report to see if you have a good history of paying bills. This fee covers that check.

Title Insurance:
This protects you in case there are any legal issues with the property’s ownership history.

Home Inspection Fee:
A home inspector checks the house for any problems before you buy it. This fee pays for their service.

Attorney Fees:
In South Carolina, you need a lawyer to handle the legal paperwork. This fee pays for their work.

Recording Fees:
This is the cost for recording the new deed and mortgage with the county.

Survey Fee:
Sometimes, a survey of the property is needed to confirm its boundaries.

Property Taxes:
You might have to pay some property taxes upfront as part of the closing.

Homeowners Insurance:
Most lenders require you to have insurance on your new home, which might be part of your closing costs.

Lender Fees:
These include charges for processing your loan, pulling your credit report, and the all-important appraisal fee to determine the property's value. Expect these to make up a significant chunk of your closing costs.

Title and Settlement Fees.
These cover the services of the title company that ensures the property's title is clear of any issues and oversees the closing process. You'll also encounter fees for title insurance to protect against any title-related problems that may arise.

Government Fees and Taxes,
which can include transfer taxes, recording fees, and property taxes. These are essential for making the property legally yours and maintaining it in the future.

Escrow Fees.
These cover the cost of setting up an escrow account to hold funds for property taxes and insurance. It's like a savings account to ensure these expenses are paid when they come due.

In Columbia for 2023, typical closing costs can add up to around 2% to 5% of the home's purchase price. So, for a $200,000 home, you might be looking at $4,000 to $10,000 in closing costs.

It's crucial to be aware of these costs as you prepare to buy a home in Columbia. While they can feel like an extra burden, they're an essential part of the homebuying process. Understanding what to expect will help you plan your budget accordingly and ensure a smooth and successful closing on your new Columbia property in 2023.

Who Pays for What?

In Columbia, both the buyer and seller have their own set of closing costs to pay.

Buyer’s Costs:

Buyers often shoulder various costs, including loan origination fees, appraisal fees, credit report fees, title insurance expenses, home inspection charges, attorney fees, recording fees, survey fees, and a portion of property taxes and homeowners insurance.

These costs are essential components of the home-buying process, and understanding them is crucial for buyers. While some expenses are negotiable, being prepared for these financial aspects ensures a smoother and more informed home purchase. It's advisable for buyers to work closely with their real estate agents and lenders to gain clarity on these expenses and plan their budget accordingly.

Seller’s Costs:

Sellers typically shoulder a significant portion of the closing costs. This includes paying for a part of the title insurance, which safeguards against potential legal problems with the property’s title.

Additionally, they are responsible for certain attorney fees related to the legal aspects of the sale. A portion of the property taxes owed up until the sale is also the seller's responsibility.

One of the most substantial expenses for sellers is the real estate agent's commission. This fee, which compensates the agents involved in the sale, constitutes a major chunk of the seller's closing costs. Understanding these financial responsibilities is crucial for sellers in preparing for the sale of their property.

Negotiating Closing Costs

There's a noteworthy aspect that buyers and sellers can often negotiate: the closing costs. These are the various fees and expenses incurred during the process of finalizing a property sale. In some cases, a buyer may approach the seller with a request to cover a portion of these costs.

This kind of negotiation is particularly common in buyer's markets, where sellers are more motivated to make their property appealing to potential buyers. For instance, a buyer might ask the seller to pay for specific charges, such as title insurance or inspection fees, as a part of the purchase agreement.

This arrangement can be beneficial for both parties, making the overall transaction more financially manageable for the buyer while facilitating a smoother and quicker sale for the seller.


Closing costs are an important part of buying or selling a home in Columbia. They can add to a significant amount, so it's good to understand them before you start the process. Remember, these costs can vary, and some of them can be negotiated.

Always ask your real estate agent, lender, or attorney for a detailed list of what you’ll need to pay so you can plan accordingly. Knowing about these costs upfront makes the process of buying or selling a house less stressful and more transparent.


Columbia Real EstateFees And Who PaysClosing Costs 2023
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Ben Lovro

Ben Lovro is a real estate entrepreneur and marketing expert who has made a name for himself as a thought leader in the industry. Through his extensive expertise in the real estate sector, Ben Lovro has consistently demonstrated his visionary mindset and innovative approach to business.

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