Because a house is such an important purchase, it’s crucial that you take the time to determine how much you can afford, what city and neighborhood within South Carolina you want to live in, and what features you need or want. You should also be aware of relevant legal matters concerning seller disclosures, purchase contracts, and other more.
With proper preparation, careful choice of a real estate agent, and prudent use of other qualified professionals, buying a home in South Carolina can be a wonderful experience.
Are You Ready to Buy a Home in South Carolina?
You wouldn't be the first person to want to relocate to or settle down in a state that offers warmth and hospitality, affordability (including low property taxes), natural beauty, and a strong economy. And while home prices in parts of South Carolina home are quite high, the average is $297,794 in the second half of 2024. Even at that amount, however, purchasing a home is definitely a financial challenge.
You'll want to get to know your local market (as you're starting to do here), including visiting homes to get a sense of what's available in your price range (allowing for possible bidding wars that take the selling price way over the list price) and getting your finances in order.
Have You Saved Up for a Down Payment?
Traditionally, home buyers put down up to 20% of the purchase price on a home. Lenders like to see that much (and are delighted to see more), because it reduces their risk if you stop making your monthly payments or otherwise default and they then have to foreclose.
You've probably been setting money aside for a down payment already, but now is the time to ratchet that process up, and to avoid making any major new purchases (particularly on credit). After all, 20% of a home priced at the average in South Carolina is nearly $60,000. Not exactly pocket change.
South Carolina also offers programs to assist first-time and move-up homebuyers with reliable fixed-rate mortgages, including down payment assistance.
Will You Need a Home Loan for the Purchase?
Assuming you'll need to take out a home loan (a mortgage) to buy your South Carolina home, be sure to learn what's available, including government-backed options. Also check on your credit report, which will be one of the first things a bank or other institutional lender looks at, to see whether you're a major risk. You can view your report for free through annualcreditreport.com). Be sure to correct any mistakes you find there.
Next, consider consulting with a mortgage broker to see what price range of houses you'll qualify to borrow money for. The broker can also help you obtain mortgage preapproval, which can be crucial if and when you're competing with other would-be buyers. You'll probably need to pay the mortgage broker a commission in the 1% to 2% range, depending on the loan amount and other factors.
Particularly if money is tight, there's no shame in deciding that you want to keep renting for now. Another factor is how settled your life is. As a broad rule, the upfront costs make buying a house financially risky unless you plan to stay in it at least five years. If you're not settled, and could still consider moving for a school, job, relationship, or something else, buying now might not ideal.
If you are ready to buy, though, you'll likely want to check in with prospective real estate agents, as described further below.
Where in South Carolina Do You Want to Buy?
Perhaps you already have a city, town, or even neighborhood in mind. If not, a number of resources will allow you to narrow your search, ranging from simple online searches such as "Is X a good place to live?" to sites such as bestplaces.
Before getting overwhelmed with all the data, it's worth creating a list of factors most important to you personally, such as:
- quality schools and universities
- gourmet or ethnic restaurants or groceries
- proximity to nature and culture
- excellent medical care
- coastal or inland location
- low crime levels, and
- thriving arts or crafts scene.
Many of these factors will increase your house's long-term value, too, thus making it a sound investment.
Advantages of Working With a Real Estate Agent in South Carolina
One of the first steps in buying a house, condo, townhouse, or other property in South Carolina is to find a real estate agent, who can offer:
- knowledge of the community, median home prices, and market conditions
- ability to match homes to your needs and budget
- assistance preparing a viable offer and handling other paperwork, and
- help with negotiating the final deal.
Your agent should be able to guide you at every step, from preparing your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing. The agent should also help you locate other professionals to assist you in the home buying process, such as mortgage brokers and home inspectors.
The good news is that working with a real estate agent shouldn’t cost you anything. Traditionally, the home seller usually pays the entire commission, around 5% to 6% of the house sale price, and that is split between the seller’s agent and the buyer's. Although recent lawsuits and court settlements might eventually change this model, no new reality has been settled upon yet.
Personal referrals from other home buyers are usually the best way to select a real estate agent. You can find licensed South Carolina real estate agents at the South Carolina Department of Labor Licensing Regulation. Other useful resources include real estate websites such as Zillow, which provide customer reviews of real estate agents.
Seller Disclosure Requirements in South Carolina
State law in South Carolina (South Carolina Code § 27-50-40) requires that real estate sellers provide buyers with a written, filled-out disclosure form, which includes the seller's knowledge of any "material, adverse facts" and various details regarding the property, such as:
- information on the water source and sewage system
- issues with the structure, including the foundation, roof, and walls
- defects with the plumbing, electrical, heating, cooling, and other mechanical systems
- environmental conditions, such as the presence of termites, asbestos, or radon gas, and
- legal issues, including zoning restrictions, building codes, whether any part of the property is leased to tenants, and homeowner's association participation.
An exception can be made if both parties expressly agree that no disclosure form is needed (see South Carolina Code § 27-50-30. However, receiving seller disclosures is important for you as a buyer, since just looking at a property might not tell you what problems its owner encountered with it while living there.
Disclosures must be on a Residential Property Condition Disclosure Statement form created by the South Carolina Real Estate Commission. Sellers can check "Yes," "No," or "No representation" in response to numerous questions, and in some cases must provide descriptions or details. If you see a lot of "No representations" checked, you might reasonably worry that either the seller did not fully focus on filling out the form or is being cagey about home defects.
In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Home Inspections in South Carolina
Buyers should not rely solely on the property seller's disclosures but should hire an independent home inspector to verify the information from the seller's disclosure and discover any unknown issues or defects the house might have. The inspector will look at everything from the house's foundation to the heating and plumbing systems (and pay special attention to those "no representation" areas of the home).
In addition to the home inspection, your mortgage lender in South Carolina might require you to obtain a "wood inspection." This evaluates whether the house is free of wood-destroying pests, such as termites or fungi. In some cases, the home seller might pay for this report.
Many buyers make their offer contingent upon satisfactory inspection reports to be sure no material defects exist on the property. If material defects are found, the buyer can either renegotiate the deal or walk away from the sale.
If you're in such a tight real estate market that you're tempted to waive (go without) the inspection contingency so as to make your offer stand out from the competition, do what you can to protect your interests in other ways. For example, you might bring a contractor or friend with relevant knowledge and skills to your house visits, so you'll have some idea of what you're getting yourself into.
Some home sellers also commission their own inspection report before putting the house on the market, which gives you some level of comfort and insight. Realize, however, that the home seller might not have chosen the most nitpicky inspector out there. You'll want to do some research on that inspector's reputation before staking your future on the results.
Real Estate Purchase Agreements in South Carolina
A purchase agreement is a legal document that contains the material terms and conditions of a real estate transaction. It must be in writing and signed by the parties (buyers and sellers), and include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property.
The South Carolina Association of Realtors has created a purchase agreement for buyers' use, which your agent can provide you with. You can fill this out first and then give it to the seller as your purchase offer.
Title Issues in South Carolina
South Carolina law requires buyers to hire a lawyer to perform a title search before purchasing a house. The lawyer searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that could affect the property.
If the lawyer turns up problems, the buyer should require the seller to correct these as a condition to closing.
Mortgage companies usually require the buyer to purchase a title insurance policy as a condition to funding the loan. This insurance protects the title to the property against adverse claims by third parties or any clouds on the title missed by the title search.
If your mortgage company does not require you to buy title insurance, consider doing so anyway, so you can be protected.
Working With a Lawyer in South Carolina
As mentioned above, South Carolina requires lawyers to be involved in every house buying transaction. Your lawyer will oversee the closing process and run the title search (see the South Carolina Bar Association for more information).
In addition to the lawyer's legally required duties, you may want to consider hiring a lawyer in unusual situations, such as if you are purchasing a house jointly with others and need help structuring your co-buyer agreement.
Check out our lawyer directory, to find an experienced real estate attorney in South Carolina.