Are We HOME Yet E022: How Much Do I Need to Buy a House in Columbia South Carolina?

South Carolina homebuyers need to plan for many costs when buying a house.

South Carolina is a great place to live, but it’s not cheap. If you’re looking for your next South Carolina home, then you’ll want to think about the following expenses before making it to the closing table: down payments, closing costs, inspections, and earnest money.

With planning and help from an experienced real estate professional like us at the Latimore Group, we can make sure that you get exactly what you want out of your homebuying experience! We will explore these costs in detail below so that you know what expenses are involved with owning your home.
If you want access to the information I am covering today, then just drop the word REMINDME below. We would be happy to help you out!

Hi! I’m LaToya Latimore, Broker & Team Owner of the Latimore Group. We help soon-to-be property owners and existing property owners with real estate so they can Build Wealth Through Real Estate without making costly mistakes. We do this by providing a dedicated team of real estate experts, our circle of trusted partners, disruptive digital marketing for our sellers, and cutting-edge technology for our buyers to create an unforgettable experience.

Buying a house is one of the biggest investments you can make. It’s also an emotional decision that will impact your life for decades to come. If you’re even remotely thinking about buying a home, it’s worth doing some research first to make sure you know what you are getting into and how much money you need to buy a house in Columbia South Carolina. This blog post will give you some information on what factors influence the cost of houses, as well as how much money people typically spend when they purchase their first homes.

If you’re thinking about buying a house in South Carolina, you’ll need to know how much money you need to save up. Here’s a breakdown of the costs associated with homeownership in Columbia SC, Blythewood SC, Lexington SC, Irmo SC, Sumter SC and surrounding areas.

What is earnest money, and what happens to the cash once you’ve paid it?

Earnest money is a cash deposit that you make to the seller when you submit your offer on a house. It’s essentially a show of good faith; you’re promising to buy the house if the seller accepts your offer. The amount of earnest money varies, but it’s typically 1-2% of the purchase price. In a competitive market, you can expect to pay at least 1% of the purchase price.

Once the seller accepts your offer, you may be given a specific period to inspect the property. This is when things get tricky; if the house has any major problems that you missed during your initial walk-through and you still want to buy it, you may decide to ask for a lowering of the price since there are new costs associated with owning this home (repairing any defects found during the inspection). If you choose not to purchase your house after performing your due diligence, then 100% of your earnest money will be refunded to you. That is if contingencies are considered in your Purchase Contract. Your Real Estate Professional can assist you with this.

If you’re lucky enough to have your offer accepted, the earnest money will go toward your down payment. If your offer is rejected, you’ll get your money back (minus any fees).

Does the homebuyer pay for inspections when purchasing a property in Columbia South Carolina?

Typically, the homebuyer pays for inspections when purchasing a property. However, there are some cases in which the seller may pay for them. This usually depends on the agreement that is made between the buyer and seller.

The types of inspections you can expect to complete when buying a home in South Carolina include:

Structural inspections, septic system inspections, well inspections, and pest inspections are some of the most common types of home inspection in Columbia South Carolina. You can expect to pay an amount of money ranging from $100 to $600 per inspection. Your real estate professional may suggest a handful of inspectors with whom they’ve worked before.

You are not required to have inspections unless your mortgage underwriter stipulates this as a condition to fund your loan. However, it is highly recommended to complete inspections for finding material and costly repairs that you do not want to be responsible for. Replacing a roof or heating and air system can put your vacation plans on hold. It may also take significant money from your emergency funds.

The main point of a home inspection is to make sure that everything works as it should and there are no issues with the property’s systems or appliances before closing on a contract. The types of inspections you choose can be determined by the condition, area, and lender requirements for your property.

How much do I need to save for a down payment in Columbia South Carolina?

To buy a house in Columbia South Carolina and surrounding areas, you will likely need to save for a down payment. The amount that you will need to save depends on a few factors, such as the price of the home and your credit score.

It used to be the norm to save at least 20% of the home’s purchase price for a down payment. On a home purchase of $300,000 that is $60,000. Thank goodness times have changed! There are many cases in which you may be able to put down less money. You could be eligible for a property with as little as 3.5 percent down or in certain cases, no down payment on popular loan alternatives such as VA or USDA. Speak with a lender to find out what is required to buy a house in your area.

Before you begin saving for a down payment, keep in mind that a mortgage loan can’t be approved until you meet specific criteria. You’ll need to have a steady income and be able to prove it with pay stubs or tax returns. You will also need to have solid credit and earn enough income to handle your monthly loan payments. You can check your credit score for free on various sites to see where you stand before applying for a loan. Your real estate professional can provide you with resources.

Keep in mind that a down payment is separate from closing costs. Closing costs will be a percentage of the total purchase price and can vary from 3-5% depending on the home.

Is it common for the seller to cover my closing costs when purchasing a home?

It is common for the seller to cover the homebuyer’s closing costs. This condition arises when there are more houses for sale than people who are interested in buying them, which is known as a “Buyers’ Market.” The seller may offer to pay a certain percentage of the closing costs or may cover them in their entirety. It is important to negotiate this agreement before signing any contracts.

In a “Sellers’ Market,” negotiation on this issue may fall to the buyer. This condition arises when there are more homebuyers searching for homes than there are homes for sale. If you can effectively negotiate your closing costs with the seller, it can save you a significant amount of money. Be sure to include this in your initial offer when determining how much you’ll be able to spend on a property.

Closing costs are typically composed of various fees charged by lenders and third-party service providers. These can include:

Loan origination fee, appraisal fee, credit report fee, title search fee, title insurance premium, settlement or closing agent’s fee, and recording fees.

The average closing costs amount to about 3-5% of the total purchase price of the home. It is important to note that while the seller may pay some or all of your closing costs, you are still responsible for paying them. For example, the buyer may be responsible for paying the settlement agent’s fee.

What are the other expenses that I should budget for when purchasing a property?

In addition to saving for a down payment and closing costs, there are other expenses that you should budget for when purchasing a property. These may include:

-Moving costs

-Renovations or repairs

-Paying off any existing debts

-Home insurance

-Property taxes

One of the biggest expenses when moving is the cost of transportation. Depending on how far you are moving, the cost of gas and tolls can add up quickly. You will also need to factor in the cost of hiring a moving company if you don’t want to do all the work yourself.

Moving costs

If you are moving, here are some tips for saving money on your move:

– Try to pack everything yourself. This will save you money on hiring a moving company.

– Find people who are going in the same direction as you to share the cost of a moving truck.

– Don’t forget to budget for food and lodging while you are in transit.

Household items

Since you will likely be moving from a much smaller apartment or home, you may want to rent a storage unit for any large furniture or appliances that won’t fit in your new home. Also, think about items you don’t use daily and whether it is really necessary to move them to your new house.

House inspection

When buying a home, it is a good idea to have a professional perform a house inspection. This will give you an estimate of what repairs and maintenance may be required. You can then factor in these costs when calculating how much you will need to buy the house.

Renovations or repairs

If you’re planning on doing any renovations or repairs on your new home, you’ll need to account for that in your budget. It’s a good idea to get estimates from a few contractors so you have an idea of how much everything will cost.

Your real estate professional can help you find reputable contractors and ensure that your house is in top condition before you finalize the sale.

Paying off any existing debts

The best way to get started is by paying off any existing debts. This will free up more money each month to put towards your new mortgage. Make a budget and stick to it so you can stay on track with your goal of buying a house.

Home insurance

When it comes to home insurance, there are a few things that you need to keep in mind. For example, you want to make sure that you have enough coverage in case of an emergency. You should also shop around for the best rates, and be sure to read the fine print before you sign anything. In Columbia South Carolina and surrounding cities, you can expect to pay about $2,000 – $5,000 per year for homeowners insurance. In some cases, you may have to pay the annual premium before you close on the house.

Property taxes

You will also need to factor in property tax payments when you are figuring out how much money you need to buy a house. The tax rate varies from county to county in South Carolina, and the average is about 0.63% of your home’s purchase price. The average yearly property tax rate in Columbia is $1,644. This means that the average homeowner pays around $134 each month in property taxes. Keep in mind that your property tax bill may be higher or lower depending on the value of your home and the city you live in. Just as with homeowners insurance, you may have to pay the annual property tax before you close on the house in the form of mortgage escrow. Depending on the time of year that you close on your home, this amount may be much lower due to prorations. Other monthly costs that are taken into account in the cost of living include transportation, groceries, utilities, medical bills, and entertainment. To find out how much you should be spending each month on living expenses, calculate how much money it takes to maintain your current lifestyle. Be sure to take inflation into account.

Examples

Here are some sample costs for purchasing a house in various locations to provide you with a better idea of what you can anticipate spending out of pocket. The computations are for illustration purposes only. The data collected by the Consolidated Multiple Listing Service for single-family homes sold in the year 2021 includes average sales price, days on market, and Sale Price/List Price Ratio.

Bottom Line

If you’re looking to buy a home in Columbia South Carolina or are just interested in how much money it takes on average to purchase a house there, we hope this article has helped clear things up. If not and you have any questions about our findings or want help with buying a new home here, let us know! Our team is always happy to help you find your dream homes even when you don’t live near Columbia South Carolina.

Please ask if you have any questions. Good luck with your search!