Buying or selling a home in De Smet comes with a big question: who pays what at closing? You want to plan your budget with confidence, not guess at fees the week before you sign. In this guide, you will learn what closing costs include, how they are typically split in Kingsbury County, what ranges to expect, and how to get exact numbers for your situation. Let’s dive in.
What closing costs include in South Dakota
Closing costs are the fees, taxes, and prepaid items due when the sale is finalized. They include lender charges, third-party fees like title and appraisal, county recording, property tax prorations, and if you are selling, commissions and mortgage payoffs.
Who pays each item is set by the purchase agreement and shaped by local custom. Many costs are negotiable, such as seller concessions, who pays for the owner’s title policy, or certain repairs. Your loan type also matters, since programs like FHA, VA, USDA, and conventional loans have their own rules for escrows, fees, and allowable seller contributions.
In South Dakota, there is not a widely applied statewide real estate transfer tax in most areas. Always verify with Kingsbury County for any local fees. Closings here are commonly handled by title companies or escrow agents, not attorneys, though local practices can vary.
Who usually pays what in De Smet
Local custom in Kingsbury County is a starting point, but your signed contract controls. It is common for buyers to pay lender-related fees, appraisals, and prepaids. Sellers typically cover commissions, prorated taxes through the day of closing, and their mortgage payoff. In many Midwestern markets, sellers often pay for the owner’s title insurance policy, though practice varies. Confirm with your agent and title company for your specific deal.
Seller concessions can help buyers cover a portion of their closing costs. The amount you can receive depends on the loan program. For example, FHA commonly allows up to 6 percent in seller contributions toward buyer closing costs, but you should confirm the current limits with your lender.
Buyer closing costs: items and ranges
Buyer closing costs, excluding the down payment, commonly run about 2 to 5 percent of the purchase price for a conventional loan. The exact amount depends on your loan type, lender, and any negotiated concessions.
Common buyer line items include:
- Down payment (separate from closing costs)
- Loan origination and application fees
- Credit report fee
- Appraisal
- Underwriting and processing fees
- Optional mortgage points
- Title search, lender’s title insurance, and settlement fee
- County recording for the deed and mortgage
- Prepaids and escrows for homeowners insurance, property taxes, and prepaid interest
- Inspections such as home, termite or pest, and radon if desired
- Survey if required
- HOA transfer or estoppel fees if applicable
Buyer example: $250,000 purchase
Assumptions for illustration only:
- Purchase price: $250,000
- Down payment: 20 percent = $50,000
- Closing costs: 3 percent of price = $7,500
- Cash to close: $50,000 + $7,500 = $57,500
Sample breakdown of the $7,500:
- Lender fees: $1,500
- Appraisal: $450
- Title, settlement, and lender’s title policy: $1,200
- Recording: $100
- Prepaids and escrows: $3,000
- Inspections and other: $1,250
These figures are examples. For exact numbers in De Smet, ask Kingsbury County for current recording fees and request quotes from local title companies and lenders.
Buyer action checklist
- Obtain a Loan Estimate from your lender, and compare at least two lenders.
- Ask your agent whether seller concessions are common for your price point and loan type.
- Request title insurance and settlement fee quotes from local title companies.
- Budget for inspections, appraisal, and prepaids like insurance and tax escrows.
- Verify recording fees with the Kingsbury County Register of Deeds and check whether any HOA transfer fees apply.
Seller closing costs: items and ranges
Seller costs usually total about 6 to 10 percent of the sale price when commissions are included. The largest line item is often the real estate commission, which is always negotiated. Other charges include title fees, recording, prorated taxes, and your mortgage payoff.
Common seller line items include:
- Real estate commission, negotiated in the listing agreement
- Owner’s title insurance policy where customary, or as negotiated
- Escrow or settlement fee, often split or assigned in the contract
- Deed recording fee
- Prorated property taxes through the closing date
- Mortgage payoff and any lien payoff fees
- Repairs or seller-paid items agreed in the contract
- Optional home warranty as a concession
- Buyer closing-cost credits within loan program limits
Seller example: $250,000 sale
Assumptions for illustration only:
- Sale price: $250,000
- Mortgage payoff: $100,000
- Commission at 6 percent: $15,000
- Title, settlement, owner’s title policy, and recording: $2,500
- Prorated property taxes and utility adjustments: $1,000
- Repairs or concessions: $1,500
- Estimated net proceeds: $250,000 − $100,000 − $15,000 − $2,500 − $1,000 − $1,500 = $129,000
Your exact net will depend on your payoff, prorations, chosen commission rate, and contract terms. Ask your agent for a net sheet early in the process and refresh it once payoffs and prorations are finalized.
Seller action checklist
- Ask your listing agent for a detailed net-proceeds worksheet before you go on market.
- Request a written mortgage payoff statement, including daily interest through your target closing date.
- Confirm local practice on who pays the owner’s title policy in Kingsbury County and negotiate accordingly.
- Factor in property tax prorations and any special assessments.
- Discuss commission, marketing, and any likely buyer concessions with your agent.
Timing, disclosures, and how you get final numbers
If you are financing, your lender must provide a Loan Estimate within three business days of your application. Before closing, you will receive a Closing Disclosure at least three business days prior to signing. These forms are the best way to see an itemized estimate of your final buyer costs.
The title company issues a title commitment that lists liens and requirements for clear title. Sellers need official mortgage payoff statements so the settlement agent can calculate final proceeds. Property taxes, HOA dues, and sometimes utilities are prorated to the closing date per local rules. Your purchase agreement assigns who pays each fee, and it takes priority over custom.
Local De Smet and Kingsbury County resources
For precise, current figures, contact these local offices and professionals:
- Kingsbury County Register of Deeds for recording fees and required documents.
- Kingsbury County Treasurer or Assessor for property tax due dates and proration rules.
- Local title companies or escrow agents for title insurance rates and settlement fees.
- Local mortgage lenders for lender fees, escrows, and sample Loan Estimates.
- Local real estate brokers for commission expectations and common payors for owner’s title policies.
Smart ways to plan or reduce closing costs
- Compare lenders. Small differences in origination or rate can shift your cash to close.
- Ask about seller concessions within your loan program’s limits. FHA commonly allows up to 6 percent, but confirm with your lender.
- Time your closing. A month-end close can reduce prepaid interest, while your insurance and tax escrows depend on the calendar.
- Review title and settlement quotes. You can choose your provider, so get at least one local quote.
- Negotiate thoughtfully. On the seller side, your commission and any buyer credits meaningfully affect your net.
- Verify county fees early. Recording charges and proration schedules come from Kingsbury County offices.
Buying or selling in De Smet does not have to feel uncertain. With a clear plan, accurate quotes from local offices, and a detailed contract, you can move to closing day with confidence. If you want a local walkthrough of your costs and options, reach out to Molly Hopper for a quick, personalized consultation.
FAQs
How much do buyers in De Smet usually pay at closing?
- Buyer costs, excluding the down payment, commonly run about 2 to 5 percent of the purchase price, but your loan type, lender, and any seller concessions will change the total.
Can a seller in Kingsbury County pay a buyer’s closing costs?
- Yes, if negotiated in the contract, and subject to loan program limits like FHA, VA, USDA, or conventional guidelines that cap seller contributions.
Who pays for the owner’s title insurance policy in De Smet?
- It varies by local custom and contract; in many Midwestern markets sellers often pay, but you should confirm with your agent and title company.
Is there a South Dakota transfer tax on home sales?
- South Dakota generally does not impose a statewide real estate transfer tax in most areas, but always verify any local fees with Kingsbury County.
When will I see my final closing numbers as a buyer?
- Your lender must deliver a Closing Disclosure at least three business days before closing, and the title company will coordinate any final adjustments before you sign.
