Closing on Your Home

The big day has finally arrived – you’re closing on your home! In South Carolina, real estate attorneys manage the closing transaction so the meeting takes place at the closing attorney’s office.

Typically, the buyer and seller, along with their agents, attend the closing. Most of the meeting is spent with the buyer reviewing and signing a stack of paperwork (which the closing attorney will explain). As the seller, you are there primarily to turn over the keys – and may be able to come towards the end of the closing.

HUD-1 Statement

One of the key closing documents is the HUD-1 statement, which is essentially a balance sheet that lists the selling price of the home, your payoff amount for the current mortgage, and any amount above the selling price (profit) you will receive when the mortgage is paid and closing costs are settled.

Closing Costs

Most of the closing costs are incurred by the buyer, with only a few costs falling on the seller’s side, such as title preparation fees and the agents’ commissions. However, many buyers will ask the seller to help with their closing costs (the request is typically included in the offer to purchase).

A seller’s willingness to cover closing costs is largely driven by market conditions. In a buyer’s market, it’s not unusual for a seller to cover at least a portion of the buyer’s closing costs. In a seller’s market, buyers are much less likely to have much, if any, closing costs covered by the seller.