Closing Costs in Murrells Inlet: What Buyers Should Expect

Wondering how much cash you will need to close on a home in Murrells Inlet? You are smart to plan ahead, especially in a coastal market where insurance and HOA rules can change your bottom line. In this guide, you will see what closing costs cover, who typically pays what in Georgetown County, realistic ranges to budget, and the exact steps to get a personalized estimate for your property. Let’s dive in.

What closing costs cover in South Carolina

Closing costs are the fees and prepaids required to finalize your purchase. In South Carolina, they usually fall into a few buckets:

• Lender fees: origination, discount points if you choose them, appraisal, credit report, underwriting, and processing.
• Title and settlement: title search, lender’s title insurance policy, and a settlement or closing fee.
• Government and recording: recording the deed and mortgage with Georgetown County.
• Prepaid items: the first year of homeowner’s insurance, prepaid property taxes, prepaid mortgage interest, and your initial escrow deposits for taxes and insurance.
• Inspections and reports: general home inspection, pest or wood-destroying organism inspection, and others like septic or wind if needed.
• HOA or condo charges: transfer or resale fees, and any required community documents.

Who typically pays what in Murrells Inlet

Local custom matters. Many items can be negotiated in your contract, but here is what buyers most often see.

Buyer-paid items

• Loan origination and lender fees
• Discount points if you elect to buy down your rate
• Appraisal and credit report
• Underwriting and processing
• Lender’s title insurance policy
• Title search and lien search
• Settlement or escrow fee in some cases
• Mortgage recording fee
• Survey if required by your lender
• Home inspections and specialized inspections
• Flood certification and any flood-related escrow setup
• Prepaid homeowner’s insurance, property taxes, and mortgage interest
• Initial escrow deposits for taxes and insurance
• Private mortgage insurance or upfront mortgage insurance if your loan requires it
• Possible HOA or condo transfer or resale fees depending on community rules

Seller-paid items

• Real estate broker commissions, typically a combined, negotiable amount often in the 5% to 6% range
• Payoff of the seller’s existing loans and related fees
• Seller’s prorated share of property taxes up to the closing date
• Agreed repairs and any outstanding HOA assessments
• Owner’s title insurance is often paid by the seller in South Carolina, though customs can vary by county and deal

Negotiated or split items

• Owner’s title insurance if parties agree to reassign it
• Settlement or closing fee
• HOA transfer or resale document fees
• Repairs based on inspections
• Seller concessions that credit some of your costs, subject to loan program limits

How much to budget

A simple rule of thumb is to set aside about 2% to 5% of the purchase price for buyer closing costs, not including your down payment. Where you land in that range depends on the loan you choose, insurance and flood factors, HOA charges, and whether the seller gives you a credit.

Here are rough examples to frame your budget:

• $300,000 purchase: 2% is about $6,000; 3% is about $9,000; 4% is about $12,000.
• $500,000 purchase: 2% is about $10,000; 3% is about $15,000; 4% is about $20,000.
• $800,000 purchase: 2% is about $16,000; 3% is about $24,000; 4% is about $32,000.

You will trend toward the lower end if the seller pays the owner’s title policy, you are not in a flood zone, and lender fees are lean. You will trend higher if you add discount points, need flood insurance, face higher coastal homeowner’s premiums, or have HOA transfer and condo documents to order.

Coastal factors that move the numbers

Flood zones and insurance

Murrells Inlet sits along the Grand Strand, so many properties are in FEMA flood zones. If your home is in a Special Flood Hazard Area and you use a federally backed loan, your lender will likely require flood insurance. Premiums vary widely and depend on elevation and building features, so request a flood zone determination and quotes early.

Homeowner’s insurance and wind

Coastal wind exposure can increase homeowner’s insurance premiums and may come with wind or hail deductibles. Some insurers accept wind mitigation evidence to reduce premiums if the home has features such as rated windows or specific roof tie-downs. Second-home or non-owner-occupied policies often cost more and follow different underwriting rules.

HOA and condo fees

Planned communities and condo buildings are common in Murrells Inlet. Budget for possible transfer or resale certificate fees, and allow time for document turnaround. Fees vary by community, and payment responsibility can be set by HOA rules or negotiated in your contract.

Title and settlement in Georgetown County

South Carolina closings are handled by title companies or closing attorneys. In many transactions, sellers pay for the owner’s title insurance policy, but local custom can vary. Work with a Georgetown County team that knows recording procedures, prorations, and county fee schedules.

Property taxes and proration

Property taxes are based on assessed value and local millage rates. At closing, the seller typically pays their prorated share up to the closing date, and you fund your escrow account according to lender requirements. Ask for current tax figures early so your Loan Estimate and escrow deposits are accurate.

First-time vs second-home buyers

If you are a first-time buyer

• Clarify down payment vs closing costs: smaller down payments can add mortgage insurance and may increase upfront prepaids.
• Use the Loan Estimate: your lender must send this within three business days of application, so you can see fees line by line.
• Negotiate credits: request seller concessions within your loan program limits to bring cash to close down.
• Plan inspections: general, pest, and any property-specific inspections help you avoid surprises later.

If you are buying a second home or investment

• Expect higher insurance: second-home or non-owner policies can cost more, especially near the coast.
• Prepare for lender reserves: some programs require additional months of reserves.
• Watch HOA rules: some associations have rental guidelines or added fees at purchase, which may impact your plan and timing.

How to reduce your out-of-pocket costs

• Compare lenders for rates and fees, and consider loans without upfront points if you prefer to limit cash at closing.
• Ask for seller concessions during negotiation, within your loan’s permitted limits.
• Review title and settlement quotes from local providers.
• Confirm whether the seller will pay the owner’s title policy.
• Order only the inspections you need, but protect your due diligence.

Step-by-step to get your exact number

1. Request Loan Estimates from at least two local lenders for your specific loan program and property address.
2. Ask a Georgetown County title company or closing attorney for a title quote and settlement estimate. Clarify who is paying the owner’s title policy.
3. Get a flood zone determination and insurance quotes. If the property is in a flood zone, ask about elevation certificates and coverage options.
4. Contact the HOA or condo manager for the resale packet fee, transfer fee, and timing.
5. Obtain quotes for inspections, including pest and any property-specific needs like septic or pool.
6. Review the Loan Estimate alongside the title quote and ask for explanations of unfamiliar line items.
7. Confirm the maximum seller concessions allowed by your loan type so you can negotiate strategically.

Common fees and realistic ranges

• Appraisal: about $400 to $800
• Home inspection: about $300 to $700; specialized inspections additional
• Title and settlement fee: about $400 to $1,200
• Owner’s title policy: amount varies by price and local custom, often seller-paid
• Lender’s title policy: buyer-paid, based on loan amount
• Recording fees: typically low, set by the county
• Homeowner’s insurance: coastal premiums often $1,500 or more per year depending on coverage and risk
• Flood insurance: ranges from a few hundred to several thousand dollars annually depending on the flood zone and elevation
• Prepaid property taxes and escrow deposits: vary by current taxes and lender requirements

Wrap up: plan your cash to close with local guidance

When you know what to expect, you can move forward with confidence. In Murrells Inlet, plan for 2% to 5% of the purchase price for buyer closing costs, then layer in coastal variables like flood and wind insurance and HOA fees. Pair a precise Loan Estimate with a local title quote, flood-insurance pricing, and HOA details, and you will have a clear, reliable cash-to-close number.

If you want a local, step-by-step plan for your purchase, reach out to Dan Benish. You will get disciplined guidance and a clear path to the closing table.

FAQs

What are typical buyer closing costs in Murrells Inlet?

• Most buyers budget 2% to 5% of the purchase price for closing costs, not including the down payment.

Which closing fees are prepaid items vs transaction fees?

• Prepaids include your first year of insurance, prorated property taxes, per diem mortgage interest, and initial escrow deposits; transaction fees include lender, title, inspections, and recording.

Does flood zone status change my closing costs?

• Yes. If your lender requires flood insurance, you will add that premium and related escrow prepaids, which can increase your cash to close and monthly payment.

When will I see exact numbers for closing?

• Your lender must provide a Loan Estimate within three business days of application, and the title company will issue a final settlement statement shortly before closing.

Can the seller pay some of my closing costs?

• Seller concessions are negotiable and can reduce your out-of-pocket costs, but limits apply based on your loan program.

What HOA or condo fees might I see at closing?

• Communities often charge transfer or resale document fees and may require capital contributions; amounts and who pays vary by HOA and can affect timing and cost.