Real Estate Information

Below are most of the closing costs involved in purchasing real estate in the Hilton Head Island area. Some of these costs are specific to our area, but all are required. States have different requirements so be sure you ask about the cost in the state you are viewing property.

  • Attorney Fees: The South Carolina Supreme Court requires real estate closings be handled by an attorney. Typical charges for real estate closings on Hilton Head are $600 to $800.

  • Title Search: A title search is done to make sure there are no outstanding mortgages, liens, or rights of third parties which affect the title and to verify the seller is the rightful owner. Cost are $250 to $350

  • Title Insurance: Its exactly what it says, it insures the title against any claims by other parties. Cost are approximately $3 per $1,000 for the first $50,000, $2.75 for the next $50,000 and $2.50 per $1,000 above that, plus a $25 binder fee. The attorney will be able to give you an exact cost prior to closing.

  • Hilton Head Island Transfer Fee: This fee must be paid by the buyer and is charged by the Town. It is 1/4 of 1% of the purchase price. Example: 350,000 X .0025 = $875. This money is put back into the community in the form of bike paths, parks, beach access and parking etc.

  • Shipyard Property Transfer Fee: Each property (home, villa or lot) that sells in Shipyard has to pay 1/2 of 1% of the purchase price at closing. Buyers and Sellers can negotiate who pays the fee.

  • Recording Fee: Cost to record the deed and misc. items. $25 to $100


  • Appraisal Fee: Your lender will require and order a current appraisal of the property to verify their loan-to-value. The costs are approximately $400.

  • Credit Report: Of course all lenders require a credit report. $50 to $75

  • Application Fee: Some lenders require an application fee or upfront processing fee. You should inquire from any company about their fees for the loan. Typical fee is around $400

  • Origination Points: Some loans require “points” at closing. These are a percentage of the loan amount(usually 1%) which the lender requires be paid up front. They are charged to buy-down the interest rate or to get a special or specific type of loan. Be sure an ask the lender if points are necessary.

  • Home Inspections: It is always wise to have a property inspected prior to closing to verify its condition and let you know if there are any defects. These fees range from $350 and up depending on the size of the property.

  • Electric Utility Deposit: $100 The attorney will have Palmetto Electric transfer the electric billing to you as of the day of closing. Palmetto Electric requires this deposit which it refunds after one year.

Make sure your lender provides you with an “estimate of closing cost” after the first few days of application.

Contact us today, if you have any questions.

Shipyard Real Estate Willy Fanning Realtor Hilton Head Island and Bluffton SC

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    Shipyard Real Estate Willy Fanning Realtor Hilton Head Island and Bluffton SC