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Budget for more than the purchase price
In Columbia, a $300,000 home doesn’t cost just $300,000. Buyers should set aside 2-5% of the purchase price for closing costs (around $6,000-$15,000), plan for a down payment as low as 3.5% or as high as 20% depending on loan type, and account for property taxes, homeowners insurance and maintenance. Average buyer closing costs in South Carolina run about 1.15% of the purchase price (roughly $3,447 on a $298,817 home), but attorneys, inspections, title insurance and prepaid expenses can push it higher. The more prepared you are for these extras, the smoother your transaction will be.
Below we break down every cost category so you know exactly where your money goes and how to anticipate expenses from offer to closing and beyond.
Here is what buying a $250,000 home in Columbia SC actually costs beyond the purchase price:
Closing costs: Expect 2% to 3% of the purchase price. On a $250,000 home, that is $5,000 to $7,500. This covers lender fees, title insurance, attorney fees (South Carolina is an attorney-closing state, so you must have an attorney at closing), recording fees, and prepaid items like homeowners insurance and your first escrow deposit.
Home inspection: Typically $325 to $475 for a standard inspection. Worth every dollar. If the inspector finds something significant, you can negotiate a repair credit or price reduction. If they find nothing, you have peace of mind.
Appraisal: Your lender will require one if you are getting a mortgage. Budget $500 to $600.
Richland County property taxes: The millage rate for owner-occupied homes in Richland County runs roughly $1,200 to $1,700 per year on a $250,000 assessed home, depending on exact location. South Carolina taxes owner-occupied homes at 4% of assessed value, which is a significant discount from the 6% investment property rate.
Homeowners insurance: Budget $1,200 to $1,800 per year for a standard policy in the Columbia area. Rates vary based on age of home, roof condition, and whether the property is in a flood zone.
Total estimated out-of-pocket to close on a $250,000 home, not counting your down payment: $7,000 to $11,000 in closing costs and setup costs. Most buyers need to have this liquid in addition to their down payment. It is one of the most commonly underestimated costs for first-time buyers.