Staring at a great Sioux Falls listing and wondering what you will actually bring to the closing table? You are not alone. Beyond your down payment, buyers pay a mix of fees and prepaids that can surprise first-timers and seasoned movers alike. In this guide, you will learn the typical closing cost range, what each line item covers, Minnehaha County specifics, and a simple way to estimate your cash to close. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaids required to complete a home purchase beyond your down payment. They cover lender charges, title and settlement services, recording, and time-based items like interest, taxes, and insurance.
Most buyers in Sioux Falls can plan on closing costs equal to about 2% to 5% of the purchase price, not including the down payment. Your final number depends on loan type, lender pricing, title insurance, and prepaid items.
Your lender must provide a Loan Estimate early in the process and a final Closing Disclosure at least three business days before you sign. The Closing Disclosure itemizes every charge so you can review and ask questions before closing.
Typical totals in Sioux Falls
Use 2% to 5% of the purchase price for planning. Some fees are flat or semi-flat, while others scale with price. South Dakota does not have a statewide transfer tax, so you avoid a cost buyers pay in many states. However, prepaids for taxes and insurance can be meaningful, especially for higher-priced homes or when setting up an escrow account.
Who pays what can be negotiated. Buyers typically pay lender-related and most title and settlement fees. In some transactions, the seller pays for the owner’s title policy. Your purchase agreement will spell out any seller credits that reduce your cash to close.
Line-by-line costs
Lender fees
- Loan origination: often 0.5% to 1.5% of the loan amount. Some lenders price this into the rate.
- Discount points: optional. One point equals 1% of the loan amount to buy down the rate.
- Underwriting and processing: commonly $400 to $1,200 combined.
- Credit report: typically $25 to $50.
- Appraisal: about $400 to $700 for a standard single-family home; more for complex properties.
- Small services: flood certification, tax service, and similar items can total $10 to $200.
These items appear on your Loan Estimate and Closing Disclosure. Ask your lender to explain rate-versus-cost trade-offs so you can choose the right balance.
Title and settlement
- Title insurance: the lender’s policy is required. The owner’s policy is optional but recommended. Premiums are one-time and tied to price.
- Title search and exam: a flat fee for research to confirm clear title.
- Closing or escrow fee: often $300 to $800 for handling documents and funds.
Local custom on who pays the owner’s policy can vary. Ask early so you can budget accurately.
Recording and county fees
- Recording fees: the Register of Deeds charges per document and per page. This is typically a modest total that covers recording the deed and mortgage.
- Transfer tax: South Dakota does not have a statewide real estate transfer tax. Most Sioux Falls buyers pay recording fees but not a state transfer tax.
Prepaids and escrow deposits
- Prepaid interest: interest from your closing date to month-end.
- Homeowners insurance: many lenders collect the first year’s premium at closing.
- Property tax prorations: prorated between buyer and seller based on the county calendar.
- Escrow account setup: lenders often collect a few months of tax and insurance to start the escrow cushion.
These items can be significant. Your closing date, tax cycle, and insurance premium drive the totals.
Other potential costs
- HOA transfer fees and prorated dues if the property has an association.
- Survey if required, generally $300 to $900.
- Attorney fees if you hire one, though not required in South Dakota.
- Upfront mortgage insurance if your loan type requires it.
Minnehaha County specifics
Recording fees and where to verify
Recording fees are set by the Minnehaha County Register of Deeds. They are flat or per-page charges and are required to record the deed and mortgage. For exact amounts, verify with the Register of Deeds before closing.
South Dakota transfer tax
There is no statewide real estate transfer tax in South Dakota. In Sioux Falls, you typically pay recording fees but not a state transfer tax. Confirm any local documentary charges with your title company.
Property tax calendar and prorations
Property taxes are administered by Minnehaha County. At closing, taxes are prorated based on the period of ownership. Whether you receive a credit or pay a prorated amount depends on the timing relative to the county’s billing cycle. For precise dates and rates, contact the Minnehaha County Treasurer or ask your title company to explain your proration on the Closing Disclosure.
HOA and neighborhood assessments
Some Sioux Falls neighborhoods, including parts of Arcadia Heights and Prairie Green, have HOAs. Expect potential HOA transfer fees and prorated dues at closing. Ask the HOA for current fee schedules and whether there are any special assessments.
Closing location and timeline
Most Sioux Falls closings occur at a local title company or escrow office. Your lender must deliver the final Closing Disclosure at least three business days before signing. Bring a valid ID and confirm with the title company how they want your funds delivered, either a wire or a cashier’s check.
How costs change by price point
Some fees are fixed, like the appraisal or many settlement charges. Others scale with price, like title insurance and percentage-based lender fees. That means total dollar costs rise with price even if your percentage stays near 2% to 5%.
Entry market example: $200,000 purchase
- 2% to 5% planning range equals $4,000 to $10,000.
- Fixed costs may make up a larger share of the total at this price.
Mid-market example: $350,000 purchase
- 2% to 5% range equals $7,000 to $17,500.
- Title insurance and any percentage-based lender fees rise proportionally.
Upper price example: $600,000 purchase
- 2% to 5% range equals $12,000 to $30,000.
- Higher title insurance premiums and larger escrow deposits for taxes and insurance increase the dollar amount.
Properties in HOA neighborhoods will include HOA transfer and prorated dues. New construction may include builder-specific fees, and some builders offer incentives that cover a portion of buyer closing costs. Review builder contracts closely so you understand what is and is not included.
Estimate your cash to close
Use this step-by-step approach to build a realistic estimate. Ask your lender and title company for quotes to refine the numbers.
- Down payment: start with your percentage of the purchase price.
- Lender charges: include origination at 0.5% to 1.5% of the loan amount, any discount points, appraisal at $400 to $700, and a $25 to $50 credit report.
- Title and settlement: add the lender’s title policy, optional owner’s policy, title search, and a $300 to $800 closing fee. Include an estimate for recording fees.
- Prepaids: first year of homeowners insurance, prepaid interest for the rest of the month, and property tax prorations per Minnehaha County’s calendar.
- Escrow deposits: 2 months of cushion plus upcoming months for taxes and insurance, if your lender requires an escrow account.
- Subtract any seller credits or builder incentives.
- Sum everything to get your estimated cash to close.
Label your numbers as estimates until you receive the Closing Disclosure. The three-day review window is your chance to verify each item before you bring funds to closing.
Buyer checklist for Sioux Falls
- Get a written Loan Estimate from your lender.
- Request a title quote and settlement fee estimate from your local title company.
- Verify recording fees with the Minnehaha County Register of Deeds.
- Ask who typically pays the owner’s title policy and confirm in your offer.
- Confirm HOA transfer fees and request any resale documents early.
- Ask your lender if an escrow account is required and how the cushion is calculated.
- Decide how you will deliver funds at closing and verify wire instructions directly with the title company.
Ways to reduce or control costs
- Shop lenders and compare Loan Estimates. Small changes in fees or rate can save thousands over the life of the loan.
- Negotiate seller concessions within lender limits. Credits can cover part of your closing costs.
- Ask whether the seller will pay for the owner’s title policy if that is customary in your area.
- Consider lender credits versus discount points. Credits lower upfront costs at the expense of a higher rate.
- Compare quotes from multiple title companies for title insurance and settlement fees.
When to consider seller concessions
Seller credits are common when you need help with upfront costs or when market conditions favor buyers. If you are close to maxing out your cash to close, a modest seller credit can bridge the gap. Be sure your lender confirms the credit is within program limits and that your appraisal supports the contract price.
Ready to buy in Sioux Falls?
If you want a calm, data-driven path to closing with clear numbers at every step, you are in the right place. We will help you estimate costs, structure offers that protect your budget, and coordinate a smooth closing with your lender and title team. For curated guidance on neighborhoods, contracts, and costs, connect with Amanda Buell Homes.
FAQs
What are typical buyer closing costs in Sioux Falls?
- Most buyers can plan on 2% to 5% of the purchase price, excluding the down payment, with final totals driven by loan type, lender fees, title insurance, and prepaids.
Do Sioux Falls buyers pay a transfer tax in South Dakota?
- South Dakota does not have a statewide real estate transfer tax, so Sioux Falls buyers typically pay recording fees but not a state transfer tax.
How are Minnehaha County property taxes handled at closing?
- Taxes are prorated based on the county’s calendar and the closing date, and your Closing Disclosure will show whether you owe or receive a credit.
What lender fees should I expect on a mortgage in Sioux Falls?
- Common items include origination of 0.5% to 1.5% of the loan amount, optional discount points, underwriting and processing, a $25 to $50 credit report, and a $400 to $700 appraisal.
Who usually pays for the owner’s title insurance policy locally?
- Practices vary by transaction, and who pays is negotiable; ask your agent or title company early and confirm in your purchase agreement.
What should I bring to my Sioux Falls closing appointment?
- Bring a government-issued photo ID and your funds to close as directed by the title company, usually via wire transfer or a cashier’s check.
