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Property condition disclosure
Since South Carolina is not a “Caveat Emptor” or “buyer beware” state, a residential property seller is generally required to disclose the condition of the home to the buyer. Sellers must disclose known defects and problems with the home in a written disclosure statement before both parties sign the purchase contract.
Whether required by law or not, some sellers may prefer to provide the disclosures before an offer has even been presented so that a prospective buyer is more informed beforehand and less likely to withdraw from a deal later on.
In an agent-assisted sale, your listing agent would likely provide you with the required disclosure form(s). However, as a FSBO seller, you can obtain the Residential Property Condition Disclosure Statement form online at eForms.
What will you be asked? In South Carolina, you can expect to disclose any significant defects or issues you’re aware of concerning:
- Water supply and sewage system (water quality and pressure, type of water supply and disposal systems, pipe materials)
- Roof and structural components (age of roof, roof leaks and repairs/modifications, gutters, foundation, slab, fireplaces, chimneys, wood stoves, floors, basement, windows, driveway, storm windows/screens, doors, ceilings, walls, sheds, garage, carport, patio, deck, walkways, fencing, modifications to structural components)
- Plumbing (pipes, fixtures, water heater, disposal, softener, plumbing components)
- Electrical system (wiring, panel, fixtures, A/V wiring, outlets, switches, electrical components)
- Appliances (range, stove, oven, dishwasher, refrigerator, washer, dryer, other appliances)
- Built-in systems and fixtures (fans, irrigation, pool, security, lighting, A/V)
- Mechanical systems (pumps, garage door opener, filtration, energy equipment, safety)
- Heating and cooling systems (components, age, type of systems, fuel source)
- Wood-destroying insects, dry rot, or fungus (wood problems, termite/pest treatment and coverage, pest infestations)
- Zoning laws, restrictive covenants, building codes, land use restrictions, encroachments, and government notices (violations or variances, historic designation, easements, party walls, shared driveway, private roads, released mineral rights, issues affecting the title like legal actions or liens, room additions or structural changes, problems caused by fire, smoke, or water, drainage, soil stability, atmosphere or underground problems, erosion, flooding, wetlands, flood insurance, Federal Emergency Management Agency (FEMA) claims, features such as green energy, recycling, sustainability, or disability, manufactured housing titled by the Department of Motor Vehicles)
- Hazardous conditions or environmental contamination (mold, methamphetamine production, lead-based paint, lead, asbestos, radon or methane gas, formaldehyde, corrosion-causing sheetrock, storage tanks, other hazardous or toxic materials)
- Rental or other lease contract (lease terms and problems, property management company, outstanding tenant charges)
- Meter conservation charge (utility financed or leased property, delinquent charges for gas, electric, water, sewer, and garbage)
- Homeowners association (HOA) (addendum required, HOA fees, common area expenses, access, and problems, resale or rental restrictions, special assessments, restrictions for visitors and animals, assigned parking, regulation by the South Carolina Coastal Zone Management Act, transfer fees)
If in doubt about a problem with the home’s condition, most top real estate agents would recommend you disclose it. In South Carolina, if you know of an issue and choose not to disclose it, and that defect is later discovered, you could be held liable for damages, court costs, and attorney fees. If a new problem occurs after completing the disclosure form, you’ll be required to correct the statement and may have to make repairs.
Richter shares this story about a client he represented who purchased a FSBO home. The seller claimed that a roofing company repaired the roof. The sale went through, but water poured into the house after the first big rainstorm. The new homeowner took the seller to court when a neighbor revealed that he had fixed the roof himself. “My client ended up winning because he had improperly disclosed information that he knew about that was provable and he ended up having to pay a substantial amount of money to my client for his dishonesty,” says Richter.
9. Close the sale — with professional help
South Carolina is one of several states that require a real estate lawyer at closing. An attorney must supervise the closing process, including title search and commitment, recording deeds and other documents, escrow procedure, and disbursement of funds.
In South Carolina, the buyer chooses the closing attorney and pays the fees. But it’s a good idea to invest in the services of an experienced real estate lawyer as you close one of the biggest and most complex deals of your life. By doing so, you’ll minimize your legal and financial risk, plus simplify the process for yourself.
“If you don’t hire a professional to represent you, at least have a consult with an attorney about the contract,” recommends Gila. She encourages all FSBO sellers to engage a lawyer to explain the terms of the contract, including the conditions and buyer’s demands.
Richter agrees that it’s important to hire your own attorney “so that you have somebody protecting your interest if there are any disputes down the line.”
Although you can find free residential purchase agreements online at sites like LawDepot and eForms, having a real estate attorney prepare the contract can safeguard your sale.
Real estate attorney fees can vary depending on location and how much help you want or need. In South Carolina, they generally average $340 per hour — well worth it for professional guidance in closing one of life’s largest legal transactions.
Real estate agents may refer their clients to top attorneys they’ve worked with in the past. But if you are selling by owner, ask your family and friends for referrals or search online for a real estate lawyer in South Carolina on Lawyers.com and FindLaw.
FSBO mistakes to avoid in South Carolina
On your FSBO journey, watch out for these major pitfalls:
Don’t make the mistake made by some FSBO sellers in South Carolina of letting home inspection issues delay or even kill a deal. “Have the pre-inspection done so that you can be ahead of any potential issues,” Richter suggests. Rectify problems ahead of time so the buyer’s home inspection goes much smoother, thus leading to a quicker and less stressful sale.
Richter leaves sellers in South Carolina considering FSBO with this final piece of advice: “Commission is negotiable. If they feel like it’s more valuable to have somebody else handle all the stress and all the connections and all the things that come along with the process, but they don’t want to pay the full commission, negotiate it. You have that right as a seller.”
“Price it right and do not be greedy,” Gila says. “Work with a professional because if you’re not doing that for a living, you probably don’t understand the best way to sell a house,” she advises FSBO sellers in South Carolina.
Alternatives to selling by owner in South Carolina
If you decide you don’t want the hassle or pressure of FSBO, you’ve got other solid options.
Enlist the help of a top-rated real estate agent
Ultimately, the services and price gains you can get with an experienced real estate agent may put more money in your pocket than FSBO. A proven agent is also better equipped to help you achieve your selling and moving timelines.
Richter shares an experience with a client in Charleston who unsuccessfully tried to sell his house by owner to save commission. He placed a sign in the yard and took some photos with his cellphone, but after spending about 40 days on the market, he turned to Richter to sell his home. “Then I stepped in. Brought my drone. We did a virtual 3-D walkthrough. We did a social media blast,” says Richter. A top agent helped the FSBO seller-turned-client sell the home at a price that greatly exceeded his expectations.
Gila shares a similar story in South Carolina’s upstate region. She was in touch with an owner who tried to sell his house by himself for a few months without any success. He took his home off the market and made some changes Gila recommended, like replacing worn carpet and painting the kitchen. With professional photos, a 3-D tour, social media marketing, and competitive pricing, the home received an offer the same day that Gila listed it at an even higher price than he had asked for when selling by owner.
“The most important thing is really to look at your net and if you are netting, even after paying commission, more than what you even thought you were going to be selling for,” says Gila.
Interested in such expertise? HomeLight can connect you to top-performing agents in your South Carolina market. Our free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes only two minutes to receive your matches.
Request a cash offer to buy your South Carolina home
If you’d like to skip the sale prep altogether — plus avoid paying agent commissions — you can opt to sell your home as-is to an all-cash buyer instead.
For a low-stress experience, consider requesting a cash offer from HomeLight’s Simple Sale platform. Tell us a few details about your home, and in as few as 24 hours, we’ll send a no-obligation all-cash offer your way. If you decide to accept the offer, Simple Sale sellers have the ability to close in as little as 7 days.
Without leaving the Simple Sale platform, you’ll also be able to compare your cash offer to an estimation of what your home would sell for on the open market so you can make an informed decision.
Ready to sell your South Carolina home?
Unless you already have a buyer lined up, selling a house by owner in South Carolina requires a significant investment of time and effort. You’ll need to pull your own comps, capture excellent pictures, create a listing, market the house online, field inquiries, host showings, negotiate, and close the deal. And that’s after preparing the house itself.
You also have to consider that FSBO listings tend to sell for less than agent-assisted sales. An experienced agent who knows the area can make recommendations for targeted upgrades to help you maximize your sale price and get a premium offer. This can help to offset or, in some cases, more than make up for the cost of commission — while saving you time and headaches.
If you choose to go FSBO, you should have a good idea now of what to expect from the process. Otherwise, HomeLight would be happy to introduce you to some of the best agents in your South Carolina market.
Writer Hayley Abernathy contributed to this story.
Editor’s note: This blog post is for educational purposes only. HomeLight recommends that you look into the real estate regulations for your area and consult a trusted advisor.
Header Image Source: (Leonel Heisenberg / Unsplash)
