Agent Compensation
This is usually the biggest cost. It's set in your listing agreement and it's always negotiable. Since 2024, sellers also decide whether to offer anything toward the buyer's agent, and buyers negotiate their own agent's pay in a written agreement. I'll walk you through your options before you sign anything.
South Dakota Transfer Fee
South Dakota charges a transfer fee of 50 cents for every $500 of the sale price, and the seller pays it. On a $300,000 home, that's $300.
Your Mortgage Payoff
Any remaining loan balance is paid off at closing, along with any interest owed up to the closing date.
Property Taxes
South Dakota property taxes are paid in arrears, meaning this year's bill covers last year. At closing, you'll usually credit the buyer for the taxes owed for the time you owned the home. Your title company works out the exact amount.
Title and Closing Fees
Expect a closing fee from the title company and possibly the owner's title insurance policy. Who pays for what is negotiable, so it's spelled out in your purchase agreement.
Repairs, Credits, and Concessions
After the inspection, buyers may ask for repairs or a credit. Some buyers also ask the seller to help with their closing costs. These are negotiated offer by offer.
Getting Your Home Ready
Small things like paint, deep cleaning, landscaping, and staging can make a big difference in how fast your home sells and for how much. White Spruce can help with design and staging too.
Taxes on Your Profit
South Dakota has no state income tax. For federal taxes, many homeowners can exclude up to $250,000 of profit ($500,000 for married couples) on a main home they've owned and lived in for at least two of the last five years. Every situation is different, so check with a tax professional.
Want a real number for your home? Start with a instant home value, then book a call and I'll compare your home to recent nearby sales and show you an estimate of what you'd walk away with after costs.
This is general information, not legal or tax advice. Your title company and tax professional can give you exact figures.
Common Questions
What is the South Dakota real estate transfer fee?
South Dakota charges a transfer fee of 50 cents for every $500 of value, paid by the seller. On a $300,000 sale, that's $300.
Does South Dakota have a state income tax on home sales?
South Dakota has no state income tax. Federal tax rules still apply, so talk with a tax professional about your situation.
Are real estate commissions negotiable?
Yes. Commissions are not set by law and are always negotiable between you and your agent.
Written by Lacie Packard, REALTOR®, White Spruce Real Estate, Keller Williams Realty Sioux Falls. Updated October 2026.