The South Dakota Home-Selling Process: Your Step-by-Step Checklist

An offer is more than just a price — it includes the proposed closing date, financing type, earnest money amount, contingencies (inspection, financing, appraisal, sale of buyer's home), requested seller concessions, and any personal property the buyer wants you to include. Have your agent walk you through every term and explain how it affects what you'll actually walk away with at closing.

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Ask your agent for a seller net sheet that subtracts mortgage payoff, agent commissions, the South Dakota transfer fee, title and escrow charges, prorated property taxes, any agreed buyer concessions, and other closing costs from the offer price. The highest offer is not always the best one — what matters is the cash you actually receive after every deduction.

Cost: $0

After the NAR Sitzer/Burnett settlement that took effect August 17, 2024, the local MLS no longer publishes offers of buyer-broker compensation. Buyers and their agents now negotiate that fee in a written buyer representation agreement and may ask you for a seller concession in the purchase contract to cover it. You can agree, counter with a smaller concession, or decline — it's now part of every offer you weigh.

Cost: varies

If an offer is close but not quite right, send back a written counteroffer changing price, closing date, contingencies, included items, or concessions. Keep all negotiations in writing — verbal promises are not enforceable in real estate. Multiple rounds of counters back and forth are normal and expected.

Cost: $0

Once you and the buyer agree on terms, both sides sign the purchase contract. South Dakota does not mandate a single state form — most brokerages use the form published by the South Dakota Association of REALTORS, but your responsible broker may designate a different approved form. Make sure every blank is filled in, every page is initialed, and you keep a fully executed copy.

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After contract signing, the buyer's earnest money must be deposited promptly into the responsible broker's trust account — typically within 1-3 business days under South Dakota Commission rules. Only the responsible broker is authorized to hold those funds. Ask your agent to forward proof of the trust account deposit so you know the buyer has money committed.

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If your South Dakota Real Estate Condition Disclosure Statement was not handed to the buyer before they signed the offer, the buyer has 3 business days from receipt to rescind the contract without penalty under SDCL 43-4-37. Make sure your agent gets the buyer's signed acknowledgment of receipt right away so this rescission window opens and closes on a documented date.

Cost: $0

If the same brokerage or licensee ends up representing both you and the buyer, South Dakota calls that a Limited Agency relationship, and both parties must sign the SDREC-approved Limited Agency Consent form in writing before the agent provides services to both sides. Retroactive consent obtained after the conflict is in play does not count and can be a disciplinary issue for the brokerage.

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If you learn about a new material issue after delivering your condition disclosure — a leak appears, a system fails, you discover something you hadn't noticed — tell your agent and amend the disclosure right away. South Dakota's material-fact duty under SDCL 36-21A-71 does not stop at contract signing, and hiding a known defect can expose you to liability after closing.

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Book movers, line up your next housing, and start packing rooms you don't use every day. Most South Dakota contracts require you to deliver possession at closing — if you need an extra day or two in the home after closing, negotiate a written post-closing occupancy agreement (sometimes called a use-and-occupancy addendum) instead of assuming the buyer will be flexible.

Cost: $500-5000 typical

Once you're under contract, do not remodel, remove built-in items the buyer expects to receive, or replace systems you described in your disclosure without telling the buyer in writing. Any change can trigger a disclosure update or breach the contract. Keep the home in the same condition the buyer agreed to buy until closing.

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The buyer will hire a licensed home inspector during their inspection contingency. Plan to leave the home for several hours, make sure all utilities are on, unlock crawl spaces, attics, electrical panels, sheds, and gates, and move stored items so the inspector can reach the water heater, furnace, and any sub-areas. The more access they have, the fewer surprises later.

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After the inspection, the buyer usually sends a written list of repair, credit, or price-reduction requests. Read the inspection report itself — not just the buyer's summary — so you can tell what's a real safety or system issue versus a cosmetic preference. Your agent should help you understand which items are typical seller-fix items and which are buyer-take-it-as-is items in South Dakota.

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For anything significant — roof patches, electrical work, plumbing, HVAC, foundation, mold or radon — get a written quote from a licensed South Dakota contractor before you commit to making the repair yourself. Knowing the actual cost helps you decide between fixing the item, offering a credit at closing, or pushing back on the request.

Cost: $0 for estimates

You can agree to make repairs, offer a closing credit instead of doing the work yourself, reduce the price, refuse some or all of the requests, or any combination. Whatever you decide, put it on a written inspection response or contract amendment signed by both sides. A verbal agreement is not enforceable, so keep everything on paper.

Cost: varies

If the buyer's inspector finds a defect you genuinely didn't know about — a hidden plumbing leak, active termites, an unsafe electrical panel — South Dakota's material-fact duty under SDCL 36-21A-71 means you should update your condition disclosure to reflect what you now know, even if this deal still closes. If this buyer walks away, the next buyer is entitled to the same updated information.

Cost: $0

The buyer's lender will hire a licensed appraiser to determine the home's fair-market value for loan purposes. The appraiser usually needs 30-60 minutes inside — make sure the home is presentable, every room is accessible, and the exterior is tidy because they'll measure square footage and inspect the lot, outbuildings, and overall condition.

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If you've made recent upgrades — new roof, new HVAC, kitchen or bath remodel, finished basement, new well or septic — leave a one-page list with permits, dates, and rough costs on the kitchen counter for the appraiser. You can also share recent neighborhood sales your agent thinks are good comparables. The appraiser doesn't have to use any of it, but documentation often helps.

Cost: $0

If the appraisal comes in below the contract price, the buyer's lender will only loan against the appraised value. You typically have a few options: lower the price to match, ask the buyer to bring extra cash, split the gap, or contest the appraisal with new comparables (called a reconsideration of value). Talk through these options with your agent before the report lands so you're not making a panic decision.

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Your agent should follow up with the buyer's lender to confirm the loan moves from pre-approval to clear-to-close on time. If the buyer's financing contingency deadline passes without removal or a written extension, your contract gives you remedies — know what those are before the deadline so you don't waive them by sitting still.

Cost: $0

South Dakota closings are typically run by a title insurance company or an attorney acting as a title agent — not by an independently retained attorney as a closing requirement. The title company will search title, clear any old liens or judgments, prepare the deed, and issue the title insurance policies. Respond quickly to any title issues they flag (old mortgage releases, name discrepancies, boundary questions), because unresolved items can delay closing.

Cost: varies

The title company will prepare a Closing Disclosure or settlement statement listing every credit and charge — sale price, payoff of your mortgage, commissions, the South Dakota transfer fee, prorated property taxes, agreed buyer concessions, and your final net proceeds. Compare it line by line to the seller net sheet you got earlier and ask the title officer about any number that surprises you before you sign anything.

Cost: $0

South Dakota charges a real property transfer fee under SDCL 43-4-21 of $0.50 for every $500 of sale price (or fraction of $500) — about $1 per $1,000, or 0.10% of the price. On a $400,000 sale that's $400. The fee is paid at closing based on the consideration stated in the deed and is conventionally shown as a seller cost on the settlement statement, though who actually pays it is negotiable in the purchase contract.

Cost: 0.10% of sale price

Call the electric, gas, water, sewer, trash, and internet providers to schedule a final read or transfer on the day of or day after closing. Do not cancel your homeowners insurance before closing — keep it active through the closing date because you still own the home until the deed records. Cancel the day after closing so any unexpected post-signing issues are still covered.

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If you're not a U.S. citizen or U.S. resident for tax purposes, federal law (the Foreign Investment in Real Property Tax Act, 26 U.S.C. 1445) requires the buyer to withhold up to 15% of the gross sale price and remit it to the IRS at closing. South Dakota has no separate state version — the federal rule controls entirely. Talk to a tax pro or attorney early because there are exemptions and reduced rates, but they require specific IRS forms filed before closing.

Cost: varies

Round up every house key, garage remote, gate clicker, smart-lock code, appliance manual, and product warranty that goes with the home. Buyers expect to receive these at closing or with the keys handover. Put them all in one labeled box or envelope so nothing is forgotten on closing day.

Cost: $0

Most South Dakota contracts allow the buyer a final walkthrough within 24-72 hours of closing to confirm the home is in the agreed condition, that any negotiated repairs were completed, and that included items are still there. Have the home empty (or close to it), broom-clean, and have receipts for any agreed repairs ready to share so the walkthrough doesn't become a renegotiation.

Cost: $0

Bring a current government-issued photo ID, any documents the title company requested (trust documents, divorce decree, death certificate, power of attorney), and your bank wire instructions for receiving sale proceeds. If you've moved out of state, ask the title company in advance whether you can sign remotely with a mobile notary, by mail, or with a power of attorney.

Cost: $0

At closing you'll sign the deed transferring ownership, an affidavit of title, the settlement statement, any required tax forms, and a few title-company affidavits. Read each document and ask the title officer to explain anything you don't recognize. Once everything is signed and the buyer's funds arrive, the title company will record the deed with the county Register of Deeds and disburse funds.

Cost: $0

Once the deed records and the buyer's funds disburse, transfer all keys, remotes, and access codes per your contract's possession terms. Most South Dakota contracts give possession at recording or by a specific time on the closing date — confirm the exact moment with your agent so you don't lock the buyer out or leave the home accessible too early.

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The title company will either wire your proceeds to your bank or hand you a check after closing and recording. Wires can take a few hours to a full day to arrive depending on bank cutoff times. Confirm the amount matches the final settlement statement and follow up with the title company immediately if anything looks off.

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You'll need your closing documents to report the sale on next year's tax return. Keep the settlement statement, a copy of the recorded deed, proof of any capital improvements you made over the years, and the IRS Form 1099-S the title company files (if applicable). Talk to your tax preparer about the federal capital-gains exclusion for primary homes, which can shield up to $250,000 of gain ($500,000 if married filing jointly).

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