How to Buy a House in South Dakota
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$321,393
Closing Costs
$11,917
3.71% of price
Property Tax Rate
0.99%
$2,614/yr median
Days on Market
50
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
0.1%
$0.50 per $500
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Key Facts About Buying in South Dakota
- ✓No state income tax
- ✓Unlimited homestead exemption value
- ✓Both judicial and non-judicial foreclosure
- ✓Sioux Falls is the primary housing market
The Home Buying Process in South Dakota
Buying a home in South Dakota follows a 10-step process. South Dakota does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in South Dakota
SDHDA First-Time Homebuyer Program
Below-market rate mortgages
Below-market rates + DPA optionsIncome: Up to $98,800
Cost of Buying a Home in South Dakota
| Down Payment (3.5% FHA) | $11,249 |
| Down Payment (20% Conventional) | $64,279 |
| Average Closing Costs | $11,917 |
| Transfer Tax | $321 |
| Annual Property Tax (est.) | $3,182/yr |
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Legal & Regulatory Details in South Dakota
Homestead Exemption
Available
Unlimited value, up to 1 acre in city
Licensing Authority
South Dakota Real Estate Commission
South Dakota Real Estate Law Overview
| Conveyance Document | Warranty deed |
| Security Instrument | Mortgage |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | No |
| Seller Disclosures | Sellers must disclose known issues reducing value or affecting condition; they must certify that the property has the legally required number of smoke detectors. Murders, suicides or felonies within the past year must be disclosed, but paranormal activity need not be. |
