How to Buy a House in South Dakota: Step-by-Step Guide
Follow these 10 steps to navigate the home buying process in South Dakota. South Dakota does not require an attorney at closing.
Check Your Credit Score & Finances
Review your credit report, calculate your debt-to-income ratio, and determine how much you can afford. Most lenders want a credit score of 620+ for conventional loans, or 580+ for FHA loans.
Get Pre-Approved for a Mortgage
Contact multiple lenders to compare rates and get a pre-approval letter. This shows sellers you're a serious buyer and tells you exactly how much you can borrow.
South Dakota Note: The current FHA loan limit in South Dakota is $472,030.
Find a Real Estate Agent
Work with a licensed South Dakota real estate agent who knows your target area. Agents are regulated by the South Dakota Real Estate Commission.
Search for Homes & Make an Offer
Browse listings in South Dakota where the average home price is $321,393. Homes typically stay on market for 50 days. When you find the right one, your agent will help you submit a competitive offer.
Get a Home Inspection
Hire a licensed home inspector to evaluate the property's condition. This typically costs $300-$500 and can save you from expensive surprises.
Secure Your Financing
Finalize your mortgage application, lock in your interest rate, and provide all required documentation to your lender. The lender will order an appraisal.
Get Homeowners Insurance
Shop for homeowners insurance in South Dakota. Your lender will require proof of insurance before closing. Compare at least 3-4 quotes.
Review Closing Disclosure
You'll receive a Closing Disclosure at least 3 business days before closing. In South Dakota, average closing costs are $11,917 (3.71% of the home price). Review every line carefully.
Close on Your New Home
At closing, you'll sign all final documents, pay your closing costs, and receive the keys. South Dakota does not require an attorney at closing, though you may choose to hire one.
Move In & File Your Homestead Exemption
Congratulations! After moving in, file for South Dakota's homestead exemption (Unlimited value, up to 1 acre in city) to reduce your property taxes.
South Dakota Legal Quick Reference
Conveyance
Warranty deed
Security
Mortgage
Foreclosure
Non-Judicial
Attorney
Optional
Seller Disclosure Requirements
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.
