Jeff Merrill | Sioux Falls Realtor

Here’s the hard truth I tell every seller who asks me where to set their number: the market doesn’t care what you need to walk away with. It cares what buyers are actually paying for homes like yours, right now, in your part of the Sioux Falls metro.

And in 2026, buyers are paying attention like never before.

About 80% of homeowners still expect to sell at or above their asking price. Only around 40% actually do. That gap is where a lot of stress, wasted weeks, and lost money live — and almost all of it traces back to the number you pick before the sign goes in the yard.

Why overpricing costs you more than you think

It feels safe to “aim high and see what happens.” You can always come down, right?

The problem is what happens while you wait. In the current Sioux Falls market, buyers are comparing your home against every other active listing in seconds, on their phones, by price and condition. When your home is priced above what the comps support, they don’t send a low offer. They just scroll past.

That’s the part sellers underestimate. An overpriced home doesn’t get lowball offers. It gets silence.

Then the clock starts working against you. Homes that launch at the right price in Sioux Falls are going under contract in roughly 19 days. The average across all listings is closer to 41 days this spring — down from 62 a year ago — which tells you the well-priced homes are pulling that number down while the overpriced ones drag it up. Once a listing crosses that two-to-three-week mark without an accepted offer, buyers start assuming something’s wrong with it.

In January 2026, 17.1% of Sioux Falls listings had a price drop, up from 14% the year before. Among active listings this summer, the average reduction ran about 3.6%. On a $335,000 home, that’s roughly $12,000 — and a home that’s already been reduced almost always sells for less than one priced correctly out of the gate, because the price cut itself signals weakness.

You don’t get the first two weeks back. That’s when your listing is freshest, showing activity is highest, and buyers who’ve been waiting pounce. Waste that window on a fantasy number, and you’re negotiating from behind for the rest of the process.

What “priced right” actually means in Sioux Falls in 2026

This is still a market where correctly priced homes move and overpriced ones sit. But “correct” has shifted, and a lot of sellers are anchored to 2021.

Prices are up, but modestly — around 2.5% year over year for existing homes and 2.1% for new builds. The median sold price sits near $335,000 to $340,000, while the median asking price is closer to $349,000. Read that gap carefully: it means a chunk of sellers are listing above where homes are actually closing, and the market is quietly correcting them.

Inventory is down about 30% from 2024, which sounds like a seller’s market. But the pending-to-active ratio has slipped to around 0.34, meaning buyers have more selection and more room to be picky than they did two years ago. Sale-to-list ratios are still healthy — about 98% citywide, and closer to 98.9% in Brandon — but that number rewards accurate pricing. Homes that hit the market right are closing near ask. Homes that don’t are the ones eating 3–5% reductions.

So “priced right” in Sioux Falls today means:

• At or slightly under the most recent comparable sales, not at the top of the range.
• Matched to condition — a home with original mechanicals and dated finishes can’t price like the remodeled one down the street, even on the same block.
• Built to survive the appraisal. In a market with modest appreciation, stretching your price invites a low appraisal that can unravel the whole deal. If you’re worried about that side of it, here’s what to do if your Sioux Falls appraisal comes in low.

How to land on the right number

Forget the Zestimate. Automated estimates don’t know your kitchen was redone last year or that your furnace is on borrowed time. Here’s the process I walk my sellers through.

Start with true comparable sales. Look at homes that actually closed in the last three to six months, in your neighborhood or a very similar one — McKennan Park comps for a McKennan Park home, Harrisburg for Harrisburg, west-side new-build corridor for a Tea or northwest home. Same approximate square footage, age, condition, and lot. Pending sales matter too, because they tell you what buyers are agreeing to right now, not six months ago.

Adjust honestly for condition. Add for real, recent, permitted improvements. Subtract for deferred maintenance and dated systems — buyers will price those repairs in whether you do or not. This is where a lot of for-sale-by-owner sellers go wrong, guessing at value without current data. It’s also one of several places a listing agent earns the commission, which I break down in what it costs to sell a house in Sioux Falls.

Price to the search brackets. Buyers shop in round-number ranges online. If your comps support $352,000, listing at $349,900 puts you in front of everyone searching “up to $350k.” Listing at $355,000 can hide you from that entire pool. Small number, big difference in how many eyes see your home.

Then watch the first two weeks like a hawk. Showings and online saves in the first ten to fourteen days are your real-time price test. Lots of traffic and no offers usually means the home shows well but the price is high. Almost no showings at all means the price is scaring buyers off before they ever walk in. Either way, the market is telling you something — and adjusting fast, while the listing is still fresh, beats waiting a month and chasing the price down.

None of this changes South Dakota’s mechanics. You’ll still pay the state transfer fee (SDCL 43-4-21, $0.50 per $500 of value — about $335 on a $335,000 sale), still complete the Seller’s Property Condition Disclosure Statement (SDCL 43-4-44), and still close through a title company rather than an escrow company. Those are fixed. Your list price is the one big lever you fully control — so getting it right is where the money is made or lost.

If the whole reason you’re eyeing an aggressive price is that you need a certain number to buy your next place, that’s worth a separate conversation about whether to buy or sell first in Sioux Falls. And if speed and certainty matter more than top dollar, it’s worth understanding what you’d really net if you sold your Sioux Falls house for cash instead.

Frequently Asked Questions

Is it better to price a house high and negotiate down in Sioux Falls?

No. In today’s market, overpriced homes get skipped, not lowballed, and they lose the critical first two weeks of buyer interest. Homes that start at the right price sell faster and often closer to ask, while ones that start high and cut later typically end up selling for less.

How long does it take to sell a house in Sioux Falls in 2026?

Well-priced homes are going under contract in roughly 19 days, with the all-listings average around 41 days this spring — noticeably faster than the 62-day average a year earlier. Overpriced listings routinely run past 60 days and usually require one or more price reductions before they sell.

Should I use the Zillow Zestimate to price my home?

Use it as a rough starting point, not a listing price. Automated estimates can’t see your home’s condition, recent updates, or specific location within Sioux Falls, and they lag the local market. A comparative market analysis built on recent closed and pending sales is far more accurate.

How much do homes sell for compared to list price in Sioux Falls?

The citywide sale-to-list ratio is running near 98%, and closer to 98.9% in Brandon — but that average is driven by homes that were priced correctly from the start. Overpriced listings that sit and cut their price often close well below their original number.

Does pricing too high hurt the appraisal?

It can. In a market with modest 2–2.5% appreciation, an aggressive price is more likely to come in above what the appraisal supports, which can stall or kill a financed sale. Pricing in line with recent comps keeps your deal on solid ground.

Your list price is the single biggest decision you’ll make as a seller, and in the 2026 Sioux Falls market there’s no room to guess. Price it to the comps, match it to your home’s real condition, and let the first two weeks tell you the truth.

If you want a straight, no-hype read on what your home should actually list for, I’ll run the real comps for your street and walk you through the number with you. Call or text me at 605-201-2846, or reach out through siouxfallsgreathomes.wordpress.com. No pressure — just the honest number.

About Jeff Merrill
Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. He helps motivated buyers, sellers, and new agents cut through the hype in real estate with honest guidance, hands-on mentorship, and a track record of real results. Connect with Jeff at siouxfallsgreathomes.wordpress.com or call 605-201-2846.

You’ve seen the signs stapled to telephone poles on Minnesota Avenue and the postcards in your mailbox: “We buy houses Sioux Falls — any condition — cash in 7 days.” The pitch is clean, fast, and tempting, especially if life has gotten complicated.

Here’s the honest version of how it works, what you’d actually walk away with, and when a cash sale is the right call versus when it quietly costs you a year’s salary.

What a cash buyer actually pays

There are three different animals in the “cash offer” world, and lumping them together is where sellers get burned.

Local “we buy houses” investors and flippers. These are the billboard companies — Sioux Empire Home Buyers, DJ Homes, and a dozen others working the Sioux Falls metro. They buy your house as-is, cover closing costs, and close in one to two weeks. To make their model work, they follow the 70% rule: they offer roughly 70% of your home’s after-repair value, then subtract what they expect to spend fixing it.

Run the math on a real Sioux Falls example. Say your house would be worth $335,000 fixed up, and it needs about $35,000 in work — kitchen, flooring, a roof. The investor’s offer looks like this:

• 70% of $335,000 = $234,500
• Minus $35,000 in repairs = $199,500

That’s the cash offer. No commission, no closing costs to you, keys handed over in ten days. Industry surveys back this up: most cash investors cap their offers at or below 70% of after-repair value, which works out to 15% to 30% below true market value once you account for their repair deductions and profit margin.

iBuyers like Opendoor. These are the tech companies, and they’re a different beast. Opendoor operates in Sioux Falls and makes offers much closer to market value — but only on newer, move-in-ready homes they can resell quickly. They charge a service fee around 5% of the sale price and still deduct for repairs after their inspection. On a clean $335,000 home, an Opendoor offer might net you somewhere in the low $300,000s after the fee and deductions. Better than a flipper, but you’re still leaving money and paying for the convenience.

Buy-and-hold local investors. Some Sioux Falls buyers want your house as a rental, not a flip. They’ll sometimes pay a bit more than a flipper because they’re not planning a full renovation, but the offer still lands below what an owner-occupant buyer would pay in a competitive listing.

What you’d net listing it instead

The whole appeal of a cash sale is skipping the hassle. But “hassle” has a price tag, and in a seller’s market it’s a steep one.

Right now Sioux Falls has about 892 homes on the market — inventory is down roughly 30% from a year ago — and a 3.3-month supply. That’s firmly a seller’s market. Homes are still appreciating, and well-priced listings move.

Take that same $335,000 home. Listed and sold the traditional way, here’s the rough picture:

• Sale price: ~$335,000
• Total selling costs (commissions, South Dakota transfer fee, title, prep): roughly 6–8%, or about $20,000–$26,000
• Net to you: around $309,000–$315,000

Compare that to the flipper’s $199,500 on the same house needing work, or the low-$300,000s from an iBuyer on a clean one. Even after you factor in repairs and a couple months of patience, the listed sale usually wins by tens of thousands of dollars. I break down every line of those selling costs in my guide to what it costs to sell a house in Sioux Falls, so you can see exactly where the money goes.

The cash buyer isn’t cheating you. They’re pricing in speed, certainty, and the risk of taking a house as-is. You’re simply paying for those things — and the bill is often $40,000 to $100,000.

One more thing sellers forget: a cash sale doesn’t erase your South Dakota obligations. You still owe the transfer fee (the seller pays it, at $0.50 per $500 of value under SDCL 43-4-21), and you’re still required to complete the Seller’s Property Condition Disclosure Statement under SDCL 43-4-44. “As-is” doesn’t mean “no disclosure.” South Dakota closings run through a title company, not an escrow company, and that holds true whether you sell to Opendoor or to the family down the street.

When a cash sale actually makes sense

Selling for cash isn’t a trap. For the right situation, it’s the smartest move on the table. The question is whether your situation is actually one of them.

A cash sale earns its discount when:

• You’re facing a foreclosure or auction date and need to close before the clock runs out.
• You inherited a house — often out of town — and don’t want to manage repairs, showings, and a months-long process from a distance.
• The home needs major work you can’t or won’t fund — foundation, roof, systems — and it wouldn’t show well or finance easily on the open market.
• You’re relocating fast for a job and can’t carry two mortgages while you wait for a buyer. (If that’s you, my post on whether to buy or sell first in Sioux Falls walks through the sequencing.)
• You need absolute certainty — a divorce, an estate settlement, or a situation where a financing-contingent buyer falling through would be a disaster.

That last point matters more than people realize. A traditional buyer’s loan can wobble — a low appraisal or a financing hiccup can delay or kill a deal. A genuine cash buyer removes that risk entirely. Sometimes certainty is worth paying for.

But if your house is in decent shape and you’re mainly selling to avoid the inconvenience, do yourself a favor before you sign anything: get a real market analysis. In a 3.3-month-supply market, your home has more leverage than a billboard company wants you to believe. And if a repair or two is the only thing standing between you and a full-price listing, that’s often a few thousand dollars that returns ten times over.

Here’s what I tell every seller who calls me about a cash offer: get the cash number, then let me show you the listed number. If speed still wins after you see both, sell for cash with a clear conscience. If it doesn’t, you just saved yourself $50,000. Either way, you decided with real numbers instead of a postcard.

Frequently Asked Questions

How much do cash home buyers pay in Sioux Falls?

Most “we buy houses” investors pay about 70% of your home’s after-repair value minus their repair estimate, which usually works out to 15–30% below market value. iBuyers like Opendoor pay closer to market value but charge a service fee around 5% plus repair deductions.

Is selling to a cash buyer faster than listing?

Yes, and that’s the main advantage. Cash investors can close in seven to fourteen days with no financing contingency, while a traditional Sioux Falls sale averages around 64 days on the market plus a 30–45 day closing. You’re trading price for speed and certainty.

Do I still pay closing costs and fees on a cash sale?

Most local cash-buyer companies cover the closing costs and charge no commission, which is part of the pitch. You still owe the South Dakota transfer fee as the seller, and iBuyers charge a service fee of roughly 5% of the sale price.

Are cash offers a scam?

Legitimate cash buyers aren’t scams — they’re investors with a business model that depends on buying below market value. The real risk isn’t fraud; it’s accepting a low offer when a traditional sale would net you far more. Always compare the cash number against a market analysis before signing, and verify any wire instructions by phone.

Can I sell an inherited or as-is house for cash in Sioux Falls?

Yes — inherited and distressed homes are exactly what cash buyers target, and it can be a genuinely good fit if you can’t manage repairs or showings. Just remember that South Dakota still requires the Seller’s Property Condition Disclosure for what you know about the property, even in an as-is sale.

If you’re weighing a cash offer against listing, don’t guess at the gap — measure it. I’ll run your home’s real market number next to the cash offer you’re holding, and you’ll know in an afternoon which one actually serves you. No pressure, no pitch, just the numbers.

Reach out anytime at 605-201-2846 or through siouxfallsgreathomes.wordpress.com.

About Jeff Merrill
Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. He helps motivated buyers, sellers, and new agents cut through the hype in real estate with honest guidance, hands-on mentorship, and a track record of real results. Connect with Jeff at siouxfallsgreathomes.wordpress.com or 605-201-2846.

By Jeff Merrill | July 28, 2026

You’ve outgrown the house in Brandon, or the empty nest in McKennan Park is finally too much to clean. Either way you’re stuck on the same question almost every move-up buyer in Sioux Falls hits: do you sell your current home first, or lock down the next one before you list?

There’s no single right answer. But there is a right answer for your situation, and it comes down to three things — your cash position, your risk tolerance, and what the market is doing the week you make your move. Let’s walk through all three.

Sell first or buy first — what each choice costs you

Start with the money, because that’s usually what decides it.

When you sell first, you know your exact number. Not your Zestimate, not what your neighbor got in 2022 — the actual check you’ll walk away with after your mortgage payoff, the South Dakota transfer fee, title work, and commissions. On a $335,000 sale, that’s real money you can now put down on the next place. If you want to see how that number gets built, I broke down every seller cost in my guide on what it costs to sell a house in Sioux Falls.

Selling first also makes you a clean buyer. No home-sale contingency, no “we just need our place to close.” In a market where inventory is tight, that’s the difference between your offer getting accepted and getting passed over.

The downside is obvious: you might sell and have nowhere to go yet. More on how to handle that below.

When you buy first, you get the opposite trade. You never scramble for housing, you move on your timeline, and you can take the right home when it shows up instead of forcing a match. But you’re now on the hook for two mortgages, two insurance bills, and two sets of utilities until your old house closes. If it sits — and at roughly 84 average days on market in Sioux Falls this summer, some do — that overlap gets expensive fast.

Buying first only makes sense if you can genuinely afford the carry, or you’ve lined up financing to bridge it. That’s the next piece.

How to buy first without drowning in two payments

If you want the new house before you sell, you have three main tools. None of them are free, so match the tool to your situation.

A bridge loan is short-term financing — usually 6 to 12 months — secured by your current home. It hands you the cash to cover the down payment and closing on the next house, then gets paid off when your old home sells. The catch is cost: bridge loans in this market run roughly 8.5% to 11% interest, plus a 1% to 2.5% origination fee. That’s fine for a two- or three-month overlap. It hurts if your house lingers.

A HELOC — a home equity line of credit on your current home — is the cheaper cousin, often 7% to 9% and only charged on what you actually draw. The trap is timing. Most lenders take two to six weeks to set up a HELOC, and almost none will open one on a house that’s already listed. So if this is your plan, open the line before you put a sign in the yard. Waiting until you’re under contract on the new place is too late.

A home-sale contingency costs nothing up front. Your purchase offer simply states it’s contingent on your current home selling. The problem is what it does to your negotiating position. Inventory in Sioux Falls is down about 30% year over year, sitting near a 3.3-month supply — that still favors sellers. When a seller has other offers, a contingent one goes to the bottom of the pile. Contingencies work best on homes that have sat a while, in a slower pocket, or on new construction in Tea and Harrisburg where a builder with standing inventory has more patience than an individual seller.

Whichever route you pick, keep your earnest money protected with the right contingencies so a financing hiccup doesn’t cost you your deposit. I covered how that money works and when it’s refundable in my post on earnest money in Sioux Falls.

How to sell first without ending up homeless

The fear that keeps people from selling first is simple: what if the house closes and I have nowhere to land? It’s a solvable problem.

The cleanest fix is a rent-back (sometimes called a post-closing occupancy agreement). You sell your home, collect your proceeds, and then rent it back from the new owner for a set number of days — often up to 30 or 60 — while you close on and move into your next place. Buyers who plan to occupy the home eventually are frequently fine with this, especially if it wins them the deal.

The second tool is an extended or delayed closing. You negotiate a longer window between accepted offer and closing on the sale of your home, giving you time to get under contract and close on the next one. In a seller-friendly market you have room to ask for terms like this.

You can also line up your next purchase in parallel. Selling first doesn’t mean sitting on your hands. The moment your home goes under contract, you’re a fully qualified, non-contingent buyer — the strongest kind. With your true proceeds and down payment nailed down, you can move on the right listing in Harrisburg, Tea, or NW Sioux Falls with confidence. If down payment funds are tight even after your sale, it’s worth checking whether you qualify for down payment assistance.

One local note on mechanics: in South Dakota your closing runs through a title company, not an escrow company like you’d hear about on the coasts. Firms like Eastern Title and First Dakota Title coordinate the payoff, the transfer fee, and the proceeds, so both sides of your move stay orderly even when the sale and purchase are days apart.

What most Sioux Falls sellers should do right now

Given where the market sits in mid-2026 — median price around $335,000, inventory down sharply, and roughly a 3.3-month supply — most move-up sellers are in a decent spot to sell first and buy second. Homes that are priced right and shown well are still moving, and a non-contingent buyer with proceeds in hand carries real weight against tight inventory.

The exception is the buyer who finds the home — the rare McKennan Park bungalow or the exact Brandon floor plan — before their own is listed. If that happens and the numbers work, a bridge loan or HELOC can absolutely justify buying first. Just go in with your eyes open about the carry, and price your current home to sell rather than to test the market.

And keep one more thing in mind on the buying side: in a market appreciating faster than closed comps, appraisals sometimes come in under contract price. Know your options there before you write an aggressive offer — I walked through them in what to do if your Sioux Falls appraisal comes in low.

Frequently asked questions

Is it better to buy or sell a house first in Sioux Falls?
For most people, sell first. You lock in your actual proceeds, avoid carrying two mortgages, and become a stronger, non-contingent buyer. Buy first only if you can afford both payments or you’ve arranged a bridge loan or HELOC to cover the gap.

Can I make an offer contingent on selling my current home?
Yes, but weigh it against the market. With Sioux Falls inventory down around 30% and supply near 3.3 months, sellers with multiple offers tend to pass on contingent ones. Home-sale contingencies work best on homes that have sat, in slower pockets, or on builder inventory in Tea and Harrisburg.

How much does a bridge loan cost?
Expect roughly 8.5% to 11% interest plus a 1% to 2.5% origination fee, on a term of about 6 to 12 months. It’s cost-effective for a short overlap of a couple months and gets pricey if your current home takes a while to sell.

Can I stay in my house after I sell it?
Often yes, through a rent-back agreement where you rent the home from the new owner for a set period — commonly up to 30 or 60 days — while you close on your next one. Many buyers accept this, especially if it helps them win the home.

How long do homes take to sell in Sioux Falls right now?
Homes averaged about 84 days on the market in June 2026, a few days longer than a year earlier. Well-priced, well-presented homes move faster, but you should build that timeline into any plan to buy and sell around the same time.

Ready to map out your move?

The buy-or-sell-first decision is really a sequencing and cash-flow problem, and it’s a lot easier to solve when someone runs your actual numbers with you — your likely net proceeds, your carrying cost if the timing overlaps, and which financing tool fits.

That’s a conversation, not a sales pitch. If you’re weighing a move anywhere in the Sioux Falls metro, call or text me at 605-201-2846, or visit siouxfallsgreathomes.wordpress.com, and we’ll build a plan that fits your situation and your timeline.

About Jeff Merrill: Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. Jeff helps buyers and sellers navigate move-up transitions, new construction, and the full closing process with direct, no-hype guidance. Reach him at 605-201-2846.

You’ve decided to sell, and the first question in your head isn’t about staging or listing photos. It’s “What am I actually going to walk away with?” That’s the right question. The number on the yard sign is never the number that lands in your account.

Here in Sioux Falls, where the median sale price sat right around $310,000 in spring 2026, your selling costs will land somewhere between 6 and 8 percent of the price. That’s roughly $18,000 to $22,000 on a typical home. Let’s break down exactly where every dollar goes, so you’re deciding with real numbers instead of guessing.

Where your money actually goes at closing

The biggest line item, by a wide margin, is real estate commission. In South Dakota that’s averaged around 5.8 percent of the sale price, split between the agent listing your home and the agent who brings the buyer. On a $310,000 home, that’s roughly $18,000.

Every piece of that is negotiable. And since the 2024 commission changes, buyer-agent compensation is now spelled out and negotiated on its own rather than assumed — so the total you pay depends on what you and your agent decide, and on what you offer a buyer’s agent.

After commission, the individual costs get much smaller, but they stack up:

• Owner’s title insurance. In South Dakota, the seller customarily pays for the buyer’s owner’s title policy. Budget around 0.2 percent of the price — about $620 on a $310,000 home.
• Closing and settlement fees. Your title company charges a settlement fee to run the numbers, handle the paperwork, and disburse funds. Expect a few hundred dollars.
• Recording and deed prep. Small, fixed county fees to record the new deed and release your old mortgage.
• Prorated property taxes. South Dakota collects property taxes in arrears, so at closing you credit the buyer for your share of the year’s taxes up to your closing date. On a Sioux Falls home taxed around 1.2 to 1.5 percent of value, that proration can run from a few hundred dollars to close to two thousand, depending on when you close.

Then there’s your mortgage payoff. It’s not a “cost” exactly, but for most sellers it’s the biggest single subtraction. Whatever you still owe comes right off the top.

The South Dakota costs sellers from other states don’t expect

If you’ve sold a home somewhere else, a few things here will catch you off guard.

First, the transfer fee. Under South Dakota law (SDCL 43-4-21), the state charges $0.50 for every $500 of value — that’s 0.1 percent, or one dollar per thousand. On a $310,000 sale, that’s $310. The grantor, meaning you the seller, pays it. Compared with transfer taxes in other states that can run thousands, it’s a bargain, but it’s still your line to cover unless you negotiate otherwise in the purchase agreement.

Second, there’s no escrow company. In South Dakota, a title company runs your closing — a local outfit like Eastern Title, First Dakota Title, or one of the others. They hold the funds, clear the title, and get you to the table. You don’t hire a separate escrow officer the way sellers do out West.

Third, the disclosure. South Dakota requires you to complete a Seller’s Property Condition Disclosure Statement (SDCL 43-4-44) — a written rundown of what you know about the home’s condition. It isn’t a cost, but it’s a legal obligation, and getting it wrong can cost you well after closing. Fill it out honestly and completely, and when you’re unsure, disclose.

Your real net: a $310,000 Sioux Falls example

Here’s how it stacks up on a home selling right at the current Sioux Falls median:

• Sale price: $310,000
• Commission (~5.8%): about $18,000
• Owner’s title insurance: about $620
• Transfer fee (SDCL 43-4-21): $310
• Settlement, recording, and misc. fees: about $600
• Prorated property taxes: varies, roughly $500 to $1,800

Total selling costs, before your mortgage payoff: roughly $20,000 to $21,000, or about 6.5 to 7 percent.

That leaves you around $289,000 to $290,000 before you subtract whatever’s left on your loan. Own the home free and clear? That’s close to what you pocket. Still carrying a $180,000 balance? You’d net somewhere near $109,000. This is why a national calculator’s flat percentage rarely matches your check — your mortgage payoff and your closing date change the answer more than anything else.

What actually moves your bottom line

Two homes on the same street can hand their owners very different checks. Here’s where you have real control.

Price it right the first time. In a steady market like Sioux Falls — where values were up only modestly over the past year — an overpriced listing sits, grows stale, and often sells for less than a sharply priced one would have. Days on market cost you real money.

Fix the cheap stuff, skip the expensive stuff. A $300 repair that removes a buyer’s objection earns its keep. A $20,000 kitchen remodel three weeks before listing rarely returns what you put into it.

Time it with intention. Spring and early summer move fastest across the Sioux Falls metro, especially in family-friendly submarkets like Harrisburg, Tea, and Brandon. That doesn’t make winter a bad time to sell — motivated buyers are always out there — but timing affects both how fast you sell and what you get.

And if your sale is really a move-up — selling here to buy your next place — the two transactions have to be planned together, right down to the financing. If your next home is a new build in the Tea or Harrisburg corridor, it’s worth understanding how buyer representation works on new construction, and if you’ll need help bridging the down payment, Sioux Falls down payment assistance options are worth a look before you list.

Frequently asked questions

Who pays the real estate transfer fee in South Dakota?

The seller (the grantor) pays it. Under SDCL 43-4-21, the fee is $0.50 for every $500 of value, which works out to 0.1 percent of the sale price — $310 on a $310,000 home. Responsibility can be shifted to the buyer by agreement, but by default it’s the seller’s.

Do sellers pay closing costs in Sioux Falls?

Yes. Beyond commission, sellers typically cover owner’s title insurance, the transfer fee, a settlement fee, recording costs, and prorated property taxes. Altogether, non-commission closing costs usually run 1 to 2 percent of the sale price in South Dakota.

How much are realtor fees in Sioux Falls?

Total commission in South Dakota has averaged around 5.8 percent, split between the listing side and the buyer’s side. It’s fully negotiable, and since the 2024 commission changes, what you offer a buyer’s agent is negotiated separately rather than assumed.

Do I need a lawyer to sell my house in South Dakota?

Not usually. A title company handles the closing, prepares the deed, and disburses funds. You can bring in a real estate attorney if your situation is complicated — an estate sale, a title problem, or a contested boundary — but a standard sale doesn’t require one.

How do I figure out my net proceeds?

Start with your expected sale price, subtract commission, title insurance, the transfer fee, settlement and recording fees, and your prorated property taxes, then subtract your remaining mortgage balance. The mortgage payoff is what makes your number different from a generic calculator’s estimate.

Ready to know your actual number?

Want your real net — not a national calculator’s guess? I’ll put together a net-proceeds estimate for your specific Sioux Falls home, using today’s commission structure and your actual mortgage payoff. No pressure, no obligation, just the straight numbers.

Call or text me at 605-201-2846, or reach out through siouxfallsgreathomes.wordpress.com. I’ll give it to you plainly, so you can decide with clear eyes.

About Jeff Merrill: Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Brandon, Harrisburg, Tea, Madison, Mitchell, Canistota, and beyond. Jeff helps buyers, sellers, and new agents make clear-eyed decisions with straight talk and real numbers. Reach him at 605-201-2846.