By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

The financial case for South Carolina is real, and the property tax structure is the reason — the state assesses owner-occupied primary residences at a materially lower ratio than second homes and rentals, which produces a very different bill than Nassau County's. That advantage carries a residency requirement worth understanding before assuming it applies. Two other things a Long Island seller should know: South Carolina is an attorney state like New York, so closings will feel familiar rather than foreign, and coastal insurance is a genuine carrying cost that offsets some of the housing savings near the water.

Start With the Long Island Sale

The transaction that governs this move is the one on this end. It sets the budget, the timeline, and whether the household moves on its own schedule.

Before touring anything in South Carolina, a seller should know what the current home realistically nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation spending, and carrying costs for a listing period longer than hoped. The full breakdown of what a Long Island sale costs walks through each line.

One item specific to interstate moves. A seller who establishes South Carolina residency before the Long Island closing becomes a New York nonresident for that transaction, which triggers Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. It's a prepayment against actual New York liability rather than an additional tax, refundable where the real number comes in lower. But it reduces the wire, and sellers who have already committed those funds to a South Carolina purchase get caught short.

For anyone selling a long-held Long Island home, the capital gains question deserves attention too. The primary-residence exclusion covers $250,000 for a single filer and $500,000 filing jointly, and decades of appreciation frequently exceed that. Improvement records reduce the taxable figure substantially — the full treatment of how gain is calculated covers it.

The Property Tax Structure Is Genuinely Different

This is the largest financial distinction between the two states and the original said only that taxes are "more affordable."

South Carolina doesn't tax all residential property the same way. Property that serves as an owner's legal primary residence is assessed at a materially lower ratio than property held as a second home, a rental, or an investment. The applicable ratio, the local millage, and the resulting bill all vary by county and municipality — but the structural distinction is statewide and it's substantial.

Two consequences for someone moving from Nassau County.

The favorable treatment requires residency. It isn't automatic on purchase. A buyer has to establish South Carolina as their legal primary residence and apply for the classification, which typically involves demonstrating residency through voter registration, driver's license, vehicle registration, and tax filing. Someone who buys in South Carolina while keeping a Long Island home as their primary residence does not get it.

That matters for anyone planning to keep both. A household intending to hold the Long Island property — for family, for a transition period, as a rental — should understand which property will be treated as primary in which state, and what that costs. This is a question for a South Carolina attorney or accountant before purchasing rather than after.

South Carolina also provides a homestead exemption for qualifying residents 65 and over, which reduces the taxable value further. Eligibility criteria and amounts are set by statute and change; confirm current terms locally rather than assuming.

Closings Will Feel Familiar

Here's something that surprises people moving south, and it works in a New York seller's favor.

South Carolina requires attorney supervision of residential real estate closings. That's unusual in the Southeast — most states in the region run closings through title companies — and it means a Long Island seller relocating there encounters a process that broadly resembles the one they know.

The parallel isn't exact. New York reserves contract drafting and negotiation to licensed attorneys, and the attorney coordinates title, payoff, and closing; South Carolina's requirement centers on attorney supervision of the closing and title work. But the practical experience is closer to New York's than to, say, Florida's or North Carolina's, and a buyer who wants counsel involved will have it by default rather than by special arrangement.

Two attorneys are needed rather than one, since licensing is state-specific. Worth asking the New York attorney for a South Carolina referral — attorneys handling relocations often have working relationships across state lines. The fuller picture of what the attorney handles on the New York side describes what carries over.

South Carolina also imposes a deed recording fee on transfers, customarily paid by the seller — relevant for the eventual resale rather than for this purchase. Rates are set at state and county level and should be confirmed locally.

Coastal Insurance Is a Real Carrying Cost

The original mentioned hurricane season in one sentence. For anyone looking near the water, insurance is a substantial ongoing expense that offsets part of the housing savings.

Standard homeowner's policies in coastal areas frequently exclude or limit windstorm coverage, requiring separate wind-and-hail coverage. Properties in flood zones need flood insurance, typically through the National Flood Insurance Program or the private market, and the mandatory purchase requirement applies where a federally backed mortgage secures a property in a Special Flood Hazard Area.

Together these can add meaningfully to monthly carrying costs on a coastal property — enough that two homes at the same price in Charleston and in the Upstate can have very different total costs of ownership. Anyone shopping the coast should obtain actual insurance quotes on specific properties before making offers, not after.

Deductibles work differently too. Windstorm and hurricane deductibles are frequently expressed as a percentage of the insured value rather than as a flat dollar amount, which produces a much larger out-of-pocket figure than most Long Island homeowners are used to.

Practical Logistics

The move runs roughly 700 to 800 miles depending on the destination — a genuine interstate relocation. Professional interstate movers should be booked well ahead, particularly for summer, and vehicle transport is usually cheaper than driving.

Climate is a real adjustment. Summers are hot and humid in a way Long Island summers aren't, and winters are mild. Hurricane season runs June through November along the coast.

South Carolina's regions differ substantially from one another — the coast, the Midlands, and the Upstate near the mountains each have different housing stock, different price points, different insurance costs, and different distances to major employment. Anyone assuming the state is uniform will be surprised. Worth spending time in more than one region before committing.

On the sequencing question: selling the Long Island home first produces clean funds, a defined budget, and a purchase offer carrying no contingency on another sale — which matters more at 800 miles, where coordinating simultaneous closings is difficult. The trade-off is temporary housing. Buying first means carrying both properties, which at Long Island price points frequently runs $12,000 to $16,000 monthly combined.

A Worked Example

Consider a composite case — a Nassau County couple relocating to the Charleston area, selling a colonial that comped near $1,120,000.

Three things shaped the outcome. Their South Carolina attorney explained the assessment ratio distinction and the residency requirement, which mattered because they had considered keeping the Long Island house for a year. Doing so would have meant the South Carolina property wasn't their legal primary residence in year one, at a materially higher assessment. They sold first instead.

Insurance quotes on two properties they liked came back roughly $4,000 apart annually, driven almost entirely by proximity to the water and the resulting windstorm and flood requirements. That difference changed which one they pursued — and they got the quotes before offering rather than after.

On the New York side, their attorney ran an early title review and found a 2013 permit for a rear addition never closed out. Six weeks to resolve, entirely before listing.

They closed the Long Island sale in April, spent five weeks in a short-term rental, and bought in Charleston with cash in hand and no sale contingency.

Where to Start

Get a real number on the Long Island home and build the net-proceeds model before touring anything. Call the town or village building department and ask what permits are on file. Engage a New York real estate attorney early and ask for a South Carolina referral. Talk to a CPA about the IT-2663 and capital gains questions before setting a closing date. Ask a South Carolina professional about the assessment ratio and what establishing residency requires. And obtain actual insurance quotes on any coastal property before making an offer.

Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value, and more market and process coverage lives in Local Insights.

The Honest Bottom Line

South Carolina is genuinely less expensive than Long Island, and the property tax structure is a substantial part of why. That advantage is real and it's conditional — it depends on establishing legal residency, which is a decision with consequences for anyone thinking about keeping a foothold here.

The two things most likely to surprise a Long Island seller are the insurance picture on the coast and how familiar the closing process feels. One costs more than expected; the other is easier than expected.

The households that handle this well sell first, get the tax and residency questions answered by South Carolina professionals before buying, and price insurance on specific properties rather than assuming. For anyone working through what their Long Island home would net before any of the South Carolina decisions get made, that conversation is available whenever the timing suits.

This is general information, not legal, tax, insurance, or financial advice. South Carolina assessment ratios, exemption criteria, recording fees, and insurance requirements are set at state and local level and change over time. Confirm current specifics with a South Carolina attorney, accountant, and licensed insurance professional, and confirm New York specifics with a licensed New York real estate attorney and a CPA.

FAQs

Are property taxes really lower in South Carolina than on Long Island?

Generally yes, and the structure is the reason. South Carolina assesses property that serves as an owner's legal primary residence at a materially lower ratio than second homes, rentals, or investment property. Applicable ratios and local millage vary by county and municipality, but the structural distinction is statewide and substantial. The important condition: the favorable treatment isn't automatic on purchase. It requires establishing South Carolina as a legal primary residence and applying for the classification, typically demonstrated through voter registration, driver's license, and tax filing.

Does South Carolina require an attorney for a home purchase?

Yes, and this surprises people moving south. South Carolina requires attorney supervision of residential real estate closings — unusual in the Southeast, where most states run closings through title companies. For a Long Island seller relocating there, the process feels considerably more familiar than it would in most southern states. Two attorneys are needed rather than one, since licensing is state-specific, and a New York attorney who handles relocations can often provide a referral.

How much does coastal insurance cost in South Carolina?

Enough to change which property makes sense, and it should be quoted on specific addresses before making an offer. Standard homeowner's policies in coastal areas frequently exclude or limit windstorm coverage, requiring separate wind-and-hail coverage, and properties in flood zones need flood insurance as well. Deductibles for windstorm and hurricane are often expressed as a percentage of insured value rather than a flat amount, producing much larger out-of-pocket figures than Long Island homeowners typically expect. Two similarly priced homes can carry very different total costs.

What is Form IT-2663 and does it apply to this move?

It applies if the Long Island home sells after the seller has established South Carolina residency. New York requires nonresident sellers to make an estimated payment at closing of 8.82 percent of net gain, filed through Form IT-2663. It isn't an additional tax — it's a prepayment against actual New York State income tax liability, refunded when the return is filed if the real number comes in lower. Practically, it reduces the amount wired at closing, which catches sellers who have already committed those proceeds to a purchase.

Should I sell my Long Island home before buying in South Carolina?

Generally yes at this distance. Selling first produces clean funds, a defined budget, and a purchase offer with no contingency on another sale — which matters more at 700 to 800 miles, where coordinating simultaneous closings is genuinely difficult. The trade-off is potentially needing temporary housing. Buying first means carrying both properties, frequently $12,000 to $16,000 monthly combined at Long Island price points, and it may also affect which property counts as a primary residence for South Carolina assessment purposes.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com