Charleston Real Estate Terms You Should Know

Ever look at a Charleston listing that goes under contract in days and wonder what that really means for you? If you are researching homes around the Lowcountry, the jargon can feel like another language. You want clear, practical answers that help you make smart moves without second-guessing every term. In this guide, you will learn the key metrics and contract terms that drive Charleston deals, why they matter, and how to use them to your advantage. Let’s dive in.

Key Charleston real estate terms

Days on Market (DOM)

DOM is the number of days between when a home is listed and when it goes under contract. It is a quick way to see how fast homes are selling.

DOM can vary by submarket across Charleston. Historic Peninsula, Mount Pleasant, West Ashley, North Charleston, and James Island often behave differently. Some re-listings or price resets can show a new DOM count, while others show cumulative DOM. Always ask whether the number you see is cumulative or reset.

Lowcountry example (hypothetical): A James Island bungalow listed April 1 accepts an offer on April 20, so DOM equals 19 days.

Months of supply

Months of supply, also called months of inventory, estimates how long it would take to sell all current listings at the recent pace of sales. It is calculated as active listings divided by average monthly closed sales.

Charleston’s seasonality, tourism, new-construction closings, and short-term rental inventory can influence this metric. Different neighborhoods often have different months of supply, and downtown or historic areas may move faster than some suburban sections.

Lowcountry example (hypothetical): If the metro shows 600 active listings and 200 sales in the past month, months of supply equals 3 months.

List-to-sale ratio

The list-to-sale ratio is the sale price divided by the list price, shown as a percentage. It signals whether homes sell above, at, or below asking.

In competitive pockets, such as certain Mount Pleasant neighborhoods or low-inventory historic homes, ratios above 100 percent can be common. In slower submarkets or for homes that need updates, ratios can fall below 100 percent.

Lowcountry example (hypothetical): A Sullivan’s Island condo listed at 800,000 dollars sells for 820,000 dollars, which is a 102.5 percent list-to-sale ratio.

Contingencies

Contingencies are contract clauses that allow a buyer or seller to cancel or renegotiate if certain conditions are not met. Common examples include financing, inspection, appraisal, title, and the sale of the buyer’s current home.

In Charleston, older homes, properties in flood zones, and homes with outbuildings can raise inspection issues related to structure, moisture, termite activity, or prior flood damage. In a competitive setting, buyers sometimes limit or waive contingencies to win. That can help an offer stand out, but it increases risk.

Lowcountry example (hypothetical): You include an inspection contingency with 10 days to inspect and the right to request repairs or credits if a roof leak is found.

Due diligence in South Carolina

In South Carolina, the due diligence period is a negotiated window when you can inspect the property and decide whether to move forward. It typically includes a separate due diligence fee paid to the seller. Earnest money is handled separately.

The due diligence fee is negotiated and is typically non-refundable to the seller if you terminate. During the due diligence period, you usually have broad termination rights, subject to your contract terms. If you cancel within the period, the seller commonly keeps the due diligence fee while you can often recover earnest money per the contract language.

Lowcountry example (hypothetical): You pay a 2,000 dollar due diligence fee for a 10-day period. If you cancel within those 10 days, the seller keeps the 2,000 dollars and you typically recover earnest money per the contract.

Appraisal gap

An appraisal gap occurs when the lender’s appraisal is lower than the agreed-upon purchase price. The gap equals the contract price minus the appraised value. Lenders base loans on the appraised value, so a gap may require extra cash, a price change, or a compromise.

In hot Lowcountry segments, especially when offers push over list, appraisal gaps can happen. Appraisals rely on recent comparable sales that may lag rapid price shifts.

Lowcountry example (hypothetical): You agree to pay 700,000 dollars and the appraisal comes in at 675,000 dollars, leaving a 25,000 dollar gap to solve.

Why these terms matter in Charleston

How DOM informs timing

• For buyers: Low DOM signals stronger competition. Act quickly, but still verify inspections and disclosures.
• For sellers: Faster DOM can support firmer pricing and fewer concessions. If DOM climbs, adjust pricing, staging, or marketing.

Months of supply sets the tone

• Low months of supply: Seller’s market. Expect more bidding, tighter contingencies, and faster timelines.
• Higher months of supply: Buyer’s market. Expect more negotiation room, credits, and flexible terms. Neighborhood and price tier matter in Charleston.

List-to-sale ratio guides strategy

• For buyers: Averages above 100 percent suggest stronger initial offers, possible escalation, and tighter terms. Below 100 percent implies potential for negotiation.
• For sellers: Anchor your strategy to neighborhood ratio trends. Smart pricing can trigger healthy competition. Overpricing can add unnecessary DOM.

Contingency choices balance risk and strength

• For buyers: Waiving or limiting contingencies can help you win, but increases risk. In older or flood-prone areas, consider targeted inspections or capped repair requests.
• For sellers: Know which contingencies are standard in your area and which concessions are realistic. Favor due diligence timelines and fees that show buyer commitment.

Due diligence drives confidence

• Buyers: Use the period to inspect, review HOA or community documents, confirm flood insurance needs, and solidify financing. Budget for the due diligence fee and clarify refund rules in your contract.
• Sellers: A meaningful due diligence fee or shorter period can deter weak offers and help offset lost market time if a buyer exits.

Appraisal gaps affect financing

• Buyers: Prepare for potential gaps in fast-moving segments. Talk with your lender early, confirm timelines, and consider an appraisal gap clause if appropriate.
• Sellers: Ask about a buyer’s cash reserves and whether their offer includes gap coverage. This can reduce the risk of a deal falling apart.

Lowcountry risks that shape deals

• Flood risk and insurance: Many Charleston properties are in FEMA flood zones. Insurance cost and availability can influence appraisals and financing.
• Historic structures: Older homes can have deferred maintenance, moisture, or termite issues. Expect thorough inspections and plan for repairs or credits.
• Short-term rentals: If a property has vacation rental income, rules and documentation can affect lender valuation and buyer expectations.
• New construction surge: In fast-growing suburbs, new-build comps can influence appraisals on nearby resales.

How to calculate and where to find local numbers

Formulas you can use:

• DOM: Contract date minus listing date. Confirm whether your source reports cumulative DOM or a reset number.
• Months of supply: Active listings divided by average monthly closed sales. You can also use active listings divided by annual sales divided by 12.
• List-to-sale ratio: Sale price divided by list price, then multiply by 100.
• Appraisal gap: Contract price minus appraised value, if the appraisal is lower than the contract price.

Where to look for Charleston data:

• Charleston Trident Association of REALTORS and Charleston Trident MLS for monthly and quarterly stats, including DOM, months of supply, and list-to-sale ratios.
• South Carolina Association of REALTORS for details on state contracts and due diligence norms.
• National Association of REALTORS for methodology and national trend context.
• FEMA for flood maps and elevation details relevant to insurance and risk.
• Charleston County Assessor and property records for parcel-level information, taxes, and recorded items.

Tip: Always confirm the latest neighborhood numbers with a local agent who can interpret micro-market shifts that citywide averages miss.

Quick buyer checklist

• Ask how DOM and months of supply look for your target neighborhood and price point.
• Review list-to-sale ratios to set your initial offer strategy.
• Plan your contingencies. Consider targeted inspections and caps rather than full waivers.
• Clarify due diligence fee, timeline, and refund rules in your contract.
• Talk with your lender about appraisal timelines and how you will handle any gap.
• Review flood zones, insurance quotes, and any HOA or community rules early.

Quick seller checklist

• Price with neighborhood-level data: DOM, months of supply, and list-to-sale ratios.
• Prepare your home to reduce DOM. Professional prep and marketing can lift your result.
• Set expectations on contingencies and due diligence fees to attract committed buyers.
• Confirm your plan if an appraisal comes in low. Consider backup offers if available.
• Gather disclosures, permits, and insurance details to streamline buyer diligence.

Final thoughts

Understanding these core terms puts you in control. You can read market signals like DOM and months of supply, set realistic expectations with list-to-sale ratios, and navigate key contract moments around contingencies, due diligence, and appraisal gaps. With Charleston’s unique mix of historic homes, flood considerations, new construction, and strong neighborhood identities, local context is everything.

If you want personalized guidance for your neighborhood and price point, connect with Roslyn Kay Parker. From buyer representation and relocation support to premium listing services and Compass Concierge, you will get clear strategy and an organized path from offer to close.

FAQs

What does Days on Market mean on Charleston listings?

• DOM is the number of days from listing to an accepted offer. It signals how quickly homes are selling and can vary by neighborhood and price point.

How do months of supply show a buyer’s or seller’s market in Charleston?

• Lower months of supply favors sellers with faster sales and tighter terms. Higher months of supply gives buyers more room to negotiate and request concessions.

What is South Carolina’s due diligence fee and is it refundable?

• It is a negotiated fee paid to the seller for a due diligence period. It is typically non-refundable, and if you cancel within the period, the seller usually keeps the fee while earnest money is handled per the contract.

What happens if the appraisal comes in low on a Charleston home?

• You can bring extra cash, renegotiate the price, or terminate if your contract allows. Lenders base the loan on the appraised value, not the contract price.

Should you waive an inspection contingency in a competitive Charleston offer?

• Waiving can help you compete but raises risk, especially for older or flood-prone homes. Consider targeted inspections or caps on repair requests instead.