Washington State Closing Costs: What buyers and sellers need to know
Closing costs are one of the most important yet often overlooked parts of buying or selling a home in Washington State. These fees cover the services, taxes, and administrative costs required to transfer property ownership, and they can add up quickly if you’re not prepared.
This guide breaks down what buyers and sellers need to know about closing costs in Washington, including who pays what, how much to budget, and smart ways to reduce expenses.
Understanding Washington State Closing Costs
What are closing costs?
Closing costs are the collection of fees and expenses due at the end of a real estate transaction. They include charges for loan processing, title insurance, escrow services, government recording, and real estate commissions. In Washington State, these costs typically range between 2% and 5% of the home’s purchase price, depending on the loan amount, location, and whether you’re the buyer or seller.
For example, on a $700,000 home in Seattle, the total closing costs may range from $14,000 to $35,000, split between both parties.
Who pays closing costs in Washington State?
In most Washington real estate transactions, buyers and sellers share closing costs. Buyers typically cover lender and loan-related expenses, while sellers pay real estate agent commissions and state excise tax.
However, some costs can be negotiated. In a buyer’s market, sellers may offer seller concessions to help cover part of the buyer’s costs.
Average Closing Costs in Washington State
Average buyer closing costs
According to Bankrate, total closing costs in Washington average around 2.4% of the home’s purchase price, including fees paid by both buyers and sellers. For most home buyers, that translates to roughly 2% to 3% of the purchase price depending on lender fees, property taxes, and location.
On a $600,000 home, that’s approximately $12,000 to $18,000 in total buyer closing costs.
Typical buyer expenses include:
- Loan origination fees: $1,000–$3,000
- Appraisal fees: $500–$800
- Credit report and underwriting: $100–$300
- Title insurance and escrow fees: $1,200–$2,500
- Recording fees and transfer taxes: $150–$300
Average seller closing costs
For sellers, closing costs usually range between 6% and 8% of the home’s sale price, primarily due to real estate agent commissions and the state’s Real Estate Excise Tax (REET).
On a $700,000 home, total seller closing costs can reach $42,000 to $56,000, depending on commission rates and taxes. Learn how pricing and presentation can affect outcomes in 6 Tips for Selling a Luxury Home.
Detailed Breakdown of Buyer Closing Costs in Washington State
Loan-related fees
These are charged by your lender and include:
- Loan origination fee: typically 0.5% to 1% of the loan amount
- Credit report fee: around $50
- Underwriting or processing fees: $300–$600
- Home appraisal fee: usually $500–$800
Each lender structures these fees differently, so comparing offers is key when shopping for a mortgage.
Title and escrow fees
Title and escrow companies handle the legal side of ownership transfer. Buyers usually pay for lender’s title insurance to protect the mortgage lender, while sellers often cover owner’s title insurance to protect the buyer.
Typical costs:
- Lender’s title insurance: $800–$1,200
- Escrow fees: $500–$900
- Title search and recording fees: $150–$300
Government recording and transfer fees
These are paid to the local government to record the property deed and finalize ownership. Expect about $150–$250 for recording fees, depending on the county.
Other potential buyer costs
- Home inspection fee: $400–$700
- Homeowners insurance: $1,200–$2,000 annually
- Property taxes: prorated at closing based on the home’s value
- Private mortgage insurance (PMI): required for down payments under 20%
Buyers can estimate their total costs using a closing costs calculator and review detailed figures in their lender’s Loan Estimate and Closing Disclosure.
Detailed Breakdown of Seller Closing Costs in Washington State
Real estate agent commissions
This is typically the largest expense for sellers. Standard real estate agent commissions in Washington average around 5% to 6% of the home’s sale price, split between the listing agent and the buyer’s agent.
For a $700,000 home, that’s about $35,000 to $42,000. Learn more about working with a real estate agent and how commissions factor into closing costs.
Excise Tax (Real Estate Excise Tax – REET)
Washington imposes a graduated excise tax based on the home sale price:
- 1.1% on the first $525,000
- 1.28% on amounts between $525,000–$1.525 million
- 2.75% on amounts between $1.525–$3.025 million
- 3% on amounts above $3.025 million
This tax is paid by the seller at closing and goes to the state and local governments. You can find the full rate structure on the Washington State Department of Revenue website.
Title and escrow fees
Sellers often pay for owner’s title insurance to protect the buyer. Costs typically range from $800 to $1,500, depending on the home’s purchase price. Escrow fees are usually split between buyer and seller, averaging $500–$900 each.
Other potential seller costs
- Attorney fees: $400–$1,000 (optional but common in complex sales)
- Outstanding liens or HOA fees: must be cleared before closing
- Repairs or credits: negotiated during inspection
- Courier or notary fees: $100–$200
How to Estimate Your Closing Costs
Using online calculators
Online tools like Bankrate’s Closing Costs Calculator or Zillow’s estimates can give you a starting point based on your loan amount and purchase price.
Working with a real estate professional
A trusted Every Door Real Estate agent can help you estimate closing costs early and factor them into your overall budget. They can also identify negotiation opportunities or recommend local lenders with competitive rates.
Understanding the Loan Estimate and Closing Disclosure
Lenders are required to provide a Loan Estimate within three days of your mortgage application and a Closing Disclosure three days before closing day. Review both carefully to understand every fee you’re paying.
Strategies to Reduce Closing Costs
For buyers
- Shop lenders: compare origination fees and interest rates
- Negotiate with sellers: ask for concessions to cover part of your costs
- Review services: you can often choose your own title company or insurance provider for better rates
For sellers
- Negotiate commissions: some brokerages offer flat-fee options or reduced rates for repeat clients
- Handle repairs proactively: fixing issues before inspection avoids last-minute credits or buyer demands
- Time your sale: when the market favors sellers, you may have more leverage to offset costs
Key Takeaways for Washington State Closing Costs
- Buyers typically pay 2–3% of the purchase price, covering lender, title, and inspection fees.
- Sellers often pay 6–8%, including commissions and the state excise tax.
- Both parties share escrow and title fees, depending on the transaction.
- Knowing what to expect can help you plan ahead and negotiate effectively.
Frequently Asked Questions About Washington State Closing Costs
Is Washington a buyer-pays or seller-pays state for closing costs?
Washington is a shared-cost state. Buyers usually cover loan and title fees, while sellers pay commissions and the excise tax.
Can closing costs be rolled into the mortgage?
Yes, some closing costs can be financed into the loan, depending on your lender and loan type. However, it increases your total loan amount and interest paid over time.
What is the Real Estate Excise Tax (REET) in Washington State?
The REET is a graduated tax on the home’s sale price, ranging from 1.1% to 3%. Sellers pay this tax at closing.
How long does it take to close on a house in Washington?
Most Washington home closings take 30 to 45 days, depending on lender processing, inspections, and title verification.
Thinking about buying or selling a home in Washington?
Understanding closing costs is just one step in the process. Whether you’re a buyer calculating expenses or a seller planning your next move, Every Door Real Estate can help you navigate the details and make informed decisions with confidence.
Editor’s note: The information in this article is for educational and research purposes only. Closing cost estimates are based on publicly available data and typical market averages in Washington State. Actual costs can vary depending on your lender, loan terms, location, and real estate transaction details. For a personalized estimate, contact Every Door Real Estate.