Buying or selling in Seattle comes with one big question: how much will you actually pay on closing day? You want clean numbers, clear steps, and zero last‑minute surprises. Whether you are a first‑time buyer or a move‑up seller, understanding closing costs helps you plan, negotiate, and protect your bottom line. In this guide, you will learn typical cost ranges, who usually pays what in King County, how escrow works in Washington, and simple ways to keep costs in check. Let’s dive in.
What closing costs cover in Seattle
Closing costs are the fees and prepaids due at the end of a real estate transaction. In the Seattle area, buyers who finance typically budget about 2% to 5% of the purchase price for closing costs, not including the down payment. Sellers often see 6% to 10% of the sale price when you account for commission, the Washington real estate excise tax, and payoffs.
Costs vary because price points are higher in King County, some fees scale with price, and negotiations can shift who pays certain items. Cash buyers usually see lower totals because there are no lender charges.
Buyer costs in Seattle
Lender and appraisal costs
If you are using a mortgage, expect loan application or origination fees. Some lenders charge a flat fee while others charge a percentage of the loan amount. Appraisals in the Seattle area typically range from about $450 to $900 or more, depending on property type and complexity.
Inspections and due diligence
Most buyers order a general home inspection that can run about $300 to $700 or more. Specialized inspections such as roof, sewer scope, or pest are extra. These costs are paid upfront or at closing, depending on vendor policy.
Title, escrow, and title insurance
Escrow and title companies handle the funds, documents, and recording. In Seattle, the escrow fee and other title charges are often split between buyer and seller, though it is negotiable. Your lender requires a lender’s title insurance policy. An owner’s title policy is optional but recommended to protect your equity. The owner’s policy payment is negotiable and sometimes covered by the seller.
Recording and prepaid items
You will typically pay recording fees for the new deed and mortgage. These are usually modest. Prepaid items include your first year of homeowners insurance or part of it, prepaid loan interest from closing to month end, and escrow deposits for future property taxes and insurance.
Property tax prorations
Property taxes are prorated at closing. You pay the share starting from the day you take ownership. The escrow company will calculate these prorations using King County timelines.
Notes for cash buyers
Cash buyers avoid lender fees and often see lower total closing costs. You still have title and escrow charges, recording fees, prorations, and any inspections you choose to order.
Seller costs in Seattle
Real estate commissions
Commission is commonly the largest seller cost. Rates are negotiable and set in the listing agreement. The commission is paid from your proceeds at closing.
Washington Real Estate Excise Tax (REET)
Washington charges a real estate excise tax based on the sale price. In most transactions the seller pays REET. Rates and tiers can change, so confirm your exact liability with the Washington Department of Revenue and King County before listing.
Mortgage payoffs and lien releases
If you have a mortgage, you will pay the principal balance, accrued interest, and any payoff or reconveyance fees at closing. Escrow will coordinate payoffs and lien releases.
Title, escrow, and prorations
Sellers typically pay a portion of escrow and title charges. Property taxes, HOA dues, and utilities are prorated so you do not pay for days after closing. Sellers may also agree to cover the owner’s title policy or provide a credit to the buyer as a negotiating tool.
Repairs and concessions
Inspection findings can lead to seller repairs or credits. Credits reduce the buyer’s cash needed at closing but increase your closing costs. Choose the path that best supports your timeline and net proceeds.
Who pays what and what is negotiable
- Owner’s title insurance: often negotiable. Some sellers pay it to make the transfer cleaner.
- Escrow fee split: sometimes 50/50, sometimes buyer or seller pays more. It is set in the purchase and sale agreement.
- Seller credits to buyer: can cover some buyer closing costs to help the loan qualify or improve the offer’s appeal.
- Commission rate: set in the listing agreement. Changes directly impact seller net.
Washington escrow and title timeline
Escrow’s role in Washington
Escrow acts as a neutral third party. The escrow officer holds earnest money, coordinates title work, collects lender documents, gathers payoffs, and disburses funds. The deed and loan documents are recorded at closing.
Title insurance and title search
The title company searches for liens, judgments, and encumbrances to ensure marketable title. The lender’s policy protects the lender. The optional owner’s policy protects your equity with a one‑time premium. Title insurance rates and policy forms are regulated at the state level.
Federal disclosure timing for buyers
If you are financing, your lender must give you a Closing Disclosure at least 3 business days before closing. You should also receive a Loan Estimate within three business days of your loan application. These timelines help you review terms and costs.
King County taxes and recording
Property tax prorations follow county calendars. Recording fees for the deed and mortgage are charged at closing and are usually small. Your escrow officer will prepare the final settlement statement to reflect prorations, fees, and payoffs.
Budgeting tips that work in King County
- Ask for a detailed Loan Estimate early and compare lenders. Small fee differences add up at Seattle price points.
- Set aside funds for inspections and the appraisal. Order specialty inspections only as needed based on property condition.
- Confirm the escrow fee split and who pays the owner’s title policy during offer negotiations.
- As a seller, verify your REET obligation early and request written mortgage payoff statements so there are no surprises.
- Both parties should request a draft settlement statement a few days before closing to confirm prorations and fees.
Example: $800,000 Seattle purchase
Here is an illustrative example for a financed buyer and a typical seller. Your actual numbers will vary with loan terms, timing, and negotiated items.
- Buyer estimated closing costs at 2% to 4%: about $16,000 to $32,000
- Appraisal: around $600
- Inspections: around $500
- Loan origination and lender fees: for example $2,000 to $6,000
- Lender title policy and escrow fees: about $1,000 to $3,000
- Prepaids and reserves for taxes, insurance, and interest: about $3,000 to $10,000
- Seller estimated closing costs at 6% to 9%: about $48,000 to $72,000
- Commission example at 5%: $40,000
- REET: depends on rate tiers for the sale price and can be several thousand to tens of thousands
- Title, escrow, prorations, and payoff processing: several hundred to several thousand
Use these ranges as a planning tool. The final Closing Disclosure and settlement statement will show the exact figures.
How to lower your net closing cost
- Negotiate credits and concessions that fit your goals. A seller credit can reduce a buyer’s cash needed at closing. A buyer who accepts as‑is condition may ask for price instead of repairs.
- Shop your loan. Compare interest rates, discount points, and lender fees. Ask lenders to price the same lock period and points so you can compare apples to apples.
- Clarify who pays the owner’s title policy and the escrow split in your offer. Clean terms can be as valuable as dollars in a competitive market.
- Time your closing thoughtfully. Prepaid interest and tax escrow needs vary based on your closing date and the tax cycle.
When a fast cash sale makes sense
If you are a time‑sensitive seller with a property that needs work, a cash offer with a 7 to 14 day close can reduce carrying costs and streamline fees. You skip repairs, limit showings, and move on a clear timeline. It is not always the highest price outcome, but it can be the most certain and fastest path when speed matters most.
Next steps
Whether you are buying or selling, the right plan starts with clarity. Estimate your costs, confirm who pays what in your contract, and review your Closing Disclosure or settlement statement early. If you want local, no‑nonsense guidance and options that include standard listings, buyer representation, and fast cash solutions, connect with AMP Properties Group NW.
FAQs
What are typical buyer closing costs in Seattle?
- Buyers who finance usually budget about 2% to 5% of the purchase price for closing costs, excluding the down payment.
What are typical seller closing costs in King County?
- Sellers often see 6% to 10% of the sale price, mainly driven by commission, Washington REET, and mortgage payoffs.
Who pays Washington’s real estate excise tax (REET)?
- In most transactions the seller pays REET in Washington, though parties should confirm current rules and contract terms.
What does escrow do in a Washington home sale?
- Escrow serves as a neutral third party that holds funds, coordinates title, records documents, and disburses proceeds at closing.
Do I need owner’s title insurance as a buyer in Seattle?
- The owner’s policy is optional but recommended because it protects your equity with a one‑time premium, separate from the lender’s policy.
How are property taxes handled if we close mid‑year in King County?
- Taxes are prorated to the closing date so each party pays for their share of the year’s taxes based on ownership days.
When will I see my final loan costs as a buyer?
- Your lender must provide a Closing Disclosure at least 3 business days before closing so you can review final terms and fees.
