Closing costs in Washington usually run 2% to 5% of the purchase price for buyers and about 1% to 3% for sellers before any agent commissions. On a home at the statewide median of roughly $561,000, that puts a buyer’s cash at closing somewhere between $11,000 and $28,000, with the seller’s total often climbing higher once the real estate excise tax and any commission are added in. Your exact number depends on the price, your loan type, and where in the state the property sits.
What Buyers Pay at Closing
Most of a buyer’s closing costs come from the mortgage. Expect a loan origination fee of roughly 0.5% to 1% of the loan amount, an appraisal in the $500 to $1,000 range, and a credit report charge under $100. If your down payment is below 20% on a conventional loan, the lender will require private mortgage insurance, which can be paid upfront at closing, added to your monthly payment, or split between the two.1Consumer Financial Protection Bureau. What Is Private Mortgage Insurance?
Every fee the lender charges is itemized on the Loan Estimate you receive within three business days of applying. Comparing Loan Estimates from more than one lender is the most direct way to lower your buyer-side total.
On top of those fees, buyers bring cash for prepaid items. These aren’t charges from anyone; they are future expenses the lender wants funded in advance:
- A full year of homeowners insurance paid before closing. The Washington average premium runs around $1,500, though your figure depends on location, coverage, and the home itself.
- Prepaid interest covering the days between closing and your first regular mortgage payment. Closing late in the month means less of it.
- An escrow reserve deposit so the servicer can pay future property taxes and insurance on your behalf. Federal rules let the servicer collect up to two months’ worth of payments as a cushion when the account is set up.2Consumer Financial Protection Bureau. 12 CFR 1024.17 – Escrow Accounts
Prepaid items commonly add $3,000 to $6,000 to the cash you need on closing day.
Buyers also pay for the lender’s title insurance policy, split escrow fees with the seller (usually fifty-fifty, though it’s negotiable), and cover government recording charges. Recording a standard transaction typically runs $150 to $350 for the deed and the deed of trust together.
What Sellers Pay at Closing
The seller’s side is dominated by the real estate excise tax, discussed in detail below. Beyond REET, sellers in Washington customarily pay for the owner’s title insurance policy that protects the buyer,3Washington Office of the Insurance Commissioner. Title Insurance cover their share of escrow fees, and settle any property taxes owed through the closing date.
The combined owner’s and lender’s title premiums, plus search and settlement charges, generally land between 0.5% and 1.0% of the price. On a $575,000 home that works out to roughly $2,800 to $5,700. Escrow fees for a standard residential sale commonly run $1,000 to $3,000 total, split between the parties.
If the property sits in a homeowners association, the seller is responsible for the resale certificate disclosing the association’s finances, rules, and pending assessments. The association can charge up to $275 to prepare it, plus up to $100 to update one issued within the prior six months.4Washington State Legislature. RCW 64.90.640 – Unit Resales, Resale Certificate
Washington Real Estate Excise Tax
Washington charges a real estate excise tax (REET) on nearly every property sale. It is the seller’s responsibility, and the state rate is graduated, meaning each tier applies only to the portion of the price that falls within it. The current thresholds took effect January 1, 2023 and remain in place through 2026, with the next scheduled adjustment on January 1, 2027.5Washington State Legislature. Washington Code Title 82 Chapter 82.45 – Tax on Sale of Property
- $525,000 or less: 1.10%
- $525,001 to $1,525,000: 1.28% of the portion in this tier
- $1,525,001 to $3,025,000: 2.75% of the portion in this tier
- Above $3,025,000: 3.00% of the portion above this threshold
A $575,000 sale, for example, owes 1.10% on the first $525,000 ($5,775) plus 1.28% on the remaining $50,000 ($640), totaling $6,415 in state REET.6Washington Department of Revenue. Real Estate Excise Tax
Local REET Add-Ons
Most Washington cities and counties stack their own excise tax on top of the state rate. Local REET varies from 0% in a handful of smaller communities to as high as 2% in San Juan County. Seattle, Spokane, and most urban areas charge around 0.50%; many unincorporated county areas charge 0.25%.7Washington Department of Revenue. Local Real Estate Excise Tax Rates The local rate applies to the full sale price, with no tiers. On that same $575,000 sale in a 0.50% jurisdiction, the local tax adds $2,875. The county will not record the deed until both the state and local portions have been paid.8King County, Washington. Real Estate Excise Tax
Real Estate Commissions After the 2024 Changes
Commissions were traditionally the biggest seller-side cost after REET, but how they’re set and who pays has changed. A national settlement by the National Association of Realtors, combined with Washington’s Senate Bill 5191 (effective January 1, 2024), means sellers are no longer required to offer compensation to a buyer’s agent through the multiple listing service. Buyers must now sign a written agreement with their agent spelling out compensation before the agent begins work.9Washington State Legislature. Senate Bill Report SB 5191
Total commissions in Washington now average about 5% of the sale price, usually split between the two agents’ brokerages. Who pays which side, and in what proportion, is negotiable. Some sellers still agree to cover both agents to attract a wider pool of buyers; others agree only to pay their own. Treat commission as a line item to negotiate, not a fixed cost to assume.
Property Tax Prorations
Washington property taxes are due in two installments each year: the first half by April 30 and the second half by October 31.10Washington Department of Revenue. 2026 Property Tax Calendar Due Dates Escrow prorates these at closing so each party pays only for the days they actually owned the home during the current tax period. Depending on timing, this shows up on the settlement statement as a credit in either direction.
Seller Concessions If You’re Short on Cash
A buyer who is tight on closing funds can ask the seller to contribute. These contributions, called seller concessions, lower the cash you need at the table without changing the sale price or the loan amount. Caps depend on the loan:
- Conventional loans: 3% to 6% of the purchase price, depending on your down payment.
- FHA loans: up to 6% of the sale price or appraised value, whichever is lower.11U.S. Department of Housing and Urban Development. What Costs Can a Seller or Other Interested Party Pay on Behalf of the Borrower
- VA loans: up to 4% of the home’s reasonable value for concessions beyond standard closing costs.12U.S. Department of Veterans Affairs. VA Funding Fee and Loan Closing Costs
- USDA loans: up to 6% of the purchase price.
Concessions are easier to win in a slower market where sellers compete for buyers. In a hot market, a large concession request can weaken your offer against competing bids. Ask your agent to read the local conditions before building a concession into your offer.