Staring at a long list of fees on your Closing Disclosure can feel overwhelming. You want to know exactly what you will pay, what the other side covers, and where you can save. The good news is that Seattle and King County closing costs follow clear patterns once you understand the categories and local customs. In this guide, you will learn who typically pays what, how to estimate your cash to close or net proceeds, and smart ways to reduce costs. Let’s dive in.
What closing costs include in Seattle
Closing costs are the one‑time fees and prepaid items you pay at closing. They are separate from your down payment. In Washington, title and escrow companies handle closing, coordinate payoffs and prorations, and record the deed with the county. Many items are customary but negotiable, and exact amounts vary by lender, title company, and program.
Who typically pays what
In the Seattle and broader King County market, sellers commonly pay the real estate commission, the owner’s title insurance policy, and seller‑side escrow and recording fees. Sellers also pay Washington’s Real Estate Excise Tax, often called REET. Buyers usually pay loan fees, the lender’s title policy, their share of escrow if split, and prepaids like insurance and property taxes, plus any initial escrow reserves the lender requires. These practices are common, not legal rules, and can be negotiated.
Buyer closing costs in Seattle: what to expect
For buyers, a typical range is about 2 percent to 5 percent of the purchase price, not including your down payment. Your total depends on your loan program, lender pricing, and the timing of your closing.
Loan fees and lender charges
Lender fees often include origination or underwriting, application, processing, and your credit report. Combined, these charges are commonly 0.5 percent to 1.5 percent of the loan amount. Lender credits can offset some costs, though they often come with a higher interest rate.
Third‑party inspections and appraisal
Most buyers order a home inspection and the lender orders an appraisal. A general home inspection often runs about $300 to $700. An appraisal typically ranges from $400 to $1,000 or more depending on property type. Condos or unique properties can add specialized report costs or HOA document fees.
Title, escrow, and recording
Buyers typically pay for the lender’s title insurance policy, plus a share of the escrow or settlement fee and county recording fees. In many Puget Sound transactions, the seller pays for the owner’s title policy, though this is negotiable.
Prepaids and escrow reserves
Plan for your first year of homeowner’s insurance (prorated), property tax prorations, and daily mortgage interest from funding to month‑end. Your lender may also require 2 to 6 months of reserves for taxes and insurance, which are deposited into your escrow account at closing.
Mortgage insurance and earnest money
If you put less than 20 percent down on a conventional loan, you will likely have private mortgage insurance. FHA loans include mortgage insurance premiums. Your earnest money deposit is not a closing cost, but it reduces how much cash you bring to closing if it is applied to your purchase. In competitive Seattle and Eastside markets, earnest money often ranges from about 0.5 percent to 3 percent or more of the price.
How to estimate buyer cash to close
Use this simple method to estimate your total cash to close:
- Start with the purchase price.
- Subtract earnest money already deposited.
- Add your down payment.
- Add buyer closing costs, often 2 percent to 5 percent of the price.
- Add prepaids and initial escrow reserves, which often run about $1,500 to $8,000 depending on timing and taxes.
- Subtract any seller credits or lender credits.
Here is a labeled estimate for a Seattle single‑family home:
- Purchase price: $800,000
- Down payment at 20 percent: $160,000
- Buyer closing costs at 3 percent: $24,000
- Prepaids and reserves: $3,000
- Earnest money already paid at 1 percent: $8,000
- Estimated cash to close: $160,000 + $24,000 + $3,000 – $8,000 = $179,000
If you choose a lower down payment, your cash to close may shift due to mortgage insurance and the lender’s required reserves, even if some fees stay similar.
Verify your numbers early
- Ask your lender for a Loan Estimate within three business days of application. It lists expected closing costs line by line.
- Request an itemized quote from your title and escrow provider for title premiums, escrow fees, and recording fees.
- Check the King County Assessor’s property tax schedule to understand proration and estimate reserves.
Seller closing costs in Seattle: what to expect
Seller costs vary by price, commission structure, and taxes. When you include commissions, total seller‑side costs often fall around 6 percent to 10 percent of the sale price in many markets, though your amount will depend on your listing agreement and transaction specifics.
Commission structures
Commission is the largest single line item for most sellers. Regional and national norms often fall in the 4 percent to 6 percent range of the sale price, split between listing and buyer brokers. Commission is fully negotiable and can be structured as a percentage, a flat fee, or tiered.
Washington Real Estate Excise Tax
Sellers in Washington pay REET on the sale. Rates are set by the state on a tiered schedule, and rules can change. For accurate figures and any exemptions, verify with the Washington State Department of Revenue.
Title, escrow, and recording charges
In many Puget Sound transactions, sellers pay for the owner’s title insurance policy. You may also see your share of escrow or settlement fees and recording charges. If your home is in an HOA, budget for any transfer or processing fees.
Payoffs, per‑diem interest, and repairs
Your existing mortgage payoff includes daily interest through the day of closing. Prepayment penalties are uncommon on most residential loans, but confirm with your lender. You may also agree to repair credits or concessions to the buyer as part of negotiations.
Example seller net estimate
- Sale price: $800,000
- Commission at 5 percent: $40,000
- Owner’s title policy, escrow and recording fees: estimate $2,000 to $6,000
- REET: verify with the Washington State Department of Revenue
- Estimated net before mortgage payoff and prorations: Sale price – commission – seller closing fees – REET
Your actual net will also subtract your mortgage payoff and any prorations or credits.
Verify your seller figures
- Ask your listing broker for a detailed net sheet with commissions, title and escrow fees, REET estimate, and mortgage payoff estimate.
- Confirm who pays the owner’s title policy and how the escrow fee is split in your neighborhood.
- Verify REET rules and recording fees with state and county offices.
What is negotiable, and what is not
- Commission is negotiable and can be structured in different ways.
- Who pays the owner’s title policy and how you split escrow fees is customary but negotiable.
- Seller concessions, such as credits toward buyer closing costs, are negotiable but subject to loan program limits.
- Repair credits versus price reductions are common levers during inspection.
- REET and statutory fees are not negotiable and must be paid as required.
Loan programs cap how much the seller can credit toward buyer costs. The limits vary by loan type and down payment, so your lender should confirm what is allowed.
Ways to reduce closing costs
For buyers:
- Shop lenders and compare origination fees and available lender credits.
- Ask your lender for a side‑by‑side of rates with and without credits to see the tradeoffs.
- Request seller credits if the market allows, within your loan program’s cap.
- If permitted by your program, consider rolling certain costs into the loan.
For sellers:
- Discuss commission options and service levels with your listing broker.
- Request itemized quotes from title and escrow providers.
- Consider a pre‑listing inspection to reduce repair requests later.
- Use credits strategically to address repairs without delaying closing.
Local timing and escrow tips
Washington closings run through escrow, not attorneys. The escrow team coordinates title, payoffs, prorations, signing, and recording with the county. In faster Seattle and Eastside markets, buyers often use stronger earnest money and tighter timelines, which can increase upfront cash commitments before closing. If your home is in an HOA, account for document timelines and any transfer fees. For taxes, expect prorations based on the closing date and check the county schedule to estimate reserves and credits.
Quick checklists
Buyer checklist
- Get preapproved and request a Loan Estimate with line‑item closing costs.
- Ask your lender to estimate prepaids and initial escrow reserves.
- Budget for inspection(s), appraisal, and earnest money.
- Confirm who pays the owner’s title policy and what the lender’s policy will cost.
- Verify HOA transfer and document fees if buying a condo.
Seller checklist
- Ask your listing broker for a detailed net sheet with commissions, REET estimate, title and escrow fees, and mortgage payoff.
- Confirm who pays the owner’s title policy and how escrow fees are split in your area.
- Consider a pre‑listing inspection or contractor estimates for likely repair requests.
- Review REET rules and potential exemptions with the Washington State Department of Revenue.
Ready for accurate numbers?
Every property and loan program is different, but the framework above helps you plan with confidence. If you want a tailored cash‑to‑close or seller net sheet for your Seattle or Eastside move, reach out. You will get clear estimates, negotiation strategies, and a step‑by‑step plan from start to finish. Connect with Abby Quinto to get started.
FAQs
What are typical buyer closing costs in Seattle?
- Buyers commonly see about 2 percent to 5 percent of the purchase price in closing costs, not including the down payment. Your total depends on lender fees, title and escrow charges, prepaids, and reserves.
Who pays the owner’s title insurance in King County?
- It is common for the seller to pay for the owner’s title policy in Puget Sound transactions, while the buyer pays the lender’s policy, but this is negotiable.
How do property tax prorations affect closing costs in King County?
- At closing, taxes are prorated based on the closing date, and your lender may collect reserves for your escrow account, which can add several months of taxes to your upfront costs.
What is Washington’s REET and how does it impact sellers?
- The Real Estate Excise Tax is paid by the seller in Washington on a tiered schedule set by the state; verify current rates and any exemptions with the Department of Revenue.
Can a seller pay a buyer’s closing costs in Seattle?
- Yes, seller credits are common negotiation tools, but loan programs limit how much a seller can contribute, so confirm caps with your lender.
How much earnest money is typical in Seattle and the Eastside?
- Earnest money often ranges from about 0.5 percent to 3 percent or more in competitive bids, and it is usually credited back to you at closing.
