TRANSACTION COSTS

A Complete Guide to Closing Costs in Washington State

Closing costs are one of the most commonly misunderstood aspects of a real estate transaction. First-time buyers are often surprised by how much cash is required beyond the down payment. Sellers are frequently shocked to discover how much of their gross proceeds get consumed before they receive a net check. This guide breaks down every closing cost line item for both buyers and sellers in Washington State, with specific numbers at Seattle's current price point.

Quorum Real Estate has facilitated hundreds of transactions in King and Snohomish Counties since 1985. Here's what you need to know.

BUYER COSTS

Buyer Closing Costs in Washington State

Washington State buyers typically pay 2–3% of the purchase price in closing costs, not counting the down payment. These costs fall into five categories:

Lender/Loan Costs

Loan origination fee: typically 0.5–1% of the loan amount. On an $850,000 purchase with 20% down ($680,000 loan), that's $3,400–$6,800. This covers the lender's administrative costs for underwriting and processing the loan. Also included: discount points (optional, to buy down the rate), credit report fee ($25–$50), and underwriting fee ($400–$800).

Appraisal

Required by most lenders to confirm the property value supports the loan amount. In Seattle, appraisals typically cost $600–$1,000 for a standard single-family home, and can run $1,200–$1,800 for complex or high-value properties. The buyer pays this upfront, usually before closing.

Title Insurance

Washington State buyers purchase a lender's title insurance policy (required by virtually all lenders) and may optionally purchase an owner's title policy. Lender's title insurance on an $850,000 purchase typically runs $1,200–$2,000 depending on the title company. An owner's policy adds roughly 30–40% to that cost but protects the buyer against title defects that predate the purchase.

Escrow Fees

Washington State uses escrow companies (not attorneys) to close real estate transactions. Escrow fees are typically split 50/50 between buyer and seller. Total escrow fees on an $850,000 transaction run $1,800–$2,800, so the buyer's share is approximately $900–$1,400. The escrow fee covers document preparation, funds disbursement, and recording.

Prepaid Items and Reserves

These are cash items required at closing that are not technically fees but must be paid upfront: prepaid homeowners insurance (first year, typically $1,200–$2,000 in Seattle), prepaid property taxes (3–6 months escrowed, based on property's annual tax bill), and prepaid mortgage interest (from closing date to end of month, 0–30 days of daily interest). Together, prepaids and reserves typically add $5,000–$10,000 to buyer cash requirements.

Buyer Closing Cost Summary

SELLER COSTS

Seller Closing Costs in Washington State

Sellers typically pay 6–8% of the sale price in total transaction costs — a figure that surprises many first-time sellers. The largest items are agent commissions and Washington's Real Estate Excise Tax (REET).

Agent Commissions

Seller-paid agent commissions have become more variable following NAR settlement changes. Historically, the seller paid a combined commission (listing agent + buyer's agent) of 5–6%. In 2025–2026, the buyer's agent commission is increasingly negotiated separately. Expect to pay 2.5–3% to your listing agent; the buyer's agent's compensation (if seller-paid) adds 2–2.5%. Total: 4.5–5.5% is now the most common range in Seattle.

Washington Real Estate Excise Tax (REET)

Washington State's REET is a graduated tax paid by the seller on the sale of real property. As of 2026, the rates are:

For an $850,000 sale: REET = (1.10% × $500,000) + (1.28% × $350,000) = $5,500 + $4,480 = $9,980.

Other Seller Costs

Sellers also typically pay: escrow fee (buyer's share, approximately $900–$1,400), seller's title insurance / title search ($600–$1,200), recording fees ($200–$400), home inspection repairs or seller concessions (negotiable, but budget 0.5–1% for a well-maintained property), and staging if not using furniture already in the home ($2,000–$5,000 for a vacant property).

Seller Closing Cost Summary