Washington Real Estate Closing Costs Statistics (2024 Survey)
A new RealEstateBees.com survey of over 1,000 active real estate professionals found average closing costs for sellers and buyers in Washington.
We reached out to over 1,000 active real estate professionals from Washington to collect their insight on the real estate closing costs across the state.
The results are part of the large-scale survey—Nationwide Real Estate Closing Costs Index—conducted by the Real Estate Bees, a leading online real estate platform.
What Is Included in Closing Costs for a Seller in Washington?
Costs included in seller’s closing costs most commonly across Washington.
What Are Average Closing Costs for a Seller in Washington When Selling with a Realtor?
The most common amounts of seller’s closing costs across the state of Washington in an agent-assisted sale.
What Are Average Closing Costs for a Seller in Washington When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the state of Washington in a FSBO sale.
How to Reduce Closing Costs for a Seller in Washington?
You can shop for a lower-fee escrow company in Washington as well as make a choice on the Washington real estate agent you choose to hire or not.
Can a Seller Avoid Paying Closing Costs in Washington?
It is technically possible to avoid paying closing costs altogether, but not very practical.
It would take two willing parties working together without real estate agents where the buyer is able to pay cash for the property. The two can simply go down to the courthouse and record a deed in the new owner’s name.
Technically, the recording fee would still be a (nominal) closing cost — typically a few hundred dollars.
Then the house is likely a short sale, and they don’t have any equity. Banks will work with the seller to write those off as the bank takes a loss and the seller leaves with no funds.
By ‘can’t afford’ you must mean there isn’t enough equity in their home to pay the closing costs. If this is the case, then it’s a short sale.
What Is Included in Closing Costs for a Buyer in Washington?
Costs included in buyer’s closing costs most commonly across the state of Washington.
What Are Average Closing Costs for a Buyer in Washington When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the state of Washington in an agent-assisted sale.
What Are Average Closing Costs for a Buyer in Washington When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the state of Washington in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer in Washington When Buying with a Realtor?
The most common amounts of closing costs paid by Washington cash home buyers in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer in Washington When Buying with a Realtor?
The most common amounts of a first-time home buyer’s closing costs across the state of Washington in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer in Washington?
Paying cash is the only way to eliminate the majority of your closing costs.
Not possible unless it’s lender closing fees.
How to Negotiate Closing Costs With a Seller in Washington?
Ask the seller to pay for closing costs versus dropping the price of the home.
The closing costs paid for by the seller offset the additional funds a buyer brings to the table for closing beyond their down payment, leaving them with larger reserves post-closing.
Usually buyers like this for painting, buying furniture, doing some updates or remodeling that are better to do before moving in.
If the market allows for it, you can work closing costs into the purchase price of the home and ask the seller for a credit.
There are maximums that the seller is allowed to contribute based on the buyer’s loan amount.
Can a Buyer Avoid Paying Closing Costs in Washington?
There are some loan products that permit a buyer to have all of their closing costs paid for by the seller. That will require negotiation and seller cooperation.
Frequently, these loan programs may also require zero down. Examples of these loans are USDA rural loans or Veterans loans.
In WA, the buyer will owe at least half of the escrow fee and some other title and escrow taxes. But if paying cash, the fees will be limited.
Are There Closing Costs Assistance Programs Available for Buyers in Washington?
There are down payment assistance programs available, so in some ways, yes. Also VA loans are very low cost to buyers in terms of closing costs.
Who Pays Closing Costs in a Conventional Sale in Washington?
Who Pays Closing Costs in a Cash Sale in Washington?
Are Closing Costs Negotiable in Washington?
What Are the Available Ways to Pay Closing Costs in Washington?
Why Are Closing Costs So High in Washington?
For a buyer: Half of escrow, title policy, prepaid taxes, insurance, and mortgage payment.
The buyer doesn’t make their first mortgage maybe for up to 2 months after purchasing the home and those fees are prepaid making it appear that “closing costs” are much higher.
Closing costs are directly related to the purchase price of your transaction.
The larger the purchase price and loan amount, the more the lender will get paid, the more property taxes you’ll pay, and the more in insurance you’ll pay.
It’s a large asset, but I wouldn’t say closing costs in the 1-3% range are exorbitant.
What Are the Transfer Taxes in Closing Costs in Washington?
The state of Washington does not charge a transfer tax per se, but they do charge an excise tax with every sale.
Regulatory speaking, one major difference between excise taxes and transfer taxes is that lenders in Washington are responsible for disclosing transfer taxes, whereas excise taxes, since they are paid exclusively by the seller, are not the lender’s responsibility to disclose.
If the lender fails to disclose this transfer tax, the lender pays for it. This has been the requirement since the Dodd Frank real estate settlement reform act in 2011.
Each county also typically charges an additional excise tax. For example, in Washington’s most populous county, King County, an additional 1/2 per cent excise tax is applied to the State’s excise tax schedule.
This pushes the maximum excise tax rate in King County to 3.5%. As well, the homes in King County are typically priced among the highest in the state, so it is not unheard of to see excise tax payments of more than $100,000 in King County.
Since this tax is paid 100% by the seller, however, it is not considered a transfer tax and is therefore not incumbent upon the lender to disclose.
Who Pays Transfer Taxes in Closing Costs in Washington?
While the rate varies by property value, most homes will be taxed at a rate of 1.28%.
This excise tax, paid exclusively by the home seller, adds thousands of dollars to the cost of selling an average home in Washington state.