Seattle Closing Costs: What Buyers And Sellers Should Expect

How much will you bring to closing in Seattle, and what will you walk away with? If you are buying or selling anywhere in King County, understanding closing costs early helps you set a realistic budget and negotiate with confidence. In this guide, you will get clear ranges for buyers and sellers, a line-by-line overview of typical fees, quick estimate formulas, and simple next steps to pin down your exact numbers. Let’s dive in.

Typical closing costs in Seattle

• Buyers using a mortgage typically pay about 2% to 5% of the purchase price in closing costs. All-cash buyers are often under 1%.
• Sellers commonly pay about 6% to 10% of the sale price in total closing costs. Commission is usually the largest line item and is negotiable.
• In Washington, the Real Estate Excise Tax (REET) applies to property transfers and is customarily paid by the seller, unless negotiated otherwise.
• These percentages cover closing costs only. They do not include a buyer’s down payment or a seller’s pre-listing prep.

Buyer closing costs explained

Loan and lender fees

If you are financing, expect lender-related charges. Loan origination is often 0.5% to 1.0% of the loan amount. You may also see underwriting, processing, or administration fees that can run $300 to $1,200, plus a credit report, typically $30 to $60. An appraisal usually costs $450 to $1,200+ depending on property type and complexity. Discount points are optional, with 1 point = 1% of the loan amount, and can lower your rate.

Title, escrow, and recording

Buyers typically pay for the lender’s title insurance policy when there is a mortgage. The owner’s title policy is commonly paid by the seller in many Washington transactions, but this is negotiable. In King County, escrow or settlement fees are often split between buyer and seller. Buyers usually pay the recording fees for the mortgage, which can range from a few dozen to a few hundred dollars.

Prepaids and inspections

Prepaid items cover things like homeowner’s insurance, initial escrow setup, and property tax prorations tied to the closing date. You will likely reimburse the seller for any taxes they paid that cover your ownership period, or you may prepay amounts held in escrow. Inspections can include a general home inspection $300 to $800, pest inspection $75 to $250, and specialized inspections for items like sewer, foundation, or chimney.

Quick buyer estimate

Use this two-step formula for a fast range:

• Step 1: Loan fees, title, and escrow = about 1% to 3% of purchase price.
• Step 2: Appraisal, inspections, and prepaids = about 0.5% to 2%.

Total buyer closing-cost estimate = 2% to 5% of purchase price, plus down payment.

Example on an $800,000 purchase: low end about $16,000; high end about $40,000.

Seller closing costs explained

Commission and REET

Commission is commonly 5% to 6% of the sale price in Seattle and is negotiable. Washington’s Real Estate Excise Tax (REET) applies to most property sales and is customarily paid by the seller unless the contract states otherwise. REET rates and brackets can change, so confirm current rules before you list.

Title, escrow, and prorations

In many Washington transactions, the seller pays for the owner’s title insurance policy, while escrow fees are often split. You will also see prorated property taxes based on your ownership period. Escrow will handle the payoff of your mortgage and any liens, and you may pay small recording charges for the deed or reconveyance.

Repairs and negotiated credits

Inspection findings can lead to repairs before closing or a seller credit to the buyer. The amount varies by property condition and negotiation. Some sellers also agree to pay part of the buyer’s closing costs, subject to loan program limits.

Quick seller estimate

Use this two-step formula to plan:

• Step 1: Commission = 5% to 6% of sale price.
• Step 2: Add REET, title, escrow, prorations, and any credits = commonly 1% to 4%.

Total seller closing-cost estimate = 6% to 10% of sale price.

Example on a $1,000,000 sale: about $60,000 on the low end to $100,000 on the high end, depending on your actual commission, REET bracket, and any repairs or credits.

What can change your total

• Purchase price: Percentage-based costs scale with price, and higher prices can move into different REET brackets.
• Cash vs. mortgage: Cash buyers skip lender fees, appraisal, and mortgage recording, which lowers costs.
• Negotiation: Who pays the owner’s title policy, how escrow is split, and any seller concessions are contract items.
• Property condition: Older or complex homes can prompt more inspections and repairs, which may lead to credits.
• HOA and condos: Associations may charge transfer, move-in, or capital contribution fees.
• New construction: Builder contracts often allocate costs differently.
• Loan type and lender: Conventional, FHA, and VA loans have different fee structures and limits on seller-paid costs.
• Tax and rule changes: REET and local fee schedules can change. Always confirm current rules before you finalize numbers.

How to get exact numbers

Buyers

1. Ask lenders for a Loan Estimate within three business days of application. It outlines loan fees, points, and prepaids.

2. Request an escrow and title fee quote for King County, including recording fees.

3. Get inspection and home insurance quotes tailored to the property.

4. If you are using a specific loan program like FHA or VA, ask about allowable seller concessions.

Sellers

1. Ask your listing agent for a Net Proceeds Estimate using your expected sale price and proposed commission rate. It should list REET, title, escrow, prorations, and likely concessions.

2. Request an owner’s title policy quote and an escrow fee breakdown for King County.

3. Verify property tax proration timing and any outstanding assessments.

4. Speak with a tax advisor about potential capital gains impact.

Simple worksheets you can use

• Buyer quick math: 2% to 5% of purchase price as a working range, plus your down payment. Add more if you plan to buy discount points.
• Seller quick math: 6% to 10% of sale price, with commission as the largest share. Adjust for REET, title, escrow, and any negotiated credits or repairs.

When you are ready to run the numbers for a home in Magnolia, Queen Anne, Ballard, or anywhere in Seattle, you deserve precise estimates and a smooth plan from offer to close. For a tailored buyer cost breakdown or a detailed seller net sheet, reach out to Strong Properties for one-on-one guidance.

FAQs

What are typical buyer closing costs in Seattle?

• Most financed buyers pay about 2% to 5% of the purchase price. Cash buyers are often under 1%.

Who usually pays Washington’s Real Estate Excise Tax (REET)?

• Customarily the seller pays REET in Washington, unless the purchase and sale agreement allocates it differently.

How are escrow fees typically split in King County?

• Escrow or settlement fees are commonly split between buyer and seller, but the contract and escrow company practices control the final allocation.

Are buyer closing costs the same as the down payment?

• No. Closing costs are separate from the down payment and cover fees like lender charges, title, escrow, recording, inspections, and prepaids.

What do sellers usually pay at closing in Seattle?

• Sellers typically see 6% to 10% of the sale price in total costs, including commission, REET, title, escrow, prorations, and any credits or repairs.

Do cash purchases reduce closing costs for buyers?

• Yes. Cash buyers avoid lender fees, appraisal in many cases, and mortgage recording, which often keeps totals under 1% of the purchase price.

When will I see final closing figures before signing?

• Buyers with loans receive a Closing Disclosure at least three business days before closing. Sellers receive a detailed settlement statement that lists all charges and net proceeds.