How Much Are Closing Costs in Washington State?

In Summary:

• Closing costs in Washington State typically range from 2–3% of the purchase price for buyers and 5–8% for sellers.
• Sellers usually pay agent commissions and excise taxes, while buyers cover appraisal fees, lender costs, and title insurance.
• Because many fees are negotiable, working with Schulte & Co. can help you budget accurately and avoid surprises at closing.

Closing costs are the upfront fees you pay to close a home purchase or sale. In the average real estate sale, buyer closing costs across the U.S. typically amount to about 1.6% of the sale price, according to Bankrate. 

However, these estimates don’t always include agent commissions, and costs may increase further with loan-related fees or other expenses. Add those, and costs may increase. Seller closing costs are also typically higher than those for buyers. 

However, you may find that these vary by region, so it’s important to know what to expect. So, how much are closing costs in Washington state?

Below, we examine who pays for what and how much, including loan-related charges, appraisal fees, agent commissions, and escrow fees. Learn how the actual closing cost depends on the price of the home, the loan type, and, in many cases, the market conditions. Avoid being surprised and read on for guidance from Schulte & Co’s on what to expect in Washington state.

How Much Are Closing Costs in Washington State Right Now?

Compared with the nationwide figures presented above, average closing costs in Washington state are slightly higher. According to NewHome Source, the full average is approximately 2.37% of the sales price, so budgeting 2-5% is often sensible. However, this is rarely split evenly between buyer and seller.

As the median sale price of a single-family home in Washington is currently around $626,100, per the same source, you can expect closing costs alone to be $14,838 in non-commission costs. However, this will vary based on the home's price, so be prepared to respond accordingly.

For example, based on the above calculations, a $1,000,000 home will incur nearly $24,000 in closing fees alone, and you can expect additional costs. Typical closing fees often include:

• Charges for processing and approving the mortgage

• Optional discount points to enable a lower interest rate over time

• Title insurance to protect the buyer and lender from property defects

• An escrow fee for handling money and documents

• Charges for recording the deed and document with the county

However, note that whether some of these apply to the buyer or the seller depends on the negotiations that occur before the sale agreement is executed.

Who Pays Closing Costs in Washington: Buyers or Sellers?

Typically, in a Washington purchase, you can often expect the seller to pay:

• Real estate agent commissions

• Washington real estate excise tax (REET)

• Owner’s title insurance policy

• Unpaid property taxes and local assessments

• Outstanding liens or mortgage payoffs

• HOA dues and transfer fees

• Any escrow fee (often split 50/50, but negotiable)

Meanwhile, buyers typically cover:

• Lender’s title insurance policy

• Recording fees

• Home inspection fees

• Appraisal fees

• Loan origination and lender fees

• Credit report and flood certification fees

• The remaining escrow fee

These assignments are not set in stone, however. The buyer and seller should negotiate in advance who is responsible for each major fee. The above are merely customs. 

Even with strong local expectations, however, almost every individual fee can be written into a contract. If one side has greater leverage or a stronger push to move the closing date forward, then the other can negotiate for a better outcome. 

Schulte & Co can often assist during these negotiations, walking you through the contract’s language and deadlines to help you understand what you might be signing. We can also share common local expectations and help you think about what might be negotiable, or refer you to a lawyer who can look at the legal nuances of the document.

How Much Are Typical Seller Closing Costs in Washington?

Typical closing costs in Washington, as described above, work out to around 7-8% of the purchase price, including:

• Real estate commission (5.5-6.5%)

• Washington State REET (1.28% for median-priced home sales)

• Gig Harbor REET (~0.5% in Gig Harbor)

However, as mentioned, the seller may negotiate with the buyer as to how it’s shared. 

The majority of this will be due to commission and excise tax, and the listing agreements you have signed will specify the commission amount.

You also need to plan for unresolved payments, such as HOA dues and property taxes. Settling these should be included in the final closing numbers.

Due to the seller’s cost side often being strongly percentage-based, except for set fees, even small changes in the sale price can change the amount you need to pay significantly. As such, make sure you plan carefully. Calculate costs across different price points in advance, showing estimated costs and projected proceeds, to better understand your negotiating position.

How Much Are Typical Buyer Closing Costs in Washington?

Typical closing costs in Washington, as described above, are approximately 2-3% of the sale price for the buyer and 5-7% for the seller. However, this is in addition to any down payments required by the lender. As lenders often collect several months of property taxes up front for an escrow account to pay future tax bills, ensure your plans include this amount.

When you apply for a loan, remember to use loan estimates to shop around and compare offers from multiple lenders. You can then pick the best option, reducing your burden. If you have any questions about the process, Schulte & Co. is happy to answer them as best we can.

Plan Your Closing with a Real Estate Partner You Can Trust

So, how much are closing costs in Washington state? While they may vary significantly due to several factors, you can expect them to be in the low single-digit percentages of the sale price. 

Pair these numbers with what your lender and escrow are telling you they can do for you, and then review them to get a better understanding of your position.

We can review your situation and offer concierge-style, personalized guidance through closing. Our Gig Harbor-focused real estate team can provide advice backed by a strong track record and years of local expertise. So, if you are ready to move forward, contact Schulte & Co today.

FAQs About Closing Costs in Washington State

How much are closing costs in Washington State?

Closing costs in Washington State generally total about 2–3% of the home price for buyers and 5–8% for sellers. The exact amount depends on the home price, loan type, and negotiated terms.

Who pays closing costs in Washington?

Sellers typically pay agent commissions and real estate excise tax, while buyers usually cover lender fees, appraisal costs, recording fees, and title insurance. Many of these costs can be negotiated.

What are typical seller closing costs in Washington?

Seller closing costs often total around 7–8% of the sale price, largely driven by real estate commissions and Washington’s real estate excise tax (REET).

What closing costs do buyers pay in Washington State?

Buyers typically pay appraisal fees, lender origination costs, recording fees, title insurance, and prepaid items such as taxes or insurance, totaling around 2–3% of the purchase price.

Can closing costs be negotiated in Washington?

Yes. Most closing costs can be negotiated in the purchase contract. Depending on market conditions, buyers and sellers may agree to credits, concessions, or cost-sharing arrangements.