Guide to Customary Real Estate Closing Costs in Washington State

Search homes for sale in your area right now!

Search homes for sale in your area right now!

Is Mortgage Debt Good or Bad?

Customary Closing Costs

The Buyer customarily pays for:

  • One-half of the escrow fees (according to the Purchase & Sale Agreement)
  • Lender’s Extended Title Insurance Premium (known as an ALTA policy and benefits the lender)
  • Recording charges for all documents in buyers name (Deed of Trust, Mortgage)
  • Document preparation fees (if applicable)
  • Inspection fees (according to the Purchase & Sale agreement), whole house inspection, sewer scopes, pest inspections, well water tests, etc.
  • Home warranty (according to the Purchase & Sale agreement)
  • Homeowners hazard insurance for the first year
  • Fees associated with procuring a loan (origination fees, points, appraisal, credit bureau report, flood insurance, processor fees, etc)
  • Interim interest on new loan pro-rated from the date of funding to the first payment date.NeedAnAgent

The above items typically range from 1% to 3% of the sales price, usually closer to 3%. Real estate commission are negotiable.

The Seller customarily pays for:

  • One-half of the escrow fees (according to the Purchase & Sale Agreement)
  • Owner’s title Insurance premium (benefits the Buyer)
  • Excise tax of 1.78% of sales price (specifically for King County and as of this writing, check with a local agent if you are outside of King County)
  • Real estate commissions (real estate commission are always negotiable)
  • Any unpaid homeowner’s dues, fees or assessments
  • Home warranty (according to the Purchase & Sale agreement)
  • Any judgments, tax liens, assessments or encumbrances showing on title
  • Any loan fees required by buyer’s lender and determined by the type of loan; FHA, VA, etc.
  • Payoff of any mortgages or line’s of credit, reconveyance fees, prepayment penalties and interest accrued.
  • Work orders if required by lender or agreed between parties (according to the Purchase & Sale agreement)
  • Septic (or On-Site Service Certification) if applicable.

The above items typically range from 8.5% to 10% of the sales price, usually closer to 8.5% (this range does not account for mortgages or other liens) Real estate commission are negotiable.

Every transaction is unique and some or all of these fees may be negotiated as part of the listing and/or purchase process. While most of these fees are appropriate for Washington State, a few are typically only of King County. Always verify all fees with your local municipalities, homeowner’s associations and lien holders. The author makes no guarantees on any of these figures. Estimates are based on fees as of the time of this writing and are subject to change. 

If you need a real estate agent in your local market, please contact me and I’ll make sure to connect you with an experienced and reputable broker.ContactMe

 

 

%d bloggers like this: