Closing Costs in Seattle: What Buyers & Sellers Should Expect

Understanding closing costs in Seattle is a key part of preparing for a successful home purchase or sale. Whether you’re buying your first condo in South Lake Union or selling a Craftsman near Green Lake, these fees can influence your budget and negotiation strategy. As a local real estate professional, I help clients navigate these numbers every day, making sure there are no surprises on closing day.

What Exactly Are Closing Costs?

Closing costs include the fees associated with transferring property ownership. They cover the professionals, services, and legal requirements involved in buying or selling a home. In Seattle, where the housing market is competitive and regulation is firmly in place, these costs can be substantial. That said, with proper planning and expert guidance, the process can be seamless.

Typically, closing costs in the Seattle area range from about 2% to 5% of the home’s purchase price. For a $900,000 home — a common figure for many neighborhoods — that translates to anywhere from $18,000 to $45,000. The specific amount varies depending on loan type, property taxes, title insurance, and which party pays for what during negotiation.

Buyer Closing Costs in Seattle

Buyers usually see a mix of lender-driven and transaction-specific expenses. Here are the most common categories:

Loan Origination & Lender Fees

Mortgage lenders charge administrative fees for processing the loan application and underwriting. These can range from 0.5%–1% of the loan amount.

Appraisal

An appraisal confirms the property’s value. In Seattle, depending on size and complexity, this typically costs between $700 and $1,200.

Inspection Costs

Buyers often schedule a general inspection plus specialty evaluations for sewer lines or radon. This can add $600–$2,000 depending on the property.

Title & Escrow Fees

Washington is an escrow state, which means a neutral third party oversees funds and documents. Both title insurance and escrow services are essential to secure the transaction.

Prepaid Taxes & Insurance

Lenders often require buyers to prepay several months of homeowners insurance and property taxes into an escrow account.

Recording Fees

The county records the buyer as the new owner, and these administrative costs vary slightly by jurisdiction but are a necessary part of closing.

In many cases, buyers can use seller concessions or a lender credit to offset some of these expenses — a useful tactic when the market allows for negotiation.

Seller Closing Costs in Seattle

Selling a home in Seattle comes with its own set of expenses. It’s important for sellers to know what to expect before accepting an offer.

Real Estate Agent Commissions

This is typically the largest seller cost. Commissions are usually based on a percentage of the sale price and are negotiated upfront with the listing agent.

Title Insurance (Owner’s Policy)

In Seattle, sellers customarily pay for the owner’s title insurance policy, which protects the buyer against title issues. This cost depends on the sale price but often falls between $1,500 and $4,000 for typical homes.

Excise Tax

Washington State requires sellers to pay a real estate excise tax (REET) at closing. It is based on a tiered percentage of the sale price and is one of the most substantial seller obligations.

Escrow Fees (Split or Negotiated)

These can be divided between buyer and seller or negotiated one way depending on market conditions.

HOA Fees & Payoffs (If Applicable)

Condominium sellers often owe prorated dues and may need to pay for required resale documents.

Repairs & Credits

If home inspection negotiations uncover issues, sellers may agree to cover certain costs to keep the sale moving forward.

Closing Cost Examples

Buyer Example

• $850,000 single-family home in Ballard
  • 20% down payment
  • Estimated buyer closing costs: $22,000–$28,000

Seller Example

• $1,050,000 home in Queen Anne
  • Estimated seller closing costs: $65,000–$80,000 (primarily due to excise tax and commission)

Every situation is unique, which is why a personalized estimate early in the process is critical.

Who Pays What in Seattle?

Washington real estate follows local customs, but nearly everything is negotiable. When the market favors buyers, sellers may cover part of the buyers’ costs to help close the deal. In a tight inventory environment — like many Seattle neighborhoods — sellers often retain an advantage.

Working with an experienced Seattle Realtor ensures negotiation strategies are tailored to current market conditions, not outdated norms.

How to Reduce Closing Costs

Even though you can’t avoid closing costs entirely, you can take steps to manage them:

• Compare multiple lenders for the best mortgage rates and fees
  • Apply for lender credits (with caution regarding rate impacts)
  • Ask about first-time buyer programs and local credits
  • Negotiate repairs or concessions after inspections
  • Schedule inspections efficiently to avoid surprise add-on fees

A small shift in strategy can save thousands without sacrificing the quality of your transaction.

Why Closing Costs Feel Higher in Seattle

Seattle’s real estate market includes complex land-use regulations, premium home values, and highly competitive lending practices. These all contribute to higher-fee structures than what you’ll find in many U.S. cities. The good news: professional guidance helps ensure you only pay what’s necessary — and that the value of homeownership here continues to grow.

Local Expertise Matters

As someone who works every day in neighborhoods from Capitol Hill to West Seattle, I’m here to offer clarity from your first question through the final signature. Every transaction is different, and your closing cost estimate should match your financial priorities and timeline.

Final Thoughts on Closing Costs in Seattle

Closing costs in Seattle don’t have to be intimidating. With proper planning, clear communication, and an expert guiding your decisions, both buyers and sellers can move forward confidently. If you’re preparing to make a move in the Seattle market — or just want a personalized breakdown of your options — I’m here to help you take the next step.