Closing costs encompass all the administrative and legal services that both the buyer and the seller need to pay during the final step of the real estate transaction.
Whether you’re buying or selling a home in the state of Washington, it’s important to understand these costs.
This guide can help you determine how much you should be saving for Eastside WA closing costs and what you can do to potentially lower these expenses.
Navigating Real Estate Closing Costs in Eastside, WA
The cities directly East of Seattle and Lake Washington are collectively known to locals as “the Eastside.” This is comprised of North Bend, Bellevue, Kirkland, Redmond, Sammamish, Snoqualmie, and Issaquah.
These areas are part of King County, where home prices are among the highest in the state. Consequently, buyers and sellers can expect to pay more in closing costs. Closing costs in this region usually fall between 2% and 5% of the home’s purchase price.
The average home value in King County is $905,397, so the closing costs would range between $18,107.94 and $45,269.85. In Bellevue, where the median home price is much more costly at $1.5 million, the closing costs would be around $30,000 to $75,000.
To put things into perspective, it is also important to ask, “How much are closing costs in WA?” On average, closing costs in Washington make up 2.37% of the home sale price. This is higher than the national average of 1.81%.
Considering that the median sale price of a single-family home in Washington is $626,100, the average closing costs in the state is $14,838. This is among the highest in the nation.
Keep in mind that closing costs will fluctuate depending on the price of the property, its location, and the complexity of the sale.
Comprehensive Breakdown of Buyer Closing Costs in Eastside, WA
Many of the closing costs that buyers pay for are related to their mortgage. Below are some of the typical fees and expenses buyers in Eastside, WA, cover.
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Lender-Related Fees
This includes the loan origination fee and other fees related to establishing the buyer’s mortgage loan. -
Home Appraisal Fee
A professional home appraisal is required by the lender so they can confirm that the property is worth the amount of money that the buyer is borrowing. -
Home Inspection
A home inspection is not required by lenders, but it is something that buyers can benefit from as it either confirms that there are no significant problems with the property or informs the buyer of any issues that they can use in their negotiation with the seller. -
Title Related Fees
A buyer may also be charged fees related to the title search and title insurance, which protects against ownership issues with the home. -
Escrow
A deposit may be required to cover some of the costs associated with prepaid property taxes or homeowners’ insurance. This is placed into an escrow account, for which the buyer may be charged a service fee.
Comprehensive Breakdown of Seller Closing Costs in Eastside, WA
Seller closing costs in Eastside, WA, may be less, but their total can still outweigh that of buyers because they are responsible for paying real estate agent commissions.
This expense usually amounts to somewhere between 5% and 6% of the home’s sale price. On a median-priced $626,100 Washington home, this amounts to around $31,305 to $37,566.
Below are some of the common closing costs for sellers in Eastside, WA:
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Escrow
Sellers may also be responsible for a portion of the escrow costs. The exact amount is determined after the purchase agreement has been negotiated. -
Real Estate Excise Taxes (REET)
Washington levies an excise tax on the sale of real estate property, and the seller is typically responsible for covering this cost. The exact amount varies by county, ranging from about 0.25% to 0.5% of a property’s selling price. -
Property Taxes and HOA Fees
All property taxes and HOA fees due on the home up until the closing or settlement day are the seller’s responsibility. -
Owner’s Title Insurance
The seller typically pays for the cost of this policy, amounting to around 1% to 5% of the home’s value. -
Concessions
Seller concessions are expenses that the seller agrees to during negotiations, such as home repairs.
How Buyers Can Prepare for Closing Costs
To avoid any surprises at the closing table, it’s important for buyers to budget for these costs early.
Buyers should ask their lender for a Good Faith Estimate (GFE). This outlines the estimated costs of the loan, including the closing costs, so they are aware of what they will need to pay at closing.
Generally, buyers should set aside 2% to 5% of the purchase price for closing costs to ensure that they are financially prepared.
Lastly, buyers will benefit from working with an experienced and knowledgeable real estate agent who can guide them through the entire real estate transaction. Having a real estate agent will ensure that they aware of all costs and fees involved.
Conclusion
Whether you’re buying or selling a home in Eastside, WA, understanding closing costs and preparing ahead of time is important, as this can affect your overall budget and financial planning.
As an experienced real estate agent in Washington, I can help you navigate the entire process smoothly. Please give me a call at (206) 590-6316 or send me an email at amanda.wright@cbrealty.com to schedule an appointment.
Frequently Asked Questions
Closing costs in Eastside, WA, range between 2% and 5% of the home’s purchase price.
Real estate agent commissions are the biggest closing cost for sellers in Eastside, WA, ranging from 5% to 6% of the home’s sale price. On a median-priced $626,100 Washington home, this amounts to around $31,305 to $37,566.
Yes, closing costs are negotiable in Washington State. Buyers can negotiate with sellers to cover some or all of their closing costs, which is often referred to as a “seller concession”. Buyers can also negotiate with lenders to reduce certain fees, such as origination fees.
