Closing Costs for Seller in Washington

National estimates usually put seller closing costs somewhere between 6% and 10% of the sale price once agent compensation is included. That range understates Washington, because we also have a real estate excise tax that many states do not.

In Bellevue, Seattle, and across the Eastside, commission is usually the largest deduction. Excise tax is often second. Neither number tells you what you actually receive.

The number that matters is your net proceeds.

I'm Matthew Chapman, a Broker Associate with Windermere Real Estate. I have served Bellevue, Seattle, and the Eastside since 2001, and I build seller net sheets constantly. Here is the arithmetic behind them.

The Short Answer: What Does the Seller Pay at Closing?

Start with the expected sale price, subtract the mortgage payoff and every selling expense, and what remains is your net proceeds.

Here is what goes into a Washington seller net sheet.

Line item	Who pays	Typical basis
Sale price	Buyer pays seller	Agreed purchase price
Mortgage payoff	Seller	Actual lender payoff
Real estate agent compensation	As negotiated	Percentage or agreed flat amount
Real estate excise tax	Seller	Graduated state tax plus local rate
Escrow fee	Often split	Quoted fee, negotiated allocation
Owner's title insurance	Commonly seller	Quoted premium
Prorated property taxes	Seller's ownership share	Based on closing date
Buyer credits and concessions	Seller, if agreed	Contract amount
Miscellaneous fees	Varies	Flat fees or actual charges
Net proceeds	Paid to seller	Whatever is left

The mortgage payoff is not technically a closing cost, but I always include it because nothing affects your take-home figure more. The same applies to a HELOC or second mortgage secured by the property. I need those payoff amounts before any estimate means anything.

A Worked Example on an Eastside Sale

Numbers make this far easier to follow than definitions. Below are two hypothetical Bellevue sales.

These are illustrative figures, not actual transactions, current fee quotes, or claims about average Bellevue costs. The excise tax uses the Washington schedule for standard residential sales closing in 2026.

Example 1: a $1,850,000 Bellevue sale

Assume a $720,000 mortgage payoff and agreed total agent compensation of 4.5%. That compensation figure is an example contract term, not a standard or required rate.

Seller net sheet	Amount
Sale price	$1,850,000.00
Mortgage payoff	-$720,000.00
Agreed agent compensation, 4.5%	-$83,250.00
Washington real estate excise tax	-$36,762.50
Seller's escrow fee	-$1,450.00
Owner's title insurance	-$2,950.00
Prorated property taxes	-$6,900.00
Buyer credits and concessions	-$9,000.00
Miscellaneous closing charges	-$450.00
Total deductions, excluding payoff	$140,762.50
Estimated net proceeds	$989,237.50

Selling costs here come to about 7.61% of the sale price before the mortgage payoff.

Notice the seller does not walk away with $1,130,000, which is simply sale price minus loan balance. The other deductions take another $140,762.50.

Here is how that excise tax figure is built:

• First $525,000 at 1.10% = $5,775

• Next $1,000,000 at 1.28% = $12,800

• Remaining $325,000 at 2.75% = $8,937.50

• Bellevue local rate, $1,850,000 at 0.50% = $9,250

That is $27,512.50 in state excise tax plus $9,250 local, for $36,762.50 total.

Example 2: an $850,000 Bellevue sale

Same hypothetical 4.5% compensation, lower price point. This shows why I calculate each bracket instead of applying one blended rate.

Seller net sheet	Amount
Sale price	$850,000.00
Mortgage payoff	-$310,000.00
Agreed agent compensation, 4.5%	-$38,250.00
Washington real estate excise tax	-$14,185.00
Seller's escrow fee	-$950.00
Owner's title insurance	-$1,450.00
Prorated property taxes	-$3,200.00
Buyer credits	-$2,500.00
Miscellaneous closing charges	-$250.00
Total deductions, excluding payoff	$60,785.00
Estimated net proceeds	$479,215.00

The excise tax is $5,775 on the first $525,000, plus $4,160 on the remaining $325,000, plus $4,250 local, for $14,185.

Selling costs here are about 7.15% of the price. The higher-priced example reaches the 2.75% state bracket and this one does not, which is exactly why a single percentage estimate misleads people.

Real Estate Excise Tax, the Cost Most Articles Skip

Washington charges real estate excise tax, or REET, when real property is sold, and the seller is legally responsible for it under RCW 82.45.080.

National closing cost articles usually mention transfer taxes in a sentence, because many states have none. That does not work here. On an Eastside sale, REET is routinely the second-largest deduction after compensation.

Washington state REET brackets for 2026

The state portion is graduated. A higher bracket does not make the whole sale price taxable at that rate.

Portion of sale price	State REET rate
First $525,000	1.10%
Above $525,000 through $1,525,000	1.28%
Above $1,525,000 through $3,025,000	2.75%
Above $3,025,000	3.00%

These apply to standard residential property. Special classifications, exemptions, and unusual transfers can be treated differently.

If you are selling in 2027, the thresholds change. Effective January 1, 2027, the state brackets move to $551,000, $1,551,000, and $3,051,000. The four percentage rates stay the same. I check the Department of Revenue's current schedule against the expected closing date whenever a sale might cross into a new calendar year.

Local excise tax in Bellevue and the Eastside

Cities add their own REET on top of the state portion, and I include it in every net sheet.

Location	Local REET
Bellevue	0.50%
Seattle	0.50%
Redmond	0.50%
Kirkland	0.50%
Issaquah	0.50%
Bothell, King County portion	0.50%
Bothell, Snohomish County portion	0.50%

Unlike the state portion, the local tax applies to the full taxable selling price rather than in brackets. On a $1,000,000 sale, 0.50% adds $5,000.

Rates are published in the Department of Revenue's local REET schedule and can change, so confirm the figure for your property's city before relying on it.

Real Estate Agent Compensation

Compensation is usually the largest single line on the net sheet. It is negotiable, there is no required percentage, and the number that belongs on your sheet is whatever your written agreement says.

Since the practice changes that took effect on August 17, 2024, your listing-side agreement and any contribution you make toward the buyer's agent are two separate decisions. A seller may agree to contribute, but it is no longer automatic.

I keep the negotiated total on a single line so it does not get counted twice.

I have covered the detail separately in who pays realtor fees in Washington and how a realtor gets paid.

Escrow, Title, and the Rest

After excise tax and compensation, the remaining charges are smaller and vary by property, provider, and contract.

Expense	What it covers	Typical arrangement
Escrow fee	Managing funds, documents, and settlement	Often split between buyer and seller
Owner's title insurance	Protects the new owner against covered title claims	Commonly seller-paid, negotiable
Recording and release fees	Recording the deed and releasing liens	Allocated by contract
HOA resale certificate	Required association records and disclosures	Usually seller-paid where applicable
HOA transfer fee	Processing the ownership change	Varies by association
Wire and document fees	Fund transfers and processing	Based on quoted charges

I ask for actual quotes rather than applying a percentage to escrow or title. On a condo I check association charges early, because they differ building to building.

Washington closings run through licensed escrow companies or title companies with escrow departments rather than requiring an attorney. The escrow officer handles settlement and disburses funds under written instructions, as set out in WAC 208-680-560. Escrow agents are regulated by the Department of Financial Institutions.

Prorations and Credits, Where the Number Moves

This is where a seller's estimate drifts from the final settlement statement. A home can sell at the expected price and still leave less cash than planned.

Property taxes, HOA dues, and other prorations

You pay the share of property taxes covering your ownership period through the closing date. If taxes are already paid for a period the buyer will own, you may receive a credit instead. HOA dues, special assessments, and utility or fuel adjustments work the same way.

Prorations run in both directions, so the net sheet should show the actual debit or credit rather than subtracting an estimated annual bill.

Buyer credits and repair concessions

A buyer may request a closing cost credit with their offer, or a repair credit after inspection instead of asking you to do the work.

Both reduce your proceeds dollar for dollar. If you planned on $10,000 in credits and the final agreement says $18,000, your proceeds drop by another $8,000.

A negotiated credit is money out of your pocket even though it never looks like a traditional closing fee. Lender rules can also limit certain concessions, so the structure matters as much as the amount.

What Sellers Usually Forget to Budget For

Some costs never appear on the settlement statement because you paid them before closing. I separate closing costs from the broader cost of selling.

• Pre-listing repairs, painting, landscaping, and deferred maintenance

• Staging, photography, and presentation costs

• Deep cleaning and move-out cleaning

• Moving, storage, and relocation expenses

• Mortgage interest accruing through the payoff date

• Reconveyance or lien release charges

• HELOCs, second mortgages, and other secured debts

Do not add these blindly. A final lender payoff often already includes accrued interest and a release fee, and counting those twice overstates your deductions.

If you spend $12,000 preparing the home, that does not reduce your escrow proceeds. It reduces what you keep from the sale overall. Both figures matter, and they are not the same figure.

How to Get Your Real Number

Ask for a net sheet before you list, not in the final week of escrow. An early estimate tells you what sale price actually supports your plans.

What I need to prepare one

• Property address and type, including HOA details

• Estimated sale price, or the offer you want to evaluate

• Current mortgage balance, plus any HELOC or second mortgage

• Expected closing date

• Agreed compensation terms

• Any buyer credits, repair concessions, or special contract terms

• Property tax and HOA statements

• Any known liens, assessments, or payoff obligations

From there I calculate the applicable REET, use quoted fees where I have them, and flag whatever still needs confirming.

I rerun it for every serious offer

Price alone does not tell you which offer is better.

Compare a $1,200,000 offer carrying a $15,000 buyer credit against a $1,190,000 offer with no credit. The first is $10,000 higher on paper and $5,000 worse in your pocket. Terms, financing, and timeline can move it further.

I rerun the numbers after inspection and again when escrow provides updated figures, so you can see what changed and why.

The Bottom Line for Washington Sellers

What matters is how much of your home's value becomes cash you can use.

Excise tax, mortgage payoff, negotiated compensation, prorations, and buyer credits all pull on the same number. A net sheet is what brings them together.

If you are considering selling in Bellevue, Seattle, Redmond, Issaquah, or Bothell, I will prepare a property-specific net sheet and walk you through every deduction on it.

Call or text me at (206) 501-8484, or read more about working with me as your Bellevue real estate agent.

If you are still choosing an agent, my questions to ask a realtor when selling covers what else to ask. A clear net proceeds estimate should be part of that conversation.

Matthew Chapman - Windermere Real Estate Broker Associate 700 112th Ave NE, Bellevue, WA 98004

Frequently Asked Questions

How much do sellers usually pay toward closing costs?

National estimates commonly run 6% to 10% of the sale price when agent compensation is included. I do not rely on that range in Washington, because excise tax, compensation terms, and buyer credits change the result significantly. The actual deductions have to be calculated per property.

How much are closing costs on a $300,000 home?

Using a 6% to 10% national estimate, that is roughly $18,000 to $30,000 before the mortgage payoff. At an $850,000 Eastside price, the same percentages become $51,000 to $85,000. I would calculate Washington excise tax separately rather than assuming the national range holds.

Is 4% closing cost high?

It depends entirely on whether that 4% includes agent compensation. Four percent excluding compensation would be substantial. Four percent including all compensation would be low. In Washington I calculate excise tax before judging any total.

What does the seller pay at closing in Washington?

Typically the mortgage payoff, negotiated agent compensation, state and local excise tax, the seller's share of escrow and title charges, prorated property taxes, and any agreed buyer credits. The purchase agreement determines how the negotiable items are allocated.

Does the seller pay the buyer's closing costs?

Not automatically. A seller may agree to a closing cost credit or a contribution toward the buyer's agent as part of negotiations, and any agreed amount appears as a deduction on the net sheet. Since August 2024 that contribution is a separate negotiation rather than an assumed seller cost.

Who pays the excise tax in Washington?

The seller is legally responsible under RCW 82.45.080. It includes a graduated state portion and, in most Eastside cities, an additional local rate. It is settled through escrow at closing.

Can closing costs be deducted from the sale proceeds?

Yes. Escrow pays them from the sale proceeds, and you generally bring nothing to closing unless your deductions exceed what the sale produces. That is separate from whether an expense is deductible on your income tax return, which is a question for a tax professional.

How do I estimate my net proceeds before I list?

Start with an estimated sale price, then subtract the mortgage payoff, agreed compensation, excise tax, escrow and title charges, prorations, and likely buyer credits. Use your property's actual details and a proposed closing date. Then update it for every offer you receive.

Matthew Chapman

I come from a family with over 30 years of experience in real estate and previously worked in the non-profit sector. Seeing how limited funding prevented impactful ideas from becoming reality inspired my purpose-driven approach to real estate, helping clients achieve their goals while creating meaningful community impact.