What Are Seller Closing Costs in Seattle?

The decision to sell your home isn’t one to be taken lightly. Whether you plan to relocate to a new city, upgrade to a larger home in the Seattle suburbs, or downsize to a smaller space, you need to do your research to ensure you maximize your sale proceeds for the next chapter of your life.

When you originally bought your home in Seattle, you had to pay buyer closing costs to complete the purchase. In addition to the desire to sell your home in Seattle for a great price, you also have to factor in the seller closing costs you will incur to complete the sale. 

Below, we’ve compiled what Seattle homeowners can expect to pay in sellers closing costs, plus some tips on how to minimize those fees.

What closing costs do sellers pay?

Similar to other states in the country, seller closing costs in Washington State are a larger percentage of sale price relative to buyer closing costs. This is because sellers are responsible for bigger ticket items such as taxes, recording fees, and broker commissions, whereas buyers are responsible for costs like loan origination fees.

Seller closing costs in Seattle

• Real estate broker commission
• Real estate excise taxes (REET)
• Title insurance owner’s policy
• Local recording fees and taxes
• Pro-rated property taxes
• Escrow fees
• Tax liens, if applicable

The real estate excise tax (REET)

In Washington State, there is a real estate excise tax, commonly referred to by the acronym REET. A real estate excise tax, also known as a transfer tax, is paid by the seller of real property at time of closing. The best way to think about this type of tax is like sales tax on your home paid to the Washington State Department of Revenue.

The REET amount a seller pays is calculated as a percentage of the sale price, and the rates (shown below) follow a graduating scale - meaning you pay a higher rate at higher price ranges.

Real estate excise tax (REET) rates in Washington

• $500,000 or less: 1.10%
• Over $500,000 to $1,500,00: 1.28%
• Over $1,500,000 to $3,000,000: 2.75%
• Greater than $3,000,000: 3.00%

Average seller closing costs in Seattle

The average closing costs Seattle homeowners pay total between 4% and 10% of the sale price. These real estate transaction fees will vary from property to property depending on the broker commission rate, sale price of the property, any negotiated concessions with buyers, and what county the property is located in.

The largest seller closing cost in Seattle is typically the real estate broker commission. And since the real estate excise tax (REET) is calculated on a graduating rate scale, home sales at higher price points are likely to result in closing costs that are a larger percentage of the sale price.

How to reduce seller closing costs in Seattle

When pondering how to lower their closing costs, sellers should focus on the largest fee they have to pay - broker commission. 

Despite what some listing agents might say, real estate commissions are always negotiable, and you don’t have to agree to a 5% or 6% commission rate to sell your home in Seattle. Homeowners should interview multiple agents to evaluate their experience before listing, and they should also push for a lower commission rate.

There are alternatives to the high commission rates of traditional brokers. For example, sellers with Prevu Real Estate, a tech-enabled brokerage in Washington State, pay a fair 2% commission to the listing agent while offering a buyer’s agent commission with the company’s Smart Seller Program. This allows home sellers to save significantly compared to other major brokerages.

Prevu agents deliver all of the local expertise you’d expect from a licensed agent. But thanks to technology, Prevu can offer more consumer-friendly fees. From property marketing strategy to private showings and negotiation, your Prevu agent is with you every step of the way.

How to calculate net proceeds on a home sale 

In order for a homeowner to understand how much cash they will clear from the sale of their home is to calculate their net sale proceeds. To do so, they will need three key inputs, including: 1) sale price, 2) balance of any existing mortgage(s) that will be paid off at closing, and 3) total of seller closing costs discussed above.

Formula to calculate Net Sale Proceeds:

Net Sale Proceeds = Sale Price - Mortgage Balance Payoff - Seller Closing Costs

Interested in selling your home in Seattle? Schedule a free home valuation today with Prevu’s Smart Seller Program.