A clear breakdown of WA seller closing costs: REET excise tax, agent commission, escrow, and proration — and how to estimate your take-home before you list.
Written by Isaac Ortiz · Real Estate Broker · Compass | NWMLS #146754
When you sell a home in Washington, the headline sale price is not what you walk away with. Before your mortgage is paid off, sellers typically pay 6–8% of the sale price in transaction costs. On a $700,000 sale, that's $42,000–$56,000 in closing costs before your payoff balance is applied. The big three are: the Real Estate Excise Tax (REET, roughly 1–2% of sale price depending on price tier), agent commission (typically 4–6% of sale price total for both sides), and escrow and title fees ($1,500–$3,000). Property tax proration, repair credits, and HOA transfer fees are smaller but add up. The Net Proceeds Calculator accounts for all of these — entering them together gives you the number that actually hits your bank account.
REET is the largest seller-specific cost in Washington and the one buyers most often don't know sellers pay. It is graduated — the rate increases as the sale price increases, applied only to the amount within each bracket, not the full price at the top rate. The starting rate is 1.1% for homes below the first threshold, rising through tiers for mid-range and luxury sales. For most Seattle, Bellevue, Kirkland, and Tacoma sales in the $500K–$1.5M range, the effective REET rate falls between 1.1% and 1.28% — meaning a $700,000 sale pays approximately $8,000–$9,000 in excise tax. The brackets adjust periodically, so confirm the current rates with your agent or escrow officer before setting your final list price.
The NAR settlement that took effect in August 2024 changed how agent compensation works nationwide, including Washington state. In practice, sellers still negotiate a listing-side commission (typically 2–3% to the seller's agent), and buyer-agent compensation is now handled through a separate buyer-broker agreement. Many sellers still choose to offer buyer-agent compensation through seller concessions because it broadens the buyer pool. The total effective commission range in WA is currently 4–6% of sale price for most transactions, split between listing and buyer sides. Your actual number depends on your listing agreement and what you negotiate. Get this in writing before signing.
Washington closings use an escrow company, which holds funds, coordinates the title transfer, and wires proceeds after closing. Seller-side escrow and title costs typically run $1,500–$3,000 for most mid-range WA transactions, covering escrow fees, the seller's share of title insurance, recording fees for the deed transfer, and document preparation. Luxury properties or transactions with added complexity (HOA transfers, estate sales) can run higher. These fees are largely fixed, not percentage-based, so they represent a smaller share on expensive properties and a larger share on lower-priced ones.
At closing, property taxes are prorated so the seller pays for the portion of the year they owned the home. In Washington, property taxes are paid in arrears, so at closing the buyer typically receives a credit for the seller's pro-rated share of the upcoming tax bill. This credit comes out of seller proceeds and is a real cost, though it may be offset by any prepaid taxes on account. Other smaller line items include HOA transfer fees (typically $300–$600 if the property is in an HOA), courier or wire fees, and notary fees — usually $500–$1,500 in aggregate.
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