Customary closing costs for sellers include:
- Half of the escrow fee (for some programs, the seller pays all of the escrow fee)
- Title insurance for the buyer
- Real estate brokerage fees ( negotiable, but generally 5-6% of selling price )
- Misc recording fees
- Washington State real estate excise tax. In King, Pierce and Kitsap counties in the excise tax rate is 1.78% of the contracted selling price.
Sellers hiring a brokerage to list and sell their properties should estimate their closing costs to be 8-9% of the contracted selling price. Delinquent taxes or unpaid assessments due at closing are not included in this estimate. FSBO ( Seller's selling their own properties ) should expect their customary costs of 3.-3.5% of the contracted selling price.
Realtors have seen over time a growing expectation on the part of buyers that the seller will pay all or part of the buyer's closing costs. This can be expensive for buyers. When pricing your home to sell, keep in mind that you will most likely receive a request for a closing cost allowance or specific dollar amount to be paid for the buyer within an offer to purchase. Expect to receive a request of up to 3% of the selling price to be contributed to the buyer's closing costs. This is most common when the buyer is purchasing with a VA, FHA or USDA loan. Conventional and cash buyer's closing costs are lower overall and they generally request a smaller amount or nothing at all. It is in the seller's best interest to keep the door open and offer your home for sale to buyers using all of the buyer programs your property will qualify for. Your Realtor will advise you how to adjust price to accommodate buyer closing costs within the home's value.
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