What It Actually Costs to Sell a Home in Washington State

By Jack Macdonald
Macdonald Group of Compass

One of the first questions I get from sellers, usually before we even talk about price, is some version of: what am I actually going to walk away with? It's the right question to ask early, because the gap between your sale price and your net proceeds can be bigger than people expect if you haven't thought through the costs.

Washington has some seller costs that are pretty standard across the country, and a few that are specific to this state. Here's how it actually breaks down.

The Washington State Real Estate Excise Tax

This one surprises a lot of sellers, especially those coming from other states. Washington charges a real estate excise tax (REET) on the seller at closing. Effective January 1, 2023, it's a graduated rate based on sale price, not a flat percentage. The state portion looks like this:

• Sales up to $525,000: 1.1%
• $525,000 to $1,525,000: 1.28%
• $1,525,000 to $3,025,000: 2.75%
• Over $3,025,000: 3.0%

On top of the state rate, cities and counties add their own local REET. Most Eastside cities in King County, including Bellevue and Kirkland, charge an additional 0.50% on the full sale price. That local piece adds up fast and is not trivial. On the Eastside, where a lot of homes sell in the $1 million to $2 million range, sellers are paying somewhere in the 1.28% to 2.75% band on portions of the sale price. On a $1.5 million sale, the combined state and local REET adds up to roughly $25,000 to $26,000 depending on the city. This is one of the bigger costs sellers underestimate.

Your exact local rate depends on where the property sits, so confirm the specific local REET with your escrow officer before closing.

Agent Commission

Commission has gotten more complicated to talk about since the National Association of Realtors settlement in 2024 changed how buyer agent compensation works. The old standard of a seller paying a set percentage to cover both agents is no longer the automatic default.

What hasn't changed is that you're likely still going to pay your listing agent a commission, and in most transactions on the Eastside, sellers are still offering some form of compensation to the buyer's agent, either directly or through negotiation in the contract. The amount varies, and you should have a direct conversation with your agent about what makes sense for your specific situation.

What I'd tell any seller: don't let the commission conversation be vague. Ask exactly what you're paying, to whom, and what you're getting for it. The services behind that number matter a lot, especially in how a home is prepared, priced, and marketed.

Title Insurance and Escrow Fees

In Washington, sellers typically pay for the owner's title insurance policy. This protects the buyer against any title defects going back through the history of the property. On an Eastside home in the $1 million to $1.5 million range, owner's title insurance often runs somewhere in the $2,000 to $3,500 range, though it scales with the sale price.

Escrow fees are generally split between buyer and seller, and can run $1,500 to $2,500 per side depending on the escrow company and the complexity of the transaction.

Prorations at Closing

These aren't really a cost in the traditional sense, but they do affect your net. Property taxes in Washington are paid in arrears, so at closing you'll typically owe a prorated share of the current tax year up to the date you close. If taxes are $8,000 a year and you close in April, you're crediting the buyer for roughly four months' worth. HOA dues, if applicable, get prorated the same way.

Seller Concessions

In a softer market or on a home that needs work, buyers often ask sellers to cover a portion of their closing costs or contribute toward repairs. This isn't universal, and in a competitive situation you're unlikely to face it. But in the current Eastside market, where some price points and property types are moving slower than others, it's realistic to factor in the possibility of a $5,000 to $15,000 concession depending on the home and how the negotiation goes.

Repairs and Prep Before Listing

This is the category where sellers have the most control, and also where the range is widest. Some homes go on the market after a good cleaning and fresh landscaping. Others need a roof, new carpet, paint throughout, and deferred maintenance items a buyer's inspector would flag.

On the Eastside, where buyers are paying a lot of money and have options, the condition of a home really does affect the price you get and how quickly you sell. I'd rather a seller spend $10,000 addressing the right things before we list than watch the home sit and take a price reduction that costs more than the fix would have.

The prep category could be a few hundred dollars or it could be $30,000 depending on the home's age and condition. Homes from the 1980s in areas like Bellevue's Crossroads neighborhood or older parts of Kirkland often have more deferred maintenance than newer builds in Sammamish or Issaquah Highlands.

Putting It Together: A Rough Example

Take a home on the Eastside selling for $1.3 million. Here's what the cost side might look like in round numbers:

• Real estate excise tax (state plus local at 0.50%): approximately $22,000 for most Eastside cities
• Listing agent commission (varies): $20,000 to $35,000 or more depending on the agreement
• Buyer's agent compensation if offered by seller: varies, could be another $20,000 or negotiated separately
• Owner's title insurance: $2,500 to $3,000
• Escrow fee (seller's share): $1,500 to $2,000
• Prorated property taxes: $2,000 to $4,000 depending on timing
• Repairs and prep: $0 to $20,000 depending on the home
• Possible buyer concessions: $0 to $10,000

Before mortgage payoff, you might be looking at $65,000 to $95,000 in total costs on a $1.3 million sale, depending on how all those variables land. That's not a scary number, but it's real, and sellers who go in knowing it aren't caught off guard at the settlement statement.

What About Mortgage Payoff?

If you have a mortgage, that payoff amount comes out of proceeds at closing too. It's not a closing cost exactly, but it's the biggest number on the page for most sellers. Request a payoff quote from your lender before you list so you know what you're working with.

Capital Gains: Worth Knowing Before You Sell

Washington does have a capital gains excise tax, but state law explicitly excludes real estate sales from it. So selling your home does not trigger Washington's capital gains excise tax. At the federal level, if you've lived in the home as your primary residence for at least two of the last five years, you can exclude up to $250,000 of gain as a single filer or $500,000 filing jointly. Eastside homes that were purchased 10 or 15 years ago have appreciated significantly, and some sellers in higher price brackets should talk to a CPA before closing to understand where they stand on the federal side.

This is one of those areas where I'll always point sellers toward their accountant rather than guess, because the details matter and the numbers can be significant.

Who pays the real estate excise tax in Washington, the buyer or the seller?

The seller pays it. It's calculated on the total sale price and comes out of your proceeds at closing. Washington's graduated state rate structure means homes selling above $525,000 are paying a higher percentage on the amount above that threshold, and it steps up again above $1,525,000. Most Eastside cities in King County also add a local REET of 0.50% on the full sale price, so the combined total is meaningfully larger than the state portion alone. On most Eastside sales, this is one of the larger line items on the settlement statement.

Do sellers in Washington still have to pay the buyer's agent commission?

Not automatically, the way it used to work. Since the 2024 NAR settlement, how buyer's agent compensation gets handled is more negotiable and less standardized. In practice, many Eastside sellers are still offering some buyer's agent compensation because it affects how the home is shown and received, but the specifics depend on your situation. This is worth a direct conversation with your listing agent before you list.

What is owner's title insurance and why does the seller pay for it in Washington?

Owner's title insurance protects the buyer against any title defects from the property's history, things like liens, recording errors, or ownership disputes that predate the sale. In Washington, it's customary for the seller to cover this policy. It's a one time cost at closing, and the amount scales with the sale price. On a $1 million plus home, expect somewhere in the $2,500 to $3,500 range, though it varies by provider.

Does Washington have a capital gains tax on home sales?

Washington has a capital gains excise tax, but state law explicitly excludes real estate from it. So there is no Washington capital gains excise tax on the sale of your home. At the federal level, the primary residence exclusion still applies: up to $250,000 for single filers and $500,000 for married couples filing jointly, assuming you've lived there for two of the last five years. If your gain exceeds those thresholds, talk to a CPA before you close.

How do prorated property taxes work when I sell?

Washington property taxes are paid in arrears, meaning you pay for a period you've already lived through. At closing, you'll owe the buyer a credit for the portion of the current tax year up to your closing date. If you close in October, for example, you're crediting ten months of taxes. Your escrow officer calculates this precisely, but it's worth knowing in advance because it reduces your net proceeds.

How much should I budget for repairs and prep before listing on the Eastside?

It varies a lot by home age and condition. A well maintained home in good shape might need $2,000 to $5,000 for paint touch ups, landscaping, and cleaning. A home from the 1970s or 1980s that has some deferred maintenance could realistically need $15,000 to $30,000 or more to get to a condition that holds up to buyer scrutiny at current price levels. Eastside buyers are paying a premium and they notice things. The cost of skipping prep often shows up in a lower offer or a longer time on market.