How Much Does it Cost to Buy a Home in Washington State? Home Buyer Closing Costs and Hidden Fees

The True Costs to Buy a Home in Washington State (So Nothing Blindsides You)

Buying a home in Washington State can feel like a maze of hidden fees, surprise charges, and last-minute line items that show up right before closing. The good news is that none of this has to be a mystery. If you understand the full cost stack upfront, you can budget confidently, negotiate harder, and avoid the deals that fall apart because a buyer simply runs out of cash at the finish line.

Below is a full walkthrough of what buyers typically pay in Washington, what fees are normal, what fees are optional but smart, and what costs you can often push back on.

Why closing costs matter

Closing costs matter for one reason: they are often what kills a deal. You can qualify for the loan, find the right home, and negotiate great terms, but if you come up short on the cash needed to close, everything stops.

In Washington State, buyer closing costs are usually about 2% to 2.5% of the purchase price.
Example:

• $600,000 home
  
  
• 2% closing costs = about $12,000
  
  
• 2.5% closing costs = about $15,000
  
  

That estimate covers most “standard” costs, but there are still important line items inside that number that you need to understand.

Down payment comes next, but it does not have to be 20%

After closing costs, your down payment is the other big cash piece. But forget the myth that you need 20% down to buy a home.

Common down payment options:

• FHA: 3.5% down
  
  
• VA (veterans): 0% down
  
  
• Conventional: sometimes as low as 3%, 5%, 10%
  
  

If you do put 20% down, you avoid mortgage insurance. That is real savings, but it is not a requirement for homeownership.

Even better, many first-time buyer programs allow zero down purchases, meaning the only cash you may need is for closing costs. And in some deals, even those closing costs can be paid by the seller through credits.

Lender fees (usually around 1% of purchase price)

Your lender charges fees to originate and fund the loan. These are typically baked into the 2% to 2.5% estimate, but here is what they include:

• Loan origination fee (largest lender cost)
  
  
• Credit report fee
  
  
• Rate lock fee or lock extension
  
  
• Discount points (if you buy down the rate)
  
  
• Appraisal
  
  

Discount points are optional. You pay more upfront to lower your interest rate. In today’s market, a few thousand dollars might buy down your rate by an eighth or a quarter point. Sometimes this makes sense, especially if you plan to keep the home for a long time. Other times you are better off saving the cash.

That is why shopping lenders matters. Different lenders price discount points very differently.

Inspections and “hidden” buyer costs

These are costs that surprise buyers because they are paid early in the process and often not included in headlines about “closing costs.”

Appraisal: usually about $750
Paid by the buyer, upfront. Can be higher for complex properties.

Home inspection: about $500 to $750
Always worth it. Western Washington homes deal with moisture, aging roofs, and past repairs. An inspection protects you even in a competitive market.

Sewer scope: optional but strongly recommended for older areas
This is the camera inspection of the sewer line. One missed sewer issue can cost tens of thousands. A real example from your transcript: skipping the scope led to a $38,000 repair.

Survey: starts around $2,500
Not required, but smart when boundaries are unclear. Fences and hedges do not guarantee property lines.

Title and escrow (settlement costs)

These are the fees paid to verify ownership, insure the title, and close the deal through a neutral third party.

• Title search and title insurance: commonly $800 to $1,500
  Buyers usually pay the lender’s title policy. This protects the lender and indirectly protects you.
  
  
• Escrow or closing fee: around $1,500
  Escrow holds earnest money, coordinates lender docs, and handles signing and recording.
  
  

Government recording fees and transfer tax traps

Washington counties charge to record your deed. These fees have risen sharply.

• Recording fee: now roughly $600 in many counties
  Used to be closer to $150 to $200.
  
  

There is also a real estate excise tax (transfer tax). This is customarily paid by the seller. But buyers must watch this carefully in the purchase contract. If it is shifted to you, it can be a huge cost:

• starts around 1%
  
  
• can rise to 3% depending on price tier
  
  

Always confirm your offer keeps this responsibility on the seller unless there is a very specific reason to negotiate otherwise.

Prepaid items collected at closing

Escrow will also collect prepaid items. These are normal, but timing matters.

• Property tax proration
  Property taxes are paid twice per year. Depending on your closing date, you may owe a bigger upfront proration.
  
  
• Homeowners insurance
  Often prepaid for the first year.
  Costs go up if the home is in a floodplain, wildfire zone, or landslide risk area. Always check hazard maps.
  
  
• Prepaid mortgage interest
  The later in the month you close, the more interest you prepay. Closing near month-end often reduces this cost.
  
  
• HOA dues and reserves review
  If the home has an HOA, you must review:
  
  
  • reserve funding
    
    
  • pending special assessments
    A surprise $10,000 assessment after closing is not rare in underfunded HOAs.
    
    

The small fees that add up

These line items are common, but you still want to confirm they are normal:

• flood certification fees
  
  
• zoning determination fees
  
  
• courier or overnight fees
  
  
• wire and document fees
  
  
• HOA document fees
  
  
• admin or legal fees
  
  

Most are legitimate. The key is to ask if something looks inflated.

Putting it all together with a real example

Let’s say you buy a $700,000 home.

• Closing costs at 2%: about $14,000
  
  
• Down payment at 3%: about $21,000
  
  
• Total cash needed: about $35,000
  
  

That is a solid baseline. Then you layer in any optional items like discount points, a sewer scope, or a survey.

And remember, with the right program:

• down payment could be zero
  
  
• closing costs could be partially or fully seller-paid
  
  

Meaning the cash needed could be far less than most buyers assume.

The simple plan to avoid surprises

1. Get pre-approved with a strong local mortgage broker (not a big box bank).
   
   
2. Budget closing costs at 2% to 2.5% of your target price.
   
   
3. Add your down payment based on your loan type.
   
   
4. Expect inspections and appraisal early.
   
   
5. Review the quote line-by-line before closing.
   
   

If you do that, the home buying process stops being scary and starts being strategic.