Trying to figure out what you’ll actually pay to close on a home in Birchwood can feel murky. You want a clear picture before you make offers or list your house, so there are no surprises at the signing table. In this guide, you’ll learn typical buyer and seller closing costs in Washington, how they’re usually split in Bellingham, and a simple example using a mid‑price Birchwood home to make the math real. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids needed to finalize your real estate sale or purchase. They include third‑party services like title, escrow, and inspections, plus lender fees if you’re financing. Some costs are tied to the property itself, like prorated taxes and homeowners insurance. Others depend on your loan structure or what you negotiate in the purchase agreement.
Who pays what in Washington
Washington sets certain rules, and local custom fills in the rest. Sellers traditionally pay the real estate excise tax and often cover the owner’s title insurance policy and broker commissions, while buyers cover lender fees and many third‑party costs. Many items are negotiable, and your purchase agreement will spell out the split.
Typical buyer‑paid costs
Buyers in Bellingham commonly cover these items:
- Lender fees if financing: origination or processing (often 0.5% to 1.5% of the loan), optional discount points, underwriting, and a credit report.
- Appraisal: usually $400 to $800.
- Inspections: general home inspection often $300 to $700; specialized tests like septic, well, or pest vary.
- Title and escrow: lender’s title insurance and part of the escrow/settlement fee, which is often split and typically ranges $400 to $1,500 total.
- Prepaids and escrows: initial deposits for property taxes and homeowners insurance, plus prepaid interest, which can range from several hundred to several thousand dollars based on timing.
- Recording and miscellaneous: recording fees typically $50 to $300, plus small courier or notary charges.
For more on what appears on a Loan Estimate or Closing Disclosure, see the Consumer Financial Protection Bureau’s guidance at the CFPB.
Typical seller‑paid costs
Sellers in Washington commonly pay:
- Real estate commissions: often the largest line item. Total commission is commonly 5% to 6% of the sale price and is negotiable.
- Real Estate Excise Tax (REET): a state tax on property sales collected at closing. Sellers traditionally pay it unless the contract assigns it differently. See current rules at the Washington Department of Revenue.
- Title and escrow: in many local transactions, sellers pay for the owner’s title insurance policy and may split or cover portions of escrow fees.
- Mortgage payoff, liens, and prorations: any existing loan balances, plus the seller’s share of property taxes up to the date of closing.
- Agreed repairs or credits: items negotiated after inspection can add to seller costs.
Local recording, tax proration, and payment procedures are administered through Whatcom County offices. You can review county processes at Whatcom County.
Costs that are often split or negotiated
Some charges depend on your agreement and local custom:
- Escrow/settlement fee
- Owner’s title insurance cost
- Recording fees
- HOA transfer and estoppel fees
- Seller credits toward buyer closing costs, subject to loan program limits
A quick check with your title/escrow team early in the process helps set realistic expectations for the Birchwood market.
Birchwood example: a $600,000 sale (illustrative)
The following example is only an estimate to show how numbers can stack up. Actual closing costs vary by lender, title company, loan type, and what you negotiate.
Buyer example: cash to close (excluding down payment)
Assumptions:
- Purchase price: $600,000
- 20% down payment; loan amount $480,000
- Typical buyer closing costs: about 2% to 5% of the purchase price
Estimated buyer closing cost range:
- Low estimate at 2%: about $12,000
- Higher estimate at 5%: about $30,000
Typical line items might include:
- Appraisal: about $500
- Inspection: about $500
- Lender fees and optional points: roughly $2,400 to $7,200
- Title and escrow: about $1,000 to $2,000
- Prepaids and escrow deposits: about $2,000 to $8,000
- Recording and miscellaneous: about $200 to $600
Your lender must deliver a final Closing Disclosure at least three business days before closing. Learn what to expect on that form at the CFPB.
Seller example: closing costs and net proceeds
Assumptions:
- Sale price: $600,000
- Commission range: 5% to 6% of the sale price, negotiated
Estimated seller cost components (excluding mortgage payoff):
- Real estate commission: about $30,000 to $36,000
- Title, escrow, and owner’s title policy: about $1,000 to $3,000
- Prorated property taxes: often $1,000 to $3,500 depending on timing
- Repairs or credits: varies by agreement (example $0 to $5,000)
- REET: calculated per current Washington Department of Revenue rules, collected at closing
Illustrative total for seller costs, excluding any mortgage payoff:
- Lower estimate: about $33,000
- Higher estimate with larger fees and a modest credit: about $44,500
Your net proceeds equal sale price minus seller closing costs, your mortgage payoff, and any liens or adjustments.
Property taxes and REET in Whatcom County
Two state and county items matter a lot at closing: property tax proration and REET.
- Property tax proration: Taxes are split between buyer and seller based on the closing date. The seller pays their share up to the date of closing, and the buyer pays from closing forward.
- REET: Real Estate Excise Tax applies to real property sales and is collected at closing in line with Washington Department of Revenue rules. Whatcom County processes the remittance and recording; check Whatcom County for procedures and fee schedules.
If you are comparing title insurance options, the Washington Land Title Association provides industry context for how title insurance works statewide at the WLTA.
How to lower or plan for closing costs
Buyer tips
- Shop lenders. Ask for a written, itemized Loan Estimate and compare total cash to close, rates, and points across at least two lenders.
- Consider seller credits. You can negotiate for the seller to cover some buyer closing costs, subject to your loan program’s limits.
- Mind the calendar. Closing near month‑end can reduce prepaid interest. Your title and lender can help you model the timing.
- Be wire‑fraud aware. Always verify wiring instructions by calling your title company at a known, verified number before sending funds.
Seller tips
- Model your net. Review a draft net sheet that includes commission, likely escrow and title costs, estimated REET, prorated taxes, and a realistic repair credit range.
- Confirm local custom. Ask your escrow officer who typically pays for owner’s title insurance and how escrow fees are split in Bellingham.
- Address repairs early. Taking care of obvious items before listing can reduce last‑minute credits during inspection.
- Plan for taxes. Ask your closing agent to estimate REET and any county recording charges so you can set expectations for your proceeds.
When you see final numbers
- Buyers with a mortgage receive a Closing Disclosure at least three business days before signing. Review it carefully and ask your lender to explain any changes from your Loan Estimate. You can learn about both documents at the CFPB.
- Sellers receive a final settlement statement at or before closing. Your escrow officer can walk you through each line item and your net proceeds.
Work with a local team who knows Birchwood
Closing costs have many moving parts, and a clear plan helps you buy or sell with confidence. If you’re weighing a purchase or getting ready to list in Birchwood or anywhere in Bellingham, we’ll help you budget precisely, negotiate smartly, and navigate every step to a smooth closing. Reach out to Julian & Company to talk through your numbers or request a personalized net sheet. Get your free home valuation — start the conversation.
FAQs
Who pays real estate excise tax in Washington?
- In Washington, sellers traditionally pay REET, though a purchase agreement can assign it differently. For current rules and rate structure, see the Washington Department of Revenue.
How much should a Birchwood buyer budget for closing costs?
- A typical estimate is about 2% to 5% of the purchase price, not including your down payment; actual costs depend on your loan, prepaids, and negotiated credits.
What are common seller closing costs in Bellingham?
- The largest item is usually commission, commonly about 5% to 6% of the sale price, plus REET, title and escrow fees, prorated taxes, and any agreed credits or repairs.
Can a seller pay a buyer’s closing costs in Washington?
- Yes. Seller credits are common and negotiable, but your loan program sets limits on how much the buyer can receive toward closing costs.
When will I get my final closing figures?
- Buyers with a loan receive a Closing Disclosure at least three business days before closing, and sellers receive a final settlement statement at or before closing from the escrow company.
