When buying a home in Washington State, it’s important to understand who pays the closing costs. Closing costs are the expenses associated with a real estate transaction and can include a variety of fees, such as loan origination fees, attorney fees, title insurance, and escrow costs. Who is responsible for covering these costs varies depending on the state, and in Washington, the buyer and seller typically split the closing costs.
Buyer’s Closing Costs
The buyer is typically responsible for paying the majority of the closing costs. This includes the loan origination fees, attorney fees, and title insurance. Loan origination fees are typically charged by the lender and can range from 0.5% to 1% of the loan amount. Attorney fees are typically based on an hourly rate and can vary depending on the complexity of the transaction. Title insurance is typically a one-time fee that is based on the loan amount.
Seller’s Closing Costs
The seller is typically responsible for paying the real estate commission, which is typically 6% of the purchase price, and the escrow fees. The real estate commission is split between the buyer’s and seller’s agents and is typically paid at the closing. The escrow fees are charged by the escrow company and can vary depending on the complexity of the transaction.
Negotiating Closing Costs
When negotiating the purchase of a home, the buyer and seller can negotiate who pays the closing costs. The buyer and seller can agree to have the seller pay some or all of the buyer’s closing costs or the buyer can agree to cover some of the seller’s closing costs. This agreement is typically included in the purchase contract and is subject to lender approval.
Conclusion
In Washington State, the buyer and seller typically split the closing costs. The buyer is typically responsible for paying the loan origination fees, attorney fees, and title insurance, while the seller is typically responsible for paying the real estate commission and escrow fees. However, the buyer and seller can negotiate who pays the closing costs and this agreement is typically included in the purchase contract.
