What Seattle Sellers Pay at Escrow
Seattle sellers pay a combination of state and local excise tax, escrow and title charges, recording fees, prorated property taxes, any outstanding HOA balances, their mortgage payoff, and any credits negotiated in the contract. The total depends on your sale price, your loan balance, your closing date, and what you agreed to, not a single fixed percentage.
Key Takeaways
Washington's real estate excise tax is charged on a graduated state schedule, and Seattle adds a local REET of 0.50 percent on top. The combined rate starts at 1.60 percent, which is meaningfully higher than the state rate alone.
Escrow fees, owner's title insurance, and recording charges are customary seller costs in Seattle, but who pays what is negotiable and set in the purchase contract.
Sellers with a mortgage should request a payoff statement early enough for escrow to reconcile it through the actual closing date. A delayed close changes the number.
Condo sellers face additional HOA charges, including resale certificates, transfer fees, and unpaid assessments, that should be confirmed with the association before listing rather than discovered on the settlement statement.
Real Estate Excise Tax
REET is the largest tax line most sellers encounter, and it's the one people most often underestimate, because they look up the state rate and stop there.
Washington charges REET on a graduated schedule based on the taxable selling price. Separately, most King County jurisdictions including Seattle levy a local REET of 0.50 percent, made up of two quarter-percent components. Both are collected at closing, and both come out of your proceeds.
| Portion of Sale Price | State Rate | Seattle Combined Rate |
|---|---|---|
| Up to $525,000 | 1.10% | 1.60% |
| $525,000 to $1,525,000 | 1.28% | 1.78% |
| $1,525,000 to $3,025,000 | 2.75% | 3.25% |
| Above $3,025,000 | 3.00% | 3.50% |
The schedule is graduated, not a flat rate at your price point. A $1 million Seattle sale is taxed at the lower rate on the first $525,000 and the higher rate on the remainder, which works out to roughly $17,600 in combined state and local REET rather than the $17,800 a flat 1.78 percent would suggest.
These thresholds are adjusted every four years, and the current schedule runs through December 31, 2026, with the next adjustment scheduled for January 1, 2027. If you're closing in early 2027, confirm the current brackets with the Department of Revenue rather than relying on this year's numbers. REET must generally be paid before the deed is recorded, and the seller customarily pays it, though exemptions apply in certain situations.
Escrow and Title
The escrow officer coordinates the whole closing: collecting funds, paying off your mortgage, remitting REET, handling prorations, and disbursing your net proceeds. Their fee appears on the settlement statement.
Owner's title insurance, which protects the buyer against title defects that predate the sale, is a customary seller cost in Washington, though like most closing costs it's negotiable and governed by the contract. Title and escrow fees vary by company and by how complicated the transaction is. Ask your escrow officer for a preliminary estimate as soon as escrow opens so there are no surprises at signing.
Recording Charges
When the deed and related documents are recorded with the King County Recorder's Office, recording fees apply. Additional fees can apply when a document contains multiple titles, and documents that don't meet formatting requirements can trigger a noncompliance fee. These are modest line items, but escrow collects them and they show up on your statement.
Property Tax Prorations
Washington property taxes are paid in arrears, so at closing you owe a prorated share for the portion of the year you owned the home. The exact figure depends on your closing date and the current assessed amount. Escrow calculates it and credits the buyer, and it comes out of your proceeds.
Mortgage Payoff
If you're carrying a mortgage, escrow pays it off directly from the sale proceeds.
Request your payoff statement early. A payoff quote is good only through a specific date, and if closing slips even a few days, interest accrues and the number changes. Lenders sometimes add release-related charges on top of principal and interest. Make sure the figure escrow uses reflects the actual closing date, not the day you first asked.
HOA Charges for Condo Sellers
Selling a condo or a home in a planned community adds a layer. HOA charges can include unpaid dues, outstanding special assessments, resale certificate or document fees, and transfer or account-processing fees charged by the association or its management company.
Verify the amounts and the allocation directly with the association, and check them against the contract, well before closing. I've seen sellers surprised by resale document fees that weren't on their radar when they listed. Find these early.
Negotiated Credits
If you agreed to cover part of the buyer's closing costs, contribute toward repairs, or provide any other credit, those appear as debits on your statement. There's no Seattle rule about what a seller must or must not credit. What's in your contract is what escrow honors.
Worth saying plainly: broker fees and commissions are fully negotiable and not set by law. There is no standard or customary rate. The listing fee is agreed in your listing agreement, and any compensation a seller chooses to offer a buyer's agent is optional and separately negotiable. Those figures appear on your settlement statement too, set by what you and your agent agreed to rather than by a formula.
Reading the Settlement Statement
The statement looks overwhelming the first time. Read it by category and it gets manageable.
Start with the sale price and earnest money, the starting credits on your side. Then REET, state and local, paid before recording. Then escrow and title, meaning the escrow fee, owner's title insurance, and any endorsements. Then recording items. Then the mortgage payoff, including principal, accrued interest through closing, and any lender release charges. Then prorations for property taxes and HOA dues through closing. Then any liens or assessments that have to clear for title. Then negotiated credits.
Every line has a reason. If something isn't clear, ask your escrow officer to explain it before you sign. That's what they're there for.
Frequently Asked Questions
What closing costs does a Seattle seller usually pay?
Real estate excise tax, escrow and title fees, owner's title insurance, recording charges, prorated property taxes, the mortgage payoff, and any HOA balances or credits negotiated in the contract. The amounts depend on sale price, closing date, loan balance, and contract terms rather than a fixed rule.
Is the seller or buyer responsible for the escrow fee?
Escrow fees are negotiated between the parties and set in the contract. There's no statutory rule assigning them to one side. In many Seattle transactions the fee is split or allocated to the seller, but your contract controls.
Who pays for owner's title insurance in Washington?
The owner's policy, which protects the buyer against pre-existing title defects, is customarily a seller cost in Washington, but it's negotiable. Confirm the allocation in your purchase and sale agreement rather than assuming a default.
How much is REET on a Seattle sale?
It depends on price, and it's graduated. The state rate runs from 1.10 to 3.00 percent across four brackets, and Seattle adds 0.50 percent local REET, bringing the combined rate to between 1.60 and 3.50 percent. On a $1 million sale that's roughly $17,600 total. Your escrow officer will calculate the exact figure.
How are property taxes prorated at closing?
Washington taxes are paid in arrears, so the seller owes a prorated share of the annual bill for the days they owned the home in the current tax year. Escrow calculates it from the closing date and the current assessed amount and credits the buyer, and it comes out of the seller's proceeds.
What happens to my mortgage payoff?
Escrow pays it off directly from the sale proceeds using a payoff statement from your lender. Request it early, since the quote is only good through a specific date and a delayed closing means more accrued interest. Confirm the statement escrow uses reflects the actual closing date.
Who pays HOA dues, resale documents, and transfer charges on a condo sale?
These are typically the seller's responsibility, but the allocation should be confirmed with the association and checked against the contract. Amounts and fee structures vary considerably by association, so identify them early rather than at closing.
Understanding what you pay at escrow is the foundation of knowing what you'll actually net. Every line on that statement has a reason, and I walk clients through each one well before we get to the signing table. If you'd like a clear picture of what your closing would look like, reach out and we'll go through it together.
About Kim Reidy
Kim Reidy is a Senior Broker and Director of Relocation at Pointe3 Real Estate in Seattle who has been helping corporate transferees and individuals find the right neighborhood since 2010. A Certified Negotiation Expert (CNE) and Certified Buyer Agent Expert (CBAE), she's known as Seattle's "neighborhood whisperer."
Pointe3 Real Estate · (206) 237-6391
Equal Housing Opportunity. Kim Reidy is licensed in Washington State, regulated by the Washington State Department of Licensing. This article is general information only and is not legal, tax, or financial advice. Excise tax rates and thresholds change; confirm your specific numbers with your escrow officer, tax advisor, or the Washington Department of Revenue. Property search powered by RealScout pulling live MLS data; all information should be independently reviewed and verified for accuracy.
