Are you trying to budget for a Burien home purchase or sale and wondering who covers what at the closing table? You are not alone. Closing costs can feel confusing, especially with Washington’s excise tax and King County’s recording and tax proration rules. In this guide, you will learn what closing costs include, how they differ from your down payment, who typically pays which items in Burien, and how to get your exact numbers before you sign. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaid items required to transfer a property and, if applicable, set up your mortgage. These are separate from your down payment. Closing costs include things like title and escrow services, lender and appraisal fees, state and county taxes, recording, and prepaid items such as property taxes and homeowner’s insurance. Your escrow company prepares a final settlement statement so you can review all line items before signing.
Who pays what in Burien
In the Puget Sound region, several items follow common practice, and many are negotiable. Buyers typically cover lender-related fees, their appraisal and inspections, and the lender’s title insurance policy. Sellers commonly pay the real estate excise tax in Washington, real estate commissions agreed to in the listing contract, and the recording fee for the deed. Escrow fees and the owner’s title policy can be split or reassigned based on local custom and what you negotiate in the contract.
Buyer costs and typical ranges
For buyers in Burien, closing costs usually total about 2% to 5% of the purchase price. Your out-of-pocket number depends on your loan type, insurance premiums, and the timing of closing in the property tax cycle.
Common buyer items include:
- Loan origination and lender fees, often 0.5% to 1.5% of the loan amount or a flat fee.
- Appraisal fee, typically 500 to 1,000+ depending on complexity.
- Credit report fee, usually 25 to 50.
- Title and escrow services, including the lender’s title insurance policy and escrow charges, often 800 to 2,000+ depending on price and provider.
- Prepaid items, such as initial escrow deposits for property taxes and insurance, your first year of homeowner’s insurance, and daily interest through the end of the month. These can be hundreds to several thousands.
- Mortgage insurance or a VA funding fee if applicable.
- Home inspections, usually 300 to 1,000+ depending on scope.
- Recording fees for the lender’s deed of trust.
Example: On a 600,000 Burien home, buyer closing costs might land around 12,000 to 30,000, including prepaids. Your lender and escrow officer can refine this estimate based on your loan, date, and property.
Seller costs and typical ranges
Seller closing costs in Burien usually fall around 6% to 10% of the sale price when you include commission. The exact figure depends on your listing agreement, excise tax bracket, and any negotiated credits or repairs.
Common seller items include:
- Real estate commission, often totaling about 5% to 6% in local practice, which is contract-based and negotiable.
- Washington State Real Estate Excise Tax, paid by the seller. The rate is progressive based on price and is calculated by escrow using current state rules.
- Title and escrow services on the seller side, plus any owner’s title policy if customary or negotiated.
- Payoff and reconveyance fees for existing loans and liens, which escrow handles at closing.
- Recording fee for the deed transfer.
- Prorations for property taxes and HOA dues for days after closing.
- Repairs or seller credits negotiated after inspections.
Example: On a 600,000 sale, a typical 5% commission equals 30,000, plus REET, seller-side closing fees, and any payoff amounts. Your listing agent and escrow officer can prepare a net sheet that reflects all items and your projected proceeds.
King County specifics to expect
- Real Estate Excise Tax, paid by the seller, is calculated using Washington’s current rate schedule. Escrow will compute the exact amount for your sale price and date.
- Recording fees are charged by King County to record the deed, reconveyances, and any related documents. These are modest but vary by document type and pages.
- Property tax proration is standard. Washington collects property taxes on a calendar schedule, and escrow prorates based on your closing date so each party pays for their share of the year.
- Local assessments and special levies, such as local improvement districts or other assessments if applicable, are identified by escrow and handled as disclosures, prorations, or payoffs per the purchase contract.
- HOAs and condos may charge transfer or move-in fees, and sellers commonly pay any current dues owed through closing. Check your association for specifics.
When payments happen
- After mutual acceptance: Buyers deposit earnest money with escrow. This becomes part of the buyer’s funds to close.
- During escrow: Buyers usually pay for inspections and the appraisal. Lenders issue a Loan Estimate early and a final Closing Disclosure at least three business days before you sign your loan documents. Sellers receive a closing statement from escrow.
- At signing: Buyers bring the balance of down payment and closing costs by secure wire or cashier’s check per escrow instructions. Sellers sign transfer documents and escrow collects payoff amounts.
- After closing: Escrow records the deed and any reconveyances with King County. Funds disburse, the buyer’s lender records the deed of trust, and the seller receives net proceeds after payoffs and fees.
Get your exact estimate
A few conversations will give you a precise picture before you commit:
- Buyer: Ask your lender for a written estimate of closing costs and prepaids, and confirm whether any costs can be financed. Request a draft settlement statement from escrow as you approach clear to close.
- Seller: Ask for a Seller Net Proceeds statement that includes commission, REET, payoff estimates, and closing fees. Provide your mortgage servicer details so escrow can obtain accurate payoff figures.
Ways to reduce costs
- Negotiate credits. Buyers sometimes negotiate seller credits to offset closing costs, subject to lender limits.
- Compare lender fees. Even small differences in origination or rate credits can change your cash to close.
- Clarify title and escrow splits. In King County, parties often split escrow fees, and who pays the owner’s title policy is negotiable.
- Time your closing. Prepaid interest and property tax escrows vary with the calendar. Your lender and escrow officer can show you how timing affects cash to close.
Safe funds transfer tips
Wire fraud attempts target real estate closings. Protect yourself by following these steps:
- Call your escrow officer at a known phone number to verify wire instructions before sending funds.
- Never trust wire instructions sent by email without verbal confirmation.
- Meet your bank’s cut-off times and confirm the exact amount owed to avoid delays.
Quick prep checklists
Buyer checklist:
- Ask your lender for an updated estimate of closing costs and prepaids.
- Confirm your earnest money deposit method and timing.
- Schedule inspections and budget for fees.
- Ask escrow how title and escrow fees are split on your contract.
- Review your Closing Disclosure at least three business days before signing.
- Verify wire instructions with escrow by phone before sending funds.
Seller checklist:
- Request a net sheet that includes commission, REET, payoff, and closing fees.
- Confirm whether you or the buyer will pay for the owner’s title policy.
- Ask escrow about HOA dues, assessments, and utility prorations.
- Provide lien and mortgage information so escrow can order payoffs.
- Review your closing statement ahead of signing and ask questions early.
Ready for next steps?
If you want a tailored estimate and strategy for your timeline, we are here to help. From net sheets and cost planning to negotiation and closing management, our team will guide you from offer to keys with clarity and care. Schedule your consultation with The Danna Team.
FAQs
Who pays Washington’s Real Estate Excise Tax in Burien sales?
- The seller pays Washington’s Real Estate Excise Tax, and escrow calculates the exact amount using current state guidance.
How much should a Burien buyer budget for closing costs?
- Most buyers budget about 2% to 5% of the purchase price, plus the down payment, with final numbers set by loan type, timing, and prepaids.
Do Burien sellers pay buyer agent commissions?
- In local practice the seller pays the total commission per the listing agreement, which is then split, although commission is negotiable and contract dependent.
What money does a Burien buyer bring to closing?
- Buyers bring the balance of their down payment and closing costs, usually by secure wire or cashier’s check as instructed by escrow.
Can seller credits cover a buyer’s closing costs in Burien?
- Yes, seller concessions can be negotiated to cover part of a buyer’s closing costs, subject to the buyer’s loan program limits.
What is the difference between down payment and closing costs?
- Your down payment is equity toward the purchase, while closing costs are the fees and prepaids needed to complete the transaction and set up your loan.
