Seattle Condo Authority • Jeff Reynolds • 20+ Years Experience
What you will pay at the closing table -- and what you can negotiate.
Seattle Condo Authority • Buyer Education
Closing costs are fees and charges paid at the time a real estate transaction closes -- the moment ownership transfers from seller to buyer. For Seattle condo buyers, closing costs typically add up to 2% to 4% of the purchase price, though the exact amount depends on loan type, purchase price, building-specific charges, and what the parties negotiate.
Closing costs are separate from the down payment. Buyers need to budget for both. A buyer purchasing a $700,000 condo with 20% down needs to plan for $140,000 as a down payment and an additional $14,000 to $28,000 in closing costs at minimum -- and sometimes more.
The largest category of closing costs is typically lender fees, which include: the loan origination fee (sometimes called points), underwriting fees, appraisal fee, credit report fees, and flood determination fees. Some lenders bundle these into a single origination charge; others itemize them. You will receive a Loan Estimate from your lender within three business days of applying, which itemizes these fees. Shopping more than one lender often uncovers meaningful differences in lender fees on the same loan amount.
Title insurance and escrow services are required for every condo purchase in Washington State. The title insurance premium protects the buyer (and lender) against undisclosed liens or ownership disputes on the property. The escrow fee compensates the escrow company for managing the closing process -- holding funds, recording documents, and disbursing proceeds. In Washington, escrow is typically split between buyer and seller, though this is negotiable.
Condo purchases include some closing costs that do not exist in single-family transactions. The HOA resale certificate fee (typically $200 to $500) is charged by the HOA to prepare disclosure documents. Condo document review fees may be charged if an attorney reviews the CC&Rs. Some buildings charge a move-in fee or elevator reservation deposit, which may be due at or shortly after closing. HOA dues are prorated at closing -- the buyer pays their share of the monthly dues from the closing date through the end of the month.
Buyers are also responsible for prepaid items at closing: the first year's hazard insurance premium (paid upfront), prepaid mortgage interest from the closing date through the end of the month, and initial escrow deposits for property tax and insurance if your loan requires an escrow impound account. These are not fees -- they are advance payments on legitimate costs you would incur anyway -- but they add to the cash needed at closing.
In a buyer-favorable market, sellers sometimes agree to pay a portion of the buyer's closing costs as part of the deal -- this is called a seller concession or seller-paid closing costs. The maximum amount sellers can contribute is limited by loan type and lender guidelines. In competitive Seattle condo markets, seller concessions are less common but not impossible for properties with longer days on market. Jeff Reynolds advises buyers on when and how to request concessions and what to expect from Seattle's current market conditions.
Frequently Asked Questions
Seattle condo buyer closing costs typically range from 2% to 4% of the purchase price, depending on loan type, lender fees, and building-specific charges. On a $600,000 purchase, expect $12,000 to $24,000 in closing costs in addition to your down payment. Your lender will provide a Loan Estimate with itemized fees within three business days of your loan application.
Sellers can agree to contribute toward buyer closing costs as part of the purchase negotiation -- this is called a seller concession. The amount a seller can contribute is limited by your loan type (conventional, FHA, VA) and lender guidelines. In competitive Seattle markets, concessions are less common but may be available for properties with longer market exposure. Jeff Reynolds advises on when to request concessions and how to structure the ask.
Yes. Condo purchases include the HOA resale certificate fee ($200 to $500, typically paid by the seller), prorated HOA dues at closing, and potentially building-specific fees such as move-in fees or elevator deposit requirements. Condo document review fees may also apply if your attorney reviews the CC&Rs. Jeff Reynolds walks buyers through all condo-specific closing costs before they make an offer.
Title insurance protects you against undisclosed liens, ownership disputes, or errors in the public record that could affect your ownership rights after closing. Lenders require lender's title insurance. Owner's title insurance (which protects the buyer) is technically optional but strongly recommended. In Washington State, the cost of title insurance is negotiable between buyer and seller, though local custom varies by county.
Your lender is required to provide a Loan Estimate within three business days of application, which itemizes all anticipated closing costs. For condo-specific costs not reflected in the Loan Estimate -- HOA fees, resale certificate, building move-in fees -- Jeff Reynolds provides buyers with a full cost-to-close estimate before any offer is made, so there are no surprises at the closing table.
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