Are you budgeting for closing day in Spokane Valley and wondering what it really costs to buy or sell a home? You are not alone. Closing costs can feel murky, but once you know the local line items and who typically pays them, the path gets much clearer. In this guide, you will learn what to expect in Spokane County, how much to plan for, where you can negotiate, and what paperwork lands on your plate before you get the keys or hand them over. Let’s dive in.
What closing costs cover in Spokane Valley
Closing costs are the fees, taxes, and prepaids required to transfer ownership and fund a mortgage. They include one-time items like inspections, title work, and county recording. They also include prorations for property taxes or HOA dues and prepaid items like homeowners insurance and interest.
A practical rule of thumb used by local lenders and agents is simple:
- Buyers typically plan for about 2%–5% of the purchase price in closing costs, not including the down payment.
- Sellers often plan for about 6%–10% of the sale price, with commissions as the largest expense.
These are planning ranges. Your actual figures depend on your loan type, price point, and negotiated terms.
Who pays what in Spokane County
Buyer costs you will often see
- Loan origination and lender fees. This covers processing and underwriting. A common range is 0.25%–1% of the loan amount.
- Discount points (optional). Each point equals 1% of the loan and lowers the interest rate.
- Appraisal. Typical range is $400–$900 depending on property type.
- Home inspection. Plan for $300–$700 for a general inspection. Specialty inspections, like septic or pest, are extra.
- Credit report. Often $20–$60.
- Title insurance for the lender. A lender’s (mortgagee) policy is usually required.
- Escrow or settlement fee. Paid to the title or escrow company to handle funds and documents.
- Recording fees. County charges to record the deed and mortgage.
- Prorated property taxes and HOA dues. You reimburse the seller for any period they prepaid.
- Prepaids and reserves. One year of homeowners insurance, prepaid interest, and initial escrow deposits for taxes and insurance.
- Mortgage insurance or upfront mortgage insurance premium if required by your loan program.
Seller costs you will often see
- Real estate commission. Usually the largest seller expense and paid from sale proceeds. Rates vary by brokerage and market conditions.
- Washington Real Estate Excise Tax (REET). A state tax on property sales that sellers pay at closing.
- Owner’s title insurance policy. It is common in Washington for sellers to provide the buyer’s owner’s policy.
- Escrow or closing fee. Often split or paid by the seller, based on local custom and negotiation.
- Prorated property taxes and HOA dues. You pay your portion for the time you owned the home.
- Mortgage payoff and any lien release costs.
- Buyer credits or concessions you agreed to, plus any repairs or home warranty you offered.
Items either party might pay
- HOA transfer and document fees.
- Septic or well inspections or compliance fees.
- Flood certification, courier, and tax certification.
- Lender-required repairs or escrow holdbacks.
Washington-specific items to know
- Real Estate Excise Tax (REET). In Washington, sellers pay REET. The amount depends on the sale price and follows state rules. Confirm the rate and any local adjustments with your closing agent or the Washington Department of Revenue.
- Owner’s title insurance. It is customary in many Washington transactions for the seller to pay for the buyer’s owner’s policy, though it can vary. Check your title company’s closing instructions.
- Recording fees. Spokane County Auditor offices handle recording of the deed and mortgage. These fees are modest compared to major items like commission and REET.
- Property tax proration. Spokane County prorates property taxes at closing based on the time each party owned the property. If taxes were prepaid, the buyer reimburses the seller for the relevant portion.
- Seller concessions limits. The maximum a seller can contribute toward a buyer’s costs depends on the loan program. Your lender will confirm the cap for conventional, FHA, VA, or USDA financing.
How much to budget
Buyer planning ranges
Buyers commonly plan for about 2%–5% of the purchase price in closing costs. Here are typical line items to consider:
- Appraisal: $400–$900
- Home inspection: $300–$700, plus any specialty inspections
- Credit report: $20–$60
- Recording fees: $50–$200
- Title insurance and lender policy: roughly $500–$2,000, depending on price
- Lender fees, prepaids, and escrow deposits as quoted in your Loan Estimate
Seller planning ranges
Sellers often plan for about 6%–10% of the sale price, with commission as the largest single expense. You will also see REET and the owner’s title policy on your settlement statement. Total costs depend on your price point, negotiated terms, and whether you offer credits to the buyer.
Example: Buyer at $400,000 with 10% down
- Purchase price: $400,000
- Down payment: $40,000
- Estimated closing costs at 3%: $12,000
- Earnest money credited at closing: $5,000
- Estimated cash to close: $40,000 + $12,000 − $5,000 = $47,000
Actual numbers vary by lender fees, insurance, appraisal, and escrow deposits, plus any seller-paid costs.
Example: Seller at $400,000
- Sale price: $400,000
- Commission example at 6%: $24,000
- Owner’s title, escrow, recording, and REET example combined: about $4,000
- Estimated net before mortgage payoff and prorations: $400,000 − $24,000 − $4,000 = $372,000
Your final net depends on mortgage payoff, tax prorations, repairs, and any credits to the buyer.
Ways to lower cash to close
Use concessions and credits wisely
- Seller concessions. You can ask the seller to pay some buyer closing costs, up to the limit set by your loan program. Work with your lender to confirm the cap and with your agent to structure the request.
- Repair credits and escrow holdbacks. Instead of completing repairs before closing, the parties can use a credit or a holdback with clear contract language. This may save time and stress.
- Lender credits. You might accept a slightly higher interest rate in exchange for a lender credit that reduces upfront cash. This is a tradeoff between monthly payment and closing funds.
- Be specific. In your offer, spell out the line items or a not-to-exceed amount. Clear terms prevent confusion on the Closing Disclosure.
Compare and plan early
- Shop lenders. Compare Loan Estimates from at least two lenders. Look at the total estimated closing costs and APR, not just one fee.
- Right-size earnest money. A solid deposit strengthens your offer and reduces cash to close, but keep it within your comfort level.
- Time your ask. In a seller’s market, concessions are harder to win. In a buyer’s market, credits and repairs are more common.
- Explore assistance. Washington State and local programs may offer down payment or closing-cost help for qualified buyers. Ask your lender about options and rules.
Timeline and paperwork in Spokane Valley
Key deadlines to track
- Loan Estimate. Your lender must deliver it within three business days of loan application.
- Closing Disclosure. Your lender must provide it at least three business days before you sign closing documents.
- Title and payoff prep. Title and escrow typically need several business days to gather payoffs and prepare statements.
What buyers bring to closing
- Government-issued photo ID for all signers.
- Verified wiring instructions from the title or escrow company. Call to confirm instructions to avoid wire fraud.
- Cashier’s check or wire for your cash to close.
- Proof of homeowners insurance naming the lender as additional interest.
- Time to review your Closing Disclosure and settlement statement.
What sellers bring to closing
- Government-issued photo ID.
- Mortgage payoff details. Title or escrow will request payoff figures.
- Required state and HOA disclosures and any documents requested by title.
Local resources to contact
- Washington State Department of Revenue. For REET rates and calculation rules.
- Spokane County Auditor, Treasurer, and Assessor. For recording fees, tax proration rules, and schedules.
- Your title and escrow company. For preliminary closing statements showing estimated buyer cash to close and seller net.
- Your mortgage lender. For Loan Estimate, Closing Disclosure, and loan-program concession limits.
- Washington State Housing Finance Commission. For information on first-time buyer and assistance programs.
Plan your numbers with a local team
A clear estimate removes stress and keeps your deal on track. If you want help mapping your cash to close or estimating your net proceeds in Spokane Valley, our family-run team can walk you through each line item and build a plan that fits your goals. For responsive, negotiation-focused guidance from offer to closing, connect with BranDen Tipton and the Inland Empire Home Team.
FAQs
What are typical buyer closing costs in Spokane Valley?
- Most buyers plan for about 2%–5% of the purchase price, covering lender fees, appraisal, inspections, title, escrow, recording, prepaids, and prorations.
Who pays Washington’s Real Estate Excise Tax (REET)?
- In Washington State, the seller pays REET at closing, with the amount based on the sale price under state rules.
Can a seller pay my closing costs in Spokane County?
- Yes, sellers can contribute to buyer costs within loan-program limits; your lender will confirm the cap and your offer should spell out the amount.
What is included in seller closing costs besides commission?
- Sellers often pay REET, the owner’s title insurance policy, a share of escrow fees, prorated taxes or HOA dues, any agreed credits, and mortgage payoff and lien release costs.
When will I see my final closing numbers before signing?
- Your lender must deliver the Closing Disclosure at least three business days before closing, giving you time to review exact figures and ask questions.
