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Buyer Education

Seattle Condo Buyer Closing Costs

A detailed breakdown of closing costs for Seattle condo buyers, including lender fees, title insurance, escrow, taxes, and condo-specific charges.

2–4%

Of Purchase Price

$10K–$20K

Typical on $500K Condo

6+

Cost Categories

Reducible

With Strategy

What Closing Costs Should You Expect?

Closing costs are the fees and expenses you pay at the time your condo purchase is finalized. For Seattle condo buyers, these typically run between 2% and 4% of the purchase price. On a $500,000 condo, that means roughly $10,000 to $20,000 on top of your down payment.

Understanding these costs upfront helps you budget accurately and avoids surprises at the closing table. Here is a breakdown of the major line items.

Category 1

Lender Fees

If you are financing your purchase, your lender will charge several fees.

0.5% - 1% of loan

Loan Origination Fee

Typically 0.5% to 1% of the loan amount. Some lenders waive this in exchange for a slightly higher interest rate.

$500 - $800

Appraisal Fee

Condo appraisals can be more complex than single-family appraisals because the appraiser must also evaluate the building and HOA.

$30 - $75

Credit Report Fee

A standard fee your lender charges to pull and review your credit history and scores.

$500 - $1,000

Underwriting & Processing

Vary by lender, typically $500 to $1,000 combined for underwriting and processing your loan application.

$200 - $500

Condo Questionnaire Fee

The management company charges this to complete the lender's condo questionnaire. This is a condo-specific cost that single-family buyers do not encounter.

Category 2

Title and Escrow Fees

Owner's Title Insurance

$800 - $2,000

Protects your ownership interest. Cost is based on the purchase price.

Lender's Title Insurance

$300 - $700

Required by your lender to protect their interest in the property.

Escrow Fee

$500 - $1,200

The escrow company charges for managing the transaction and holding funds. Often split between buyer and seller.

Title Search & Examination

$150 - $400

Fee for researching the property's title history to ensure clear ownership.

Category 3

Government and Recording Fees

Recording Fees

$100 - $300

King County charges fees to record the deed and mortgage documents.

Real Estate Excise Tax (REET)

Varies

In Washington State, the seller traditionally pays the excise tax, but this is a negotiation point. Buyers should confirm who is responsible in the purchase agreement.

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Category 4

Prepaid Items

At closing, you will prepay certain expenses that cover the period between your closing date and the first regular payment cycle.

Prepaid Property Taxes

Varies by date

You will prepay a portion of the year's property taxes into an escrow account. The exact amount depends on your closing date and the county's tax schedule.

Homeowners Insurance (HO-6)

$200 - $600/yr

Your HO-6 condo insurance policy premium for the first year, plus an initial deposit into your escrow account for future premiums.

Prepaid Interest

Per-diem charge

Interest on your mortgage from the closing date through the end of that month. This is a per-diem charge based on your loan amount and interest rate.

Condo-Specific

Condo-Specific Costs

Several closing costs are unique to condo purchases. These are costs that single-family home buyers do not encounter.

Resale Certificate Fee

$250 - $500

The seller typically pays for the resale certificate, but buyers should confirm.

HOA Move-In Fee

$200 - $1,000

Many buildings charge a move-in fee or deposit. Varies significantly by building.

HOA Transfer Fee

$100 - $300

Some associations charge a fee to transfer ownership records to the new owner.

First Month HOA Dues

Varies by building

You may need to prepay your first month of HOA dues at closing.

Recommended

Optional but Recommended Costs

Home Inspection

$350 - $600

Not a closing cost per se, but a pre-closing expense every buyer should budget for.condo inspection

Sewer Scope

$200 - $350

Not typically applicable for condos (the HOA maintains shared sewer lines), but occasionally relevant for townhome-style condos.

Example Breakdown

Estimated Closing Costs on a $500,000 Condo

Based on a conventional loan with 20% down ($400,000 loan amount). Actual costs vary.

Line Item Estimated Cost
Loan Origination Fee (0.75%) $3,000
Appraisal Fee $650
Credit Report $50
Underwriting & Processing $750
Condo Questionnaire $350
Owner's Title Insurance $1,200
Lender's Title Insurance $450
Escrow Fee (buyer half) $600
Title Search $250
Recording Fees $175
Prepaid Property Taxes (3 mo) $1,250
Homeowners Insurance (HO-6) $350
Prepaid Interest (15 days) $625
HOA Move-In Fee $500
HOA Transfer Fee $200
First Month's HOA Dues $450
Home Inspection $475
Estimated Total $11,325

This example uses mid-range estimates. Your actual costs will depend on your lender, purchase price, building, and closing date.

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Save Money

How to Reduce Closing Costs

There are a few legitimate ways to reduce your out-of-pocket closing costs.

Negotiate Seller Credits

In some market conditions, sellers will agree to credit the buyer a portion of closing costs as part of the purchase agreement.

Shop Lender Fees

Get loan estimates from multiple lenders and compare origination fees, underwriting costs, and rate offerings.

Ask About Lender Credits

Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate. This can make sense if you plan to refinance or sell within a few years.

Jeff Reynolds

Jeff's Take

"I walk buyers through a detailed cost estimate before they write an offer so there are no surprises at closing. If you are planning a condo purchase in Seattle and want a clear picture of what to expect, get in touch. Accurate budgeting starts well before you find the right unit."

Next Step

Get a Personalized Cost Estimate

Every condo purchase is different. Your building, price point, lender, and closing date all affect your bottom line. Let's walk through the numbers for your specific situation before you write an offer.

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Jeff Reynolds, Seattle condo specialist

Jeff Reynolds

Seattle Condo Specialist · Compass Real Estate · 20+ Years

Jeff Reynolds has spent 20+ years exclusively focused on Seattle's condo market, closing 500+ transactions and personally profiling 202+ buildings. His building-level expertise, grounded in HOA financials, reserve fund health, construction quality, and resale performance, is the foundation of every recommendation on this site. Have a question about Seattle condo buyer closing costs?

Ask Jeff About Buyer Closing Costs

Or call directly: 206-794-1118 · jeff.reynolds@compass.com