In the examples below, we’ll use a house that sold for $600,000.
- Real Estate Commissions: The seller negotiates the commission when they list their home. Generally, the total commission is 6% of the sales price. Half goes to the listing agent, half goes to the selling agent. The seller usually pays the commission at the time of closing, and the money comes straight out of the proceeds from the sale.
- $36,000 total ($18,000 to seller’s agent, $18,000 to buyer’s agent)
- State Excise Tax: The state puts a 1.78% tax on all real estate transfers. This tax is calculated on sale price.
- $10,680
- Title Insurance: Title insurance protects all parties if a future claim is made against the property. The seller purchases one policy to protect the buyer, and the buyer purchases a different policy to protect the lender.
- $1,123
- Deed Recording Fee: Normally, King County charges $99 to record the deed. Depending on other required paperwork, this cost can rise higher.
- $99
- Escrow Fee: An independent third party charges an escrow fee to close the transaction. The buyer and the seller share this fee.
- $1,020 (Buyer pays an additional $1,020)
- Pro-rated Yearly Property Taxes: The homeowner pays annual property taxes twice a year in October and April. The escrow company pro-rates the taxes for the closing date to ensure that neither the buyer nor the seller overpay. This cost will vary depending on when and where you sell. As a general guide, the 2019 King County annual property tax rate is 0.99%.
- Varies wildly
Adding up our example home sale:
- Sale price: $600,000
- Fees: $48,922 (plus property taxes)
- Net proceeds: $551,078 (minus property taxes)
