How Much Does it Cost to Sell a House in Washington State?
How Much Does It Really Cost to Sell a House in Washington State?
Navigating the true costs of selling your house in Washington can be more complex than you think. Let's demystify the process and delve into both the known and the often-unanticipated expenses that come with selling a property.
Let’s do an example based on an $800k sales price.
The Known Costs: A Breakdown
Firstly, if you’re selling in Washington State, the Excise Tax, also known as the Real Estate Excise Tax (REET), is something you can’t ignore. For a property priced at $800,000, the REET would come to about $13,000, calculated on a graduated system as follows:
- Up to $525,000: 1.10%
- $525,000.01 to $1,525,000: 1.28%
- $1,525,000.01 to $3,025,000: 2.75%
- Above $3,025,000: 3%
Realtor Fees: To Hire or Not to Hire?
When it comes to realtor fees, you're looking at a range between 0-8% based on the services provided. You may choose to go the For Sale By Owner (FSBO) route, but be aware, FSBO properties nationwide tend to sell for 37% less.
In the context of our $800k home, that’s potentially a $300k difference. Even if you're more skilled than the average FSBO seller, cutting that discrepancy down significantly, you could still earn $74k less than if you partnered with a realtor. And remember, with an average of 8.5% of the sales price equating to $68,000 in closing costs, you might be saving on commissions but still losing out financially.
Need a recommendation for an agent? Contact us and we’ll interview agents for you!
What About Buyer’s Agent Compensation?
Compensating the buyer's agent is at your discretion. However, based on recent NWMLS data for Snohomish County resale homes, I would encourage a seller to offer compensation.
*Data sourced from the NWMLS
Additional Mandatory Costs:
- Mortgage balance or second mortgage payoffs
- Title Insurance: Around $2,000, protecting against title defects
- Escrow Fees: Roughly $1,200 each (buyer and seller share the cost)
- Recording Fees: Around $300 for county document recording
- Prorated Property Tax: Variable depending on payment status
- Document Preparation: Approximately $100
- Mobile Notary: Close to $125, for remote signing convenience
Potential Extra Costs:
- Seller credits to the buyer
- HOA transfer fees, commonly $300
- Outstanding liens, like child support or construction-related
- Special assessments, if applicable
- Market prep, such as cleaning and landscaping
- Remodeling and repairs as per inspection requests
- Staging costs (Not if you hire The Serviss Group. That’s included in our fee)
Add all that up, you’ve got an estimated total of $68k or 8.5% of the sales price in expenses (assuming you are paying some compensation to real estate agents).
How much will it cost for your home?
Take your estimated value and multiply by .085. Add any additional fees listed above like your mortgage or market preparation costs. There you go! Or if you’d rather have it calculated for you, contact us and we’ll prepare a net sheet for you.
Selling a home is a significant financial decision. Being well-informed about the costs involved will ensure that you’re prepared for a successful sale.
If you need help finding a realtor in your area, please reach out and I’d be happy to connect you with one who can help.