Surprised by how many line items show up between offer and keys in hand? You are not alone. Closing costs in Washington are a mix of lender fees, title and escrow charges, government recording, prepaids, and a few local specifics. In this guide, you will learn what each fee covers, who typically pays it on Bainbridge Island, and how to plan a realistic budget whether you are buying or selling. Let’s dive in.
What closing costs include
Closing costs are the one-time expenses due at signing, separate from your down payment. On Bainbridge Island and across Kitsap County, the main categories include:
- Escrow or closing agent fee: The escrow company manages funds, documents, signings, and recordation. This fee is often split 50-50 between buyer and seller, but it is negotiable.
- Title insurance: One policy protects the owner and another protects the lender. In much of Western Washington, sellers commonly pay the owner’s policy and buyers pay the lender’s policy. Confirm in your purchase contract.
- Lender charges: Origination, underwriting, processing, credit report, and any points. Buyers pay these and will see them itemized.
- Appraisal and inspections: Appraisal is typically lender required. Buyers also order general and specialty inspections, with costs paid up front.
- Recording and government charges: County fees to record the deed, deed of trust, and releases. Amounts are modest but should be verified.
- Prepaid items and prorations: First year of homeowner’s insurance, prepaid mortgage interest, and a fair split of property taxes and HOA dues based on the closing date.
- Seller-specific items: Real estate commissions, any payoff of an existing loan, and Washington’s Real Estate Excise Tax.
Who typically pays what
Every transaction is negotiable, but you can use these local customs as a starting point:
- Escrow fee: Often split between buyer and seller.
- Owner’s title policy: Commonly paid by the seller in Western Washington.
- Lender’s title policy: Paid by the buyer.
- Lender fees and appraisal: Paid by the buyer.
- Inspections: Paid by the buyer unless a different arrangement is negotiated.
- Recording fees: Buyers usually cover mortgage recording; deed recording can vary or be shared.
- Prepaid insurance and interest: Paid by the buyer; taxes and HOA dues are prorated between both parties.
- Commissions and REET: Paid by the seller.
Typical buyer costs on Bainbridge
For planning, buyer closing costs often total about 2% to 5% of the purchase price, excluding your down payment. What drives the range are loan type, lender pricing, title and escrow selections, and prepaids tied to your closing date.
- Lender fees: Often 0.25% to 1.0% of the loan amount, plus flat underwriting and processing fees.
- Appraisal: Commonly $400 to $1,000 or more depending on the property.
- Home inspection: Often $300 to $800, with additional specialty inspections as needed.
- Title and escrow: One-time premiums and service fees, with the buyer typically paying the lender’s title policy and sharing escrow.
- Prepaids: First-year homeowner’s insurance, prepaid interest from your closing date to month end, and your share of property taxes and HOA dues.
Typical seller costs on Bainbridge
Seller costs are primarily driven by broker commissions plus Washington’s Real Estate Excise Tax and any owner’s title policy if customary.
- Commissions: Total commission is negotiated in the listing agreement. Many U.S. markets see around 5% to 6% in practice, though terms vary by property and market.
- REET: Washington State levies a real estate excise tax, typically paid by the seller. Verify current rates with the Washington State Department of Revenue.
- Title and escrow: Sellers commonly pay the owner’s title policy in Western Washington and split escrow.
- Payoffs and credits: Any existing loan payoff, agreed repairs, or credits to the buyer are settled at closing.
As a ballpark, sellers often spend 6% to 9% of the sale price when you include commission, REET, owner’s title policy, escrow split, and routine seller items. Your actual number depends on your listing agreement, price, and negotiated terms.
Bainbridge vs. Seattle: What really differs
The closing cost categories and most customs are similar across Western Washington. The biggest difference you will feel is price. Higher median prices on Bainbridge mean the percentage-based items and certain premiums result in larger dollar amounts. HOA or condo transfer fees can also vary by association, and those are property specific. If you are relocating from Seattle, expect a familiar process, just calibrated to Bainbridge price points and local associations.
Timing and disclosures to expect
- After you apply for a mortgage, federal rules require your lender to provide a Loan Estimate within three business days. This outlines your expected costs and rate.
- At least three business days before closing, you will receive a Closing Disclosure. Review it carefully and compare it to your Loan Estimate.
- Your escrow or title company will also provide a settlement statement. It should align with your lender’s disclosure for financed purchases.
Local details to verify
- Real Estate Excise Tax: Check the current rate schedule and any exemptions with the Washington State Department of Revenue.
- Recording fees: The Kitsap County Auditor sets the fee schedule for recording deeds and deeds of trust. Amounts are typically in the low hundreds in total, but verify current figures.
- Property tax proration: The Kitsap County Treasurer publishes tax calendars and levy information. Prorations depend on assessed value and your closing date.
- HOA or condo fees: Some associations charge transfer fees or reserve contributions at closing. Confirm with the HOA manager.
Real-world examples
Use these rounded figures to visualize scale. Your numbers will vary based on loan type, timing, and negotiations.
- Purchase price $600,000: Buyer costs around $12,000 to $30,000. Seller commission at 6% would be about $36,000, plus seller-paid items.
- Purchase price $1,000,000: Buyer costs around $20,000 to $50,000. Seller commission at 6% would be about $60,000, plus seller-paid items.
- Purchase price $1,500,000: Buyer costs around $30,000 to $75,000. Seller commission at 6% would be about $90,000, plus seller-paid items.
Planning tips you can use now
- Budget early: Set aside your down payment plus buyer closing costs of roughly 2% to 5% of price.
- Ask for a written estimate: Request itemized quotes from your lender and the escrow or title company you will use.
- Clarify who pays what: Confirm in writing whether the seller will pay the owner’s title policy and how escrow fees are split.
- Confirm timing: Your closing date affects prepaid interest and tax prorations. If you have flexibility, discuss dates that fit your budget.
Checklist to get a personalized estimate
Share these details with your escrow officer, title company, or lender for an accurate Bainbridge quote:
- Purchase price and full Bainbridge Island address
- Financing details: loan amount and loan type
- Lender name, so estimates can be coordinated
- Down payment amount and any requested seller credits
- Whether the seller will pay the owner’s title policy
- Existing loans to be paid off at closing if you are the seller
- HOA or condo transfer fees, special assessments, or reserves
- Target closing date
- Preferred escrow or title company
- Any negotiated repairs or concessions
- Desired split of escrow fees
Ready to run the numbers together?
If you are comparing Bainbridge to Seattle or you just want a clear, customized estimate for your situation, we are here to help. We will coordinate with your lender and local escrow to deliver a side-by-side, line-item overview before you commit. Reach out to McLaughlin & Co. to start the conversation.
FAQs
What are typical buyer closing costs on Bainbridge Island?
- Buyers commonly spend about 2% to 5% of the purchase price on closing costs, including lender fees, appraisal, inspections, title and escrow charges, and prepaids.
Who usually pays owner’s title insurance in Western Washington?
- It is common for the seller to pay the owner’s title policy while the buyer pays the lender’s policy, but confirm your purchase agreement.
How does Washington’s Real Estate Excise Tax affect Bainbridge sellers?
- REET is typically a seller obligation in Washington and is calculated using a state rate schedule; verify the current rate with the Department of Revenue.
When will I receive my Closing Disclosure for a Bainbridge purchase?
- Your lender must deliver the Closing Disclosure at least three business days before closing, giving you time to review and compare it to your Loan Estimate.
Are Bainbridge closing costs higher than Seattle’s?
- The categories and customs are similar, but higher Bainbridge home prices often mean larger dollar amounts for percentage-based items and certain premiums.
What inspections should I budget for as a Bainbridge buyer?
- Plan for a general home inspection and, as needed, pest, septic, roof, or other specialty inspections, with typical inspection costs in the hundreds of dollars.
Who sets recording fees in Kitsap County and how much are they?
- The Kitsap County Auditor sets the recording fee schedule; totals are typically in the low hundreds for deed and mortgage documents, but confirm current amounts.
