Are you trying to figure out who pays what at closing in Kennewick? You are not alone. Closing costs can feel like a moving target when you are budgeting for a purchase or planning your net as a seller. This guide breaks down typical line items, who usually pays them in Washington, and realistic ranges you can use to plan ahead. Let’s dive in.
Who pays what in Kennewick
Seller costs at a glance
- Real estate commission. Typically paid by the seller. Commission is usually the largest single cost and is commonly in the mid single digits of the sale price. Exact rates are set by your listing agreement and are negotiable.
- Real Estate Excise Tax (REET). Typically paid by the seller in Washington. The amount is based on the sale price and follows the state’s tiered schedule. Confirm the current schedule for your closing date.
- Owner’s title insurance policy. Often paid by the seller in Washington practice, though this is negotiable.
- Seller escrow and title fees. Title and escrow companies charge fees for the seller side of settlement, document prep, and payoff processing. Local custom can vary, and splits are negotiable.
- Mortgage and lien payoffs. Seller pays off any outstanding loans and liens from sale proceeds.
- Prorated property taxes and HOA dues. Seller covers their share through the day of closing.
- Seller-paid concessions or repairs. If negotiated in the contract, the seller may credit the buyer for closing costs or complete agreed repairs.
Buyer costs at a glance
- Loan fees. Buyers typically pay lender charges such as origination, underwriting, and optional discount points.
- Appraisal and credit report. Usually buyer paid. Appraisals commonly run about $400 to $800, depending on property and loan type.
- Lender’s title insurance policy. Required by most lenders and typically paid by the buyer.
- Escrow and recording fees. Often split or allocated by local custom. In some Washington transactions buyers pay escrow and recording, while sellers pay the owner’s title policy. Confirm the split in your contract and with the title company.
- Prepaid items and reserves. Buyers fund the first year of homeowner’s insurance, prepaid interest, and initial escrow reserves for taxes and insurance.
- Inspections. Buyers usually pay for inspections. A general home inspection commonly runs about $300 to $600. Specialty inspections cost extra.
- HOA-related charges. HOAs may charge resale or transfer fees. Sellers often pay for resale certificates, while buyers may pay prorated dues or a transfer fee. Check your contract and the HOA’s rules.
Typical cost ranges
Buyer out-of-pocket
Most buyers in Kennewick should budget about 2% to 5% of the purchase price for closing costs, not including the down payment. This includes lender fees, appraisal, lender’s title policy, escrow and recording, inspections, and prepaid items like taxes and insurance. Your exact total depends on your loan program, lender pricing, whether you choose points, and the timing of your closing.
Seller total costs
Most sellers should plan for about 6% to 10% of the sale price. Commission is usually the largest portion and is commonly in the mid single digits of the sale price. On top of that, sellers cover REET, owner’s title policy in many cases, seller-side escrow/title fees, prorations, and any negotiated repairs or concessions. Your contract terms, current REET schedule, and market conditions can shift the total.
Sample budgets by price point
Use these illustrations as planning aids. Actual totals depend on your loan, contract, and title company fees. Always confirm with your lender, agent, and title/escrow team.
Example: $350,000 purchase
- Buyer closing costs (2% to 4%): $7,000 to $14,000
- Appraisal about $500
- Lender fees or points about $2,000 to $5,000
- Lender’s title policy and recording about $1,200 to $2,000
- Prepaid insurance and taxes about $2,000 to $3,500
- Seller total costs (6% to 9%): $21,000 to $31,500
- Commission example around 5% about $17,500
- REET amount based on state schedule
- Seller title and escrow about $800 to $2,500
- Any repairs, concessions, and prorated taxes vary by contract
Example: $500,000 purchase
- Buyer closing costs (2% to 4%): $10,000 to $20,000
- Similar mix as above, scaled by price and loan details
- Seller total costs (6% to 9%): $30,000 to $45,000
- Commission portion grows with price
- REET and title fees scale with sale price
- Prorations, concessions, and repairs depend on contract and inspection
Example: $600,000 purchase
- Buyer closing costs (2% to 4%): $12,000 to $24,000
- Seller total costs (6% to 9%): $36,000 to $54,000
- Commission typically the largest line item
- REET and title fees adjust with the sale price
Note: Commission rates, REET tiers, title fee schedules, and lender requirements change over time. Get itemized estimates for your transaction before you lock a budget.
Local rules and timing to know
REET in Washington
Washington’s Real Estate Excise Tax is typically a seller obligation. It is calculated on the sale price and paid to the state. The schedule is tiered and has changed in recent years. Always confirm the current rate structure for your closing date.
Property tax proration in Benton County
Property taxes are prorated at closing. The seller pays through the closing date, and the buyer takes over after that. If you are financing, your lender may collect tax impounds to fund the escrow account.
Recording and county fees
Benton County recording fees for deeds and mortgages are typically modest, often in the tens to a few hundred dollars. Your title company will list exact amounts on the closing statement.
HOA and special assessments
If the property is in an HOA, expect fees for a resale certificate or transfer, plus proration of dues. Some HOAs place costs on sellers, and some split or assign them to buyers. The allocation is set by your purchase agreement and the association’s documents.
Lender rules and loan types
FHA and VA loans have specific rules for allowable seller concessions and borrower-paid costs. VA loans often allow seller concessions up to certain limits. Confirm the latest program guidelines with your lender.
Closing timeline and funds
In Washington, you usually sign closing documents, send funds, and then the transaction disburses after recording. Timing affects tax prorations and the amount of prepaid interest. Your escrow team will give you a final figure and wire instructions before closing.
Negotiation and market conditions
Who pays which fees can shift with market conditions. In a strong seller’s market, buyers may cover more of their own costs to compete. In a buyer’s market, sellers might agree to a credit toward buyer closing costs or to pay certain buyer-side fees to speed up the sale. Put these choices in context with your agent’s read on the Kennewick inventory, demand, and days on market.
What to confirm early
For buyers
- Ask your lender for a detailed Loan Estimate showing closing costs, prepaid items, and cash to close.
- Find out which lender fees are negotiable and whether discount points make sense for your time horizon.
- Confirm who pays what for title insurance, escrow, and recording in your offer.
- Ask your agent about the potential for seller credits in today’s market.
For sellers
- Request a seller net sheet from your agent showing commission, REET, prorations, escrow/title fees, and payoff estimates.
- Confirm the current REET schedule for your likely sale price before you list.
- Discuss whether offering buyer closing-cost assistance will help attract stronger offers.
- Ask your title company for a preliminary estimate of seller-side fees and payoff processing.
For both parties
- Ask the title or escrow company for an itemized closing statement draft so there are no surprises.
- Confirm who pays for inspections, HOA documents, and any negotiated repairs in writing.
Ready to run your numbers?
If you want precise figures for your property and loan type, get an itemized estimate from your lender and title company, and a seller net sheet or buyer closing worksheet tailored to your goals. For local guidance, straight answers, and a strategy that fits the Tri-Cities market, connect with Gavin Vargas.
FAQs
What are closing costs in Kennewick and who pays them?
- In Kennewick, closing costs are one-time fees and prorations beyond the price. Sellers typically pay commission, REET, and owner’s title policy, while buyers pay loan fees, appraisal, lender’s title policy, escrow and recording by custom or split per contract.
How much should a Kennewick buyer budget for closing?
- Most buyers should plan for about 2% to 5% of the purchase price, plus the down payment, with totals shaped by loan type, points, timing, and negotiated credits.
How much should a Kennewick seller expect to pay?
- Most sellers should expect about 6% to 10% of the sale price, with commission and REET making up the largest components, plus title, escrow, prorations, and any concessions.
Who pays Washington’s Real Estate Excise Tax (REET)?
- In Washington, REET is typically a seller obligation and is calculated on the sale price based on the state’s tiered schedule; confirm the current rates before closing.
Are closing costs negotiable in Kennewick?
- Yes. Many line items are negotiable and influenced by market conditions; allocation of escrow, title, and recording fees often follows local custom but can be changed by contract.
When are funds due and how does closing work in Washington?
- You usually sign, send funds, and then the transaction disburses after recording; timing affects prorations and prepaid interest, and your escrow team will provide final figures and instructions.
