By Genaro Shaffer, Bellwether Real Estate — Updated May 2026
Closing costs are the largest cash outlay outside down payment for buyers; the largest cost outside commission for sellers. Understanding them prevents surprise at closing.
The 60-second answer
Buyer closing costs in Bellingham typically run 2-3% of purchase price on top of down payment. Seller closing costs (excluding commission) typically 1.5-3% of sale price. Largest single buyer cost: lender fees + title/escrow. Largest seller cost: WA REET + commission. Total transaction cost (buyer + seller combined): typically 8-12% of sale price.
Buyer closing costs breakdown
For a $700,000 Bellingham purchase:
| Cost | Typical amount |
|---|---|
| Loan origination fee | $3,500-$7,000 (0.5-1%) |
| Appraisal | $500-$700 |
| Credit report | $30-$50 |
| Title insurance (lender’s policy) | $1,800-$2,500 (~0.3-0.4% of loan) |
| Escrow fees | $1,000-$2,500 |
| Recording fees | $200-$400 |
| Inspection | $500-$700 |
| Specialty inspections (if applicable) | $200-$1,500 each (septic, well, pool, etc.) |
| Wire transfer fees | $25-$50 |
| Homeowner’s insurance (1 yr at closing) | $1,500-$3,500 |
| Initial property tax escrow | $2,000-$4,000 (varies) |
| HOA dues + estoppel (if applicable) | $250-$500 + monthly dues |
| Earnest money applied | (counts toward down) |
Total buyer closing costs (excluding down payment): ~$15,000-$22,000 on a $700K purchase = ~2-3%.
Plus: down payment varies 3-20% of purchase price.
Seller closing costs breakdown
For a $700,000 Bellingham sale:
| Cost | Typical amount |
|---|---|
| Real estate commission | $35,000-$42,000 (5-6%) |
| WA REET (state + local) | ~$11,500 (1.6%) |
| Title insurance (owner’s policy) | $2,800-$3,500 (~0.4-0.5%) |
| Escrow fees | $1,000-$2,500 (often split) |
| Excise tax filing | $30 |
| Recording fees | $200 |
| Mortgage payoff (if applicable) | Variable |
| Pre-listing prep (optional) | $0-$10,000+ |
| Pre-listing inspection (optional) | $400-$700 |
| Staging (optional) | $1,500-$5,000 |
| Repair credits negotiated (post-inspection) | Variable |
Total seller closing costs (including commission): ~$55,000-$70,000 on a $700K sale = ~7-10%.
Plus: mortgage payoff varies based on remaining balance.
Largest costs broken down
For buyers:
1. Lender fees (origination, points, junk fees) — biggest variable
- Local lender: $3,500-$5,000 typical
- Online lender: similar range but watch for hidden fees
- Negotiate where possible
2. Title insurance + escrow — second largest
- Usually $3,000-$5,000 combined
- Less negotiable but verify title company comparable
3. Inspection + appraisal — third largest
- $1,000-$1,500 combined
- Required + worthwhile
For sellers:
1. Real estate commission — biggest by far
- 5-6% of sale price typical
- Negotiable in many situations
2. WA REET — second largest
- 1.6-3.5% depending on price
- Non-negotiable (state law)
3. Title insurance (owner’s) — third largest
- 0.4-0.5% of price
- Seller pays typically; sometimes negotiated
Reducing buyer closing costs
Option 1: Negotiate seller credit at offer ($5K-$15K typical). Option 2: Lender credit (lender pays some costs in exchange for slightly higher interest rate). Option 3: Shop title/escrow companies. Option 4: Loan options that reduce upfront costs (lender-paid PMI, no-cost refinances, etc.). Option 5: Use WA House Key Opportunity if eligible — assistance covers some closing costs.
Reducing seller closing costs
Option 1: Commission negotiation (varies; harder in tight markets). Option 2: Title insurance negotiation (some buyers pay; not always). Option 3: Skip optional prep (staging, pre-listing inspection). Option 4: Time market to reduce hold-over costs.
Cash needed at closing — buyer
For a $700,000 Bellingham purchase with 10% down + 2.5% closing costs:
| Item | Amount |
|---|---|
| Down payment | $70,000 |
| Closing costs (estimate 2.5%) | $17,500 |
| Total cash needed | $87,500 |
| Plus reserves (typically required) | 2-6 months payment in savings |
With WA House Key Opportunity ($15K assistance), reduce to ~$72,500 cash needed.
Net to seller — example
For a $700,000 Bellingham sale (no mortgage payoff):
| Item | Amount |
|---|---|
| Gross sale | $700,000 |
| Commission (6%) | -$42,000 |
| WA REET (~1.6%) | -$11,500 |
| Title insurance | -$3,000 |
| Escrow fees (half) | -$1,250 |
| Other costs | -$1,000 |
| Net to seller | ~$641,250 |
Less mortgage payoff if applicable.
FAQ
What’s the biggest buyer cost at closing besides down payment? Lender fees + title/escrow combined ($5K-$10K typical).
What’s the biggest seller cost? Real estate commission (5-6% of sale price).
Are closing costs negotiable? Some yes (lender fees, commission, title in some cases). REET no.
Can the seller pay buyer closing costs? Yes — common via negotiated seller credit at offer.
How are escrow fees split? Negotiable; often split 50/50.
What’s earnest money’s role at closing? Applied to down payment + closing costs.
Do I pay closing costs in cash? Yes — wired to escrow before or at closing.
Are property taxes prepaid at closing? Yes typically — buyer prepays portion via escrow.
What about homeowner’s insurance? Typically 1 year prepaid at closing.
How long before closing do I get final closing cost estimate? Lender provides Loan Estimate 3 days after application; Closing Disclosure 3 days before closing.
Talk to Genaro about your closing math
📞 (360) 389-6616 · ✉️ genaro@bellwetherrealestate.com
For broader buyer process: Buying a Home in Bellingham. For seller cost detail: Sell Your Bellingham Home. For REET specifically: WA REET Explained.
Don’t go generic — go with Genaro.
Genaro Shaffer · WA Broker #27119 · Bellwether Real Estate · 11+ years · 67+ transactions · 5.0 Zillow 📞 (360) 389-6616, Bellingham WA 98225 Powered by Bellwether Real Estate · Member NWMLS · Equal Housing Opportunity