What Are Closing Costs on a House?

Closing costs are additional expenses that buyers and sellers pay to complete a real estate transaction. Costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges. They can be associated with the mortgage company, realtor, third-parties, or local and state agencies.

When you sell a house, part of the agreement involves who will pay the closing costs and the amount of each cost. For example, to sell your house in Washington, you may agree to pay the first six months of homeowners insurance after the buyer moves in. Or, you may agree to pay realtor commissions for both the buyer’s and the seller’s realtor.

Below we provide a brief overview of common seller closing costs and what you can expect to pay at closing. We also provide a solution for how to avoid closing costs.

Title Search

Average cost: $300 to $600

Ensures that you are the rightful owner of the property and no outstanding claims or judgments against the property. 

Title Insurance

Average cost$1,000

The lender and buyer obtain title insurance, which protects them if a title problem arises after closing.

Home Inspection

Average cost $300 to $500

Ensures there are no major issues with the home’s structure or systems.


Average cost $450 to $650

The report verifies whether the property is worth the asking price or what the seller is borrowing from the lender.


Average cost $350 to $500

For loans, many states require a survey, which shows where the property’s legal boundaries are.

Credit Report

Average cost $20 to $50 per report

The lender will run a credit report on the buyer with one of the three major credit reporting bureaus.

Loan Payoff Costs

0.5 percent – 1.5 percent of the sale price

Loan payoff costs include application and assumption fees, prepaid interest, and loan origination fees.

Mortgage Payoff or Prepayment Penalty

Amount varies by the loan agreement

If you owe anything on the property’s mortgage, you will pay this amount at closing. Some lenders charge a penalty for paying your loan off before the end of the mortgage term. Penalties can be a percentage of your remaining balance or a sliding scale fee based on the age of your loan. 

Outstanding Property Amounts Owed

Amount varies by balances

Outstanding amounts may include property taxes, utility bills, homeowners insurance, and HOA dues. Amounts are be prorated to the closing date.

Transfer Taxes

Amount based on property value and local regulations

Depending on your local and state laws, you’ll likely be charged taxes on the sale transaction. These are calculated based on the property’s value and local laws. Your state and county taxing authority’s website will have information about your local tax rates. You can also ask your real estate agent.

Recording fees

Amounts vary based on county

Your escrow agent, title agent, or attorney will file the deed transferring the property to the buyer with the appropriate county office. Each county sets its recording fee.

Settlement or Attorney Fee

Average cost of attorney fee $150 to $500

Average cost of settlement fee $2 per $1,000 in selling price

  • A settlement fee is paid to the escrow or title agent who handles your closing. If an attorney is handling the closing, you will pay attorney fees instead.

    Get Your Fair & Honest All-Cash Offer Today! No Obligations!

    By submitting this form, you agree to our Conditions of Use and Privacy Policy. You may receive both automated and personal text messages. Reply STOP at anytime to opt-out.

    Or Call Us Now At 253-300-2897

    How to Avoid Closing Costs When Selling a House

    As the seller in a transaction, you are likely to pay the bulk of your and the buyers’ closing costs. When realtors negotiate the conditions of the sale, they often offer to pay a closing cost to sweeten the deal. This is one of the downsides of hiring a realtor and making a traditional sale. However, there is a way to avoid closing costs.

    You can sell your house as-is for cash to a company that buys houses in Tacoma, Washington. A professional house buyer can assess the value of your house, make a fast cash offer, and close the sale within a few days. The buyer agrees to pay most or all of closing costs, saving you thousands of dollars in selling expenses. 

    How to Sell Your House for Cash in 3 Steps

    You may be asking yourself, “How do I sell my house fast in Tacoma, Washington?” Tacoma Cash Offer can buy your house as-is in three easy steps.

    Step 1: Contact Us

    Before you contact a real estate agent, call us first. You can schedule a quick walkthrough of your property whenever it is convenient for you. There is no obligation or pressure to sell. We can look at the property and decide if we want to buy it. If so, we will make an offer.

    Step 2: Get a Fair Cash Offer

    If we like what we see, we’ll make a fast cash offer within 24 to 48 hours. You don’t have to wait for several days to land a deal. We make a fair offer that is just below your house's current real estate market value. Once we make an offer, we never change it.

    Step 3: You Get Paid

    If you accept our offer, we schedule a closing date that is convenient for you. We show up, sign the paperwork, and pay all closing costs. You can close in as little as seven days. Working with us is easier than selling your house in the traditional way.

    Contact Tacoma Cash Offer to Sell Your House Fast

    You don’t have to wait to unload your property. If you need to sell your house fast in Tacoma, Washington, contact Tacoma Cash Offer. We can look at your property, make an offer, and close in as little as seven days. Call 253-300-2897 to get a fair cash offer. 

      Get Your Fair & Honest All-Cash Offer Today! No Obligations!

      By submitting this form, you agree to our Conditions of Use and Privacy Policy. You may receive both automated and personal text messages. Reply STOP at anytime to opt-out.

      Or Call Us Now At 253-300-2897