Closing Costs In Edmonds: What Buyers Should Expect

Buying a home in Edmonds is exciting, but the final number you need to bring to the closing table can feel like a black box. You want a clear, local answer to what buyer closing costs look like in Snohomish County, who typically pays what in Washington, and how to plan your cash-to-close with confidence. In this guide, you will learn the key cost categories, local customs around title and escrow, and a simple step-by-step way to estimate your total funds to close.

Let’s dive in.

What closing costs include

Closing costs are the fees and prepayments needed to complete your purchase and mortgage. They are separate from your down payment and from ongoing costs like taxes, utilities, and HOA dues. Common items include lender charges, third-party reports, title and escrow fees, government recording fees, and prepaid insurance and taxes.

According to the Consumer Financial Protection Bureau, a useful planning range for buyers is about 2 to 5 percent of the loan amount, not the full purchase price. That range varies based on your loan type, whether you pay discount points, local recording fees, HOA items, and any seller or lender credits you negotiate. You can review an overview of typical costs in the CFPB’s guidance on closing costs.

• Read more about typical costs from the Consumer Financial Protection Bureau: what closing costs cover.

How much buyers in Edmonds usually pay

A practical rule of thumb is to plan for 2 to 5 percent of your loan amount for closing costs. If you expect to pay discount points to lower your rate, or if you are not expecting seller credits, plan toward the higher end. If you are using lender credits or a no-point rate, you may land closer to the lower end.

Your exact number will become clear as you shop lenders and receive a standardized Loan Estimate. Your lender must also provide a final Closing Disclosure at least three business days before closing so you can confirm the exact cash-to-close.

• See what appears on the Loan Estimate and Closing Disclosure.

Who typically pays what in Washington

Customs can vary by county and by contract, and many items are negotiable. Below is what buyers in Washington commonly see.

Loan charges

• Origination and lender fees: typically buyer.
• Discount points to lower your rate: buyer, if chosen.
• Underwriting, processing, and credit report fees: buyer.
• Prepaid interest from the closing date to month end: buyer.

Third-party reports

• Appraisal: usually buyer when financing.
• Home inspection and any specialty inspections: buyer.
• Survey or pest inspection if required: usually buyer.

Title and escrow fees

• Lender’s title insurance policy: required by the lender and typically paid by the buyer.
• Owner’s title insurance policy: protects you as the owner. In the Puget Sound region, including Snohomish County, sellers often pay for the owner’s policy, but this is a local custom and negotiable.
• Escrow or settlement fee: often split, though the contract can assign it differently.
• Recording fees: buyers typically pay to record the mortgage or deed of trust. Deed recording can be paid by either party based on custom and contract.

For background on how title insurance and escrow work in Washington, see the Washington Land Title Association.

Government taxes and transfer fees

• Real Estate Excise Tax (REET): in Washington this tax is generally paid by the seller. Buyers should know it affects overall negotiation since it impacts seller net proceeds. Current brackets and rules are published by the Washington Department of Revenue.

Escrows and prepaid items

• Homeowners insurance: buyers usually pay the first year at closing.
• Property tax prorations: based on the closing date and Snohomish County’s tax schedule, buyers typically reimburse the seller for any prepaid taxes or receive credit if taxes are due.
• Initial escrow or impound reserves: lenders often require a few months of property taxes and insurance to seed your escrow account at closing.
• HOA dues and transfer or resale package fees: usually buyer, though negotiable.

Real estate commissions

• Listing and buyer-broker compensation is typically paid by the seller out of proceeds. That can influence negotiations on credits and pricing.

Edmonds and Snohomish County factors that change totals

Local rules and timing can shift your bottom line. Here are common Edmonds considerations.

REET in Washington

REET is administered at the county level and due at closing. While sellers usually pay this tax, buyers should confirm the contract terms because this cost can shape how much a seller will contribute toward your closing fees. Review the Washington Department of Revenue’s REET page for current brackets.

Recording fees

Snohomish County sets document recording fees by statute. These are modest per-document charges but can add up if there are multiple or lengthy documents. Check current charges with the Snohomish County Recording office.

Property tax proration and timing

Your proration depends on the closing date and the county’s tax calendar. Edmonds buyers should plan for county, city, and school district tax proration. For schedules and parcel-specific amounts, consult the Snohomish County Treasurer.

HOAs and condo associations

Many Edmonds properties have HOA or condo associations. Resale certificates, estoppel letters, transfer fees, and expedited processing can add vendor fees. Ask for the HOA fee schedule early in escrow so you can plan for these costs.

Local custom on title and escrow split

In much of the Puget Sound area, sellers often purchase the owner’s title policy, and buyers pay the lender’s policy. Escrow fees are commonly split. Both are negotiable, so confirm the custom in your offer and with the title and escrow company.

Vendor pricing differences

Title and escrow rates, appraisal fees, and inspection costs can vary slightly by provider and by season. During busy market periods or for complex properties, third-party fees can trend higher. Ask for written estimates from your lender and escrow team specific to Snohomish County.

How escrow and title work in Washington

Escrow basics

In Washington, a neutral escrow company handles the funds and documents for both sides. The escrow officer follows the signed purchase contract and escrow instructions, collects lender documents and buyer funds, then disburses funds when all conditions are met. You can learn about escrow’s role from the Washington State Department of Financial Institutions.

Title insurance

If you finance, your lender will require a lender’s title policy. An owner’s policy is optional but recommended since it protects your ownership from covered title defects. The one-time premiums are paid at closing. Local custom often has the seller buy the owner’s policy, but confirm in your contract.

Documents you will receive

• Loan Estimate within three business days of application. This outlines your rate, fees, and projected cash-to-close.
• Closing Disclosure at least three business days before closing. This shows your final numbers and the exact amount to wire.

Review the CFPB’s guides to the Loan Estimate and Closing Disclosure.

Funding, wiring, and final steps

Escrow will provide wire instructions for your cash-to-close. Always verify the instructions by calling the escrow company at a known phone number to avoid fraud. The CFPB offers tips on how to protect yourself from mortgage closing scams.

On closing day, your lender funds the loan, escrow records the deed and your deed of trust with Snohomish County, and then releases keys per the contract.

Estimate your cash-to-close in Edmonds

Use this simple framework to plan your funds to close.

1. Start with the purchase price.
2. Subtract your down payment to get the loan amount.
3. Estimate closing costs at 2 to 5 percent of the loan amount. Use the higher end if you expect points or no credits.
4. Add prepaid items you must fund at closing:
   • First year of homeowners insurance
   • Prepaid interest from your closing date to month end
   • Initial escrow reserves for taxes and insurance, if required
   • HOA dues or resale package fees, if applicable
5. Subtract any seller or lender credits in your contract.
6. Final cash-to-close equals down payment plus closing costs plus prepaids and reserves, minus credits.

Example for context only:

• Purchase price: 700,000 dollars
• Down payment: 20 percent equals 140,000 dollars
• Loan amount: 560,000 dollars
• Closing costs estimate at 3 percent of the loan: 16,800 dollars
• Prepaids and initial reserves estimate: 4,200 dollars
• Seller credit: 2,000 dollars
• Estimated cash-to-close: 158,000 dollars

Your lender will lock this down on your Closing Disclosure at least three business days before closing.

Smart ways to reduce or plan for closing costs

• Compare at least two or three lenders using standardized Loan Estimates. This helps you compare lender fees and points.
• Request a preliminary title and escrow fee estimate early. Ask for Snohomish County recording fees and any HOA transfer costs based on the address.
• Ask the listing agent about custom for the owner’s title policy and confirm the seller is paying REET. These items can influence how much a seller will credit toward your costs.
• Consider negotiating seller credits. Sellers can credit some of your closing costs, but not your down payment.
• Shop third-party providers where allowed by your lender and contract. Inspectors and some services are often buyer selected.
• Stay alert to wire fraud. Always verify wire instructions by phone with your escrow officer using a known number.

Where to get exact numbers in Edmonds

• Your lender: Ask for a detailed Loan Estimate, then confirm the final amount on your Closing Disclosure.
• Your escrow and title company: Request a fee sheet with title premiums, escrow fees, and Snohomish County recording charges.
• Snohomish County: Check recording fees with the Recording office and tax schedules with the Treasurer.
• Washington authorities: Review REET rules with the Department of Revenue and escrow basics with the Department of Financial Institutions.

If you want help building a clear, property-specific estimate and negotiating the right credits, reach out. As a local Managing Broker based in Edmonds, I guide buyers through these numbers every week and keep your closing smooth and predictable.

Ready to plan your Edmonds purchase with clarity? Connect with Ryan Hoff to build your cash-to-close roadmap and start your search with confidence.

FAQs

What are typical buyer closing costs in Edmonds?

• Buyers commonly plan for 2 to 5 percent of the loan amount for closing costs, with the exact total depending on loan type, points, local fees, and credits.

Who pays the Real Estate Excise Tax in Washington?

• The seller usually pays REET in Washington, though the contract controls, and the tax can influence how much a seller is willing to credit toward buyer costs.

Do buyers or sellers pay for title insurance in Snohomish County?

• Buyers typically pay the lender’s title policy, and sellers often pay the owner’s policy in the Puget Sound area, but both items are negotiable.

What is escrow and how does it affect closing?

• A neutral escrow company holds funds and documents, follows the contract and lender instructions, collects your cash-to-close, and records the deed and loan on closing day.

When will I know my exact cash-to-close amount?

• Your lender must provide a Closing Disclosure at least three business days before closing, which lists the final amount to bring or wire.

How can I lower my closing costs as a buyer?

• Compare lenders, negotiate seller credits, avoid paying points if you prefer a higher rate, and shop eligible third-party services when allowed by your lender.