Most people spend months thinking about the price of a home and only a few minutes thinking about closing costs, right up until the estimate arrives. Then the questions start. What is this fee? Who pays that one? Why does my friend's closing in Coeur d'Alene look so different from mine in Spokane?
Because our market spans two states, closing costs here come with an extra wrinkle. Washington and Idaho handle certain taxes and customs differently, and a home a short drive across the state line can come with a different set of line items. This guide walks through the basics for both buyers and sellers so the numbers feel less mysterious.
What Closing Costs Actually Are
Closing costs are the fees and expenses, beyond the purchase price and down payment, that are paid to complete a real estate transaction. They generally fall into a few broad groups:
Some of these costs are traditionally paid by the buyer, some by the seller, and some are split. Local custom sets the starting point, but nearly everything is negotiable in the purchase agreement.
The Buyer's Side
For buyers, closing costs are paid in addition to the down payment. Your lender is required to give you a Loan Estimate early in the process and a Closing Disclosure before closing, which lets you compare the two and ask about any differences.
Common buyer costs
Buyers typically see lender fees, the appraisal, their share of title and escrow charges, recording fees and prepaid items. The prepaid portion often surprises people. Depending on when you close and how your property taxes and insurance are structured, you may need to fund an escrow account for future bills.
Ways buyers sometimes reduce costs
Whether any of these options fit depends on the market, the property and your loan. Your lender is the right person to walk through the specifics with you.
The Seller's Side
Sellers usually do not pay lender fees, but they have their own list of costs. Common seller expenses include:
Sellers should request an estimated net sheet early. It turns a list price into a realistic picture of what you might walk away with, which helps with planning your next move.
Where Washington and Idaho Differ
Here is where our two-state market gets interesting. We are not going to quote rates here, because they change and they depend on the specifics of each transaction, but these are the areas where buyers and sellers commonly notice a difference.
Excise and transfer taxes
Washington charges a real estate excise tax on most property sales, and it is customarily paid by the seller. Idaho approaches property transfers differently. If you are selling on the Washington side, ask your title or escrow company for a current estimate early, since it can be one of the larger line items on a seller's statement.
Property taxes and prorations
The two states structure property taxes differently, including how bills are issued and when they are due. That affects how taxes are prorated between buyer and seller at closing and how much a buyer's lender may collect up front. Your escrow officer can explain the proration on your specific closing.
Customs around who pays what
Each state, and sometimes each county, has its own conventions for splitting escrow fees and title insurance costs. These customs are a starting point for negotiation, not a rule, so it is worth reviewing them with your agent before you write or accept an offer.
Income tax considerations
Washington has no state personal income tax, while Idaho does. This does not change your closing costs directly, but it can factor into how some buyers weigh homes on each side of the line, and it can matter for sellers thinking about gains on a sale. A tax professional is the right resource for your situation.
Reading Your Closing Documents
As closing approaches, you will receive a detailed statement of every cost. Take the time to read it rather than skimming for the bottom line. A few habits help:
A Good Time to Plan
Early summer is one of the busiest stretches for closings across the Inland Northwest, which means title companies, lenders and escrow officers are juggling full calendars. Getting your estimates early and your questions answered ahead of time helps keep your transaction on track.
The Bonds & Co. works with buyers and sellers on both sides of the state line every day, and we are happy to help you understand an estimate, compare costs between Spokane and North Idaho or plan for your next move. Reach out to our team and let's talk it through.
