Washington vs Idaho Closing Costs for Spokane Valley Buyers

Thinking about buying in Spokane Valley and torn between a home in Washington or just over the border in Idaho? You are not alone. Closing costs can look similar at first glance, yet a few state-level rules can change who pays what and when. In this guide, you will learn the key differences, where to verify exact figures, and how to budget with confidence for either side of the state line. Let’s dive in.

What closing costs include

Closing costs are the one-time expenses due at settlement. For buyers, they often include:

• Lender charges: origination, underwriting, credit report, points if any, and mortgage insurance if applicable.
• Third-party items: appraisal, flood determination, possible survey, escrow setup for taxes and insurance.
• Title and escrow: title search and commitment, lender’s title insurance, optional owner’s title policy, and escrow company fees.
• Government and recording: county recording of the deed and mortgage, and any transfer or documentary taxes where applicable.
• Prorations and prepaids: prorated property taxes and HOA dues, prepaid interest, and the first year of homeowners insurance.
• Other: inspections, HOA transfer or estoppel fees, courier or wire fees, notary, attorney if used, and potential survey costs.

Washington vs Idaho: key differences

Transfer and excise taxes

• Washington: The state imposes a Real Estate Excise Tax. Market custom is that sellers pay this tax in Washington, but it is negotiable and should be confirmed in your purchase contract.
• Idaho: Idaho does not have the same statewide REET structure. Some counties have recording or documentary fees. Responsibility for any such charges depends on local custom and what you negotiate.

The practical takeaway is that Washington’s REET usually affects the seller’s net, while Idaho’s transfer-related charges are generally different in form and amount. Your offer terms can still shift who pays.

Who usually pays what

• Washington: Sellers typically pay the excise tax. Buyers usually cover lender fees and title costs tied to the loan. Escrow fees are commonly split by local custom, and an owner’s title policy is optional and negotiable.
• Idaho: Local practice varies by county. Allocation of recording, title, escrow, and any documentary charges depends on local norms and contract terms.

Title, escrow, and how closings work

Closings in both states commonly run through title and escrow companies that handle funds, recording, and final statements. Some Idaho areas may include attorney involvement, but many transactions look similar to Washington in process. Always verify wiring instructions directly with the title or escrow company to protect against fraud.

Recording and when ownership transfers

Both states charge county recording fees that vary by document type and page count. Legal transfer typically occurs upon recording, which affects tax prorations and utility handoffs. Confirm Spokane County recording timelines and, if you are looking in Idaho, check the county recorder in that market.

Property taxes and proration

Both states prorate property taxes at closing based on the closing date and local billing cycles. Spokane County tax schedules and rates should be reviewed to estimate proration and future bills. If you are comparing Idaho options, review the county’s latest mill rates and any recent levies.

Broader tax environment

Washington has no state income tax, and Idaho does. This is not a closing cost, but it can influence your long-term budget and, for some buyers, lender affordability calculations.

What this means for your budget

A common rule of thumb is to plan for roughly 2% to 5% of the purchase price for buyer closing costs, not including any negotiated items that shift from the seller. Your lender’s Loan Estimate will give you a clearer number based on your loan program and rate.

Washington’s REET is often paid by sellers, yet it can still affect pricing strategy and credits. When you compare a Washington purchase to an Idaho purchase at the same price, model two scenarios: one where the Washington seller pays REET and one where the cost is reflected in pricing or concessions. This helps you see the true cash-to-close and the tradeoffs.

Spokane Valley specifics: where to verify numbers

For precise figures, go to the source:

• Spokane County Auditor or Recorder: recording fees, deed forms, and recording timelines.
• Spokane County Treasurer or Assessor: property tax rates, billing cycles, and proration details.
• Washington State Department of Revenue: Real Estate Excise Tax rules, filing steps, and exemptions.
• Idaho State Tax Commission and the recorder or treasurer in your target Idaho county, such as Kootenai County for the Coeur d’Alene area.
• Your lender: request a Loan Estimate for your exact loan program and rate environment.
• Your title or escrow company: ask for a sample buyer closing statement for your purchase price in the county you are targeting.

Negotiation levers to lower cash to close

There are several ways to adjust costs while keeping your overall deal balanced:

• Seller credits toward buyer closing costs.
• Price adjustments that account for Washington REET or Idaho recording practices.
• Who pays the owner’s title policy and how escrow fees are split.
• Lender-paid credits in exchange for a slightly higher rate, or discount points for a lower rate if it fits your plan.
• Timing the closing date to manage prepaid interest and tax proration.

Always capture the allocation of costs in your purchase contract so everyone can prepare accurate closing statements.

Step-by-step: compare WA and ID side by side

Use this simple checklist to get reliable, apples-to-apples numbers:

1. Get a Loan Estimate from your lender for your target price and down payment.
2. Ask a local title or escrow company for a sample buyer closing statement in Spokane County and in the Idaho county you are considering.
3. Confirm county recording fees with the Spokane County Recorder and the Idaho county recorder.
4. Review Washington REET guidance and verify how your contract allocates any transfer or documentary charges.
5. Check property tax schedules with each county treasurer to estimate proration and future bills.
6. Identify HOA transfer or estoppel fees, if applicable, and confirm who pays them.
7. Review everything with your agent and, for tax questions, consult a CPA before finalizing price and credits.

Timelines and logistics

Closing timelines usually reflect lender processing, appraisal and inspection milestones, and county recording workloads. Many purchases close in 30 to 45 days, subject to contract terms. The mechanics are similar in Washington and Idaho, so focus on clear communication with your lender and escrow, and always verify wire instructions by phone with known contacts.

Ready to run the numbers?

If you want a clear, side-by-side breakdown for a Spokane Valley purchase versus nearby Idaho, we can pull sample statements and coordinate with your lender so you know your true cash-to-close. Reach out to Ray Cross for a friendly, local walkthrough tailored to your goals.

FAQs

Who pays the real estate excise tax in Washington?

• Market custom is that the seller pays Washington’s REET, but it is negotiable and must be confirmed in the purchase contract.

Will I pay more in closing costs in Washington than Idaho?

• It depends on negotiations and local custom. Buyer-side lender, title, and recording costs are broadly similar, while Washington’s REET usually affects the seller’s side.

How much should I budget for buyer closing costs?

• As a starting point, plan for about 2% to 5% of the purchase price, then get a Loan Estimate and a sample Closing Disclosure for exact figures.

Is owner’s title insurance required for buyers?

• No. The lender’s policy is required by the lender, while an owner’s policy is optional and recommended. Who pays is negotiable.

Are closing timelines different between Washington and Idaho?

• Timelines are driven more by lender, appraisal, inspections, and recording schedules than the state line. Many closings take 30 to 45 days.

How do property taxes affect my closing in Spokane Valley?

• Taxes are prorated based on the closing date and Spokane County billing cycles. Confirm schedules with the county treasurer to estimate your proration and future bills.