Overview
Washington State combines the tech-driven economy of Seattle with natural beauty from the Puget Sound to the Cascade Mountains. The state has no income tax, making it attractive for high earners. From urban condos in Seattle to wine country estates in the Columbia Valley, Washington offers diverse real estate opportunities.
Washington Real Estate Market
Seattle's market, once one of the hottest in the nation, has experienced a correction from pandemic peaks. Tech industry fluctuations have impacted demand, though the market remains competitive. Eastern Washington offers significantly more affordable options, with Spokane emerging as a popular alternative. The lack of state income tax continues to draw buyers from California and other high-tax states.
Property Taxes in Washington
Washington property taxes are near the national average. The state's constitution limits regular levy rates to 1% of assessed value.
Average effective rate: 0.98%
Annual tax on median home: ~$5,635
Senior exemptions: Available for qualifying homeowners 61+
First-Time Buyer Programs
Washington State Housing Finance Commission:
- Home Advantage - Down payment assistance up to 4%
- House Key Opportunity - For first-time buyers
- HomeChoice - For buyers with disabilities
- Mortgage Credit Certificate - Tax credit program
Closing Costs in Washington
Washington has higher closing costs due to its Real Estate Excise Tax (REET).
Common costs include:
- Real Estate Excise Tax: 1.1-3% based on sale price
- Title insurance: Based on purchase price
- Escrow fees: $500-$1,500
- Recording fees: County-dependent
Frequently Asked Questions
The Real Estate Excise Tax (REET) is Washington's transfer tax, ranging from 1.1% to 3% of the sale price depending on the amount. It's typically paid by the seller but can be negotiated.
Washington offers strong fundamentals for investment: no state income tax, diverse economy, and limited housing supply in urban areas. However, high prices in Seattle and tenant-friendly laws require careful analysis.
Washington has no income tax while Oregon has no sales tax. Washington typically has higher home prices but lower ongoing tax burden for high earners. Both offer similar quality of life and natural beauty.