Washington DC real estate transactions typically involve significant closing costs averaging $12,000 to $15,000. Key components include title insurance ($2,500-$3,500), transfer taxes ($1,406-$2,250 based on sale price and location), and escrow fees ($500-$1,500). Additional costs may arise from home inspections, appraisal fees, and legal services.

The high closing costs in Washington DC are driven by mandatory state and local requirements. Title insurance, required by law, protects buyers against title defects, with premiums determined by property value. Transfer taxes, levied on the sale of residential property, range from $2.25 to $4.25 per $1,000 depending on the quadrant and sale price. For example, a $625,000 home in Northwest DC (where the rate is $2.25/$1,000) incurs $1,406.25 in transfer taxes. Escrow fees cover prorated property taxes and insurance. Data from the DC Office of Tax and Revenue shows that 68% of recent transactions exceeded $12,000 in closing costs, reflecting the high cost of compliance in the region. Additionally, the DC Zillow Research report (2023) notes that the median sale price in DC was $625,000, with closing costs representing 2.4% of the purchase price—a higher percentage than the national average of 2%. These factors underscore the importance of budgeting comprehensively for DC real estate buyers.