This black comedy starring Michael Douglas and Kathleen Turner and directed by Danny DeVito, was set in Washington but filmed mostly in Los Angeles. Exterior shots of the house were done at 119 Fremont Place in Los Angeles, and interiors were built as sets.
The old church that Oliver (Michael Douglas) & Barbara (Kathleen Turner) visit with the cemetery is on Whidbey Island off Highway 20 on Zylstra Rd.
They run down the hill from this spot toward Highway 20 and the ferry landing in Penn Cove.
The small waterfront village where the estate auction took place was the small historic town of Coupeville on Whidbey Island. Just follow Highway 20 south from the church location.
These shots are looking down Front Street NW.
You can see the town wharf in the background of this shot.
Google Map
(see attachment below)