Annika - Buyer Information

YOUR HOME-BUYING GUIDE

PREPARED FOR: Annika Baggenstos

Meet your trusted broker

Bear Hansen Greater Eastside & Seattle Area

Having grown up in the Pacific Northwest, Bear loves the amazing setting that Washington offers. He’s also a huge fan of all the local sports teams. Bear graduated from the University of Washington’s Foster School of Business in Seattle with his Bachelor’s degree in Marketing. After graduating he wanted to take a job that was client focused and where he could make a noticeable impact. Bear has enjoyed working in the real estate industry as it allows him to use his talents as a communicator and marketer. His attention to detail helps him carry out his role as an Executive Client Manager for some of the top brokers at Real Residential. Bear takes pride in delivering results in a timely manner and offering quick and efficient support. His character of integrity in both his work and personal life sets him apart.

Bear is married and enjoys spending time with family and friends. He enjoys outdoor adventures such as camping, hiking, and fishing. He also enjoys picking up new skills and can quickly become competitive in anything he takes up. Bear’s determination, perseverance, and hard work ethic were evident during his 10+ years on the soccer field, including playing at the premier level. These are the same qualities he tries to emulate in his role at Real Residential.

Bear has assisted in over 200 transactions. He has helped with the purchase and sale of condos, townhomes, land acquisitions and single family homes (resale & new construction).

The Real Duty of Care Every person deserves honesty. We promise that honesty will be at the core of every communication we have with our clients.

We promise to elevate our client over any self-interest.

We promise to advise and educate.

We promise to treat our clients’ home as though it were our own.

We promise to remain in our clients’ lives for anything they need that enhances their joy and convenience in their home.

We promise that any request from our client will be answered honestly and timely.

We promise to treat our fellow Broker colleagues inside and outside of Real with care and consideration.

We promise to be REAL

2026 Brokerage Stats

554 Homes Sold

$1.03B+ Volume Sold

#1

$2.033M

Team Voted by Real Trends

Average Sale Price

Real Residential Manifesto For most of us, a house is our single-greatest financial asset. But a house is more than a structure for shelter and space—it’s often also a home, and home is one of the most emotional assets we can own.

The process of buying or selling a home can feel daunting, and it’s frequently cloaked in mystery and uncertainty—especially in a competitive market like the Seattle metro. Mortgage interest rates are unstable, properties are scarce, and bidding wars are tense. But even amidst the chaos, it can also be a journey of joy in which you dream of your new life or experience financial opportunity. Most of the time, the difference between a bad experience and a good one is the team supporting you.

Our team is a select, nimble group of experts focused on our local communities and intentional about slow growth so we can provide the best service to our clients. We’re on a mission to redefine the duty of care in real estate to mean more than just legal obligation. For us, duty of care is a standard of how you treat people, and it starts with honesty. Honesty means educating you about market conditions (so you can make your best decision) and advocating for you like you’re a family member. Honesty means telling you what you need to hear, not just what you want to hear. Honesty means doing everything in our power to make your dreams come true.

Honesty means being real. And we promise to be real with you.

THE HISTORY OF

2007

NWG is founded in Downtown Seattle

2014

NWG expands to Bellevue/Eastside

2017

NWG becomes top independent brokerage in WA with over $500 million sold annually

2018

2020

2022

NWG joins Compass as the Founding Team

NWG is ranked top team in WA and #4 Nationally in WSJ

Real Residential is founded and launched by the original NWG team

Testimonials

Buyer Bear made our first time home buying experience the best one I could’ve ever wanted.

He was incredibly accessible, knowledgeable, and consistent. His skills led us to a perfect closing deal for our first choice home. You can tell Bear is passionate about what he does by the way he goes above and beyond for his clients. We are forever grateful and cannot recommend him enough.

Buyer Bear made our home-buying process as easy as my wife and I could have asked for! His knowledge and expertise helped us identify and purchase our home smoothly. He worked late nights and went above and beyond our expectations. I highly recommend him to any new home buyer!

Buyer Bear was awesome to work with! He was very knowledgeable and answered questions quickly and thoroughly. He helped us find and close on exactly what we were looking for.

Can’t thank him enough!

Buying a Home in the Greater Seattle Area The greater Seattle area is one of the most desirable and competitive real estate markets in the world, and we understand that making the decision to buy a home here can be a particularly overwhelming experience.

That is why we have created this Buyer’s Guide—to set you on the right course to owning your perfect home!

Why Work with a Real Residential Buyer’s Broker?

The purchase of a new home may be one of the most important decisions you make in your life. A home is not just shelter. It offers stability, security, and community, not to mention predictable housing costs, tax benefits and the ability to build equity over time.

As with other major life decisions, it is important to get trusted, expert advice to ensure that you make an informed choice. Your Real Residential broker is here to help you assess your financial situation, lifestyle and long-term goals, along with market conditions and any other relevant personal circumstances, to ensure you make the decision which is right for you.

Here are some of the many ways in which your Real Residential broker can assist you:

INVENTORY ACCESS

MARKET KNOWLEDGE

Buyers have access to ample information about homes which are on the market, but your Real Residential broker is able to uncover unlisted opportunities through a variety of approaches, including a proprietary internal roster of offmarket properties. Your Real Residential agent will show you properties of interest and provide feedback about the homes and how and whether they might be a fit for you and your goals..

While buyers can identify properties of interest via public real estate portals, your Real Residential broker is well-versed in the local real estate market and has the ability to provide valuable insights into neighborhoods, property values, and market trends, in order to help you make informed decisions.

NEGOTIATION SKILLS

GUIDANCE THROUGH THE PROCESS

Your Real Residential broker is an experienced negotiator. They can negotiate on your behalf to secure the best possible price and terms for the home, leveraging their knowledge of the market and understanding of the negotiation process.

Buying a home is a complex process with various steps, from identifying properties of interest, to making an offer, and then closing the sale. Your Real Residential broker can guide you through each step, explaining the process, handling the paperwork, and ensuring that deadlines are met.

PROFESSIONAL NETWORK Your Real Residential broker has a professional network that includes mortgage brokers, home inspectors, real estate attorneys, and contractors. They can recommend trusted professionals to help streamline the home-buying process and enhance the enjoyment of your home after closing.

INSPECTIONS Your Real Residential broker can assist in coordinating property inspections and help you interpret the results. They have experience identifying potential issues and can advise you on how to proceed based on the inspection findings.

COST SAVINGS PAPERWORK & DOCUMENTATION Purchasing a home involves a significant amount of paperwork. Your Real Residential broker will help you navigate through the documentation, ensuring that all necessary forms are completed accurately and on time.

SAVE TIME & REDUCE STRESS With your Real Residential broker handling many aspects of the home-buying process, you can save time and reduce stress. They can schedule property viewings, handle negotiations, and manage administrative tasks, allowing you to focus on finding the right home. Remember, you may only buy a home a handful of times in your life. You can relax knowing that your purchase is in the hands of a Real Residential broker with the experience and expertise to support you.

While there is an expense associated with engaging a buyer’s agent (generally paid by the seller out of the sales price of the home), your Real Residential broker can save you money in the long run. Their negotiation skills can help you secure a better deal, and their guidance can help prevent costly mistakes.

DUTY OF CARE Your Real Residential agent works for YOU, the buyer, and has an obligation to act in your best interests. This means they will provide honest, objective advice, helping you avoid potential pitfalls and making decisions that align with your goals. This may include telling you when NOT buying is the best decision.

Real Residential was founded on the idea that we have a duty of care to our clients, and that your needs and interests always come first.

Steps in the Home Buying Process 1. CHOOSE A REAL ESTATE AGENT Your broker will act as your advocate and trusted advisor throughout the home buying process. It’s never too early to get in touch!

2. GET PRE-APPROVED Before you begin your search, you will need to obtain a pre-approval for a mortgage loan (if you have a complicated income situation or if you want to be further competitive in offers you can go through the underwriting process as well) Your Real Residential broker can connect you with an experienced mortgage broker or banker offering competitive rates and desirable terms. The lender will review your financial information and creditworthiness to determine the maximum loan amount for which you are qualified. The pre-approval will be critical in determining a price range for your home search. If you plan to pay the entire purchase price of the home in cash, you will just need to provide a bank statement, letter from your financial advisor, or other similar written proof of funds.

3. VISIT PROPERTIES Your broker will coordinate and accompany you on showings of the homes you are interested in.

You may find a home you like online or visit an open house, or your broker may recommend you see a home that meets your criteria, including off-market properties which might be a fit.

Regardless of how the home is identified, your broker will provide you with important information and feedback about the property, neighborhood, and market trends, both at the showing and later as a follow-up, so that you can decide if the property is a good fit.

4. CONDUCT A HOME INSPECTION A home inspection can be conducted either prior to making an offer (a pre-inspection) or after mutual acceptance, depending on the terms of your offer. The inspection is an important tool for identifying potential concerns with the home. If issues are uncovered, you may have the opportunity to request repairs, a price reduction, or other concessions.

5. REVIEW LISTING DOCUMENTS A home inspection can be conducted either prior to making an offer (a pre-inspection) or after mutual acceptance, depending on the terms of your offer. The inspection is an important tool for identifying potential concerns with the home. If issues are uncovered, you may have the opportunity to request repairs, a price reduction, or other concessions.

Key listing documents including the title report, seller disclosure, and (where applicable) HOA documentation. These documents can be reviewed either prior to making an offer, or after mutual acceptance, depending on the terms of your offer.

Title Report: This report provides important information about ownership history and any potential issues that may affect your ability to obtain clear and marketable title to the home, including liens, restrictions, judgments or disputes.

Seller Disclosure (Form 17): This form is provided to potential buyers to disclose information about the condition of the property. The purpose of this disclosure is to inform buyers about any known issues or defects with the property before they make an offer to purchase. While sellers are generally required to disclose known issues, there may be situations where they are not aware of certain problems. Buyers are therefore encouraged to conduct their own inspections and due diligence.

6. MAKE AN OFFER Once you have identified a home you wish to purchase, you will submit an offer on standardized forms which outlines the proposed price, closing date, earnest money amount, and other terms supported by your financing pre-approval or proof of funds letter. Your Real Residential broker will assist you with structuring a competitive offer and negotiating the purchase.

7. REACH MUTUAL ACCEPTANCE AND OPEN ESCROW Once all terms of the home purchase have been agreed upon by you and the seller in writing, the parties have mutual acceptance and the home is considered at that point to be a pending sale or under contract. Shortly after mutual acceptance, a file will be opened for the transaction at escrow.

8. DEPOSIT EARNEST MONEY Once the transaction file has been opened, you will deposit the agreed upon amount of earnest money with escrow (typically around 3%)

9. COMPLETE YOUR LOAD APPLICATION AND OBTAIN LOAN APPROVAL If you have not already done so, make formal application for financing and submit all documentation required by the lender to obtain full loan approval through the underwriting process.

You will also look for home owners insurance which is a requirement for a loan. Some states have had trouble finding places to insure their home so it’s important to nail this down before contingencies end to prevent losing your earnest money.

10. CONDUCT THE FINAL WALK THROUGH Prior to closing, you will conduct a final walk through to ensure that the home has been properly maintained and any agreed upon repairs completed.

11. SIGN FINAL CLOSING PAPERWORK Escrow will prepare the closing paperwork for you and the sellers to sign. Your closing paperwork will include escrow instructions, a settlement statement, mortgage loan documents (if applicable), excise tax affidavit and other supporting documents. Signing the closing paperwork is a separate step of the actual closing of the sale itself.

12. CLOSE THE SALE Once all your funds (including those from your mortgage lender, if any) have been deposited with escrow, the title company will record the deed with the county on the closing date to officially transfer ownership of the property to you.

13. OBTAIN THE KEYS Once the sale has been recorded, the seller will provide the keys and other access devices for your new home to you via your broker.

Key Terms APPRAISAL A professional assessment of the value of a property, generally done for the purpose of obtaining a mortgage loan.

CLOSING COSTS All charges and fees associated with the transfer of property ownership, including but not limited to escrow, title insurance, and recording fees.

CLOSING DISCLOSURE A form generated by the lender that provides final details about the mortgage loan including the loan terms, projected monthly payments, fees and other costs.

COMMON CHARGES OR DUES A monthly maintenance fee paid by condo owners, which may include insurance, utilities and reserve contributions. Property taxes are generally not included.

CONTINGENCY A condition that must be met for a real estate purchase agreement to be binding. Common contingencies include the inspection contingency and the financing contingency.

DEBT-TO-INCOME RATIO The percentage of an individual’s monthly gross income relative to the amount of debt owed.

DEED A signed legal document that transfers title, or the legal ownership of a property, to a new owner. A deed to real property must be properly recorded with the local government for its owner to be able to sell it, refinance it, or obtain a line of credit on it.

DOWN PAYMENT The money that the buyer provides together with the loan funds to purchase the property. This is considered the buyer’s equity or cash investment in the property.

EARNEST MONEY A deposit of funds to escrow shortly after mutual acceptance, to be transferred to seller as a part of the purchase price upon closing of the home sale. These funds are a way for the buyer to express their good faith and to compensate the seller for taking the property off the market while the buyer completes their due diligence, arranges financing, and fulfills other conditions specified in the purchase agreement. Depending on how the agreement was written, the buyer may forfeit the earnest money to the seller if the buyer fails to close on the sale.

ESCROW A neutral party which holds the earnest money, any down payment and mortgage funds, as well as the deed to the property, until all elements of the transaction are completed, and ownership of the property is legally transferred upon closing.

HOME INSPECTION A limited, non-invasive examination of the condition of a property, based on which the home inspector can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical, water and sewer, along with some fire and safety issues. The home inspector describes the condition of the home at the time of inspection but does not guarantee future condition, efficiency, or life expectancy of systems or components.

IN CONTRACT OR PENDING Refers to the time between the signing of the purchase and sale agreement by the buyer and seller, and the closing.

MUTUAL ACCEPTANCE The point in time when a seller accepts all the terms of a buyer’s offer for a property.

PRIVATE MORTGAGE INSURANCE (PMI) A type of insurance which protects the lender if the borrower stops making payments on the loan.

PMI is arranged by the lender and provided by private insurance companies, but paid for by the borrower. PMI is usually required when the down payment is less than 20% of the purchase price of the property (generally 0.5% - 1.5% of the loan each year)

PRE-APPROVAL A preliminary approval from the buyer’s lender, based upon financial information provided by the buyer. This is not a final commitment to lend.

TITLE INSURANCE A type of insurance which protects the holder from financial loss sustained related to defects in a title to a property, which may include financial, tax or mechanic’s liens, building code and permitting issues, boundary disputes or other claims. Owner’s title insurance is paid for by the seller to protect the buyer’s equity in the property. Lender’s title insurance is paid for by the borrower to protect the lender.

UNDERWRITING Mortgage underwriting is the process that lenders use to assess the risk of lending money to a potential homebuyer. It involves a detailed analysis of the borrower's financial situation, creditworthiness, and the property itself. The goal of mortgage underwriting is to determine whether the borrower is a suitable candidate for a mortgage and to establish the terms and conditions of the loan. Once a loan is fully underwritten, the lender will provide the buyer with the loan funds to complete the home purchase at closing.

Expenses / Items to consider What are the rules for renting out with your mortgage: If you use a primary-residence mortgage (vs. investment property loan), the lender may require you to occupy the property for a certain period (often 12 months) — unrelated to tax, but important for financing?

What is your idea of ownership time? How long to hold (you want to keep in for 2 years alteast.

You avoid capital gains exclusions. Or if you live in 2/5 years. Federal cap gain tax you can exclude 500k appreciation. But if you benefited from depreciation, you will be taxed on that up to 25%. Depreciation increases your taxable gain.

Condos are definitely slower to appreciate than single-family. They have no land, and competing units and new construction are more in volume than single-family homes typically.

HOA’s ran poorly, also have an impact/affect on the salability.

Closing Fees as buyer Loan origination fees (0-1%) *Did Denae talk about this? You can negotiate this but it usually will be a tradeoff with the interest rate Underwriting $500-$1,000 Processing fee $400 - $1,000 Appraisal $600 - $900 Inspection: $400 - $700 Title & escrow $1,500 Recording fees $300 Prepaid property taxes & insurance Prepaid HOA Homeowners’ insurance ($600-$1,000) When selling Real Estate Agent Commissions (5–6%): $35,000 – $42,000 Escrow / Closing Fees: $500 – $1,500 Title / Owner’s Policy: $3,500 – $7,000 Recording Fees (King County): $100 – $400 HOA Resale Package / Disclosure Docs: $200 – $500 Payoff of any HOA dues or special assessments: $0 – $3,000+ Repairs / Maintenance / Pre-Sale Prep: $500 – $5,000 Staging / Photography: $500 – $2,500 Home Warranty for Buyer (optional): $400 – $600 Mortgage Payoff (principal + accrued interest): varies (~$560,000 for example) Real Estate Excise Tax (REET, WA state + local): ~$12,460 (~1.78% of $700k) Miscellaneous / Legal / Courier Fees: $50 – $200 Capital Gains / Depreciation Recapture Tax (if applicable): depends on rental history and gains; $0 if primary residence within 2-of-5 rule

Sale Price

State REET Rate

Local REET

Total REET

$0 – $500,000

1.10%

0%

1.10%

$500,001 – $ $1,500,001 – $ $3,000,001+

1.28%

0.50%

1.78%

2.75%

0.50%

3.25%

3.00%

0.50%

3.50%

Questions to Consider Timeline of your purchase?

When is your lease done?

What is your primary goal in buying?

Cashflow, ability to make changes, investment, space, location etc.

Where are you looking?

How long do you plan to live there/own?

Have you reached out to any lenders? Do you have a good idea of what you can financially afford?

Are amenities a must?

How big? How many bedrooms?

Proximity to?

Are you looking for something where you have the potential to add value (remodel) or do you prefer turnkey Do you like to use Redfin or Zillow for personal searching or would you prefer I set up search criteria?

FINANCING OPTIONS

Denae Alley North Pacific Mortgage denae@npacificmortgage.com Garrett Frol: Evergreen Home Loans gfrol@evergreenhomeloans.com Ryan Niles: Cornerstone Home Lending RNiles@houseloan.com Ryan Lee: Cross Country Mortgage ryan.lee@myccmortgage.com Ask friends who have bought a home if they have a preferred lender

bear@realresidential.com 425.419.3103