Buyer Resources

The schuler team provides a full-service real estate experience

We offer you experience, reliability, and knowledge of the real estate market working together to help you meet your real estate goals. In working with buyers, we evaluate the specifications of the client's desires, take the time to research both active and off-market properties, preview homes for their clients, and help structure the most competitive offer on the table. We are expert negotiators, never leaving any of our clients’ dollars on the table, and fully represent our client's best interests throughout the entire transaction, well beyond getting into a mutual contract.

The Basics

One of the first things to consider once you decide to buy a home is what type of property will work best for you. The main property types in the Puget Sound area are single-family homes, condominiums, and townhomes. You can also purchase raw land to build a custom home. Ultimately, this decision matters most depending on what your use of the property will be. Is this your primary residence and do you have kids? Maybe a single-family home will give you the square footage and the green space you want. Is this going to be an investment unit that you rent out? Be careful if you are considering condos since high homeowners’ association dues and rental caps can be prohibitive. We will ensure you are taking into consideration what matters most to you, based on the goals you share.

The old mantra “location, location, location” still matters the most in your home hunt, and where you buy remains the number one factor that will increase or decrease your property’s value over time, as well as how happy you are with your purchase. Some things to consider when you are deciding on a city or neighborhood include your commute to work, schools in the area, walkability, public transit, green space, and views.

Lastly, consider how you are going to complete this transaction financially: you must take into consideration your earnest money, down payment, and mortgage. Additionally, you might need to account for monthly homeowners’ association dues, if you are considering “fixer-uppers,” how expensive the work will be, and if you are purchasing a rental property, if you want to be cash-neutral or cash-positive. It’s a good rule of thumb to get pre-approved by a lender as soon as you start house hunting, which will give you an idea of what price range you should be shopping in. We will walk you through each of the financial considerations with your home purchase.

Who Pays for What?

THE BUYER NORMALLY PAYS FOR

Down Payments Against Sales Price
Buyer’s Escrow Fee (according to the contract)
Lender’s Title Insurance Premium (ALTA)
Document Preparation (if applicable)
Prorated Taxes (from date of acquisition)
Prorated Homeowners Association Dues (from date of acquisition)
Recording Fees for all Documents in the Buyer’s Name
Notary Fees (if applicable)
Homeowners/Hazard Insurance Premium (for the first year)
Home Warranty (if paid by buyer, according to the contract)
Inspection Fees (according to the contract)
Beneficiary Statement Fee for Assuming Existing Loan (if applicable)
Loan Fees (as agreed with lender)
Interim Interest on New Loan (prorated from date of funding to first payment date)

THE Seller NORMALLY PAYS FOR

Seller’s Escrow Fee (according to the contract)
Work Orders, If Required by Lender or Agreed Between Parties (according to the contract)
Owner’s Title Insurance Premium
Real Estate Service Fees (according to the contract)
Payoff of all Encumbrances (loans) in Seller’s Name, or Existing Balance if Loan is Being Assumed
Prorated Taxes (prior to date of sale)
Interest Accrued by Lender (if applicable)
Prepayment Penalties (if applicable)
Any Judgments, Tax Liens, Assessments or Encumbrances Placed Against Property Title
Any Unpaid Homeowners Association Dues
Loan Fees Required by the Lender (based on loan types such as FHA or VA, according to the contract)
Home Warranty (according to the contract)
Recording Charges to Clear all Documents of Record Against the Seller
Excise Tax (determined by county and based on sale price)

  "
	Michele and her team helped us sell our house on Mercer Island. The house needed some renovation before it could be put on the market, and we were hoping to find someone to help with the whole process including design, bidding and supervising the contractor's work. Michele offered exactly that. The designer and contractor she recommended were top notch. With her help we were able to finish the renovation on time and within budget, and most importantly with minimum involvement from us. The listing timing was tricky because it was when the pandemic just hit, but with Michele's help the house was quickly sold. Overall we are very satisfied with Michele's service - thoughtful, experienced, and great communication. We could recommend her to anyone needing a Realtor. 

 / M.L. /

The Offer

There are many terms of an offer, with the significant items being the offer price and contingencies, through which you can give the seller confidence you will close on the home. Constructing a compelling offers is a priority for our buyers, and we will walk you through every step and recommendation as the offer is developed. Ultimately, submitting a strong, clean offer without leaving any money on the table is a great starting point in negotiations.

Price

What you offer on a property depends on a number of factors, such as the condition of the home, how long it has been on the market, the competition and the urgency of the seller to close. Though seemingly straightforward, a nuanced level of psychology must be used to determine the price you initially offer: while you don’t want to overpay for the property, if you offer a number too low and insult the seller, they might decide to not negotiate at all.

Contingencies

Contingencies are conditions the buyer can write into the purchase agreement that will allow the buyer to back out of the contract without losing one’s earnest money. These contingencies can end up making or breaking a deal, so sellers have to weigh the risks with contingencies written in an offer. A buyer can make their offer more attractive by having fewer contingencies, tighter time limits for included contingencies, or no contingencies.

The three most common contingencies used in a purchase agreement are the inspection, finance and appraisal contingencies. There are additional contingencies, such as the resale contingency or title contingency, which may be necessary to add depending on the circumstances.

Earnest Money

Typically buyers put down 1-5% of the purchase price as earnest, although you can technically put down any amount. This is the money the buyer forfeits if the deal falls through due to a breach of contract by the buyer. This is also the money that shows the good faith of the buyer, or how serious the buyer is, so generally a larger earnest money deposit looks more attractive to the seller. This money ends up being put toward your closing costs and/or down payment, but it is money that needs to be liquid when you get an offer accepted as it is due within two days of mutual acceptance.

Escalation Clause

In a highly competitive situation, it may be wise to include an escalation clause, which states that the buyer will increase their offer price incrementally to a maximum amount in order to beat a competing offer.

Personal Letter

A free way to personalize an offer is to include a letter to the seller. Often, a seller is leaving behind a house full of memories, and including a letter about yourself and why you love their home can help illustrate why you should be selected as the buyer. This can make a difference in getting an offer accepted, even beyond price in some cases!

Preapproval Letter

If you need to secure a loan for your home purchase, you’ll want to include a mortgage preapproval letter when you submit your offer. This is necessary to show the seller that your lender anticipates lending you the amount specified in the letter for your home purchase. If you are paying for the home with cash, you will want to submit a proof of funds instead of a prequalification letter.

The Closing Process

After entering into “mutual acceptance,” meaning both parties have agreed to the terms of the transaction, you start the closing process. Throughout this process, there are a lot of moving parts to dot the i’s and cross the t’s before closing day. Items to consider during closing, which the team will help guide you through, include: