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I thought it might be interesting to show you a few units each week that have found buyers. When a unit goes from active to pending (inspection), it means that the buyer and the seller have agreed on terms and they announce to the public that they are “under contract”. I’ve listed 3 different condos below that have gone under contract this week. Click the photos below if you want to see pictures, location, etc…
Unit #302 – 2200 Westlake
Unit #507 – Luxe Condos
Unit #7B – Washington Park Towers
So I attended Kennedy Wilson’s “How to Buy At Auction” seminar yesterday with a client of mine. I thought it was interesting to see the turnout. To me it looked like roughly 300-400 people which happen to fill up the room. It was pretty basic information. Most of the agenda covered what to bring when attending an auction and how to make sure you can make a successful bid.
The senior auctioneer also spent an substantial amount of time getting everyone comfortable with the bidding process. At one point, he held a mach auction for a 2 bedroom unit. It was pretty entertaining. Here are a few highlights if you are considering attending the auction to bid:
On one final note, Kennedy Wilson took 3-4 minutes to talk about the importance of using an agent when purchasing a unit. They spoke to advantages when it comes to viewing and choosing units, assisting in auction prep and adding value in understanding the complexities of purchase and sale paperwork.
I’m going to make an effort to highlight more townhomes on UCS. They meet the needs of many Seattle home buyers. In my experience, they always seem to be a perfect fit for someone that feels that a condo is too small and a home may be too big or simply unaffordable. Townhomes also are a good alternative for:
Townhomes often lead the market in design trends as well. Right now there is a big push for using sustainable materials, green energy, stone, bamboo, wide plank hard woods, steel and cable, floating staircases and modern exterior design.
Please forgive me while I rant. I received an offer this week on a listing that I have in Seattle. I will spare the details that should remain anonymous. In a nut-shell, when the offer came in, it literally should have been shredded and returned to the agent and the buyer who submitted it (via FedEx). There are unwritten rules in real estate that most of us abide by. In this particular situation one major rule of thumb was broken by the buyers agent. It involves an offer that is “contingent”.
The definition of contingent is: A term that refers to a real estate contract contingency that’s often used when a home buyer places a house under contract with the understanding that he must sell his current house before finalizing the new purchase.
This is obviously a very risky move for a seller. In the event the buyers home doesn’t close or that another potential buyer is worried about making an offer on a contingent property, the Seller will be out of luck. So, in general, I usually recommend that a seller would not accept a contingent offer. In this particular case the agent made it clear that the buyer “REALLY” liked the house. With that in mind, I made sure the buyer’s house was priced right and I told the buyer’s agent to go “ahead” and send there offer in.
That brings to me the reason why I told you I should have shredded the offer. When trying to buy a house contingent, most buyers agents recognize the detriment to a Seller in pulling their house off the market. Therefore, the offer comes in at full price or something very close. Thus, giving the sellers the confidence they need to move forward. In this case, the buyer and their agent did not use their brain. In face, they sent an offer that was close to 8% less than what my sellers were asking. When I read the offer, I almost fell out of my chair. It might not seem like that big of a deal to most of you, but to me, after 8 years of being in this business, I was quite surprised by the general incompetence of the agent and her buyer.
We sent the offer back at full price. Once again, if I were to do it over, I would have sent it back fully shredded and would ask that they waste time on someone else.
I’m off to meet a client/friend at Brix Condos this morning who is closing on her new unit this week. We are actually meeting today for her orientation. For each project the orientation is different. Some will cover just the basics, while others take you through a detailed process highlighting everything that would be pertinent to know as a new homeowner. What I have found as important during this process as a new buyer is to ask lots of questions. Here is list of the most important items to cover before moving in:
There are a number of other questions you should ask when going through the final stages of your home purchase, but this is a great start. Most new projects are doing a pretty thorough job in proving a large “buyers book” for you when you move in. It serves two purposes:
1. It gives you everything that is required legally.
2. A seller hopes it answers most of the questions that I’m encouraging you to ask 
.
Good luck on your new purchase and as always if you have questions, feel free to e-mail us at info@urbanimg.com
*Don’t buy a condo without reading this post* Buying new construction is tricky, put an expert list of questions on your side. You’ll be thankful that you did!
1. How many units have sold in the building?
This is important because it can reveal the “momentum” of a project. Don’t buy into the explanation of units “under” contract; ask them for the recorded sales!
2. When do you expect to sell out?
Every good developer has a projected sales number. Builders that fail to sell, have failed to plan!
3. May I see the units that are not listed on the MLS?
It has been studied that at a given time, only 5-8% of the available inventory is every marketed on the mls. It is often not what you see, but what they hide! Pay attention and ask questions about their remaining inventory.
4. Do you have a price sheet that I can review?
When you tour a site you’ll often see the sales agents with a clip board. That is their price sheets. They keep these pretty close to the vest. However, it never hurts to ask. Ask them to see it. Why not right? It is said that you can’t get what you don’t ask for. Right?!?
5. Are there any owners that would be willing to share their experience here at the building thus far?
People love to talk about things they are proud of. Especially when it was a good deal, or great service was rendered. Ask the sales agent if they know of anyone who purchased who would love to share their experience. Ask for 3 people or more. That way you are getting an un-biased view and not just an opinion from a person that would say great things about the project regardless if they liked it or not.
6. Would you explain the warranties that are included with my purchase?
There are a number of different warranties that come with a purchase. State mandated, Building, Developer, appliance and many others. It is important for you to find out what warranties are covered by the developer. If you know everything ahead of time, it will be that much better when you go to have the work handled.
7. Are there any rules that restrict my ability to lease my unit.
Life can change quickly. Some of us get married, deal with financial hardship, have to relocate and the list goes on and on. You should always find out what your limitations are with renting. It can be a devastating mistake when you “need” to rent and the project won’t allow it. These types of rules and regulations are found in your public offering statement (new construction) or re-sale certificate (re-sale unit).
8. Has a Home Owners Association been assigned? Will the building be professionally managed?
There is a certain time that the HOA is formed and turned over to the owners of a building. Dues are instated and the developer takes a huge step back in terms of responsibility. Ask when the HOA will be formed (how many sales until it is turned over?). Also, make sure that building is managed by a professional management company.
9. Do I trust the sales agent?
I think one of the biggest mistakes made by buyers is they rush into a purchase without a qualified professional. We don’t work on our own teeth, cut our own hair or fly a airplane without the help of others; so why do we insist on handling such a big purchase on our own?!? Treat real estate like you would your other professional service. It will pay off in the long run. (see my opinion here)
10. Will I love where I live?
Ask to see a map of the location. Can you walk to a grocery store, movie theater, great restaurant or to buy your medical prescription? If you can’t, make sure what you are buying suites the other needs in your life. As cheesy as it sounds location, location, location is the most important mantras in real estate.
Overwhelmed? Don’t be. Just learn from the questions provided and apply them to your research when buying a home. You’ll thank me for it!
As always, if you have any questions, feel free to e-mail me at jreynolds@urbanimg.com
A lack of transparency and a glut of uncertainty has been the death of high rise condominium sales in Bellevue/Seattle. I feel like we are in an intervention and we need to simply say ” I’m a (developer/banker) and I have a problem”. It is time for everyone to wake up and smell the proverbial coffee. Life is not rosy when you have not just months, but years of uncertainty in selling the rest of your inventory. The time is now. Bankers, investors and the development teams of these projects need to sit down and go back to square one.
The money that went into these projects is not coming out. We need to face the music and get to a price that will drive the market. Buyers are favoring “distressed” purchases. They want deep discounts or a perceived value that they are getting a lot for their dollar. At this point in time, there is just not enough demand for the condominium inventory. I’m talking to the big guys right now: Bellevue Towers, Washington Square, The Bravern, The Gallery, Escala, Olive 8 etc….There are two choices:
1. Negotiate with the lienholder and reduce pricing/dues
2. Continue on the path of bad press, little sales, litigation and disgruntled buyers.
I’m not trying to be the bad guy. I can sympathize with developers too, but the state that we are in is obvious. Auctions are not the right thing for most projects. We should get realistic, reward the buyers that have already purchased and incentivize the buyers that are on the fence. The banks have to participate too. When the price of these monsters come down, the demand will go up. With that comes excited buyers willing to share their story with co-workers, family and friends. Now is that not worth the intervention?
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