New Construction Condos

What You MUST Know if You Are Thinking of Purchasing a New Construction Condominium in Seattle

There are several new construction condominiums going up and selling in Seattle right now. Insignia by Bosa in the Denny Triangle, The Vic in Ballard, and Solo Lofts in Ballard, Luma in Firs Hill are just some of the ones worth mentioning. Is buying a new construction condo in Seattle different than buying an existing, previously owned one? Not surprisingly, the answer is YES! 

For once, you purchase from the builder / developer, not a previous owner. Also, you don’t get a resale certificate; instead, you get a “public offering statement”. Most importantly, the standard MLS contracts can be thrown out of the window as most builders require using contracts their attorneys drafted on their behalf. Any attorney will tell you that those contracts are builder oriented and developer focused.

IMPORTANT (many buyers miss this step): knowing what you’ve just read, would you want the same developer who is trying to get the best terms in selling a condo unit representing you in that same condo purchase? If you answered “NO”, know this: once you walk into a sales office and give them your name, you are generally no longer able to obtain your own representation and are stuck being “represented” by the person selling you the unit. Having professional representation doesn’t cost you a dime, contact a broker experienced in new construction BEFORE you go into a sales office to look at a model unit. Is new construction right for you? Read on……

With that said, new construction condominiums in Seattle are great in so many ways! They are modern, have well thought out floor plans & cool looking finishes…….. most importantly, they are brand new! That means a brand new awesome kitchen and bathroom you always wanted! It’s also great to be able to pick some of the finishes before you move in. You can even pick the floor, the stack, the floor plan, etc. Another benefit is not having to pay those special assessments older building often levy to pay for the old roof replacement or a complete envelope re-clad (which, by the way, the previous owners got to enjoy and now new owners are stuck paying for).

New construction condos are not for everyone, however, due to the complexity of the transaction as well as other factors. Not that those factors are always a bad thing, it’s just better to be prepared, know your options, and feel confident throughout the process. Often, you might have to wait as long as a year (or more) until you can move in, yet the deposit is due up front. Most of the time, the deposit is between 5% and 10% of the purchase price and is not refundable. For many, the fact that the building has no built-up reserves or no proven history of solid construction can also be a turn-off (nor does new always translate into quality). Some of the biggest questions come from the paperwork. Standard MLS contract (including supplements) is 5-15 pages long. New construction contracts with supplements can be as long as 150 pages. Many of the Governing Documents, budgets, and financials have not even been finalized making the analysis of what’s available even more critical. Moreover, the “elephant in the room” is financing. Many new construction condo developers make you waive a financing and an appraisal contingency, which might be okay if you are paying cash but may be a challenge if you actually are relying on a mortgage (keep in mind, very few lenders will actually commit to a loan at the time pre-sale contracts are due). Those are just some of the things an experienced New Construction Broker can help you with before you make a decision of purchasing new construction.

Our brokers have dealt with all types of condos, co-ops, and HOAs in Seattle, including new construction (yes, including Insignia). Schedule an appointment today and make sure you contact us BEFORE you visit a sales center to avoid having to be represented by the person representing the interest of the seller. John can walk you through all of the documentation, the pre-sale, the offer/negotiation/transaction details, the waiting period & what’s involved, closing, as well as post-closing walkthroughs and warranty claim submittals for any defects that come out after closing.