New Construction Condos Offering Big Incentives by Rebecca Carlson

With sales waning after the end of the homebuyer tax credit, new construction condos in downtown Seattle are pulling out all of the fanfare to get their units sold.    The most common offering is seller-paid closing costs of up to 3%.  The Gallery in Belltown is one such buildings offering this incentive for offers received by 10/31/10.  The Marselle is promoting their recent price reductions:  “JUST RELEASED/BELOW AUCTION PRICING”.  Most likely a response to the Olive 8 auction held a few weeks ago.

All of these great deals are fabulous for buyers, but what about the ‘average’ seller trying to compete in this market?  It’s tough.  Not only do you have to compete w/ these incentives, there are also still quite a few short sales in the Belltown area.  While short sales aren’t for everyone, you can get pretty good deals if you are willing to wait through the bank approval process.  But, the pricing on these units are certainly having an impact on the overall pricing of the neighborhood.  As a seller, it may take a little longer, but there are buyers out there.  In fact, 35 units sold in Belltown last month (see chart below) and there are currently 71 units pending; of the units sold, 1/2 were units in new construction buildings.  (with Escala leading the pack in sales)

Moral of the story?  There are some great deals right now on Belltown condos.  And, with interest rates around 4%, it’s an amazing time to buy!!  As a seller, price is the driver in this market, so make sure you are priced competitively. And, a little patience in this market might not hurt either!!

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Great bank-owned property of the week in Seattle by Rebecca Carlson

Lately, I’ve seen some pretty attractive bank-owned properties in Seattle.   In fact, with condos, there seems to be something for everyone – whether you are spending $200K or $1MM! 

This week’s bank-owned property is a beautiful condo in the Lumen building on Mercer Street.  It was originally bought for over $1.2MM, and is now listed for $845K.  It’s a 2-level, 3 bedroom condo with over 2,000 sqft.  With concrete floors and walls of windows, this condo won’t disappoint!  This is, of course, until you have to make your first HOA payment of $1700 –  Ouch!  Here’s more info on it:  Lumen Condo .

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Olive 8 Auction set for September 19th by Rebecca Carlson

Slow condo sales after the tax credit deadline have made new condo developments search for alternative ways to move inventory.  The Gallery on 2nd Ave. did this last year.  It was a great way to jump-start sales, and to reset their pricing based on the sales from the auction.  Now, the upscale Olive 8 is following suit.  This modern, green-built building features the Hyatt hotel on the lower levels and condos on floors 18-39. 

The auction is set for September 19th @ 1 p.m., with a ‘how to buy’ seminar on the 12th @ 1 p.m.  You are required to register ahead of time and must bring a $5K cashier’s check to the auction.  (they only take it if you are a successful bidder on one of the units The units are sold ‘as-is’, so it’s important to do your homework ahead of time – no inspection contingencies here!  The brochure entices you with extremely low prices, but it’s important to know there are minimum reserve prices the seller has set.

So, what’s the key to being successful at a condo auction? 

1. Know the market and what the going rate is for the various sizes of condos.  It’s easy to get sucked into the energy of an auction.  You don’t want to let your emotions get in the way of getting a good deal.
2. Visit the condos numerous times to feel comfortable with the lay-out, views, and systems.  Make sure you clearly identify the ones you are interested in and focus on those at the auction.
3. If you are considering a view condo, make sure to check out the city’s Planning and Development website to see if there are any building permits for new buildings that could block the view you are about to purchase!
4. Work with a Realtor who can advise you on market conditions as well and the purchase and sale agreement.  It doesn’t cost you anything, and you can have a valuable partner in the process.

See you there!

  Olive 8 Auction

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Getting the most out of Belltown Open Houses by Rebecca Carlson

There are a lot of great condo options in Belltown right now.  (no, I won’t put a gratuitous plug for my listing here!)  When you are planning to spend your Sunday afternoon hitting the open houses, make sure you plan accordingly.  Most buildings do not allow Realtors to post their Open House sign in the front.  (Bravo! to those buildings who allow it!)  This makes it very difficult to find open houses when you are ‘winging it’!  Make sure you check out your favorite website for the day’s open houses and print off your list.  Otherwise, there’s a strong likelihood that you’ll miss at least 1/2 of the ones open simply because the lack of signs outside.  

Here’s one website where you can find open houses: http://www.cbbain.com/Pages/InteractiveOpenHouse.aspx

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