Condo Purchase Post Mortem Analysis
In a recent post, we looked at three projects completed last year and how closely the developers delivered on what they promised. Nothing beats hearing first-hand experience from homeowners who actually bought into these condos. I interviewed three buyers and summarized their responses below.
Two of these homeowners were represented by me and one is an SCR reader for whom I worked on a different subsequent property. If buying a pre-sale condo as your primary residence is one of your New Year's resolutions, you may want to get some insights from some folks who preceded you in the Seattle condo market.
1.) What sold you on this condo?
Primarily the location but also the price per square foot and the particular unit available.
2.) How closely did the developer deliver (concept, compared to the rendering, architectural design, model unit versus your unit, overall finishes etc.)
Very accurate on the concept. Did not review a model unit but floor plan was pretty close to the actual.
3.) How was the overall buying process for you?
Unsatisfactory delays and poor communication by developer and developer's agent.
4.) Do you have any advice for first time new construction buyers?
Review the developer's track record and also the developer's agent. Negotiate upfront remedies for delays and/or be prepared for them.
1.) What sold you on this condo?
Proximity to the Olympic Sculpture Park. Far enough to be away from the downtown madness. Close enough to walk to work. Close to restaurants. Concrete & steel construction of the bldg. Price.
2.) How closely did the developer deliver (concept, compared to the rendering, architectural design, model unit versus your unit, overall finishes etc.)
Average.
3.) How was the overall buying process for you?
Painful and stressful.
4.) Do you have any advice for first time new construction buyers?
Always be represented by a Buyer's agent. The agents in the builder's sales office represents the builder, not the buyer. There should be a law or regulation preventing builder's sales people from signing up buyers without buyer's agents.
1.) What sold you on this condo?
When we first saw Lumen, we immediately loved the location, design, and structure of the building. We also liked how the building was a new concept and the design wasn’t like every other new condo building that was being built. It was also an added bonus that the Bill and Melinda Gates Foundation would be constructed across the street.
2.) How closely did the developer deliver (concept, compared to the rendering, architectural design, model unit versus your unit, overall finishes etc.)
The developer delivered the concept very similar to what was conveyed. However, if you wanted the exact concept, you had to add-on a lot of additional items to your unit before it was built. Some homeowners (like ourselves) did not add-on the additional items, and we are now completing the concept on our own because the prices were too expensive to what we thought we would be getting. So, it makes the process of completing your own concept a lot longer, but then you can get exactly what you want in your unit, and it isn’t a “cookie cutter” unit like many other units.
3.) How was the overall buying process for you?
The overall buying process was smooth, and we attribute that to Wendy always being in constant contact with us. With new construction, we were told that there are usually delays for when the building will finally be completed. So, the biggest problem was finally closing since it kept on being delayed. But, we did not have to move by a certain date, so we were not as affected by the delay in moving in as some other people were.
4.) Do you have any advice for first time new construction buyers?
Make sure you have open communication between your agent and the builder’s agent. Try to stay on top of the timeline of how the building is progressing if you know you have to move by a certain date. It might also be a good idea to do some research on the builder to see what else he/she has built and that might give you a good idea on how your new construction will turn out.
I think it is wise to always take the closing date for a new condo with a grain of salt. I always add 25% to home improvement estimates both in price and in time to be realistic. I don't think contractors or developers are necessarily being dishonest. They do seem to always take the best case scenario, though. It seems from your blog and info from local projects that the usual delay is about 3 months.
Posted by: dunno | Jan 9, 2008 8:04:15 PM