What is the definition of “new”?

Condominium buyers desiring to purchase in a new construction condominium often choose to do so in order to be the first owner in a never-lived-in home. One drawback is that the property may not be ready for occupancy as readily as a traditional resale property.

Condominium buyers desiring to purchase in a new construction condominium often choose to do so in order to be the first owner in a never-lived-in home. One drawback is that the property may not be ready for occupancy as readily as a traditional resale property. One, sometimes overlooked, option is to buy a property being “flipped” as a resale property that has never been lived in which, essentially, is “new”.

Most of the high rises under construction or near completion in downtown Bellevue do have rules about re-selling or renting within a certain timeframe from the purchase date. This is a very good restriction for the majority of homeowners as it keeps a new building from becoming, in essence, a rental building. If a complex has too many rentals, it becomes difficult for buyers to get mortgages to buy either a “new” unit or even a future resale. Also, if there is too much resale competition with unsold units from the developer, it may interfere with the developer being able to sell out the complex in a reasonable amount of time. 

There are, however, instances when a seller is allowed to immediately resell their unit due to a hardship situation or sometimes a “friends and family” agreement when they purchased. This can be a golden opportunity for the savvy buyer! How does this benefit you? Quite simply, as a matter of dollars and cents.

Although prices for new construction homes can change daily, a recent example within the past couple of months at Washington Square Condominiums showed a 16th floor 1BR resale home (never lived in) priced at $539,888 while the same home on the 18th floor (new construction) was priced at about $619,000.

Buyers won’t find these resales listed on the new construction site price list and need to contact their real estate advisor and specifically ask about such properties if they are interested. The usual reason that they are priced more competitively is that the sellers purchased at a lower price very early in the sales process and can now sell their properties for less than those still available from the developers.

So if you’re looking for a new construction home at a resale price, look beyond the sales centers and search for a “new” resale.

Anna Novikoff
ek Real Estate Group
www.condomaximums.com