The meteoric rise in local property prices and the stresses associated with buying in today’s real estate market have been well articulated by the Seattle Times, which followed a home in West Seattle through listing to close, and proclaimed that millennials and some first-time buyers are “coming to grips with the reality that they simply can’t save up quickly enough to match the rise in home costs.” Though the market conditions may seem daunting to potential buyers, brokers say unit reservations and presales offer a much needed relief for those that can plan ahead.
Attollo Development recently broke ground on the Pinnacle at Alki, an 11-condominium project that will include one- to-three bedroom homes that range in size from 885 to 2,128 square feet with presale prices expected to start from below $900,000 to more than $2 million, with first occupancy by fall 2018. Priority presale reservations for the luxury condominium development overlooking the Duwamish Head are set to begin October 14th at 1pm in the Admiral Room at Salty’s on Alki Beach restaurant.
Condominium presales are an attractive alternative, especially for those that may own a current home already and need time to organize their transition. By identifying a new home early in a presales program, a buyer can typically invest just a 5-percent deposit to lock in a price but not need to close for another year or longer. This provides plenty runway to prepare a current residence for sale, organize financing and also ride up the additional equity gains as prices continue to rise. Furthermore, some developers are willing to accept reservations for future presales, which is essential a presale of a presale. In this scenario, a prospective buyer makes a fully refundable $5,000 deposit to open escrow on a new home that’s under development but not yet ready to finalize the specifications, product offering and pricing.