New Construction Homes in Seattle

Welcome to the premier destination for New Construction Homes in Seattle! Embrace the opportunity to explore a curated selection of the city’s latest and most innovative residential developments. Whether you’re seeking modern elegance, eco-friendly designs, or luxurious amenities, our website is your gateway to discovering the perfect new construction home tailored to your lifestyle.

Seattle’s skyline is constantly evolving, and so are its housing options. From sleek urban condos to spacious suburban estates, the possibilities are endless. Dive into our comprehensive listings to uncover a diverse range of properties, each boasting the latest in architectural trends and construction techniques.

With a booming real estate market and a city renowned for its innovation, investing in a new construction home in Seattle is not just a purchase; it’s a statement of forward-thinking living. Let us guide you through the exciting journey of finding your ideal new home in one of the Pacific Northwest’s most dynamic cities. Welcome to a world of modern living in Seattle!

Truth About Buying Construction Property in Seattle

If you’ve been looking at those beautiful new homes and just dreaming about moving into something that is ready to go, never been lived in, looks amazing in the photos, then you might be wondering which new construction development is right for you. In this article, I’m going to break down some of the pros and cons or reasons that many people love new construction and some of the warning signs about what you might be missing out on behind the glitz and glamour to make sure that you are making the smart choice.

New construction homes can be a beautiful fit for a lot of people and there are definitely some cases where they makes a lot of sense. One other reason that they’re so popular right now in today’s market is because home inventory is down. During Covid days, we have a lot of people sitting in homes longer enjoying a very low interest payment, and they are not choosing to move because that would mean giving up that low interest rate and moving into something more expensive.

Now, of course there are always people who are going to have to move, their family is growing, maybe they’re downsizing, maybe they have a new job, or they’re moving to be closer to family. People move all the time, but we’re just seeing fewer homes transacting in the market. What that means, is that it’s an opportunity for home builders, and new construction homes are making up a large percentage of overall sales right now. In some studies, I’ve seen as high as 30% of overall sales are going to new construction. That means that it is a very important and increasing part of overall home sale environment.

Builders Offer Incentives

Home builders invest significant time and money into preparing homes for sale, starting the process years in advance by acquiring land, obtaining permits, and developing properties. By the time a home is ready for sale, builders have already invested a substantial amount. They typically aim to make a profit of 20 to 30% of the home’s overall price.

However, builders also value consistency and keeping their projects moving. If homes are not selling as quickly as expected, perhaps due to market conditions like higher interest rates or decreased buying sentiment, builders may offer incentives to attract buyers. These incentives could include discounts or other perks to encourage sales. As your agent, I’ll explore these incentives on your behalf when we visit new construction properties.

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Builders often offer incentives on new construction homes, which typically come in a couple of forms:

  1. Interest Rate Reduction: Builders may reduce the interest rate on your loan, especially if you use their on-site lender with whom they have a business relationship. For example, I’m currently purchasing a property from DR Horton, a major builder, and they have offered to buy down my interest rate. As an investor, I’d normally pay a higher interest rate, around 7.5%, but they’re offering to lower it to 5.9% if I use their in-house lender. This significantly increases my cash flow as I can rent out the property for more than I’m paying on the mortgage.
  2. Closing Costs: Builders may also offer deals on closing costs. Traditionally, buyers and sellers split closing costs, which can include document stamps, recording fees, lender fees, appraisals, escrow company fees, and title insurance fees. However, builders often have special arrangements with title companies, allowing them to offer discounted rates. Additionally, they may provide a credit, such as a $1,500 credit, to make it easier for buyers to afford the property.

We recently closed on a new construction property, and the buyers couldn’t be happier. Their excitement reflects the satisfaction of finding their dream home in a rapidly evolving market.

One of their goals in a lot of cases, is to make homes affordable and approachable for first-time home buyers who have squeezed all the money that they could just to get their 3% or 5% down payment or even a 0% down payment if it’s a VA loan and they may not have thousands of additional dollars to put toward all of these other costs, so they’re trying to make it easy for you to get in the door and that’s why helping with financing and helping with closing costs can be really helpful.

Discount on the Price

One additional option to consider is negotiating a discount on the price, although this can be more challenging. Builders are often hesitant to lower prices as it can affect sales in the entire development. Typically, new developments consist of multiple phases, with properties starting at lower prices and gradually increasing over time as sales progress. The aim is to find the maximum price the market will bear while maintaining quick sales. However, reducing prices can upset buyers who have already purchased homes and can affect future appraisal values.

If you do notice prices starting to decrease or discounts being offered, it’s usually for a limited time frame, often just one or two weeks. You must act quickly to take advantage of these discounts, as they are typically short-lived, and the deal may expire if not acted upon promptly.

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In competitive real estate markets, where homes sell quickly with multiple offers, homebuyers may face uncertainty about securing their desired property. Often, developments offer various floor plans catering to different needs, but if a particular plan is popular, buyers may find themselves on a waitlist. This can lead to rushed decisions, waiting periods of weeks or months, and increased stress for buyers.

Moreover, new construction homes often come with escalating prices over time, with builders adding upgrades and values continuously rising. This can make decision-making challenging and may lead buyers to feel that the initial deal is no longer as attractive as they first thought. Additionally, the flexible buildout schedules of new construction homes can be disrupted by supply chain issues, contractor delays, and weather conditions, leading to uncertainty about move-in dates and potential stress for buyers trying to coordinate other housing arrangements.

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It’s very important when you’re evaluating new construction property to bring your agent with you. Number one: you need to bring them with you to the site the first time you visit. Don’t be tempted to just pop in when you see those cute pink flags as you’re driving around the neighborhood.

Ensure you bring your real estate agent when registering on a property site. If you don’t, you risk being unrepresented in the transaction, leaving only the builder’s salesperson to advocate for their interests, not yours. While some fear being inundated with calls, you can avoid this by providing your agent’s contact details. It’s crucial to have someone on your side in this competitive market to navigate the process effectively and ethically. Otherwise, you might inadvertently sideline the agent who’s been supporting your search, leading to frustration for all parties involved.

Your real estate agent plays a crucial role in protecting your interests throughout the home buying process, especially when dealing with builders’ contracts. Unlike standard contracts used in real estate transactions, builders often employ their own legal teams to draft contracts that heavily favor them. Without your agent’s guidance, you risk missing out on vital protections, such as financing contingencies. Recent incidents highlight the importance of having someone who understands the nuances of these contracts; otherwise, you could find yourself in a complicated and potentially costly situation. From navigating financing issues to handling delays in construction, having a knowledgeable agent by your side ensures you’re equipped to deal with any challenges that may arise, safeguarding your investment and peace of mind.

Private Inspection Is Essential!

Ensuring a thorough inspection of the property is crucial for buyers, as it’s not always standard in the contract. While builders typically offer a home orientation to familiarize buyers with basic features, having a private inspection is essential to evaluate the quality of construction and materials used. A meticulous inspector can identify potential issues, such as water damage, roofing problems, or improper installations, and provide documentation to guide discussions with the builder for necessary remedies before closing. With a detailed inspection report, buyers can make informed decisions about the property’s condition and negotiate repairs or credits as needed, ensuring that their investment is protected and their new home is built to the highest standards.

In addition to a thorough inspection, buyers should carefully review the warranty provided by the builder. In Washington State, builders are required to provide a warranty, but its strength and duration can vary. Buyers need to understand what the warranty covers and for how long, as well as the procedures for addressing any issues that may arise after the sale. This includes common post-construction problems such as settling cracks or mechanical issues with HVAC systems. By clarifying responsibilities and procedures upfront, buyers can have peace of mind knowing that their new home is covered and any future issues will be promptly addressed by the builder.

The Importance Of Model Homes

Builders vary in their presentation of model homes, some showcasing fully furnished and landscaped spaces akin to an Instagram feed, but what’s actually included in the property outlined in the contract may differ significantly. Questions about exterior features such as the presence of grass, fencing, or sprinkler systems, as well as interior amenities like blinds, security systems, and appliances, are crucial to clarify. Some builders may exclude major items like refrigerators or washer/dryers from the sale, potentially leading to unexpected expenses for the buyer. Having your own agent is essential to ensure you’re fully informed about what’s included in the property and avoid surprises down the line.

Visiting model homes allows buyers to visualize their future living space and get a sense of the builder’s quality and style. It’s an opportunity to see firsthand the finishes, fixtures, and layout options available, helping buyers make informed decisions and avoid surprises later on. Additionally, touring model homes can inspire ideas for personalizing the home to suit their preferences and lifestyle.

Location

let’s take a look at kind of you know the pros and cons now one of the biggest cons or challenges in the Seattle Market is actually finding new construction in a location and a price range that you’re you’re interested in if you’re kind of Imagining the giant Leave it to Beaver neighborhood the homeowner protected Homeowner Association protected look and feel you can find that but it’s typically smaller seven homes 10 homes 20 homes that type of development is relatively large for this area and it can be accomplished by buying two or three lots that are together and building them but we are so locked in on our land we just do not have these big acreages of land available to do sprawling developments unless you get out into the countryside so we can take you out into the countryside into Black Diamond into Arlington into some of these places that are more than an hour away from downtown Seattle and Bellevue and we can find you a beautiful home brand new in a suburb of your choice at a reasonable price but it’s going to be quite far away so I just want you to know that that is one of the tradeoffs and I really want you to if you especially if you see ads or anything for new construction look up the location and see how far of a drive that’s going to be from where you’re living right now or where you plan to be working if you’re relocating here.

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Spot Lots

Another option would be to look at either small developments like I said I’ve seen a lot in Bothell lately that are like five to seven houses something like that but we can also look for what they call spot Lots which is where they’ve just bought a lot and they’re building one home so I have a client who just sold uh about a quarter acre building lot in Kenmore and he sold it to a builder so he sold it for about 425,000 and the Builder is going to build a home there that’s going to sell for 1.5 million and so that’s great and it’s going to be a great deal for everybody they’re going to love it there are other $1.5 million homes in the area but around the lot is kind of farmer Dan on one side and kind of an older rental house on another side a couple of split levels like doing the flag lot thing over here so it’s not it doesn’t have the uniformity to the neighborhood that so many people really value it’s a little bit more of a mish mash and especially in locations where you can actually find a lot and buy it for cheap enough to build a home you can’t buy you can’t buy one that already has a $800,000 home scrape the home and build a million and a half dollar home because the economics don’t work so you’re typically buying these Lots in areas that are a little bit less nice a little bit more rural kind of those infill locations and you’re just going to have one nice new home but not necessarily surrounded by a similar product

Conclusion

Thank you for joining me on this journey through various aspects of the real estate world. Your commitment to learning and understanding is truly appreciated. Remember, I’m here to support you every step of the way, whether it’s answering questions, providing guidance, or offering resources. Don’t hesitate to reach out—I’m just a call, text, or website visit away. Let’s continue this conversation and work together to make your real estate dreams a reality. Until we connect again, take care and stay inspired!