The Pinnacle at Alki Announces Priority Presales Event on October 14th
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.
Above: The Pinnacle at Alki is aptly named for it is expected to establish a new standard of luxury for West Seattle and enjoys an enviable perch at the northernmost tip of the peninsula.
“Both buyers and brokers feel the pressure when a new home hits the market and dozens of prospective buyers flood the open house with offers and acceleration clauses that spike the price,” says Dave Janssens of Realogics Sotheby’s International Realty. “It’s hard to be excited about your next address when you don’t know if you’re going to be successful or if you are in control of what the final price is going to be – I think a lot of consumers are making compromises by paying more or accepting less than ideal solutions just to make a deal.”
To be sure, Seattle Times reports that “the median price of a single-family home in King County last month grew 16.1 percent from a year earlier, the most for any September since records began in 2000,” with over 10 percent increases in outlying counties including Snohomish, Pierce and Kitsap.
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.
Above: The panoramic vistas from The Pinnacle at Alki offer 200-degrees of city, bay and mountain views.
Janssens says 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.
Mansion Global recently explored the benefits of presales in the new development world, writing that early investment in a property often leads to a higher resale price and offers the opportunity to consider a number of available units in the pre-construction phase with the chance to customize once you’ve selected a home.
“It’s securing a place in line,” adds Janssens. “Reservations make it easier for the buyer and the listing broker to organize the interest and there’s typically price guidance as well, which offers the buyer some comfort with where the final product and pricing will come in using best estimates. And given this is a private, first right of opportunity, the seller will offer the home to the reservation holder first before it hits the market. This reduces the likelihood of multiple offers and price escalation while putting the control back in the hands of the consumer.”
Above: typical floor plans levels 2 through 4; C) 3 Bedroom / 2.5 Bathroom (Approx. 2,071-SF) & D) 3 Bedroom / 2.5 Bathroom (Approx. 1,978-SF)
Above: typical floor plans levels 5 and 6; A) 3 Bedroom / 2.5 Bathroom (Approx. 1,723-SF) & B) 3 Bedroom / 2.5 Bathroom (Approx. 1,735-SF
Above: eleven homes will be available for reservation at The Pinnacle at Alki this weekend.
Prospective buyers are encouraged to register for additional information at ThePinnacleatAlki.com and attend the design preview event being hosted in the Admiral Room at Salty’s on Alki Beach restaurant (1936 Harbor Ave SW in West Seattle) on October 14th at 1pm.