Condo sellers offer layoff guarantee
SEATTLE -- A new condo project in North Seattle is hoping to jump-start sales by offering their buyers a safety net: the builders promise to pay the buyer's mortgage if the buyer loses his job. And that's not all they're offering.
Thornton Place is a 5-acre, mixed-use development with 109 condo unit. It sits south of Northgate Mall near the Regal Cinema with IMAX screens, and a creek runs nearby.
"There are spaces where we'll sponsor farmers market," said real estate developer Stephen Holt.
But battered consumer confidence is prompting the builders to get creative with incentives.
"If a new buyer in our project buys a home and unfortunately gets laid off in the first year, we will pay for six months of their mortgage payments," said Jeffrey Cook, president of Stellar Holdings.
On top of the layoff protection, sellers are offering a price guarantee for new buyers who might see a similar condo sell later at a lower price.
"People have been very hesitant to pull the trigger on major purchases," said Cook.
Under the guarantee, buyers get 3 percent of their condo cost back to apply toward the purchase or mortgage interest. The guarantee runs through the end of the year.
In King County, closings are down by half since lat year. Queen Anne High School auctioned off unsold units Sunday to combat a slump in sales. And Cook is already feeling the pinch.
"We haven't sold any units yet," he said.
But the developers of Thornton Place aren't done dealing. They'll pay homeowner dues until July 2010, and provide free interior design consultation.
"We will subsidize the bus passes for both apartments and homeowners," said Holt.
And federal officials are pitching in, too, offering first-time buyers $8,000 worth of tax credit.
The developers of the North Seattle condo hope $22,000 worth of incentives is enough to light a fire under potential buyers.
The incentives offered at Thornton Place are a part of a spring special and expire on May 25.
Thornton Place is a 5-acre, mixed-use development with 109 condo unit. It sits south of Northgate Mall near the Regal Cinema with IMAX screens, and a creek runs nearby.
"There are spaces where we'll sponsor farmers market," said real estate developer Stephen Holt.
But battered consumer confidence is prompting the builders to get creative with incentives.
"If a new buyer in our project buys a home and unfortunately gets laid off in the first year, we will pay for six months of their mortgage payments," said Jeffrey Cook, president of Stellar Holdings.
On top of the layoff protection, sellers are offering a price guarantee for new buyers who might see a similar condo sell later at a lower price.
"People have been very hesitant to pull the trigger on major purchases," said Cook.
Under the guarantee, buyers get 3 percent of their condo cost back to apply toward the purchase or mortgage interest. The guarantee runs through the end of the year.
In King County, closings are down by half since lat year. Queen Anne High School auctioned off unsold units Sunday to combat a slump in sales. And Cook is already feeling the pinch.
"We haven't sold any units yet," he said.
But the developers of Thornton Place aren't done dealing. They'll pay homeowner dues until July 2010, and provide free interior design consultation.
"We will subsidize the bus passes for both apartments and homeowners," said Holt.
And federal officials are pitching in, too, offering first-time buyers $8,000 worth of tax credit.
The developers of the North Seattle condo hope $22,000 worth of incentives is enough to light a fire under potential buyers.
The incentives offered at Thornton Place are a part of a spring special and expire on May 25.