Ready and Qualified to Buy their First Home

Both couples share a trait that is becoming rare these days: save before you buy and then buy less than what you could afford. Needless to say, it is a treat to negotiate a deal for buyers like that.

What and Where?

Having determined the basic minimum specifications — 3 bed, 2 bath, 1,500 sq ft, 2 stories, small yard — and what was comfortably affordable and with pre-approval in hand, we started the search online. To help in choosing the right Seattle eastside neighborhood I suggested that they imagine a work day and a weekend — getting up in the morning, commuting to work, taking a toddler to day care, taking a walk, doing errands, going out to dinner, having friends over, etc.

Old or New, the Prices are Down

Before setting off for the Highlands we looked at a home south of downtown Issaquah. Built in the early 80s, vacant and on the market for months, the best property feature was the size of the lot with a sizable, mature back yard. We decided that any offer would be at least $35,000 below the asking price; money needed to upgrade the kitchen, bathrooms and remove the popcorn ceilings.

To save gas we left one car in downtown Issaquah and drove across 1–90 at exit 18 and up Highland Drive. Over the course of two hours we saw the eight homes on our list and two more we came across by chance. Seven of the eight homes were priced between $480,000 and just below $500,000; only one was listed close to $525,000. Looking at the homes’ listing histories, it was clear that $500,000 had become the “high water mark” — five of the eight homes had once been listed over $500,000 before being reduced below that mark. The most extreme was a home that was reduced over the course of 140 days by 11.1%, from $540,000 to $480,000. The Zillow.com chart above illustrates the one-year price trend for Issaquah and the 98029 zip code which includes the Issaquah Highlands.

Keeping Count and Picking the Winner

Looking at several homes in short succession can become confusing. My method to keep them apart and memorable is to give each home a name, usually a distinctive feature. In our case, we named the three favorites “Stairs in the Back,” “Buy Three, get Four,” and “Secret Garden.”

In my opinion, Secret Garden is the clear winner. At $254.40 per square foot the least expensive, by location it is in the quietest neighborhood, yet closest to the Park & Ride. Built in 1999, it is the oldest of the three. But how else can you get such a beautiful garden with roses and clematis and enjoy your barbecue hidden from view by mature vegetation?

Looking for Alternatives

I searched the Northwest Multiple Listing Service website for homes in Redmond, Bellevue, Kirkland and Sammamish with matching criteria: built between 1999 and 2008, 3 or 4 bedrooms, up to 3 bathrooms, between 1,900 and 2,000 sq ft, 2-stories, minimum of 4,500 sq ft lot, and 2-car, attached garage. The result: zero.

Expanding the age of the homes back to 1995 made no difference. Eliminating the lot size specification entirely and reducing the required square footage to a minimum of 1,500 sq ft resulted in nine properties, three on the Redmond Ridge and six in Sammamish. The least expensive is a $424,950 Sammamish home with 1,550 square feet. However, languishing 138 days on the market and located deep in the heart of the Sammamish plateau it is a tough commute and perhaps not such a good deal.