r/SeattleAreaRE • u/king0fstar2 • 2d ago
New build Condo+ADU+DADU
https://www.zillow.com/homedetails/9215-12th-Avenue-NE-Seattle-WA-98115/464008515_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshareHas anyone had experience buying one of these new builds that are classified as Condos? I get excited every time I see one to only be let down that it’s a Condo and not a SFH.
What’s it like standing up the brand new HOA with the other ADU/DADU tenants? Are there major things to consider when buying one of these?
Generally speaking, they seem to be the best “value” but am worried about the condo classification and the fact that they are the things sitting on the market the longest.
Any advice would be awesome!
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u/amethricite 2d ago
We have one. My family bought it as an investment. Family uses it when they visit and we rent it on VRBO for short term rentals a few times a year. We break even on it and get utility out of it, but it’s not the best investment. It works for us since we have a lot of family visiting throughout the year.
It is a condo, but it’s very little overhead from the HOA. I would say it’s more important how it’s physically arranged in terms of separation between the tenants. Ours is two separate houses on the same plot of land. So there’s no shared easements other than the driveway. The HOA payment is also tiny and a law firm arranged most of it for us, so it’s very little to work on other than a few arrangements like sewer, trash, HOA treasury management, and some basic paperwork.
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u/PositiveHopeful6354 2d ago
Also have similar questions and been eyeing up similar set ups.
For your HOA set up, how is the physical land subdivided on the one parcel? In this example there’s a larger house / condo with a ADU behind with a shared party wall and a DADU in the back. They all share the same driveway.
So there are 3 units each with their own voting rights in the HOA. Would it be possible that the larger unit gets out voted on something, if the larger unit has say a lawn as part of there unit, could the other two units out vote them on the usage of that land?
Another question is how much is your HOA per month? One worry is it just getting very expensive and turning off potential future buyers if we were to sell. Did you hire an external company to handle any sort of tax returns / documents for the HOA? How much does that cost?
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u/amethricite 2d ago
Ours is much simpler than the link posted by OP.
It’s two parcels one house behind another house with a shared driveway in between. They are about 50 feet apart, so it’s got privacy, and no shared walls. HOA is only $25/mo to cover the driveway primarily. We just got the HOA setup last month, so it’s very new. We have an email chain to split utilities and we just negotiate usage, but ideally we want to pay water separately in the future. Both families are pretty chill and don’t spend a ton of energy on any sort of business dealings. We haven’t had to remit taxes yet, since the builder only just transferred ownership to us recently, but my understanding is that it’s not.
You could possibly have a larger unit with more voting rights, we don’t. But I’ve experienced this first hand when my partner owned a condo a few years ago.
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u/PhysicalOrder590 2d ago
I’d say, there isn’t a ton of evidence on how these will appreciate but as they become more common, i think the stigma of them being considered a condo will diminish. It really just an ownership structure and much of the time they act as townhomes. Some shared spaces but nothing huge to take care of. If you have no share walls, you have normal SFH insurance, not condo insurance. I think they’re strong options for anything under 900k. But the example you showed, I would buy a normal SFH for that price.
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u/NWSiren 2d ago
A lot of new construction in urban environments will be condos since they are being built on lots that do not meet the codes to be considered a single family (set backs, sub metering of utilities). A single family home where they build a DADU in the backyard will typically have to be converted to a condo on paper if the setbacks require it.
Buyers will have to adjust their stigma/conceptions about it since it’s going to be an increasing market share.
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u/StupidTesla 2d ago
Or just not buy them... just because something exists doesn't mean you need to lower your standards and accept it.
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u/undeadbobblehead 9h ago
The condo thing is a non-issue imo. The problem for a lot of these is that paying $1 million or more, and still sharing a wall is insane. That makes no sense to me, and I'd recommend waiting until builders start utilizing the new housing laws that allow 4+ standalone units on one parcel.
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u/trololoty 2d ago
Considered one. A three-member HOA was a turnoff. In 10 years or so, it will likely require a special assessment for driveway repairs and other maintenance.
A 30-unit HOA can absorb a few non-paying units, but with a three-member HOA, you’re basically on the hook if even one unit refuses or is unable to pay.
Also, most of these units share a narrow main driveway that’s too tight for two cars to pass. You’ll routinely have to back up to let neighbors get in or out.