What a pre-sale is
A pre-sale is the purchase of a home before it's finished. Builders use pre-sales to gauge demand and, often, to support project financing. For buyers, a pre-sale can mean early access to preferred homes, floor plans, or views, plus time to plan a move. The trade-off is uncertainty: you're committing to something you can't fully see yet, with a closing date that may be months or more away.
Reservations vs. purchase contracts
Pre-sale programs vary. Some start with a reservation or priority list, which may require a deposit and may or may not be refundable. Others begin directly with a binding purchase agreement. Before you put down any money, get clear, written answers to:
- Is this a reservation or a binding contract?
- How much is the deposit, and when is it due?
- Under what conditions is it refundable, and is it held in escrow?
- Are additional deposits due at later milestones?
Disclosures and your review period
For new condominiums, Washington law requires the developer to provide certain disclosures to buyers, and gives buyers specific rights to review them. Requirements depend on the type of community and the documents involved, so ask the builder exactly what you'll receive and when, and consider having a Washington real estate attorney walk you through them. Note any deadlines on your calendar the day you receive documents.
Timelines, delays, and changes
Construction schedules depend on permits, weather, labor, materials, and financing. Read how the contract handles delays: how long the builder can extend completion, whether you can cancel after a certain point, and what happens to your deposit. Also look for provisions allowing changes to plans, materials, or finishes, and how much notice you'd receive.
Financing a closing that's months away
Mortgage rates and your personal finances can change between signing and closing. Talk with a lender about your options, including extended rate locks and their costs, and how they'll re-verify income and credit before closing. If you plan to sell a current home, think about the timing of both transactions early. Builder-preferred lender incentives can be valuable, but compare the full terms with at least one other lender.
Questions to ask before you reserve
- What's the estimated completion date?
- How have the builder's past projects tracked to schedule?
- What are projected HOA dues?
- What's included vs. an upgrade?
- Can I assign or transfer the contract?
- Can I bring my own inspector?
- Who holds the deposit?
- What warranty is provided?
Next steps
A pre-sale can be a great way to get the home you want in a new building, as long as you go in with eyes open. Compare projects, read the documents, and bring your own representation from the start. For the bigger picture, see the new construction overview and the new construction townhome buying guide.
Considering a resale condo instead? These HOA questions on Bellevue Condo Living apply to established buildings.
This guide is general information, not legal, tax, or financial advice, and details can change. Information is deemed reliable but not guaranteed; please verify anything important for your situation.
Loomis Hamilton is a real estate broker with McConnell Group, helping buyers and sellers in Bellevue and across the Seattle Eastside. MLS ID WA 138027.
(425) 516-2041 · l.hamilton@mcconnellgroup.com · Contact page