Nov. 11, 2006 - Under $200,000 on the Eastside

I'm going to breeze past the under $200,000 market on the Eastside.  When you can still buy a totally refurbished condo like the one above for $165,000 to $175,000, things, have not gotten too far out of control.  In fact, other than the three in Bellevue that we spoke about before that will either set a new standard for price or recede back to a reasonable increase over the last sales, the condo market is still moving at a reasonable pace and people are not priced out.

Best bets for a condo under $200,000 are in 98034, Juanita - Kingsgate - Totem Lake.  I saw a great 3 bedroom up around 138th and 100th for $249,000, a little over the benchmark set in this article, but worth mentioning.  The condo conversion above is in Kenmore.  There are a few in Redmond, Bothell and Woodinville and even one in Issaquah.

Because of the three overpriced one bedrooms in Bellevue, I would be careful to check the comps before making an offer.  Make sure you are not paying that 23% over the last sale price.  Keep it down to no more than 10% and preferably 5%, if you can.  I'm the first one to suggest to a seller that the price can be pushed, if they are the only game in town.  But you see what can happen when you push too far, and it doesn't appraise.  Not a happy scenario.

As long as sellers stay in a moderate straight line up increase mode, the under $200,000 market on the Eastside will hold its own.  No sign of weakness here, and still a few good buys.  I still think the best bet to hedge against market changes is the "ugly" one that you can improve upon.  I saw one in Bothell or Kenmore where the owner made all the wrong upgrades for optimum resale value.  Any condo that has some upgrades, but hasn't sucked out all of the equity yet, (like the one above) is always the better buy.

Update for tracking:  11/14/06 There are 20 condos for sale in the zip codes noted for "Eastside".  12 are one bedrooms: 4 in Kenmore, 3 in Bellevue, 2 in Kirkland, 2 in Redmond and 1 in Issaquah.  There are 8 two bedrooms: 4 in Kirkland 98034, 1 in Bellevue 98007, 1 in Kenmore, 1 in Bothell and 1 in Woodinville.