Buying a loft, condo, or townhouse in Downtown Tacoma is a bit different than buying condos in other cities. After 16 years of selling condos in Tacoma, I’m here to tell you my best advice on how to buy a loft, condo, or townhouse in Tacoma.
Why buying a condo in Tacoma is different
Washington State in general has a lot more liability for people who develop condo buildings (meaning it’s easier to sue developers and builders) which has resulted in fewer brand new condo towers being built. A lot of the buildings new buildings going up that folks think are condo buildings in Tacoma are actually apartments. Before the housing bubble burst in 2008 there was a huge wave of condo conversions in Tacoma. Basically people buying Tacoma apartment buildings or commercial buildings and converting them into condos and lofts. So the quality of the condos varies wildly. The type of financing you can use to buy the condos varies wildly. There are things like LIDs which involve money you HAVE TO PAY to the city that won’t be due for years after you buy.
That’s some nerdy stuff, but I point it out because condo buyers who are accustomed to markets like Portland or San Francisco are sometimes surprised by the lack of options or limited financing options of Tacoma condos- and those are the reasons why.
You’re going to need to work with a Tacoma condo specialist when you buy. Our condos, lofts, and townhomes are a bit different. Some of them are REALLY cool- but you want to make sure you don’t overpay and that you go in with your eyes open.
Note: One of the biggest mistakes condo buyers in Tacoma make is that they just start looking at condos. They don’t learn how the financing works, they don’t find a Tacoma buyers agent that has a track record in working on condos, and they don’t get pre-approved before falling in love with the loft of their destiny. Do your research, find an awesome agent, and get clear on what kinds of lofts, condos, or townhomes your financing will allow- and THEN start your search!
Get educated
Condos and townhouses are deeded differently, and this means your bank will view them differently when giving you a loan. You can’t always tell just by looking at a place if it’s a condo or a townhouse. Sometimes the seller’s agent doesn’t have a lot of experience listing condos and townhouses and will label it incorrectly.
In Tacoma, knowling the difference between a condo and a townhouse is key. Watch this video to learn the difference:
Examples of condos in Tacoma would be The Esplanade, Sky Terrace, Thea’s Landing, 505 Broadway, The Ansonia, and The Dorothy. While City Steps look like townhomes, they are DEFINITELY deeded as condos!
Examples of townhomes in Tacoma would be The Triangle Townhomes, McCarver Village, and Element 20.
Loft buildings such as The Bridge, The Perkins Lofts, and Cliff Street Lofts are all technically condos.
Choose a local Tacoma buyers agent
If you’re buying a condo, loft, or townhome in Tacoma you really need to work with a local agent who has helped people buy and sell in these buildings before. Each community has their quirks and you want someone who has experience working with the HOA, getting resale certificates, and all that good stuff. Local agents with a proven track record can help match your financing to buildings where that will fly and help you choose buildings that have the amenities that you need.
There is a lot of complexity in real estate transactions in general, but condo deals are a true specialization and no two deals are ever the same. You need to know the person guiding you through the process has experience. If you don’t feel that way, save yourself the grief and keep looking till you find the right agent. It’s worth it.
Finding the right real estate agent makes the process of selling or buying a home in Tacoma a million times easier and more joyful. That said, a lot of folks aren’t sure what to look for when choosing an agent. Here are my tips and tricks for choosing the best real estate agent in Tacoma for you:
Get on the Same Page with your Tacoma Condo specialist
Go Over the Condo buying Process with your Tacoma real estate agent
Now that you have someone you like and trust who specializes in Tacoma lofts and condos- it’s time to learn how the process will go step by step. Meeting with your buyers agent in person in their office is time well spent. You can go over disclosures, (there are LOTS!), learn about buyers agency agreements, and how the contracts work.
In this video I made with my friend Anne- we talk about how to choose a condo in Tacoma. We go into how banks view condos and how the financing works, resale certificates, HOA’s and more!
The pertinent events in the process are:
- Mutual Acceptance: The day the contract is signed around completely by all parties.
- Dropping off or wiring the earnest money to Escrow: Usually within 48 hours of mutual acceptance.
- Condo Inspection– Negotiated, sometimes before the contract is signed, sometimes within 5-10 days of the contract being signed. Check with your agent- but don’t skip inspections on a condo. They are still important.
- Review The Title Report – In Tacoma the title report is usually available right away, once you receive it you typically have 5 days to look it over for problems or ask the title company any questions.
- Review the Home Owners’ Associations Documents – Usually you have 5 days to review this. Oftentimes the seller doesn’t order it until you have a signed around contract because it costs them money to order it for you- in this case your agent will need to stay on top of the seller’s agent to get this for you so you have time to review it and ask questions before closing.
- Appraisal – Depending on how busy the market is this usually happens after the home inspection, a couple weeks into the process.
- Final Loan Approval – Usually about a week or so before closing. It’s always exciting when they come early!
- Final Walkthrough – The Weekend Before Closing
- Signing Loan Paperwork– A Day or Two Before Closing
- Closing Day – You Get the Keys- the TIME that this happens is negotiated in the contract so make sure to ask your agent what TIME you get the keys on closing day! Sometimes you negotiate to give the sellers a few days to move before you get keys also- so just make sure that’s all clear to you up front! With condos and lofts you want to make sure you have ALL the keys. In addition to keys to your unit there may be keys to common areas, amenities, mailboxes, or a special fob for parking. Make sure you get everything!
The first time you buy a condo, loft, or townhome in Tacoma is both challenging and exciting- for sure the biggest piece of advice I have that will help make every step in this process easy and joyful is to find a Tacoma real estate agent who you TRUST who specializes in these kinds of transactions. Having access to a true local expert who has your back makes every obstacle and challenge easy to navigate.
Marguerite Martin is a Tacoma real estate agent and creator of MovetoTacoma.com. Marguerite helps Tacoma buyers find local real estate agents who specialize in the neighborhood and price range they’re seeking. If you’d like a recommendation for a Tacoma real estate agent who specializes in the neighborhood and condo type you’re looking for, contact Marguerite!
