What’s a typical building delay?

A reader asks:

I was just wondering if you have any statistics, or just general knowledge about building delays. I bought a unit at Veer, and am trying to figure out when I want to get a rate lock for my mortgage. The rate lock offered expires after 12 months, and Veer is slated for completion in August (9 months). I think 2200 is the only other Vulcan project that has been completed, and I’m not sure if it was delayed at all. Do you think a 3 month buffer is reasonably safe?

Sadly I haven’t been tracking building delays (or the difference between first announced opening and the actual close date.) One of these rainy days I might dig into the statistics but in the meantime what would you recommend?

I imagine one strategy would be to lock with one mortgage vendor today and then lock with a different one six months from now. Locks really aren’t that expensive.

Bonus link: For Seattle landlords, ’07 is sweet

About Matt

Matt , Urbnlivn's publisher, has a love for lofts, floating homes and mid-century moderns.

For years Matt resisted becoming a real estate agent preferring to be an executive in the startup world but he recently caved in the spring of 2014 and became an agent.

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  • http://seattle.redfin.com/ Donald DeSantis

    2200 had a pretty long delay, if memory serves. It seems like every building has been delayed 3 to 6 months over the past couple of years. I think that Trace was an exception (one month delay, right?). Before people go nuts on this time window: this is a VERY unscientific, off the cuff estimate. Hard data is encouraged.

    Don’t be shy of locking your rate. Rates are good right now. Just be sure to provide enough headroom on the term. I would suggest a 12 month lock at the shortest.

  • http://seattle.redfin.com/ Donald DeSantis

    2200 had a pretty long delay, if memory serves. It seems like every building has been delayed 3 to 6 months over the past couple of years. I think that Trace was an exception (one month delay, right?). Before people go nuts on this time window: this is a VERY unscientific, off the cuff estimate. Hard data is encouraged.

    Don’t be shy of locking your rate. Rates are good right now. Just be sure to provide enough headroom on the term. I would suggest a 12 month lock at the shortest.

  • Anonymous

    I was in the Veer lottery but decided not to buy after two delays (and rising prices). At one point the Veer folks were advertising availability by Fall 2007…that slipped to December 2007…then Spring 2008…now it’s August 2008? There are lots of variables in new construction…conceivably the window of error on timing would shrink as a building advances toward completion. Also, developers have different track records of delivering on-time. Wishing you good luck!

  • Anonymous

    I was in the Veer lottery but decided not to buy after two delays (and rising prices). At one point the Veer folks were advertising availability by Fall 2007…that slipped to December 2007…then Spring 2008…now it’s August 2008? There are lots of variables in new construction…conceivably the window of error on timing would shrink as a building advances toward completion. Also, developers have different track records of delivering on-time. Wishing you good luck!

  • Rachel

    Trace was actually only delayed 17 days from the Purchase and Sale said…delayed from August 31st to September 17th.

  • Rachel

    Trace was actually only delayed 17 days from the Purchase and Sale said…delayed from August 31st to September 17th.

  • jo

    my olive8 closing dates have been:

    july 2008 -> december 2008 -> april 2009

    im actually pleased about the later closing dates

  • jo

    my olive8 closing dates have been:

    july 2008 -> december 2008 -> april 2009

    im actually pleased about the later closing dates

  • jcricket

    I am not an economist, but it seems like rates are going to hover at/near the 2-year low for the foreseeable future.

    The Fed’s gonna cut rates in a little while, and then probably again as the full ramifications of the housing slump actually hit the market (what we are feeling now are just pre-tremors).

    I don’t expect 4% 30-year fixeds or anything, but there’s probably nothing to freak out about it you don’t mind waiting a little bit before you lock.

  • jcricket

    I am not an economist, but it seems like rates are going to hover at/near the 2-year low for the foreseeable future.

    The Fed’s gonna cut rates in a little while, and then probably again as the full ramifications of the housing slump actually hit the market (what we are feeling now are just pre-tremors).

    I don’t expect 4% 30-year fixeds or anything, but there’s probably nothing to freak out about it you don’t mind waiting a little bit before you lock.

  • christiangustafson

    Yes, be patient, rates will continue to descend. The problem is, it’s because we are headed into a deflationary depression. It’s an open question whether there will even be anyone there to lend you money for your condo.

    Plus, when you see the horrors that are unfolding — Citibank GONE, WaMu GONE, CountryWide GONE — closing on your Veer condo will be about the last thing on your list. Yes, I’m serious.

    I’m curious, what are the terms of the mortgage you want? 20% down, 30-year fixed, right? Right?

  • christiangustafson

    Yes, be patient, rates will continue to descend. The problem is, it’s because we are headed into a deflationary depression. It’s an open question whether there will even be anyone there to lend you money for your condo.

    Plus, when you see the horrors that are unfolding — Citibank GONE, WaMu GONE, CountryWide GONE — closing on your Veer condo will be about the last thing on your list. Yes, I’m serious.

    I’m curious, what are the terms of the mortgage you want? 20% down, 30-year fixed, right? Right?

  • Alex

    I also bought at Veer, and I haven’t heard any updates on completion, so any info is good to have. I was just wondering when you heard it was August 2008 and who told you?

    I also don’t really mind a little delay, gives me more time to save for the down payment and closing costs.

    Thanks!

  • Alex

    I also bought at Veer, and I haven’t heard any updates on completion, so any info is good to have. I was just wondering when you heard it was August 2008 and who told you?

    I also don’t really mind a little delay, gives me more time to save for the down payment and closing costs.

    Thanks!

  • James

    I heard Veer was having an August 2008 completion date a few months ago at a Veer event during the summer. We were told that they were on schedule, if not slightly ahead of plan for an August 2008 opening.

  • James

    I heard Veer was having an August 2008 completion date a few months ago at a Veer event during the summer. We were told that they were on schedule, if not slightly ahead of plan for an August 2008 opening.

  • http://www.kellynutt.com Kelly Nutt

    I was just at the Discovery Center last Thursday for a presentation, and they mentioned they were expecting to be completed late summer of 08, probably August. If you really want the best answer, just contact the Discovery Center and ask one of the Sales representatives. While you are at it, you can ride the new Street Car for free for the whole month of December!

  • http://www.kellynutt.com Kelly Nutt

    I was just at the Discovery Center last Thursday for a presentation, and they mentioned they were expecting to be completed late summer of 08, probably August. If you really want the best answer, just contact the Discovery Center and ask one of the Sales representatives. While you are at it, you can ride the new Street Car for free for the whole month of December!