Olive 8 to offer price guarantee!?

I normally do not re-publish the press releases I get but this one is too special not to!

…I assume this only applies to new buyers and that previous purchasers will not have the same guarantee.

It will also be interesting to see if any other buildings follow suit. I know that Ted Schroth, Trace Lofts and Trace North developer, has said that he is able and going to be firm on prices and not undercut previous purchasers by dropping prices.

(Seattle, WA 2-13-08) New buyers at the Olive 8 luxury hotel/condominium will receive a guarantee that the price they pay for their home will be the lowest price offered. This is the first guarantee of its kind in this area by a condominium developer.

Seattle-based R.C. Hedreen Company, the developer and builder of the Olive 8 condominium/hotel, is on schedule to open the hotel portion in December of this year, with condo closings beginning shortly thereafter. They are so confident that the Olive 8 homes offer high quality and outstanding value in the marketplace, that they are prepared to back it up with a price guarantee to new buyers. The legal addendum to the purchase and sale agreement says that if the same floor-plan within Olive 8 ‘s remaining inventory sells for less than the current price prior to closing, the buyers who contracted for a higher price home will benefit at closing with the equivalent discount to their price.

David Thyer, president of R.C. Hedreen, says the Olive 8 homes are attracting a great deal of attention and interest, but “We recognize the housing market hesitancy and feel that this guarantee will help shore the confidence of those who are on-the-fence. Buying now offers the best selection and the assurance that they are getting a great value.”

The Hyatt at Olive 8 and the Olive 8 condominiums will be the first LEED-certified hotel/condominium building in the state of Washington.

Thyer says, “The green features add great value to these homes and that combined with the luxury of living above a first class hotel with its wealth of amenities gives us the confidence to offer this exceptional price guarantee.”

Thyer says the guarantee is an indicator of the company’s confidence in the Seattle economy and in the value of the Olive 8 property. Olive 8 is one of only a few new condominium buildings that will be completed in the next 12 months. With construction costs continuing to rise and expected to rise by 25% over the next couple of years, Thyer says buyers looking for high quality homes will almost certainly see higher prices ahead.

Olive 8 is well on its way to completion; the hotel floors have all been poured and condominium floors are being poured at the rate of one every seven days. The dynamic glass exterior is now approaching the condominium floors and the building is expected to top out in July. Hedreen’s most recent hotel is the Grand Hyatt Seattle, only one block away. Olive 8 will be the ”contemporary cousin” of the more “classic” Grand across the street.

Olive 8 features soaring 10 foot plus ceiling heights and when it opens in December it will be Seattle’s tallest residential condominium. The unique building materials and systems at Olive 8 promise a stunning landmark in the making.

About Matt

Matt , Urbnlivn's publisher, has a love for lofts with industrial features and new construction condos that is only eclipsed by his passion for outdoor sports and urban living. Phrases such as “polished concrete” and “exposed brick” are music to his ears. You can also find Matt on Twitter or skiing.

  • jo

    I wonder how much they’re going to discount each floor.

    Say someone buys a unit on floor 30 for 900,000, then two months later another person buys a unit, same floor plan, on floor 25 for 800,000.

    Of course floor 25 is going to be cheaper because it’s a lower floor. How do they exactly figure out what the equivalent price for a unit is on a lower floor?

  • jo

    I wonder how much they’re going to discount each floor.

    Say someone buys a unit on floor 30 for 900,000, then two months later another person buys a unit, same floor plan, on floor 25 for 800,000.

    Of course floor 25 is going to be cheaper because it’s a lower floor. How do they exactly figure out what the equivalent price for a unit is on a lower floor?

  • Matthew Warren

    Can anyone post the specific contract language? I’d be very interested.

  • Matthew Warren

    Can anyone post the specific contract language? I’d be very interested.

  • Dan C.

    I bet this is so full of weasel language you could never make it stick…

    Just one more sales tactic.

  • Dan C.

    I bet this is so full of weasel language you could never make it stick…

    Just one more sales tactic.

  • tomasyalba

    Hey! Come buy at Olive 8! If your value drops, we’ll join you in eating the difference, because we care!

  • tomasyalba

    Hey! Come buy at Olive 8! If your value drops, we’ll join you in eating the difference, because we care!

  • alex

    good marketing but i’m sure there are clauses in there. I’ve read several blogs and all have mention of this price guarantee. So big ups to them for coming up with something out of the box.
    But does anyone know what they have left? Normally dont all the cheaper ones go first? I’m guessing they have some of the mid-high end units left. It has to be the same floor plan as well. Do small tweaks in the floor plans make it so its not the same floor plan anymore? Are all the floor plans exactly the same from floor to floor? I’m sure they also have it figured out to a point where there are only so many left of certain floor plans to reduce the chance of having something like that happen where they have to lower the price.

    Good marketing though anyways.

  • alex

    good marketing but i’m sure there are clauses in there. I’ve read several blogs and all have mention of this price guarantee. So big ups to them for coming up with something out of the box.
    But does anyone know what they have left? Normally dont all the cheaper ones go first? I’m guessing they have some of the mid-high end units left. It has to be the same floor plan as well. Do small tweaks in the floor plans make it so its not the same floor plan anymore? Are all the floor plans exactly the same from floor to floor? I’m sure they also have it figured out to a point where there are only so many left of certain floor plans to reduce the chance of having something like that happen where they have to lower the price.

    Good marketing though anyways.

  • d

    the floor plate is the same all the way up, So the guarantee is pretty solid. I believe they will protect the buyer just like they say ( no, I dont work for them ) Ive had a great experience buying at this project, and on one occassion they actually refunded a nonrefundable upgrade payment to me since I changed my mind fairly qickly ( they could have easily kept the money, but didnt ). They are very “stand up” as far as developer/marketer in my opinion.

  • d

    the floor plate is the same all the way up, So the guarantee is pretty solid. I believe they will protect the buyer just like they say ( no, I dont work for them ) Ive had a great experience buying at this project, and on one occassion they actually refunded a nonrefundable upgrade payment to me since I changed my mind fairly qickly ( they could have easily kept the money, but didnt ). They are very “stand up” as far as developer/marketer in my opinion.

  • Dan C.

    WAIT A SECOND! CONDO PRICES IN SEATTLE COULD DROP!? SAY IT AIN’T SO!

    I thought that condos were the wave of the future and could never possibly lose value because every single baby boomer and young professional was going to live in one?

    MY REALTOR TOLD ME SO!

  • Dan C.

    WAIT A SECOND! CONDO PRICES IN SEATTLE COULD DROP!? SAY IT AIN’T SO!

    I thought that condos were the wave of the future and could never possibly lose value because every single baby boomer and young professional was going to live in one?

    MY REALTOR TOLD ME SO!

  • Affluent Bitter Renter

    “WAIT A SECOND! CONDO PRICES IN SEATTLE COULD DROP!? SAY IT AINT SO!”

    The Olive 8 management just wants to reassure buyers for the month or two of uncertainty we still will have in the Seattle market before condos resume their inevitable 20% price appreciation per year.

    It’s Always A Great Time To Buy!

  • Affluent Bitter Renter

    “WAIT A SECOND! CONDO PRICES IN SEATTLE COULD DROP!? SAY IT AIN’T SO!”

    The Olive 8 management just wants to reassure buyers for the month or two of uncertainty we still will have in the Seattle market before condos resume their inevitable 20% price appreciation per year.

    It’s Always A Great Time To Buy!

  • Chris

    The “construction prices are going up so prices will to” argument is garbage. If that happens, the construction will cease until value surpasses replacement cost again. Nothing is compelling people to live in new construction downtown highrises, so they are competing against substitutes like single family houses and existing condo stock. New construction will just look like a more expensive option relative to both if costs keep skyrocketing. ..and, looking forward and not out of the rearview window, that premise can be debated

  • Chris

    The “construction prices are going up so prices will to” argument is garbage. If that happens, the construction will cease until value surpasses replacement cost again. Nothing is compelling people to live in new construction downtown highrises, so they are competing against substitutes like single family houses and existing condo stock. New construction will just look like a more expensive option relative to both if costs keep skyrocketing. ..and, looking forward and not out of the rearview window, that premise can be debated

  • http://www.2200life.blogspot.com EconE

    Interesting.

    Sounds to me like they are more concerned with keeping the people who reserved units from running away from their deposits…you know…Florida style!

    From what I have read here I am under the impression that enough units have been sold already so that if all the reserved units “close” it will be a profitable venture.

    If I were the developer I wouldn’t even sell any of the remaining units. I’d just rent them out. That way I’d never have to pay one dime out to the people that closed on their units.

    Also…anyone aware of how many potential flippers are in the building?

    Oh…and speaking of people closing on their units…has anyone seen this article?

    http://www.cnbc.com/id/23110984

    Funny that Paulson says that we are just at the beginning of this whole mess…but I still get this overwhelming urge to buy a condo rather than rent for MUCH MUCH less.

    I guess I should go look at that Credit Suisse ARM reset chart.

    you know…this one…

    http://www.irvinehousingblog.com/wp-content/uploads/2007/03/reset.PNG

  • http://www.2200life.blogspot.com EconE

    Interesting.

    Sounds to me like they are more concerned with keeping the people who reserved units from running away from their deposits…you know…Florida style!

    From what I have read here I am under the impression that enough units have been sold already so that if all the reserved units “close” it will be a profitable venture.

    If I were the developer I wouldn’t even sell any of the remaining units. I’d just rent them out. That way I’d never have to pay one dime out to the people that closed on their units.

    Also…anyone aware of how many potential flippers are in the building?

    Oh…and speaking of people closing on their units…has anyone seen this article?

    http://www.cnbc.com/id/23110984

    Funny that Paulson says that we are just at the beginning of this whole mess…but I still get this overwhelming urge to buy a condo rather than rent for MUCH MUCH less.

    I guess I should go look at that Credit Suisse ARM reset chart.

    you know…this one…

    http://www.irvinehousingblog.com/wp-content/uploads/2007/03/reset.PNG

  • mike2

    How much flexibility does the developer have on timing the unit closings? It sounds like all they’d need to do is stagger the closings so lower priced units close last.

  • mike2

    How much flexibility does the developer have on timing the unit closings? It sounds like all they’d need to do is stagger the closings so lower priced units close last.

  • Eric K

    The guarantee allows Olive8 to sell a unit for less _after_ all of the pre-construction buyers have closed, since the guarantee evaporates after the closing of the pre-construction buyers.

    It just means that Olive8 won’t lower their prices until construction is complete and completed units have been sitting on the market.

    Apparently it only applies to new buyers — not existing deposit holders — but I think it reassures everyone that they’re not planning on dropping their prices in 2008. 2009/2010 is another story…

    I doubt they’ll rent out the unsold units — I just think they’ll wait until 2010 to unload them.

  • Eric K

    The guarantee allows Olive8 to sell a unit for less _after_ all of the pre-construction buyers have closed, since the guarantee evaporates after the closing of the pre-construction buyers.

    It just means that Olive8 won’t lower their prices until construction is complete and completed units have been sitting on the market.

    Apparently it only applies to new buyers — not existing deposit holders — but I think it reassures everyone that they’re not planning on dropping their prices in 2008. 2009/2010 is another story…

    I doubt they’ll rent out the unsold units — I just think they’ll wait until 2010 to unload them.

  • http://www.marblecleaningmiami.com Marble Polish West Palm Beach

    Thyer says the guarantee is an indicator of the company’s confidence in the Seattle economy and in the value of the Olive 8 property.

  • http://www.marblecleaningmiami.com Marble Polish West Palm Beach

    Thyer says the guarantee is an indicator of the company’s confidence in the Seattle economy and in the value of the Olive 8 property.