Why are there so many $95-$150k condos for sale in one Woodinville apartment complex? (Seattle: foreclosed)

[usernametaken]

I am thinking of moving out of Bellevue due to skyrocketing apartment rents in the past several years. I keep reading that Woodinville is too pricey. However, there is one apartment community in Woodinville that seems to have sold 25 or so units in the past year, and always has at least 5 or so units for sale at any given time per Redfin, Zillow etc.... The price of these condos range from only $95k to $150k. I think some of the condos selling at the lower price range are short sales, but not necessarily all.

The condo community is called Timber Ridge condominiums, but they do not seem to have a website.

I visited the place and liked it (its right across a big shopping complex with Top Foods, Target, Barnes & Noble and much more), but am unsure about living in Woodinville so might want to rent out the condo within a year if I hate living there. It seems like there might be a rental cap at that community (i.e., you have to get on a waiting list to rent out your condo). If anyone knows much about this community, or rental caps at condo complexes in general, or short sales, please respond in this thread.

(It seems like there is also another complex nearby with similar pricing called Woodland Hills condominium homes. Just discovered it on Zillow. So maybe Woodinville has more reasonably priced condos than people think?)

[mkarch]

Originally Posted by usernametaken

I am thinking of moving out of Bellevue due to skyrocketing apartment rents in the past several years. I keep reading that Woodinville is too pricey. However, there is one apartment community in Woodinville that seems to have sold 25 or so units in the past year, and always has at least 5 or so units for sale at any given time per Redfin, Zillow etc.... The price of these condos range from only $95k to $150k. I think some of the condos selling at the lower price range are short sales, but not necessarily all.

The condo community is called Timber Ridge condominiums, but they do not seem to have a website.

I visited the place and liked it (its right across a big shopping complex with Top Foods, Target, Barnes & Noble and much more), but am unsure about living in Woodinville so might want to rent out the condo within a year if I hate living there. It seems like there might be a rental cap at that community (i.e., you have to get on a waiting list to rent out your condo). If anyone knows much about this community, or rental caps at condo complexes in general, or short sales, please respond in this thread.

(It seems like there is also another complex nearby with similar pricing called Woodland Hills condominium homes. Just discovered it on Zillow. So maybe Woodinville has more reasonably priced condos than people think?)

Timber Ridge was a 1980's apartment building converted to condos in 2006. The conversion was done very poorly and the association was mired in lawsuits with the developer for several years. Most of the units lost 70% of their value due to the litigation and were ineligible for any kind of bank financing. People that could not afford their bubble era loans or didn't want to owe $220K on a $70K condo bailed out like rats on a sinking ship. Prices have recovered quite a bit from the lows. If you check the sales records you'll find some that sold in the $35K range after the bubble pop. For a while, 2/1's were going for mid $60K's!! I briefly considered buying one for cash figuring at that price I could just wait out the litigation.

[ladderoflocus]

I wouldn't be surprised if the HOA fees were really high. I noticed a cluster of cheaper townhouses in a city in the Bay Area selling for $200ks where other townhouses were going for double that. The catch was the HOA monthly fee was ~$900!

[chlee007]

Seattle area...a place where you'll need 2 jobs to afford even a studio apartment.

[BellevueNative]

Originally Posted by chlee007

Seattle area...a place where you'll need 2 jobs to afford even a studio apartment.

What does this have to do with the OP?

[usernametaken]

Thanks mkarch! Very useful. I looked at the sales history of some and their initial prices were $200k ish. Will try to look around more this weekend. Wonder why they are still going at such reasonable prices if the lawsuits are over. HOA dues are not too high.

Originally Posted by mkarch

Timber Ridge was a 1980's apartment building converted to condos in 2006. The conversion was done very poorly and the association was mired in lawsuits with the developer for several years. Most of the units lost 70% of their value due to the litigation and were ineligible for any kind of bank financing. People that could not afford their bubble era loans or didn't want to owe $220K on a $70K condo bailed out like rats on a sinking ship. Prices have recovered quite a bit from the lows. If you check the sales records you'll find some that sold in the $35K range after the bubble pop. For a while, 2/1's were going for mid $60K's!! I briefly considered buying one for cash figuring at that price I could just wait out the litigation.

[Ira500]

Originally Posted by usernametaken

Thanks mkarch! Very useful. I looked at the sales history of some and their initial prices were $200k ish. Will try to look around more this weekend. Wonder why they are still going at such reasonable prices if the lawsuits are over. HOA dues are not too high.

Places get these reputations and people just associate certain complexes with lawsuits. Also be on the lookout for special assessments. Sometimes they are a lump sum, and sometimes a monthly payment. I don't know the specifics on the places in Woodinville, but sometimes the lawsuits are over and it is settled, but the HOA does not get everything it was suing for, and it still requires a special assessment from the owners. But if there's no special assessment, it's sometimes a good deal after the suit is settled but before everybody knows about it. I've seen that at other complexes, where it's taken a few years for the values to catch up.

[mkarch]

Originally Posted by usernametaken

Thanks mkarch! Very useful. I looked at the sales history of some and their initial prices were $200k ish. Will try to look around more this weekend. Wonder why they are still going at such reasonable prices if the lawsuits are over. HOA dues are not too high.

Here's my guess - like Ira said, the building now has a reputation that will hang around for a while. Because this was a bubble era conversion there are still A LOT of underwater owners in the property. Many of whom I'm guessing have moved out and rented their units so it's unlikely the # of rentals will decrease to more reasonable levels any time soon. The building is not FHA approved and may have some other lender restrictions on it due to the unusually high # of rentals.

The other side of this is the original (2006) owners that still own units have been through financial hell. They've had assessments, a huge loss of net worth and probably have little desire to fund the HOA going forward after being bled dry the past 7 years. I haven't run the exact #'s but I would not be surprised if 1/3 or more of the units have been foreclosed or sold short. Few if anyone got out of that building without taking a huge loss or having their credit ruined. Those that held on are probably not in much better shape and this does not bode well for keeping the HOA solvent.

If I were you, I'd carefully consider my exit strategy before buying one of these. Figure that if and when you decide to move, you will need to sell - and that might be before the building fully recovers from the mess it was in over the past few years.