We love new fancy houses and trying out new design elements. Being able to build luxury homes allows us to showcase our skills and try ideas we can't put into our multi family projects. It is fun to spend so much time designing different features in a home, and work with artisans to make your home pop! Some of the unique features on this home were our 3 dimensional honeycomb soap inlays, and our Shou Sugi Ban fireplace pictured below. On top of these design elements we always utilize custom lights manufactured here in Seattle, and large black framed windows to add more wow. Note the ipe hardwood floors in the shower as an extra bonus!

How did you find this deal and how did you negotiate it?

The home was on the MLS and had not sold. It was priced a little high, and as we approached day 30. I began negotiating the price. The listing agent dropped the price to what I offered to see if they could get more offers. We shortened our closing window and changed our offer to cash, and the seller accepted.

How did you finance this deal?

We purchased the original home cash. Once we obtained our building permits, we utilized construction financing from a local regional bank. We put between 15-20% of the total project cost down, and were financed the remainder.

How did you add value to the deal?

The property was in bad shape, as it had been someone's flip gone wrong. The home was originally a 2 bed 1 bath, 850 SQFT and was gutted, partially framed, and had minor electrical completed. The project did not make sense as a flip, but we saw the opportunity to start over and build a brand new house. We permitted the site for a new home using the foundation and utilities already onsite, and built a stunning new construction.

What was the outcome?

We bought the land for $499,000 and built a new home for approximately $675,000. We sold the property with multiple offers for $1,692,500. Both offers were non-contingent, and earnest money released to the seller. After sales expense we netted approximately $424,000 from the sale of this home, and invested approximately $235,000 into the project. The project took 21 months from close to close, and provided an ROI of roughly 180%.

Lessons learned? Challenges?

Whenever you take on a large construction project on a small lot, you have to be very mindful of neighbors. Although we always try and be upfront with neighbors about what is happening, when it will happen, and placate their concerns, you will still run into issues or miscommunications. It is best practice to gather all of the neighbors contact information, and try and communicate important items through email to establish a record.

More Photos and Listing can be seen here as well as a few below.