SPOKANE, Wash. — We’ve seen how COVID-19 has changed almost everything this year, but that doesn’t apply to the housing market. Homes are selling at record prices across Spokane and really across the entire U.S.
One Spokane family was in a bid with about five others for their “dream home”, just to find out they did not get it. That’s a harsh reality many buyers are facing right now.
“This time it was like get the offer in… people are fighting and raising the bid,” Lydia Coski said.
Lydia and her husband offered about $15,000 more than the asking price for their dream home, but they ended up empty handed.
“It’s frustrating to see houses you like, and then, not be able to get what you want,” Coski said.
That’s how most buyers feel right now. The Spokane Association of Realtors said the average sale of a home is about $310,000 right now. That’s up about 7 percent from this time last year.
The Coskis found a new home eventually, but it didn’t come without a little bit of doubt.
“It’s kind of like, did we want that?” Coski said. “I don’t know that’s a lot of money to be putting in, but then you just kind of feel that pressure to move forward, because you don’t know if you’re going to get another chance at something else.”
They now get the chance to be on the other end of this as they prepare to sell their old home. It likely won’t take long since inventory for homes is so low right now.
“We have a whole lot of buyers on the market and not enough sellers or not enough houses on the market,” local Realtor Alyssa Curnutt said.
There are about 700 homes available in Spokane right now, and that’s considered enough inventory for one month.
“A month of inventory is not a lot,” Tom Clark of the Spokane Association of Realtors said. “A balanced market is 3-6 months of inventory.”
So, why are there not many homes available? Part of it is people coming in from heavily populated cities, like Seattle, Portland or parts of California.
“They’re coming in with cash, and seeing what you can get for $400,000, $500,000 here compared to there,” Curnutt said.
Just about every type of home is selling quickly in Spokane right now. If you’re looking to buy one, there’s just one piece of advice: stay patient.
“I always tell (my buyers) that we will find one, and when we find one, you’ll be so thankful that other one didn’t workout,” Curnutt said.
Overall, home sales are down about 7 percent in Spokane this year, but realtors said that goes back to the lack of inventory. Realtors do not expect the market to change anytime soon and it should continue to surge.
Click here to download full PDF: Gardner Report Q4, 2019_Eastern Washington PDF
Mortgage rates are dropping, but what is the cause? Windermere’s Chief Economist, Matthew Gardner, dives into that question and also what we can expect mortgage rates to do the rest of 2019 and into 2020.
So your offer has been accepted, you have gone through the inspection, and the appraisal came in at-value. You’re just a signing away from homeownership. Oh, and something your real estate agent calls a “final walkthrough.” Let’s dive into what a final walk-through is, when it’s done and the most common issues that crop up during them.
First of all, the final walk-through takes place a few days before your signing. Think of it as your final chance to point out any issues before closing: because good luck getting a seller to do something after the fact.
Here are the most common issues and what to look for during your final walk:
Make sure the house is clean
This is typically a condition in offers. It says: seller shall clean the interiors of any structure and remove all trash, debris and rubbish. So if you’re selling, sweep and vacuum! If you’re buying, make sure you’re being realistic and don’t expect a spotless home. That’s usually your job once you move in. sometimes sellers will leave old paint cans to be helpful, but if you want them gone, now’s the time to say so.
Make sure agreed-upon repairs are made
Next, check to be sure any agreed-upon repairs were done. Sometimes the seller just forgot to do them…or hoped you would forget! As an agent I always ask for receipts for work that needed to be done by a professional about a week before closing. If it’s caught at the final walkthrough, it’s likely going to cause a delay in you getting house keys. If it’s a simple repair that the homeowner could do themselves—like replacing a faucet or adding carbon monoxide detectors- ask for a photo of the work to prevent any surprises.
Make sure items are still there
Make sure the seller hasn’t removed anything they agreed to leave…and that there aren’t any secret swaps for lesser quality items. If it happens, it’s typically with the washer, dryer, or refrigerator. Sellers: always read the contract or ask your agent before removing personal property. Buyers: check it all out at the walkthrough!
Make sure there’s no damage
The last issue is damage from moving, so check the walls for massive knicks from moving a huge dresser or 15 holes from where a mounted TV used to hang. Sellers, you can take the TV and mount if it wasn’t in the contract, but you have to patch the wall and paint. Don’t leave it looking like a shooting range target.
Most walk-throughs have no problems at all, and if they do, they’re easily fixed. If you do find a problem, typically closing will be delayed until the issues are fixed. The other option is for the seller to give the buyer a concession. For instance, if the seller agreed to remove a bunch of firewood from the yard and it wasn’t done, they could give the buyer $150 toward closing costs to get it done. Both parties would have to agree on the amount and that this is an acceptable remedy.
A final walkthrough isn’t an inspection and it isn’t the time to start asking for things. The purpose is to make sure the house is in the same condition as when you first saw it, that any repairs you agreed upon have been made and that it’s cleaned up.
New construction or moving into an established home? On the surface, new and shiny seems like the obviously answer. New builds are – well – new! You can customize the cabinets, the floor plans, new appliances… it all sounds great. BUT is it really the best choice? Today we’ll dive into the differences between new construction and existing home purchases and why you might choose one over the other.
The average residential resale value in Spokane for last month was a little more than $245,000, while the average cost for new construction homes on less than an acre was almost $370,000. That’s about a $125,000 price difference. It really adds up once you start adding the cost of upgrades or any fees that result in changing the floor plan. Plus there is much more opportunity for some negotiating when you’re buying an existing property. That option isn’t really available with new construction: it is what it is. You also have to consider the cost of adding fencing, landscaping, grass, etc. to new construction. That can tack on an additional $10,000 – plus time and effort.
Everyone knows there’s more to homeownership than just the listing price, though: repairs and renovations add up! That’s one nice thing about new construction. They are unlikely to need big repairs for several years and if they do? It’s typically covered under warranty. Plus renovations are few and far between, because you can do all that customizing when you are building!
New builds can take six to nine months to complete. This could be a positive or a negative, depending on your situation. You have more time to gather a down payment and there’s less competition…but you’re waiting almost a year for your home to finish. Once you find a home to buy on the resale route, you can move-in in about 30-45 days.
New construction is typically happening where there’s a lot of land…and that’s usually where there is a long commute. You’ll likely be on the outskirts of town, which is a HUGE draw to many people, but an equally big downfall for many others.
So to wrap up, existing homes give buyers more flexibility in cost and location, and you can move into them a whole lot faster. However, with new construction homes you won’t have to deal with repairs for awhile, you are typically further from the hubbub of the city and there’s more time to stockpile your down payment. You just need to look at all the variables and determine what’s best for you and your family.
So you’re starting the house hunt – or at least entertaining the prospect – and you’ve heard step one is getting pre-approved. Today we’ll dive into what “pre-approval” means, why it’s important and the documents a lender will likely need to make it happen.
What is a pre-approval?
First of all, pre-approval is a mortgage amount that a lender is saying 1) he or she is confident you have the ability to make the necessary down payment of X amount and 2) you have an income that can sufficiently cover mortgage payments for the pre-approval amount. It’s not a commitment or a guarantee to loan you that amount of money. Why? Because it still has to go through underwriting once you have an accepted offer. It’s the lender saying: “I am 99% sure they can qualify just fine for this amount and I have gotten to this number by checking into their financials.”
What will the lender need from me?
What financials are they talking about? Well you’ll need to provide income information, such as: a couple months of pay stubs, tax returns and W-2s from the last two years, bonuses, child support, etc. The lender will also need to see your other assets like bank account statements or investments. And finally, he or she will need to check out your credit score. Those are the basics, but they may ask for other documents or information to get you pre-approved.
Why do I have to get pre-approved?
So why is it so important to get pre-approved? First of all, in a competitive seller’s market like we have today, offers aren’t getting the time of day if you don’t supply a pre-approval letter. It proves the ability to purchase the home from a financial standpoint AND that you have done due diligence of getting pre-approved – so you’re serious about this! Plus, do it for your own sake. There isn’t much worse than falling in love with a house, deciding to make an offer for $250,000, only to find out you can only get a loan for $240,000. You might know you have amazing credit or the ability to make a large down payment, but it is so important to take this step early and make sure all your ducks are in a row.
Can’t I just get pre-qualified?
There is also a huge difference between getting pre-qualified and getting pre-approved. A quick 10 minute call with a lender, telling him or her that you “make X amount of money, can put Y amount down and your yearly expenses are Z” can get you pre-qualified. But that doesn’t hold very much weight with sellers. It’s more for your own information. Getting pre-approved will prove to be worthwhile.
How long does the process take?
The whole process of getting pre-approved can take about a week or two – depending on how long it takes you to get the documents together. So if you’re considering buying a home, get the process started early! It’s free, there’s no harm in it and the pre-approval will last for about three months.
If you’re looking for a lender to get started with, let me know. I have a couple tried-and-trues whose contact information I can gladly send your way. I promise they’ll help you out and make the whole process pretty painless!
So you’ve taken the big step and decided you’re ready to buy a house… now what? Today we’ll go through the steps of the buying process and what you can expect when buying a house.
Step one? You have to find an agent who you click with and who knows their stuff. First you’ll need to have a consultation with them. It’s a quick 30 to 45 minute meeting to go over your wants and needs for your new house. It’s a chance for you and the agent to get on the same page, you can ask them any questions you might have and they can get a better understanding of what your goals are and what’s important to you.
Next you need to get pre-approved. Your agent might have a preferred lender or a couple of lenders they’ve worked with and who are quite reliable. They can give you contact information for them, or if you have someone you’ve worked with in the past, feel free to use them as well! Don’t hesitate to contact a couple of lenders. You can chat with them, see who you’re most comfortable with and who you click with the most. Then you’ll work with them to get going on the pre-approval process. If you are able to get required documents to them quickly, they can likely get back to you in a day or two. However, it can take a whole lot longer if you drag your feet on getting them what they need: so make it happen soon! A lot of people say “I have great credit, I’m not worried about getting approved” or “I make good money. I know I can afford a payment of X.” That’s great, but more goes into it than that. Both credit and what you make are of course key factors, but lenders will go through all financials. Plus, GOOD lenders will chat with you about your comfort level of payment. Just because you can afford a $2,000/month payment, doesn’t mean that it won’t stretch you thin and cause a lot of stress in your life! Plus, pre-approval letters are requirements with offers (and some showings) in today’s market.
Now the fun part: looking at houses! A lot of buyers want to skip to this step, but it’s important you do the other two first and get your team set. Let’s be real: with social media and the internet, you’ve been looking at homes for much longer than when you contacted the agent or lender. But to physically get into those houses is a whole other story! I get it. I’ve had buyers who fall in love with the first house they see. They put in an offer and they get it! Then I’ve had buyers who have looked at 30 houses and it took 4 different offers until theirs was accepted. So this stage could go really fast or it could take awhile. It depends on your motivation level and what is out there.
From there on out, you put in an offer and once it gets accepted, you need to get an inspection and an appraisal. From the time you put in an offer on a house until it closes and it’s yours is typically anywhere between 30 and 45 days.
I’ve put together a handy packet that I give all of my potential buyers. It goes through this whole process with a bit more detail and expected timelines of each stage. If you’d like a copy, let me know and I can send one your way!
Once you decide to make the big step to purchase a new home, going inside prospective homes can really be an exciting time. However, it is important to make sure that you aren’t searching for a “Bigfoot.” I’m talking about that 100% perfect house, that checks every single one of your “wants,” and it’s at an amazing price. I’m here to tell you: it just doesn’t exist – unless you’re flexible. Here are some important things to keep in mind when starting the search to make sure you aren’t being unrealistic.
A lot of house hunting comes down to price. What kind of house does my budget afford? If you have been approved for a $250,000 mortgage, you can find a perfectly wonderful home. However, you will not find a home for $250,000 dollars that is 3,000 square feet, updated with gleaming hardwood floors throughout, brand-new stainless appliances, a huge backyard, new roof, air conditioning, and in one of Spokane’s most desirable neighborhoods. It’s just not going to happen. A big backyard and a minimum of 2,800 square feet might be non-negotiables for you – and that is completely doable. BUT it’s important to know that you will need to give a little in other areas to stick to your $250k budget. Perhaps the home is a little dated or the location might not be exactly where you ideally wish it were.
Stick to your budget
It might be easy to think: “oh, I’ll just go look at houses that are $300,000 and meet my criteria. That’s close enough!” But if you’ve been pre-approved for a $250,000 mortgage or that’s the price you’ve decided you are most comfortable at for monthly payments, you need to stick to that price range. You wouldn’t go test drive a 2019 Lamborghini when your budget only allows you to afford a Ford. I’m not knocking Fords! There are plenty of wonderful Fords, but don’t be testing out the Lamborghini’s or you’ll be bummed about the Ford. When you’re searching for your next home, it’s important to stay focused, and that includes being and staying within your realistic budget.
And finally, I suggest making a needs list and a wants list before you start searching. Needs are exactly that: non-negotiables; “I’m not buying the house unless it has X.” Needs tend to be things that are more difficult to change: location, square footage, lot size, whether there’s a basement or an attached garage, etc. Wants are “nice to have” items, but not deal-breakers: updated appliances, new carpet, number of bathrooms or bedrooms, landscaping, a pool. It’s okay to have a lot of items on your wants list, just don’t get too attached to them all and be willing to flex a little bit.
Buying a house takes time. And no house – even that perfect little rancher with the wrap-around porch and fenced-backyard that just came on the market yesterday! – is worth jumping into before you’re ready. Make sure you have all your ducks in a row, that you aren’t overextending yourself financially, and that your agent is on the same page as you…oh, and that you aren’t searching for a Bigfoot.
We’re revving up to head into winter in the Pacific Northwest. So today we’re checking out a couple winter activities around Spokane when you just need to get away (but not too far away) – besides just skiing and boarding!
What can warm you up better than a craft beer tour?! The Inland Northwest Ale Trail is a fun way to discover new, small batch beers from local craft breweries around town. There are almost 50 breweries on the handy Ale Trail map, so you can plan to hit up your favorites and some newbies! You can print off the Ale Trail map at inlandnwaletrail.com or pick one up at any of the participating breweries or sponsors. Then you’re off! Visit at least 12 breweries, get a stamp at each, and then collect your reward: a 32-ounce growler. There’s no time limit, so spend a couple weekends with friends, slowly collecting along the way!
Lake Coeur d’Alene Holiday Light Cruise
If you’re looking for something to really get you in the Christmas spirit, head to Lake Coeur d’alene and hop aboard the holiday light cruise! You’ll immediately be transported to gorgeous a winter wonderland. The boat will dock at the north pole about halfway through where the kiddos can go see elves, Mrs. Claus and of course Santa himself – who obviously knows all the kids names – and he’ll read out who made the cut on the nice list this year. Cruises start just after Thanksgiving and go through New Year’s Day. Good Morning America named the Coeur d’alene holiday light show as one of the nation’s best holiday destinations a few years ago, so you know it’s good! And while you’re in Coeur d’alene, check out some of the great shops and wonderful restaurants. You can definitely spend a full, joyous day here!
Okay, this might be cheating a little bit, because the primary focus here is skiing and snowboarding BUT I’m including it because those aren’t the only options there! There’s an indoor waterpark complete with a lazy river, surfing and of course water slides! If something a little more low key is your style, make sure to book a room at the adjacent hotel, where you can cozy up to the fireplace and relax with a good book! If you’d like to get on the mountain but skiing or boarding aren’t your thing, there’s a tubing hill that’s fun for all ages. You get to ride the gondola from downtown Kellogg to the top – which is a gorgeous activity on it’s own. Fun fact: that’s actually North America’s longest gondola – at 3.1 miles long. It was the world’s longest for a long time until it was topped by one in Turkey a few years back.