Spokane ranked 4th best place in the country to invest in real estate!
-Source: National Association of Realtors and HousingPrdictor.com
"The Spokane economy grew by 19,000 new jobs and 18,000 new people moved to Spokane in the past three years." - Rich Hadley, President and CEO of Greater Spokane Incorporated. Mr. Hadley went on to say that overall in Spokane, "our economy is strong".
As a realtor in Spokane, I can tell you that homes for sale in Spokane that are priced right move very quickly. Just yesterday, I Spokane with an out of town investor who stated that Spokane is one of the best places in the country to invest in. Builder's and lenders are far more conservative here than in other areas of the country. Builders have produced fewer inventories of new homes in the last 12 months as a result of a weakened economy. We don't have subdivisions with hundreds of vacant homes like other cities.
However, sales have slowed and prices have declined in the Spokane market as a result of the onslaught of disastrous economic news nationwide. The maxim of any kind of investing is to buy when everyone else is selling (buy low, sell high?!). Smart investors are using this opportunity to look for deals in this market. With that said, approximately 75% of homes for sale in Spokane, are priced too high - many homeowners in denial about the current market, and some realtors are all too eager to take a listing rather than truly educate their client about the market and assist them in positioning their home in the right price range.
Don't get me wrong, I'm not suggesting every home should be priced at below market value to ensure a quick sale. I'm simply saying that an agent should thoroughly understand their client's goals and motivations. If the client needs to facilitate a sale in 60 to 90 days; the home must be listed ahead of the moving market, which in the long run will result in a higher price for the client. A home that is priced too high from the outset will sit on the market while buyers move towards other more attractively priced homes. Then, after the client's home sits for several months, the realtor, not wanting to risk losing the listing (or perhaps even the client not wanting to face the realities of the market), will do a modest price decrease hoping to attract attention. The sad truth is it's already too late... now you're chasing the market, instead of creating a scenario where the market is chasing you!
The maxim is:
If your home is being shown, realtors are bringing clients through your home; however, you are not getting offers in a two week period, you are priced approximately 5% too high. A $200,000 listing should be reduced to $190,000.
If your home is getting drive-ups, people are pulling flyers, but very few actual showings, your home is priced approximately 10% too high. A $200,000 listing should be reduced by at least 10% to $180,000
If you are getting drive-bys only, reduce the price by 15% to $170,000.
If you are simply unwilling to sell your home at $170,000, you might need to consider staying put for a few years until the market improves.