How Do I Know What My Home Is Worth in Spokane, WA?

Thinking of selling? Want to refinance your home? If so, the first thing you're probably asking yourself is, how much is my house worth? There is no shortage of online home value tools in today's digital world, but how accurate are they?  To calculate the actual value of your home, you must consider a broad spectrum of factors. Here's what you need to consider, plus how to get started!   How Much Is My Home Worth? Wondering what your house is currently worth? The quick answer is: whatever someone will pay for it.  A more comprehensive answer will depend on several variables, including what's happening in the housing market, particularly in your area. For example, is the demand for houses high but supply is low? In this case, you are likely in a seller's market. What your home was worth a year or two ago may no longer represent its current value.  When supply and demand are not balanced, values become more of a challenge to determine.  So, how do you find out what the value of your house is? You lean on tools and industry experts to paint a clear picture. This leads us to our next question — is one more favorable than the other? How accurate are online valuation tools, and how do they stack up to working with a local industry expert?     How Redfin and Zillow Value Your Home If you search "how much is my house worth?" online, you will get dozens of hits, showcasing the top home value estimators. According to NerdWallet, 22% of homeowners in the United States determine the value of their home using this method. The technical term for these tools is "automated valuation model." Two of the big players in this space are Redfin and Zillow.  These tools leverage the data available from public records, such as tax assessments and property transfers. Using mathematical modeling, these tools aim to predict the value of your home based on the most recent listing prices and sales in your area.  Both companies are transparent concerning their national median error rates. For example, Redfin reports that its current median error rate is just 2.72% for houses for sale and 6.79% for off-market homes. This means that the estimate is within these margins of error half the time. So, for when a home is on the market and sells, Redfin's estimate will be within 2.72% of the sales prices half of the time.  In comparison, Zillow reports that its national median error rate for on-market homes is 1.9%, and for off-market homes, that error rate increases to 6.9%.  The issue here is that a median national error rate does not represent your local market. So, the error within your local real estate market may be better, or far worse, than the advertised national medians.    The Pros and Cons... Both Redfin and Zillow are easy-to-use and convenient, but the price you pay for that is low accuracy. There have even been instances where homeowners (unsuccessfully) sued Zillow because the estimates were so far off.  Both of these companies warn users that the estimates provided should be used only as a starting point. The figures provided are not appraisals — they are simply algorithm-based computer estimates. They should certainly not be used as part of a bargaining strategy when selling or buying a home.  They are good "estimate tools" — they are not all-knowing tools.  Pros  Tools like Redfin and Zillow are good starting points, giving you some insight into what you can expect from your journey ahead. The figure you receive can then be discussed with a local industry expert to determine if you can ask less or more depending on a more comprehensive analysis. Cons Online home value tools only consider certain factors because they do not often have access to the same information that a local real estate database has. This lack of information creates skewed results. This means you will only get a partial estimate, resulting in a figure that isn't accurate.   These tools are not ideal when dealing with fast-moving markets, especially when homes are selling in a matter of days. That is why an estimate on Redfin may significantly differ from the one you got on Zillow.    Nothing Beats Working With a Local Real Estate Agent Online home value tools can provide a good starting point, allowing you to get a ballpark estimate. However, there isn't any substitute for a local industry expert. Unlike most third-party real estate sites, local real estate agents have access to the information you need to ensure greater accuracy. Your local real estate expert will dive deeper than Redfin or Zillow, providing you with a comparative market analysis. They will also be able to give you a more accurate value based on when your house was last renovated, the condition of the property, the type of view you have, the amount of natural light inside, and the list goes on. These are the type of key variables that online estimate tools and the algorithms responsible for estimated values miss.    How Can I Get a More Accurate Home Valuation? Online automated home value tools are just one piece of the home valuation puzzle.  If you want the most accurate estimate, you'll want to lean on your local real estate experts.  Ready to talk about the value of your home? Let's Chat!

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Spokane’s TRUE Cost of Living | Is it really affordable?

  Spokane tops nearly every list as one of the hottest markets in the country and one of the fastest appreciation markets as well. But, A lot of times when I talk to people from out of the area that are looking to move here, they are moving here because of its affordability. Which leads us to the question, Is Spokane actually affordable?   In this article we’re going to go through why people think Spokane is affordable and we’ll talk about some reasons why it’s maybe not as affordable as people think.      So, if you’re from most places along the west or east coast you’re most likely thinking, YES, Spokane is absolutely more affordable then where I’m at, but let’s dig into some of the details that can be overlooked and why most native Spokaneites would probably disagree.  Let’s look at bestplaces.net which puts Spokane at almost eight percent less than the US average and way less than the Washington average in terms of affordability.     If we look at the table, you can see that groceries are slightly cheaper than the US average, healthcare is much cheaper in all of Washington which is great, and it says here that housing in Spokane is at 94% of the national average with a median costs of $335,100.00, which is absolutely wrong but I will swing back to that later on.   Utilities are significantly lower here in Spokane and Washington in general because of the many green initiatives and gas prices here in Spokane are at least a dollar less than on the west side.    So, noting that the biggest difference between Spokane and the rest of Washington or some of the other popular places people move here from in terms of affordability is housing, let’s actually check some stats here because I don’t believe bestplaces.net has actually stayed with the rapidly changing times.        Looking at rentometer.com, we can see that the average rent for a 2 bedroom here in Spokane is $1,423.00, which is insane! And up about 29% from this time last year and you’re probably thinking that’s way cheaper than where you live and would take that opportunity any day.   Now if we look at these stats from the Spokane Association of Realtors, it shows that the average home price is $397,092.00 based on the Spokane MLS, which I just want to note is DOWN 2% from last month and is also UP 24% from last year.    And again, you’re like, I get it, Spokane is way cheaper than me living here in Seattle or LA and I would give anything for those prices.    Well, let's look at the average household income here in Spokane. Bestplaces.net says it’s about $44,768.00. Taking that into consideration and assuming that someone shouldn’t spend more than a third of their income on their mortgage, that places the average Spokanite at a home purchase price of barely $230,000.00 assuming they don’t have any other debt payments.    So, based on what is currently happening here in Spokane, most people here wouldn’t deem it to be the most affordable because of this large gap between the average home cost and the average income.   Now, I’m going to emphasize with you out of town, out of state people looking to move to somewhere more affordable. I realize that the gap between the average income and home price is much much larger in places like Seattle where the average income is around $8,000.00 and the average home price is around $800,000.00.    Realize that many people that have lived here in Spokane their whole life aren’t seeing your point of view, and you might not want to mention you’re from California if you do move here because you might get some light heckling at the bar. Don’t worry, everyone is nice here!      I want to circle back to the Living wage calculator for Spokane county. We found out earlier that the average income here is about $44,000.00 and according to this calculator that’s right on track with being affordable here in Spokane.    The big problem is they’re only budgeting $8,352.00 a year for housing and going back to that $1,400.0  a month we budgeted for rent AND going back to that affordable home price of $230,000.00, which there are currently only 9 of those for sale in the Greater Spokane area, each with their own special set of necessary repairs,  your yearly cost for living is easily over $16,000.00 a year either way you go.    So that affordable wage number should actually be closer to $51,00.00 to afford a very small home or rent a 2 bedroom apartment.  And that’s not even assuming that you might have a kiddo or two and pay at least $700.00 a month in childcare. And we’ll avoid that rabbit hole where that 2 bedroom has quickly become too small.  But we’re easily jumping to a necessary salary of anywhere from $60,000.00-75,000.00 to live comfortably and we haven’t even factored in the need to save money and invest for retirement.    So is Spokane affordable? Compared to many cities, Spokane is still considered to be very affordable, but for those currently living here making the median to average income, the rapidly changing economy and market as a whole is really bringing down those people who aren’t bringing in money from bigger areas.    Interested in moving to Spokane? I'll be glad to assist you in whatever way I could. LEARN MORE

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The Emotional Side of Home Selling

The decision to sell your home isn’t an easy one. In fact, research has ranked selling a home as second to relationship breakups for the most stressful experience in a person’s life. The same survey said Americans are more stressed out about selling their home than planning a wedding, getting fired or even becoming a parent. In other words, it’s perfectly normal to have strong emotions. The good news? Though the experience can feel overwhelming and inspire doubts, it doesn’t have to get in the way of a successful home sale, and there's always a bright side. Here are three stories from homeowners that prove it. The Story: Last Minute Memories  Nostalgia seems to unexpectedly hit many sellers like a ton of bricks once they see their home empty and ready for its next owner. Getting caught up in the chaos of moving can only keep your mind busy for so long before you realize what you are about to leave behind. Oftentimes sellers feel the rush towards the end of the process. That’s exactly what happened to Erin, author of The Sunny Side Up Blog. She says, “I walked around room to room. I could see my baby girls running around in dress-ups. I could see our evening routine – giving them a bath and putting them in matching PJs. I could see so many sweet moments between my kids and how fast they grew right in front of my eyes in that house."   "It’s not hard to say good-bye to a house. It’s hard to say good-bye to special memories and to the end of an era. A really happy era that I will tuck away and treasure in my heart forever." The Bright Side ☀️ “We feel so blessed to be in our new home, we are definitely going through a bit of a transition.  I know it will just take time. I also know that someday, much sooner than I can imagine, I will be walking through the rooms of our new house feeling the exact same way.” The Story: An Empty-Nester’s Adult Kid Confronts The End of An Era In a story from The Atlantic on navigating how empty-nesters navigated the sale of a family home, the story of Alene Bouranova stands out. Bouranova grew up in Kirkland, Washington. She was at school in Boston, Massachusetts when she got the news that her parents had sold her childhood home.    “I started crying in the dining hall, just crying all over my plate of pasta,” Bouranova says. “I was not pleased at all. That was my home.” The Bright Side ☀️ Although Bouranova was initially emotional about the sale of her childhood home, she came to terms with the decision and understood the reason behind her parent’s decision.   “It’s my parents, and as sad as I was originally, it’s their lives and they can do what they want,” Bouranova says. “I just want them to be happy.” The Story: Moments Of Doubt Despite being a Realtor who has guided many clients through the home-selling process, Nancy Perkins was surprised by how emotional she felt when selling her family’s home of 19 years. In an essay for The Alexandria Times, she writes how she and her husband began to doubt themselves throughout the process after realizing the attachment they had not just to the home itself but to the neighbors and neighborhood.    “We started to doubt ourselves. Why did we need to make any changes when this house worked well for us? While we were ready for a new house, we were attached to our home, to our garden and to our neighbors.” The Bright Side ☀️ “Like many of my clients, these thoughts kept me up at night. My fears were alleviated, however, with multiple offers, happy buyers and a quick sale, thanks to smart renovations, good staging and fair pricing.” The Bottom Line There’s no doubt that you won’t ever forget the memories you made in your home, but looking forward to the new memories you’ll create in the future and getting excited for what’s to come can put your mind at ease.  No matter if you’ve lived there a couple years or many decades, selling your home can inspire a deep emotional response.   Selling your home is hard.Selling without an agent is even harder. Even if you’re not planning on selling soon,preparing you (and your home) to sell will help with thestress and anxiety that are sure to come. Let's Talk

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