Posted on March 12th, 2019, 11:59
There are a lot of new people moving to Spokane and Kootenai Counties, in case you hadn’t noticed. The valley has about half a million people, a fair percentage of whom have escaped California and Seattle, looking for a more relaxed atmosphere to raise their families and work.
The local newspaper, the Spokesman-Review, stated on Jan. 27th, 2019, that “Prospective buyers can find themselves in bidding wars, and competition for homes is reflected in rising prices. Although the Spokane area remains an affordable place to buy a house compared to other West Coast cities, the median home price rose 12 percent last year…” http://www.spokesman.com/stories/2019/jan/27/realtors-forecast-another-year-of-competitive-cond/
If you’re selling a house in the current market, if it’s in top shape (updated windows, doors, roof, flooring, kitchen, bathrooms, etc.), you’ll able to sell it for top dollar, and buyers from the aforementioned areas have a lot of top dollars to spend. Currently, we’re even hearing of bidding wars, a sign we may be in a bubble market, though with the influx of companies and people, it may continue for a while!
However, we have personally observed homes in the area that languish for months and then don’t sell. Why is that? Remember the updates mentioned above? If you have not spent the many thousands of dollars to update your home (the last one we did cost over $40,000 and 5 months of remodel blood, sweat and tears), you may well either not sell your house, or entertain offers from wholesalers who are professionals at valuing run down houses. You may see their billboards about town that say, “Sell my house fast for cash Spokane/CDA” or the ubiquitous “We buy ugly houses Spokane” billboards.
You may have wondered about who is advertising to buy homes for cash, and why they are offering to buy homes for cash in Spokane and Kootenai counties. The answer is, because they offer a service to the people whose homes aren’t up to snuff, who don’t have $20K or $50K to update their homes. They may be behind on house payments, recently divorced or widowed, retirees who are too tired to remodel or simply don’t have the skills to do the job, or someone who got downsized and needs to clear out fast. Even in good times, bad luck can strike.
A conscientious wholesale real estate investor (a.k.a. “wholesaler”) will build a commission and repair costs into his offer, to buyers who fit the above “distressed seller” definitions. As he may be the “we buy ugly homes Spokane” guy, he will either purchase the home within 30 days or find someone with capital to do so if he doesn’t currently have the bankroll to buy the house. Most wholesalers are connected to landlord or “flippers” who make their living updating these ugly homes in Spokane and CDA.
There are always hucksters in any industry, so if you need to get out of your house fast and call from a bootleg sign that could read, “I BUY HOUSES FOR CASH FAST SPOKANE AND CDA” sign, check the Better Business Bureau and review sites such as Yelp (although do take any of these with at least a small grain of salt, as many people do nothing with their lives except complain) for negatives. Also, don’t believe realtors who tell you “it’s not legal.” Hundreds of thousands of wholesalers are operating in 50 states within the confines of the law, so that is obviously a negative sales pitch. Again, though, vet anything you purchase as best you can, whether a camera, a TV, a car, or a home wholesaler. Let the buyer beware!