The Spokane real estate market is behaving incredibly differently than the majority of the housing markets across the country. Where as most markets are experiencing a significant slowdown with sellers losing a lot of the advantage in the market, the Spokane area has continued to grow and be a highly competitive real estate market. As a buyer in this market, how do leverage your position, such that you can become successful in buying a home, without becoming exhausted in the process?
Before I share with you about how to leverage your position as a buyer, I want to share with you some of the unique factors in the Spokane market that make it a highly competitive market. Here are a couple of factors:
1) There is a large number of people moving into the area from the Seattle area, the Portland area, and California. Those areas have an incredibly high cost of living, with many individuals and families wanting to live in an area that is both desirable and that has a much more reasonable cost of living. So, many of these people are choosing to migrate to the Spokane area, due to the area's growing economy, smaller town feel, beautiful scenery, and amazing outdoor adventurous activities.
2) The Spokane economy continues to grow, with companies like Amazon moving into the area, and rumors of other companies like Boeing coming to town as well. With the growing economy, this has attracted more people to the area to fill many of these jobs.
When you're a buyer in this market, how to deal with the fierce competition that you see on every home? There are many ways you can work to position your offer in the best possible light, which I'll discuss in another article. However, I want to address how you can use backup offers to leverage your buying experience._______________________________________________________________RELATED ARTICLESIs There A Time When You Shouldn't Sell Your Home?Five Things A Seller Should NEVER Say To Their Agent_______________________________________________________________
A backup offer is an offer that is written just like a regular offer, and negotiated in the same manner as a regular offer. The difference is that a backup offer is made when a seller has already accepted an offer on their home. Once the seller has accepted your backup offer, it sits in backup position, almost like a placeholder. I say this because you are not required to deposit earnest money, you do not have any inspections conducted, and you can continue to look at homes and make offers on other homes.
Where a backup offer comes in very handy is that it gives you a leg up, as a buyer, if the first offer falls through on the home. In a normal market, about 25% of offers fall apart at some point during the process. In the case of the current Spokane market, about 40-50% of offers fall through at some point during the process. That is a much larger percentage of offers that are falling apart and a much larger number of homes that are coming back on the market, and many times, the offers fall through with someone totally unrelated to the actual condition of the home.
So how does a backup offer work in your favor, if the first offer falls through? If the first offer does fall through, and you have an accepted backup offer on the home, YOUR backup offer slides right into first position. And this happens without the home ever going back on the market, which means YOU as the buyer are not competing with the same, frenzied, competitive buyer pool and the home is yours! How's that for some buying leverage?! And the final moment of leverage - you can submit multiple backup offers on various homes, and still continue looking for a home to buy. Just make sure you're working with a trusted agent, so that they can manage all of your buyer activity and make sure you're protected.
I trust you found this information useful in this article! If you have any additional real estate needs, contact me directly at 509-844-5843.