Wednesday, January 15, 2020 / by Keri McCombs
Effective January 1, 2020, a new law went into place that impacted the way excise tax is calculated in the state of Washington.
But before I address what changes were made, I first want to go over excise tax, what it is, what you need to know about it, and how it impacts YOU.
What Is Excise Tax?
Excise tax, generally speaking, is a tax on the purchase of a good. So in this case, real estate excise tax is a sale on the sale of a home or property. In the state of Washington, the seller is responsible for paying this tax when a property sells. However, if the seller doesn't make sure it's paid, the buyer does become liable. There is only one time where I know this happens, which I'll discuss towards the end of the article.
Real estate excise tax, also known as REET, has historically been 1.78% of the purchase price for most of the greater Spokane area (1.28% state levy rate plus 0.50% levy rate for most cities). However, the state of Washington has been discussin ...
Friday, January 10, 2020 / by Dennis Isip
We are finally here, Spokane has experienced 20 years of real growth in real estate. If you bough a home in 2000, it's very likely that your home may have doubled in value within the last 4 years. The typical home with 3-4 bedrooms, and 1 or 2 baths, with living space of about 1600 sq ft, was valued at $109,500 in 2000.
Today, assuming that you've kept up with its maintenance requirements, that house is now valued at $270,052. Further appreciation may yet continue in this upcoming year of 2020. However, we need to watch it very closely. As the data indicates, there has been a drop in number of homes sold in 2019, compared to 2018 and 2017.
There are 2 possible reasons: 1) Spokane is continued to be plagued by the extreme lack of housing inventory, or 2) the buyer demand (especially from out of town) is softening up.
There has been a dire shortage of homes for the significant part of the past 36 months. Inventory has been consistently hovering at 1 month. ...
Friday, December 20, 2019 / by Ariadne Gold
Well, last weeks snow is gone and its now 50 degrees and raining. I think mother nature may have had too much eggnog!
This week we are at 1.5 months of inventory! This is up from 1.3 months last week, most likely due to the holidays coming up. There are currently 1,476 homes on the market, but about half of those are under contract. 92 new listings came on the market in the last week, which is 20 less than the week previously. That’s a bigger jump than normal, again due to the holidays. I think that number will continue to go down week by week until January or February; there won’t be many homes coming on the market during the Christmas and New Years weeks.
What effect does this kind of market have on buyers and sellers? Buyers are making an average of five offers before they find their home. Five! That’s a lot of heartbreak and frustration. It’s also very different for sellers; while before the ...
Friday, December 20, 2019 / by Elizabeth Sorensen
We're getting down to the wire as we come to the end of 2019! With the holidays approaching next week, it isn't surprising that we have 20 fewer listings this week compared to last week- with only 82 new listings coming on last week.
Less buyers are out in the cold weather right now as well. For the first time in nearly nine months, we have an uptick in inventory with our current available properties at 1.5 months.
This is still extremely low and many buyers and sellers are wondering where we are at in the housing market as we head into 2020.
We still have a very high pending ratio of 57% with 1,476 active listings to choose from in Spokane County (single-family, stick built homes on <1 acre). So over half of the homes you see on the market already have accepted offers on them.
The buyer pool may be lower this time of year but so are the number of listings. So if you are a seller, you have much less competition. The buyers out there are serious, qualified b ...
Friday, December 20, 2019 / by Elizabeth Sorensen
Many sellers think spring is the best time to put their homes on the market because there are usually more buyers out at that time of year. What they don’t often consider is that every other homeowner is thinking the same thing!
Much Less Competition=Selling for More
The #1 reason to list your home in the winter is there’s less competition. Inventory is usually at its lowest point in the winter, so the options buyers have are limited.
The ‘sweet spot’ for listing your house to get the most exposure happens at the start of the New Year. When spring rolls around, temperatures aren’t the only thing that rises- so do the number of listings.
Don’t wait for all of the competition to show up before you decide to put your home on the market.
Serious Buyers=Less Window Shoppers and Higher Selling Price
There is an added bonus to selling during the winter- the buyers who are out looking in the cold and snow tend to be very e ...