Buying your first home is an exciting milestone, but navigating the Spokane housing market can feel overwhelming. Spokane’s real estate landscape has evolved, with home prices rising due to increased demand from out-of-state buyers and local population growth. Whether you're moving from another city or have lived in Spokane for years, understanding the market and using the right strategies will help you make a smart investment.
Unlike the generic advice you’ll find elsewhere, this guide offers unique, first time homebuyer tips in Spokane that can give you a competitive edge. From insider knowledge on financing options to the best seasons for buying, these insights will ensure you find a home that fits your budget and lifestyle.
First Time Homebuyer Tips in Spokane
Before diving into the home-buying process, it’s important to get a clear picture of Spokane’s housing market trends:
Home Prices & Market Trends: Spokane has seen consistent home appreciation in recent years, but prices vary widely by location.
Urban vs. Suburban Choices: If you’re looking for walkability and city life, downtown Spokane, Kendall Yards and the South Hill are great choices. However, if you want more space and lower prices, suburbs like Spokane Valley or Airway Heights may be better options.
Inventory & Competition: Spokane has experienced a seller’s market in recent years, meaning there’s more competition for homes. Acting quickly and having pre-approval ready can give you an advantage.
Unique Financing Options for First-Time Buyers in Spokane
One of the biggest challenges first-time buyers face is securing financing. Beyond traditional mortgages, Spokane offers several unique financing options:
Washington State Housing Finance Commission (WSHFC) Programs – WSHFC offers down payment assistance and special loan programs for first-time buyers. Check out the "Home Advantage" program for lower interest rates.
Credit Unions vs. Traditional Lenders – Spokane-based credit unions like STCU (Spokane Teachers Credit Union) often have lower interest rates and more flexible loan terms than big banks.
Employer Assistance Programs – Some major Spokane employers, such as hospitals and universities, offer homebuyer assistance programs. Check with your employer to see if they provide down payment support.
The Best Time to Buy a Home in Spokane
Timing your home purchase can save you thousands of dollars. Here are some key seasonal trends:
Late Fall & Winter (Best Time for Deals) – Fewer buyers are shopping, which means sellers are more willing to negotiate. You may find better deals during Spokane’s cold months (November to February).
Spring & Summer (More Listings but Higher Prices) – The market heats up from March to August, with more homes listed but also more competition.
Spokane-Specific Home Inspections & Considerations
Buying a home in Spokane means being aware of weather-related risks and common property issues unique to the area:
Winter-Ready Homes: Spokane winters can be harsh, so check for proper insulation, a reliable heating system, and a well-maintained roof to prevent leaks.
Older Homes & Foundation Issues: Many homes in Spokane, especially in areas like Browne’s Addition, are historic properties. Check for outdated wiring, plumbing, and foundation cracks before buying.
Water Damage & Flood Risk: Parts of Spokane experience heavy snowfall and spring runoff, leading to potential basement flooding. Consider homes with proper drainage and sump pumps.
Navigating Spokane’s Competitive Market
In a competitive housing market, you need a strategy to stand out:
Be Pre-Approved Before Shopping – Sellers prefer buyers with pre-approval letters, so secure financing before making offers.
Look Beyond Popular Areas – Consider up-and-coming neighborhoods like West Central, which offer lower prices and strong investment potential.
Use a Spokane-Based Realtor – A local agent who knows Spokane’s market trends can help you find off-market listings and negotiate better deals.
Hidden Costs First-Time Buyers Overlook
First-time buyers often focus on the down payment but forget about these extra costs:
Property Taxes: Spokane property taxes vary by location.
HOA Fees: If you’re buying in a planned community or condo, factor in homeowners’ association (HOA) fees. These can add hundreds to your monthly expenses.
Snow Removal & Utility Costs: Spokane winters can be tough, and homeowners are responsible for clearing their driveways. Factor in the cost of snow removal services or equipment.
Leveraging Spokane’s Growth for Future Equity
If you're thinking about long-term investment potential, consider these factors:
Neighborhood Growth: Areas near new transit lines, schools, and commercial developments are more likely to appreciate in value.
Short-Term Rental Potential: Spokane’s tourism and college communities create opportunities for Airbnb or short-term rentals, which can supplement your mortgage payments.
Upcoming Developments: Research planned developments or city projects, such as new parks, shopping centers, or transit expansions, which can boost home values.
Negotiation Strategies That Work in Spokane
Getting the best deal requires smart negotiation:
Ask for Seller Concessions: Even in a seller’s market, you can negotiate closing costs, repairs, or even a home warranty.
Know When to Walk Away: If a seller refuses reasonable repairs or won’t negotiate fairly, be prepared to walk away and find a better deal elsewhere.
Post-Purchase Tips for New Spokane Homeowners
After buying your first home, make the transition smoother with these local tips:
Find Reliable Contractors: Spokane has many home renovation services, but stick with well-reviewed professionals to avoid scams.
Energy Savings Tips: Spokane’s winters can lead to high heating costs. Invest in energy-efficient windows, smart thermostats, and proper insulation to cut utility bills.
Join Community Groups: Spokane has a strong community vibe. Connect with neighbors through platforms like Nextdoor or local Facebook groups to stay updated on neighborhood news.
Conclusion
Buying your first home in Spokane is a big step, but the process doesn’t have to be overwhelming. By understanding the local market, securing the right financing, and using smart negotiation strategies, you can find a home that fits your budget and needs. Spokane is growing, making it an excellent place for first-time buyers looking for both affordability and future equity.
Take your time, do your research, and lean on local experts to guide you. Your dream home in Spokane is within reach!
FAQs
What credit score do I need to buy a home in Spokane? Most lenders prefer a score of at least 620, but some first-time homebuyer programs accept lower scores.
Are there any down payment assistance programs in Spokane? Yes! The Washington State Housing Finance Commission offers grants and low-interest loans for first-time buyers.
How long does it take to close on a home in Spokane? Typically, 30-45 days, but this can vary depending on financing and inspections.
What are the best Spokane neighborhoods for first-time buyers? Hillyard, Cheney, Airway Heights, Audubon, and parts of Spokane Valley offer affordable starter homes with good investment potential.
Is it better to buy or rent in Spokane? With rising rent prices, buying is often a better long-term investment if you plan to stay for several years.
Related Articles
About Me
My name is Nick Briggs
Being born and raised in Spokane I grew up knowing what a special place this city is, and it was my dream to help others create a life in this wonderful community by guiding them in real estate. I spent many years in the customer service industry, the experience of listening and communication showed me how much I truly loved helping people. I attended Gonzaga University and earned a Bachelor’s Degree in Business Administration to add to my knowledge of guiding, managing, negotiating, and listening to individuals, helping them achieve their real estate goals.
Comments