It's IMPOSSIBLE to buy a house in Portland, Oregon!
At least that's what homebuyers who haven't gotten their offers accepted are telling themselves. Maybe you've been unlucky or perhaps it's time to change your strategy! Regardless, buying a home in Portland is no task for the faint of heart.
Today my goal is to help you get your offer ACCEPTED! I will share 9 tips to help you buy your home and beat out the competition. But first, let me share a little market insight.
The number of houses closed in Portland has increased by over 11% from January 2020 to 2021. (1) This means people are buying houses at an increased rate. At the same time, we have seen a sharp decrease in the total number of houses listed. (See Below)
As one might expect, the decreased supply and increased demand have resulted in fierce competition and rising prices. The median home price in Portland has increased by 13.3% from January 2020 to January 2021. (1)
DISCLAIMER: This is for educational purposes only. I highly recommend you consult your licensed Real Estate Professional before implementing these tactics.
1. Waive Inspections :
Waiving inspections is risky! However, it just might be the most compelling reason for a seller to accept your offer because it speeds up the process and you lose the opportunity to find problems (potentially expensive ones) with the house.
2. Waive Appraisals:
Waiving the appraisal contingency is another bold strategy to get your offer accepted. This is an especially enticing term for a seller in a hot market where low appraisals are a more common risk. A low appraisal means there is a difference in the appraised value and the amount a lender will loan to the buyer. A lender requires this gap is settled before they fund the loan. Typically the buyer and seller might split this difference. However, in a competitive market offering to bear the burden, strengthens your offer. Some buyers limit the amount they will cover and others don't specify a limit which can be quite risky.
3. Non-Refundable Earnest Money:
This strategy is not for the indecisive, you must be absolutely sure you want to buy this property. There is no better way to show you are serious than by putting your money on the line on day one. Sellers love to see this because it signals a strong buyer who won't flake out. If you use this method, please know that you risk losing your earnest money if you back out for ANY reason.
4. Highest & Best Offer:
In a competitive market, the buyers who don't submit their highest & best offer often lose because someone else outbid them. I understand it's nerve-racking to put your best offer out first but in multiple offer situations, it is necessary. You often don't have a second chance to re-negotiate price and the seller might well accept another offer.
5. Get Offers In ASAP:
Have your agent submit the offer as soon as possible. If you love a house, trust me, you won't want to lose it because you (or maybe your agent) were lallygagging. It might sound wild but even an hour can make the difference between winning and losing. As they say, a bird in the hand is better than two in the bush. If a seller has a competing offer in hand, they might not wait for yours.
6. Write A Letter:
A letter is like a trojan horse into a seller's heart and emotions. If you can develop a connection with the seller, you will have the upper hand against your competition. Whenever possible, I highly encourage writing a heartfelt letter.
7. No Repairs:
Write into the contract that you won't request repairs and I assure you it will grab a seller's attention. Making repairs before selling a house is at the bottom of their to-do list. Simplify the seller's life and you'll make your offer stand out.
8. Have A Great Agent:
This is a no-brainer. Make sure to interview several agents and find the one who best fits your needs. Don't hesitate to give me a call if you need a great agent in the Portland area!
9. Get Creative:
There are so many creative ways to make your offer unique. An agent in my office told me a story about one of her clients who was a sommelier. They offered the homeowner a free wine tour if they accepted his offer to buy the home. C'mon now, that is awesome! How would you make your offer fun and creative?
I hope this post can help improve your offers in this challenging market. I know it can be dispiriting if you've lost out on a wonderful house but keep your head up. Let's find you the home of your dreams!
If you got some value from this blog, I'd appreciate it if you'd share it with one other person you think would enjoy it!
Cheers,
Alex Paiz
(971) 319-4166
REALTOR®
Licensed Oregon Real Estate Broker