Of course most folks already know that Portland’s sizzling hot seller’s market continues unabated. I spoke with a colleague recently who said they received 30 offers on their listing. Half of our clients are buyers and it’s not usual to compete against at least four or five other offers. So much for the stats. Now what should savvy sellers and buyers do in this crazy market?
SELLERS are of course in the driver’s seat, but heed these words: despite what they say on Wall Street, greed is not good. The basic rules of sound marketing still apply: data-driven pricing and good first impressions are a must. Take it from firsthand experience - price too high or fail to make the very best first impression means you’re likely to leave a lot of money on the table. Likewise, the next two phases of your sale (negotiations and transaction management) need to be handled with an especially deft touch nowadays. Negotiations have taken on a different complexion: there’s more emphasis on screening the buyer’s qualifications and motivations. Experienced negotiators will also seek to secure terms and conditions that protect you throughout the rest of the transaction. And finally, being prepared for the buyer’s inspections and due diligence well in advance will help protect against unnecessary and potentially costly seller concessions later in the transaction.
BUYERS on the other hand face one of the most competitive markets in recent memory. Even during the hot market years prior to the housing bubble, inventory of available properties for sale were a bit closer to equilibrium, compared to the less than two months we’ve been experiencing since March of 2015 (a healthy market is considered to be one with a six month supply of inventory for sale). This means buyers have to be ultra-prepared to compete on two fronts: pre-qualification and negotiable terms and conditions. Portland is awash with cash buyers at every price point, so don’t think that because you can make an all-cash offer you’ll automatically seal the deal. Time and deal security are two important factors that can weigh heavily on a seller’s mind. There are strategies that buyers can use to give themselves a competitive advantage over other buyers, without giving away important protections. And, putting skin in the game - in the form of releasing earnest money at the right time - can tip the scales in the favor of a buyer who is serious about buying their next home.
Hope all of this makes sense, but please give me a call if I can help in anyway. My direct line is 503-703-0702.