As a buyer, finding the right home and deciding to place an offer can be overwhelming enough without the stress of multiple offers on Portland Real Estate. You can find yourself competing against other buyers in any kind of market. As we move into the spring, if interest rates stay low, expect multiple offers to be the norm in many price ranges around the metro area.
Purchasing a house is emotional, and when it comes to having to negotiate for your dream house, you need to keep a level head and understand your options. Be prepared for the following scenarios:
- Seller can just collect offers and accept the best offer. If it’s a property that you absolutely can’t let slip away, you might want to give the seller exactly what they’re asking for with price and terms. There is a chance you could get away with a lower bid, but you need to talk with your Portland real estate agent and decide if it’s worth taking the risk. You could end up paying more than the seller would have accepted, but at least you’ll have the house. A seller does not always immediately disclose that there are other offers on the table.
- Seller can let all parties know that there are multiple offers with a “highest and best request”. In this case, you know there is competition. That means there’s a chance, even if you do give them their asking price, that you might not be the only potential buyer putting in a full price offer on the home. Be ready to go above asking price. A skilled agent will be able to help you determine how far above asking is reasonable. As a general rule you need to go as high as you feel comfortable. Ask yourself where is my stopping point? Where would I be ok walking away and not paying one more dollar?
- The highest bidder is not always the winner . There are many factors that play into the strength of an offer. These terms can be adjusted to benefit the seller and reduce their stress and risk and ultimately make the process smoother for them. A stress free transaction might be worth $5-10k to them to have that peace of mind. Terms that can be adjusted are down payment amount, closing costs credits, inspection deadline, closing date, rent back, waiver of contingencies and many more. A seasoned agent can craft a very detailed offer that hits all of the hot buttons for the seller.
- Agent and lender report plays a huge factor in solidifying the deal. Offers are just pieces of paper. The seller doesn’t really know all that much about you as the buyer. Sure, an agent submits a pre-approval letter and discloses some personal info about your financial ability to hold up your end of the contract, but really it is a blind bid. For this reason it is super important for the buyers agent and lender to build report with the listing agent. They need to convey a strong message that puts you, the buyer, in the best light and a position of strength.
There are many “what ifs” and “case by case” points to all of these scenarios, so make sure you take each into consideration before submitting a proposal or counter-offer. Also, talk to your agent and ask how multiple-offer negotiations are handled by the listing brokerage up front.
When bidding on Portland real estate with multiple offers, you’ll have to move quickly. Have a plan and be prepared for any and all situations.
If you’d like to speak with an agent who is a skilled negotiator, including multiple-offer negotiation, please call, text or email me anytime!