Portland is one of the fastest growing housing markets in the United States. For the third year in a row, Oregon is the top moving destination according to a study conducted by United Van Lines. Many of these transplants are relocating to the Portland Metro Area. Cashing out of costlier housing markets and taking advantage of the relative affordability of Portland. With this influx of cash buyers and limited stock, how do you compete in a hot seller’s market?
Have your finances in order
Know how much you are able to spend on your new home. Don’t forget about the closing and inspection costs when deciding how much money to borrow. Find a mortgage professional and secure a strong pre-approval letter before you begin your search. This will allow you to move quickly when you find the house you want to make an offer on. Sellers have traditionally preferred cash offers due to a perceived expediency in closing and reduced risk of the deal falling apart in the loan process. You can put sellers at ease by having your finances in order at the time of the offer.
Be Realistic
Your Realtor can help you by providing you the closing prices of comparable houses in the neighborhood you are looking. Due to a low inventory, many houses are selling for over asking price. Kelly Stafford, owner of Home Sweet Home Realty, crunched the numbers for HSH’s 2015 sales and on average the winning bids were 11% over list price. This knowledge has been very useful for HSH Realty’s buyer clients. Allowing HSH clients to make strong and realistic offers.
If you are approved for a $300,000 loan don’t overlook houses listed for less. Sometimes it is worth buying a house with some minor issues that may be a turn off to buyers. You can avoid a costly bidding war and put the money you saved towards improving the house. Most importantly, don’t be discouraged if your offer is not accepted. New houses get listed every day. Stay on top of new listings and be ready to make multiple offers. You will get one!
Be Flexible
One of the best strategies for competing in Portland’s Hot Real Estate Market is to be flexible with your terms when writing an offer on a house. There are more factors than money when it comes to closing the deal. Your Realtor can help you gain a competitive edge over other buyers (yes, even cash buyers) by figuring out what is really important to the sellers. Have they found their next house? Offering an extended closing time or free rent back may make your offer stand out. Do the sellers want to close fast? You may consider waiving the financing contingency or reducing the inspection period. Though, as this article points out, it is a risk to waive the Inspection Clause completely.
Make it Personal
Buying and selling a home is an emotional process. One of the simplest things you can do to stand out when making an offer will cost you nothing! Write a letter or make a video of yourself for the sellers. Tell them about yourself and how owning their home would change your life. Are you looking to raise a family? Have you recently relocated to the area? Let them know that you think their home is special. Sellers appreciate knowing that the next person to own their home will love and care for it as they have. This technique can definitely give you an edge, especially when competing against investors.
Looking to Buy or Sell? We would love to help! Contact one of our great Home Sweet Home Realtors at 503-515-2986 or online at hshrealty.net.