By Drew Burchette, June 8, 2018
By Drew Burchette, June 8, 2018
The Portland Real Estate Market is competitive. It has been that way for several years now and this is not new news. But I will say that every competitive offer situation is different and as an agent you have to adjust your strategy based on market knowledge, experience and, most of all, instinct. I’ve been working with Marie, Steve and their children for the better part of a year to find their ‘forever home’. This is the one that the kids will come home to for holidays after college when they are working at their first real job. The kids are in elementary school now…so those are some serious roots that we are talking about here.
So, after months of looking (online and in person) at every decent listing that came up in the SW Hills, we’d finally found the house. It has sweeping views the foothills, mid-century charm, a fantastic floorplan and a huge yard including an awesome sports court. This was the one, no doubt about it.
There was another property that was a near miss a few months back in the same area and at about the same price point. It got 6 offers and was really competitive on price and terms; the winning bid waived their inspections and went $60k over asking. Based on that alone, I was preparing myself and my clients for a battle to get an offer accepted.
After touring the house and the decision was made to write an offer, I made a quick call to the listing agent to gauge activity and to see what the offer presentation plan was. In that 90 second conversation I got the feeling that the sellers were not looking for a bidding war, just one good buyer. After thinking about it for a minute, I advised my clients to put together a strong, full price offer. We turned it around quickly and got it in front of the sellers. Immediately they responded by saying that if we raise it by $15k, they’d sign it tonight. No exactly the outcome that I was hoping for, but it put the ball in our court. After going back and forth with my clients, they decided to sit on their original offer to see how the competition played out over the next +/-24 hrs. We also knew that if any other offers came in that they’d have a chance to improve their price and terms so the risk was minimal.
As our offer expiration was approaching, there appeared to be a few other buyers circling, but none of them were quite ready to pull the trigger. It was a nail-bitter for those last few hours, but the sellers ended up excepting my clients offer without any change in the price or terms. It was a true moment for celebration; we had play our cards perfectly!
Within the next few days, two other offers came in over list price. Since we were firmly in contract, the best they could do was backup position. Inspections went well, but there was actually a good bit of plumbing and electrical work that was needed for the property. We submitted an addendum asking for a seller credit to put a dent in the work. The sellers rejected it outright. With a solid backup offer in place…I’d have done the same thing. My clients were undeterred and moved forward towards closing.
The moral of the story (for me anyway) is to follow your instincts, listen to the needs of others and make no assumptions.