Multiple offers are common these days. Here are tips for handling them.
One of the stats that I love to track every month is “months of inventory.” It’s a measure of how long it would take to sell every home currently on the market if no new homes were listed. Right now we have just 1.5 months of inventory in Portland, which is extremely low. This is the lowest inventory we’ve had in the last three years and I can’t remember it being lower.
What does this mean? In short, more multiple-offer situations. They won’t happen in every area or for every home, but with low interest rates and low inventory, we’re seeing a lot more activity on listings than normal.
If you find yourself in a multiple-offer situation, here are three tips you should keep in mind:
1. Don’t just look at the asking price. Asking price is a guide; market price is what a buyer will pay. Instead of worrying about offering over asking price, think about it in terms of whether your offer is in line with market value. If there are other buyers offering the same amount, that’s the market price.
2. It’s more than just price. We have to look at other non-price elements to make an offer stronger, including the down payment amount, contingencies, and more.
3. You need a great agent. By this I mean someone who is experienced with multiple offers, is creative, and has good broker relationships. Today’s sellers want two things: the highest price and highest probability of the deal closing. With an experienced agent, you set yourself up for success.
If you have questions for me about the market, dealing with multiple offers, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.