No more bidding wars in the Portland housing market
Bidding wars! Those words strike terror into the hearts of many would be home buyers during a very active sellers’ market. Believe it or not, sellers don’t like bidding wars much more than buyers do.
With Portland currently experiencing a full on sellers’ market, one would think bidding wars would be rampant, but that isn’t the case this year.
Currently, when a listing goes live on MLS, the listing agent clearly indicates when offers must be in and when they will be presented to sellers. It is not unusual to see new property listings go live on Thursday, an open house on Saturday or Sunday, and offers due by noon and presented to sellers at 3pm Monday afternoon.
In this format, it is imperative that buyers make their first offer their “highest and best, because there is no haggling or negotiating at this point, and there is no second chance.
The sellers are able to review all offers in one sitting and select the winning bid which is almost always the highest price. Occasionally other factors can come into play, such as closing date, pre-approvals, buyers’ willingness to allow a rent-back period, waiver of inspections, etc.
When the winning offer is selected and mutually accepted by sellers and buyers, the house goes pending (off the market).
Most sellers are seeing all the advantages of the bidding wars days in terms of higher prices without all the drawbacks inherent in a bidding war scenario.
In many areas throughout Portland, homes are selling at premiums of 10% and more above listing price. If you are home shopping your realtor should be familiar with your area and the premiums most buyers are willing to pay so you can write up your best offer when you find your dream home.
Of course, if a house does not sell within the specified offer period, the house remains on the market where buyers reap the rewards, with more negotiating power.