Oh look, another article hammering the fact that Portland is heavily enmeshed in a strong seller’s market. I am sorry. It is not for lack of things to write about, but offering advice to “stay strong” and “the right house will choose you” gets really old. Buyers are tired of hearing it, especially those buyers who have been slugging it out for months now. They need actionable advice that will get their offer to the top of the pile and help them land a home. Here is my best advice to these buyers:
Be Pre-Approved to Buy a Home
I am going to take this a step further and say be pre-approved with a mortgage lender who will share their after-hours contact information. Your REALTOR® may need an up-to-the minute pre-approval letter that speaks to the specifics of the offer you are crafting. These magical lenders are out there, and evening strategy sessions with you and your REALTOR are the norm for them. Find one. Hug them. Tell everyone you know about them. They make the world go around.
Be On Call For When Your Home Hits the Market
House hunting may temporarily take over your life, but when homes are going on and off the market in a weekend, this is not the time to look only when it is convenient. Commit to the journey. Commit to your REALTOR. Commit to changing plans when needed to go look at a home. Be ready to move quickly if the house hits the high points on your list of must haves.
What Do You Really Need In A Home?
When inventory is so low, you may find it useful to sit down and prioritize your must haves, your nice-to-haves, and your I-guess-we-can-live-withouts. When we bought our home in Portland years ago, we slashed our must haves by at least 75%. And you know what? We ended up in exactly the right house for us because of it. Forget what is trending on all the home improvement channels. What do you truly need in a home?
Be Aggressive. Be, Be Aggressive.
With your offer price. If you are looking for a bargain, you are in the wrong market. Even short sale and foreclosure properties are no longer the screaming deals that everyone seems to think must still exist. I am not advocating for over-offering. Your REALTOR will be able to provide you with up-to-the-minute micro market advice that will help guide your offer.
Look at Homes Well Below Your Maximum Budget
Okay this may seem contrary to my “do not over offer” advice above. This one hurts. A lot. Because there are noticeable differences in the quality of homes $25K to $50K below your maximum. But if you are consistently outbid near the top of your range, then it is safe to assume that in this market, your maximum is not where you think it is. It is also safe to assume that homes are being aggressively marketed below market value in order to entice a buyer bidding war. Your REALTOR is your best source of information regarding whether or not a home is properly priced and what you should consider offering.
Be Communicative
This is really more advice for the REALTOR than it is for the client. It is shocking to me how many offers arrive via email without any communication in advance. No phone call. No introduction. No questions. Just…”Here you go. Pick us. Don’t pick us. Eh.” Make sure everyone is talking to one another, building relationships and rapport. Sometimes that shared connection is what makes the difference.
Write a Clean Offer
A clean offer has little to no contingencies. If you need to sell a house in order to finance your purchase, make sure your current home is already on the market when you make your offer. A seller is not likely to accept your offer if you do not have some skin in the game already. And as stated above, have your financing lined up and ready to go.
Be Open About What You Love
I realize that buying a home is a business deal, but adding a home buyer love letter, if you are so inclined, can be the thing that sets you apart.
Set Your Sights on Multiple Areas
Begin researching up-and-coming areas if your chosen neighborhood is becoming unaffordable in a rapidly rising market. Are you willing to compromise on location? That is probably the biggest question to ask yourself. Most of us can live without an additional half bath, a fully finished basement, or coffered ceilings. Determine how much “fixing” you are willing to do to a property. Even in a strong seller’s market, there are properties that hang out on the market longer than their prettier competition. Homes closer to the city center might move quickly, whereas homes that are farther out may offer a more reasonable time frame for you to research the area to find all the cool neighborhood gems.
So what if you are doing everything listed above and still not experiencing success in this market? Hmm. Stay strong? The right house will choose you…
By Danni Duggan, OR Real Estate Broker, Premiere Property Group, LLC. My real estate practice is built on a foundation of compassion, intelligence, wit, and a genuine desire to help my clients achieve their goals. If you are ready to start your home search in the Portland Metro Area, I would love to work with you and help you get into the right home. Let’s begin your home search now, together.