How to Buy & Sell in Our Current Market
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With housing inventory still at record lows and mortgage rates lower than average, more buyers are looking to move to the metro area, making Portland a booming market for sellers. Here are a few tips to help you prepare to buy and sell in our current market!
Price your home right.
In good markets and bad, sellers are more likely to benefit from pricing their home fairly than by listing too high and waiting for the “right” buyer. We recommend a strategy of pricing homes based on comparable sales which sets the floor for pricing, but let the market demand set the ceiling. Our strong market will never allow a home to be undersold as the market will always rise up to the level of demand and yield top dollar.
With low inventory and high buyer competition, listing at a fair price could help you get top dollar – and quickly!
Be sure what you want is out there and within your budget.
The key to not being disappointed in a fast-paced market with low inventory is to have realistic expectations. Learn about your budget and know that there will need to be trade off’s. Keeping focused on the key features and neighborhoods that matter most and be flexible on the rest. In our current market, most homes will have multiple offers – Portland’s average right now is 4 – and be prepared to make competitive and attractive offers for sellers to set yourself apart.
Sell high, buy high.
Low inventory means HUGE demand where sellers can leverage the market to get strong terms and high offer prices – this is the scenario Portland is in the middle of now! With so much competition and demand, sellers have more negotiating power and are getting higher offer prices than we’ve seen in a while – sell high!
On the flip side, buyers are also being impacted. Since inventory is so low, they have to come to the table with strong offer terms – including their offer price. We’re currently seeing bids for 10% OVER the list price just in order to be competitive against other buyers.
Strong terms: rent backs
A rent back gives the seller the option to stay in the home after closing for a certain period of time – sometimes a week, but usually no more than 60 days since lenders require buyers to take occupancy within that time. Most purchase transactions will close in around 30 days, so including a rent back in your offer terms is attractive to sellers because it takes the pressure off having to make an interim move.
In a competitive market like ours, we recommend buyers offer this for free, but they do have the right to charge the seller a daily or pro-rated amount for staying in the home.
Have a Plan B.
If things don’t go according your “Plan A,” have a “Plan B.” Consider buying before selling if that is an option OR consider an interim move. Moving twice is a hassle but can afford you time to look for that next great house – even if it means living with a family member for a short time. Look in different neighborhoods than you originally expected, take a second look at your list of wants and needs in home, find ways to strengthen your offer – all which will help you to flex with the market and get that great next house.
And if it isn’t the right time, it’s ok to take a step back and wait for the right opportunity. We’ll be here to help you when you’re ready!
Building-Up Bridge City Businesses
Each month in our newsletter and blog we will be featuring local businesses we think you should know about!
Mary Rose Boutique
Based in: Oregon City
Brick & Mortar Location: 509 Main St | Oregon City, OR 97045
Website: www.maryrosenwboutique.com
Mary Rose Boutique is a locally, woman-owned boutique in Oregon City that is about more than fashion - it is about creating a place for people in all bodies to feel beautiful and empowered. Not only do they have body-inclusive styles, they also give back by donating a portion of their profits to providing scholarships for eating disorder treatment and education to promote mental health.
The Nature Atelier
Based in: Portland
Shop Online at: www.the-nature-atelier.com
Born out of a desire to connect more deeply with nature and the community, The Nature Atelier uses art, movement and sensory experiences to grow and inspire a passion to protect our planet in the hearts of children and adults alike. Shop online for eco art supplies and toys, or reach out experience plein air yoga, and art workshops for children and adults.
Kerri's Test Kitchen
Based in: Beaverton
Order Online at: www.kerrirueda.com
Kerri's Test Kitchen is an in-home bakery that specializes in custom cupcake orders in unique, gourmet flavors. Order as few as four or enough for an entire wedding celebration - and be sure to check out their "Project 52," where they will be featuring a new cupcake flavor every week in 2021!
Rose City Suds
Based in: Gresham
Shop Online at: www.rosecitysuds.com
Made with tons of love and amazing luxurious products, Rose City Suds creates artisan soaps using natural recipes that nourish the skin without being harmful to the environment. Hand-crafted using fair trade goat milk, rich mango and shea butters, as well as natural colorants like clay and charcoal, Rose City Suds soaps are phthalate-free and eco-friendly, packaged and shipped using materials that are recyclable, biodegradable, and/or compostable.
