3 Reasons To Ask Your Realtor For A Lender ReferralYou are one in a million if you have enough cash to buy a home! For most people getting pre-approved for a home loan is one of the first steps in
Tips on Writing a Winning Bid in Portland
The real estate market in the Portland area is a hot seller’s market. It is important that when you go to write an offer on a house, you present the most compelling bid you can.
Homes are going pending in a matter of days, sometimes in as little as a few hours. It is crucial for buyers to submit an offer that has some chance of success. Bidding wars are common in this hot 2013 Portland real estate market, so here are a few tips on writing a winning bid.
1. Give the seller what they want. This is not just about you. The sellers have their needs too, so listen to what they want and give it to them. Its not always about the price, sometimes it comes down to closing date and the ability to be flexible. It may be they are elderly and cannot clean it up as much as you would hope. Be flexible, be friendly, make some concessions and you may just get your winning bid accepted in the hot Portland real estate market.
2. Don’t ask for seller paid closing costs nor to pay for your inspections. In this highly competitive sellers real estate market, the seller does not need to do that. This tactic is used in a buyers market. Unless you are making a killer offer, pay your own.
3. Use an escalation clause. This can be a very effective way of beating out the other guy. With an escalation clause, the buyer specifies a starting price with an amount they will pay over any other offer up to a maximum purchase price. For example, the beginning offer is $200,000 and the buyer will raise the bid by $500 over all the other offers up to a maximum offer of $225,000. But to really make the seller take notice, considering you won’t know about the details of the other bids such as financing or down payment, make the amount meaningful enough so the seller will take notice, say $1000 dollars or even up to $5000 dollars if you want the house bad enough. You may get the house for $220,000 or even less as the seller will have to prove what the other best offer was. This clause can save you some money and help you get the winning bid in the hot Portland real estate market.
4. Cash is not always king. Only when a home won’t finance or a seller has an immediate need does cash look better. Remember in the end, its all cash to the seller. Don’t expect to get a huge price reduction just because you have cash.
5. Don’t put in meaningless contingencies. We put contingencies in to protect the buyer, but in this market, having as few as possible will be in your best interest. Asking for an appraisal contingency on a cash purchase makes no sense if you want the house. So it won’t appraise at the price you are offering, and you want the seller to negotiate the price again? The seller will look at the other offer that is without this contingency. When you are financing a home, it is already in the financing contingency. Don’t ask for minor repairs to be done after the inspection is done. Speaking of home & pest inspections, if there is anyway to get this done before the offer is written, that would be fantastic. Be willing to do a little work yourself. Try and check the neighborhood out before submitting an offer so you don’t need a neighborhood review contingency. By all means, make sure the home and property meet with your expectations, but if there is anyway to get some leg work done before the offer is presented, do it. It will put you ahead of the game.
Finally, your real estate broker has probably been writing lots of offers lately and has won some and lost some. Listen to their advise on winning strategies. Then together you can put together a compelling offer that will have your winning bid in Portland get the home of your dreams.