How to Make a Good Offer on a Portland Home.

advice on home buying

You just found the perfect home and it is priced at $300,000. Now what? Do you offer 275, 300, or even 310,000? The number one factor for making a great offer on a Portland home is knowing the DOM (days on market). If the sellers are asking fair market value and there are no other offers on the table you can follow this rule of thumb.

1-3 DOM (Days on Market)

You will need to offer full price or extremely close to it. Make sure your Portland buyers agent calls the listing agent to check if there are already multiple offers submitted.

4-14 DOM (Days on Market)

You will need to offer within 1% to 3% of asking price. At this point the home is still pretty new on the market and the sellers aren’t going to consider much less than they want. The sellers will generally wait at this point for something better.

15-31 DOM (Days on Market)

With this time frame you can consider 3% to 5% off asking price. The sellers are probably starting to worry they won’t sell their home, but it is still recent enough on the market they aren’t going to consider low ball offers.

32-60 DOM (Days on Market)

At this point you can consider asking 4% to 7% off the listing price. Feel free to get a little aggressive with what you are asking for. It doesn’t hurt at this stage to try for a significant reduction.

60+ DOM (Days on Market)

Be reasonable but at the same time feel free to ask 5% to 10% off the listing price or more, depending on the home and situation. Make sure your Portland buyers agent has checked in with the listing agent before making an offer. At this point the sellers may have already had a price drop or two and you can’t take another 10% off their latest price drop.

Summary

Keep in mind every house and every market is a little different, make sure to rely on the advice of a top Portland real estate agent. Also keep in mind that higher priced (luxury) properties tend to stay on the market longer and you typically won’t be able to ask as much off the top. However, these DOM numbers are a good rule of thumb. Always have your Portland buyers agent check the home’s value, see if there are other offers on the table, and find out if the sellers have made any price drops since they started the listing. With these items and the DOM in mind you will be able to make a good offer on a home in Portland.

March 6, 2013
AUTHOR

Stephen FitzMaurice

Stephen FitzMaurice, Realtor is a top 5% real estate agent in the U.S. and a top 1% agent in the Portland Metro. Principal Broker in Oregon, Managing Broker in Washington he has been licensed since 2003 for residential real estate sales in the Portland Metro area. Call him direct: 503-714-1111.

Pay less (4.5% commission max.) and get more with his top 1% listing team or buy your next home with his excellent top 1% buyer’s team. We work from Salem, Oregon to Vancouver, Washington and beyond. Check out our full services areas on the top menu.