Want Multiple Offers During a Flat Market? Consider Selling your Portland, OR Property through a Real Estate Auction

Posted on: May 24, 2007

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It is of critical importance that a reasonable period of time elapse between when the property hits the market to the time that offers will be examined. In the scenario above, the parcel was placed on the market on Wednesday. A condition of the listing contract would be that all offers to purchase will be formally considered the following Monday evening. Cooperative brokers can deliver their clients’ purchase proposals (offers) to the listing broker’s office by 4:00 PM, and they will be opened in the sellers’ presence at 5:30. In the meantime, all brokers participating should be made aware of the total number of offers in the event that they would like to alter or increase their offers accordingly. The prospective purchasers should be allowed supervised access to the property in the event that they elect to conduct their due diligence prior to the opening of the proposals. If they decide to remove any or all contingencies via an addendum, they may do so in an attempt to gain an advantage over other bidders.

If in fact the property is priced below the market, the price will always accelerate upwards. In many instances, it will go above the actual current market value. It will always go above the price for a similar property that has languished on the market for an extended period and has become “shopworn,” a term many marketing professionals are familiar with.

Upon review of the multiple purchase proposals, sellers still have the right to counter one or more offers. In effect, they are dealing in a position of power. The ability to counter any given proposal takes away the primary concern sellers’ have about not establishing a minimum bid. They always have the final say. In the face of a number of proposals, most knowledgeable people take comfort in the fact that the market has established the correct selling price. Advantages for all parties will be discussed in my next post.

Article written by Don McCredie, G.R.I., CRS, is the owner of portlandrealestate.com. He is a Life Member of the Million Dollar Club and a past REALTOR of the Year for the Portland Metropolitan Association of REALTORS. Currently, he serves as the Broker/Owner of EXIT Acclaim Realty and can be reached at 1-800-203-9898.