The new year has seen a notable uptick in buyer activity, with the low mortgage rates being the primary motivator for homebuyers to enter the market. Inventory in the Portland Metro area, however, has remained quite low, particularly with regard to detached single-family homes. The high demand and persistently low supply has meant the continued prevalence of multiple offer situations on well-priced listings, which means that many buyers have felt it’s difficult to find a “deal.”
Rarely, however, buyers might encounter a listing where the price is so low that it seems like a deal is finally available. Unfortunately, this is a strategy by a handful of listing agents to attract a disproportionate amount of attention to their listing and potentially pick up a few buyers as a byproduct of the auction-like chaos this low pricing can create. While this strategy is advantageous for a listing agent, it’s often a disservice to everyone else. Their sellers have to sift through dozens of offers before arriving at the offer that nets them the appropriate value (which they would have received, with far less fuss, from a more accurate list price); buyers’ agents struggle to carve out private tours for their buyers to view the home due to the overwhelming interest; and buyers themselves are the most disadvantaged, as they have to contend with a tide of competing buyers and are often discouraged by their low odds in this offer environment.
All that is to say: if you see a list price that seems too good to be true, it probably is! Do keep in mind that this an uncommon pricing strategy, and there are good houses available for buyers of all profiles; however, I have had to work with a few buyers through the offer process on these underpriced listings, so it’s something where I wanted to provide any counsel I can. If you have any questions about a home’s value – or appropriate listing strategy – feel free to reach out! I am happy to provide any and all advice I can.