Portland is a seller’s market. The “rules” that we’ve used in the past for comparitive market analysis tend to leave us with an estimated sales price lower than the current market will bare. One way we can address the issue is through Prudential Value Range Marketing. Download pvrm_flyer.pdf Click for Virtual Tour
The idea is that the property is not listed at a fixed price but within a range. The seller will respond to all offers within the range. We have just listed our personal house at 9610 SW Boones Ferry Rd. between $299,900 and $338,876. The 876 at the top range indicates that it is a PVRM listing. The listing price goes into RMLS at the high end of the range.
Wouldn’t the buyer just offer the lower end of the range? Maybe. But the buyer could expect the offer to be countered at a price somewhere within the range, just like an offer on a fixed priced listing and the buyer could lose the property to a better offer. The idea is that there is an open negociation, which is better for both the buyer and the seller. During an open negociation either party can walk away. It isn’t until notification that the offer or counter offer has been signed and accepted by all parties, in writing, that the contract is binding. This means that the seller could get another offer, walk away from the open negociation and accept the better offer. This is true for any real estate transaction in Oregon.
There is nothing preventing the listing from selling for a price above the range. An over-priced property is not going to sell. A low-ball offer is not going to get accepted. If the listing doesn’t sell, the price can be dropped to fixed price within the range which will show as a price drop in the listing’s history. Ultimately, the market determines the sales price.