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Multiple Bids & Appraisals

Updated: Jun 8, 2022

Dear Shanon, How are multiple bids and prices impacting appraisals?


If you’re like a lot of Oregonians who like to hunt and are shopping for a home in the $250-$275k range, then roll up your sleeves and get ready to go “house hunting.” Yes, you may find yourself scoping out the areas you love in search of that special property, but you have to be ready to pounce your target and go in for the deal when the time is just right. But just because your offer wins the bid against three to four (and yes sometimes up to seven or more competitive offers from other Buyers) does not mean the property will appraise for the agreed-upon price.

For example, let’s say the property at 1010 Bermuda is listed at $275,000. Like most Sellers who think their property is worth more than it often is, the Seller may insist on “taking advantage” of the market by capitalizing on low inventory to price the property at $275,000, though Realtor may sing the est home is worth $250,000. Then let’s say hypothetically you offer the full price of $275,000 with your offer contingent on an appraisal since you are financing your loan with a local Lender. Buyer B decides to offer $300,000 but Seller rejects their offer because they know it is way above value and won’t appraise. Buyer C offers $200,000 cash but Seller wants more even though a cash offer does not require an appraisal.


If the appraisal comes in at or above the agreed-upon contracted price, then the deal can proceed as originally agreed. If the appraisal comes in lower and determines the home is indeed worth $250,000, then we are potentially back to the negotiating table since Lender will only finance up to the appraised value. At that point, either party needs to come with cash to the table or start talking about price reduction. Therefore, it’s in everyone’s best interest to price the property right AND right from the beginning to save everyone headaches down the road. And remember that professional home inspection and appraisal contingencies are there to protect all parties to help keep the integrity of the system.

To also help Buyers avoid overpaying for homes, in 2015 new TRID (TILA- RESPA Integrated Disclosure) laws were enacted that added additional layers and requirements for borrowers and the lending process. It also changed the timeframe of escrows from a typical thirty-day closing to a forty-five-day closing to ensure borrowers truly could afford to pay their mortgages.


Your Realtor can provide you with a FREE CMA (Comparative Market Analysis) which is a broad market view of active-pending-sold listings that are comparable to your home. In addition, your customized CMA will show the list price vs. sales price percentage for SOLD properties. This will help Sellers determine what to expect for their properties, and for Buyers to see how much they should expect to pay. For example, the average LP vs SP % for an East Medford 3 bed, 2 bath home priced between $225,000-$275,000 is selling for approximately 99.18% of the current asking price (not original list price) within an average of thirty-two days DOM (Days On Market).


In the end, (as long as it is a fair deal for both parties) it is likely both Buyers and Sellers will want to find common ground and come to terms when both sides have come so far in the transaction. Just remember it doesn’t mean that all appraisals and comps are 100% accurate 100% of the time either, because you are never comparing apples-to-apples and no house, process, or person is perfect, so if you are ready for the hunt, just like in the wild- be prepared! Happy Hunting!








Shanon Pewtress

Real Estate Broker, Licensed in the state of Oregon

Published April 18,



Shanon holds an MBA in International Business, loves writing in her “At Home with Shanon” column that has been delivered to 47,000+ homes in Medford since 2014, has appeared on the Real Estate Radio Show, and was also featured on A&E TV network’s Real Estate Reality TV show.

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