Bidding Wars, How High Should You Go?
by Osman Parvez
Last weekend we engaged in two bidding wars on behalf of clients. The #1 question: “How much should we offer?”
As you know from reading this blog, inventory in Boulder is ~70% below the long term average. But not all is what it seems. Once again, it’s a tale of two markets.
Some listings are receiving multiple offers and selling the first weekend they hit the market. Others are stagnating for weeks (or months) without a single offer.
The only way to know what’s worth a premium and what’s not is to deeply analyze market conditions specific to the property, something few of our competitors are willing (or able) to do.
Take a look at the following:
The chart above is an analysis of homes that sold for more than asking so far this year in Boulder. 59 houses under $1MM sold since January 1st. Guess how many received a premium? Only 8, or just 13.5% of sales.
The premium for bidding wars (under $1MM) ranges from 0.7% to nearly 15%. This is a huge range of variability, although most premiums were in the 1% to 3% range.
Which houses are worth a premium and which ones aren’t? What factors drove the two bidding wars past 10%? How do you maximize the value of your dollar in this market?
Sorry, that analysis is for our buyers and sellers only. We love rolling up our sleeves and analyzing market conditions because it helps us better advise our clients. If you’re buying or selling a home in Boulder, call us at 303.746.6896. Make a smarter real estate decision.
p.s. We’ve recently started receiving a lot of calls from buyers and sellers who are represented by our competitors. If you are under an exclusive agreement with another Realtor, don’t call us. Call your agent.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
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We can highly recommend Sophie. Her attention to detail and communication skills are great. Our home was in area that most realtors are not familiar with, but Sophie took extra time to get to know the neighborhood in order to give us quality service. She also brought in a professional photographer to make our home look its best. Even though the listing was in winter, the house sold quickly. With Sophie’s business and people skills, we have no doubt she will be a top realtor in the area.
Osman was a refreshingly honest realtor. He stressed through the entire process that his goal was to make me happy with my home purchase. I greatly appreciated the fact that he never shied away from pointing out the negatives as well as the pluses of different places while leaving the final decision up to me.
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More about the author
Osman Parvez
Owner & Broker at House Einstein as well as primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has appeared in the Wall Street Journal and Daily Camera.
Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. Learn more about Osman.
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