Friday, February 17, 2006

Bidding War?

by Osman Parvez




Why do we counsel clients to prepare themselves to move quickly? Because good deals don't last long. Here's a real life example.

The other day, I posted about recent $1MM+ sales in Boulder. One of these properties was located at 3173 3rd street in the Newlands neighbhorhood, a much sought after location in Boulder. As I mentioned in the post, that home sold for $2.2MM, a discount of $300K after 9 months on market. A few weeks ago, 3168 3rd street, a home across the street, was listed and sold for nearly $100K more than asking.

The property was on the market for only six days.

I haven't spoken to the realtors involved (they're unlikely to dislose information), and we don't know the specifics behind what happened but two possibilities come to mind. It could be that the seller of 3168 3rd street simply mispriced the property. Although experienced realtors can accurately price property based on recent sales and what is currently on the market, the owner ultimately decides what price to list the property. Its more common to overprice, but sometimes it happens the other way too.

Alternatively, the seller may have intentionally underpriced in order to instigate a bidding war. This strategy is usually accompanied with a fast and hard push of marketing to "get the word out," and is quite savvy.

Property details: Listed at $715,000. Sold at $805,000. Stone and wood frame 2 story home. 0.22 acres (triple lot). 3 Bedroom, 2BA. The listing warned "house sold as is" which is realtor speak for don't bother trying to get concessions from inspection.

We imagine, given the current state of the home in this well-heeled neighborhood, that the buyer will soon remodel or perhaps completely gut and rebuilt the property to taste. We'll keep you posted.


----
Like this analysis?    Subscribe to our client research report.     
Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

--
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. 

No comments:

Post a Comment