Monday, June 22, 2015

PAY Below Asking Above $1MM, SELL Dumpy Houses Below $600K [Analyze This]

by Osman Parvez
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Buying or selling a house in Boulder? This is what the market looks like right now. 

At prices below $600,000, more than 80% of available inventory is under contract. This is the price range where we're seeing many buyers overpay for marginal properties and where we advise the most caution for our buying clients. Conversely, it's also where we advise our sellers who own marginal properties to liquidate in order to buy higher quality assets.  

Percentage under contract drops as a function of increasing price, more or less as you'd expect. There's a bit of an anomaly in the $900 to $1MM price point. Above $1MM, the market shifts more towards buyers with less than half of the existing inventory under contract. Above $1.5MM, it's a buyer's market.    

If your agent advises you to pay your "highest and best" (i.e. overbid) without showing you the stats, get a better agent

The chart above is from our latest research report (published last week). The research report also shows negotiated discount/premiums paid, and the percentage of properties which sold over asking during the last twelve months. In addition to the house market in Boulder, the report also covers the attached dwelling (condo and town home) market.   

A deep knowledge of market conditions is the key to intelligent negotiation. Sign up for our research HERE. Just remember that our best research goes to our clients first.

Our Research Priority 


1. Clients under Buyer or Seller Agency. Our most actionable research on market conditions, customized to your real estate situation. This research is real-time, created to answer your questions on market conditions and negotiation strategy as we prepare to write an offer or list your property.

2. Research subscribers (sign up here). No ads, no spam. Sometimes the research will be current, sometimes it will be several weeks old. Often it was originally prepared for our clients. Remember, our first focus is always our clients.

3. The general public via this blog. Research reports will eventually make their way here, but often several months after original publication. 


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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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