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.  
image:  DC Central Kitchen

Please Note

This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.