Are There STILL Bidding Wars? [Notable Sales]

Surprise! Showings in Boulder have fallen to a trickle, but confident buyers are moving forward.

As we predicted in our video analysis last week, this seems to be happening at lower price points where demand far outstrips supply of available homes. We anticipate that as the "new normal" continues to develop, the market for homes at higher price points will also start to revitalize. In the interim, there are deals out there.

Remember: Intelligent real estate decisions are based on deep market knowledge. There is no substitute. 

Let's take a look at some recent closings. 


Sold Listings of Note

3500 Eastman Ave | $740,000 
A fairly standard South Boulder ranch with a basement, listed at $685,000 on February 24th. Even during this Corona virus epidemic, homes like this attract strong buyer interest because they are excellent platforms for a second story addition and remodel (see 3405 Martin below for an example). 

The location is a key component of this home's value; it's around the corner from Martin Park and only a short walk to the Table Mesa shopping center. The interior was somewhat dated and the kitchen was calling for an update. The basement finish was also poor quality, but it still added value. 3500 Eastman closed $55K over the asking price on March 27th. 

3405 Martin Drive | $975,000 
Listed well below market at $929,000 on March 9th, this two story Pop Top went under contract within days. Keys to understanding valuation are the recency of the addition/remodel and the oversize two car, detached garage. From a location perspective, Martin Drive is somewhat busy, but there are plenty of other recent Pop Tops on the street. The landscaping and curb appeal likely helped it attract strong offers. It sold for $46K over asking on March 27th, less than two weeks 18 days after listing (with a conventional mortgage, not cash, and no concessions). Likely the buyer limited or even waived inspection to lock it down. 

Here are a couple of comps to help support the valuation, both of which were in better locations but both are not nearly as attractive from the curb. One lacked the second garage space.

7212 Old Post Road | $935,000
The neighborhood surrounding the Boulder Country Club is filled with spacious homes on generous lots, most of which were constructed in the 1970's. This four bedroom, three bath is a tri-level (incorrectly listed as a ranch) and looks like it was last updated in the 90's. 

Originally listed at $1,050,000 last April, the owner slashed the price $75,000 in May. It still didn't attract a buyer. On February 10th, it finally went under contract and it closed on March 24th for $935,000 or 4.1% below the asking price. Hopefully the new owner will take some of their cost savings and invest it in much needed updates. 

By the way, if the seller had spent $25,000 to $50,000 in carefully chosen cosmetic updates prior to listing, they almost certainly would have sold it last year and had a higher net. This is why it pays to talk to your Realtor well in advance of listing your home. 

Like this content? Check out our Fresh Listings. For our thoughts on the most interesting and compelling new listings to hit the Boulder real estate market, sign up HERE. 

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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: Pixpoetry
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