Competing with Multiple Offers? Wondering How Much To Offer?

Competing with Multiple Offers? Wondering How Much To Offer?

The Boulder real estate market is currently characterized by low inventory and good buyer demand. It’s a sellers market.  Many home buyers are finding that the houses that they are interested in buying are also coveted by other buyers. This leads to a multiple offer situation. A great situation to be in – if you are a seller.  But for a buyer it’s a difficult situation.  To see some perspectives on multiple offers from both sides, read this article. In our area, multiple offers are most often handled in this way- the listing agent receives an offer and then lets all other agents who are showing or have showed the house know that they will be presenting the offer at a certain time and day. If another offer does come in, the first offering party is advised of the second offer and is offered the opportunity to revise their offer.  For the buyer, the information available is usually only limited to the number of offers that will be looked at and when to expect an answer. This year many homes are being listed knowing that there will be much initial interest. They state clearly in the MLS listing that showings start on Saturday and all offers will be reviewed on Monday. Being the first to show the house or the first to submit an offer doesn’t seem to have any advantage. This information gap leads to much buyer anxiety. How much should we offer?  What are the other offers? Are we crazy to offer $X? Will there be another better house coming down the line that is less hassle...
Which Town in Boulder County Has The Strongest Real Estate Market?

Which Town in Boulder County Has The Strongest Real Estate Market?

Yesterday, I shared with you how different price ranges are currently selling in the Boulder County home market.  Today we are going to look at the same indicators but today, we will use the data to find out which town has the strongest real estate market. Under Contract Percentage: This is simply the number of homes currently under contract divided by the number of homes on the market.  The higher the number the stronger the market. The areas that have the highest percentage of homes under contract (Louisville and Superior) also happen to have the fewest homes on the market.  Few homes on the market, steady demand = strong market. Boulder           14% Louisville       24% Lafayette        22% Longmont      20% Superior          25% Mountains      14% Plains                13% Absorption Rate: Absorption rate compares the number of homes that sell during an average month (I use 12 months) to the number of homes currently on the market.  For example if on average 10 homes sell per month and there are 120 homes on the market, the absorption rate would be 12 months.  Another way of saying it would be, that it would take 1 year to sell all of the current inventory.  A low number shows quick turnover and a strong market.  During the late fall and winter when many would-be sellers remove their homes from the market the absorption rates are unusually low.   Again, Superior and Louisville show the healthiest market and the mountains show the weakest market. Boulder           6.9 months Louisville       4.3 months Lafayette        5.9 months Longmont      6.1 months Superior          4.2...

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