How high over asking price will it go?
This is the question I hear right now the most from my buyers. The spring real estate market had very low inventory and buyers needed a high frustration tolerance on their adventure to purchase their own home. Homes often went under contract over the weekends and sometimes it was difficult to get a showing scheduled.
A situation like this shows what it means that the market decides the sales price of a home. With a reasonable price (compared to the actual market situation) and an attractive condition of a home you almost can't price too low since this attracts so many buyers that their multiple offers drive up the price. Right now, I see that homes in the "suburbs" from Boulder County, from Erie to Broomfield and Westminster sell mostly between $5,000 to $80,000 over asking price. In Boulder seem to be no limits.
There is very high demand for turn-key homes or homes with a special charm. Buyers love high and vaulted ceilings, yards with mature landscape, hardwood floors and white walls, modern and trendy light fixtures, updated kitchen and bathrooms with fancy tiles and faucets. These features will drive up the sales price. Buyers can forgive if there is perhaps one unrenovated bathroom or some colorful wall in the house but if it checks all other boxes they are willing to pay top dollar.
Here are some examples of homes which sold far above asking prices.
275 Maplewood Dr, Erie
asking price: $550,000 sold for: $667,000
3869 W 99th Pl, Westminster
asking price: $550,000 sold for $695,000
4540 Comanche Dr, Boulder
asking price: $950,000 sold for: $1,102,000
160 Bristlecone Way, Boulder (Boulder mountains)
asking price : $1,349,000 sold for: $1,544,000
2235 Hillsdale Cir, Boulder
asking price: $1,840,000 sold for: $2,225,000
Buyers, be prepared: To compete in a market like this you need to be realistic, know what you want and act fast. First step is to contact with your lender, get approved (not only pre-approved) and discuss with your lender your options of appraisal gap coverage. Consider reducing inspection objection to health and safety issues only and bring your highest and best offer first.
Since it is a seller's market, sellers can make high demands. Appraisal gap coverage became a crucial part of successful offers in the last few months. This means that sellers are asking that the buyers cover the difference between the agreed upon sales price and the appraised value in cash in case the appraisal comes in lower than the sales price. This puts buyers with more cash in a better position with offers.
Reducing the inspection objection to health, safety and structural conditions only is another way to please a seller but the inspection itself should never be waived.
RealVitalize, a Coldwell Banker program developed for their clients
RealVitalize is a program developed from Coldwell Banker Realty for their clients who would like to update their homes before bringing it on the market to receive the highest possible sales price. This program is really amazing and I have had clients use it very successfully. Sellers do not need to pay the costs for the home improvements until closing when the invested amount will be withdrawn from the proceeds. There are no fees or interest charged and - of course - it is the sole decision of the seller what kind of updates they would like to do.
Please don't hesitate to contact me if you would like to talk about this market, how to prepare a home for sale or any other real estate needs you have.
Coldwell Banker Realty