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On March 28 of this year, the house was put on the market asking $1.689 million. Apparently it didn't receive an offer deemed acceptable by the seller; and one month later the price was cut significantly (by $500k) to $1.189 million.
Lo and behold, that strategy worked. They seemed to have gotten multiple offers and ended up selling for $1.690 million, $501k over asking and $10k over their original asking price.
Sometimes I am reminded that I don't understand this market.
Same thing happening in Denver. There's a bidding war on every house. This is not a rational market. These are people making decisions based on raw emotion ("I just have to have this place!").
Lord let the crazyness spread to my area! What's driving the market in Denver? I understand the Bay Area with all the tech jobs but I don't get Denver or even Austin.
Lord let the crazyness spread to my area! What's driving the market in Denver? I understand the Bay Area with all the tech jobs but I don't get Denver or even Austin.
Denver is actually a pretty cool city. But it seems like everyone and their mother is moving here. Small bungalows are going for $300k or more. Larger houses well outside the metro are pushing $300k+ as well. People are just not acting rationally right now. They just want it so bad, they don't care how much they end up paying for it or how broke they'll be afterwards.
Lord let the crazyness spread to my area! What's driving the market in Denver? I understand the Bay Area with all the tech jobs but I don't get Denver or even Austin.
Denver and Austin are burgeoning tech hubs, much like Seattle. It's the spillover tech industry.
And, unfortunately, what the OP describes is the entrenched market strategy in the Bay Area. Since something like 75% of homes get multiple offers, most people submit bids that are 20 to 30% over asking. So people probably passed on that property because they weren't willing to bid above $1.689m. When the price dropped, they submitted what would be a typical bid -- above asking. You have to know the dynamics, which are nonsensical if you don't live here (and even if you do!)
On March 28 of this year, the house was put on the market asking $1.689 million. Apparently it didn't receive an offer deemed acceptable by the seller; and one month later the price was cut significantly (by $500k) to $1.189 million.
Lo and behold, that strategy worked. They seemed to have gotten multiple offers and ended up selling for $1.690 million, $501k over asking and $10k over their original asking price.
Sometimes I am reminded that I don't understand this market.
This is routine in hot markets. Most list prices are deliberately low to drive interest and 'bidding wars'.
People assume the seller is expecting the house to go above asking so don't bother submitting full-price offers because they figure the offer won't be accepted. This works against sellers who list at the price they actually want to get.
Lord let the crazyness spread to my area! What's driving the market in Denver? I understand the Bay Area with all the tech jobs but I don't get Denver or even Austin.
Those two cities are frequently mentioned as being escape routes for people leaving the California housing market. So folks move in from the LA/SanDiego/San Francisco real estate insanity and throw their $ at something that is a raging deal compared to where they have left. And those are also two cities where being in the closer in city is much more valued. I've visited those California cities and vastly prefer Denver (atleast the urban area) so I can see why it draws its population. Especially among younger people who have little hope of leading a quality lifestyle in the Bay area.
Same thing happening in Denver. There's a bidding war on every house. This is not a rational market. These are people making decisions based on raw emotion ("I just have to have this place!").
Or I have to have "a" place. Inventory is low.
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