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Tuesday, March 14, 2017

Here's evidence of Denver's hot-hot seller's market!

Remember this listing of Chuck Brown's from a week ago?  It's an 1890 Victoria home on a tiny lot in Denver's Baker Historic District. It was listed at $465,000 and just went under contract for $517,500.  There were over 80 showings and 19 offers.  The winning contract was accompanied not by the typical "love letter" to the sellers but rather by a 49-second video of the young couple sitting on their couch with their dog talking about themselves and their love of this particular house.  It won the hearts of the sellers.  This is a lesson in how to win a bidding war on a listing!

Congratulations to Chuck Brown for how he managed the bidding process.  He counseled his seller not to sell right away, including to a cash buyer who offered $7,500 over full price but required a response within three hours. This buyer then offered $20,000 over full price, again requiring a response within 3 hours.  Finally, this cash buyer offered $506,000 with an escalation up to $516,000.  They probably would have gone even higher, but the seller allowed the couple with the cool video to beat that offer under their own escalation clause.  All in all, there were several lessons learned in this process by different parties!

Are you wondering whether this seller's market will cool anytime soon?  Think about those 18 buyers who lost out, and the 60 buyers who didn't even make an offer.  Don't you think those 78 buyers are still going to be on the lookout for the next listing and will probably offer more than full price next time so they don't lose out again?  That is how I know that this seller's market will last another 1 to 3 years.

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