How To Prevent A Bidding War

There are two main ways to prevent your property from enjoying the benefits* of a bidding-war:

One, price it insanely high and then cling to that price for months and years. This never,ever fails to get the job done of keeping the property from selling quickly or at all.

The other tried-and-true method of preventing bidding-wars is to severly limit the number of potential buyers who see your property, either by having your property handled as a “pocket listing” by a broker, or trying to sell it yourself, with a newspaper/online ad. Either of these methods will limit the number of showings by at least 75%, and that ought to be enough to do the trick.

All of this is, of course, my sarcastic way of pleading with you NOT to do anything to prevent a bidding-war! They are wonderful things, whether it’s your house we’re talking about, or that awful Andy Warhol print left to you by your great uncle. Let the market do its work, I’m begging you.

Featured below, is the latest bidding-war example. “Boblink Lane” is little known among non-brokers, but it’s one of those great little, sort-of-close-to-Town, but not quite mid-country, streets that the cognoscente will pay up for. And pay, they did, in this case, $505,000 over the ask. Came on December 17th, had a deal by January 28th, just 42 days on market. This is the way real estate should be sold.

I asked (notoriously secretive) selling broker Pam Chiapetta whether her customer was going to build a spec house or custom, and naturally, Pam answered “neither”. So your guess is as good as mine (Pam has this annoying habit of protecting her customer’s privacy…what a concept!)

27 Bobolink Lane, Greenwich, CT

List: Ward Davol

Sell: Pam Chiapetta

* It’s not just about more money, by the way. Bidding-wars also cause the buyer to drop all contingencies and generally do absolutely anything to keep you happy. Doesn’t that sound appealing?

27 Bobolink Lane (off North Maple), asked $3.995M, got $4.5M! Jumping Jehoshafat!

27 Bobolink Lane (off North Maple), asked $3.995M, got $4.5M! Jumping Jehoshafat! Click on that BingMaps link below, for the aerial view (and then click on the house to make the label go away)

http://binged.it/10RjExf

10 thoughts on “How To Prevent A Bidding War

    • Anon:
      Well, we think that the Bobolink sale was a “land deal”, because neither the house nor its cottage was all that impressive, but, when I asked selling broker Chiapetta about her client actually using the existing buildings, she wouldn’t even admit to that!

    • a:
      Yes, the 70 Meadow Road lots, if they are 30,492 sq.ft. each, will indeed be “a lot and a half”, with an FAR of [30,492 X .225 = ] 6,860 sq.ft., of above-ground, finished living space.

      • anon:
        27 Bobolink’s 3.13 acres (136,343 sq.ft.), multiplied by the R-2 zone’s FAR multiple of .09, gives you a rather generous FAR of about 12,271 square feet, above ground.

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