I posted an article Saturday from the New York Times about bidding wars returning to the Manhattan market. One couple profiled there had several price opinions for $1.4 million but they heeded the advice of another broker and set it out on the market at $1.1. A bidding war broke out and they sold for $1.6. That’s an excellent result for them, of course, but some buyer obviously got caught up in the frenzy and over-paid. In this market, that’s nuts. Judging from recent resales of older bidding wars here in Greenwich, it seems that no one who won such a war back then is still a winner today. Here’s just such an example:
This bungalow on Indian Field Road, one of our busiest thoroughfares and close enough to Chicken Joe’s to be considered part of Cos Cob, was listed for $749,000 in 2005 and sold for $770,000 to a lucky buyer. Early this year he tried to undo his purchase by listing it back for sale at $799,000 but found no takers at that price. Friday it sold for $600,000 (assessment is $579,000). Out-of-town broker and buyer, by the way.
Lesson for today: if you find a bargain that you want, and others want it too, don’t go overboard.