How Los Angeles Sellers Can Still Get Great Prices and Close Sales in Today's Evolving Market

Real estate is local and so are practices that work in real estate transactions. With the war on COVID-19 ramping up, it is changing the landscape of how real estate professionals and their clients transact business. I have received many calls from sellers seeking strategies that will net them the best outcome in a rapidly changing environment. Sellers are concerned with unnecessary exposure and are far less interested in engaging lookie-loos or less than serious buyers. Buyers, while excited to still capture competitive interest rates, are similarly concerned with unneeded exposure to colds or "the virus" and they wonder if better inventory will come on market with better prices in the future creating even more buyer uncertainty. Despite these challenges sellers can still capitalize on solid prices and close their transactions. Here is a summary of my most recent advice to sellers:

Price conservatively, provide as much access as possible and use a Realtor with relationships that can be tapped into to find qualified buyers. Pricing has always been one of the most important decisions a seller can make, in a challenging market, pricing wrong can leave a seller with significant losses. A qualified Realtor will give you a pricing recommendation based on properties that are similar to yours in terms of size, number of bedrooms and bath and most importantly characteristics that are attractive to buyers. Also important is for adjustments in pricing to be made based on current and evolving conditions. Pricing ahead in a declining market can be a fatal mistake to getting a property sold. Automated valuations cannot give you a pricing recommendation that is as precise as a Realtor that has seen your home and other homes on market or recently sold. Listing agents may not be able to come to the property before making a pricing recommendation. Shelter in place rules are restricting movement daily and in place of an in person tour the seller may need to Facetime the agent or shoot pictures and video for the agent. It might be helpful to give room measurements also. Videos should include the insides of closets, views from key rooms and even hallways and other places that may not ordinarily be shown. Sellers should disclose all upgrades and defects or deferred maintenance so that pricing can be made in light of these factors also.

Access can be provided virtually in the beginning. Prospective buyers should be encouraged to preview the house online enjoying professionally photographed pictures, Google map views and virtual tours. Prospective buyers should drive by the property in the day and evening hours, research crime databases and Megan's law databases. Evaluate schools, parks, key businesses and commute times to important places like work and school. A new practice may include providing access to a video taken by the agent that shows closet space, hallways and other vantage points that are not necessarily captured in a professional photo session. A good agent can also narrate the video, much like the showing they would give to a prospective buyer in person. All of these preliminary previewing steps will help minimize showings that are unlikely to lead to an offer to purchase.

Realtor relationships can be critical in the search for a qualified buyer who is amply motivated to not only get into transaction but actually close the transaction some 30-45 days later. Agents representing the seller should also carefully evaluate the expertise, experience and ability of the agent on the other side of the transaction. Real estate transactions have a long sales cycle and the longer the sale the more apt the transaction can be impacted by changing circumstances. In this time of uncertainty, selecting a skilled buyer's agent and a qualified and resilient buyer is critical. Experienced agents take the first step by pre-qualifying their buyers. I don't just mean financially pre-qualifying them (that is often the easy part). The buyer's agent has to have earned the trust of the buyer, have prepared the buyer for a realistic experience in their home search, have evaluated whether the buyer is ready, willing, reasonable and able - all four of these characteristics along with an ample dose of motivation to buy is required for a successful closing. Strong buyer's agents have solid buyers in their pipeline and are often searching for great properties daily.

Even in challenging times, sellers can get solid offers on their properties and sell at prices that are competitive and attractive before the market erodes. Marketing a property in this environment will be challenging and may take more time than it has in the past. Reasonable relevant pricing, ample access and early evaluation of the property and solid buyer and buyer's agent evaluations are tactics that allow sellers to make the necessary pivot to accomplish their real estate goals.