There are forty-one homes on the Palos Verdes Peninsula priced under $1,000,000, not including the Eastview area of Rancho Palos Verdes. Three years ago it was difficult to find three homes priced for less than one million dollars in this California coastal community with an award winning school system.
Homeowners are growing weary of their current real estate ride; instead of the robust double-digit equity increases they racked up annually during the upside of the real estate cycle, they are facing declining values and dwindling equity during the downside of the cycle. The slide down is not nearly as much fun as the climb up, and the best we can hope for is a soft landing when we reach the bottom.
The best way to cope with change is to expect it, recognize it and adapt to it. Like many other assets, real estate values are in a constant state of flux influenced by economic, political and other forces beyond our control including Mother Nature! For most homeowners the gains were "paper gains" and not "realized gains." But like a stock that soars and then sinks before it is sold, the loss feels very real.
On the positive side, the real estate slowdown is just that, a cooling off from the hot market our area enjoyed for several years. It has not come to a grinding halt. As a seller, you may have to consider accepting an offer with contingencies unacceptable only a few years ago. As more homes come on the market and remain there longer, buyers have more choices. They have time to shop. Consequently, they will be looking for the properties offering the best value, terms and conditions. From the seller's standpoint, the market has become much more competitive.
From the buyer's standpoint, the pressure to write an offer within 24 hours of a home being listed has all but vanished. (There are exceptions to this rule--just last week my buyer's offer was one of three great offers submitted on a new listing. All offers were over asking price.) The frustrating situation of being one of several offers is occurring less often. There is no question, buyers have removed themselves from the bidding war frenzy and are shopping for value, value, value!
What a difference a year makes. Serious sellers are paying attention by pricing their home based on recent sales in their neighborhood, not on speculative dreams. Serious sellers are prepping their home for sale with clutter removal, general cleanup, repairs, replacements, paint and a healthy dose of patience. In short, the buyers are being courted with pristine condition, competitive price and outstanding value.
Serious buyers are meeting with lenders to discuss financing options prior to submitting an offer. Serious buyers are prepared to walk away from an overpriced property if they even bother to look at it. Today's savvy buyer eliminates many homes on price, condition and location without ever stepping inside the front door. Shopping for a home is serious business, not a pastime, for today's selective buyers. It is a major investment and a large asset that is expected to provide shelter, provide some tax relief and perhaps most importantly, be worthy of being called home.
Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800
South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.
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