This is Not Your Mother’s Real Estate Market
I admit it. It has been pretty easy to sell real estate in Playa Vista from 2011 to 2017. There are things I would do to prepare properties to show better, create the best leverage, negotiate the best deal, and create the best experience for my clients, but honestly, some sales that were layups that made me look good. Bottom line…if you put something up for sale in that market, as long as the price was in the ballpark, you would get offers.
I’m afraid to say it is not that market anymore. As of this writing, there are 41 condo and single family listings in Playa Vista on the MLS and many more being constructed that are not listed. Buyer affordability has been greatly reduced due to higher prices, higher interest rates, and fewer available tax deductions. For those who are still shopping, there is generally less urgency due to the long-awaited return of supply and potential for having to live with your purchase decision for more than a couple of years before you can sell for a profit. Selling homes is no longer easy, which makes hiring a true craftsman with local experience and perspective, even more important.
I would like to share a short story with you. I started in the real estate business in Playa Vista in 2006. Back then, following an explosive run-up in prices, everyone and their mother was becoming a real estate agent. While I admit I was one of the masses; despite dedicating my life to my professionalism and knowledge and working full-time, I was literally losing business to people’s mothers (and not the experienced real estate professional kind). It wasn’t just mothers, I was also losing business to hairdressers, seller’s kid’s baseball coaches, and friends with a real estate license from hundreds of miles away. Residential real estate was the “side hustle” before Uber came around.
While there is not an exact correlation between the increase in unskilled or part-time real estate licensees and decrease in home values, prices started dropping sharply shortly thereafter. Most of this was due to market conditions, but some of it was due to the agents’ lack of marketing and local knowledge, poor preparation of properties prior to market, and an inability to adapt to changing market conditions. Properly represented properties during this time outperformed the rest and most of the unprofessional or part-time players left the business during the downturn.
Some of the same things are happening now. We have had a strong seller’s market for over six years and now it appears we are coming to the end of this cycle. Supply is increasing and the number of real estate licensees is as well. It is more important now than it was a year ago to work with an experienced local expert to properly and professionally market your home in a more competitive market, as it is no longer going to sell itself. Choosing an honest agent who doesn’t simply tell you the price you want to hear in order to gain the listing is also crucial. I am excited to share my enthusiasm for the Playa Vista neighborhood and make your property stand out to potential buyers. I have the perspective of going through an entire cycle where prices dropped by 40% and then rebounded by increasing over 100%. Before you hire your Mother to sell your home, please call me!