Spring 2006
THE NEW RULES OF REAL ESTATE

“How much under the asking price can I offer?”  -Buyer
“Is there flexibility in the price?”  -Buyer’s Agent
 
It is now official; the market in the Greater Los Angeles area has changed.
 
New rules for sellers:
DON’T FOLLOW AT YOUR OWN RISK!
 
1 Pricing is crucial.  Best to price at the LOWER end of the range.  Gone are the days when you can put your home on the market at 10-20% higher than the last multiple offer sale in your block!  You can still get a GREAT PRICE for your property, but your sales price has to exude value and look under-priced.
 
2 Negotiating is key.  When buyers are coming in with a lower-than-expected offer, your agent needs to negotiate a higher price for you.  This means several counter offers, and a lot of adjustments until everyone’s needs and wants are incorporated into a MUTUAL agreement. 
 
3 Managing Expectations. Saying “I won’t take any less” is counter productive IF you want to sell the your property.  It's important now when you choose a Realtor that you chose the one who focuses on facts, and not on the bravado.  The average time on the market is now 30-60 days.  If no agents call for appointments there is a reason.  The message is:  reduce the price.
 
A NOTE OF CAUTION FOR BUYERS
Properties are still being sold in multiple offers.  It is not yet a buyer’s market.  Prices are NOT DROPPING.  Based on comments by leading economists throughout the country; nothing so far in the economy indicates we are going into a recession or depression for prices to tank precipitously.
 
Now that we are on the same page, call me.  Let’s buy and sell.  There are plenty of opportunities left.

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