How’s the housing market in Palos Verdes? I’m often asked this question and the truth is the answer depends on several factors:
1) Are you selling or buying?
2) What area are you asking about?
3) What price range are you interested in?
4) What is the condition of the property you wish to sell or buy?
In other words, it is difficult to give much more than a general response until I know the underlying details about the location and property in question. For instance, last week a Palos Verdes property received 21 offers. It had a lovely view but was in original condition. It was also priced under $800,000.
Another new listing states, “No Contingencies.” This is great for sellers but risky for buyers since there will be no inspection, loan or appraisal contingency. It’s the ultimate AS IS sale. When there are multiple offers a seller often tips the balance in his favor by eliminating contingencies that would allow the buyer to cancel the contract based upon discoveries. When there are no contingencies if the buyer elects to cancel the contract the seller can keep the initial deposit. The buyer’s safety net is no longer there.
It’s a tough market for buyers in the under $1.3M price point at the moment. Inventory is limited and the competition is keen–some might say crazy. My advice is to stay calm and try to avoid the bidding wars unless you cannot live with the house–then be prepared to compromise on terms and price.
On the other hand, if you are selling or buying a luxury home that market is moving at a slower pace. Palos Verdes has several different micro markets and each market has its own nuances. If you are thinking of selling or buying in PV it’s important to know the market you’re entering. Market knowledge is the key to obtaining the best outcome whether you are a seller or a buyer.