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Wednesday, Apr 24, 2024

Agents Adjust to Buyers’ Demands, Preach New Reality

In today’s housing market, there’s no such thing as an easy sale. Realtors in the San Fernando Valley region say they are hustling for every deal. They know the score: Bank loans are becoming increasingly harder to get. Short sales are rampant, and take forever to close. Property inventory is low. Clients are more demanding, too. “I found that in a good market, every house sells,” said Carol Wolfe of Rodeo Realty in Calabasas. “In a bad market, buyers are not so forgiving and those houses sit around — they are really picky.” Homebuyers are more selective about a home’s location. For example, they don’t want to be close to schools or freeways, Wolfe said. Clients also prefer to avoid a home that needs a lot of work or updating. “Now it has to be discounted if it has any kind of flaw,” she said. “The price has to reflect what the home is missing otherwise the buyer will buy the house around the block.” Tracey Thomas of Keller William’s Realty said homebuyers’ psychology also has changed in the aftermath of the housing crisis. The “bigger is better” mentality is a thing of the past, she said. “People are now asking ‘How much is (the) electricity going to be?’” Thomas said. “They’re much more price-conscious.” Agents say sellers have that price-conscious mentality, as well. “Every seller always thinks their house is the best,” Wolfe said. “What they need to look at is what has sold.” Educating sellers on realistic pricing is important, she said. “What we’re doing with sellers is letting them know we are in a completely price-driven market,” Wolfe said. “If they don’t price it well, it won’t sell.” Roseann Zarasua, 44, and her husband Marty have the daunting task of being both a buyer and a seller in a challenging market. The couple decided to sell their West Hills home and relocate to the Santa Clarita Valley in February, after Marty’s job transferred him to Edwards Air Force Base. After looking at the comparable properties in the area, the couple settled on a selling price of $399,950, which was considerably less than what they envisioned. “We knew the market was bad, but we still went into it with an unrealistic view,” Zarasua said. “I thought our house would sell in two months. Despite an aggressive selling campaign, the couple failed to receive acceptable offers on the property, and on the advice of their real estate agent, decided to rent out the property until the market improves. Meanwhile, the couple has been living in a state of transition, and is working on buying a $425,000 home in Santa Clarita. The bank must approve the sale, she said, noting the duo has been waiting for six weeks for an answer. Zarasua said the rent from the couple’s existing home will not cover the mortgage on their prospective home. She said the couple plans on revisiting the idea of selling their West Hills home in three to four years.

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