The monthly DTLA sold homes report has arrived. The month of May has revealed panic selling in Downtown L.A. as many buyers and sellers stayed clear of the market. Only 16 residential properties were transacted, and they sold faster, and at lower prices, indicating that a few savvy investors took advantage of the declining property market by demanding home price concessions from motivated sellers. #realestate #dtla #homeprices
The median Downtown LA home price dropped from $574,500 in May of 2019 down to $526,000 last month. Those few sellers who were willing to sell were in a bit of a rush. The average property sold in 32 days compared to 37 days for the same period last year.
The L.A. Loft Blog continues to forecast falling real estate prices for most months in 2020.
Reader Questions:
Q: What is happening at chase tower downtown la 1100 wilshire? A: The luxury highrise loft condo building HOA may still dealing with several lawsuits. There’s 10 units for sale and several for lease. For lawsuit details, request a litigation search.
Q: Hello, My name is Van im an artist and filmmaker living in LA for the last 12 years. Always dreamt of having a big live/work in the city but could never afford it. Im looking for something in the low 2k’s per month, and i have a small dog. must include parking as well. im flexible with price. let me know if you can show me a few places, i called twice today but couldnt get thru to anyone. thanks so much. Van A: Thank you for your request. I may not currently have any listings in your price range, but you will find some on the LA Loft Blog, then I can tell you the contact info of a listing agent.
Q: Is the middle class really moving out of California? A: Yes, Approximately 388,000 net persons moved away from California in 2019, with the majority of them middle income couples and families.
Q: Are we going to have a housing apocalypse? A: Yes, something like that. The word “apocalypse” may be a bit dramatic and fanciful, but housing is one of many sectors that shall experience tremendous shocks and cascading crises due to the radical, unprecedented global economic shutdown. The L.A. Loft Blog, which predicted a deadly respiratory plague, was the first to warn that the cure for coronavirus (AKA mass hysteria and global panic) shall be much worse than the disease. 600 doctors later agreed, IMF International Monetary Fund and CNBC are all on the same page, warning about unexpected, extremely detrimental economic effects of lockdown.
Comprehensive negotiation required for home sales during coronavirus Force Majeure
With L.A. real estate rocked by pandemic, economic crash and non-performance due to coronavirus Force Majeure, only 78 out of 217 listed properties sold successfully in the last two months in Downtown Los Angeles and the surrounding loft neighborhoods MLS areas 23, 42 and 1375. In the today’s market besieged by panic and collapse, unique selling strategies and marketing tactics are required in order for home sellers to achieve a fast, smooth home sale for the highest selling price. Here are some of the most successful home selling criteria for the covid-affected housing market: | Blog Video
Track record of high sale amount to asking price
Faster sale time to outpace falling market
Guaranteed Sale Program on terms of seller
Large database of buyers looking for an urban home with character
Advanced negotiation methods
Get What You Want in Real Estate Through Negotiation
In times of difficulty and uncertainty, negotiation is one of the key tactics that prevent escrow from falling out, and allow for a smooth, successful home sale. Based on lessons from Stuart Diamond’s Best Selling book “Getting More: How You Can Negotiate to Succeed in Work and Life,” here are some of the elements of negotiations credited for saving the deal on a current loft condo transaction. Use these tactics for getting more:
Start by being optimistic. With an intention to make your home sale successful. Start with a principle that you can get more. No matter who you are. No matter what your personality. You can be an excellent negotiator. You can get more. Make human contact. Talk in person when possible, otherwise by video conference or voice phone. Negotiation is at the heart of human interaction. Every time people interact, there is negotiation going on verbally or non-verbally, consciously or unconsciously. Negotiation occurs constantly, while driving, talking to family, doing errands, you can’t get away from it. You could only make a choice to do it well, or do it poorly. Have a goal in mind. Know what you want at the end of the negotiation, that you don’t have at the beginning. Get to know the perception sensibilities needs and personality of the other party. Find out who they respect and who can help you. How do they form relationships? Put yourself into their shoes. Don’t use raw power or brute leverage, or you will receive retaliation. To be most effective and persuasive, you must get the other party to want to do things. Make emotional payments by using empathy. Apologize when necessary, offer them things. Every negotiation is different. Whenever you encounter animosity, or if you have a hard time negotiating, your response should be to say “Tell me more,” so that you can learn what they are thinking, feeling and wanting. That will better persuade them. Incremental persuasion works best. People often fail because they ask too much all at once. They take the steps that are too big. They take a bridge too far. That scares people and makes the negotiations more risky. Take small steps, lead people from the pictures in their heads to your goals. Lead them from the familiar to the unfamiliar at one step at a time. When there is little trust, it is even more important to be incremental. Take small steps, and test after each step by asking if they are on board. Following you if they agree. If it makes sense for them. If it works for them, you can narrow the gap incrementally.
Trade things you value unequally. For instance, one person wants a condo while the other wants to get rid of the condo. All people value things unequally. Some want money, while others want convenience and time-savings. First, find out what they care about and don’t care about. Big and small things: important and seemingly unimportant in the deal and outside the deal, both rational and emotional. Then, trade off items that one party values, but the other party doesn’t. Find their standards. What are their policies? How do they make decisions? Call them out when they are not consistent with their policies, especially when dealing with hard bargainers Be transparent and constructive. Do not be manipulative. Do not deceive people. They will find out. And your long-term results will be poor. Be yourself. Do not try to be tougher or nicer than something that you naturally are, because people can detect fakers. Being real is credible, and credibility is the biggest asset when negotiating.
If you’re in a bad mood, too aggressive or you don’t know something, then say so. It will help alleviate problematic issues. Your approach and attitude are critical. There’s no need to be too soft, and no need to disclose everything up front. Just be honest and real. Always communicate: When there is an obstacle or disagreement, state the obvious, frame the division. Most failed negotiations are caused by bad communication or none at all. Don’t walk away from a negotiation unless all parties agree to take a break or unless you want to end the negotiation. Not communicating means not getting information. Threatening or blaming the other party just results in their responding in kind. The best negotiators state the obvious. If you’re not getting along, then say “we don’t seem to be getting along”. Give them a vision of where you want them to go. Find the real problem, then make it an opportunity to find or fix the real underlying problem in the negotiation. Ask “what is really preventing me from meeting my goals?” Probe until you find the real problem. Get into their shoes. Turn problems into opportunities. Embrace differences. Most people think that different is worse, risky or annoying. Uncomfortable, but different is actually much better as it leads to a more profitable and more creative opportunity by allowing more ideas, more options, better negotiations and better results. Asking more questions about differences will produce more trust and better agreements. Make a list of negotiation tools. Again, start by putting a picture in their head and taking small steps to get to your goals.
In a recent loft transaction, the buyer and seller had to overcome many issues that would commonly be seen as unsurmountable and impossible. Through careful analysis of the problems, goal-oriented negotiation created a path to a successful outcome.
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