To Sell Now, You Have to Step It Up

DTLA is a tricky market. First you have to love the city life. You have to love a little grit and the excitement of an ever-evolving area. Think Brooklyn before what it is now. Among brand new skyscrapers and stunning penthouses, you have vintage lofts, the highest concentration of old turn of the century buildings, and a Walkscore of 98. And Union Station where all metro lines meet. There are pop-up art galleries are happening all the time. You have some of the best small restaurants that were born in DTLA, like Sonoratown, Bestia, Factory Kitchen, Maccheroni Republic and Eggslut. And the audience is hip, eclectic, hate "normal" and love community. 

So what to do to sell your place when the real estate market is picking up, but the momentum is still not quite there yet? You have to step it up.

Some things you should be prepping before going on the market

1. Staging. Duh. Especially with open plan lofts, you have to stage it because a lot of people don't seem to know where a bed goes, or where to put a sofa in a rectangle room.

2. When staging, try to go very minimal, neutral, and organic. Meaning light and soft colors like beiges, whites, light browns. Put an-off white throw blanket over a dark sofa. Get a light colored rug to cover up dark floors. Get rid of the polkadots drapes, etc.

3. Declutter. Just hide it away. It's ok to have your cabinets stuffed with things, but please just hide it away. Rent a storage space if you need to.

4. If you can, hide personal photos, religious objects, trophies, wall plaques, suitcases, sporting gear and shoes. 

5. Swap out lighting. No more silver IKEA track lights please. Just pick out something modern, you can get a nice looking pendant on Amazon for under $100. 

6. Ensure windows are cleaned. They should be spotless for showings. It matters in a condo/loft as it's the only outdoor visual one gets in a building, so clean the windows.

7. Update bath and kitchen fixtures. Just spend a couple hundred on a faucet and showerhead. It makes a difference.

It's Time to Get Real About 2023

Let's face it, selling as-is, 20% over asking and within 7 days, is so 2021. 2022 has been humbling to a lot of sellers, and the ones that were aware of the softening market, and the obvious outcome of doubling interest rates, still won out. These sellers priced accordingly, prettied up their properties, staged them, and still sold at or above list price before the market fell further. 

And there will be more slowdown in 2023. I don't think there will be a massive contraction, but unless there is a big interest rate cut, the housing market will stagnate. Don't get me wrong, there are still a lot of wannabe buyers out there, but the rates are hindering them, and the recent price slowdowns are not enough to get them to make the move just yet. 

So if you're needing to sell, upgrade to a larger house, sell to relocate, etc., it's time to get real. Be prepared to pay for rate buy-downs for buyers, spend a couple thousand on painting or staging, and at the very least, declutter. And be real about what's going on in the market. Just because your neighbor sold for $1M three months ago, doesn't mean that your similar property is going sell for the same or more 3 months from now. 

Getting Ready to Sell Before Winter--and Another Interest Rate Hike

The window to sell is closing, so you want to get the place listed asap if you want to cash out this year. The rule of thumb is to have the place listed now, so you have time to get offers and into escrow by August. That way, you close on the sale before activity really starts to die down.

What to do to prepare to sell, in order of priority

1. Declutter

2. Paint the entire place, including ceilings and cabinets, if needed

3. Change out simple and easy things like faucets, cabinet hardware

4. Refresh bathrooms with a nice new mirror

5. Stage an empty place

6. Replace vanity in bathroom

7. Replace kitchen cabinets if within budget

When Is It A Good Time to Sell, When Is It A Good Time to Buy?

Everyone can look back in hindsight and say "I should have bought in the crash." Then why did so many people jump ship and short sell in the crash? It's because everyone has different motivations, different circumstances in their lives.

There's no really right answer unless you know for sure where the market is heading, and if we could all predict the future, all of us would be in the 1%.

The best answer to the question of when to sell or buy is when you can afford to, and it's the right property.

If you can afford a house at what we're calling the "height of the market," then you should be fine. Even if the market dips, you can afford the payments (Please people, get a 30 year fixed and you're mortgage is like rent control for 30 years). Some people have bought at the height, but got some amazing interest rates, so they ended up just as good as other buyers who got locked into a higher interest rate at a slightly lower price.

If you're selling because you need to, or you want to upgrade, or you want to cash out on equity and get a better investment, go for it. We're at new heights so if you're looking to sell, then duh, this is the best time. If you're not needing to sell, there's no real reason why you should, and it's not like you're needing the cash right now, then hold onto it. You can always rent the place out for killer rents--just as prices are high, rents are even higher than ever before.