Is 2020 the year that you’ve decided to sell your home? It may seem like you have a big task ahead of you, but I’m here to help you get the results you want. Before you get started, you can educate yourself about the challenges sellers in Hermosa Beach might face in 2020. Southern California has a market that is drastically different than other parts of the United States, and Hermosa Beach is no exception, thanks to its weather, access to beautiful beaches, low crime rates, and excellent public schools. I’ve culled data from a recent survey of 500 leading real estate agents to help you get ready to sell as we head into the early part of 2020, and noted some specific figures for Hermosa Beach that you’ll want to keep in mind. HomeLight’s top agent insights survey from Q4 2019 has helpful information for you to prepare for a successful home sale.
But what about Covid-19?
As the world hunkers down at home facing the global pandemic caused by Covid-19, you might be tempted to cast your plans to sell aside and stay in your current home. In fact, 41% of agents said they’d seen seller activity decline in their markets, according to a March poll from HomeLight. Among those sellers forging on with their real estate goals, 66% said they are taking increased measures to protect their homes — 32% are halting open houses in favor of a showings-only policy, while 21% are asking buyers to wash their hands or use hand sanitizer, according to the survey. But some sellers don’t want to take the risk, and 22% of survey respondents said they have seen sellers take their homes off the market in response to coronavirus concerns.
Find a happy medium
If you have decided to forge on with your plans, despite Covid-19, one of the key challenges to know about this year is that you won’t necessarily be working in a seller’s market. Agents in HomeLight’s survey reported that the sellers’ market peaked in Q2 2019 and gradually shifted toward more balanced conditions in Q3 and Q4. Predictions for 2020 suggest that the market will continue to soften. Nearly 44% of agents anticipated balanced conditions for their local market in 2020 while 15% said they’ll be moving towards a buyer’s market. Real estate data from Zillow points to a somewhat hot sellers’ market in Hermosa Beach, but that could change as we proceed further into 2020. Hermosa Beach home values have gone up 6.8% over the past year and Zillow predicts they will rise 5.1% within the next year.
Hermosa Beach buyers may be dealing with “sticker shock” with the median list price for homes in Hermosa Beach at $1,860,000 and the median home value at $1,547,854. In this kind of market though, one factor to be aware of is overpricing. In the HomeLight survey, nearly 50% of top agents said the biggest challenge people faced pricing and selling homes in 2019 was the temptation to overprice. As you prepare to sell, you’ll want to stay aware of market conditions that will impact you and your agent’s pricing strategy.
A deeper look into home repairs
Another concern with overpricing is that it can lead to buyers requesting more repairs on your home before they close on the deal. In the survey, 14% of agents reported that requests for repairs — for issues like structural defects, code violations, or safety concerns —presented the biggest hurdle to selling a home. Especially If you want to sell your home quickly, you want to avoid making repairs after your home goes on the market.
Rethinking the open house
One of the top real estate tech trends for 2020, is going digital. Top agents are questioning if open houses are still relevant. A little over half of survey respondents (52%) recommended an open house as part of their strategies, while 48% did not. Agents on average ranked the effectiveness of open houses as 4.4 on a scale of 1 to 10. You may find that the key to selling your home is focusing on online strategies.
If you keep these challenges in mind as you look to sell your home in 2020, you’ll be well on your way to success.