WEA MESSAGE
ZIP CODE 90210 - BEVERLY HILLS
ZIP CODE 90211 - BEVERLY HILLS
ZIP CODE 90212 - BEVERLY HILLS
ZIP CODE 90069 - SUNSET STRIP
ZIP CODE 90077 - BEL AIR
ZIP CODE 90046 - WEST HOLLYWOOD
ZIP CODE 90265 - MALIBU
ZIP CODE 90272 - PACIFIC PALISADES
ZIP CODE 90024 - WESTWOOD
ZIP CODE 90292 - MARINA DEL REY
ZIP CODE 90049 - BRENTWOOD
ZIP CODE 90025 - WEST LA
ZIP CODE 90402 - SANTA MONICA
ZIP CODE 90027 - LOS FELIZ
ZIP CODE 90064 - CHEVIOT HILLS
ZIP CODE 90291 - VENICE
ZIP CODES YEAR TO DATE SALES
A MESSAGE FROM WEA
WHAT’S NEXT FOR OUR MARKET?
By “our market,” I am referring to the upper end of the Los Angeles Westside, extending from Beverly Hills to the ocean.
The lower end of the market has remained remarkably resilient. Properties in the $1 million to $3 million range continue to sell quickly, often at or very near the asking price. Inventory remains limited while demand continues to be strong.
The market above $10 million is a different story. Although there have been many sales, most sellers are not achieving the prices they had anticipated or hoped for. When evaluating comparable sales, a responsible broker should look beyond the final sale price and examine the property’s original list price and when it first came to market. The higher the price point, the greater the disparity tends to be between the original asking price and the eventual sales price, as well as the longer the property remains on the market.
There are numerous examples of homes initially listed in the $40 million range ultimately selling in the $20 million range. Had these properties been priced more appropriately from the outset, many sellers would likely have achieved a higher net return. Instead, extended marketing times result in additional carrying costs—including mortgage payments, property taxes, insurance, maintenance, and other expenses—that can significantly reduce the seller’s net proceeds.
This differs from the market of recent years when values were appreciating rapidly. Back then, waiting often benefited sellers because prices continued to rise. In today’s market, where appreciation is far less certain, overpricing at the outset frequently leads to a lower ultimate result.
As I’ve discussed previously, we operate in a highly taxed city and state, under policies that many believe have made it more difficult to do business. This is reflected in the number of residents and businesses relocating elsewhere, as well as the growing number of vacant storefronts throughout Los Angeles. Unfortunately, the upcoming November elections offer little indication of meaningful policy changes, as the current frontrunners largely represent a continuation of the status quo.
Finally, ask your sellers whether they want their property exposed to the largest possible pool of qualified buyers, or whether they prefer the Compass strategy of initially marketing it privately. Ask them why they believe that approach serves their interests and whether the reasoning truly makes sense for their particular property. I believe the answer, in most cases, is no.
The good news is that the luxury market remains active, with a considerable number of transactions taking place. The challenge is that sellers often need to adjust their expectations to align with today’s market realities.
Stephen Shapiro Co-Founder, Westside Estate Agency
3.35
3.06
3.17
4.11
10.9
5.09
2.31
2.61
6.61
2.83
2.74
3.71
3.65
2.55
3.50
5.55
4.88
2.04
2.28
6.72
5.63
2.66
2.84
2.64
2.48
2.88
2.75
PROPERTIES OF $1M OR MORE
Success built on superior
market knowledge. And understanding our clients.
Westside Estate Agency is defined by the values and the vision of its two founders, Stephen Shapiro and Kurt Rappaport. In 1998, Stephen Shapiro and Kurt Rappaport were two of the most well-known, highly compensated realtors in Los Angeles. Still, they felt there had to be a better way to meet the very high expectations and individual needs of their high-net worth clientele.
It wasn’t long before the two began making plans for a different kind of brokerage. A real estate agency committed to putting client service first, and completely satisfying the needs and desires of each client. In the words of Stephen Shapiro, “Negotiations conducted with intelligence and integrity result in what we call the ‘triple win.’ Great results for the buyer, the seller, and WEA.”
In 1999, Shapiro and Rappaport opened Westside Estate Agency with a focus on the most expensive and prestigious homes and estates in the prime Westside areas of Los Angeles. In 2015, WEA opened its Malibu office to service that world famous community. Today, WEA has a clientele without parallel, at the pinnacle of the business, financial, technology and entertainment industries generating billions in sales and the highest average price per sale in the industry.
Working hand-in-hand with their commitment to tailored service has been the agency’s industry leading application of technology. WEA has been at the forefront in the category for its technology use, from being the first to implement a fully integrated network computing system to the first to use scanning technology, cloud technology, e-signatures and paperless filing to provide better service to clients. WEA continues to stay on the cutting-edge of innovation, keeping a pulse on and implementing new technologies as soon as they’re available.
Stephen and Kurt have assembled a team of full-time real estate pros, known for expertise, experience, integrity and discretion. Each agent possesses an in-depth knowledge of the inventory and current market conditions; our clients turn to us for candid insights into current market value, the sales potential of properties and marketing strategies for our current and prospective clients.
Of course, WEA has retained its independence, in the face of widespread acquisition by a handful of impersonal agencies. Remaining independent means we answer to our clients, instead of a corporate headquarters thousands of miles away. It means we don’t need to worry about a conglomerate’s bottom-line or using an inhouse escrow or title company; rather, we’re free to focus on getting the best and doing the best for each client.
In practical terms, this translates into efficiency and responsiveness. Making the most of every minute by showing just the homes, in just the
neighborhoods, that meet our clients’ criteria. Quite frequently, we’re even able to offer new properties not yet on the market.
Finally, it means WEA’s agents have a direct conduit to the top. Unlike the non-owner operated, robo brokerages, our principals play a role in, and keep an eye on every WEA transaction. In a sense, every WEA client is also a client of Stephen’s and Kurt’s. Which only makes sense, as it’s with these two, that the WEA story began.
Westside Estate Agency
460 North Canon Drive Beverly Hills, CA 90210
310.247.7770
SalesBH@WEAhomes.com
Westside Estate Agency 3900 Cross Creek Rd #5 Malibu, CA 90265
310.456.1171
SalesMalibu@WEAhomes.com
