With more than 160 vacant lots currently for sale in Pacific Palisades, setting the right price has become more critical than ever. Since January 7, only thirty lots have sold, and about 22 are in escrow as of April 28. At this pace, it would take more than 19 months to sell the current inventory.
Many property owners are beginning to realize that it may not be possible to achieve the prices they had initially hoped for. About 25% of sellers have already lowered their asking prices, and 20% of the sold lots underwent price reductions before finding a buyer.
One common mistake is pricing based on other active listings, many of which may themselves be overpriced for today’s market. While setting an asking price higher than comparable listings can sometimes be effective in a strong seller’s market, it carries significant risks when inventory levels are rising and buyers have more options.
Key Factors to Consider:
When determining a listing price, it is important to weigh several factors carefully:
- Location within the community
- Size of the lot
- Size of the prior home
- Buildable area and topography
- Quality of any views
- Available alternative lots buyers will compare with
- How quickly the owner would like — or needs — to sell
It is also essential to account for any other elements that could impact desirability, such as access difficulty, traffic noise, or unusual lot shape.
