Los Angeles Real Estate Report

The Bidding War Frenzy Has Cooled — And That's Good News for Buyers

If you stepped back from your home search over the past couple of years because the bidding wars felt relentless, I understand. I've been selling homes in Los Angeles for over 33 years, and even by my standards, the intensity we saw was extraordinary. Buyers were waiving inspections, paying hundreds of thousands over asking, and still losing out. It was exhausting for everyone.

But here's the shift I'm seeing on the ground right now: buyer demand has moderated, housing supply has grown, and the hyper-competitive dynamics that defined 2021 and 2022 are giving way to something more balanced. That doesn't mean it's suddenly easy out there — this is still Los Angeles — but it does mean you have more room to negotiate than you've had in a long time. If you've been waiting for a window, this may be it. Our [buyer resources page](/buyers-resources) breaks down what today's market looks like and how to position yourself for success.

You May Have More Negotiation Power When Buying a Home in Los Angeles Today

The Return of Contingencies: Protecting Yourself Is Back on the Table

One of the most troubling trends during the peak of the market was how many buyers felt compelled to waive critical protections — home inspections, appraisal contingencies, even financing contingencies — just to get their offers noticed. In a city with as many older and historic homes as Los Angeles has, skipping an inspection is a serious gamble.

The latest data from the National Association of Realtors® shows the percentage of buyers waiving inspections and appraisals is declining. And according to realtor.com, 92% of home sellers are now accepting some buyer-friendly terms, frequently related to inspections, financing, or appraisals.

This is significant. It doesn't mean we've flipped into a buyers' market — far from it — but it does mean you no longer need to strip away every safeguard just to compete. You can negotiate for an inspection on that 1920s Spanish Colonial. You can include an appraisal contingency on that mid-century in the hills. The leverage is shifting, and smart buyers should use it.

Sellers Are Helping With Closing Costs Again

Before the pandemic, it was a common and perfectly reasonable negotiation tool for sellers to contribute toward a buyer's closing costs. During the frenzy, that practice essentially vanished — sellers didn't need to offer anything extra when they had ten competing offers on day one.

Now, that dynamic is changing. A recent REALTOR survey found that 32% of sellers paid some or all of their buyer's closing costs. For buyers in Los Angeles, where closing costs can be substantial, this is a meaningful shift.

There are limits, of course. How much a seller can contribute depends on your lender, your loan type, and California-specific regulations. Work closely with your loan advisor to understand the specifics. But the fact that this negotiation tool is back on the table at all tells you something important about where the market is headed. If you're considering [selling your Los Angeles home](/sellers-resources), understanding these shifting buyer expectations is essential to pricing and marketing your property effectively.

Key Takeaways for Los Angeles Buyers

• →Bidding wars have cooled as buyer demand has moderated and inventory has grown across Los Angeles neighborhoods.
• →92% of sellers are now accepting buyer-friendly terms like inspection and appraisal contingencies — don't feel pressured to waive protections.
• →32% of sellers are contributing to buyer closing costs, a negotiation tool that had nearly disappeared during the market peak.
• →Closing cost credit limits vary by lender, loan type, and state — work with your loan advisor to understand what's possible.
• →The market isn't a full buyers' market yet, but the window for negotiation is wider than it's been in years.

Frequently Asked Questions

The negotiation landscape in Los Angeles is shifting — and I'd love to help you take advantage of it. Whether you're ready to re-enter the market or just want to understand what today's opportunities look like, let's talk. With 33 years of experience navigating every kind of LA market, I can help you find the right home on the right terms.