What is the best thing to do to avoid going to court?

Either have the person sign a receipt or have witnesses there say that they received the items back.

Appear in court and tell the judge what you just said. Maybe take photos of the items and bring the photos in to court and show the judge you have them. At this point, there is no way you can avoid appearing in court unless you give the items back and receive some sort of written proof that the plaintiff will ask the judge to dismiss the case, which is kind of risky in my opinion.

You should have an attorney get involved for the purpose of settling this civil matter. The attorney can hold the items in trust and disperse them to the plaintiff only after the parties sign off on a stipulation of dismissal with prejudice and can then provide immediate access to the personal property after the plaintiff first signs off on the dismissal document. Such a service should not be overly expensive in a small claims matter such as this and will well be worth the peace of mind you gain by making it go away. Of course, I have only provided you with you with very general information which is not intended as legal advice. Hence, no one should rely and act upon my commentary, but instead should directly consult with a attorney of his or her choosing before taking any of the legal steps discussed. That being said, I am more than willing to consult with you if you desire further insight into how to pursue the present matter.

Have a witness present. Also, have a document drafted stating what was agreed to and have him sign it. If he refuses to sign, then go to court. Since you are willing to return the items, the court cannot expect any more.