4 Tips When Looking To Buy A Home in Los Angeles

The LA Housing market is one of the most challenging markets to navigate when looking to buy a home in Los Angeles. A recent article on Los Angeles I’m Yours, penned by Zwillow’s Tali Wee, discusses four tips to abide by when looking for your new home in Los Angeles.

“Prospective home buyers and renters can avoid the overwhelming task of finding new residences by systematically researching availabilities, while recognizing signs for money pits and slumlords. Begin by evaluating the market value of properties in Los Angeles.”

No. 1: Market Trends

It’s important to understand the market and the trends that are being seen in order to have the “upper” hand when it comes to purchasing your new home. “Home values in Los Angeles are up 20.1 percent since last year, faster than nearby cities Anaheim and Santa Ana, where home values increased 18.6 and 17.1 percent respectively. In fact, 96.2 percent of all homes in Los Angeles are currently appreciating. If the Los Angeles housing market continues to trend upward, purchasing a home now would yield a high return on investment (ROI) in the future.”

No. 2 Visit Properties

Physically going to houses on the market to look and tour is a smart move. You will be able to get more information about the neighborhood, the property itself and narrow down/prioritize the features and amenities that matter to you most. In addition, open houses are the perfect time to inquire about the property. Here are some example questions:

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[list_item]“Have there been any offers so far? The number of offers indicates how strong the competition is for the home. Find out why other offers were declined to better understand what the seller is looking for to draft a competitive offer.[/list_item]
[list_item]Why the move? Are structural problems prompting the current homeowners to relocate? If the sellers are under financial pressure or are desperate to move, the deal may be easier to close.[/list_item]
[list_item]How long has it been on the market? Although this information is available online, sellers’ agents may elaborate. Stale listings typically indicate property issues.[/list_item]
[list_item]Are there any liens on the property? Unpaid debts from construction or taxes transfer to the new homeowner. A prospective buyer needs to know if money is owed on the property before making a purchase.”[/list_item]
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No. 3 Find A Professional

A qualified and experienced agent can make all the difference when it comes to your success in the real estate market. Turn to someone you trust and has the knowledge to help make this process less stressful and more easy for you. “Locating a trustworthy professional is a serious decision for homebuyers. Real estate agents and their contact information with credible reviews are available on Zillow. Further, the “find a pro” tool allows users to browse various home improvement professionals in Los Angeles, including agents, lenders, interior designers, general contractors, plumbers and landscapers.”

No. 4 Beware of Red Flags

When looking to buy a home in Los Angeles, be sure to keep your eyes peeled for possible problems down the road. This includes careless DIY projects, water damage, electrical issues, foundation problems and so on. It’s important to hire a qualified home inspector to assess the property and give a sign-off on all possible issues. Then look at your budget to see what can be negotiated. “Warm weather climates such as Los Angeles require air conditioning, so another red flag is a home without an A/C system. Homebuyers might budget the installation of a new system post purchase, but others may not be prepared for the additional cost. Buyers should also be financially cautious of gated communities that often indicate highly affluent neighborhoods. Such communities charge additional homeowners association fees for on-site security guards. Consider all additional costs and how they fit in the overall budget before making any purchases.”

As always, be sure to consult with a qualified and experienced local Los Angeles real estate agent. They will be able to guide and help you find your ideal home!