Pushing your entire life savings into a single acquisition of your dream home is certainly not the easiest thing to do. Such a grandiose purchase can be a truly overwhelming experience considering all the preparations you should do before you go all-in on your new dream home. Purchasers should know that pricing isn’t the only thing that matters. There are many other things to consider, including how and where to start looking, what price range to consider, what types of homes Los Angeles offers, how to secure a loan suited to your needs, downpayment, and real estate agents and more. This short yet useful guide will provide some of the essential information to get you started on your search for a new home in the city of Los Angeles.
What Is The Price Of Real Estate In Los Angeles Nowadays?
As of June 2020, the median home value in Los Angeles is $752,508, according to Zillow. Even though Los Angeles home values have gone up by 5.8% over the past year, experts predict that they will fall -0.4% within the next year. The median price per square foot in the Los Angeles-Long Beach-Anaheim Metro is $447, while the median price per square foot in Los Angeles is $551. Speaking of currently listed homes, the median price is $859,000, while the median price of sold homes is $760,000. The prices of homes in Los Angeles are pretty neighborhood-dependant as well. A variety of factors are to blame when speaking about the priciness of estate purchase in Los Angeles. The area’s tenacious desirability among well-heeled clients and the deficiency of new residential constructions are two determinants that real estate experts blame the most.
Downpayment And Real Estate Loans
If you are intrigued in buying the house of your dreams with straight cash, this section is not for you. Otherwise, producing the conventional 20% down payment can be a notable barrier, given the area’s high housing costs. Yet, there are a lot of loan providers who fortunately don’t require the 20% downpayment when buying a home.
Securing a loan in an aggressive real estate market like LA might be a lengthy and challenging process. Because of that, working with a lender in the early stages of your house hunt will give you a better sense of what kind of resources you have to work with. We strongly advise you to consult with a licensed Los Angeles mortgage broker to gather all necessary information about rates specific to your scenario and learn which type of home you can afford in the City of Angels.
What Types Of Homes Are Available To Buy In LA?
Los Angeles is notoriously famous for its single-family residences, but there are many more types of homes available on the real estate market. Aside from the classic American-style house that sits by itself on its plot of land, duplexes, and triplexes are also very popular. Condos, which are apartments that you can purchase instead of rent, are another attractive option to consider. When holding a condo, all amenities and upkeep are compensated for by the homeowner’s association, which is funded by the complex’s residents.
Broadly attached to neighboring units, townhomes give the space and feel of a single-family home, but at the same time, they operate more like condos. Then, there are the small lot homes which are somewhat unprecedented for LA County. Even though they resemble townhomes from a distance, they sit on a little portion of land hardly more extensive than the housing object itself. Homeowners don’t have to pay dues to a homeowner’s association and instead pay much smaller charges for the upkeep of shared space.
Although they are not as common as in New York City, it’s possible to find co-ops in Los Angeles, too. Very similar to condos, buyers don’t technically own their units. They own cuts in an association run by a committee that often vets potential newcomers. Last but not least, tenure in common housing units (TICs) has become more popular in Los Angeles in the past few years and is known to be one of the most affordable beginner home options in Los Angeles.
Are You Going To Need A Real Estate Agent To Strike A Deal?
Technically speaking, no, you won’t need one. On the other hand, trying to steer the pros and cons of acquiring a house can be a real obstruction without professional help. Besides finding you a home, an agent can be of immense help with organizing showings, direction through the process of negotiating a cost with the seller, and establishing terms of agreement of the sale.
Length Of The Homebuying Process
The process could be as short as a single day and as long as three years. There is no straightforward answer to this one, although it massively relies on how ready you are money-wise, how picky you tend to be, and if you get a bit lucky along the way. On average, the whole process should be foreclosed in six months, more or less.
With the ongoing Covid-19 pandemic, the home buying process can take longer, as some new rules and procedures need to be followed, thus making the process a bit lengthier than usual. Greatly influenced by the social distancing measures, it takes longer to arrange property tours, house examinations, and loan approvals. In case you are willing to make an offer for a specific property, but you are not able to visit it first, agents are currently able to issue a proposal to bring you into escrow and allow you to back out once you attend the property.
Is There A Best Time To Buy In Los Angeles?
The city of Los Angeles has its own glorious periods of the year, and the same goes for the local real estate market. According to real estate experts, late spring is the season with the freshest offerings, with many homes hitting the market within April and June.
Yet, that is not the time of the year when you’ll be able to find the best opportunities. Homes in the Los Angeles area tend to sell for a premium in springtime when they are recently offered. If you are looking for the best opportunities money-wise, the best time for home purchasing is late December and January when much of the offered premises are being sold for less than their listed value.