If you’ve never owned a home in Los Angeles before, then you may not be aware of certain mitigating factors that can affect prices.
It’s a very popular city to live in, which inevitably leads to more housing demands. This means new homes are always being built, and pre-existing homes are being sold at premium rates throughout the year.
The Cost Of Homes
Depending on where you are looking for within Los Angeles, the price can vary. The median price for a single-family home last year was $650,000, whereas for a condo it was $530,000.
These are for smaller homes, if you’re looking for something slightly bigger, even for a single-family, then the asking price is around $880,000.
The cost of buying has been steadily rising over the last few years. Real estate experts blame a variety of LA-based factors, such as the constant demand to live in this city.
Consider what sort of home you’re looking to buy. It could be a townhome, condo, duplexes/triplexes or even land to build your own.
There’s a lot of factors that decide a price of a home within LA, mainly its location-based. But it can also be down to factors such as, walkability, schools, crime rates, and closeness to parks.
Some areas are even designated as special historic preservation zones, leading to potential tax breaks.
Affording Down Payments And Mortgages
Los Angeles is similar to most states when it comes to purchasing homes. You have to get pre-approval with credit checks and paperwork first before taking out a mortgage.
These days, many sellers within LA require only 10% or less upfront when purchasing a home. This can lead to more monthly mortgage costs with interest rates, however.
When looking into getting a mortgage approval, you should go to a loan company that are experts in advising you, with fair rates. The Home Loan Expert should be considered top choice; they are one of the fastest-growing lending platforms in the nation, operating in over 15 states, including California.
They believe in a customer-first approach, where you’ll be walked through the process, speeding up the time in which your loan will be approved.
Crucially, they are a mortgage lender, not a mortgage broker, meaning everything is streamlined, allowing them to use the newest mortgage loan products, approving loans that their competitors cannot.
Best Time To Buy
The local real estate market fluctuates at certain points of the year. In spring, you’ll find more listings ready for moves in the summer.
That’s not to say these will be the best deals, just more variety. Realtors know this and charge more premium prices. If you’re able, look for listings around December as they will generally be lower than in a few months’ time.
Sometimes, you can get into a bidding war for a home against fellow estate buyers. Be prepared to spend slightly over a property asking price, or go for lower properties you’re happy to overspend.
Photo by Tierra Mallorca
