Los Angeles is enjoying a strong seller’s market right now. So what’s a potential buyer to do? Here are some LA homebuying tips and tricks that can help.
Offer Cash and Be Ready to Bid
Jump into the Los Angeles real estate market when you’re ready to wheel and deal. With fewer properties on the market, sellers are patiently waiting for the best offers. Your offer may be seen as more appealing if you can present a cash offer and are ready to negotiate. You may want to choose a home that’s a bit below your budget so you can go above the asking price, if necessary, to win your dream property. The Los Angeles real estate market is projected to increase in value (approximately 35 percent) over the next four years, so the competition is likely to continue to be fierce.
Shop Often and Have Multiple Options
With bidding wars becoming the norm, you should have several home options on standby. Attend open houses and private showings often, and keep a tally of several properties that fit your needs. You don’t want to waste time looking for another home if you learn that your first choice was sold within minutes of leaving the open house. Los Angeles homes were on the market for an average of 32 days as of February 2016, which is two days shorter than in February 2015, and 30 percent of homes sold above asking price as well.
Buy Low and Invest in Renovations
Some California buyers are swooping in and purchasing the run-down, ugly property in the neighborhood where they want to live. By paying a price below budget in your ideal location, you can then use the excess funds to complete a remodeling project and personalize the home. This buying technique not only gives buyers exactly what they want in the long run, but it also improves property values for the neighborhood as a whole. For some great deals, you may want to browse foreclosure lists and auctions.
Look Beyond and Stay in Budget
The median price for condos and single-family homes in greater Los Angeles sits at $1.035 million, and the median rate continues to increase. To become a homeowner in Los Angeles for less than a million dollars, look beyond the upscale neighborhoods. Outlying communities allow proximity to the city and smaller price tags.
Are you thinking about buying a home in the Los Angeles area? Start with these tips, and when you’re ready, head to Owners.com to get started on your search.