Owning a house in Los Angeles is a dream of many. And when you finally have the financial resources to afford one, you should definitely consider buying one! If you have already started looking for a house, you would have realized that the process of buying a home in L.A. is way more stressful and complicated than you expected.
So, to make things a lot easier for you, we have compiled a list of things that you must know when you step into the real estate market.
1. There Are Going to Be Transitional Costs
You should know that moving from one house to the other will incur costs. Being oblivious of this could end up causing you financial constraints later on. Transitional costs can include, for instance, the amount that goes into renting a house before you move into a new one. These costs are not always high but being prepared and planning ahead of time could save you from unnecessary financial headaches. Therefore, make a budget and include possible moving expenses such as selling extra furniture, paying the movers, etc.
2. Looking for a Mortgage Lender is Not Easy
The mortgage is one of the first items that you, as a home buyer, will have to negotiate for. Many first-time buyers wrongly assume that all mortgage lenders offer the same rates. You will have to reach out to quite some mortgage lenders before finalizing the best one. To make the right decision, you should match your financial history with the interest rates that they offer on a loan. This way you will be in a better position to see if you can afford the mortgage. Be careful, however, for any extra fee that is separately mentioned but is pretty similar to the other listed fees to prevent yourself from overpaying.
3. You Will Change Your Mind
When buying a home in L.A., it is good to know what you want in your new house and what you don’t. This often makes it easier to find a property that closely matches your taste. However, if you think that your wants will stay the same, you’re wrong. As soon as you step into the real estate property market in L.A., you’ll realize that getting exactly what you want may stop you from getting the best-suited house for yourself. The point here is, to be prepared that you will change your mind way more than you think. A luxury home within your budget and in your preferred neighborhood may not have a yard that you wished for. Therefore, when listing down your wants and needs, you should prioritize and mention what is negotiable and what isn’t.
4. There is a Variety of Housing Options in L.A.
The real estate properties in L.A. are extremely diverse. When buying a home, you should consider your family size and the lifestyle you aspire for when deciding which housing type to choose. Housing options in L.A. include:
- Single-family homes
- Condominiums (Condos)
5. Understanding the Investment is Important
Even if the sole purpose of buying a home is to get a comfortable living space, you should not forget that this purchase you’re making is also your investment. Many first-time buyers tend to compromise on some aspects of the property just so that it could fit their budget. And there’s nothing wrong in that – unless your compromise negatively impacts your return on investment. For instance, a luxury home in a really bad neighborhood is not likely to give you many profits as compared to a townhouse located at a great location. The key is to not get hung up on superficial things – like a dusty window or dull wall paints. Instead, look out for features and amenities that will make your house a great investment as well.
6. Asking Questions is Essential
When you are house hunting, several questions will pop-up in your head. From inquiring about home inspections to questioning the terms of the contract, you will be tempted to clarify matters with the seller of the house. And you must go ahead because you will be investing a lot of your money into buying the property. To avoid inconvenience in the future, communicating your concerns or reservations is extremely essential.
7. You Need a Credible Realtor
As a first time home buyer, you will need assistance in a lot of instances such as looking for quality properties in the city, dealing with the owners of the house, deciding contractual terms, making insurance, etc. Hiring a reliable real estate agent or company will help you with finding a house that is best suited for your needs and has the potential to generate an incredible return on investment. A good realtor will also aid you in building a meaningful network and help you negotiate.
If you’re looking for a realtor that could give expert advice and guidance, Pezzini Luxury Homes is the one to reach out to! Contact them at 1-310-275-2076 to avail services of Los Angeles’s leading real estate company.