Things to take into account when planning to buy an LA apartment
You are finally ready to be a homeowner. That is great news! However, don’t start celebrating just yet, because there is a lot you need to do to get that accomplished. Purchasing a property is always serious business. Especially, since most of us save our entire lives to be able to purchase our own home. This venture is certainly the hardest on first-time property buyers. Still, no one is immune to the stress caused by investing in their own place. There are many questions and concerns that you probably have before you buy an LA apartment and that is why we are here to help. Our buyer’s guide is the perfect kick-off point.
LA real estate market in 2020
Before you buy an LA apartment you must be familiar with the real estate trends. Certainly, knowing the US real estate trends for 2020 can hurt. However, it would more beneficial to know the specifics of the Los Angeles real estate market. Unexpectedly, coronavirus has influenced all aspects of our lives. So, the real estate market wasn’t spared. Since Los Angeles is a massive city with a larger population, social distancing is harder to practice. Particularly in apartment buildings. For that reason, prices might have slightly dropped. That is why this just might be the perfect timing for apartment shopping. Once the dust settles and with the use of anti-covid vaccines, the apartment prices in LA are expected to skyrocket once again.
When looking to buy an LA apartment here is what you need to be aware of
Our help doesn’t necessarily come in form of a step-by-step guide for home buyers. It is more of a collection of facts that you need to know as a future homeowner. Of course, there will be more you need to keep in perspective. You will need to keep multiple plates spinning at once if you want to have a successful buying. Still, this is a great way to start your house hunting journey.
Condo and apartment prices in LA
Currently, median apartment prices are over $500,000. Of course, when looking for properties you always must factor in location. Prices often vary and the price difference can be massive from one neighborhood to another. Prices can be also followed per square foot. The median apartment price per square foot reaches $440.
How much money do you need to prepare for your downpayment when you want to buy an LA apartment?
In most cases, the standard downpayment equals 20% of your property price. Since LA properties are very expensive, 20% of your property’s prices is a nice bundle of cash. For most, saving such a large amount of money is never easy. The good news is that there are lenders that will expect only a 10% downpayment or even less. Of course, there is a catch. If you have a smaller downpayment you can expect to have private mortgage insurance. Consequently, your monthly bills will be somewhat higher.
Do you need a real estate agent during this process?
In theory, having a real estate agent on call is not a must. However, for the best possible results, you should hire a professional to be in your corner. Naturally, a real estate agent will look for properties that meet all your criteria. But that is not all. He will also participate in negotiations and oversee the terms of the sale. When you think about it, you will obtain the services of SOS Moving Los Angeles to handle your relocation. Why wouldn’t you the same with other tasks?
Know your exact budget
Life in the Sunkist State is by no means cheap. And when you buy a property, you are extending your monthly expenses much further. Before you get in the process of purchasing a condo in LA, make sure you know how much money you can spend each month on your apartment. Surely, you will think about your mortgage. However, don’t forget about your utilities and other maintenance fees that arent avoidable. Otherwise, you might find yourself in a big problem. One thing is for sure, living in LA on a budget is not a simple thing to manage.
Should I expect a bidding war?
Most properties in Los Angles are sold for their asking price. Yet, bidding wars sometimes do happen. If you set your sights on an extremely attractive property it is not out of the question that somebody else will do the same. In this case, all interested parties will put in their offers on the property. If you find yourself in such a predicament, we will have our fingers crossed for you.
How long will this process take?
If you want to buy real estate in LA arm yourself with patience. Finding the perfect LA apartment can take time. Certainly, a lucky few can find their perfect property and purchase it ASAP. Realistically speaking, be prepared for this process to last for six months. That is the optimal time to house hunt, find your ideal property, get the buying and negotiations done and in the end close the deal.
Move with professional help
Obtaining moving assistance will save your time and money. Moving on your own is always an option. However, you will be drained from your buying process and you will have no energy left for your move no matter how much you look forward to it. Professional movers will move you in half of the time while making sure all your belongings are safely transported.
If you are serious about purchasing an apartment in Los Angeles, be prepared for a mental battle. Finding the picture-perfect property is more than difficult. So, when looking to buy an LA apartment it will be tough but well worth the effort. Once you have found it and you are settled in. You will appreciate every moment you sent on this difficult but amazing process.