Buying a home in Los Angeles? Here are some helpful tips to stay competitive.
In Los Angeles, a home takes an average of 66 days to sell (including an escrow period) which is under the 91 days that homes last on the market nationwide (reported via Curbed). Keep in mind, 66 days is the average, so there are homes that sell a day or two after they hit the market.
Since the number of homes for sale in the LA area declined 22.8 percent last year, a strategy to stay competitive is more important than ever. Below are some helpful tips to help you find your dream home.
Tip #1: Get Pre-Approved
Odds are you’ve probably heard this before and we can’t emphasize enough how important this is. Before you start searching for homes for sale online or attending open houses, getting pre-approved for a loan is essential.
Without understanding what you can afford, you could be wasting your time. You might also be looking below what you are qualified for!
If you start with getting pre-approved, you can filter your search, identify the right neighborhoods that fit your budget and lifestyle, and find your dream home quicker.
Tip #2: Find a real estate agent you trust
When you work with a real estate agent, they become your third partner. You want to be updated on a day to day basis about what’s going on and understand every part of the process. It’s that simple.
A good real estate agent is a tough negotiator and your biggest advocate. You want someone who will empower you to make the best decisions by providing all the information you need. You want to feel good about the end result and your agent is responsible for taking you there.
At Davis and Burns, we help people make important decisions, from deciding who’s going to get the bigger bedroom to structuring financing for your new home.
Tip #3. Write a personal note to the seller
In today’s competitive market, the simple act of writing a personal note to a seller can make a significant impact on their decision.
Owners can develop an emotional attachment to their home and they want to make sure their home will continue to be occupied by people who will care for it. In the letter, share your intentions for your new home and why you think it would be a good fit for you. This will reassure the owner that you’re emotionally invested.
The seller may appreciate your honesty and intentions and it could give you an advantage when they make their decision.
Tip #4. Use your imagination
A turnkey home sounds great but in a competitive market it may be challenging to find. Don’t get discouraged. Prioritize what matters to you most and use your imagination to resolve the items low on your wishlist.
Can the lack of privacy be resolved with some landscaping? Can you update the mid-century charm with modern features to satisfy your partner’s preference? Can adding some custom built-ins provide the character you’re looking for? Your imagination can serve you well.
Tip #5: Make your offer more attractive
Zillow recently reported that nearly 40 percent of homes now sell above asking price. Below are some suggestions to help your offer stand out:
Be flexible with the closing date. Express your flexibility to work with the sellers’ timetable.
Put down a larger deposit.This signals how serious a buyer you are.
Pay for some extras yourself. Agree to terms that make the sellers’ transition easier.
The above tips will prepare you to move quickly in today’s competitive market. Looking to buy or sell a home in Los Angeles? Chat with us about how we can support your next move.
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The Davis and Burns group are the leading real estate agents in Southern California. Rebecca and Claire have helped hundreds of buyers and sellers realize their dreams in the greater Los Angeles region.