In today’s sellers’ market buying a home in Los Angeles is a competitive process, and a buyer cannot afford to make any mistakes if they truly want to become a homeowner.
- Little knowledge of the market. Take time to understand the current conditions. Not doing so will lead you to make bad decisions in your buying process. A sellers’ market does not offer a lot of options for buyers.
- Lack of preparation. A buyer needs to be ready to go when they see a home they like. Build a relationship with a lender who will go over your financial situation, determine your buying power and be ready to provide you with the letter which must accompany your offer in order to be taken seriously. If you are a cash buyer be ready to provide proof of funds. What you are qualified for and how much you are really prepared to pay on a monthly basis will determine your home price. Stay within your comfort level because you will not be able to compete if you are going to have to stretch your limit. And homes above your price range are not likely to be negotiated down by much if at all in a sellers’ market.
- Too many wants and needs. In this market a buyer is unlikely to find the perfect home. There will have to be some compromise, so be ready to adapt. Know what you can absolutely live with and without. If you must have a three-bedroom home for instance, then maybe look at two-bedrooms and a den, or a home that has the possibility of adding on in the future. Open up your options.
- Trying to get a deal. There are no deals in a sellers’ market and if there were an investor would have swooped in the take advantage of it. Your agent will know if the home is priced correctly. If so, make your best offer. If not someone else will.
- Being unreasonable during the inspection process. Sometimes a buyer will think that they can wear down a seller by asking for credits or repairs after their home inspection. If a major issues arises such as a cracked foundation then the seller will often pay for or fix the problem, especially since they will have to disclose it to the next buyer. Remember, if you are buying an older home there are going to be deferred maintenance items which the seller has been living with and may not be prepared to fix for a new owner. Choose your requests carefully as there is probably someone in line behind you ready to buy the home if you cannot come to an agreement and the contract does not go through.
No buyer should overpay for a home, but if a home is competitively priced and you can see yourself living in it then do what it takes to make it yours.
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