I recently wrote a post, You Have Had your Home Inspection, What's Next?.  As a result I got a call yesterday from a very nice gentleman who wanted my advice on his situation. He is in escrow on a home and had paid $5,000 over the asking price.  The inspection showed some problems that were going to cost around $2,000 to fix.  He had submitted a request for repair, and the seller countered back that they would pay half.  He was asking me what I thought. I asked him what his agent was … [Read more...]

Why do I say inspect with purpose?  When buying a Los Angeles home you should know that each transaction is different, that is why when you are in escrow on that home your inspections should be carried out in a well thought-out manner.  If you don't stay on top of the progression of escrow you can end up wasting money. During the course of escrow you will be doing your due diligence:  conducting inspections, reviewing disclosures, checking permits, etc.  Then comes the appraisal, which … [Read more...]

You are buying a Los Angeles home and your offer has been accepted.  The very first thing you are going to do is put your good faith deposit (generally 3% of the purchase price) into escrow.  This is held, as its name suggests, to show good faith that you are serious about purchasing the property and it will be applied to the amount of the purchase price upon closing.  It is fully refundable if you decide not to continue with the sale for a valid reason as specified in the contract. The … [Read more...]

You may be considering buying Los Angeles real estate and may have luckily have identified a home and gone into escrow.  Now you need to decide how you are going to take title, especially if you a taking it jointly. There are various way to take title, including: Sole Ownership. Co-Ownership:  Below are seven of the most common ways.  However you should consult with an attorney and/or a CPA to find the best option for you. Community Property:   only for husband and wife.  Interest … [Read more...]

If you are a Los Angeles home buyer right now you must be feeling extremely frustrated.  You can't get to a property quick enough to make an offer before there are three, four or more buyers ahead of you also making offers.  And some of those offers are cash. Don't give up.  Your house is out there.  Just make it a point to be available the minute a property comes on the market so that you can go see it and be in at the beginning. There are certain properties where you can only see … [Read more...]

Now is the time to be on the top of your game when buying a Los Angeles home.  As I have reiterated in many posts, Los Angeles is a sellers' market. Avoid these mistakes and you may end up the lucky owner of a new home: Do not start searching for a home without knowing how much you can afford.  You are going to waste a lot of time and energy, and you will save a lot of heartache if you focus on a realistic goal. Do not establish any new credit or in any way do anything that will … [Read more...]

Finally your process of buying a Los Angeles home is over.  You are just about to close escrow and are ready to move in. Here are some things you need to think about: Change all the utilities into your name, and make sure the seller has remembered to cancel their service.  Here are some of the numbers you will need Make sure to change the locks on the day of close of escrow. If you bought the home with cash, be sure that your insurance is in place. Order your change of address … [Read more...]

In Part 5 we discussed the process of making an offer.  Here we will talk about the negotiation of the offer. If you are serious about buying a Los Angeles home then don't listen to the friends who are telling you that there are deals to be made, and you should just make low ball offers until a seller rolls over and says "take my home." It doesn't happen that way. Above all, be prepared to negotiate. The whole process of home buying  and, of course, home selling, is about give and … [Read more...]

This is the fifth part of the series How to Buying a Los Angeles home. In this post I will address making an offer once you have found THE home. The actual negotiation of the offer is addressed in Part 6. You have looked at several homes and are focussed on one on which you would like to make an offer. Backing up a little from here, don't be afraid to make an offer on the first one you see.  You don't have to visit every home on the market.  If you like it make the offer, because it … [Read more...]