Did that catch your eye? Unfortunately, leaving investors out of the equation, as a Los Angeles home buyer you are probably not going to find that bargain home you are looking for.
Why?
Because the real bargains often don’t make it to the general market. They are bought through word-of-mouth or on the courthouse steps. And, if by some chance a good one slips through, there will be a buying frenzy with multiple offers, making the home no longer a bargain.
Also, many of the neighborhoods of Los Angeles were not hit as badly as the rest of the country and here you absolutely get what you pay for.
But a foreclosure is going to be a bargain, right?
Probably not. Generally by the time a Los Angeles foreclosure gets to the market it is pretty much going to be in poor condition, if not completely gutted. So by the time you fix it up any savings you might have will be wiped out.
So I can buy a short sale for a bargain, right?
Wrong. A short sale occurs when a seller owes more on the mortgage than the home is worth. Instead of walking away and being foreclosed on they opt to put it on the market. The lender is already taking a loss so they are going to ensure that the home is priced according to the market. No bargains are going to be found here. Generally, you will find these homes in better condition than one that has been foreclosed on, but the time involved in waiting for a short sale, and the fact that repairs are most likely not going to be done may mean you end up with a buyer paying more than if they had bought a traditional home and were able to negotiate with the seller for repairs.
I can offer way less than the list price right?
Pretty much the only way you may buy a Los Angeles home for way less than the list price is if it is way overpriced in the first place. Your Realtor® will have done the comps on the home and advised you as to whether the price being asked is at market or not. If the home is priced correctly, the seller is probably not going to let it go for much less, if they will let it go for less at all. Not every home seller is desperate. In fact most aren’t. And don’t be fooled by homes that have been sitting on the market for a while. There is a reason they have not sold. It could be that they are overpriced or there is something wrong with them.
In today’s Los Angeles real estate market, where new inventory is low in many areas, homes that come on the market well-priced are going into multiples and selling very quickly.
If you find a Los Angeles home that you love, and it is well-priced, you will have found your bargain home.
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