Choose among the many different Los Angeles neighborhoods.
Los Angeles is broken up into four main sections---North, which bumps into nearby Hollywood, Pasadena and downtown; South Central; East Los Angeles; and West Los Angeles, which is closer to the Pacific Ocean and nearby oceanside cities such as Venice, and the Los Angeles airport. The north and west sides of Los Angeles generally have more expensive housing options. The south and east sides of the city offer less expensive housing, but have a reputation for crime. Enclaves of neighborhoods in the east and south, such as Baldwin Hills, don't suffer from the same calamities.
Instructions
1. Calculate how much home you can afford. Your mortgage shouldn't exceed 2.5 times your annual salary. That means if you make $75,000 a year, your home should cost no more than $187,500.
2. Decide the type of home you need---a condominium or single family residence. Are you looking for a three bedroom, two bath, or a five bedroom, five bath, home? What additional features in a home do you prefer---two car garage, a pool or kitchen with a center island. Now decide what you will accept---a three bedroom, one bath, a galley kitchen with no island or an above ground pool. Since the housing market in many Los Angeles areas is fairly competitive, you might need to downgrade your tastes to gain entry into the market.
3. Find a neighborhood in Los Angeles that suits your tastes and needs. Pick a specific side of Los Angeles you want to look for a home in---north, south central, east or west. Commute, schools and other community features such as shopping centers and parks and recreation are all popular reasons to pick one neighborhood over another. Even if you don't have school-age children, when it comes time to re-sell, having a property situated in a neighborhood with good schools will help you sell for more money and faster. According to GreatSchools, the north and west sides of Los Angeles have some of the highest rated schools in the city.
4. Look on Realtor.com for homes for sale in that Los Angeles neighborhood and make sure those home prices meet your budget. If prices seem higher, find other neighborhoods that are more in your range. As of early 2011, home buyers looking for dwellings under $100,000 could find deals in the south and eastern regions of Los Angeles. Other sides of the city would require an investment in at least the high $300,000 to mid $400,000 range.
5. Get pre-approved for a mortgage. You don't need to get pre-approved to look for a home in Los Angeles, but when the environment is competitive, having a pre-approval letter in your hand will allow you to move faster. Some sellers won't accept an offer from a buyer who is not pre-approved.
6. Gather your paperwork together. Once you have found a home, the mortgage lender will want certain documents from you---a W-2 form and anywhere from three to six months of pay stubs. Self-employed people must submit a 1040 and 1099-Misc tax forms for the last two tax years. This step can be completed at any time while looking for a home, but must be completed before closing.
7. Find a realtor to represent you. Signing a contract with a buyer's agent is two-fold ---you will access to new MLS listings, but you will be stuck with this person as your agent for at least one year. When selecting a real estate agent, find someone who is actively selling properties in the neighborhoods you are interested in. Drive through those neighborhoods and note the names on the for sale signs. Also ask friends and family to recommend someone. You want an agent who is prompt, is available by phone, and quick to return your phone calls and emails.
8. Be proactive. Don't wait for your realtor to contact you about new listings. Scour Realtor.com and other agent websites for new listings on your own.
9. Jump on new listings immediately. Since housing in Los Angeles can be competitive, especially in certain areas, if you notice a good deal, take a look at it immediately. Don't wait to make an appointment with your agent. Drive by the house in person, and if it is empty, peek through the windows. If you feel good about it, call your realtor and express interest in making an offer, not just looking at the house. Realtors are interested in commissions, and if they think you're ready to buy, they are more inclined to fit you into their schedule. Ask the realtor to meet you at the home with a sales agreement. Once the realtor arrives, you can tour the home, and make an offer if you still feel confident about it.
10. Make a competitive offer. If home prices in the area receive five percent less than the asking price, then make an offer that is five percent lower than the sales price. If you detect that this property will not stay on the market long, consider offering full price or only two percent less than the asking price. Ask your agent to advise you when it comes to submitting a competitive offer.
