Los Angeles Magazine Real Estate Edition
I just picked up the most recent issue of Los Angeles Magazine’s annual real estate edition with the title, “Buy Now or Save for Later: How to Negotiate Los Angeles’ Topsy-Turvy Real Estate Market”. In a nutshell, the writer of the main piece discusses her challenge trying to purchase in today’s real estate climate. What was interesting about the article was that it wasn’t your typical doom and gloom story about her inability to secure a loan or the fact that prices still haven’t come down enough to become affordable. In fact it was quite the opposite. Her challenge was that there was so much competition for well priced bungalows in hip areas that she and her husband kept losing out. By the end of the article, she had placed three offers on three different properties and ended up losing out on all of them. Ultimately she ended up continuing to lease, but remains still obsessed with MLS searches.
As I have mentioned on my site (http://richkidsrealestate.com/buyers.php), when you are even thinking about buying a home, get yourself pre approved by a lender. The author of the article mentioned that initially she thought she could afford a higher priced home, but by the time you factor in closing costs, insurance, mortgage insurance, taxes, etc, your monthly payments are substantially higher. A lender will break it down for you so that you know exactly what your monthly payments will be. Plus, seller’s won’t even look at an offer unless there is a pre approval letter accompanying it.
The other thing that I would advise is that when you see something you really like and it’s priced well, make an offer! Chances are others will soon recognize the value and that will only drive the price up if you’re outbidding each other. Be the first to get the deal!
Definitely grab a copy Los Angeles Magazine if you are thinking about buying. I found it to be very informative and easy to understand! They’ve also included a price guide for every neighborhood in town which is helpful!
