Before seeing homes or meeting with a real estate agent, prospective Downtown LA home buyers should be aware of some of the most common problems and how to avoid them.
These problems include: lawsuits, litigation, loft and condo lending problems, getting trapped by a real estate agent, missing out on the best deals, losing out to other buyers, failing to negotiate the best price and terms, delays due to failed inspections, HOA move-in delays, unpermitted improvements, risk of losing deposit and no electricity. Here’s how to make the home buying process go more smoothly and to profit in DTLA:
10 IMPORTANT HOME BUYING TIPS:
The #1 mistake that we have seen since 2011 is prospective buyers delaying a home purchase. Prices have been going up about 1% every 6 months for the last several years, with rents going up about the same. Homeowners have gained an average of more than $200,000 in equity, while renters have really lost out in terms of net worth.
Place the highest and best offer on the very first day of a listing. Prices and terms are negotiable. Buyers may ask the seller to pay some of the expenses such as closing costs. If buyers asks for too much, they may lose to another offer. Buyers should get a list of comps, recently sold comparable homes, in the building or neighborhood so that he buyer can see first hand what buyers have paid recently for a similar home. #dtla #buyermistakes
Most purchases entail delays and unexpected miscellaneous expenses. Some transactions fail after incurring expenses for the prospective buyer. Some borrowers are unable to obtain financing. Loft purchase may require a loft specialist lender. They can be found at www.LALoftLoan.com.
Delays are common. Be sure to allow plenty of extra time for moving, and extra money for unanticipated costs.
Ensure that the seller has installed a carbon monoxide detector before the inspections.
For condos, HOA move in fee, move out fee and HOA move in security deposit are often required; ask HOA for details. A move in appointment and information form is required by most HOAs. Contact the HOA well in advance to make move in arrangements.
For houses, always ask seller for any permits pertaining to additions and major improvements. Buyers can get a free floor plan at MyFloorPlanFree.com.
Removing contingencies places the buyer’s deposit at risk. Do not sign off on all contingencies until sure that the transaction will be completed. Buyers must usually remove contingencies before seller completes repairs.
Electricity may be turned off before or right after the purchase. Order utilities in advance of move-in.
Buyer’s can avoid most mistakes simply by hiring at no cost a Downtown area specialist who is knowlegable about the buildings and neighborhood issues. A good local agent will take down the buyer’s home buying criteria, to help to get priority access to hot new listings, to aid the buyer in receiving proprietary information such as unlisted properties, and to show several homes when possible. A free home buyer consultation is the first step to a successful home purchase.
Buyers should pay nothing for this service, and there should be no obligation to buy a home. To expedite the process, buyers should give the agent proof of funds (a statement of an account with some down payment funds, black out the account number). Also, buyers will get priority service from agents and owners if buyer is preapproved for a loan. Get a free list of Downtown loft lenders who can finance a live-work loft, Mills Act loft, and other homes converted under the Los Angeles Adaptive Re-Use Ordinance. Fill out the online form:
UTILITIES DOWNTOWN L.A.
Call DWP to turn on electricity
LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]