Real Estate 101
FOR HOME BUYERS
How to Navigate the LA Market to Find Your Perfect Home
A 7-Step Buyer Checklist from an Experienced LA Realtor
Buying a home in Los Angeles in 2025 can feel like trying to win a bidding war while blindfolded. Inventory remains historically low, multiple offers are the norm (often 10–20+ on well-priced properties), prices continue climbing in desirable neighborhoods, and interest rates — while improved — still demand that you bring your absolute best offer to the table.
The good news? The buyers who win aren’t always the ones with the biggest budgets. They’re the ones who are prepared, strategic, and move fast without making costly mistakes.
This proven 7-step LA home buyer checklist has helped hundreds of my clients — first-time buyers, move-up families, and investors alike — beat the competition and close on their dream home in neighborhoods like Silver Lake, Culver City, Mar Vista, Sherman Oaks, and beyond.
Follow it, and you’ll turn a chaotic market into your advantage.
1. Pre-Qualification is Power
In Los Angeles, a simple pre-qualification over the phone won’t cut it. You need a full lender pre-approval letter — underwritten and ready to attach to your offer — before you even start touring homes.
Sellers and listing agents here ignore offers without a strong pre-approval. I’ve seen buyers lose their perfect home because their letter was “subject to further review.” A rock-solid pre-approval shows you’re serious, lets you act within hours of a new listing hitting the market, and often gives you leverage to ask the seller to cover credits others can’t.
Pro move: Have your lender run DU/LP automated underwriting and issue a commitment letter whenever possible — this is gold in multiple-offer situations.
2. The Down Payment Reality
The old “you need 20% down” rule is a myth that keeps too many Angelenos renting. In today’s LA market, plenty of buyers close with 3%–5% down using FHA, Conventional 3–5% programs, or even 0% down VA and USDA (in certain areas).
Yes, lower down payments mean private mortgage insurance (PMI/MIP), but that cost is often far less than another year of rising rents — especially when rates are in the 6s. I’ll connect you with lenders who specialize in low-down-payment options and run the exact numbers so you know your true monthly payment before you fall in love with a house.
3. FICO Score Impact
Your credit score is one of the few things you still control in this market — and it can save (or cost) you tens of thousands. Most lenders want at least 620 for conventional, but hitting 740+ unlocks the best rates and avoids painful pricing adjustments.
A 20–30 point boost can drop your rate by 0.25–0.50% and save you $100–$300+ per month on a $800k loan. Quick wins I share with clients: pay down revolving balances below 30%, dispute old errors, and avoid new inquiries 6 months before buying.
4. Contingency Strategy
LA is still a seller’s market, which means many winning offers are non-contingent or have heavily modified contingencies. But going completely blind is reckless.
Smart LA buyers keep the appraisal contingency (or use an appraisal gap guarantee) and a shortened inspection contingency (7–10 days instead of 17). Waiving the loan contingency is common at the higher end, but only if your finances are bulletproof.
I help you decide exactly which contingencies to keep — and how to structure offers that feel “as-is” to the seller but still protect you.
5. Closing Costs Budget
Too many buyers focus only on down payment and forget closing costs — which run 3%–5% of the purchase price in California. That’s $24,000–$40,000 on an $800,000 home, on top of your down payment.
Typical LA closing costs include:
- Lender fees & title insurance
- Escrow & recording
- Prepaid property taxes & insurance
- Home warranty & HOA transfer (when applicable)
Savvy buyers ask for closing cost credits in their offer — and in this market, a well-written offer can still negotiate 1–2% back from the seller.
6. Property Tax Planning
Proposition 13 caps annual increases, but when a home changes ownership, it reassesses at current market value. Your new tax bill will be roughly 1.25%–1.6% of your purchase price (base 1% + local bonds/mello-roos).
On a $1,000,000 purchase, that’s $12,500–$16,000/year — often double what the seller was paying. I always pull the supplemental tax estimator and include the accurate number in your net sheet so there are no surprises six months after closing.
7. Neighborhood Immersion
Photos and staging are great, but nothing beats experiencing a neighborhood in real life. Drive your actual commute at 8 a.m. on a Wednesday. Walk the streets at 7 p.m. on a Friday. Grab coffee at the local spot on Saturday morning.
Check noise from the 405, flight paths near LAX, or weekend traffic on Laurel Canyon. I send my buyers a custom “Neighborhood Test-Drive Checklist” so you know exactly what to look for — because the perfect house in the wrong micro-location is never perfect.
Find Your Dream Home Today
