Buying a house in Los Angeles today is no easy task. The market is competitive, inventory is limited, and affordability continues to be a challenge for many buyers. Even compared to just a few years ago, the process has gotten tougher. But having owned multiple homes myself, along with investment properties, and having worked closely with clients all across LA, I’ve learned what works and what doesn’t. So in this vlog, I want to share exactly what I would do if I were buying a home in Los Angeles right now.
Step 1: Face the Reality of the Market
The first thing I would do is take a hard, honest look at the local market. Los Angeles overall is fairly balanced, but depending on the neighborhood, conditions can swing in different directions. Some areas are still hot sellers’ markets, with multiple offers and bidding wars. Other neighborhoods are flatter, with prices correcting by 7–8% across LA County.
It’s crucial to know which market you’re shopping in. If it’s a strong sellers’ market, you’ll need to be ready for competition. If it’s leaning more toward a buyers’ market, you’ll have a stronger position to negotiate. Ignoring this reality leads to frustration—understanding it gives you strategy.
Step 2: Get Financially Ready
The second step is making sure you’re financially prepared. That means having your down payment, closing costs, and emergency funds lined up before even talking to a lender. Personally, I like to put 20% down, but that’s not always realistic. Many buyers get in with as little as 3–5%.
The important part is knowing your number and sticking to it. And don’t forget closing costs, which typically run around 2% or more of the purchase price. On top of that, you’ll want to keep money aside for repairs and unexpected expenses. I learned this the hard way with my first home—we spent so much on furniture after closing that when things went wrong with the house, we didn’t have enough in reserves. That’s a mistake I would never make again.
Step 3: Look at Homes Sitting on the Market
One of the smartest strategies is to focus on homes that have been sitting on the market for a while. Often the main reason is price. Sometimes it’s location, like being on a busy street or near train tracks, but many times sellers simply overshoot what their home is worth.
I’ve had clients get great deals on homes that sat for 90 to 120 days. In one case, we secured a solid price reduction along with seller credits just because the seller was motivated. Don’t overlook these opportunities—you never know what kind of deal you can make until you ask.
Step 4: Hire the Right Agent and Shop Lenders
Of course, hiring the right real estate agent makes all the difference. Here in Los Angeles, I’d love to be that trusted advisor for you. And if you’re moving outside of LA, I work with top agents all across the country who can help.
On the financing side, I’d shop multiple lenders. Rates are higher now than they were a few years ago, so even a small difference—like an eighth of a percent—can have a big impact on your monthly payment. Always compare offers, and don’t be afraid to ask your lender to match a better deal.
At the same time, I’d pay down as much debt as possible. Lenders look closely at your debt-to-income ratio, and keeping it under 50% is key. Less debt means better rates and more buying power.
Step 5: Be Strategic About Location and Condition
Real estate has always been about location. I’d focus on neighborhoods with easy access to highways, shopping, and parks. I’d also keep an open mind about homes that need updates. A property that looks dated can often be bought for less, and with some investment, you can build equity quickly. That’s exactly what I did with one of my homes years ago, and it paid off.
School districts are another major factor. Homes in top-rated school boundaries tend to hold value better and are always in higher demand.
Step 6: Make Smart Offers and Inspect Thoroughly
When it comes time to make an offer, strategy is everything. In a sellers’ market, I’d put down a strong down payment, offer flexible closing, and shorten inspection timelines without waiving them. In a buyers’ market, I’d negotiate for repairs, credits, or closing cost concessions. These are becoming more common again, and buyers should take advantage of them.
Inspections are critical—general home, roof, termite, sewer, and even mold if needed. Spending a little upfront can save you from big headaches later.
Step 7: Think Long-Term
Finally, I’d focus on the long-term. Interest rates may be higher now, but they’re already coming down from the sevens into the sixes. At some point, you’ll likely have the opportunity to refinance. What matters most is buying what you can afford today, not what you hope to afford tomorrow. Don’t overstretch.
The bottom line is this: you can’t control the market, but you can control your finances and your strategy. Buy smart, stay unemotional, and think about long-term appreciation. That’s how I’d approach buying a home in Los Angeles today.
