Every home buyer in Los Angeles is probably aware that it is a tough market for buyers right now. There is a low supply of houses for sale, and those that are for sale are going incredibly fast. In fact, the California Association of Realtors reports that a single-family house in Los Angeles County takes just 26 days to sell.
Because of how quickly these homes are selling, it can be tempting for eager or desperate buyers to jump at the chance to buy a home that even comes close to what they want. However, acting too quickly can have long-term consequences.
Paying too much
With lower inventory comes more competition and higher prices. As such, the price people are willing to pay for a home can increase far over the asking price.
However, paying too much for a home can be unwise for a few reasons. Of course, it could mean getting less than you paid in the future if the market shifts. It could also mean running into potential issues with an appraisal. If the house appraises for less than the purchase price, you may need to renegotiate with the buyer or come up with the money to pay for anything over what the loan covers.
Taking unnecessary risks
Considering how quickly homes sell, buyers may act before they know exactly what they might get. You could wind up dealing with defective titles, boundary disputes, easements and other issues that affect your property rights.
Even when you must act fast, you should still know what you are buying. Take the time to conduct some research, have the property inspected, and do a thorough walk-through.
Making regrettable compromises
People may make compromises when buying a home; it might be out of their desired neighborhood or have a different layout than they wanted. However, when you are in a rush to buy a home, you could wind up talking yourself into compromises that ultimately make the purchase regrettable.
Before you sign a purchase agreement, take stock of how the house aligns with what you were looking for. Does it meet your most important criteria?
It can be easy to get caught up in the rush to buy a home in Los Angeles. To avoid making a costly mistake, take the time to make sure you look before you leap.