Buying Real Estate in Los Angeles
Los Angeles offers a diverse and fast-moving real estate market. Buyers should be prepared for competition, unique neighborhood dynamics, and differing property types.
Home Purchase Process
Mortgage pre-approval (1–7 days): Contact lenders, submit income and asset documents, and secure a pre-approval letter to define your budget and strengthen offers.
Search and offers (1–8 weeks searching; offer response 1–7 days): Work with your agent to identify properties, attend tours, prepare comparative market analysis, and submit competitive offers with appropriate contingencies.
Inspections and negotiations (7–14 days): After an accepted offer, schedule pest and home inspections, review findings, and negotiate repairs or credits with the seller.
Escrow to closing (30–45 days): Complete appraisal and underwriting, resolve any lender conditions, perform the final walkthrough, and sign closing documents to transfer ownership.
Income Property Purchase
Market and financial analysis (1–2 weeks): Evaluate rental demand, comparable rents, vacancy rates, operating expenses, and calculate cap rate and cash-on-cash returns.
Financing and investor terms (1–14 days): Explore loan products for investors, confirm down payment and reserve requirements, and obtain pre-approval or proof of funds for stronger offers.
Due diligence (7–21 days): Review leases, tenant histories, maintenance records, and run inspections and environmental or pest reports as needed before removing contingencies.
Closing and transition (30–60 days): Coordinate escrow, transfer ownership, update insurance, and arrange property management or renovations to prepare units for tenants.
Associated Fees
Inspection and appraisal fees: Budget roughly $300–$1,000 for inspections and $400–$1,000 for an appraisal depending on property size and complexity.
Lender, escrow, title, and closing costs: Expect lender fees, escrow and title charges, recording fees, and prepaid items; together these commonly total about 2–5% of the purchase price—review your loan estimate for specifics.
Typical Timelines
Initial steps: Pre-approval usually takes 1–7 days; property search timelines vary widely based on market and buyer criteria.
Transaction timeline: Offer negotiation and inspection periods commonly take a few days to two weeks; standard residential escrows close in about 30–45 days, while income property transactions often require 30–60 days due to extended due diligence.
- Get pre-approved for financing
- Schedule property tours and inspections
- Review contracts and close on time
Buying in the South Bay
The South Bay market offers strong coastal demand and competitive seasons. Below are clear, actionable steps and timelines for buyers and investors to navigate purchases efficiently.
Below are common timeframes to plan around when buying in Los Angeles and the South Bay.
- Pre-approval: 1–7 days
- Home search & tours: 1–6 weeks (varies by market)
- Offer to acceptance: 1–7 days
- Inspection & contingencies: 5–10 days
- Escrow & closing: 30–45 days
- Income property setup (management/tenanting): 2–4 weeks after closing
FAQS
How long does it take to sell a home?
It depends on pricing, condition, and current demand. In today's market, you’re looking at 45-120 days. Pricing too high is the #1 reason homes stay on the market longer.
What if I need to Sell and Buy a home at the same time?
You have options:
contingent offers, rent-backs, temporary housing strategies, bridge loans...
I help you create a plan that doesn’t leave you worried or scrambling to figure something out.
Should I get pre-approved before seeing properties?
Absolutely! Most people think they need 20% down and they many times don’t. Depending on the loan, you might need 3%, or even less for certain programs. Your real cost is the down payment + closing costs. I help you map out exact numbers before you start looking so you’re not blindsided. Having a pre-approval ready to go also ensures you are ready to move forward with an offer as soon as you find the right property.
What are contingencies in the Real Estate contract?
These are your safety nets: They are usually the inspection contingency, the appraisal contingency, and the loan contingency.
They protect you from making a bad or risky purchase.
What is Earnest Money?
It’s the money you will deposit in to escrow once the Seller has accepted your offer. It shows your commitment to following through with the purchase. If the deal closes, it goes toward your down payment. If the deal falls through under a protected contingency, it is refunded to you.
What happens when the Property / Home Inspection reveals problems?
Inspection issues are completely normal.
We can renegotiate the price, request repairs, or ask for credits. If the problems are too big, you can walk away within your inspection period and your deposit will be refunded. (depending on your contingencies).
Kerry Wade Real Estate
Compass Brokerage License #01991628 Agent CA License #01268191