Top five first time home buyer questions in Los Angeles, CA

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
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Top five first time home buyer questions in Los Angeles, CA

Top five first time home buyer questions in Los Angeles, CA

 

POSTED ON JUN 25, 2019 BY  IN ADVICE TO HOMEOWNERSBEVERLY HILLSBUYINGOBSERVATIONS ABOUT VARIOUS SUBJECTSRELOCATION TO LOS ANGELESUNCATEGORIZED | 0 COMMENTS

Over the years, these were the top five first time home buyer questions, I have been  asked  in the greater Los Angeles area. Now, in no specific order, let me list them and then address  each of them:

  1. How safe is the neighborhood?
  2. What will the annual taxes be on this home?
  3. How much will I have to pay per month for the mortgage?
  4. What is the interest rate going to be on my loan?
  5. How much will my home be worth in seven years?

Clearly these questions sound simple, but they are not that easy to answer in a sentence or two. Most first-time home buyers need, what I consider additional patience and even some hand holding. The extra kindness and caring will make the purchasing process  so much smoother.

How Safe is the neighborhood? This is not a loaded question; it is a legitimate concern. The issue is it is a subjective matter. Different people have varied tolerance to what they perceive as safe vs. unsafe. I always advise my buyers to drive by the area in the evening, weekends as well as weekdays to determine their comfort level. I also suggest checking with the local police department as to what the crime statistics are. Interestingly this is not just asked by Relocation Clients. Keep in mind Los Angeles consists of about sixty square miles of area and often first-time home buyers leave the comfort zone of where they were renting to a different area to purchase, because of affordability reasons.

What will the annual taxes be on this home? Well this depends on where the property is located, it makes a difference if it is in Beverly Hills, Culver City or Los Angeles to name a few areas. Clearly a safe number without looking at the actual location is around 1-1.25% of the purchase price. Thanks to Proposition 13, our tax obligation is determined by the purchase price. There after minor tax increases are permitted based on inflation. This is probably the easiest question to answer from all five.

California Prices are out of this world

How much will I have to pay per month for the mortgage? This question I prefer the lender to answer. Clearly deferring, because it all depends on a variety of factors. One factor, which has the largest influence on this is, how much will the down payment is the mortgage amount itself. It has a huge impact on the size of the monthly  payment. Other factors include what type of loan it is and the list goes on and on. Not wanting to forget the interest rate influences this amount as well.

What is the interest rate going to be on my loan? This question also requires a more complex answer. The short answer is it depends on your credit rating, coupled with the income you can generate. Also, it depends how large are  your outstanding loan balances, to name a few. Again I defer the buyers to the Mortgage lender to get a better answer.

How much will my home be worth in seven years? I always joke yes I was born in Hungary, but I am not a Gypsy and I do not have a Chrystal Ball as to what your home is going to be worth in seven years. One thing I can share with you is my father bought his home for $41,500 and sold the house in the bottom of the market for $108,000. We bought our home when the market was increasing and now it is worth 40% more than five years ago…. With that said we are not planning on selling instead we are enjoying living in our home and not having to pay the landlord.

Looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals? Please reach out to me directly!

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations.

 

 

 

 

 

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Rainmaker
1,873,814
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Endre - there is subjectivity in each question and you handled the answers the best way.  When becoming a consultant the answer I learned to give more than others was "it depends."

Jun 25, 2019 12:38 PM #8
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre most of those questions require a crystal ball, especially the last one.

Jun 25, 2019 12:39 PM #9
Rainmaker
1,177,768
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre Barath, Jr. - I actually have some stats on the So Cal market from 1972 to today.  But that 7 years is very specific. I like your answer. You buy your home to enjoy the fruits of ownership.

Jun 25, 2019 01:52 PM #10
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick Vandekar, 610-203-4543  yes the mystical powers, hence I laugh when the Internet Portals want to eliminate the Realtor, love to hear how they would answer these questions, Endre

Jun 26, 2019 12:06 AM #11
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

James Dray  more importantly you have peace of mind that your landlord will not raise the rent:))Endre

Jun 26, 2019 12:09 AM #12
Rainmaker
5,313,655
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is very good information to share with prospective first time home buyers.

Jun 26, 2019 01:05 PM #13
Ambassador
3,235,904
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Really great questions and I have to say, very similar to my top 5 as well, Endre. I so enjoy their questions - it gives us time to PROPERLY educate the consumer, something that the media fails miserably at these days. Right now, I'm getting recession questions! WHAT? I'm going to sell more real estate this year than ever before - WHAT RECESSION?!!

All of that, thanks to our media...I suppose without them, life would be a little less interesting! LOL

Jun 27, 2019 05:05 AM #14
Rainmaker
401,276
Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Endre, it is a good summary for Buyers looking to start the home-buying search. I hope they will connect with you early, I am sure they will appreciate the guidance and your expertise.

Jun 27, 2019 08:20 AM #16
Rainmaker
196,239
L. Scott Ferguson
Ask4Ferguson - Your House-SOLD Name in Real Estate - West Palm Beach, FL
Sunny Florida Real Estate Professional

Endre!

 

Awesome stuff.  But honestly I'm deferring questions 1-4 to differen't professionals. I'm not in mortgage so I defer to my lender and as for number 1 that can get sticky as it can lead to 'steering' (had experience with this before almost 20 years ago) 

 

Love how you handled the questions though.

 

Blessings

 

Fergie

Jun 27, 2019 08:21 AM #17
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander  my Chrystal ball is a bit cloudy too:))Endre

Jun 27, 2019 10:00 PM #18
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400  local market reports you publish is the closest thing to a Crystal Ball:)Endre

Jun 27, 2019 10:02 PM #19
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Jacobs  I had to write about this subject because this has been the most asked question from the buyers... I should do a similar post for land as well. Endre

Jun 27, 2019 10:22 PM #20
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Will Hamm  I just wrote about the majority  of the buyers questions I received over the years, Endre

Jun 27, 2019 11:53 PM #21
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten CRB, CRS 602-380-4886  loved your comment, thank you, Endre

Jun 27, 2019 11:55 PM #22
Rainmaker
746,354
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

These are really great and legitimate questions from a prospective homeowner even though the first is deemed not to be pc in this day and age. I give the same response. Well done!

Jun 28, 2019 06:11 AM #23
Rainmaker
2,487,882
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

H Endre, being half Hungarian and the gypsy comment made me laugh. I may use that line :)  Have a fabulous weekend.

Jun 28, 2019 07:43 AM #24
Rainmaker
502,716
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I hear these same questions.  Selling in LA--can't imaging all that extra driving!  The 'safe neighborhood' question must be answered diplomatically and without bias. Your recommendations are spot on

Jun 30, 2019 10:59 AM #25
Rainmaker
644,939
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

That last one is a tough one Endre!  If you find a good crystal ball, do share as I can use one as well!:)  Great post!

Jul 17, 2019 11:53 AM #27
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Grant Schneider   yes the easy answer "it depends" does not get you far on less you are on this platform not wanting to take a stand....Endre

Jul 18, 2019 12:10 AM #28
Rainmaker
3,186,976
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George Souto  and I thought you had one? or was it just good market savvy answers over the years?:)Endre

Jul 18, 2019 12:11 AM #29
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