Why buy property in Los Angeles luxury markets?
California and the Los Angeles real estate markets have long been in the center of individuals and families building wealth. The buy and hold formula has worked famously to property investors’ advantage for many years. The observed capital appreciation has stretched across commercial, industrial, mixed-use, and, of course, the residential sectors without exception.
Our focus here is on the luxury residential sector
We highlight the first-hand experiences of David Hitt and Ronald Shore – two of the top realtors in Los Angeles. Their tips and advice are invaluable when it comes to contracting with Los Angeles Estate Agents or deciding on who are the best realtors in Los Angeles for your needs.
Remember the following when approaching a luxury house purchase in LA:
- There’s never a wrong time to buy because the investment horizon is far into the future. Market volatility should smooth out over a property investment term.
- Start by discussing your financial situation with your realtor to make sure your goals are realistic. Open up your FICO scores, income information, and savings so that you can formulate a real search plan.
- Use mortgage funding at the most comfortable level. Understand that you are paying interest at around 3% (i.e., current rates), and all the real estate appreciation adds to your equity in the home – not the lender’s financial input.
Here’s an enlightening example:
- Joe buys a house in West Hollywood for $900,000 by investing $300,000 of his savings and borrowing $600,000 from his local bank with a 3.5% fixed interest only long-term loan.
- Joe sells the home ten years later for $1.8 million (double the value, after a relatively modest 7.25% appreciation compounded annually).
- However, Joe’s takeaway is $1,200,000 after paying back the $600,000 mortgage – four times his initial investment. The leveraging of the investment with 67% loan-to-value (LTV) at the outset earned Joe a 15% compound return on his $300,000 over a decade. Even if you deduct the approximately $210,000 interest total, it’s an excellent homeowner’s result.
David and Ronald understand all the financial ins and outs. They’re the team recognized as one of the best realtors in Los Angeles for luxury home buying. There are many reasons for this, but navigating the financial landscape is one of the biggest.
Getting rid of the confusion and noise Luxury Houses for sale in Los Angeles bring into the process.
There are numerous complications to keep in mind when reviewing luxury houses for sale in Los Angeles. You’re walking into a situation where the following entities are invaribly in the mix:
- A seller’s agent
- The realtor team acting for you
- Insurance assessors
- Mortgage brokers or bankers
- Underwriters bringing along their inspectors, appraisers, escrow officers
- Title companies
- And others like stagers, mold inspectors, etc.
Top realtors in Los Angeles take all this in their stride. You hardly know it’s happening because it’s their job to take the hassle out of the deal. The important thing is to make sure that you and your realtor are on the same page regarding demographics, price, funding, and geography.
In many ways, it’s a partnership. Look for a property agent that’s ready to go the extra mile and views the purchase as it’s his or her own. When you team up with the Shore/Hitt Real Estate Network, they check all the boxes. It’s no accident that they mentor other top realtors in Los Angeles and California who want to enter some of the primary LA communities, namely:
- Beverly Hills; Hollywood Hills; West Hollywood
- Hollywood; Santa Monica; Culver City
- Brentwood; Westwood; West LA
- Los Feliz; Silverlake; Burbank
- Atwater Village; Cypress Park; Eagle Rock
- Glassell Park; Glendale; Highland Park
- Mt Washington; Montecito Heights; Sherman Oaks
- Studio City; Encino; San Fernando Valley.
- West Hollywood; Hollywood; Santa Monica
- Culver City; Brentwood; Westwood
- West LA; Los Feliz; Silver Lake
- Burbank; Atwater Village; Cypress Park
- Eagle Rock; Glassell Park; Glendale
- Highland Park; Mt Washington; Montecito Heights
- Sherman Oaks; Studio City; Encino; San Fernando Valley.
Searching for your luxury home in Los Angeles
We live in the digital age, where three-D imaging is a click away. You can browse ten homes in an hour that took you like a week back in the day. The virtual search for luxury houses for sale in Los Angeles takes you from room to room, from side to side in each room, outside on the balconies, and looking at the views. Select an agent whose listings, technology, and backup services deliver on all this so that you can narrow things down. Pinpoint the homes that weigh in your favor on the neighborhood, location in the street, and more. Perhaps, you’re looking for that rare commodity – raw land to build your dream mansion from scratch? You need a realtor who understands the market from all the angles, including the condo category. Penthouses in landmark Los Angeles buildings go for multi-millions of dollars.
The Shore/Hitt team navigates you through their state-of-the-art featured list of homes to erase the confusion of a massive selection in real estate for sale in Los Angeles. If you want to buy property in Los Angeles, David Hitt or Ronal Shore are the realtors you want in your corner. When you have a shortlist of five or six prime selections, that’s when the traveling for a one-on-one live view begins. They know all the byways, highways, and inlets leading to all the above communities, taking the fatigue out of the viewing process.
Making an offer and closing with the help of one of the top realtors in Los Angeles
Here’s what tests your realtors thoroughly. Do they come out of it looking like they’re worth their weight in gold, or not? Writing an offer is the beginning of the end of your home purchase. There’s much more to it than meets the eye:
- Scheduling a home inspection to confirm what you see is what you’re buying. It’s often what’s behind the walls that kills a deal at the death.
- Will the lender see the value the same way as you do? If less, you may find yourself short on the equity side of the equation.
- Are you accounting for the contingencies arising from (a) and (b) above – showing defects and overvaluation, respectively.
- What furnishings are in and out of the purchase value?
- The seller pays your agent’s commission, but there are closing costs that you can’t avoid and lots of mortgage origination expenses.
- Are you lodging a non-refundable deposit if you pull out of the deal before closing?
- Transparency helps you to roll costs into the loan or reduce the obligation by paying them upfront.
- Finally, what’s the closing date, and does it suit you? Let your realtor outline the closing procedures, final walk-through, and obtaining bank transfer details.
Top realtors in Los Angeles understand all the nooks and crannies involved in making an offer and traveling toward a seamless closing where there are no shocks and surprises to upset your expectations. When you connect to an experienced team like Hitt and Shore in Los Angeles, you are also jumping on to the peace-of-mind bandwagon.” They’ll take care of your offer and nurture it through to the finish better than most.
From end-to-end, the process of a luxury home purchase in Los Angeles is a detailed, somewhat complicated process. It has many moving parts that require bedding down. There is very little room for error, so make sure you have all the right intelligence on your side. There’s no better in LA than the Shore-Hitt Real Estate Network working under the umbrella of Keller Williams. They will take you to the next level of excellence, ensuring your client experience is one you’ll always recall with fond memories.