A Guide to Buying A Home in Los Angeles

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Step One

Goal Setting & Education

1. Identify your goals
2. Understand current market conditions
3. Select a lender
4. Obtain a loan approval letter
5. Learn about the purchase process
6. Research neighborhoods of interest
7. Tour homes and open houses

Step Two

Offers & Negotiations

1. Strategically position you as the chosen buyer
2. Learn about the purchase contract
3. Negotiate your optimal price and terms
4. Determine a strategy for competing offers (if applicable)
5. Leverage agent to agent relationships
6. Respond quickly to market changes

Step Three

Escrow Process

1. Wire earnest money deposit
2. Schedule home inspection
3. Manage lender/escrow communication
4. Lender orders the appraisal
5. Review all seller’s disclosures, reports, HOA documents
6. Negotiate credits towards closing costs
7. Escrow Orders Title report and Natural Hazards Disclosure

Step Four

Pre-Closing

1. Perform final property walkthrough
2. Verify repairs and property condition
3. Sign loan docs
4. Transfer utilities
5. Obtain home warranty

Step Five

Closing

1. Wire remaining down payment
2. County recorder records deed
3. Obtain keys
4. Staying in touch — second homes, investment properties

Find a Home You Love in Los Angeles

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Renting vs Buying?

 7 benefits of buying real estate vs renting.

Income Tax Breaks


Homeowners can deduct property taxes and mortgage interest paid on their mortgages which reduces the amount of taxes a homeowner has to pay compared to a renter with similar income.

Build equity and value


Property values will typically rise over time, especially in Los Angeles, thereby increasing your assets. The value increase will give you the option to refinance or take out a home equity line of credit (HELOC) in the future if you wish to use that money for purchasing another property or paying for a remodel.

Tax free on capital gains


When it’s time to sell your home and make a profit, you can avoid paying taxes on the amount you gain up to $250,000 (as a single taxpayer) or up to $50000 (if you are married and filing together).

Make it your own


One of the perks of owning your own home is the ability to do what you want with it ---remodel the kitchen to your taste, add on another level, open up walls, etc. You are your own “landlord” when choosing to become a homeowner versus a home renter.

Fixed monthly payments


As a homeowner, you have the option to fix your monthly payments for up to 30 years. The payment will not change for the life of the loan. As opposed to renting, where your payments can fluctuate year after year depending on the market and annual rental increases.

Improve your credit


Credit scores and ratings typically improve when you take on debt and make consistent payments especially for large items such as home mortgages. As your credit score rises, you fill find that the approval process to qualify for a future loan or line of credit will become much easier than for someone with a limited credit history.

Working with the Eighty8 Group Means

Customized property searches | Access to off-market properties | Leverage our extensive agent network | Understanding of prime LA neighborhoods and investment opportunities

Compass Homes

Compass Homes
Our app for finding homes in your city, with your agent.

Compass Markets
Real estate market data in real-time.

Eighty8 Group
2115 Main St.
Santa Monica, CA 90405
310.913.9451
info@eighty8re.com

Compass is a licensed real estate broker (01991628) in the State of California and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.