How to Minimize the Stress of Buying a House in L.A.

Buying a house can keep many first-time home buyers awake at night. It is a significant life event and an impactful financial decision. 

The stress of a first-time home purchase can lead buyers to experience one of the most significant life decisions in a negative light. But the reality is that a large swath of stress-inducing details can be kept in check with careful planning and preparation.

Los Angeles is a city with an unparalleled lifestyle. Its many eclectic neighborhoods and sun-soaked streets make it one of the most in-demand areas in the real estate market. Buyers looking to set roots in the City of Angels should be ready for hefty prices and scarce inventory. 

But even though tackling a challenging housing market may seem intimidating, buyers can rely on careful planning and professional help to make the process a lot smoother.Below, the team at Prevu Real Estate outlines some of the best ways for homebuyers to reduce stress when buying a home in Los Angeles.

Get your finances in order

Few things give us as much confidence as a well-stocked bank account. This especially holds when buying a home. Approaching a home purchase as a long-term goal and preparing for it early is one of the best ways to avoid stress when it is time to view properties and make offers.

The primary goals can be setting aside money for a down payment and getting your finances straight to qualify for a mortgage. When you have decided that you are ready to begin your home search, start organizing your W-2 forms, bank statements, and other assets you may have to show the lender when it comes time to apply for a mortgage. 

As you organize your finances, make a backup budget that predicts the back and forth of a bidding war. It can be demoralizing when it comes down to just you and another buyer, only to lose out on the bid because you were short of making a counteroffer. A good practice would be to settle on a budget for a home but shop below it so that you can remain comfortable offering more if the negotiations lead to it. 

Get pre-qualified for a mortgage

Anxiety can pile up quickly when you attend an open house, fall in love with the home, and then find out there are a ton of offers already made. Therefore buyers should look for any way to stand out to the seller when making their offer.

Coming to the table with a pre-approval letter immediately shows the seller that you are serious about the offer and that they don’t have to worry about the deal falling through because you couldn’t find financing. This is when all the financial prep will have been worth it since all the documents you have amassed and savings you put aside will show lenders that you can handle a loan and will pay it back.

Hire a buyer’s agent

The process of finding a home can be tedious. First-time homebuyers may feel the brunt of the stress that comes with shopping for houses, but the process of negotiating an offer and getting paperwork in order is a separate chapter. Hiring a buyer’s agent changes that.

Some buyers interact with the listing agent of the property for sale. But these buyers may not realize that the listing agent is working exclusively for the seller and in the seller’s best interest. The agent would treat the buyer as a customer, not a client, and wouldn’t be responsible for looking out for the best course of action the buyer can take.

A buyer’s agent specializes in delivering the best deal possible but can also be a trusted guide through the purchase process. Therefore, buyers should extensively interview multiple buyer agents to determine which has the most experience and knowledge about the neighborhood of choice. For example, if you decide to search in Redondo Beach or Manhattan Beach, your agent can tell you what to expect from these neighborhoods in the long term. 

A dedicated buyer’s agent can also share their knowledge of pricing history in the area, which can be invaluable when negotiating the price of a home. In addition, they can compare past prices of similar homes to determine whether the listing price is justified.  

Save with a commission rebate

If spending large amounts of money can be a significant cause of stress when buying a house, receiving money back after closing can be one of the best ways to alleviate it. Commission rebates are a unique tool available for buyers to help unlock additional savings. 

In a traditional real estate transaction, the seller usually pays a 6% commission upon a successful sale of the property. If there are two agents involved in the sale of the house, the commission is typically split between the listing agent that works for the seller and the buyer’s agent representing the buyer. 

However, modern brokerages like Prevu Real Estate take it a step further and offer buyers a portion of the commission they receive.

For example, if you buy a $1,800,000 home in Santa Monica, the buyer’s agent commission would usually be 3% of the listing price. A buyer working with a Prevu agent would stand to receive up to half of that 3% commission, or $27,000, in the form of a rebate after closing. 

Knowing that you can expect a lump sum after making one of the most financially draining decisions of your life can significantly reduce home buying stress. Buyers can put the money towards replenishing your savings, investing in renovations, or furnishing the new house.

Select a moving company

The physical move is one of the top causes of stress in the home buying process. Wrestling with yourself about whether you should keep the dusty mementos or an untouched collection of books yet to be read is just as stress-inducing as the sweaty labor involved in packing for a move. 

Get to know the options you have when choosing a moving company. Don’t hesitate to reach out to multiple movers to see which can give you the best quote. It would be ideal to do so early in the process so that you don’t feel pressured to decide quickly. 

If you have valuables, such as a piano or antique furniture, take the time to search for movers that specialize in such things. Having the peace of mind that your heirlooms and valuables will be professionally handled can help you relax and focus on other areas of the purchase. It can even be good to get a quote as early as possible and begin budgeting for the move in advance. 

If you are moving to a condo building, double-check that the company has a certificate of insurance. Most condos will require the moving company to present one, so if you decide to go with a friend’s recommendation, always check to see if they offer one. 

Interested in buying a house in Los Angeles? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.

Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.