THE BEST WAY TO GET THAT HOUSE...OFFER EARLY & GET PRE-APPROVED!!

Ok, for all of you who have taken the plunge into purchasing a house here in Los Angeles...congratulations! I'm sure you most likely were in a multiple offer situation or were surprised at how close you were in paying the asking price (and yes, I am writing this in September of '08). I know your counter parts in Indiana, or Colorado or Florida, or 40+ other states may think, you paid what for your house?...or simply, that you may be one taco short of a combination plate. You and I know differently...you have taken advantage of a real estate market comprised of many different industries where there is high demand for a short supply of land and housing. I truly don't think the price will go lower than what it is now in specific areas of Los Angeles.

I think as a buyer about to enter the market, it's good to read this blog and others, and to speak with different people who live in the area you are looking to purchase to get more specific feedback on how that market it really doing. I think you would be surprised at how Micro markets, i.e., West LA, Santa Monica, Brentwood, Mar Vista, Cuver City, The South Bay, even Studio City, and Burbank are doing. The key is to get real with what the prices are and most importantly what homes are selling for and it will either work for you or not. If you're ready to purchase you take the information in and move forward. You know that in the next 3-5 years you will most likely be in a great financial housing position (not to mention a tax shelter from day 1). If you're not ready to buy, you will usually complain about how the market is going to plunge in the next year to eighteen months, or you unrealistically discount every property by 30%.

Here's the deal...You won't be alone in finding that great house that fits your criteria, so act early! If you like a house, don't play games, listen to your professional real estate advisors and move forward. If you can't do that, 1) You will lose leverage in getting a little lower price. I would gage anywhere from $10,000-$75,000 or you will lose the house to another buyer.

Also, GET PRE-APPROVED WITH A LENDER BEFORE YOU START LOOKING FOR A HOUSE. Again, GET PRE-APPROVED WITH A LENDER BEFORE YOU START LOOKING FOR A HOUSE! I don't care how great your credit is, how much income you bring in, or how you've crunched the numbers on how much you can afford for a home, if you need a loan on a home, get pre-approved! There are so many factors these days, with credit restrictions and guidelines, you don't want to get caught with just missing a loan (which means house) by "that much"...

Good luck!