Buying a home in Los Angeles can be a good choice if you plan to stay in the United States for a long time. However, high property prices and mortgage rates mean that buying is not always cheaper than renting in the short term. Given the complexities of the home-buying process in the US, it can be hard to figure out exactly what's best for you. From finding a suitable location to determining the right property size, securing a bank loan, and engaging a notary, this article will equip you for every step of the home-buying process in Los Angeles.
What to expect in the Los Angeles real estate market?
The Los Angeles housing market has been one of the most profitable in the country over the past decade. It has been a hotbed for premium investors, and the prices have been increasingly spinning out of reach of LA County residents. Currently, the median sales price for a single-family home in the city of Los Angeles is around $1,155,000, about a 10% increase year-over-year. For Los Angeles County overall, the median falls between $1,100,000 and $1,155,000. Condos and townhomes are somewhat more affordable, with a median near $700,000.
The median listing price for Los Angeles is closer to $1.2M, while the broader metro area (including outlying suburbs) averages around $975,475.
What it takes to buy a property in Los Angeles as an expat
As a foreigner, you can buy property in Los Angeles without a green card or US citizenship. All you need is an Individual Taxpayer Identification Number (ITIN) or Social Security Number (if eligible), valid proof of identity (such as a passport), and proof of funds. And if you don't have all the cash to make a full payment, then you can apply for a mortgage, though foreign buyers typically face higher hurdles, including larger down payments of 30–40%, higher interest rates, and stricter documentation requirements. Some US and international banks have special programs for foreign buyers, but financing is more limited than for residents.
Naturally, your budget is the most important thing to consider when starting home buying. Your budget is also determined by your choice of location (which can be based on how close it is to your workplace or other preferences, the size of the property you want, the type of house you want - a condo, a hillside mansion, a beachfront home, etc.).
The median home value in Los Angeles' metropolitan area is estimated at $1.155 million for single-family homes, $1.2M for active listings, and closer to $975,000 when including the wider metro area. However, how much you pay per square foot can vary hugely from one neighborhood to another. Compare prices across neighborhoods in Los Angeles to see where you'll get the most value for your money.
Getting the best outcomes when buying a home in Los Angeles
If, like most of us, you don't have the kind of bank balance to cover the cost of buying a new home in Los Angeles, you will almost certainly need a mortgage. Most lenders now expect a strong US credit score, or for non-residents, proof of international income/assets, and a large down payment of 30–40%. Visa status can help expand financing options, but it is not always required. Approach the bank for the loan and ensure you get a detailed breakdown of the cost of acquiring the loan, including the monthly payments.
Unlike in many other countries, in California, the notary public only witnesses and notarizes documents. The key transaction safeguards are handled by escrow officers and title companies, who ensure that funds are securely transferred and that all paperwork is completed before closing. Title insurance is also standard in California to protect buyers against future disputes.
The process of buying property in Los Angeles
Set your budget and priorities
Start with the big question: how much can you actually spend? As you're probably well aware, LA isn't cheap, so be realistic about your budget and what you want most. Think about commute times, parking, and how much space you need.
Find a local realtor
Get yourself a good LA realtor. They know the neighborhoods and the price swings and will have insight into all aspects of the process. A local agent will help you navigate everything from offers to inspections and the escrow process.
Check out house prices
Property prices in Los Angeles vary hugely. The citywide median sits around $850,000, but that could mean a fixer-upper in Echo Park or something bigger in Lancaster. Spend some time looking at listings in different areas to see what you can actually get for your money.
Figure out your funding
If you're not buying outright, get pre-approved for a mortgage before you start putting in offers. This shows sellers you're serious and gives you a clear idea of what you can borrow. Talk to lenders who are familiar with expat buyers, as non-US citizens are scrutinized more closely when it comes to finances.
Get your paperwork in order
In California, you'll usually work with an escrow company, which acts as the neutral middleperson, making sure money and documents move at the right time. You don't technically need a lawyer, but some people like having one to double-check contracts.
Close the deal
Once inspections are done and everyone's happy, it's time to sign a mountain of papers, pay the final costs, and get the keys. The escrow officer records the deed with Los Angeles County, and now you officially own property in LA.
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