How to Find Your Own Pockets of Affordability
There are plenty of areas within a reasonable drive of downtown Los Angeles where homes can be purchased for $150,000 or less, but some of those neighborhoods are clearly better than others. Here are some tips to help you find a pocket of affordability where a home will provide you many happy returns, both financially and emotionally:
Look at The Times’ weekly home price guide. Each Sunday, the real estate section publishes a map that features average sales prices for homes in different parts of the Southland. These numbers can give you a ballpark idea of which areas are within your price range. An even better indicator is the ZIP code table that accompanies the map: It provides a more precise measure of prices in specific neighborhoods. Even if the home price guide indicates that an area is out of your reach, you may still be able to find an affordable house or condo in the area.
Get prequalified by a realtor or lender before you start your house hunting. Prequalifying usually costs nothing, and helps you determine how big a loan you can get. That helps you avoid looking at homes that you can’t afford, and also helps you get your financial house in order--an important first step in the home-loan process.
Be willing to compromise. While $150,000 can buy you a huge home in pristine condition in some parts of the country, it’s a different story in the high-priced Southland market. You may have to settle for a home or condominium smaller than you’d prefer, or you may have to get one that needs some repairs. Beware if you’re looking for a fixer-upper: A modestly priced home that needs $50,000 or $75,000 in major repairs isn’t a bargain--it’s a money pit.
Drop by “open houses” in several neighborhoods. When you’ve found at least a few areas that feature houses or condominiums you can afford, come back at night so you’ll know what the community is like at all hours. Look favorably on areas where homes show pride of ownership, and be wary of communities with a lot of graffiti or obvious signs of neglect.
Find a good real estate agent. Check the for-sale advertisements in local newspapers to see which realtors have several listings in the area that you’re considering, and write down agents’ names you see on for-sale signs in yards. Interview at least three of these agents and pick the one that seems the most professional and makes you feel comfortable.
Check out the local schools. The quality of the schools in the area is important, even if you don’t have children. Your future buyers may, and will pay a premium to live in a neighborhood with good educational facilities. Each school or the district itself should be able to supply you with information on how their students have fared on standardized tests. Compare these ratings to those of other schools in the area for indications of which schools are doing better than others. Also, talk to the principal or a few teachers to see what they think of the school, and try to tour the campus.
Read up on crime statistics. Local police and sheriff’s departments track various types of crimes committed in their area and will usually share this information. Ask what type of crimes have been committed, and how often they have occurred in the neighborhood you are considering. Compare that information to crime statistics in surrounding neighborhoods. Also ask whether criminal activity in the area is higher or lower than previous years to get an idea whether the neighborhood is getting better or worse.
Consider foreclosure properties and other “special-situation” homes. The U.S. Department of Housing and Urban Development and the Veterans Administration often sell properties in good areas that they have taken back from defaulted buyers. They publish listings of such homes in the classified section of The Times’ Sunday edition. Some brokers specialize in handling such properties. You can also call lending institutions and ask if they have any bargain-priced foreclosures for sale. Probate properties can also be good bargains: You can locate them through a realtor, or by scanning the “notice to creditor” announcements that must be published in legal or general circulation papers after a person has died.
