How Long Does It Take to Buy a Home in Los Angeles?

Leegie Parker  |  Real Estate Advisor  |  DRE 01020534  |  Compass | 310-739-9202

timeline to homeownership

TL;DR

Most buyers in Los Angeles can go from starting the process to keys in hand in about 60 to 100 days, depending on preparation and how specific their search criteria are. The biggest factors that slow things down are skipping pre-approval upfront and making large purchases during escrow.

For most buyers in Los Angeles, the realistic timeline from starting the process to having keys in your hand is about 60 to 100 days. If you are pre-approved and actively looking, finding the right home typically takes 30 to 90 days, and from accepted offer to closing is another 30 to 45 days on top of that.

But here is the real answer. The timeline depends entirely on where you are starting from and how prepared you are when we begin. A buyer who has not yet talked to a lender is in a completely different place than one who is already pre-approved and ready to write offers. Let me walk you through the realistic timeline so you know exactly what to expect, from the very first conversation all the way to the moment you have the keys in your hand.

Start With Where You Are Today

When a buyer asks me how long it will take, my first questions back to them are about where they actually are in the process. Have you talked to a mortgage broker yet? Do you know what you can afford? Has someone run your credit? Do you have a sense of what kind of home you are looking for? Do you know what neighborhoods you want to be in?

All of those answers change the timeline. A buyer who is just starting to think about it is in a totally different position than a buyer who has already been pre-approved and knows exactly what they want.

My strong recommendation to anyone thinking about buying is this. Before you ever set foot in a home, sit down with a mortgage professional. Get pre-approved. Have them look at your financials and your credit. Know exactly what you can afford and what your monthly payment will look like. That single step saves people weeks of wasted time and a whole lot of stress later on.

Phase One: Finding the Right Home

Once you are pre-approved and actively shopping, the search itself typically takes anywhere from 30 to 90 days. That is a wide range for a reason. If your criteria are fairly open and you are looking in a couple of different neighborhoods, you will probably find something on the faster end of that range. If you are searching for a very specific kind of home in a very specific neighborhood with very specific must-haves, it can take significantly longer.

One thing I always tell buyers is to stay open. Some of the best home matches I have ever made were houses the buyer would have never clicked on if they had been searching alone. Being too rigid about your criteria can keep you looking for a year. Being open and willing to consider a few different options usually gets you home much faster.

The good news right now is that the Los Angeles market has higher inventory than we have seen in past years. That means buyers have more choices and a little more breathing room than they did during the most competitive stretches of the last few years.

Phase Two: From Offer to Acceptance

Once you find the right home and write an offer, the next step is the negotiation back and forth with the seller. This usually takes anywhere from a day or two to about a week or ten days, depending on how the seller responds and how much back and forth there is on price and terms. Sometimes offers are accepted the same day. Sometimes there are counteroffers, multiple offers from other buyers, or details to work through. It just depends on the situation.

Phase Three: Escrow and Closing

After your offer is accepted, you officially open escrow. From accepted offer to closing, plan on roughly 30 to 45 days. Here is what actually happens during that time.

Within the first three days of acceptance, you will deposit your earnest money into escrow, which is typically about 3 percent of the purchase price. At the same time, we are scheduling all of your inspections. Most inspections happen within the first 7 to 14 days, because you have a contingency timeline you need to honor and you want to know everything about the home as quickly as possible.

While inspections are happening, you are also working with your lender to complete everything they need for your loan, and the appraisal is being ordered and completed. Most loan and appraisal contingencies are resolved within the first 17 days or so.

Once you have completed your inspections, removed your inspection contingency, received loan approval, and cleared the appraisal contingency, you get what is called a clear to close. Loan documents are signed, the balance of your down payment goes into escrow, and then you close. Keys in your hand.

What Can Slow Things Down

In my experience, the biggest things that delay a closing usually have to do with the loan or the appraisal. Most of those issues get worked out without derailing the deal entirely, but they can cause some hiccups along the way.

The other thing that creates extra time and negotiation is when an inspection turns up something that needs to be addressed. The buyer and seller have to work out who is going to handle the repair, whether the seller will fix it, whether the buyer will accept the home as is, or whether the buyer will take a credit at closing and handle the repair themselves. This is essentially a second round of negotiation that happens after the offer is already accepted.

But here is the single biggest thing I see buyers do that can blow up an entire deal. They make a large purchase during escrow. A new car. New furniture on a credit card. Anything that changes their financial picture or their debt to income ratio while their loan is being finalized. I cannot say this strongly enough. Once you are in escrow, do not buy anything significant on credit. Do not open new credit cards. Do not change jobs if you can avoid it. Wait until after you have closed and the keys are in your hand.

What If You Are Paying Cash?

Cash buyers can move much faster because there is no loan process to wait on. A cash deal can sometimes close in as little as 7 to 10 days, though not all of them do. Being a cash buyer can also give you a real advantage in a multiple offer situation, because sellers know there is less risk of the deal falling apart.

That said, I always recommend that cash buyers do their inspections too. Just because you are not getting a loan does not mean you should skip your due diligence. This is most likely the largest purchase you will ever make, and you need to fully understand the condition of the home and everything in it before you commit. Skipping inspections to save a few days is one of the most expensive mistakes a buyer can make.

How to Set Yourself Up for the Smoothest Possible Process

If you want the buying process to move as quickly and smoothly as possible, here is what to do before you ever start looking at homes.

Get your mortgage person locked in. Fill out your loan applications. Submit all of your financial documentation. Have your down payment liquid and verified. Get clear on your timeline and when you want to be moved in. And take the time to really think through your wants and needs before you start looking, so you are not wasting weeks touring homes in neighborhoods that were never going to work for you because of your commute, your school district, or your lifestyle.

The Realistic Total Timeline

So if a buyer walked into my office tomorrow with no preparation and said, I need to find a home and be moved in as soon as possible, what would I tell them?

Best case scenario, with open criteria and good options on the market, you can be in your new home in about 60 days. Maybe 70. Worst case, especially if your criteria are narrow or inventory in your specific market is tight, plan on 90 to 100 days. That is a realistic range to set your expectations around.

A Note for First Time Buyers

If you are a first time buyer, I want you to hear this directly from me. The home buying process can feel overwhelming, but knowledge and understanding are what make it feel less scary. Take the time to learn the process. Ask your agent every single question that comes into your head. There is no such thing as a silly question or a stupid question when you are about to make the biggest purchase of your life.

Your real estate agent should be a trusted advisor who walks you through every step, explains the mortgage process, helps you understand the timeline, and answers every question with patience. That is the relationship you should expect.

Let's Talk

If you are even thinking about buying a home in Los Angeles, whether you are a first time buyer or someone who has bought and sold many times before, I would love to sit down with you. I offer buyer consultations for any and all buyers, and I am happy to walk you through every possible scenario and answer every question you might have. There is not much I have not seen in this market, and I love sharing what I know with people who are ready to learn.

Reach out anytime. I never gamble with your money or your equity, and I would love to help you navigate the process the right way.

TL;DR

Most buyers in Los Angeles can go from starting the process to keys in hand in about 60 to 100 days, depending on preparation and how specific their search criteria are. The biggest factors that slow things down are skipping pre-approval upfront and making large purchases during escrow.

For most buyers in Los Angeles, the realistic timeline from starting the process to having keys in your hand is about 60 to 100 days. If you are pre-approved and actively looking, finding the right home typically takes 30 to 90 days, and from accepted offer to closing is another 30 to 45 days on top of that.

But here is the real answer. The timeline depends entirely on where you are starting from and how prepared you are when we begin. A buyer who has not yet talked to a lender is in a completely different place than one who is already pre-approved and ready to write offers. Let me walk you through the realistic timeline so you know exactly what to expect, from the very first conversation all the way to the moment you have the keys in your hand.

Start With Where You Are Today

When a buyer asks me how long it will take, my first questions back to them are about where they actually are in the process. Have you talked to a mortgage broker yet? Do you know what you can afford? Has someone run your credit? Do you have a sense of what kind of home you are looking for? Do you know what neighborhoods you want to be in?

All of those answers change the timeline. A buyer who is just starting to think about it is in a totally different position than a buyer who has already been pre-approved and knows exactly what they want.

My strong recommendation to anyone thinking about buying is this. Before you ever set foot in a home, sit down with a mortgage professional. Get pre-approved. Have them look at your financials and your credit. Know exactly what you can afford and what your monthly payment will look like. That single step saves people weeks of wasted time and a whole lot of stress later on.

Phase One: Finding the Right Home

Once you are pre-approved and actively shopping, the search itself typically takes anywhere from 30 to 90 days. That is a wide range for a reason. If your criteria are fairly open and you are looking in a couple of different neighborhoods, you will probably find something on the faster end of that range. If you are searching for a very specific kind of home in a very specific neighborhood with very specific must-haves, it can take significantly longer.

One thing I always tell buyers is to stay open. Some of the best home matches I have ever made were houses the buyer would have never clicked on if they had been searching alone. Being too rigid about your criteria can keep you looking for a year. Being open and willing to consider a few different options usually gets you home much faster.

The good news right now is that the Los Angeles market has higher inventory than we have seen in past years. That means buyers have more choices and a little more breathing room than they did during the most competitive stretches of the last few years.

Phase Two: From Offer to Acceptance

Once you find the right home and write an offer, the next step is the negotiation back and forth with the seller. This usually takes anywhere from a day or two to about a week or ten days, depending on how the seller responds and how much back and forth there is on price and terms. Sometimes offers are accepted the same day. Sometimes there are counteroffers, multiple offers from other buyers, or details to work through. It just depends on the situation.

Phase Three: Escrow and Closing

After your offer is accepted, you officially open escrow. From accepted offer to closing, plan on roughly 30 to 45 days. Here is what actually happens during that time.

Within the first three days of acceptance, you will deposit your earnest money into escrow, which is typically about 3 percent of the purchase price. At the same time, we are scheduling all of your inspections. Most inspections happen within the first 7 to 14 days, because you have a contingency timeline you need to honor and you want to know everything about the home as quickly as possible.

While inspections are happening, you are also working with your lender to complete everything they need for your loan, and the appraisal is being ordered and completed. Most loan and appraisal contingencies are resolved within the first 17 days or so.

Once you have completed your inspections, removed your inspection contingency, received loan approval, and cleared the appraisal contingency, you get what is called a clear to close. Loan documents are signed, the balance of your down payment goes into escrow, and then you close. Keys in your hand.

What Can Slow Things Down

In my experience, the biggest things that delay a closing usually have to do with the loan or the appraisal. Most of those issues get worked out without derailing the deal entirely, but they can cause some hiccups along the way.

The other thing that creates extra time and negotiation is when an inspection turns up something that needs to be addressed. The buyer and seller have to work out who is going to handle the repair, whether the seller will fix it, whether the buyer will accept the home as is, or whether the buyer will take a credit at closing and handle the repair themselves. This is essentially a second round of negotiation that happens after the offer is already accepted.

But here is the single biggest thing I see buyers do that can blow up an entire deal. They make a large purchase during escrow. A new car. New furniture on a credit card. Anything that changes their financial picture or their debt to income ratio while their loan is being finalized. I cannot say this strongly enough. Once you are in escrow, do not buy anything significant on credit. Do not open new credit cards. Do not change jobs if you can avoid it. Wait until after you have closed and the keys are in your hand.

What If You Are Paying Cash?

Cash buyers can move much faster because there is no loan process to wait on. A cash deal can sometimes close in as little as 7 to 10 days, though not all of them do. Being a cash buyer can also give you a real advantage in a multiple offer situation, because sellers know there is less risk of the deal falling apart.

That said, I always recommend that cash buyers do their inspections too. Just because you are not getting a loan does not mean you should skip your due diligence. This is most likely the largest purchase you will ever make, and you need to fully understand the condition of the home and everything in it before you commit. Skipping inspections to save a few days is one of the most expensive mistakes a buyer can make.

How to Set Yourself Up for the Smoothest Possible Process

If you want the buying process to move as quickly and smoothly as possible, here is what to do before you ever start looking at homes.

Get your mortgage person locked in. Fill out your loan applications. Submit all of your financial documentation. Have your down payment liquid and verified. Get clear on your timeline and when you want to be moved in. And take the time to really think through your wants and needs before you start looking, so you are not wasting weeks touring homes in neighborhoods that were never going to work for you because of your commute, your school district, or your lifestyle.

The Realistic Total Timeline

So if a buyer walked into my office tomorrow with no preparation and said, I need to find a home and be moved in as soon as possible, what would I tell them?

Best case scenario, with open criteria and good options on the market, you can be in your new home in about 60 days. Maybe 70. Worst case, especially if your criteria are narrow or inventory in your specific market is tight, plan on 90 to 100 days. That is a realistic range to set your expectations around.

A Note for First Time Buyers

If you are a first time buyer, I want you to hear this directly from me. The home buying process can feel overwhelming, but knowledge and understanding are what make it feel less scary. Take the time to learn the process. Ask your agent every single question that comes into your head. There is no such thing as a silly question or a stupid question when you are about to make the biggest purchase of your life.

Your real estate agent should be a trusted advisor who walks you through every step, explains the mortgage process, helps you understand the timeline, and answers every question with patience. That is the relationship you should expect.

Let's Talk

If you are even thinking about buying a home in Los Angeles, whether you are a first time buyer or someone who has bought and sold many times before, I would love to sit down with you. I offer buyer consultations for any and all buyers, and I am happy to walk you through every possible scenario and answer every question you might have. There is not much I have not seen in this market, and I love sharing what I know with people who are ready to learn.

Reach out anytime. I never gamble with your money or your equity, and I would love to help you navigate the process the right way.

Leegie Parker 310-739-9202 Leegie@Leegie.com

KEY TAKEAWAYS

•        The total timeline to buy a home in Los Angeles depends entirely on where you are starting from. A buyer who has not yet talked to a lender is in a very different place than one who is already pre-approved.

•        Once you are pre-approved and actively looking, finding the right home typically takes 30 to 90 days, sometimes longer if your criteria are very specific. The current Los Angeles market has higher inventory than recent years, which gives buyers more options.

•        From accepted offer to keys in your hand, plan on roughly 30 to 45 days. Cash buyers can sometimes close in 7 to 10 days, but full inspections are still recommended regardless.

•        Best case for a buyer starting from scratch is about 60 days. Worst case is 90 to 100 days. The biggest things that derail a timeline are loan issues and buyers making large purchases during escrow.

•        The single biggest mistake buyers make is buying a car, furniture, or anything significant on credit during escrow. It can blow up your loan approval right before closing.

•        Getting pre-approved with a mortgage professional before you ever set foot in a home is the single best thing you can do to speed up the process and reduce stress.