Real Estate Q&A with Michael Massa

Clear, Professional Guidance for Los Angeles Buyers, Sellers, and New Investors

Buyers

1. Should I buy a house in Los Angeles right now?
Yes. Los Angeles real estate has shown consistent long-term appreciation since the 1950s. While interest rates and prices fluctuate, demand remains strong, making LA a solid long-term investment for buyers.

2. How much money do I need for a down payment on a $1M home in Los Angeles?
Down payment requirements vary. Some buyers qualify with as little as 3.5% down. A trusted lender can help you find the right loan program for your financial situation.

3. What are typical closing costs for homebuyers in California?
Closing costs usually include lender fees, escrow and title services, and recording charges. In some cases, I’ve negotiated for sellers to cover part or all of these expenses.

4. How does a buyer representation agreement work in California?
A buyer representation agreement formalizes our partnership. It confirms I’ll guide your search, negotiate on your behalf, and outlines compensation. It ensures transparency so we can focus on finding your home.

5. Can buyers in Los Angeles still negotiate seller concessions?
Yes. Every deal is unique. Depending on the circumstances, it’s possible to negotiate credits, repairs, or closing cost assistance. My role is to analyze each deal and secure the best terms for you.

6. How do I relocate to Los Angeles from another state?
Relocation takes planning, but I make the process seamless. I’ll coordinate financing, set up virtual tours, arrange in-person showings during your visit, and provide insights on neighborhoods, schools, and trusted vendors.

7. What are the best neighborhoods in Los Angeles for first-time homebuyers?
It depends on your priorities. Some areas offer affordability while others focus on long-term growth. Once I understand your goals, I’ll recommend neighborhoods that fit your needs.

8. What is the current average mortgage rate in Los Angeles?
Rates change daily. I can connect you with today’s averages and, when you’re ready to apply, help you compare lenders since rates often vary.

9. How do contingent offers work when buying a home in California?
A contingent offer means your purchase depends on selling your current home first. There are different structures, and I’ll guide you through the best option for your situation.

10. Is it better to buy a condo or a single-family home in Los Angeles?
Condos typically mean a lower entry price and shared amenities but come with HOA rules and fees. Single-family homes provide more independence and space but require higher costs and full maintenance responsibility.

Sellers

1. How long does it take to sell a home in Los Angeles in this current market?
It depends on your neighborhood. Share your address or ZIP code, and I’ll provide the most current data.

2. How much are the costs of selling a home in California?
I can prepare an Estimated Settlement Statement outlining commissions, escrow and title fees, and any loan payoff.

3. Do Los Angeles home sellers still have to pay buyer agent commissions?
Generally, yes, but it’s negotiable depending on the transaction.

4. What home improvements increase value the most before selling?
Kitchens, bathrooms, and curb appeal improvements often provide the highest returns. Before investing, let me assess whether updates are necessary for your property.

5. Should I sell my home now or wait until interest rates go down?
The right time depends on your personal goals. Historically, when interest rates fall, home prices rise.

6. What is the ULA tax in the City of Los Angeles real estate?
Beginning June 30, 2025, homes sold above $5,300,000 will be taxed at 4 percent. Sales at $10,600,000 or more will be taxed at 5.5 percent.

7. How do I price my home to sell in Los Angeles?
Strategic pricing, often just below market value, generates buzz and competition. This approach typically leads to stronger offers.

8. Is home staging worth it when selling in Los Angeles?
Yes. Professionally staged homes stand out in photos, attract more buyers, and often sell for a higher price.

9. Can I sell my home if I’m behind on payments or in foreclosure?
Yes. It can be more complex if the foreclosure process has already started, but it’s still possible. Reviewing your loan documents and timelines is key, and I can guide you through it.

10. How do multiple offers work when selling a home?
They don’t happen by accident. With the right marketing, pricing strategy, and negotiation, we can create the competition that leads to multiple offers.

New Investors

1. What does Cap Rate mean in Los Angeles real estate investing?
Cap Rate (Capitalization Rate) is net operating income ÷ purchase price. Higher cap rates often mean higher returns with more risk. Lower cap rates usually signal stability.

2. What does NOI mean in real estate investing?
NOI (Net Operating Income) is rental income minus expenses such as property taxes, insurance, landlord-paid utilities, repairs, maintenance, and management fees. It’s calculated before mortgage and income taxes and is used to measure profitability.

3. What does GRM mean in multifamily investing?
GRM (Gross Rent Multiplier) shows how many years of rental income it would take to equal the property’s purchase price.

4. Is rent control still in effect in Los Angeles County?
Yes. Send me the property address and I’ll confirm the specific rules for that location.

5. What are the best neighborhoods in Los Angeles for rental property investment?
It depends on your goals. Whether you want steady cash flow, long-term appreciation, or both, I’ll match your objectives with the right areas.

6. How does California’s price-gouging law affect landlords?
During a declared emergency, the law limits rent increases to protect tenants and stabilize housing. I can walk you through the current rules.

7. What is the safest way to finance a multifamily property in Los Angeles?
It depends on your financial position. A trusted lender can recommend stable financing options that align with your strategy.

8. Are short-term rentals and Airbnb still legal in Los Angeles?
Yes, but under city restrictions. You must register, use your primary residence, and follow hosting limits. Rules change, so always confirm before listing.

9. How do I calculate cash flow for a duplex in Los Angeles?
Add up rental income, subtract expenses (mortgage, taxes, insurance, management, and reserves for repairs). If the result is positive, the property generates cash flow.

10. How do I find off-market multifamily deals in Los Angeles?
Through networking, market knowledge, and direct outreach, I connect clients with properties before they reach the open market.

I love answering questions, but even better than reading about real estate is having a trusted partner walk you through it. Whether you’re buying your first condo, selling a luxury estate, or scouting multifamily deals, I’ll put in the work to make sure you feel confident every step of the way.

Let’s talk about your goals and make a plan that works for you.

I work 24/7 and love what I do. Contact me anytime!

MICHAEL B. MASSA
REALTOR® | DRE: 02082631
Direct: 310.779.9007 | MassaEstates.com
Coldwell Banker Realty | Los Angeles
Mike@MassaEstates.com