The median sale price is $1,025,000. The average number of competing offers is three. These are the numbers that those searching for homes in Los Angeles are currently facing. What this means is simple: if you are not ready to make an offer when a desirable property comes up, that home will likely go to someone else.

According to Redfin data, the median sale price in Los Angeles City reached $1,025,000 in March 2026, and in the last month, it has continued to rise by 2.5% compared to the previous year, hovering around the $1 million mark. Expanding to Los Angeles County as a whole, the three-month average median price was about $937,000 by May, and within the city, transactions are completed on average between 41 to 55 days, with an average of three offers per property.

The most common mistake in light of these numbers is viewing properties without pre-approval. In a market where three offers are common, sellers often do not take offers without a pre-approval letter seriously. By the time you find a home you like, it may already be too late. It is best to have pre-approval completed before you start viewing properties.

The second frequent mistake is completely waiving inspection conditions due to competition. While it may seem advantageous to make an offer without conditions in a bidding war, buying a home without an inspection that has plumbing or electrical issues can lead to repair costs that are much higher than expected after moving in. Instead of completely removing conditions, it is safer to compromise by shortening the inspection period.

The third mistake is deciding based on the rate from only one lender. The Consumer Financial Protection Bureau (CFPB) recommends obtaining quotes from at least three lenders for comparison, as a 0.25% difference in rates on a $1 million loan can significantly affect monthly payments. Rushing to make an offer and skipping lender comparisons are separate issues.

Closing costs are another important aspect to consider. They are typically reported to be between 2% and 5% of the sale price, meaning for a home in the $1 million range, you may need at least $20,000 to as much as $50,000 at closing. In the rush of offer competition, it's easy to overlook this cost, so it's wise to request a closing cost estimate from your lender when obtaining pre-approval.

If you are a family considering school districts, it's advisable to refer to ratings from GreatSchools or Niche, but since school district boundaries can change frequently, it's best to verify the assigned school for the specific address before purchasing. Los Angeles is a city where the disparity in school districts can be significant depending on the area, so making a decision based solely on price may lead to regrets later regarding commuting or resale.

Calculating reserves is also an easy aspect to overlook. After accounting for the down payment and closing costs, there may be little money left over, and for a $1 million home, just one repair after moving in can lead to substantial expenses. It's safer to keep reserves equivalent to at least three to four months of living expenses separate from the down payment.

If you are newly immigrated from Korea and settling in Los Angeles for the first time, the concept of bidding wars may feel unfamiliar. Unlike the buying process in Korea, where multiple people submit offers simultaneously and the seller chooses one, it's common to get swept up in emotions and submit offers that exceed your budget. It's better to set a limit based on long-term living plans and resale potential.

Within Los Angeles, there are areas like near Koreatown where the proportion of condo listings is high. Condos can have stricter lending criteria than single-family homes, and since HOA fees are an additional monthly expense, they must be included in your budget calculations. If you are considering a condo, it's wise to check the HOA financial documents before signing a contract.

Ultimately, the key in the Los Angeles market is speed. However, it's important to focus that speed on the offer stage while ensuring pre-approval, lender comparisons, and inspection decisions are completed beforehand. This article is not investment or legal advice, and it is recommended to consult a real estate professional before finalizing any contracts.