How Much Do Homes Really Cost in Los Angeles? Understanding True Home Buying Costs in SoCal

Buying a home in Los Angeles or anywhere in Southern California is a dream for many — but understanding the true costs involved can help you plan better and avoid surprises. The listing price is just the beginning! Here’s a breakdown of all the costs you should budget for when buying your SoCal home.

1. Purchase Price Obviously, this is the largest number — but in LA, home prices vary dramatically by neighborhood. Whether you’re looking in the Valley, Westside, or Orange County, expect to see a wide price range.

2. Property Taxes California’s average property tax rate is about 1.1% of the home’s assessed value annually, but it can vary by city and county. For example, a $700,000 home might have around $7,700 in yearly property taxes.

3. Homeowners Insurance Depending on your property and location, insurance can cost anywhere from $800 to $2,000+ per year.

4. Homeowners Association (HOA) Fees If your home is part of a community or condo, HOA fees can add hundreds monthly.

5. Closing Costs These fees — typically 2-5% of the purchase price — cover lender fees, escrow, title insurance, and other administrative costs.

6. Home Inspection & Appraisal Plan to pay around $500-$1,000 for a professional home inspection, plus $300-$600 for an appraisal, which your lender will require.

7. Moving Costs & Miscellaneous Expenses Don’t forget moving expenses, utility setup fees, and any immediate repairs or upgrades.

Final Thoughts: Understanding all these costs upfront will help you budget realistically for your LA home purchase. If you want a personalized cost estimate based on your target neighborhood or price range, feel free to reach out — I’m here to guide you every step of the way!

Reach out for more insight as to how we can help you with your home search.

Jesse Perez Group

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Office 818.435.2221

Cell 818.970.3975

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