Before ‘Million Dollar Listing L.A.,’ he was terrified to buy his first house

James Harris, founder of luxury real estate firm Harris & Partners, got his first big break in Los Angeles in a very old-school way: by buying his first house. Here’s how that kicked off a career in luxury real estate, a starring role in Million Dollar Listing Los Angeles, and why buying in the City of Angels isn’t as scary as you think.

Average home price: $929,572 (down 0.4% YoY, per Zillow)
Homes that sell over list price: 39.5%
Homes that sell under list price: 49.8%
Average rent: $2,650/month (down YoY)

How he got started: In 2010, Harris and his wife bought a single-story home in Studio City for $675,000. Although he’d facilitated plenty of real estate deals, buying himself “felt like an enormous step,” he admits. Even with an FHA loan requiring just 3.5% down, “That felt like an unbelievable amount of money. I was terrified!” The house was also far from perfect. “We didn’t buy our dream house; we bought the house we could afford and improved it,” Harris says, adding that they later sold it for $1.1 million. “That equity helped us buy our next home, and completely changed our trajectory.” Eventually, casting directors called his brokerage asking for an interview. “We genuinely thought the whole thing was a prank,” he admits. “Turns out it was very real, and we somehow ended up on the Million Dollar Listing franchise.”

His market’s pros: Sun, sand, sightings of Leo or J.Lo grabbing a latte—there’s a lot to love about L.A. “Most importantly, there’s a limited amount of really great real estate,” Harris explains. “What’s interesting right now is that it’s a very different market from a few years ago. There’s less competition; buyers have more leverage. I think difficult markets create some of the best buying opportunities because you’re not competing against 15 other people who are all willing to pay whatever it takes.”

The cons: High housing costs are just one headache, along with runaway insurance premiums and painfully slow permitting and construction. Plus, “Two houses can look almost identical on paper and be worth completely different numbers because of the view, school district, or even which side of the street they’re on,” Harris warns. “Local knowledge matters more today than it has in a long time. When the market is flying, and everything is going up, you can make a mistake, and sometimes the market saves you. Today, it won’t. You have to buy well.”

His advice: “I’m a huge believer in buying something where you can create value,” Harris says. “Maybe it needs renovating, or there’s an opportunity to add square footage.” He’s helping buyers ponder all the possibilities with UnderBuilt, a platform where homeowners and other professionals can plug in an address and learn what can be built in terms of additions, ADUs, height limits, setbacks, and more.

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