Santa Barbara Real Estate

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Buying in an Appreciating Real Estate Market

March 3rd, 2016 · No Comments · Hope Ranch Real Estate, Montecito Real Estate, Santa Barbara Real Estate

3SBHarborPotterSept2015 Santa Barbara Harbor by local artist Chris Potter

Sell first or buy later depends on your financial circumstances, what the current housing market is, and your tolerance for temporary displacement.  The ideal in an appreciating market is to buy first and then sell your current home.  In a depreciating market it’s better to sell your home and then buy. Currently in Santa Barbara we are in a stable and gradually appreciating market.

For most people the ideal of purchasing first and then selling is simply not possible. To buy first, if you have an existing mortgage, means you have to qualify and pay for two mortgages plus come up with a down payment. Most home owners need their equity from their current home to purchase.

The ideal of purchasing and selling concurrently is not realistic and simultaneous closes are rare.  You could make a “Contingency Offer” but there are a myriad of problems that include the inability to make a strong offer to putting you in the awkward position of accepting an offer that may not be ideal. How best to proceed then? This is where you need to seek the advice and counsel of a local real estate professional that knows your market and has a razor sharp knowledge of sales and values in your neighborhood.

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