Even the most seasoned homeowners can find the task of buying and selling homes simultaneously daunting. This especially holds for cities like Santa Barbara, as the market is pretty competitive. However, with proper preparation, research, and organization, you will be able to make this transaction far more manageable. This article will give you valuable information to ensure a smooth closing when you buy and sell at the same time in Santa Barbara. Stay tuned!
Buy and sell at the same time in Santa Barbara – Tips
Searching for a new home in Santa Barbara can be exciting and stressful simultaneously, especially in a competitive market. However, as a homeowner, you are in a better position than others to capitalize on the seller’s market and make a gentle transition.
Then you’ll only have to create a moving checklist and make sure you follow it step-by-step to have a successful move and start your life in a new Santa Barbara location.
But, before getting to this step, important tasks await. Some of the essential ones are finding a trustworthy real estate agent, exploring both markets, and determining your finances. So, when you start your Santa Barbara buying and selling journey, be sure to consider the information below.
Evaluate the housing market
The state of the housing market in Santa Barbara will be the most significant factor in timing your home buying and selling. The timing won’t necessarily differ much for the two as you will be staying in the area. However, the two completely different actions you are about to complete won’t happen precisely at the same time.
Therefore, knowing the type of market and the time it takes to close the deal will help you with other arrangements you’ll have to make, such as your packing, finding storage, and moving. Everything happening at once and quickly might feel overwhelming for your brain and your wallet too.
That’s why once you learn more about the local housing market, you should also look into options for moving on a budget and making it as affordable as you can. For example, start by researching suitable moving companies and decluttering your home so you have fewer items to transfer.
The buyer’s market
The buyer’s market means more houses are available than people who want to buy them. So, if you find yourself in a buyer’s market, it will probably be easier for you to find a new home.
The seller’s market
On the contrary, the seller’s market means there are more buyers in the marketplace than houses for sale available. You might sell your current home quickly, but you might experience some difficulty finding a new one.
Choosing a reliable realtor is essential to buy and sell at the same time
Whichever type of market you find yourself in, having a professional by your side is vital if you want to buy and sell at the same time in Santa Barbara. Your agent will offer you invaluable help and advice every step of the way. For instance, they will:
- determine your home’s value based on their knowledge and experience;
- talk to you about the right timing, strategies, and negotiations;
- answer all your questions during the process;
- help you create a perfect listing price and description, etc.
However, it’s worth mentioning you mustn’t hire the first agent you see. The golden rule is to interview at least three different real estate agencies and make your decision afterward. You need to find the one you feel comfortable working with and the one who has experience helping clients sell and buy a home simultaneously.
Understand your financials
Now that you’ve researched the market and found the right agent, it’s time to check your numbers. You should contact your mortgage lender and your financial planner to determine the following:
- the amount of liquid cash;
- how much equity you have in your home and what’s its reselling value;
- the loan products you qualify for.
Knowing this info will help you see what’s feasible for your financial situation and which of the following paths you should take.
Buying before selling
Here are some ways to sell your current home before selling it.
- Make an offer with a sale contingency which means you’ll be able to buy the house you want once you sell your existing home. This scenario typically works best in a buyer’s market.
- Ask for an extended closing if the odds are likely that you will sell your home in 30-45 days after buying a new one.
- Purchase a new home with your savings if you are in a financial position to do so.
- Purchase a new home with HELOC – home equity line of credit. This credit allows you to borrow against the equity of your current home.
- Buy a new home with a bridge loan, a short-term bank loan to cover your down payment.
- Or you could rent out your existing home, again, if you’re in the financial position to do so.
Pros
The advantages of buying first are that you’ll have where to move right away. Also, you’ll be saving yourself money because you’ll only need to move once and won’t have to think of temporary housing. Finally, you might feel less pressured to make quick buying decisions. If you know you can stay in your home for as long as you need, you will give yourself time to find the right new home.
Cons
However, if you go for this scenario, you might feel rushed to sell your current home and miss the potential best offer. A contingent offer might deem you less competitive in a competitive market such as Santa Barbara. On the other hand, you might not have enough cash to make a competitive offer.
Selling before buying
If you opt to sell your home in Santa Barbara first, here’s what you can do to make the process smoother.
- Create an offer with a settlement contingency. Once you have an offer for your existing home in your hands (before closing the deal), you can find the house you love and submit this offer. This means you’ll buy the home contingent on the sale of your existing house closing, which works best in seller’s markets.
- Find a temporary rental to make sure you have time to find a home you love.
- Sign a rent-back that enables you to sell your home and rent it back from the new owners until you find a house you want to buy.
Pros
The advantage of selling your current home first is that you’ll know exactly how much equity you can put towards your new home. Additionally, you can roll your existing equity into your new purchase easily. Finally, it’s probably less stressful to close one chapter of your life before starting a new one.
Cons
There are a few disadvantages of this situation. For example, you will have to find a temporary rental. Also, this will double your moving costs.
The takeaway
To be successful when you buy and sell at the same time in Santa Barbara, you have to get educated about the market and be ready for all scenarios. The key to completing both processes is a good organization and the right professional on your team. So, if you wish to sell your home in Santa Barbara fast, feel free to contact us.