5 Reasons I Should Buy Into Santa Barbara Real Estate Today!!
categories: Buyer's Resources, First-time Home Buyers, Santa Barbara
Many true buyers are sitting on the sidelines these days deciding on when to get into the real estate market. Ultimately this decision for each individual will be based on many different factors. If your own personal reasons are leading to you wanting to get into the Santa Barbara Real Estate market right now, here are 5 factors today that should be a part of your thoughts.
1) You can not time the bottom of the market. Timing the bottom of the market is incredibly hard to do and often harder to resist. With current inventory at a decent amount and mortgage rates very low, find a perfect place with your Realtor and then try and bargain. Even if the selling price seems to be very good, offer lower…if it is not accepted you can move on.
2) Low mortgage rates. Most economists agree that financing will become more expensive in the future. By now we have all heard our share of stories about financing woes even for well qualified people. Currently, the 30 year loan is now roughly at 6.1% and most economists see it reaching 6.5% by the end of the year and up to a 7% forecast sometime in 2009. So even if home prices do fall some more, there will most likely be a penalty to pay with higher interest rates.
3) Rates on “larger conforming mortgages”, which is almost a given for most buyers in the Santa Barbara area, won’t be dropping much. Even though the conforming amount has risen to $729,000 in the Santa Barbara area, investors are shunning these big jumbo loans. Because of this, these larger loans are unlikely to see a drop in rates in the coming year and then the program for these “jumbo conforming” loan amounts are set to all disappear.
4) Don’t just by for a cheap price, buy in a good area. Sure you might get excited about that great foreclosure price, but when you are buying a home, you are also buying the neighborhood. If more than a few foreclosures have come up in one area, there most likely will be more. They tend to be bunched in particular areas and this might not be the best recipe for stability in a neighborhood. An old rule of thumb is to buy the worst house on the best block…not the worst house on a bad block.
5) Work with a great Realtor that has experience and who you personally have a good connection with. This I think just needs to be accepted since times are tough for many Realtors. Make sure your Realtor is not desperate and just steering you into a home to finally make a deal. Sit down with your agent, express your needs and plans and get a good sense of whether they are looking out for you or just looking to get paid.
Further Reading: The Positives of FHA Loans here in Santa Barbara, Goleta and Carpinteria areas, The 2 Major First Steps in Buying a Home in the Santa Barbara area, Is My Realtor a Santa Barbara Neighborhood Specialist in My Area?, Search the Santa Barbara, Goleta, Montecito CA MLS for Free, My Home has Declined in Value…Can My Property Taxes Be Lowered?, Plan For Your Santa Barbara Remodel Now, So You Don’t Go Crazy Later, Little Known Advantages of Blogging Realtors…Santa Barbara and Montecito CA.
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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