Home Sellers Find Equity Saving Options In A Falling Real Estate Market!
May 21, 2006 (PRLEAP.COM) Business NewsHome Sellers Find Equity Saving Options In A Falling Real Estate Market!
The recent rise in interest rates is contributing to a rise in property pre-foreclosures and foreclosures in Northern California. Realtydollars2u.com provides a fee saving solution to home sellers trapped in an interest rate bubble!
Northern California home sellers stung by rising interest rates and falling equity now have equity and credit saving options and Fitch Properties prefers to call those savings Realtydollars2u! Fitch properties was designed to offer amazing real estate services at affordable prices with prices starting at $249.00. The Broker is hands on, he visits each sellers home, takes quality pictures and measurements and promotes their home on the Multiple Listing Service in addition to providing full web service exposure, a for sale sign, a lock box, and does this all for a fraction of the cost that others charge. Fitch Properties has sold hundreds of homes for seller's in the region of Northern California saving them hundreds of thousands of dollars. Fitch Properties is not just a for sale by owner service where you walk away without servicing the needs of your client, or properly responding to offers, its much closer to the definition of full service realty, but their services are executed at affordable prices.
Wisdom shows us that home owners are getting squeezed by unconventional loans and are now finding that they cannot refinance in a falling market. Fitch States "Sellers were sold a bag of goods by mortgage lenders looking to make a fast buck and many sellers are in trouble, and my fear is that it will only get worse." Negative amortization type loans, adjustable loans, interest only loans 100% financing, 125% financing and now 50 year mortgages. It appears no thought went into the reality that interest rates do rise too! Right now if you are not in a fixed interest rate mortgage you are very likely feeling the pinch. "In the trenches I see listings beginning to stagnate at the low end of the market, there is visible downward pressure at the low end and the low end is the driving force of the real estate market." "I can truly say that these are unstable times for real estate, and if the fed continues to push higher … watch out!" Real estate sellers are finding it difficult to replenish their pocket books with a quick equity line … that money is mostly gone now, completely vanished for most home owners, moreover the CPI continues to rise and inflation fears continue to spook this market. "Flight to quality seems to be flight to gold or other commodities, but not the real estate market or the bond market."
One thing that is not being considered by the pundits is what happens when the two year adjustable mortgages obtained within the last year begin to adjust higher? Fitch believes in looking at the positives … "if the fed stops raising rates today we will be okay, but they have to stop right now!" "The damage that will be caused to the overall economy will be significant if they don't stop now." The fed needs to figure this out and figure it out quickly. The overall market cannot handle a real estate crash. “The real fear is that at some point property owners will have no choice other than to walk away from their mortgage obligations and the ripple effect to that would be equivalent to the savings and loans scandal of the 90’s!
"Yes, there are still buyers out there and there will always be buyers, but the rate of "sale pendings" to listed properties has dropped dramatically." Today we are seeing hundreds of price reductions daily, but that doesn't tell the true story as home sellers are pricing themselves out of the market to begin with, only having to drop their listing price three weeks into their listing. Fitch points out one fatal seller error and he sees it all the time … "Pricing your home too high initially will make it worse for yourself. Sellers feel if they price their home on the high side then they can accept a lower offer that will be palatable for them, and it does not work like that. Sellers will be continuously dropping their price far below where they would have sold in the first place had they priced correctly." "The bottom line is that if a home sits on the market forever it has a stigma attached to it regardless of how nice it is … pricing correctly at the onset of the listing is the key." Fitch agrees that there will always be buyers at a price; creativity comes into play in a buyers market. Right now you need creativity, you need expertise, and you want someone to hold your hand in an unstable market and realtydollars2u / Fitch properties offers to do just that."
Ed Fitch is a published author and has written articles for Northern California Real Estate Publications.
Contact Ed Fitch for more insights into this topic. Direct line: (916) 782-5015 Email: firstname.lastname@example.org Other helpful information regarding the can be found at: http://www.realtydollars2u.com.
For More Information Contact:
Ed Fitch, Broker