Rizzotti JH Real Estate Blog

As interest rates on mortgages decline, it is a good time to consider refinancing into a lower rate mortgage or shorter term mortgage. Also, take advantage of any home equity lines of credit that are available. These lower rates can position you for the opportunities that are out there. Cost of borrowing money secured by real estate is as low as i have seen it in 20 years!

Consult with your real estate lender and CPA to determine any benefits due to these lower mortgage interest rates.

Cheers.

Ken

I would expect that as we finish 2008 and move into 2009, that sellers will begin to realize that the market has changed, as we move further from the height of the market in 2007. A more balanced market will likely take shape, but it wont be immediate. Qualified buyers will be able to purchase real estate off their highs, and get better values. Lower interest rates will certaintly help buyers.

I would expect that fundementals will become more important as we move forward, for both residential and commercial properties.

Ken

If you understand that nationaly we are in a recession, and the real estate market nationally started correcting 5/2006; and locally sometime after the peak in 7/2007, then conveying this to your seller clients is paramount to making deals happen. The buyers are aware of this, and demand prices at pre boom prices! Ultimately, as inventory continues to increase, prices will naturally adjust, and your seller client who was clinging to prices from the height of the market, may likley miss the boat and get a lower price tomorrow, than they would today. Remeber, a rising tide lifts all boats, but the reverse is true for a lowering tide!

So, communicate this to your clients and price to sell. Dont price 5 - 10% higher than the last sale, go 5% less. Results count.

Good luck.

Ken