Insights For Search Predicts Real Estate Collapse

In the past we have posted several times about how financial market traders can use relatively simple chart patterns involving higher-swing-lows and lower-swing-highs to successfully trade the stocks & commodities markets, options market and with other investing.

I was doing research on this powerful trading concept this morning and was thinking the incredible real estate market decline could be a good example of how well it can work. Therefore, I went to Google’s “Insights For Search” and searched for “MLS Listing” which is a widely used real estate term by home buyers and sellers.

This is the explanation of how Insights For Search works from Google: “Google Insights for Search analyzes a portion of world-wide Google web-searches from all Google domains to compute how many searches have been done for the terms you’ve entered, relative to the total number of searches done on Google over time. You can choose to see data for select Google properties, including Web search, Images, Product search, and News search.”

The Google Chart displays the most perfect long-term examples I have ever seen visually depicting the great power of swing highs and swing lows. Starting in 2004 the chart shows a series of 8 important swing highs and 6 major swing-lows. Of particular importance is the Dec 06 swing low which broke the old support level established Dec 05 by that major 2005 swing low. Once that old support level was broken in Dec 06 it conformed a major real estate bear market. The market is believed to be the most severely depressed real estate market of all-time, especially in areas of the U.S. such as Arizona, Nevada, California and Florida.

If you were buying/selling real estate the chart clearly shows starting in the year 2005 you should have been selling (not buying) real estate based on the important July 2005 swing-low (which you knew about at the end of August 05, and was confirmed Nov of 2005 which was the month the previous major swing-low was confirmed. The next series of 4 major lower-swing-highs which were in mid-2006, mid-2007, and early-2008 and 2009 confirmed the bear market was ongoing and getting even stronger.

The strong nationwide real estate decline started in late summer of 2005 in several Sunbelt states at the end of Aug 05 (at least according to my knowledge and statistics). However, it got underway a little later in other areas of the nation and the media often reports the bear market started during the year 2006. In my opinion this chart is one of the most picture book perfect and accurate examples of how powerful swing-highs an swing-lows can be. It is something you should always look at and take into strong consideration while trading the markets or investing.

Home-seller edge thanks to new type MLS listing

What with the real estate market being so terribly depressed and nationwide values declining home-sellers need every possible advantage they can get. Perhaps the best possible edge for home-sellers in today’s very tough real estate market what with all the low-priced foreclosures and recession is to enjoy a degree of price flexibility. Thus, if need be, the seller can drop their asking price even below the ideal price they had in mind and under the competing neighbors home price too.

That’s tough to do when needing to pay a Realtor® 6% or 7% commission to list and sell the home. However, the seller can now pay about one-half of the usual costly commissions by getting in the MLS basically free (no commission to get listed) and then only paying the buyers agent upon successful sale.

Here is an example of the substantial savings. Let us assume a property sells for say $500,000 and the home seller seller offers a 3% commission to the Buyer’s Agent. Based on a $500,000 sale price the commission would be $15,000 due the broker who actually brings he buyer, and a small flat rate listing fee of $297 to pay the referral firm to send the listing to their business associate real estate broker who lists the property in the-MLS. The typical fee just to get listed on the MLS is a additional 3%, or $15,000 in our example.

Using this example, the total savings in real-estate commissions is $14,703. Now, for the comparison in savings if you listed your home with a traditional broker for say 6%. The commission on a $500,000 sale with a 6% commission rate would be a high $30,000 which is 3% more commission and $15,000 in money vs a flat-rate mls listing. How incredible is that anyway!

This is the latest and best way to list and sell your home at substantial savings. America’s #1 flat fee mls listing firm with experience doing unique flat-fee mls listings dating back to 2002 is FlatFee.org. With Nationwide Coverage areas, Low Price fee and good customer service with client satisfaction, where very low overhead keeps the MLS-Listing cost so extremely low, Which low-cost gives you good price flexibility if needed, but without surrendering so much of your equity to the real estate brokers.