Extending the Good News for Home Buyers

Let's first turn to the terrific news regarding the housing stimulus. Earlier this month, the U.S. Congress overwhelmingly passed and the President signed into law new measures to maintain the momentum for a housing market recovery. The home buyer tax credit, originally scheduled to expire at the end of November will now be available through the middle of next year and more potential buyers will be able to take advantage of it. The income limit was also increased and many move-up buyers - not just first-timer purchasers - also will qualify. Furthermore, loan limits will not shrink as was planned for next year; in high-cost areas, the loan limit will remain at near $730,000 in 2010, thereby permitting more consumers to tap into the historically low mortgage rates.

As most of us are aware, the housing market recovery to date has been concentrated in the lower-end starter home segment. While the mid-priced market has begun to show signs of life, it is still far below normal activity. The upper-end remains sluggish. Therefore, enlarging the tax credit to include move-up
buyers will add the necessary "juice" to broaden the recovery. The accompanying increased velocity in home sales will mean more economic activity. Also, even though there may be less impact in the overall net inventory (a person sells before buying so it looks as a "wash" on inventory), the months' supply will fall because of rising sales. Increased sales have the added benefit of making HVCC and appraisal issues less problematic since more comparables will be available.

Adding it all up, home sales are now expected to get a boost by roughly 15 percent next year. Existing-home sales are forecast to post 5.7 million units in 2010 (up from 5 million units in 2009). New home sales will also rise, reaching 550,000 (from 400,000). More importantly, inventory will likely fall to a 6-7 months' supply by the middle of next year. That draw down of inventory means that that there are likely to be modest home price gains. Roughly speaking a 2-5 percent price gain is likely in many parts of the country in the next year.

Rising home values will prevent home prices from overcorrecting even further. Home prices have, indeed, been overcorrecting and have led to sizable destruction in middle-class housing-related wealth. By contrast, stock market and financial wealth have experienced spectacular gains in the past nine months. Despite those gains, however, consumer confidence still continues to tread near historic lows.

Why is there a disconnect between the rising stock market and low consumer confidence? Most middle-class families have the majority of their wealth tied to housing and less to the stock market. So as long as home values fall, then consumer confidence and the broader economy will face challenges. Therefore, housing-focused stimulus measures will help households build up their housing-wealth (again) and lay the foundation for a sustainable economic recovery.

There were those who argued against the home buyer tax credit. They contended that it would be cheaper for the government just to let home values slide by $8,000 (the amount of the credit) because from a buyer's point of view, there is no difference between a $8,000 credit or an equal amount decline in home value. However, a further decline in home value by that amount would have translated into a $700 billion wealth destruction for middle-class home-owning families. Such an unnecessary loss of household wealth would hold back general consumer spending and thereby hinder a broader economic recovery. But with the tax credit extended and expanded, rising home sales will help nudge home values upward rather than continuing to overcorrect. Yes, the tax credit extension will have an impact on the federal budget deficit - around $10 billion. But those monies will be easily recovered as the economy gets a boost in addition to preserving the middle-class wealth.

The commercial real estate market will also benefit, though as always after some lag time. As the economy becomes more fully entrenched in "recovery" mode, employment will start to turn around. Rising employment and recovering consumer wealth will mean an eventual increase in demand for office, retail, and industrial space.

As always, there are some caveats. Despite the very positive news on the housing stimulus, there remain significant risks to the forecast. Mortgage rates will rise from their rock-bottom points as we move into the next year. The Federal Reserve will slowly start the unwinding of its mortgage-backed security purchases. Also, consumer prices will be watched for any sign of accelerating inflation. Bond investors, therefore, will be cautious about lending at such a low rates. The 30-year fixed rate is likely to reach 5.7 percent by the end of 2010 from the current 5.0 percent.

The labor market is another worry. Though anticipated, the rising unemployment rate is a painful reminder that not all is well. The unemployment rate in October zoomed into double digits - 10.2 percent, its highest level since 1983. And the climb is not over yet - look for unemployment to hit 10.4 percent before reversing. With 7 million job cuts in the past two years, the current total payroll employment at 130.8 million is even below the total jobs that existed in 2000. The country has about 25 million more people in 2009 compared to 2000, yet the total number of jobs has remained unchanged. The silver lining is that the pace of job cuts is now less sharp now than in the first half of the year. Still, the jobless rate unfortunately will remain stubbornly high for quite some time. While job creation is expected to turn positive by spring, unemployment will likely be at 9.5 percent by November 2010 at the time of the mid-term elections. A more-than-usual number of elected officials will be voted out.

Despite the risks of rising mortgage rates and rising unemployment, the housing outlook has significantly improved. As the fear of falling home values disappears, that one key negative factor that has held back home sales will no longer be in play. Happier days are ahead.

Reprinted from REALTOR Magazine [November, 2009] with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2009. All rights reserved.

Hello everyone, The U.S. Treasury Department on Monday released a plan to speed up and encourage Short Sales as a means to help families avoid foreclosure. We've been offering Short Sale proposals to public officials for over a year, and although the new guidelines aren't everything we were hoping for, they do represent a significant improvement over the current situation. Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities. Here's an initial Reuters news story outlining the new policies. As we've said throughout 2009, the key is to become experts in the process. We expect a tremendous increase in Short Sales during the coming year, and it's vital that RE/MAX Associates continue to lead the industry in Distressed Property skills and training. At RE/MAX International, our staff is quickly developing resources to help you understand the new Short Sale guidelines and explain them to your buyers and sellers. Be sure to open the Mainstreet Link e-mail you receive tomorrow. It will contain the latest news and details about the Treasury plan, as well as video and print materials you can add to your marketing presentations. We're also putting consumer information on remax.com and will be communicating ongoing developments via Facebook and Twitter. Thank you. Dave Liniger RE/MAX International Chairman and Co-Founder Copyright 2009 RE/MAX International, Inc. 5075 S. Syracuse Street | Denver, Colorado 80237

Local Market is Improving

No question about it, the local real estate market is improving and no one really knows why. I suppose that people are just tired of the doom and gloom in the newspapers and television. There is a lot of pent-up demand. So people are now starting to buy homes even though the financial news is still not good.

What ever the reason, it's happening. Prices are still depressed and it can take some time to get your home sold but there are buyers out there looking today for your home to come on the market. Statistics are now just beginning to show this trend but I can't depend on them to predict the future. 

So now is the tme to buy before home prises rise again.


Existing-Home Sales Rise in April

Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the National Association of Realtors.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below the 4.85 million-unit level in April 2008.

Lawrence Yun, NAR chief economist, said first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. "Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," he said. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."

"Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market," Yun said. "Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida - this will set the stage for healthy market conditions going forward."

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. "This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008," Yun said.

The national median existing-home price for all housing types was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said conditions are optimal for buyers with good jobs and long-term plans. "We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas," he said. "When you add the $8,000 first-time buyer tax credit, it's hard to imagine a better time to make an investment in your future through homeownership."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.

Total housing inventory at the end of April rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2.-month supply at the current sales pace, compared with a 9.6-month supply in March. "The gain in inventory is largely seasonal from sellers entering the spring market. Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier," Yun noted.

Single-family home sales rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.

Existing condominium and co-op sales increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.

Regionally, existing-home sales in the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. The median price in the Northeast was $237,400, which is 9.6 percent lower than a year ago.

Existing-home sales in the Midwest slipped 2.0 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. The median price in the Midwest was $138,800, down 11.7 percent from April 2008.

In the South, existing-home sales increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. The median price in the South was $148,000, which is 12.8 percent below a year ago.

Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008.

Reprinted from REALTOR Magazine [June, 2009] with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2009. All rights reserved.

Recycling Compact Fluorescent Light Bulbs Is a Bright Idea

Are you trying to find ways to green your home and save some money on your energy bills? You can do both by replacing incandescent light bulbs with Compact Fluorescent Light (CFL) bulbs.

CFLs and other fluorescent light bulbs are an extremely energy-efficient lighting option, as they require less energy than incandescent light bulbs to provide the same amount of light. They also last up to 10 times longer than incandescent light bulbs, making them a cost-effective alternative to incandescent lighting.

By using fluorescent lights and reducing home energy use, Americans can reduce the amount of coal burned for energy, a major source of mercury releases. A coal-fired power plant emits 13.6 milligrams of mercury to produce the electricity required to power an incandescent light bulb, compared to just 3.3 milligrams for a CFL. Thus, using CFLs reduces the amount of mercury emitted into the environment.

However, because CFLs contain an average of 4 milligrams of mercury, they need to be recycled. Fluorescent light bulbs that are discarded in the trash, disposed of in landfills, or incinerated will break and release mercury into the environment. Therefore, the U.S. Environmental Protection Agency strongly encourages the recycling of all mercury-containing light bulbs.

Some states require households to recycle their mercury-containing light bulbs after they burn out. Household hazardous waste collection programs often accept these light bulbs. For information about state-specific requirements, please contact your state or local environmental regulatory agency. If your state or local environmental regulatory agency offers no recycling options, and allows disposal of CFLs in household garbage, place the burned-out fluorescent light bulb inside two sealed plastic bags. Place the sealed bags inside a trash can or other protected outdoor location to await the next scheduled trash collection.

For those seeking mercury-free, energy-efficient alternatives to mercury-containing light bulbs, lighting products that use light-emitting diodes (LEDs) fit the bill. LEDs are currently used in applications ranging from traffic signals and exit signs to Christmas tree ornaments and the Times Square New Year's Eve Ball. While LEDs are currently more suited to task-specific lighting such as desk lamps, reading lights, and nightlights, several manufacturers are working to develop LEDs for general lighting uses.

As with many other household items, such as paint and certain cleaners, we need to pay attention to how we dispose of CFLs. With proper care, fluorescent bulbs can benefit the environment through reduced energy consumption and save you money.

To learn more about CFLs and other fluorescent light bulbs, their energy efficiency, and proper disposal, please visit www.epa.gov/bulbrecycling.

Find out what household hazardous waste collection and recycling programs are available in your area by visiting www.epa.gov or www.earth911.org.

Courtesy of ARA Content

Existing-Home Sales Show Strong Gain In December Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors. Existing-home sales - including single-family, townhomes, condominiums and co-ops - jumped 6.5 percent to a seasonally adjusted annual rate1 of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007. For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales. Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future." Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply2 at the current sales pace, down from a 11.2-month supply in November. Yun said the market is underperforming and hurting the broader economy. "We've added 25 million people to our population over the past decade and housing affordability conditions are the best we've seen since 1973, but household formation is much lower than expected," he said. "Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery." The national median existing-home price3 for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it's an excellent time for first-time home buyers with good jobs. "The typical buyer plans to stay in their home for 10 years, which is the correct approach in today's market," he said. "With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who've been on the fence should take a closer look at today's market." McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent. Single-family home sales rose 7.0 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000. The median existing single-family home price was $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007. Existing condominium and co-op sales increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units. The median existing condo price4 was $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007. Regionally, existing-home sales in the Northeast slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago. Existing-home sales in the Midwest increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007. In the South, existing-home sales rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8.0 percent from a year ago. Existing-home sales in the West jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007. Existing-Home Sales Rise on Improved Affordability Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors. Existing-home sales - including single-family, town homes, condominiums and co-ops - rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007. Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. "The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island," he said. "The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike." NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. "This is the first time since November 2005 that home sales have been above year-ago levels," he said. "Credit tightened at the end of September, but the improvement demonstrates that buyers who've been on the sidelines want to get into the market to make a long-term investment in their future." According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August; the rate was 6.38 percent in September 2007. Yun said there may be market disruptions. "The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners," he said. "Additional housing stimulus would stabilize prices more quickly, which in turn would bring faster stability to Wall Street. Removing the repayment feature on the first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory." Total housing inventory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July. The national median existing-home price3 for all housing types was $191,600 in September, down 9.0 percent from a year ago when the median was $210,500. "Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions. These are pulling the median price down because many are being sold at discounted prices," Yun explained. "The current market is not being dominated by speculative investors. Rather, 80 percent of current buyers are purchasing a primary residence, which is a bit higher than historic norms." Single-family home sales increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from a pace of 4.35 million in August, and are 3.8 percent above the 4.45 million-unit level a year ago. The median existing single-family home price was $190,600 in September, which is 8.6 percent below September 2007. Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 560,000 units in September, but are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price4 was $199,400 in September, down 10.2 percent from a year ago. Regionally, existing-home sales in the West jumped 16.8 percent to an annual rate of 1.25 million in September, and are 34.4 percent higher than September 2007. The median price in the West was $253,600, down 18.5 percent from a year ago. In the Midwest, existing-home sales increased 4.4 percent to an annual pace of 1.19 million in September, but are 2.5 percent below a year ago. The median price in the Midwest was $152,500, which is 7.9 percent lower than September 2007. Existing-home sales in the South rose 2.2 percent in September to a pace of 1.90 million but remain 7.8 percent below September 2007. The median price in the South was $167,200, down 4.1 percent from a year ago. In the Northeast, existing-home sales slipped 1.2 percent to an annual pace of 840,000 in September, and are 7.7 percent lower than a year ago. The median price in the Northeast was $246,800, down 5.4 percent from September 2007. Reprinted from REALTOR Magazine [November, 2008] with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2008. All rights reserved.

Seven Green and Easy Ways to Save Money

Saving money and "going green" are important issues for many people. While saving money has always been ideal, green living is becoming more and more mainstream every day. In fact, "going green" has become more than a buzz phrase; it is a way of life for many. Fortunately, there are several ways to do both.

There are several websites dedicated to living "green" which contain suggestions in addition to the top seven listed here. To make it easy, these are all things you can do right now to save and conserve.

Print Less

Do you really need to print out emails and documents as often as you do? If you have it on your computer and need to take a document with you, put it on a flash drive to view on your laptop. Of course, if you don't have these items, you may need to print if you are referencing documents or websites on-the-go.

When printing is necessary, reuse whatever you can. Once you no longer need the printed copy of your document or email, do not throw it away. Flip it over and use it for scratch paper, or put it back in your printer to use the other side.

Want to do more? Purchase recycled printer paper.

No More Paper Towels

This has been the most recent change in my home. We just ran out of our last roll of paper towels, and are now using our cloth kitchen towels instead. Here's what I suggest:

Get a small plastic trash can or bucket and place it somewhere in your kitchen. Pull your hand towels and kitchen towels out of your linen closet and place them in your kitchen. You can hang a couple, or use a basket to have several available at all times. When you need to dry your hands or a dish, or wipe up a mess, use a towel. Once the towel gets to wet or soiled to use, put it in the small trash can or bucket. Once the container is full, take it to the washer and launder the dirty towels.

Want to do more? Be sure you add other items to the load of laundry so you are not running your washer and dryer when it is not needed.

Slow Down

We are all very busy. And it can be easy to speed along a freeway, highway, toll road, etc. If we are honest with ourselves, most of us probably do not stick to our local speed limit. Here in Orange County, California, the speed limit on freeways is 65 miles per hour. Most drivers are zooming by at about 80 miles per hour. However, if you drive below 70 miles per hour you can save a lot of money on gas. Leave on time to reach your destination, and slow down while driving.

If you keep your speed between 30 and 60 miles per hour, you can increase your gas mileage by up to 30% according to AAA's Fuel Gauge Report website.

Want to do more? If you are local to your place of work, walk or bike to work. You can also use public transportation if it is available. If all of those options aren't feasible, try to find a friend who will carpool with you.

Eat Less Fast Food

I haven't forgotten how busy we are... but fast food has a huge impact on the environment, your budget, and your waistline.

Fast food uses a lot of packaging that simply gets wasted. Think of the straw, lid, cup, wrapper, box, and bag that comes with nearly every meal! Fast food can also cause a long list of health problems because of high fat, cholesterol and sodium content. And then there is the amount of money fast food costs. When you get a "combo" meal (burger, fries, drink) it can cost $7 per person!

My family is reducing the times we eat on-the-go every week, and we are already seeing the savings. Our average fast food bill is around $17.00. Some places are cheaper than others, but that was our average for two adults and one child. If you eat fast food three times per week, using my average, that adds up to $51 per week. That is over $2,600 per year. If you reduce that to once per week, you save over $1700 per year, and you are more likely to be healthier too.

Want to do more? Avoid fast food altogether and bring a sandwich and snacks from home in case you need to eat while you are out.

Turn off the Water

Water costs money and the extra running water that isn't being used adds up to a lot you could be saving.

You can waste up to 35 glasses of water by leaving the water on while you brush your teeth. What I suggest is wetting your brush, filling a glass or cup with water, then turning the water off. Brush, and then rinse using the water in the glass.

After you shower, be sure you turn off the faucet completely.

If you are rinsing dishes in the sink, or washing your dishes by hand, don't leave the water running for a long time. And if you need to walk away from the sink to do something else, be sure you turn off the water before you get side-tracked.

Want to do more? Check all your sinks and showers and other water sources for leaks. Be sure nothing is leaking or dripping. If you find a faucet that is turned off and still drips, take some time to tighten it up.

Turn off the Lights

This is a simple, yet forgettable action. Over the last several weeks I have realized how often all the lights in our house are turned on. I know that is a waste of energy, and a waste of money.

Remember all the times your parents told you to turn off a light when you leave a room, and follow that tried and true advice.

Want to do more? Change to CFL bulbs to save even more. These bulbs will become the requirement between 2012 and 2014 - you might as well get a jump on the future now. CFL bulbs use up to 75% less energy than incandescent bulbs, and can last up to 10 times longer.

No More Bottled Water

Tap water is not my thing. I love the environment, but I feel like bottled water is cleaner. In some areas it can be, depending on which bottled water you drink. So, even those who don't like tap water - please hear me out.

Many bottled waters are coming under scrutiny for being no less filled with contaminants than tap water. And, did you know that bottled water can cost up to 1900 times more than using your own tap water? What's the point? If you need the convenience of drinking water while you're out and about, I've got that covered as well.

I recommend switching to an in-home water filtration system. Nothing fancy, just a BRITA or PUR water container which contains a filter. Just fill it up, and you're ready to have great water. Both brands offer coupons to buy their product on their websites.

When we switched, I found that each brand had a pitcher that came with a free travel bottle. Use that for taking water to go. If you need more bottles, be sure and buy a couple so everyone in the family has one. The money you spend on getting started will be quickly made up with your savings on buying bottled water.

Want to do more? Reduce other disposables in your home by replacing them with reusable products. For example, get rechargeable batteries for anything battery operated. This will save money and help the environment with less chemical waste.

Do you have other tips for going green to save green? Share your ideas with friends and family and make changes that make sense. Change is good, pass it on!

by Anna Bourland of Advanced Access

"The safe way to double your money is to fold it over once and put it in your pocket." - Frank Hubbard Existing-Home Sales Down, Inventory Inches Up Existing-home sales - including single-family, townhomes, condominiums and co-ops - fell 2.6 percent to a seasonally adjusted annual rate of 4.86 million units in June from a pace of 4.99 million in May, and are 15.5 percent lower than the 5.75 million-unit rate in June 2007. NAR President Richard F. Gaylord says there is something of a quandary in the current market. "A recent online survey of REALTORS shows nearly a quarter of potential home buyers are waiting on the sidelines," he says. "However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth." Housing Inventory Climbs Total housing inventory at the end of June rose 0.2 percent to 4.49 million existing homes available for sale, which represents an 11.1.-month supply at the current sales pace, up from a 10.8-month supply in May. Lawrence Yun, NAR chief economist, says first-time home buyers are critical to the health of the housing market. "About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up," Yun says. "With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy." The national median existing-home price for all housing types was $215,100 in June, down 6.1 percent from a year ago when the median was $229,000. Yun says there is a downward distortion in the price data. "With short sales and foreclosures accounting for approximately one-third of transactions, it's hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market," he said. Despite the overall sales decline, unpublished snapshot data shows existing-home sales rising significantly from a year ago in Bakersfield, Calif.; Fort Myers, Fla.; and Las Vegas. "Sales are now beginning to pick up in Orlando, Fla., Phoenix, and Oakland, Calif.," Yun sys. "Interestingly, sales fell in Atlanta, Houston, and Kansas City, Mo., despite affordable home prices and solid local employment conditions." Mortgage Rates Rise According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.32 percent in June from 6.04 percent in May; the rate was 6.66 percent in June 2007. Single-family home sales declined 3.2 percent to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8 percent below the 5.01 million-unit pace in June 2007. The median existing single-family home price was $213,800 in June, which is down 6.7 percent from a year ago. Existing condominium and co-op sales rose 1.7 percent to a seasonally adjusted annual rate of 590,000 units in June from 580,000 in May, but are 19.7 percent below the 735,000-unit level a year ago. The median existing condo price4 was $224,200 in June, which is 2.2 percent lower than June 2007. Sales Up in the West West: Regionally, existing-home sales in the West rose 1.0 percent in June to a pace of 1.03 million but are 6.4 percent lower than a year ago. The median price in the West was $288,400, which is 17.2 percent below June 2007. South: In the South, existing-home sales fell 3.1 percent to an annual rate of 1.85 million in June, and are 18.1 percent below June 2007. The median price in the South was $185,300, down 2.4 percent from a year ago. Midwest: Existing-home sales in the Midwest declined 3.4 percent to an annual pace of 1.12 million in June, and are 17.6 percent below a year ago. The median price in the Midwest was $175,300, up 2.8 percent from June 2007. Northeast: In the Northeast, existing-home sales fell 6.6 percent to an annual rate of 850,000 in June, and are 15.8 percent below June 2007. The median price in the Northeast was $256,700, down 12.6 percent from June 2007. Reprinted from REALTOR Magazine [July, 2008] with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2008. All rights reserved.

Dropping Your Price...Too Late

Later, when you drop your price, your house is "old news." You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell.

Even if you do successfully sell at an above market price, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house wont appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your house could go "back on the market."

Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

TUB LIVING

A recent post from Wetzel and Valentine, both Sales Associates with RE/MAX Realty Affiliates in Gardnerville, Nev., featured tips for sellers who've had their home on the market longer than they planned and are trying to "stay sane" while keeping the home ready for showings. They suggest you recommend your clients start "tub living."

So just what is tub living? Here are some excerpts from the post to explain:

When the call comes for a showing, most sellers immediate reaction is to "pick up." Many will pick up every day in anticipation of a showing, and still worry about things being picked up. This anxiety can take its toll. Here's a simple solution: buy a big plastic tub for each room. When you have a showing, remove the clutter by throwing unattractive essentials in the tub, i.e. - toys, magazines, clothes, etc. This tub system will work especially well for your teen's room - put the games, clothes, all the loose "teen gear," in a big tub. Put the tub in the garage and leave it there.

We understand that if you take numerous medications it is convenient to have them on the kitchen table, but it is not good for a buyer to know your medical condition. Put your medicine in a small tub and stow it away in a kitchen cabinet. Smaller tubs work well for bathroom counters, cleaning your bills off the desk, etc. Everything is still organized, but out of sight for a buyer.

Our Advice: Every showing is much more important these days. There is a lot of competition and there aren't ten more buyers behind the one bad or missed showing you have like there was two years ago. Don's fret over getting everything perfect - a less than perfect showing is better than not showing your home. If they are ready to buy and can't see your home they will buy someone else's. Keep you home market ready, but don't worry about it being "sterile." Some homes are so incredibly clean and uncluttered that buyers will ask "Does anybody live here?" Most don't relate to a home like that as they will to one that is clean and tidy, but lived in.

Extended marketing periods are a reality - make the best of it, however "Tub Living" can be tiresome too after awhile. Tubbing will help your home show better - pricing will help it sell better.

Bigger Fall After a Bigger Gain
by Lawrence Yun, Chief Economist, NAR Research

The stream of stories about housing's downturn continue in the media. But I can't stress the reality enough: not all housing markets have suffered to the same extent. We are all well aware of the current weak housing market regions: California, Florida, Arizona, Nevada, and the D.C. region. We should also be aware that these areas were also the places where prices increased the most during the housing boom. Current price declines of 5% to 20% are not as frightening for those who bought a home for the long-term.

Long-term Housing Equity

For example, based on NAR price data, a typical homeowner who bought a property in 2000 would be have accumulated $123,000 in Phoenix, $150,100 in Orlando, $242,800 in Riverside-San Bernardino, and $252,000 in the Washington, D.C. metro region. That does not even include any additional equity that homeowner acquired from paying down mortgage debt from his/her normal amortizing monthly payments. The equity position would be less for those homeowners who took out home equity loans and who took cash-out refinances. (I would personally advise against tapping into housing equity unless it is for investment reasons - like paying for tuition or to open a business).

Data from the Federal Reserve further affirms the long-term housing equity accumulation for homeowners even with recent declines in home prices. Homeowners' net housing equity (home value minus mortgage debt) rose from $6.2 trillion to $9.6 trillion from 2000 to 2007.

No Price Decline in Many Parts of the Country

And as I say, in many parts of the country, there has not been a price decline. NAR data indicate that essentially half of the 150 metro markets studied in the U.S. experienced a price increase throughout the past seven years. Data from the Office of Federal Housing Enterprise Oversight (OFHEO) also show that close to 70 percent of the 287 markets the agency tracks had price increases throughout those same seven years. In rural America, the price declines are even more rare.

Because of different price measurements, the gain could also be different depending on how the price statistics are calculated. Only when the homeowner him or herself sells their home - i.e., has a actual price against which to measure - would they know for sure how much equity was accumulated or lost. The Case-Shiller home price index, by contrast, which looks at a very narrow 20 markets, finds most markets experienced price declines in 2007. Interestingly though, if one uses the Case-Shiller national aggregate price index, the housing equity gains are much higher than under other price data. From 2000 to 2007, a typical U.S. homeowner would have accumulated $103,400 according to Case-Shiller rather than the $75,400 equity gain as is implied by the NAR data.

The Case-Shiller price gain appears outsized and not necessarily what most people would be saying. Perhaps, the methodology of the Case-Shiller price index brings volatile swings that distort underlying trends. So the recent decline in the Case-Shiller price measurement may not be due completely to a decline in home prices but rather to a downward adjustment after illusory high price gains it showed during the market boom. These illusory price gains also fooled Wall Street and global capital providers into believing that the underlying housing collateral was worth more than it actually was. Ask Bear Stearns if it would have made a similar bet if it knew that home values were not as high as indicated by Case-Shiller.

Sure, home prices have fallen measurably in some Florida and California markets - as reflected in both Case-Shiller and NAR data. But broadly speaking the decline in the Case-Shiller price measurement may be just a downward adjustment to compensate for unrealistically strong price gains it recorded during the housing market boom.

Reprinted from REALTOR Magazine [April, 2008] with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2008. All rights reserved.


5 Tips on Wise Use of Tax Refunds and Rebates

RISMEDIA, March 27, 2008-In most years, more than 75% of American taxpayers receive a federal tax refund, the average of which is $2,500. These refunds, added together with rebates due from the federal income stimulus package, mean that this spring some taxpayers might enjoy a significant windfall.

So before you buy that wide-screen TV you have your eye on or plan that long-awaited trip to Bermuda, take five minutes to read these five tips that might help your financial health now and into the future.

1.) Pay off debt: Take the opportunity to either pay off your credit card or at the very least pay off most of it with your refund. Then make a pledge to pay your credit card in full each month. Remember, if you cant pay for it, you cant afford it. The longer you delay, the more you owe. For example if you owe $2,000 on your credit card at an interest rate of 18% and pay only $35.00 a month, it will take you more than 10 years to pay it off!

2.) Save it for a rainy day: Everyone should have a rainy day fund that totals three months of his or her yearly salary. If you dont have one, open a savings account, money market or certificate of deposit and start one.

3.) Start an education fund: The College Board estimates that the cost of tuition alone for private and public schools rose more than 6% from 2007 to 2008. Get the jump on educating your children by opening a 529 with your refund. If you place $2,500 in a 529 Plan at a rate of 7%, and add a $2,500 refund each year, you will have approximately $67,220 in 15 years.

4.) Save for retirement: Consider putting your refund in a Roth IRA for the 2008 tax year. If you open an IRA at a rate of 7% at the age of 35 and add your $2,500 refund each year, you will have $271,713 when you turn 65.

5.) Make an extra mortgage payment: Take your refund and make an extra payment. Just write on your payment slip that you are paying additional principal. If you pay an extra $600 each year on a 30-year, $100,000 mortgage at 6 % interest, you can save $25,000 in interest and cut the term of the mortgage by six years.

Paul Pastore's Top 10 Ways Sellers Can Guarantee Their Home Won't Sell:

1. Be casual, not serious, about selling.
A sage once quipped, "Money is only important when you don't want something enough." Real estate expert R.L. Brown said that if half of the 58,000 sellers in Maricopa County removed their for-sale signs we'd be at normal inventory levels. Actions speak louder than words in this market. Discretionary sellers should wait for a less competitive environment.

2. Price it wrong.
A home properly priced is half sold. No amount of full-color ads, glossy fliers, multiple photos, virtual tours, agent luncheons, Goodyear blimps, pom-pom girls or Saint Joseph statues will compensate for a wrong, timid retail price.

3. Ignore your agent.
Attorneys believe if you represent yourself, you have a fool for a client. Doctors don't self-diagnose. Professionals use professionals. Even though many people believe they're experts on raising kids and real estate, full-time, career pros usually know what's best. Listen to them very carefully.

4. Micromanage the marketing.
If you sold cookware in college, carts in California, or carpeting in Cranston, it does not qualify you to second-guess your agent. If you had a real estate license years ago, save your stories about the "good old days" for your children. You can share your concerns and timelines, but leave the details to the listing pro.

5. Reject staging suggestions.
Someday shag multi-colored, sculptured carpeting will come back. Whitewashed cabinets, Navajo white walls, linoleum flooring, lots of personal photos, and Elvis paintings on black velvet need to go. Now.

6. Let Fido loose.
I recently entered a house and had two frisky, friendly black Labs run up to sniff me. Unfortunately, I had light-gray dress slacks on that day. Both wet stains lasted for hours. Until that day I didn't realize dogs enjoyed chewing the tassels on expensive loafers.

7. Talk to the buyers.
Life gets lonely at times. Why not ask the buyers where they grew up? Or how much they qualify for. Tell them about the vacant rental next door. Maybe they could babysit next weekend! Why not share war stories, horror movies or meatloaf recipes?

8. Sell personal items.
Wow, maybe the buyers want to buy the patio furniture, rotary lawnmower, or life-size statue of Saint Anthony. You have only four more boxes of Girl Scout cookies to sell. Why not ask for a donation for the March of Dimes, the Humane Society, the local PBS station? Remember the saying, "loose lips sink ships."

9. Discount that smell.
My house doesn't smell of pets, baby diapers, curry powder, garlic, fried fish, coconut incense, cigars, manure, mulch, dairy farms or low tide. The buyer must be confusing my castle with a tract home.

10. Dismiss feedback.
What do buyers know anyway? They can't possibly mind my barbed wire fence, heavy-duty rebar, backyard bomb shelter, airport runway views, lights from the power plant, hum from the high-voltage lines, railroad tremors, scorpion skeletons, termite mud tubes and pet snakes. What are they thinking?

Get the word out: It's a good time to buy


By Beth McGuire

RISMEDIA, Feb. 8, 2008Its a good time to buy real estate. Thats the message Realogy, the nations largest real estate franchisor, wants agents to broadcast to buyers across the country.

The company is spreading the word through a national advertising campaign in USA Today, which began this past Wednesday and will run again on Feb. 13th and 20th. This is Realogys second national push in as many years to take a strong stance against the barrage of negative press directed toward the real estate industry over what is reported as the declining condition of the housing market.

The Parsippany, New Jersey-based parent of the Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, ERA and Sothebys International Realty brands, ran a full-page advertisement in the front section of USA Today and expects to reach more than 3.9 million consumers with its message. The ad lets consumers know that recently-cut mortgage rates and a wealth of available properties, make today a great time to purchase a home.

The timing of the ad, titled, Think You Cant Get a Home Loan? Well Think Again. You May Be Pleasantly Surprised., aligns with the recent Federal Reserve interest rate cuts, and lets consumers know that: money is available for those who meet basic requirements; affordability has improved; rates are attractive; and inventory is plentiful.

In an exclusive interview with Alex Perriello, president & CEO of the Realogy Franchise Group, he said the ads aim to educate consumers who might be at the positive tipping point on buying a home.

We want to educate the consumer with relevant facts about todays real estate market, he said. There are a lot of positives, and we feel that reinforcing the positives will help clarify things for consumers who are on the fence what to do in todays market. I travel a lot to real estate offices and I hear from a lot of our agents that buyers are out there, but that they are not sure what to do. We felt that talking openly about the opportunities may help people to see that it is a good time to get into the market, and we believe it is.

Perriello said there are three common misconceptions consumers have about the real estate market right now :people cant get a loan: affordability is out of reach: and consumers should wait for rates to go lower.

I was watching a news show last week after the Federal Reserve made its second rate cut on Tuesday, and the host of the program said, I dont know if it will help because you cant get a mortgage. You hear this over and over again. We want to set the record straight on that. If you meet very basic requirements - you have a job for the past two years, you can make the payments, you plan to live in the property and you have a credit score that suggests you are responsible, you can get a mortgage. These are all reasonable requirements.

He added that affordability today is better than it has been in almost three years, and that interest rates are now at 40-year historic lows, so people shouldnt wait to buy.

In the national scope of the economy, Perriello said that the Federal Reserve is doing a good job of doing what it can to avert a recession, but stopped short on any market predictions for the remainder of 2008.

Its too early to know how it will go, he said. Well see what the impact of the rate cut brings. Another wild card is [President Bushs economic] stimulus package, which has gotten through the House but is now stalled in the Senate.

To combat negative press, Perriello believes that all real estate professionals need to take a very proactive position in the marketplace. We recommend they absolutely follow our lead, he said. We are providing to our franchisees the ad template so they can customize it with their branding and information in their local markets. There are some great talking points in these ads.

How Stormy Weather Affects Home Buyers

By Curtis SeltzerRISMEDIA, Jan. 23, 2008-Its a sleety, slushy, miserable wintry day on my Virginia farm. Its bone-chilly and depressing. Our two Yellow Labs are asleep on their mats in the living room next to the wood stove. Lucy is chasing the same shifty rabbit that always torments her dreams. Sophie pursues average intelligence, which has eluded her since birth.

Its warm in my office. Im dry. Every normal person I know-admittedly a small group-would say: This is the perfect day to stay inside.

I say: This is the day to look at country real estate.

Heres why. Weather applies stress. The more extreme the weather, the more is revealed about the ability of land and buildings to cope with cold, heat, wind and water.

On a very cold day, a buyer can see whether the heating system is adequate and keeps pipes from freezing. On a very hot day, check a houses natural ventilation, window workability and mechanical cooling systems.

Sustained, heavy rains may show up as water in a basement, roof leaks or flooding. Snow and ice may make an entrance road unusable or prohibit access to half a mountainside.

Drought will test water resources, which will weaken or even disappear.

If youve never heard a howling winter wind, you probably ought to before buying that 360-degree view on a 3,000-foot-high bald knob.

The only way to know how property handles environmental stress is to be there in the thick of it.

Bad-weather buyers are not fair-weather friends. Buyers demonstrate their seriousness and reliability when they visit in dreadful conditions. It shows a seller that you are not a tire-kicker.

Motivation. A buyer indicates that hes motivated to work with a seller when he appears on a bad day. Sellers are looking for that signal.

Bonding. Nothing builds a congenial, problem-solving relationship between buyer and seller more than slopping around a farm in a downpour. A muddy seller will inevitably become invested with a muddy buyer.

Sharing misery, getting a vehicle unstuck-those are foundation stones on which a purchase is built.

Tilt the playing field a little bit. All sellers, including me, want buyers to visit when our properties look their best. We hope for pleasant days.

Good weather reinforces whatever staging a seller has done to spruce up his property. Clean windows sparkle in sunlight; new paint shines.

In contrast, bad weather forces a property to display its virtues in hostile conditions. When weather forces a seller to explain, rationalize or apologize for what hes selling, the buyers negotiating position improves.

Really yucky is an opportune time for a property buyer to begin negotiations.

Atypical conditions bring out atypical creatures. On a Tuesday in early September, Sophie started our two-dog bark-a-thon at about 4:30 a.m. But that morning I heard an urgency indicating something more was afoot than the familiar hall night light, which Sophie thinks is a burglar who will return to darkness if she barks at it.

I went out on the porch with a flashlight. Nothing stirred in the pond. But the big maple about 20 feet away didnt look quite right. I ran the beam feet up the stem to the point where its four major limbs formed a cup.

A pair of eyes shone back at me. Well, I thought, theyre barking at Kitty again, which they do on principle. I looked harder. Two eyes became four, then six, then eight.

A Momma bear and her three cubs had climbed a chain-link fence to get into a yard that offered no food and was rife with repugnant dog doings. Why?

Two months of drought and the absence of blackberries had forced her and the undernourished cubs down off the Devils Backbone to find water and nourishment.

Drought also brought down deer and rattlesnakes.

Looking at real estate when things are messy is no fun. But buyers are likely to get better deals for their efforts.

And remember: If a property looks just okay in the middle of a mess, itll look great when the suns out and a rainbow glistens.

Curtis Seltzer, land consultant, is author of How To Be a DIRT-SMART Buyer of Country Property at www.curtis-seltzer.com.

Not Everyone Cheering Federal Bailout For Subprime Borrowers

by Blanche Evans

The Bush administration announced a plan that freezes interest rates for some credit-challenged homeowners who purchased their homes with subprime loans. President Bush called for Federal Housing Administration reforms to lower borrowing requirements for FHA conforming loans, and a five-year freeze on some subprime mortgage loans. Eligible borrowers are those holding adjustable rate mortgages that are about to reset to higher rates and who are current in their payments.

The move will potentially minimize losses to banks, securities investors, and the economy, by keeping more homeowners out of defaults and bankruptcies.

But not everyone is cheering. A recent poll by the National Taxpayers Union found that almost half of U.S. adults think a federal bailout is the wrong way to go. Tax dollars shouldn't be used because many homebuyers who are now in trouble deliberately bought more house than they could afford. Further, many blame Wall Street, which sold mortgage-backed securities to investors while underplaying the risks of subprime loans.

Standard and Poor's argues that a freeze will "have a negative impact on the ratings of certain U.S. first-lien subprime residential mortgage-backed securities." The risk is that smaller payments won't make enough money available to pay investors. If you can't get investors to buy the securities from banks, banks can't get resupplied with money to loan out to fresh borrowers. Subprime mortgage lending, about 10 percent of the market, comes to a halt.

Treasury Secretary Henry Paulson insists the interest freeze is only available to homeowners occupying their homes, not for real estate speculators. But any freeze on mortgage interest rates amounts to a subsidy that does nothing for the homebuyers who did all the right things, including buying within their means.

While the debate goes on, other help is on the way. This week, mortgage interest rates fell to two-year lows. Some borrowers may be able to refinance their loans into safer fixed-rate without waiting for a federal handout.

That begs the question -- how many homeowners can be helped by simply allowing the markets to work?



Five Ways to Avoid Scams, Shams and Spam on the Net

RISMEDIA, Nov. 29, 2007-Dont put hackers on your gift list. Thats the advice from developers at Check Point Software Technologies. Check Point is arming consumers to wage battle against Internet grinches this holiday season.

For many consumers this time of the year can offer up a golden opportunity for some great online deals. However, its important for consumers to also be aware of the plethora of Internet shopping scams, hacker attacks, fraudulent e-mails, and phishing schemes that often run rampant as well.

Internet holiday attacks get more advanced each year, but many people are still relying on outdated or nonexistent security solutions, which put their computers and identities at risk, said Laura Yecies, vice president and general manager of Check Points ZoneAlarm consumer division. To stay safe online this holiday season consumers need to educate themselves on the latest types of threats, and make sure they are running up-to-date and comprehensive security software on their PCs.

Nearly nine in ten consumers regularly or occasionally research products on the Internet before buying in a store, as cited by the National Retail Federation. Yet according to a Check Point-commissioned survey by Harris Interactive, more than half of adults who use the Internet had neglected to install a software firewall and fewer than one quarter of adults had installed a security software suite to protect against spyware and viruses. Additionally, the survey results concluded that when making purchases online, 97% of online shoppers use their credit card to complete transactions; however, 44% do not consistently verify security symbols when making purchases.

Check Points security experts offer the following tips to help consumers stay safe while shopping online:

1. Fight holiday fraudsters, hackers and identity thieves by securing your PC. A good firewall, antivirus, anti-spyware, spam and browser protection are all critical. But, keeping up with security updates is even more important.

2. Beware of online phishing scams. Do not give out personal or financial information in response to unsolicited e-mail, nor click links in any e-mail when conducting financial transactions. If you think youve been phished, immediately visit www.consumer.gov/idtheft.

3. Beware that the mere act of gift browsing in online music, gaming and other sites can deliver your personal information into the hands of marketers and scammers. Protect your privacy and your identity with this seasons latest computer protection: browser security.

4. Make holiday donations directly to charities and not from links received in e-mails. Check your bank statements regularly and investigate any suspicious charges.

5. Only buy gifts from online retailers that disclose full, verifiable contact information. In addition, look for the little yellow lock at the bottom right corner of the browser window-that indicates a secure site.

For more information, visit www.zonealarm.com.

How to Track Down Holiday Bargains

RISMEDIA, Nov. 21, 2007-(MCT)-As the infamous Black Friday approaches, bad economic news could bring good buys for holiday shoppers this year.

High gasoline and food prices have retailers so worried you wont spend generously this holiday season that theyre rolling out some of their deals well before the traditional day-after-Thanksgiving kickoff. And while those Friday deals typically offer some of the best discounts of the year, there are ways you can find good buys throughout the shopping season.

If you are willing to do a little shopping homework, you should be able to snare some of the best deals and perhaps avoid long lines or the unending search for a parking spot.

Consumers have to cast a wide net, said James E. Fisher, a marketing professor at St. Louis University who has studied holiday shopping trends. They have to read the newspaper advertisements, look at direct mail, use the Internet. There are so many ways to find deals now.

Start looking for bargains early because some stores have scaled back their merchandise this year in anticipation of less-than-stellar sales. But if youre a gambler willing to wait until the days right before Christmas, you could find even better buys. Just remember that the most sought-after merchandise will be long gone.

Many of the door-buster deals made available Friday morning at stores are offered online on Thanksgiving Day. Even so, many merchants already have started lowering prices in anticipation of a lackluster spending season. Wal-Mart Stores Inc., is expected to reveal some of its day-after-Thanksgiving deals in an online circular tomorrow. On Thanksgiving Day, it will reveal more.

There also are plenty of Web sites that track Black Friday deals. Some of them include: bfads.net and blackfriday.gottadeal.com. (The day after Thanksgiving is often referred to as Black Friday because it was when merchants expected to see their accounting ledgers go from red to black for the year, given the sales they posted that day.)

Although some are watching to see if the day after Thanksgiving will be as lucrative for retailers as it has been in the past, it is still counted as one of the best days to find a bargain. In particular, stores are known to offer good prices on electronics during the earliest hours.

But most of the steeply discounted digital televisions are limited to just a few to each store. If youre not in line by 8 p.m. or so Thanksgiving evening and willing to spend the night in a Circuit City parking lot, youre not likely to score those deals. But there typically are plenty of good buys on things such as DVDs and other merchandise that are offered for just a few hours Friday morning or throughout the weekend.

Dont take the merchants word about the deals, though. Use online sites to comparison shop throughout the season. If you know just what you want, compare prices at different retailers by using sites such as pricegrabber.com, shopping.com, shopping.yahoo.com and shopzilla.com.

Alan Hoffman, a sales manager from Owings Mills, said he scours newspaper advertisements and compares prices at different stores before making a purchase. He also uses coupons.

I like to do like a vulture, Hoffman said.

Some stores also are offering free shipping to their stores for customers who shop for items online. Those moves are designed to help you get in and out of a store quickly, rewarding you for shopping at home and knowing what you want.

If you have some time Thanksgiving Day, consider shopping online when some stores offer cheap prices on electronics, toys and clothing. But look early and buy when you find it the deals are limited online just as they are in the stores. Most stores will offer sales weekly to keep luring customers in for deals.

Hoping to snare an item that goes on sale tomorrow? You might arrive before a store closes the day before a sale begins and try buying the item you want. Many stores enter those deals into the computer system the night before. The better price often is offered to the consumer who asks for it.

Ellen Kraemer, an Owings Mills stay-at-home mom who sells goods on eBay on the side, said she buys just about everything at bargain prices. Shell only pay full price on popular items she knows will go quickly.

Kraemer has many tactics: She visits discount stores such as Marshalls, Gabriel Brothers and C-Mart several times a week. Shes on the mailing and e-mail lists of at least a dozen retailers for special discount coupons. She only shops department stores with a coupon or when theres a sale.

Im constantly looking for the deals, she said.

The good news for consumers is that merchants already know they need you this year.

Retail forecasts call for the slowest holiday shopping season since 2002 as economic woes including a weak housing market and higher energy costs are causing consumers to be more conservative with their spending.

The National Retail Federation expects sales to rise 4% this holiday season, which includes November and December. But sales rose 4.6% to $456 billion during last years holiday season. With stores depending on holiday shopping for up to 40% of their annual sales, retailers are working more aggressively than ever to woo shoppers and to reach them early.

Wal-Mart set the tone weeks ago, slashing prices as early as Oct. 1 on toys and other merchandise. It also launched its door-buster deals late last month instead of waiting until the day after Thanksgiving as it did in past years. Toys R Us already is offering similar discounts. And Kohls has cut prices, too.

The deals, said Jay McIntosh, director of retail and consumer products at Ernst & Young, are definitely already out there.

Copyright 2007, The Baltimore Sun



Borrowers Predicting Mortgage Rates May be in for Unpleasant Surprises

RISMEDIA, Nov. 9, 2007-Each time the Federal Reserve (the Fed) cuts interest rates, borrowers converge upon their mortgage representatives expecting lower interest rates. Unfortunately, they find that mortgage rates often rise after the Fed cuts rates, and those who have held off on refinancing or locking rates thinking a Fed rate cut will reduce mortgage rates, are actually faced with higher rates than before the Feds rate reduction.

"Consumers who are looking to get the best mortgage rates need to understand that the Federal Reserve can only control the discount rate and the Fed funds rate, which are both very different from mortgage rates," explains Mortgage Market Guide CEO Barry Habib, a mortgage expert who has appeared on the CNBC, NBC, CNN and FOX television networks. "Borrowers are constantly mistaken in thinking that rate cuts by the Fed will result in lower mortgage interest rates. That simply isnt the case."

Another common misconception is that mortgage rates are directly related to 30-year Treasury bonds or 10-year Treasury notes. "Both 30-year Treasury bonds and 10-year Treasury notes are government securities and backed by the full faith and credit of the U.S. government," adds Habib. "They have no direct effect on mortgage rates."

Mortgage rates are based solely on mortgage-backed bonds known as mortgage backed securities (MBS). "The trading performance of mortgage backed securities, which are issued by Fannie Mae and Freddie Mac, determine the direction of mortgage rates," states Habib. "Finding the catalyst that causes mortgage bonds to move will give consumers the keys to finding out what makes mortgage rates rise and fall."

Inflation is a key factor in pricing long-term bonds, because inflation erodes future returns. Since bonds pay out a set amount over a long period of time, that amount will be less valuable in future markets, especially if inflation is high. Because bond investors are very aware of this, they will require a higher rate of return or interest on their investment to compensate them if they feel that inflation will be increasing.

"To understand the relationship between bond prices and mortgage rates, first put yourself in the position of a mortgage bondholder, like a mortgage lender," Habib explains. "If it looks like inflation is going to cut away at the value of your bonds, youll need to charge more interest on the mortgage loans you generate in order to compensate for that lowered value on the bonds. So if you anticipate increases in inflation, perhaps caused by the Federal Reserve lowering rates, youll probably be raising mortgage rates in response. Therefore, because rate hikes by the Fed are designed to slow inflation, that is actually very good news for bondholders or mortgage lenders. A Fed rate hike can actually help reduce mortgage rates."

In short, the Feds rate cuts stimulate the economy by making borrowing cheaper, which in turn gives vendors the ability to increase prices. That leads to inflation, which erodes the value of long term bonds and more specifically, of mortgage bonds. "When MBS values are in jeopardy, mortgage rates tend to rise," Habib reiterates.

Habib advises that while these key factors are better indicators of mortgage rates, borrowers and homeowners should remember that there is no surefire way to predict the market.

"Keep an eye on the MBS market, but also bear in mind that the best rates may be behind us," he urges. "Mortgage rates are still low, and we could see some quick dips. Borrowers should always consult a qualified Mortgage Planner who can advise on any market changes. If youre looking to refinance, be prepared to act, so you can make the most of any lower rates while they last."

For more information, visit http://www.MortgageMarketGuide.com or call 800 963-1900

10 Tips for Getting Your Home Off the Market this Fall

"Pre-listing inspections (conducted on behalf of the seller) and general maintenance inspections are valuable investments for homeowners eager to sell their home," said Frank Lesh, 2007 ASHI president. "Buyers today have the option to be choosy. A pre-listing or general maintenance inspection will help homeowners catch repairs before they become bargaining chips."

In addition to the transaction going more smoothly, ASHI says that a pre-listing inspection ensures that sellers can enter negotiations with confidence regarding the quality of their home. That confidence often equates to more dollars in the sellers pocket.

Maintenance Checklist

According to the National Association of Realtors, one of 16 American households will buy a home this year. To make sure your home stands out from the crowd, consider using ASHIs maintenance checklist, a helpful list of items around the house that should be evaluated and repaired year-round.

"People need to think of their home as a machine," added Lesh. "If one thing is off balance, everything else is compromised. Our goal is to keep our customers homes working like well-oiled machines."

Below are the top ten items to check-off your maintenance list this fall:

1. Check the chimney for deteriorated chimney caps or loose and missing mortar.
2. Check vents, louvers (a frame with horizontal and vertical slats on a building that is angled to admit light and air, but keep out rain and sunshine) and chimneys for birds nests, squirrels and insects
3. Check flashing around roof stacks, vents, skylights and chimneys which can be sources of leakage
4. Check the roof for damaged, loose or missing shingles
5. Check for leaking, misaligned or damaged gutters, downspouts, gutter guards and strainers
6. Evaluate your landscape and cut back tree limbs that may be growing too close to the roof. Also consider cutting back and trimming shrubs away from exterior walls
7. Check caulking for decay around doors, windows, corner boards, and joints. Recaulk as needed
8. Check glazing putty around windows as well as weather stripping
9. Check your faucets, hose bibs and valves for leakage
10. Keep your garage doors closed to conserve energy and insulate exposed water lines in cold climates

While some of the items on the list can be easily inspected by a homeowner, ASHI encourages homeowners to considering hiring an ASHI Certified Inspector to conduct a thorough pre-listing or general maintenance home inspection on their behalf, particularly on areas of the home that homeowners may not be familiar with or feel safe inspecting themselves.

For more information, visit www.ASHI.org.