House Pass tax break worth up to $7,500 for first-time home buyers who purchase between April 9 of this year and July 1, 2009.

Are buyers really liars? Not usually -- the challenge is you just haven't asked them the right questions.

One of the biggest obstacles in converting leads into signed business is the agent's inability to stay in question mode rather than tell mode. In other words, when agents pressure their clients to agree with them, they have fallen into the trap of having to be right. If you find yourself arguing with a client or trying to persuade him or her to agree with your position, stop immediately. To avoid this mess entirely, ask a question. Here are some examples:

1. What was your favorite house when you were a child and what did you love most about it?

Most agents ask buyers about bedroom-bath count, location and architectural style. If you really want to know what will motivate your buyer to purchase, forget what they tell you initially. Instead, ask about their favorite house from their childhood. This question works at several levels. First, when your client recalls something pleasant from the past, that pleasurable feeling is associated with you. Second, many people are unaware of the emotional triggers that cause them to purchase.

When asked about what they want as a buyer, they may say, "We want a one-story contemporary with great views." Instead, they end up buying a two-story brick traditional that reminds them of their grandmother's house. By asking about their childhood, you will learn what their early anchors are. Pay special attention because these childhood influences can be powerful triggers for purchasing.

2. Do you have any pets? If so, what are their names?

For many buyers, their pets are even more important than their family members are. If you want to create strong connections with your clients that will generate referrals, find out about what matters to them. Don't limit your inquiry to just their animals. Find out what they do for fun, which rooms they use most when they're at home, as well as their likes and dislikes. The more you learn about them through the questions you ask, the stronger your connection will be.

3. Would you replace that feature or would you use something different?

This is the generic response to the buyer's comment, "I hate … the wallpaper, the paint, the carpets, the flooring, or any other feature of the property." An objection is a buying sign. When you hear an objection like this one, you can close more effectively by asking a question that "moves the buyer into the property." In other words, ask a question that assumes that the buyer already owns the property and is going to handle the objection.

So when a buyer says, "I hate this wallpaper," the response is, "Would you replace it or would you paint?" When the buyer says, "I hate these Formica countertops," you would respond by saying, "Would you replace the countertops with granite, tile, Silestone, Corian or perhaps the new Quartz countertops?" If the buyer answers the question with what he or she would select, there's a high probability that you may be writing an offer soon.

4. Are you going to write an offer on this house? If not, why not?

This is a fabulous closing question provided that you have set it up correctly. Before you take buyers out to look at property, it's imperative that you take the time to interview them about what matters to them, the type of house they would like to purchase, how they spend their time in their home, what they like and dislike in a floor plan, etc. To use the question above correctly, you must obtain the buyer's permission to ask it after each showing. The easy way to do this is at the end of your buyer interview. You can introduce this concept by saying, "In order for me to do the best possible job in locating the right house for you, I'm going to ask you after each showing, whether you are going to write an offer on the house that we just saw. If not, please tell me what you like and dislike about the property. Is that a strategy that works for you?" Not only does this process help you to close the buyer, it also helps to clarify where you may need to modify your search as well.

5. How much longer do you want to continue paying your landlord's mortgage?

This is a great question for first-time buyers. The Department of Commerce reports that between 1995 and 2004, the average renter accumulated a little over $4,000 in net worth. The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month. In other words, each month that the average first-time buyer continues to rent, it costs them $1,500 in lost wealth accumulation. Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction. Pointing out the cost of waiting to purchase is one of the classic ways to persuade reluctant buyers to take action.

Need more tips on how to close more and defend less? Don't miss Part 3.

Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate's Discounters" and "Who's the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at www.LuxuryClues.com.

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RISMEDIA, March 25, 2008-Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.

Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”

The national median existing-home price for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.

Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”

Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.

Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.

Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.

Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.

Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.

In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.

Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.

For more information, visit www.Realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, March 19, 2008-Considering all of the negative press the housing market received in late 2007, it’s more important than ever for buyers to separate fact from fiction when deciding on a time to buy a home. This report is intended to help home buyers assess the facts of the real estate market objectively.

About Inventory

FACT: The housing market is undergoing a natural cyclical correction. It’s impossible to ignore the ongoing news surrounding the downturn of the housing cycle. The recent “housing boom,” which lasted from 2001 to 2005, was caused by low interest rates and a rapid increase in property valuations, resulting in high numbers of renters opting to buy. Three factors caused this decade’s housing boom to spiral upward:

1) A run-up in home-price valuations that spurred a high sense of urgency in home buying and selling.
2) Poor lending practices, which caused many home buyers to secure loans that they ultimately couldn’t afford over the long term.
3) Speculative purchases of homes also increased, with buyers investing in real estate with the hope of a quick return on investment.

Like the dot-com bust, the housing market has begun to correct itself after a number of years of unwise purchasing, but unlike what the media would have us believe, a correction in the housing market doesn’t equate to a crash. Unfortunately, the ongoing negative news about the troubled areas in the U.S. has caused a ripple effect, with home buyers and sellers on a national level exercising caution before making a decision. This has caused an overall slowdown in the marketplace.

The National Association of Realtors’ chief economist, Lawrence Yun, projects that nationally, the “median existing-home price will drop about 1.7% this year. This is a small, minor adjustment after a strong run-up in housing prices.”

True, the number of homes sold in 2007 will have dropped from the year before, but 2007 is still among the highest years on record, with numbers of sales for both 2007 and 2008 projected to be even higher than the levels seen in 2002.

However, with homes taking longer to sell, the number of homes on the market has grown. In markets like California and Arizona where homes are taking much longer to sell than the 11-month national average, this has caused a glut in the marketplace.

In the Pacific Northwest, where the inventory of homes on the market ranges from seven to 10.5 months as of November 2007, this equates to good news for buyers who have more homes at more price ranges from which to choose.

About Mortgages

FACT: Low mortgage rates give buyers more house for their dollar.

With the 30-year fixed rate hovering between 6-7%-a 45-year low-qualified buyers continue to have access to incredibly low interest rates. This means that although housing prices have risen, monthly mortgage payments remain reasonable for those who look at real estate as a long-term investment. For example, today if a buyer secured a 6.5% interest rate on a 30-year fixed loan for a $300,000 home (with no money down), the monthly mortgage payment would be $1,896.20. In 1991, the same monthly mortgage payment would have bought a house worth only $230,492 when mortgage rates were 9.25%. In 1982, when the 30-year fixed rate was 14.6%, the same payment would have bought a house worth only $151,657.

FACT: Heavy speculation and overbuilding result in an increase in foreclosures when prices go down.

The media has been focusing on the hardest-hit areas of the country that have seen a dramatic downturn in the market: California, Nevada, Florida and Arizona. Over the past five years, these markets have experienced an abundance of new housing, a rise in investment properties and a rise in prices that was high above the national average.

Now that home prices are starting to drop and stabilize, the areas that went through a building frenzy and experienced the largest price increases are suffering a heavy devaluation in home prices, which in turn has caused homeowners to foreclose on loans.

Those suffering the most in California, Nevada and Florida are far above the national average of foreclosure with one out of every 325, 152 and 282 homes in foreclosure, respectively. Washington, Oregon and Idaho are well below the national average of one in every 617 homes in foreclosures because fewer home buyers in the Pacific Northwest opted for subprime mortgages and because home values have continued to steadily appreciate.

Washington has seen one in 1,072 homes in foreclosure, and Oregon and Idaho have one in 1,275 and 893, respectively.

FACT: Subprime borrowers get a reality check.

Then there are the problems that are affecting subprime borrowers: those who are considered at a higher mortgage risk due to a past history of bankruptcy, delinquent loan payments and low credit scores. During the last number of years, some home buyers in the U.S. qualified only for these riskier subprime loans to fund the American dream.

But, again, unlike the media’s portrayal, the reality is that subprime loans comprise only 9% of total loans nationwide and of those 9%, less than 11% of those subprime ARM and fixed borrowers have defaulted on their loans. The Pacific Northwest stands apart as its own micro-market, with more home buyers qualifying for prime loans. Homeowners in the Northwest have been able to successfully sell their homes for a profit or refinance to pay off their subprime loans.

Real Estate Cycles and Economics

FACT: Over the long-term, real estate has always appreciated in value.

The continuing appreciation of homes in the Northwest is not an anomaly. Real estate has always been one of the most solid investments in the U.S, because, after all, people always need a place to live. Real estate has less volatility than the stock market and over the historical long-term it remains a guaranteed return-on-investment. Take this example from NAR’s Yun: If a buyer were to put down $10,000 for a down payment on a “typically priced home in the United States at a typical appreciation rate of 5%…(he/she) would see a return of $110,300 after 10 years. The same $10,000 invested in the stock market appreciating 10% annually will result in $23,600.”

As history has shown, for those who choose to keep their home for six to 10 years (and not flip for a quick profit) real estate investments do pay off, and pay off well. In fact, what we’re seeing now is a repeat of a housing cycle we’ve seen before. In the early 1980s and 1990s, some areas of the country experienced the worst downturn they had seen in the last 25 years, which were caused by localized economic weaknesses and loss of jobs while on a nationwide average, others, including the Pacific Northwest were barely affected at all. But even those areas that were hit the hardest in the past experienced a historic uptick in prices, and then a continuing long-term appreciation.

Excerpted from a January 2008 Report from John L. Scott Real Estate

One of the most successful methods of making a good return on investment, for many years, has been by investing in real estate. People not only buy homes to live in, but also as an moneymaking proposition. An extension of this idea in that has proven successful for some investors has been to "flip" property, which means buying a residential property with the intention of reselling it whether they live in it while making improvements to it or not -- but often not. All types of financial investments require a well thought out strategy or plan, if you are to benefit. Keeping in mind that an investment may be made for profit or to find your right place to live, behaving as an investor can be the best approach either way. In the case of real estate, particularly when you want a place to live, this may be the most important element of the whole scenario. In order to be effective at all, planning must be completely done and double checked before you even begin the process of buying.

1. Give Yourself Plenty of Time
Begin the search well in advance of needing to make your move. Give yourself several months before you would like to move to begin looking. Sign up with multiple real estate search services. Check out different realty firms to find out what kinds of properties they have listed and what is out there. Sticking with the first company you happen across could limit your options, putting you behind from the start. Buying a home is a serious decision, and to rush through and do it hurriedly would be irresponsible.

2. Get Yourself Prequalified
The next thing you should do before starting the search is to get a lender to prequalify you up to a certain maximum. Make sure the lender is located in the community and reputable. This will help you in coming up with a maximum price. A lender can assist you in setting a reasonable amount to spend with your household income and existing obligations. Also, knowing that you have a lender that is ready to lend you a certain amount can give you an edge. Having that information available as you look is definitely in your favor.

3. Decide What You Want
You must be clear at the outset in knowing what it is that you are looking for. People who don't take this vital step find themselves accepting aly old choices made by others around them. Set your standards as high as you can. You shouldn't have a bare minimum mentality in the serious business of buying your home. You should aim for the high side, within your budget of course. There is no real loss in bringing it down a tad to accommodate changes, or to be more realistic. The realities of the market situation, including availability of your desired features, might dictate that you need to come down a little to find the intersection of what you want and what is really possible.  If you start too low, though, you will never know what you can achieve.

4. Get Your Own Agent Who Will Represent You Exclusively
Locate Realtors who are buyer agents. Don't go to the agent selling the home. That agent has an obligation to work in the seller's best interests. Choosing someone you can work with is something you have to do with careful attention and you have to do this carefully. It may or may not be a good choice to go to a friend in real estate, even if you are pretty certain the person has a good professional reputation outside of the relationship.

There, that's not as hard as it first seems. Don't rush, find out what you can afford, set a high and achievable target, and get an agent who will represent you as the buyer. These simple steps will put you in the right place at the right price, with the least possible hassle.

This content was furnished by Automated Homefinder, the Boulder real estate specialists in Colorado.